Due to the rapid changes in technology, many things we do nowadays are quicker and more convenient than they were even a decade or two ago. Some people still prefer more traditional methods for certain tasks because they’re proven and safe, while others prefer newer methods because they’re fast and efficient.

One example of this is how small startups apply for business loans. In the past, the only way you could ask for a loan from a reputable financial institution was by visiting in person.

Nowadays, there are lots of online applications for loans, all ready for your choosing. Here are some reasons why you, as a small startup, should apply for business loans online:

1.  Speed and convenience

In today’s age, almost everyone wants to get everything done quickly. By applying online, you have no lines, traffic, or sit-down interviews. A stable internet connection and a working computer or smartphone are all you need to apply for an online loan.

As a small startup, you’ll need every bit of your time to focus on your work. If you apply in person, you can get stuck in traffic or your schedule might change at the last minute. These are setbacks you can’t afford when running a business. Startup owners or employees especially can’t afford to drive across the city during traditional banking/work hours, only to find out that they need to go back home and get the requirements.

With online applications, you can easily see the requirements and provide them instantly. With an online application, after filling all the online forms, you only have a brief wait for approval, and presto! Your loan is already in your bank account, without having to reorganize your schedule or make any trips.

2. Ease of completion

So you’re totally new to the concept of applying for loans online? No problem. Learning the process is easy and only takes a few minutes. Online applications aren’t that “robotic,” as some may think. Usually, an online loan officer or assistant will gladly walk you through the process.

If there are some terms that you don’t understand, simply ask your loan officer, and they’ll offer an explanation. Most loan applications sites are also very user-friendly and can cater to a broader audience. When you do get approved, your money will be deposited in your bank account without any additional steps.

Already have debt, want to go for a credit card consolidation, or have other plans? After you apply online, you can use your loan to pay for that and manage all of your business debts in a single source. Since you made your applications online, you can then pay back your  business loans online virtually anywhere, anytime.

3. Number of available lenders

Imagine having to drive around town, looking for a suitable lending company or a bank. When you arrive at a chosen bank, you find out that rates are terrible. You go back to your car, and the search continues. After searching for a while, you get tired and settle on the last place you visit.

With online applications, you can easily shop around for the best rates by just searching for the right words. Avoid the hassle of searching for the perfect lender, go online, and see every available option that works for you. Do your research, and check a company’s customer reviews and feedback to avoid dangerously high rates or poor service. Some lenders even operate entirely online, without physical space, and therefore offer unique opportunities when searching online.

4. Safe and secure process

You can usually spot a fraudulent website from miles away. Always remember that the best and most legitimate lenders will have their credentials readily available.

If you have trouble differentiating the legit sites from the scams, here are some tips to help you spot the differences:

• A legitimate company doesn’t ask for an advance for your loan to be approved.
• Scams often make use of high pressure tactics that rush you into signing terms you barely understand
• Check with the Better Business Bureau

It’s always a good sign if an online lending company is FDIC insured in the U.S. The FDIC (Federal Deposit Insurance Corporation) is an agency that protects consumers if an insured deposit is lost due to a bank or savings association fails. The FDIC’s standard amount for insurance coverage is $250,000 per depositor.

Getting a loan should fit into your needs as a startup

In a world where everything is fast-paced and continuously changing, it only fits that we adapt. A faster and more efficient system is why a lot of startups prefer applying for business loans online. It’s easy, convenient, fast, and most of all, safe.

As a startup, you don’t have enough time to waste by driving around town and looking for the best bank with the best rates. All you have to do is go online and choose from several options that work well with your current situation and preferences.

The post 4 reasons why startups should apply for business loans online appeared first on Trade Ready.

As any experienced international trade professional can tell you, doing business in global markets isn’t without its trade finance challenges.

Breaking into a new market often involves a significant investment upfront, and keeping track of currency fluctuations can be an ongoing concern once you do. On top of that, it’s not always easy to secure payment, and chasing down money owed to you or your business can be a real hassle.

With these trade finance challenges in mind, here’s some advice from case studies from the FITTskills International Trade Finance course that will help smooth the path towards success.

1. How do I choose the right bank or financial institution to help finance my international business?

The thought of taking out a sizable loan or financing plan can cause trepidation. Fortunately, taking the right steps before money ever changes hands to select a financial partner you trust and will offer you what you need should alleviate many of your concerns.

Like many aspects of exporting and importing, thorough research of several options is necessary. It’s OK to have a preferred option in mind, but make sure you’re not missing opportunities elsewhere that could benefit your business in the long run. Thoroughly investigate and compare each option before you even make an initial appointment, and understand the costs, benefits, and disadvantages of each option.

Having trouble deciding which options to focus on? Referrals are one excellent option.

If a bank or financial institution has worked well for similar companies you know, it could be a strong option to start your search.

Government-supported options are also excellent places to look for financing. In Canada, organizations such as Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) are well equipped to help you with trade finance challenges, while American companies can look at the U.S. Export-Import Bank and the U.S. Small Business Administration.

2. How can I minimize risk related to fluctuations in foreign currency?

While a change in the exchange rate could potentially reduce costs, it’s the opposite situation where a change increases costs that can keep finance professionals up at night.

One solution could be to write a fixed rate of exchange directly into a contract, along with the price, date and quantity of an order. This type of contract is known as a forward foreign exchange contract. While this forces you to forego any potential benefits of a changing exchange rate, the stability reduces risk and makes it easier to budget within a larger financial plan.

Another option is to negotiate to have the prices set in your domestic currency, meaning any risk then falls on your buyer or supplier who uses a different currency, rather than your business. Different businesses may value using their own currency, so make sure you know how much such a concession would be worth to your business, and what you may be willing to give in order to assure your needs are met in your contract.

Potential exchange rate fluctuations could also be used as a factor when negotiating the overall price. A buyer may be able to use intense fluctuations as part of a strategy to negotiate a lower price, while a seller may use a stable rate to negotiate a higher price.

In some situations, a company may want to purchase an option from a bank or other financial institution, a specific agreement to allow you or your company buy or sell a certain currency at a fixed exchange rate by a specific date. Another similar option would be to sign a futures contract, fixing a rate to exchange one currency for another with a specific bank or institution for a certain date.

3. How can I make sure I receive payments, and don’t have to chase debtors around the world?

It’s bad enough trying to chase someone down who owes you something back in an everyday context, like books they borrowed or their share of a restaurant tab.

Just think of how those issues would become exponentially more complicated when you’re chasing down another person or business in another country, who owes significantly more money.

A debt collection agency can be used if needed, but results cannot be guaranteed and a portion of the reclaimed amount will then be owed to the agency, reducing the amount your business will receive in total.

Receiving some of the money owed to you is certainly better than none, but whenever possible take steps up front to ensure full payment will be made.

While not always an option, the most fail-proof way to ensure you get paid is to guarantee payment from a third party through a confirmed letter of credit or export credit insurance. This way, payment is guaranteed to the seller, even if the buyer is unable to make the full payment, as is the funds will be backed by the bank or agency.

A company can also request full prepayment before delivery when there is a perceived risk of non-payment. It is also possible to negotiate to receive money in installments based on specific actions if concerns about the buyer’s immediate cash flow are part of the discussion.

The post Overcome 3 of the biggest trade finance challenges with these tips appeared first on Trade Ready.