10 Things Startups Should Know When Applying For A Small Business Loan

Starting up your own business is thrilling and rewarding, but it’s also challenging. This is especially prominent if you do not have the funds to get your company off the ground. While you could slowly save up money and see your company grow in a few years, you could also get the help of an experienced business loan broker to help you get a small business loan.

But, applying for and getting a business loan is no easy task, and you should never go about it lightly. Whenever you apply for a loan, you should educate yourself to be prepared and responsible. When you deal with money, it would be best if you’re always smart about it.

What Should I Be Aware Of Before I Apply For A Business Loan?

A good business loan can be a fantastic way to boost your startup business. With the help of a business loan broker, you have a good chance of getting a loan, and then you can do what you need to do to grow your company. Then, when you see more profits, you can continue to thrive as you easily pay back your loan.

But, building up your company isn’t always that simple. If you want to do things right, there are a few things that you should know about before you start on any kind of application for lent money. If you are too hasty, you could end up in a bad situation that could even be costly.

Therefore, if you are considering getting a loan to help your business, keep these things in mind before you go to a business loan broker or lender:

1. You Need A Plan. To maximise your success, you should always have a plan. This includes planning out how your business will grow, what you will do with the money if you successfully get a loan, how you will pay the loan back and more. Your lender will probably also want to know how you plan on using the money, so you need to be prepared.

2. You Should Reflect On How Much Money You Need. Of course, when you’re asking for money, you should know how much you’ll need. When you’re determining this number, you should think about what you want the money for and how much that’ll cost.

3. You’ll Need To Have Your Business’s Financial Details Ready. Even if your company is new, you’ll need to have your details ready for your business loan broker and lender to see. This information will help them know more about you and where the loan’s money is going.

4. Your Business’ Credit Score Matters. A credit score is a great way to determine if a business is credible. Most lenders will always check your credit score when examining your details.

5. Your Personal Credit Score Matters As Well. Like your business’s credit score, your personal credit score also matters. This score will help lenders determine if you’re trustable with your money.

6. If You Put In Too Many Applications, Lenders Could See This As A Bad Sign. Some people may be tempted not to see a business loan broker and simply send in many applications to different lenders to get more money. But, this can be a red flag to lenders.

7. Not Ever Lender Is The Same. Every bank and lender is different and could offer good or bad deals. Because of this, you should never go with the first lender you find unless you really know they’re ideal.

8. There Are Different Kinds Of Loans. Like lenders, there are several different kinds of loans for various situations. It’s essential for you to understand what kind is best for your company.

9. Read Everything Thoroughly. Applying for a loan affects you and your business, so you don’t want to get caught off guard by the small print. Always read every document you get so you fully understand what you’re getting into.

10. An Experienced Business Loan Broker Can Make All The Difference. If this is your very first time applying for a loan, the process may seem confusing and complicated. So, seeking help from a professional loan broker can genuinely help you financially and mentally.

I Want To Apply For A Small Business Loan, Where Can I Find Help?

Dealing with loans can be very difficult and stressful – but a friendly and understanding loan broker can help you through each step. Our team at Spinach excels at assisting New Zealand businesses with loan applications, and we’re here for you if you need us.

Applying for a loan may seem difficult at first, and you may be tempted to not apply for one at all. However, a loan’s funding can be what you need to truly turn your startup into a success. For more information on how you can successfully get a loan, please visit our contact page to get in touch with our helpful team.

Give your startup the boost it deserves with assistance from our knowledgeable loan brokers at Spinach.

Managing Your Business During the Holiday Season

As the holiday season approaches, it becomes important for the management and employers to keep an eye on the productivity and motivation levels within their organizations as employees can sometimes find it difficult to focus during this time due to the excitement of the holiday season as well as the burnout and fatigue.

 

Following are some tips you should follow to manage your business effectively during the holiday season:

 

1. Set Realistic Goals and Discuss Expectations

Providing guidelines on what needs to be done by the end of the holiday season or before the business closes down will help ensure that your employees do not lose sight of their required tasks. Your main focus should be the project deadlines that are most pressing. Let your employees know about holiday season expectations early including additional hours, increased responsibility, and extra workload expected. Not only will this help ensure that your business remains productive, it will also ensure that the time is managed effectively, hence reducing the stress levels of your employees.

 

2. Cashflow Optimization

It is recommended that you forecast your holiday budget. Even if it’s just an estimate, the forecast will prepare you for the holiday season and allow you to plan ahead. You are most likely not equipped to handle the high volume and unpredictability of the holiday season if your cash is not enough for your business to make do on any given day. There may even be a situation when your cash only exists in the form of accounts receivable and inventory. In such cases, you must implement certain strategies to increase your cash flow to save your business from insolvency.

 

3. Schedule Wisely

Your employees will want time off as it’s the holiday season after all. However, not everyone will be able to take the same days off. You should work out a schedule that is fair for everyone. Start by scheduling early, before your employees buy plane tickets. You should also make it clear that while your employees may request time off during the holiday season, they may not get exactly what they want.

 

4. Consider Flexibility

For certain businesses, the holiday season is the busiest time of the year. It is recommended that you consider offering your employees flexible hours where possible – whether it is finishing earlier or starting later. Your employees will certainly appreciate this and it will help decrease absenteeism during this time.

 

5. Staffing Needs

If your business requires extra staff for the holiday season, then make sure you hire people only for the tasks you need doing, for the time you need them done in. Fulfilling the staffing needs may sound easy but realizing this goal can take a lot of planning and forecasting.

 

6. Notify Customers and Suppliers If You Plan to Close Down

Make sure you communicate the dates in which your business will stay closed during the holiday season. You can notify customers through your website and newsletters. Suppliers should be notified via phone, email, or postal mail.

 

In conclusion, the way you manage your business and respond to the needs of your employees during the holiday season will have a huge impact on business productivity and employee morale. Following the above-mentioned tips will be highly beneficial in this regard.

The Employee Disciplinary Process in NZ

When you are concerned that your employee’s conduct could be misconduct or you receive a complaint about an employee’s conduct, then you must take certain steps in order to make sure that the employee disciplinary process is fair. If you don’t follow the New Zealand’s disciplinary process, then you are likely to run into issues with your employee. The same is the case with not dealing with the employee with good faith in a fair manner.

Following are the steps of the employee disciplinary process that you should follow to make sure that the process is fair:

1. Review the Employment Agreement

It is highly recommended that you review your employment agreement to learn what is required to be taken for misconduct. This is important because if a prescribed process in the employment agreement is not followed, then an employee may have grounds to lodge a personal grievance.

2. Consider the Conduct

If your employee’s conduct is sufficiently serious or their presence in the workplace could hinder your investigation, then the employment contract allows that you warrant a suspension of the employee. However, if the agreement does not provide the ability to suspend, then the suspension would only be warranted and justifiable in very limited circumstances.

3. Investigate

The nature and manner of the complaint has to be investigated confidentially and promptly and you should gather all relevant information by interviewing all witnesses. It is also your obligation to inform the employee before the start of the investigation that you will be investigating. You should explain to the employee the details of the allegations, their seriousness, and that they may need a representative to be present at all meetings.

You should give the employee at least 24 hours advance notice of the meeting and inform in writing of the following:

  • The nature of the complaint.
  • The potential outcome of the meeting.
  • That the employee must bring a representative to the disciplinary meeting.

4. Disciplinary Meeting

The disciplinary meeting provides you the opportunity to raise your concerns and detail the complaint to the employee in question by providing evidence gathered via your investigation. You should give the employee an opportunity to respond to the allegations.

In the disciplinary meeting, set out the concerns and allegations and invite the employee to respond. If the employee gives an explanation that gives rise to further investigation, then it is recommended that you adjourn the meeting so you can further investigate. If you proceed to further investigate, make sure to give the additional information to the employee so he/she can comment on it.

5. Decide Whether the Alleged Conduct is Substantiated

After the meeting, you should take all of the evidence (including the responses of the employee) and decide on the balance of probabilities whether the alleged conduct is substantiated. You should wait at least 24 hours from the time of the meeting to communicating an initial decision. It is recommended that you use this time to give the matter objective consideration.

6. Decide on the Appropriate Course of Action

Depending on the conduct as well as the terms of the employment agreement, you will need to decide what action (if any) should be taken. If you have concluded that the allegation has been made out, then you should inform the employee of the initial decision and give him/her a chance to respond on the proposed outcome. You should also adjourn the meeting for at least a couple of hours before making a final decision so that you can consider any further comments made by the employee. After that, you should communicate the final decision to the employee and confirm it in writing.

Tips for Employee Disciplinary Process

Now that you know what the employee disciplinary process entails, here are some things you should keep in mind:

  • You as an employer, cannot dismiss an employee without first going through a disciplinary process, regardless of how serious the allegation is.
  • If an allegation is serious and requires the employee to be suspended, then you should suspend the employee while you go through a disciplinary process.
  • Always follow the disciplinary process that is agreed to in employment policies or agreement.
  • You cannot discipline an employee if he/she is genuinely ill. Such cases should be dealt with via a medical incapacity process.
  • Always be reasonable and fair. Sometimes there may be an honest explanation for suspicious circumstances.

 

The employee disciplinary process described above is basically of a generalized nature. For any particular situation, it is recommended that you seek advice that is related to your specific situation.

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