Connect with us

Business Finance

Able: World’s first collaborative lender knocks our socks off

Small business lending is often stacked in favor of the lender, but Able appears hellbent on changing the model and flipping it upside down.

Published

on

able lending

able lending

Able Lending is a creative, impressive platform

Small businesses provide half of America’s jobs, and produce trillions of dollars in revenue each year. In no uncertain terms, small businesses like yours are the bread and butter of the American economy. And yet, it is more difficult than ever to get the loans from banks. Alternative lenders are thriving as the small businesses that drive much of the US economy continue to seek sources of capital to grow.

bar
Able Lending is such an alternative lender offering a unique style of “collaborative credit.” Borrowers are asked to find three to five backers – generally friends, family, or fans who believe in the vision of their business – who agree to collectively fund at least 25 percent of your total loan.

Able loans the remaining 75 percent, as well as taking care of all of the legal paperwork, managing your monthly payments, collecting payments from your backers, and repaying your friends and family with interest.

There is a new way

Based in Austin, a veritable hotbed of startup and small business activity, Able seeks to empower the “Fortune Five Million” because they understand the importance of small businesses. The company states, “Right when you’ve been serving customers and serving communities, banks stopped believing in you and no longer lend you money. We all know that capital is your life blood. It’s how you grow and tell the story of your business. But now there is a new way.”

Able believes that if you can find a few backers willing to fund you partially, it shows that you and your closest collaborators truly believe in the business. By asking you to find some of your own backers, Able is also able to offer lower interest rates than most alternative lenders and banks.

What types of loans are available, how the process works

Loans are available from $25,000 to $500,000 with interest rates starting at eight percent, and loan contracts from one to five years. To qualify, your business must be at least six months old (most banks require one year) and must generate an annual revenue of at least $50,000. Most banks and other alternative lenders require businesses to be at least a year old with much higher revenues. Able is also looking for small businesses “strong growth prospects, passionate leadership, and supportive customers.”

The process of getting a loan from Able is relatively simple. You create a short profile about your business, connect it with your social media accounts, and find three to five backers. Within 24 hours, Able will contact you for more information. Able reviews your financials and completes a credit check, and will notify you within three days if you’ve been approved for a loan.

Finally, a win-win in a win-less financial world

Collaborative credit seems like a win-win situation for everyone involved. You get your loan at a reduced interest rate, and your backers get to support a business they believe in while also earning interest. Several Austin startups, such as Capital Factory, Rose & Fitzgerald, Chi’lantro, and Branch Basics, have funded their businesses through Able’s unique collaborative credit loans.

#AbleLending

Ellen Vessels, a Staff Writer at The American Genius, is respected for their wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when not writing, and has a passion for sustainability, social justice, and the arts.

Business Finance

Why product liability insurance is critical for companies

(BUSINESS FINANCE) The best way to protect your company, and more importantly your customers, is product liability insurance. It keeps your standards up, and lawsuits down.

Published

on

product liability insurance

If your small business manufactures products, you need to think about product liability insurance. No matter how good your designs are, or how polished your quality assurance strategy is, there’s a chance one of your products could come to harm a customer. And if that happens, your customer could contact a personal injury attorney and bring a case against you. Personal injury cases are somewhat common, and could cost you hundreds of thousands, if not millions of dollars if you’re not protected.

Product liability insurance coverage could protect you in the event of such a case. But what exactly is it, how does it work, and how are you supposed to get it?

The Basics of Product Liability Coverage

Let’s start with a high-level overview of product liability insurance. While different carriers and different policies will afford you different types and levels of protection, most product liability coverage is designed to shield your business from the fallout of a company-produced product that causes injury or harm to third parties.

Product liability insurance typically covers the legal fees associated with any product liability lawsuit, as well as medical costs, compensatory damages, and business damages that arise from the incident.

How Products Can Fail

How does a business become liable for a harmful product?

There are four main ways consumers can be harmed:

• Design flaws. If your product is designed in some flawed way, and the consumer gets hurt because of it, they could have a case against you. For example, if you create a deep fryer product with a locking mechanism to prevent burns, but that locking mechanism is weak or easily overridden, a customer could get burned as a result of using the product.

• Manufacturing flaws. There could also be manufacturing flaws. The design itself might be practically perfect, but if a batch of products are made with an incorrect material, or aren’t made to specifications, they could still fail in a way that harms a consumer; for example, a skateboard with a loose wheel might cause someone to fall.

• Marketing flaws. Your product could also be marketed or advertised in a way that eventually leads to consumer harm. If you falsely advertise the capabilities of your product, and a consumer follows them and hurts themselves in the process, they could hypothetically sue you. The same is true if you claim there are no downsides to a product that has downsides.

• Misuse. Even if a consumer misuses your product, your company may still be held at fault. For example, if you don’t specifically warn a customer that misuse could lead to harm, and caution them against specific forms of misuse, they could ultimately bring a case against you.

As you can see, there are many ways your products could lead to a customer getting hurt—and some of them are hard to see coming. While you can implement safeguards at every stage of the process, there’s always going to be a chance that one of your products fails in some unseen, unpredictable way.

The Extent of Damages

You may wonder if you truly need product liability insurance. After all, in the unlikely event that a product fails, you may be able to cover the costs yourself. However, this is extremely risky. The costs of a single product liability case can be devastating, and if you face a class-action lawsuit, or multiple lawsuits, there may be no chance of recovery. Remember, you could be responsible not only for compensating the customer for their injury and their pain and suffering, but also for covering the legal fees of both sides.

Some cases can cost millions, or even tens of millions of dollars.

Product Liability Insurance Rates

Most product liability insurance policies require you to pay a monthly, or other type of regular premium for your coverage. These rates will vary based on a number of factors, including the size of your business, the type of product you’re manufacturing, the extent of your distribution, and how much coverage you desire. Some insurance companies may also want to conduct inspections, reviewing the design and manufacturing of your product firsthand so they have a better sense of your safety standards.

Still, product liability insurance rates are typically reasonable. Shop around for the right insurance provider, and consider bundling your product liability insurance policy with other policies to lower your rates even further.

Conclusion

If your business designs or manufacturers products, product liability insurance is a practical must. It’s easy to get a policy, and most policies are relatively inexpensive, but this safety net could save you from shelling out millions as a result of an unforeseen product flaw. No matter how safe your operations are, or how many supervisory checks you conduct, there’s always going to be a chance that someone is injured while using your product—and that’s when your policy will kick in.

Continue Reading

Business Finance

Small metros may have cheaper homes, but they might not have the jobs

(BUSINESS NEWS) Study by Indeed finds that small to mid-sized metros offer higher adjusted salaries, but don’t pack your bags just yet because your job may not be there

Published

on

small metros cheaper house

When I told my parents how much my partner and I would be paying for rent at our new apartment, they quickly pointed out that I could purchase a home for that kind of money in my hometown.

Indeed recently published a study where they determined which cities have the highest salaries after accounting for the cost of living, an adjusted salary. Every city on the list is a small or mid-sized metro area which is why they dubbed their findings, “the small-city advantage.” No surprise to me, my hometown made the list.

My parents are right, I could literally buy a home for the amount of money I pay in rent every month to live in a large metro area. But the equation that determines where I, and many other workers should live, is more complex than salary minus housing.

Indeed’s study also shows that bigger metros have faster job growth and lower unemployment compared to these small to mid-sized metros. This is why the number one city on their list, Brownsville-Harlingen, TX, also has a higher unemployment rate than the national average. Some of the other cities on the list are Fort Smith, AR-OK, Toledo, OH, Laredo, TX, and Rockford, IL.

These areas are cheaper to live in, in part, because they may not offer the kind of job opportunities, and therefore social mobility, you see in larger metro areas. Sure, I could make my money go further in my hometown, but the chances of me finding a job in my industry there are smaller.

Your field of work does matter when considering whether or not the “small-city advantage” could work for you. If you work in tech or finance, two traditionally high-paying fields, then this advantage doesn’t apply.

“Before adjusting for living costs, typical technology salaries are 27% higher in two-million-plus metros than metros with fewer than 250,000 people. Even after adjusting for those costs, tech salaries are still 5% higher in the largest metros than in the smallest ones,” finds Indeed.

If a huge tech company offering thousands of high-paying jobs moved into a city like Brownsville-Harlingen, TX, over time it would get more expensive to live there. This is why people were freaking out so much when Amazon was trying to decide where to locate HQ2. It’s the hamster wheel that is currently driving income inequality in some of America’s largest major metro areas.

Finding the right place to call home is never going to be a single factor decision. Yes, salary is a huge factor, as is the cost of living, but there are also lifestyle factors to consider. What kind of opportunities would you have in this city? How much will it cost to move there? How will this effect the other members of your household?

It’s nice to play the ‘ditch the corporate world and buy a country house’ fantasy after a long day at work, but the reality is far more complex.

Continue Reading

Business Finance

Catch is a must-have finance management app for freelancers

(BUSINESS FINANCE) Catch is a new app that allows freelancers and people without benefits to determine their best options, with great automatic features.

Published

on

catch finance

Working as a freelancer is something that just meshes well with my personality. I love having the ability to take on a variety of different projects and work in different facets of the communication industry.

Unfortunately, my one semester of high school economics did not fully prepare me for the financial aspect of freelancing. Figuring out what to deduct, how to do 1099 taxes, and properly save in general was something I’ve had to learn as I go.

However, as I always say, in this day and age, there is someone out there who has a solution to your problem.

Such is the case with Catch, which is a tool that is perfect for freelancers as it helps with automated tax withholding, health insurance, and the other head-scratchers in between.

After signing up, you build a plan by using custom recommendations to get the benefits that will help you the most. Catch will tell you about the coverage you need, whether you work for yourself, a boss, or multiple bosses.

All of your benefits will be put into one place and will be ready when you are. You’ll be able to see your savings grow the more you work and use Catch. As time goes on, Catch will offer suggestions to help you prepare for the future.

From there, you can set aside money automatically. After getting paid, Catch confirms your benefits plan and will automatically put money away for taxes, time off, and retirement.

All of this helps to rid yourself of freelance financial blind spots, and Catch’s official Guide allows you to see a personal screenshot of the full benefits landscape. In addition to seeing all of your coverage at a glance, you’re also able to learn what coverage you need and why, sign up for new benefits in minutes, and easily report existing benefits.

Additionally, you’re able to see a people-centric view of your plan on the platform by adding in spouses, dependents, beneficiaries, and trusted contacts. With this information in place, you’re able to choose the plan that works best for you; allowing you to edit as needed, check savings instantly, and view full paycheck and contribution history.

And as your life evolves, Catch is there to help with the transition. The platform offers recommendations for how benefits and coverage can change with things like: job relocation, getting married, starting a family, or starting a new job.

As Catch says, it’s “peace of mind at the palm of your hand.” This is definitely something for freelancers to consider as part of their financial strategy.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!