Latest news with #businessowners
Yahoo
12 hours ago
- Business
- Yahoo
Pros and cons of equipment loans
Equipment loans can be used to purchase large assets for lower rates and easier approval than unsecured loans. Equipment loans are easy to qualify for and are offered through a variety of bank and online lenders. If you fail to pay your equipment loan on time, the lender may seize the equipment to recoup their loss. If you don't have thousands of dollars in the bank to buy business equipment, then an equipment loan can get you what you need. Equipment loans can finance office furniture, point-of-sale systems, trucks, cars, farming machinery and more, making them a versatile option for business owners looking for funding. The equipment you finance also acts as collateral, lowering your borrowing costs and making your application more appealing to lenders. As such, equipment loans can be a good option if you have a lower credit score or low time in business. According to the Federal Reserve Banks' 2024 Small Business Credit Survey, 68 percent of auto or equipment loan applications were fully approved, the highest approval rate of any loan type. While equipment loans can help companies purchase essential machinery or equipment, it's important to consider the pros and cons of equipment loans before signing on the dotted line. Flexible financing Lower approval requirements Credit-building opportunities Built-in tax breaks Ownership instead of renting Limited to financing equipment May require a down payment Loan could outlast life of equipment Maintenence costs extra Lender can seize the equipment if you default If you need to acquire equipment for your business, there are lots of pros to using an equipment loan. Equipment loans can be used to fund a variety of equipment types, from computers to construction equipment. This type of financing also saves you from having to tie up large sums of cash purchasing equipment. With a loan, you spread the cost over the life of the loan, which can be anywhere from three and 10 years. Longer terms can mean lower monthly payments, though with the interest rate, you may end up paying more interest overall. Many lenders offer relatively quick funding for equipment loans, especially if you go with an online lender. You may be able to receive funds in as little as 24 to 48 hours. Banks may take up to a week to approve funding, though their underwriting process is faster for this type of loan than with unsecured loans. Getting any kind of loan can help your company build credit, but an equipment loan is one of the easier ways to start building credit. They're usually easy to qualify for, even if your company has no operating history. Just be sure to make your payments on time to avoid any hits to your credit. Section 179 of the IRS tax code allows you to write off the total cost of the equipment or machinery the year you bought it, even though you're making payments and don't yet own it in full. Depending on the equipment value, this can result in considerable tax savings. Starting in the tax year 2024, the maximum section 179 expense deduction is $1,220,000, and the total equipment value for the 2025 tax year is $3.13 million. Leasing equipment is like renting, you pay to borrow it but then have to return it without getting any of the investment benefits. When you finance business equipment, you get to keep it even after paying off the loan. This is especially beneficial for equipment that will last longer than your loan term, such as office or restaurant furniture and farm equipment. Bankrate insight Equipment leasing is a common alternative to equipment financing. It involves renting the equipment from the leasing company for a specific term. Leasing can be beneficial because it often comes with a lower monthly payment and lower or no down payment. However, you won't own the equipment at the end of the lease unless the lease comes with an equipment buyout option. Before getting an equipment loan, you have to consider the drawbacks before applying. Equipment financing is limited in use. You can only use it to purchase or repair equipment and only equipment that the lender agrees is adequate to serve as collateral. If you need funding for other purposes, you'll have to look at other types of business loans. Many equipment loans require a down payment of as much as 20 percent of the equipment's cost. If you're buying expensive equipment, you might need a lot of cash, or you may have to look into leasing if you can't afford a sizable down payment. There's a chance, especially if you get a long-term loan, that the loan will outlast the equipment you purchase. For example, if you get a 10-year loan, but the equipment breaks after five years, you're stuck with five years of payments for something you can't use anymore. Even if it doesn't break, it may still wear out, become less useful, or become obsolete. Before signing for equipment financing, make sure the equipment is in good shape and will outlast your loan term. You could also look into getting a warranty or insurance on the equipment to cover major repairs, extending its usable life. Just like financing a vehicle, you're still responsible for maintenance costs and repairs if the equipment breaks down while you're making payments on the loan. Though some maintenance is routine and expected, the equipment may break down at any time, increasing the overall cost of owning it. If you fail to make payments and default on the loan, the lender has the right to seize the equipment and sell it to recoup the loan cost. You will lose all the value that you invested into the equipment. To avoid this scenario, ensure that you can easily manage loan repayments, fitting the repayments into your business budget. If your business revenue takes a hit during the loan and you think you'll miss a payment, contact the lender to see if they will work with you. An equipment loan makes sense for your business if: You can't afford to buy equipment outright You want to own the equipment at the end of the loan You're looking for the lowest overall loan costs You want to keep liquid cash on hand for other business needs You're willing to use the equipment as collateral for the loan If you don't want to use the equipment as collateral, you may be better off with other business loans, like an unsecured term loan or a line of credit, though this can come with higher interest rates and approval requirements. If you don't have great credit, such as a 500 personal credit score, you might look into alternative financing, like a merchant cash advance. Whether you finance your equipment purchase depends on how much capital your business has and how much extra you're able to pay for equipment purchases. Many businesses use an equipment loan to help them keep cash reserves and cash flow within their business, paying off the equipment in small increments. If you have plenty of capital, you could save money on interest by buying the equipment outright. Equipment financing is flexible and widely available, even for startups and businesses needing bad credit financing. Shop around to compare equipment loans from a few sources to ensure you get the best rate and lowest fees. You can also compare equipment loans with other top loans on the market to make sure you're choosing the best option. What credit score do you need for equipment financing?One of the benefits of equipment financing is that it's easier to qualify for than other loans. Each lender will set its own minimum credit score requirements, but a minimum personal credit score of 600 isn't unusual. Keep in mind that a credit score is just one factor lenders consider. They'll also examine your revenue, operating history, down payment, and other factors. What equipment can be financed?You can finance almost any equipment for a business, from heavy equipment to storage tools to IT systems. Examples include cranes, excavators, trucks, servers, software, computers, food packaging tools, industrial coolers and box makers. How hard is it to get an equipment loan?Equipment loans are typically not hard to get. You can qualify for one with moderate credit and a sufficient down payment, even if you're running a startup. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
18 hours ago
- Business
- Entrepreneur
Why Everyday People Are Turning to Ecommerce to Regain Control of Their Life
Ecommerce is more than just a business model. For many, it's about finding stability, freedom and a way to feel in control. Opinions expressed by Entrepreneur contributors are their own. Ecommerce entrepreneurship is rarely about getting rich overnight. Many who try this seek solutions to their everyday problems — high cost of living, burnout from their 9-to-5, family needs or simply more independence. With each passing day, ecommerce is becoming more and more the best solution to overcome these challenges. Digging deeper, we conducted an email survey asking Sellvia store owners why they decided to start an online business. What really surprised us was the number of people who decided to participate in our study. Many of these replies were truly heartwarming, touching and in some cases, even eye-opening. This highlights the importance and impact that ecommerce can have on the lives of regular people. So, here are the seven most common challenges ecommerce helped solve, according to our survey respondents. 1. Finding financial stability More than 64% of our surveyed respondents claimed that they started their ecommerce business for the simple reason that traditional employment wasn't enough. For some, one paycheck fell short; others were limited by their health, age or they simply didn't have any better options. Ecommerce offered them something that nothing else could — a way to earn without needing any special skills, experience or big investments. Many people who responded had similar backgrounds: juggling multiple jobs, living paycheck to paycheck, trapped in an endless cycle. Having the ability to start an online business from the comfort of their own home gave them hope and, more importantly, a feeling of fulfillment and self-empowerment. For many, it was a reliable path to restoring their financial situation. Related: Selling as a Founder Is Brutal — It Was Also the Reason We Reached $400M in Revenue 2. Finding time for family About 38% of our surveyed respondents reported that they turned to ecommerce to find more time to spend with their families. Traditional 9-to-5 job schedules practically excluded them from being involved in the lives of their children. This is especially true for single-parent households. Launching an online store that can be built and managed on your own terms allowed them to finally enjoy time with their families, while having an income source that worked seamlessly in the background. For many, it was about convenience and about being present. Present for the most important moments that you couldn't experience otherwise. We heard from happy parents who were able to see those school plays, be home for dinner or care for their family members without worrying about losing income. This feeling of freedom gave them the emotional comfort they had long missed. 3. Leaving unpleasant working environments Approximately 22% said that starting an ecommerce store helped them escape workplaces where they felt stuck, undervalued and simply unfulfilled. They were tired of low paychecks and the sense of life just passing by them. In ecommerce, they found that they could make their own choices, become their own boss and finally create something of their own. Some highlighted that their whole mindset changed – they went from fearing Mondays to feeling excited about managing and updating their stores. Related: Yes, I Was a Toxic Boss. Here's How I Turned It Around 4. Turning hobbies into income Almost 37% indicated that their main motivation was to pursue their passion. Whether it was fashion, sports or gadgets, ecommerce was the best way to monetize what they already loved. In most cases, they referenced their stores as an "extension of self" — a reflection of their values, beliefs, and ideas. The personal connection with their hobbies helped them create the best possible experience. That meant better branding, creative advertising, and much more meaningful customer relationships. 5. Getting ready for retirement For around 20% of respondents, it wasn't at all about building an empire or a full-blown business — it was about having a reliable income later in life. One that was flexible, didn't require much time or huge investments. Some retirees shared that the rise of inflation, fixed incomes and the desire to stay mentally active pushed them into the world of online businesses. Others said that they did not wish to rely solely on pensions or savings. Ecommerce gave them a way to create a steady and reliable income, all without clocking into a job or having to push themselves physically. Related: The New Way to Retire: Start a Digital Business 6. Giving back to their communities Almost 13% stated that ecommerce helped them create a way to support their communities. Some people focused on promoting artists and cultural representation. Others donated portions of their profits to causes they cared about, for example, youth mentorship or educational scholarships. This idea of a "profit with a purpose" reappeared time and time again. For these ecommerce entrepreneurs, profit alone did not measure success – it was about the impact they could make. Not only are purpose-driven businesses good for your inner well-being, but they tend to perform well too. 7. Pivoting following career failures Roughly 19% of survey takers had gone through layoffs, having to retire early, or a declining demand for their profession. That's why they turned to ecommerce as a way to create their own path to financial stability. There was a common trend among those in midlife – many spent years pursuing careers that eventually offered no long-term stability or growth. Whether it was due to automation, outsourcing or driven by age, their experience and expertise were no longer valued. Ecommerce gave them a way to work and earn on their own terms. The bottom line What stood out most to us was that our study showed there wasn't a great need for huge profits or online fame. It was the desire for freedom — the freedom to work without burning out, to be close to your loved ones, to have a steady and reliable income and to build a financially secure future on one's own terms. Ecommerce isn't the magical answer to everything. But it can be one of the most practical, flexible and readily available solutions out there. And for many, it all started with a single online store.
Forbes
2 days ago
- Business
- Forbes
5 ChatGPT Prompts To Optimize Your Customer Journey And Sell More
Your customers are stalling at checkout. They're getting confused by your onboarding, losing interest after too many steps, or simply forgetting why they wanted your product in the first place. They click away and never return, and you're losing sales to businesses that make buying effortless. How big would your business be if every single person who found it actually bought from you? Turn your customer experience from questionable to inevitable with a buying journey that converts window shoppers into loyal customers. Copy, paste and edit the square brackets in ChatGPT, and keep the same chat window open so the context carries through. Business owners think they understand their customer journey, but they're missing crucial touchpoints. You have to know every step your customer takes, from first click to final purchase. Put yourself in their shoes. Track everything. Because every interaction matters. Spot the gaps and smooth them out before another customer slips through. "Based on what you know about my business, help me map my complete customer journey. First, ask me specific questions about each stage: awareness, consideration, decision, purchase, and post-purchase. For each stage, identify the exact touchpoints, potential drop-off points, and customer emotions. Create a visual representation showing where customers get stuck and where they flow smoothly. Include specific metrics I should track at each stage to measure success." Remove friction. Your revenue depends on getting this right. People buy from businesses that respect their time. Fewer clicks, clear options, fast checkout means more completed purchases. Every extra step costs you money. Every confusing moment sends customers to someone else. Don't make them think. Make buying from you the easiest decision they'll make today. "Analyze my current buying process based on what you know about my products and services. Identify every point of friction that could stop a customer from purchasing. For each friction point, suggest a specific solution to streamline the experience. Focus on reducing steps, clarifying options, and speeding up checkout. Create a prioritized action list showing which changes will have the biggest impact on conversion rates. Ask for more detail if required." Confusion kills conversions. So tell customers what's happening at every stage. Use simple language, set expectations, confirm next steps. They should never wonder what happens next. They should never question if their order went through. Clear communication builds trust. Trust builds sales. Make every message count. "Review my customer communication touchpoints based on our previous conversations. For each stage of the buying journey, create clear, simple messaging that tells customers exactly what's happening. Where applicable, include order confirmations, status updates, and next-step instructions. Make each message conversational yet professional, matching my brand voice. Suggest the optimal timing for each communication to maximize engagement without overwhelming customers." Use their name, remember their preferences, surprise them with something extra. Small gestures create lifetime customers. People crave connection, especially when everything feels automated. So make them feel seen. Show them they matter beyond their credit card number. Stand out for the right reasons when you treat every customer like your best friend. "Based on what you know about my business model and customer base, suggest 10 specific ways to add personal touches throughout the buying journey. Focus on scalable personalization tactics that feel genuine without requiring hours of manual work. Include examples of surprise elements, thoughtful gestures, and memorable moments that turn one-time buyers into loyal fans." Too many businesses ghost their customers after getting paid. Big mistake. Check in after purchase to keep the relationship building. Ask for feedback, fix problems quickly, and show you care about their experience. Fast follow-up prevents negative reviews and creates positive ones. It turns satisfaction into advocacy. Make post-purchase care your secret weapon for growth. "Design a post-purchase follow-up sequence based on my typical customer journey. Create a timeline showing exactly when to reach out, what to say, and how to gather valuable feedback. Include templates for checking satisfaction, addressing common issues, and encouraging reviews or referrals. Make each touchpoint feel helpful rather than pushy. Focus on building long-term relationships." Stop losing customers to preventable problems. Map their journey to spot every gap, make buying effortless with fewer steps, communicate clearly so no one gets confused, add personal touches that create connection, and follow up fast to turn buyers into advocates. Every interaction decides whether someone buys once or becomes a customer for life. Your next sale is waiting. Access all my best ChatGPT content prompts.
The Independent
3 days ago
- Business
- The Independent
Inside the anger at Avon as furious reps walk away over drastic commission cuts
Avon is facing growing anger from its legion of sellers after cutting commission rates in a move that some workers say has wiped out more than two-thirds of their income. Changes to pay structures, which affect thousands of representatives across the UK, have been introduced alongside shifting targets and reduced incentives – leaving many reps feeling misled, and prompting some to walk away from the company altogether. The cosmetics and homeware brand, known for its historic door-to-door model, has long relied on a network of independent business owner representatives to sell products across the UK. But many of those reps, who are not direct employees of Avon with contracts, now say they're being forced to leave, unable to make the numbers work. The Independent has seen internal company emails that appear to downplay the impact of the changes. One message claimed earnings in a particular category would fall by '2 to 3 per cent' – but in fact this referred to a drop of up to three percentage points, which in some cases equates to a real-terms loss of 33 per cent. As one specific example, team leaders previously earned between 7.5 and 9 per cent commission from the sales of those in their team. That has now been cut to between 5 and 6.5 per cent. Coordinators saw similar reductions, with earnings in some cases dropping by as much as 40 per cent. Commissions slashed One of the most contentious changes relates to Avon's fashion and home category, which accounts for around 15 per cent of its UK sales. Commissions in this area have been capped at 10 per cent, down from a previous maximum of 32 per cent – a cut of more than two-thirds (68.75 per cent) for top-tier earners. The company said the change was due to 'continued rising manufacturing and supply costs'. Elsewhere, most sellers are estimated to earn between 20 and 25 per cent commission for product sales, with the starting rate at 10 per cent. But it's not just commission rates that have shifted. Sellers say the entire earnings structure is becoming harder to navigate, particularly under the company's multi-level marketing (MLM) model, which rewards both direct sales and team recruitment. More sellers, less money Under Avon's tiered system – from bronze to VIP – reps can move up the ranks based on performance and monthly sales. Some also earn a cut of sales from those they recruit, up to three levels down. There are further bonuses available for 'leaders', though these depend on hitting personal sales targets and maintaining a team of at least five active sellers. One estimate shared with this publication suggests that, under the new structure, a silver-tier leader would need to recruit around 60 new reps just to match their income from the previous year. Several Avon workers, speaking on condition of anonymity, said they felt left in the dark about changes, with little clear communication from management and frequent shifts in expectations. Some said they had built teams and invested time training others, only to watch their earnings shrink. One added that sellers are now forced to choose between working significantly more to earn what they once were – or walking away altogether. That loss, in turn, affects the income of those who recruited them, compounding the pressure across the network. Hidden costs and unpaid roles New starters must sell at least £100 worth of goods in their first quarter to qualify for commission. The Independent has heard reports of both new and returning workers being denied payments, sometimes without explanation. Meanwhile, some reps say they've been asked to take on roles as 'training ambassadors' – coaching new recruits, at times without realising the work is unpaid. Avon's public messaging also appears inconsistent. On its website, the company promises prospective reps: 'If you sell £400 a month, you'll earn about £100.' But a disclaimer further down the page warns: 'It is illegal to promote or participate in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join… Do not be misled that high earnings are easily achieved.' The note adds that earnings are based on 2023 actuals and depend on 'criteria achievement'. On social media, dissatisfaction is spilling out. One Facebook group for reps is reportedly moderated by Avon, with sellers claiming that posts critical of the company are blocked. A separate, public group paints a starker picture, with posts ranging from deflated to furious. One seller described the latest cuts as 'another kick in the teeth', having already stepped down from a senior role. Another said their team had halved over the past year despite regular recruitment. Multiple posters cited shrinking pay, burnout and a decision to walk away altogether. Others detailed the cumulative impact of smaller changes. One source said that over just six months, Avon had removed rewards, raised brochure prices, increased minimum spend thresholds for free delivery, hiked the handling fee, changed the returns credit process, and cut commissions – all without adequate support. That seller has since left the business. Alongside earnings cuts, some sellers say they were hit with unexpected bills due to technical issues over the new year period. One rep has said they had already paid for goods Avon was attempting to bill for and said the matter was in the hands of their solicitor. Avon denied there were any current legal challenges or active cases of this kind against the company. Avon, which was bought by Brazilian parent company Natura in 2019 for around £1.6bn, said: 'Avon has a proud 138-year history of providing flexible earning opportunities to all. 'We have recently changed our commission structure for sales leaders to better reward those who are proactively growing their independent Avon businesses. Representatives are paid commission on the volume of product sales and are rewarded fairly and transparently.'
Yahoo
3 days ago
- Business
- Yahoo
Third of businesses planning further job cuts after national insurance hikes
A third of business owners have said they plan to cut more jobs after being hit by higher national insurance contributions (NICs) in April, according to new research. Many companies have also suggested they will cut back hours, freeze pay and hike prices in order to help cover increased tax payments. S&W's business owners sentiment survey revealed around 20% of those quizzed said they have already reduced their staff numbers as a 'direct result' of the NICs changes which came into effect in April. Last year, Chancellor Rachel Reeves announced in her autumn budget that employers' NICs would rise from 13.8% to 15%, while the threshold at which firms would start paying also increased. The increase came in at the same time as the jump in the national living wage and reduced business rates relief for some firms. The survey found 33% of business owners said they were still planning further cuts to staff numbers after feeling the impact of the tax increase. Firms said they were also looking to a series of other measures in order to offset the jump in their operating costs. The survey of 500 UK business owners with turnovers of £5 million upwards also showed 46% of those surveyed said they were planning further price increases as a result. Meanwhile, 35% of business owners said they planned to reduce staff hours and 29% said they were looking at freezing pay. It comes as firms highlighted higher commodity and energy costs, as well as disruption from wider macroeconomic uncertainty. Claire Burden, partner in consulting at S&W, said: 'Businesses face considerable challenges in the current economic climate and many owners are having to make difficult decisions to stay afloat. 'Given that salaries represent a considerable proportion of the overall cost base for most businesses, it is to be expected that many are looking closely at headcounts in response to the increased national insurance costs.' Alex Simpson, partner in employer solutions at S&W, said: 'For most businesses, the extent of the employers' NIC change was a surprise. 'We anticipated an increase in the employers' rate, but the additional reduction to the earnings threshold was not expected and is expected to have a dramatic impact over time.' A Government spokesman said: 'We are a pro-business government. We are protecting the smallest businesses from the employer national insurance rise, shielding 250,000 retail, hospitality and leisure business properties from paying full business rates and have capped corporation tax. 'We delivered a once-in-a-Parliament budget last year that took necessary decisions on tax to stabilise the public finances, including the NHS which has now seen waiting lists fall five months in a row. 'We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
