During these uncertain times, stress management for business owners has become more crucial than ever. Take advantage of these top tips in order to manage your stress.

Stress Statistics You Can’t Ignore

Business owner stress statistics are telling. 72% of adults report feeling stressed out about money, according to the American Psychological Association (APA). Whether it’s worrying about paying rent, feeling underwater by debt or cash-flow issues. 

According to the American Institute of Stress, 40% of workers reported their job was very or extremely stressful. This is primarily due to excessive workload, people problems, job security, and work/life balance.

And also, according to the American Institute of Stress, 25% view their jobs as the number one stressor in their lives. Most people would agree that, though this is common, it has to affect long-term health in the form of delayed healthcare, poor physical health, poor mental health, and unhealthy coping strategies. 

On the job, stress is linked to higher weight, and job stress is known to fuel disease. Another study found that women are more sensitive to pressure than men and are more likely to be depressed by stress with higher anxiety levels.

6 Stress Management Tips

Try these 6 stress management tips for you and your employees:

1. Focus on what is going well. The tip’s heart is inventorying a list of all the achievements you have made with your business since the start of your endeavor. Get detailed. Consider the milestones, and it will most certainly be a longer list than you anticipated. Looking back at the list, milestones will add positivity to your mood and help you manage adverse situations better.
2. Prioritize your tasks. While multitasking is a way of life for all of us, there are ways to limit this activity to a manageable level. Task prioritization is one way. Focus on a small number of tasks at once. Prioritize your goals on a piece of paper and try not to get overwhelmed!
3. Clear your mind. We’ve all been there where your brain swims in between work and home, especially in 2020, when many of us work from our homes. Try writing everything down in overwhelming moments. You will reach the end of your thoughts. This clearing of the mind is a way of processing your anxieties so they can be at rest in your head. And the ideas will always be there when you can sensibly get to them.
4. Take Breaks. If you are working on several things and nothing is getting done, take a break. Do something you find relaxing. You’ll return with a clearer mind.
5. Take care of yourself. Owning a business is a non-stop lifestyle, plus the stress on top of that. Start with the basics: drink water, eat a good diet, get adequate sleep, take supplements if needed, and reduce excessive caffeine. 
6. Exercise. Getting exercise is crucial to stress management for business owners. It naturally releases anxieties and frustrations. It can leave you with a clear mind and help you relax. Even a small amount of exercise helps. So, consider taking small steps towards boosting your routine.

Stress Management Benefits

According to Mayo Clinic, stress management is “learning skills such as problem-solving and time management, enhancing your ability to cope with adversity, improving personal relationships and practicing relaxation techniques.” The development of this particular skill set will serve you well in stress management for business owners. 

By learning to handle stressors, you gain more control over your life. This control gives you the power of making better-informed decisions. Finding employees who can help lighten your load can help quite a bit too. However it is done; it would serve the small business owner well to lessen anxiety by handing off some tasks.

Maintaining a Good Work-Life Balance

Crucial to stress management for business owners is an acceptable work-life balance. A work-life balance and connection to community are among the top needs and wants of workers. This balance is crucial in preventing burnout, especially for business owners. 

The fact is that small business owners don’t get enough home life to feel balanced. Not feeling this balance will just add to the stress, which you don’t need. 

Maintaining boundaries is a good place to start. Boundaries are an excellent tool for stress management for business owners. There has to be a difference in your time from when you work and your free time. Establishing a healthy boundary for this will help you get more done. 

Managing Your Financial Stress & Solve Cash Flow Challenges

Emotional, physical, mental, and financial needs can all take a toll on a business owner. Whether its loan payments, cash flow problems or spending savings. 

Signs of financial stress may include: 

• Getting in arguments with loved ones about money
• Not opening mail or answering the phone
• Feeling excessive guilt about spending money on non-essentials
• Worrying and feeling anxious, particularly about money

Financial stress can be devastating to both personal life and a work-life. It affects both. But there could be an answer to your cash flow issues.

ROK Financial is standing by to talk to you about business loan options that will specifically address your business needs, and hopefully help ease any stresses you may have around any financial struggles.

Having cash in your business can help solve financial stress and cash flow problems. Cash can help you meet the daily demands (lessen stressors) and give you breathing room to operate during challenging times. Obtaining a business line of credit is easy at ROK Financial. And, it offers a safety net that can provide business owners the comfort they need to keep stress levels manageable. So, let ROK Financial be the answer to financial stress and anxiety. They can be a partner with a helping hand where your needs come first.

If you’ve read our earlier blog on acquiring a revolving line of credit for your business, you may be thinking, “But I have a bad credit score. Is it possible for me to get a line of credit?” The good news is yes. Approval may be more difficult, and the interest rates will be higher, but you can be on your way to success once you get the financial assistance needed. Read farther to see how to access a line of credit, even with a bad credit score. 

Why Get a Business Line of Credit

Business lines of credit provide flexibility, and they differ from standard business loans because borrowers only pay on the amount used, not the amount available. Regardless of credit status, cash flow is a common problem, especially for new businesses, so the reward may be worth the time and effort put in to get a business line of credit. Even if cash flow isn’t a problem, having cash on hand allows business owners to expand quicker, make necessary repairs, and buy additional inventory to meet seasonal demand. 

Business Credit Line Options 

Options vary based on several individual factors, but the two most common types are short-term and long-term. 

• Short term loans are generally for less than a year and are easier for those with poor credit to obtain. Consumers pay less in interest over the term of the loan than long-term.
• Long-term loans are generally for more than a year and are more difficult to obtain than short-term loans. They provide more favorable interest rates to consumers. 

These loans may be either secured or unsecured. 

• A secured loan means the borrower will have assets as collateral if the borrower doesn’t pay back the loan. For example, in a car loan, the collateral is the car purchased with borrowed funds. Not paying the loan results in the lender taking possession of the vehicle. 
• An unsecured loan comes without any collateral requirements, but this is typically available at lower limits and for consumers with good credit. 

Sources of business lines of credit: Big banks vs. online lenders

The general requirements are: 

• Two years in business under existing ownership 
• $100,000 in annual revenue. 
• Credit history

The top three banks in the U.S.- JP Morgan Chase & Co, Bank of America Corp, and Wells Fargo and Co offer business lines of credit from $10,000-$100,000, with varying fees and interest rates. However, it’s almost impossible for sub-prime borrowers to get a loan from a traditional bank. Sub-prime borrowers are defined as having credit scores below 680. Don’t despair!  During these difficult economic times, millions face, online lenders like ROK Financial can provide a life line and the boost your business needs to grow. Online lenders’ applications are less time consuming and can be a source of instant funding. 

4 Four Simple Steps To Apply Today For Instant Funds

To apply for instant funds, take these steps. Determine your lending options: 

1. Find out credit score. Consumers are entitled to one free credit report per year. Visit annualcreditreport.com, the only website authorized by the Federal Trade Commission for free reports, or call 1-877-322-8228. With this information in hand, a borrower can search for the best rates based on their credit score. Online lenders will likely have higher interest rates and fees. Even with higher credit scores though, online lenders may be preferential due to the time-consuming process of applying for loans with traditional lenders. 
2. Time in business. If your business doesn’t’ qualify for a traditional loan because your operations are less than two years old, online lenders are an option. These sources vary with some requiring one year and some without any length of time requirements.  
3. Revenue. Calculate how much revenue comes into the business. The higher the amount, the better the terms are more likely to be for borrowers. For those businesses not meeting the six-figure requirement of big banks, online lenders can be a source. Some online lenders require less than $100,000 of income to get a loan. 

Determine your line of credit options:

1. Short-term vs. long-term: Even with bad credit, borrowers can find a range of options from online lenders. ROK Financial offers loans from 6 months to 10 years. The advantage of short-term loans is that they accumulate less interest over the lifetime of the loan. The advantage of long-term loans is their lower monthly payments. 
2. Secured vs unsecured: Typically, online lenders will not require collateral, but will require a personal guarantee from the borrower, or will file a lien against the business. 
3. No doc line of credit:  This is an option for those without much financial history. These are, just as they sound, lines of credit without supporting documentation on an application. One of the most common forms is business credit cards. Needless to say, these are riskier for lenders and typically include higher interest rates and lower credit limits. 

Gather all necessary documents: 

• Social Security number or Tax ID
• Business Bank Statements
• Tax filings
• Profit/loss statement, balance sheet, bank statements
• Review individual lender for additional documents

Apply and compare options:

After applying with all required documents, lenders will respond with an approval or disapproval. If approved, lenders will provide the terms of the loans. The terms of the loan include

• Amount and length
• Interest rate
• Fees (if any)
• Payment schedule. Revolving lines of credit are advantageous since they don’t require a monthly payment if a borrower does not use the available credit. 

Not sure how much you need or what you can afford?  You can also speak to a ROK Financial business financing advisor today to find out if you qualify.  

During these uncertain times with all its political, health, and economic tribulations, many business owners rightly are anxious unsure about the future.  Consider, in February, the unemployment rate was at a near-historic low of 3.5%. After Coronavirus spread to all 50 states in March, the rate skyrocketed to 14.7% in April. The rate dipped to 8.4% in August, but what is a business owner to do in such a rollercoaster economy? 

The Federal Reserve has stepped in to nurse the economy. One of its roles is to ensure the U.S. banking system runs smoothly. The Fed has kept its interest rate near zero during the pandemic to stimulate lending. Right now, interest rates on loans are the best consumers are going to see. One of the credit options available is a revolving line of credit. 

What Is a Revolving Business Line of Credit & How Does It Work?

Suppose you’re a business owner who could use cash on hand but doesn’t have it readily available. This is when a revolving line of credit would come in handy. Let’s make clear what these terms mean. 

A line of credit is a determined amount of funds available from a financial institution to a borrower. Once the borrower pays back any borrowed money, the line of credit ends. For businesses who repeatedly want to tap this resource, a revolving line of credit works better, though. A revolving line of credit continually replenishes the amount available to borrow once a borrower pays back any amount owed. 

A credit card is a prime example of revolving credit. Each month, the cardholder borrows based on a limit. If a cardholder has a credit limit of $10,000, charges $1,000 on the credit card, the holder has $9,000 left to borrow. But when the holder pays back the $1,000, the line of credit replenishes to $10,000. Revolving credit is unlike a traditional small business loan, which is a line of credit but doesn’t replenish or revolve once the borrower repays any amount borrowed. For businesses, revolving lines of credit work similarly. The lending institution provides an amount available to a business. Once the business repays any amount borrowed plus applicable fees and interest, the lending institution will revolve the amount to its original figure. 

The main benefit of revolving lines of credit is that they are readily accessible to businesses. A business owner doesn’t have to prepare necessary forms, apply, and wait for approval from a financial institution like a loan. With cash available in a business bank account, a business owner doesn’t have to delay making vital repairs or taking advantage of expansion. 

If you’re a business owner, and want to acquire a revolving line of credit, you will have either a secured or unsecured loan.

• A secured line of credit means that you the borrower will have to use one of your assets as collateral in case you don’t pay back the loan. For example, in a car loan, the collateral is the car purchased with borrowed funds. Not paying the loan results in the lender taking possession of the vehicle. 
• An unsecured loan comes without any collateral requirements, but this is typically available at lower limits and for consumers with good credit. 

The three most common types of revolving lines of credit to small business owners are:

1. Short-term: These are for shorter terms and less credit but can be easier for those with poor credit. 
2. Long-term: These can last years and include higher credit amounts but have stricter qualifications. 
3. Business Credit Card: These provide flexibility and convenience. Best for small day-day business purchases. 

Lending institutions determine who has good credit through a credit score.

What Type of Credit Score Is Required?

This is a number between 300-850 and is determined by credit history. The higher the score, the better. Factors in credit score include amount of debt, types of loans, and most important, repayment of debt. Those with higher credit scores receive lower interest rates and have more lending options available. Sometimes though, businesses can make mistakes that result in low credit scores. This isn’t a death sentence, and there are lending options for business lines of credit at ROK Financial for those with low credit scores. 

Four Ways A Revolving Line of Credit Can Help Your Cash Flow

Once obtained, a revolving line of credit can be used for many of the most pressing business needs. It is especially beneficial to businesses whose sales fluctuate like retailers at holiday season or construction companies. Here are four ways you can use your credit to help your cash flow.  

1. Payroll: Without employees, those vital needs like stocking, ordering, and customer service can’t be done, and the costs to businesses to continually hire and train staff can be very expensive. 
2. Purchasing necessary equipment: Let’s say you run a restaurant, and the central air dies. It needs to be fixed immediately in order to stay open for business. Or, there’s a new cash register that’s much more efficient at taking orders that your competitors are using right now. Getting this immediately levels the playing field. 
3. Expansion: Lean times are often the best time to expand, if greener pastures are on the horizon. In June, the Fed announced it expects the Gross Domestic Product to contact 6.5% in 2020 but expect it to grow by 5% in 2021 and 3.5% in 2022. Having cash on hand will expedite business expansion. 
4. Increase inventory: Businesses that do the bulk of their business at certain holidays or seasonally will need to increase inventory significantly at specific times. A restaurant on Cape Cod might be open year-round but will see a significant increase in summer. That restaurant must purchase extra food to meet demand. 

Let’s say you the business owner see revolving credit as beneficial but are unsure how to get it and how much is available. 

How do You Qualify and How Much Can You Get?

Qualification is determined by multiple factors, including length of time in business, sales, and amount of debt. Generally, a business has to operate for at least three months and have revenue of $15,000. 

Another question to consider, how much can I get? How much is determined by many factors. ROK Financial provides lines of credit from $10,000-$5 million. 

Before Making a Final Decision

Keep in mind that some revolving lines of credit require minimum withdrawals and include fees. Typically, revolving lines of credit have lower lending amounts than traditional business loans. You can talk to a ROK Financial advisor today and get options within seconds.

The question of “How do small business loans work” is the natural question when deciding on growth possibilities or starting a small business. 

Maybe you’ve come up with that product that has the market beat. Or, maybe you need a piece of equipment that would tip your business’s growth over the top. Or, maybe outstanding invoices have you in need of funds for operating costs. Whatever it may be, it may be time for a loan.

What is a small business loan?

So, what is a small business loan? Simply put, a small business loan is any funding option specifically designed for a small business.

Are small business loans a good idea? 

Small business loans are designed specifically for the small business owner. So, minimal requirements, friendly qualifications, and flexible terms make a small business loan a great idea for the growth-minded business owner.

What Are The Requirements?

Quite often, this is the next question after “How do small business loans work?” Loan types have different minimum requirements that borrowers need to meet. And they all come with special requirements for documentation. Your advisor at ROK Financial will explain all of the requirements. But, approval and lending can happen as fast as one day with some types of loans.

How Hard Is It to Get Approved 

A small business loan is easier to obtain than you might think from a lender like ROK FInancial instead of a bank. There’s minimal paperwork involved and you do not need a perfect credit score.

A small business loan application can include such pertinent information including how many years you’ve been in business, your credit score, and your gross annual income. These are the mainstays that every firm will start with to assess your application.

ROK Business Financing Officers will work hard to find the right loan with the right specifications for you!

Business Financing Options and Loan Types 

There are many business loans on the market and it can be beneficial to go over them by type.

Term Loan – A standard bank-type loan. You receive the funding and pay off the principle plus interest over time.

Equipment Financing – An excellent way for a growing business to get an edge. You receive the equipment upfront and pay it off over the life of the equipment.

Accounts Receivable Financing – If you have large amounts of outstanding invoices, you can borrow against them. The invoices act as collateral and AR Financing offers lower rates.

Merchant Cash Advance – A merchant cash advance is borrowed against future credit card sales. A borrower then pays back a percentage of daily CC sales to the lender. So, you never have to see the payments!

Business Line of Credit – A business line of credit works just like a non-physical credit card. The owner of a small business is extended a line of credit and is charged the interest only or what is spent.

Alternative Financing 

Of course, there are alternatives to standard lending. And yet another answer to “How do small business loans work?”.

Small Business Administration Loan – An SBA Loan is a business loan partially guaranteed by the government. Although there is a longer application process, this is an excellent option for any small business owner to investigate. In most cases, with an SBA loan the borrower can enjoy better terms, lower interest, a higher dollar amount if needed, incredible rates, and low risk.

V.A. Business Loan – Small businesses of returning veterans have a marked impact on the economy. If you or your spouse served our country in the military and would like to fund a small business, there are several advantageous loans available for veterans.

Talk to a ROK Financial Advisor to see if one of these loans would be a benefit to your small business.

Business Loan Repayment Terms 

The options on loan repayments are infinite which is another reason why a small business loan is an excellent option for your small business.

To calculate an estimate of monthly loan repayment options, visit a business loan calculator. Here you can enter the amount you want to borrow, the interest rate that you for which you are calculating the loan, and the length of the loan. 

Then you’ll be given an estimate of what a particular loans repayment cycle looks like. Not all loans are paid back in the same manner, so talk with your ROK Financial Advisor about repayment plans that work best for you.

4 Simple Steps to Apply 

Applying for a loan at ROK Financial couldn’t be much easier. Our streamlined processes and strong relationships allow ROK Financial to process hundreds of transactions per month resulting in hundreds of millions of dollars distributed to small businesses every month.

1. Complete the application for Small Business Loans with some basic information to see which financing options you qualify for and to be paired with a Business Financing Advisor.
2. Your Business Financing Advisor will contact you within 24 hours.
3. Tell them how they can help you find the right loan for your small business needs. Your Business Financing Advisor will work to find the best loan for you
4. Get approved in as little as 24 hours and receive funds in 1-3 days.

So, How Do Small Business Loans Work? 

Let the professionals at ROK Financial show you all the options for the optimal small business loan for your small business. With flexible loan types and repayment schedules, there’s bound to be a loan for you.

The first step is to apply for one of our small business loans by filling out the quick application. And let ROK Financial help you from there!

You have worked hard to create, build, and maintain a business of your own. You want to protect all of that hard work, no matter what. Whether you think you may struggle during a recession or not, it is important to have a plan ready if and when a recession hits.

A recession can be a terrifying time for small businesses, especially when it feels like there is no end in sight. Consumer spending goes down and sometimes comes to a halt. When there’s no cash coming in, but you still have bills and financial responsibilities to pay, it might feel like the end of your business.

What can you do to protect your small business during these tough times? Taking out a small business loan can help support your financial needs to keep you on your feet during a recession. So how does business lending during a recession work?

How Small Business Lending Is Affected During a Recession

When a recession hits, small business lending can change. The Federal Reserve significantly decreases interest rates to encourage small businesses to consider taking out loans. Moving money from their savings account to loans helps boost the economy, so interest rates will rarely rise.

Banks and lenders know they are going to take a hit during this time, as some companies will need to delay payments. Because of this, the qualifications to obtain a small business loan are increased as they are hesitant to approve long term loans during times of uncertainty.

To be sure that you can get a small business loan and have that extra cash to lean on, it might be a good idea to take out a loan before a recession hits. 

Having this security can save your business when money is tight, even at the cost of higher interest rates. If you have collateral to offer your lender, this could reduce your interest rates. If you would like to learn more about what options may be available to you, we suggest speaking with a Business Financing Advisor at ROK Financial. To speak to someone today, you can apply for a small business loan here at no-cost and it will not affect your credit score.

Small Business Lending Trends

Small business lending trends are what drive a bank’s decision-making for the upcoming year. Understanding this year’s trends can also help you make informed decisions about loans and finances for your business. Here are some of the trends we see for 2020:

• 29% of small businesses have failed due to low capital
• 43% of small businesses applied for loans in 2019
• 48% of small businesses have met their financial needs
• 70% of small businesses are in debt
• 56% of small businesses use loans and funding to improve and expand their business
• $633,000 was the average loan amount to small businesses
• $107,000 is the average amount for SBA loans

These trends show how important business lending during recession can be. 70% of small businesses are in debt. Having extra debt during a recession can really hurt your business. However, taking out a small business loan can help you manage your finances and keep your head above water until the cash starts coming in again.

Less than half of small businesses have met their financial needs, and this was before the Coronavirus shut down the US Economy. This shows how small businesses can struggle in a normal year, making recessions even more detrimental. 56% of small businesses have found that small business loans can truly help improve and expand their business by investing in marketing strategies and expanding their products.

How COVID-19 Impacted Business Lending

The COVID-19 pandemic has put some serious stress on small businesses, resulting in a plethora of businesses needing loans and financial support. The effects of small business loans during this recession led to the creation of the Coronavirus Aid, Relief, and Economic Security act, or CAREs Act. This act gives emergency relief and resources to small businesses. 

The CAREs Act includes the Paycheck Protection Program that prevents workers from losing their jobs. Further detail for the Paycheck Protection Program can be found later in this article. 

What Role Does The SBA Play in Business Lending

The SBA, or U.S. Small Business Administration, has announced some guidelines to support small businesses during the Coronavirus pandemic. The administration suggests that businesses test their access to capital to determine their needs for financial assistance.

Making sure your business has enough inventory to last a sustained period of time. Finding and buying supplies during this pandemic could be difficult, and prices may increase. Businesses should determine whether their workers can safely perform their duties within CDC guidelines. 

The SBA discusses the importance of marketing and communicating openly to the public and your consumers. Ensure customers that they will be protected if visiting your establishment and buying your products. For more guidelines, visit sba.gov.

Other Types of Financing During a Recession

There are other options, aside from small business loans, that can support your small business during a recession. A business line of credit is another option for financial support. 

A business line of credit allows you to borrow up to a limited amount of funds and only pay interest on the amount borrowed. You can take out funds and repay funds as needed up to your credit limit.

An Economic Injury Disaster Loan, or EIDL, is another option for financial support. If your business is losing revenue due to the coronavirus pandemic, this loan can provide you with economic relief. To learn more, check out the SBA site for more information.

Summary

It is always smart to have a backup plan to keep your business safe during a recession or any time of economic stress. Business lending during recession or another form of financial support can allow you to stay afloat while you wait for the economy to recover. Once the economy recovers, it will be easier to bounce back and get your business back to running as usual.