Daily Data 📈
What's the difference between personal debt and business debt? Stigma, mostly. In a recent article published by Fast Company, podcaster Lane Kawaoka shares how lending is often essential to generate the cash flow needed to sustain businesses throughout their existence.
Business loans and merchant cash advances are incredibly common, though differ in their approval rate, interest rates, and funding amount.
Last year, 43% of small businesses applied for a loan last year, and currently 70% of small businesses have outstanding debt.
If your ultimate fear is being turned down, not to worry.
In the past year, only 14% received a portion of their requested funds, and 9% received no capital at all. Don't forget to listen to Chris' podcast for some actionable tips on procuring financing.
Ultimately, businesses carry a credit score just like individuals and—regardless of what venture of investment you're making—building good credit is essential.
Statistics from Fundera, by NerdWallet
Make the Most of Your Leverage
Savvy investors utilize leverage to minimize the amount of personal equity put into investments while maximizing their efforts to scale their portfolios.
Leverage is used in real estate for two primary reasons. The most obvious is a lack of capital. We’ll put down a downpayment and borrow the rest of the cost of the property. Leverage isn’t always sought for lack of funds, though.
The Take
The financial setbacks caused by the pandemic have left many Americans worried about retirement. While well over half of Americans across every age group have some retirement savings, fewer than half feel like they are on track. Be the exception.
Click the picture above to download the Take of the week!
The Word
Check out our recommended reading for the week:
- Nine Common Cash Flow Mistakes Every New Entrepreneur Should Avoid (Forbes)
- You've gotten your business off the ground, and heck, it's doing well! Now what? It's so easy to make mistakes with money at this exact juncture.
- Why should you care? This advice comes straight from other entrepreneurs. Listen up.
- Should you pay off your mortgage early? (CNET)
- Common wisdom holds that paying down debt is the goal. But with mortgages, nothing is that straightforward.
- Why should you care? Always endeavor to know the "hidden pitfalls" before you make big money moves.
- Property taxes keep going up: What retirees should do—and not do—if they can't pay them (MarketWatch)
- These are simple (but important) do's or don't's to keep in mind, some of which you might not have heard before.
- Why should you care? We talk often about prioritizing when and how you spend your money, but it's never as important as when you're retired.