Business Funding Blog

At Funderial, we value the partnerships we've built with business owners and recognize the importance of giving back to those who trust us with their growth. To show our appreciation, from now until December 31st, 2024, we're offering four opportunities for you to secure funding and earn extra bonuses as part of the Funderial network.

We believe that strong businesses create stronger communities, if you know someone looking to grow, you can earn up to $5,000 by referring another business owner to us — simply visit funderial.com/referral-center to get started. 

If you’re already a customer, sharing your success story through a testimonial can earn you up to $1,000. We want to celebrate your journey and inspire others together by highlighting your success. Email Joe at renewals@funderial.com and mention the case study reward and we’ll follow up with next steps!. 

We're also encouraging our partners to spread the word about their experiences by using the hashtag #getfunderialfunding on social media and earn $25 per post, up to $75.

As a further gesture of gratitude, we’re offering a $500 Milestone Bonus when you reach your 4th funding round with us. These initiatives are our way of saying thank you for your continued trust and commitment, and to celebrate the growth and success we achieve together. Call us at 855-FUNDING with any questions and claim your rewards today!

Exciting News: Welcoming Our New Creative Director, Kelsea Brunner! 🎨

We’re thrilled to announce that Kelsea Brunner has joined the Funderial family as our new Creative Director! By adding this vital role, Funderial is set to further enhance our mission to educate and enable entrepreneurs to access the best business funding services across the US. Whether it's supporting our in person engagements through our sales and referral agents or online across digital, social, and numerous communication platforms, Kelsea’s expertise will be a game-changer. We’re proud to have such a talented and motivated individual on board!

About Kelsea: She brings her marketing expertise from working with financial, nonprofit, and arts organizations across NYC and the Midwest. Kelsea is also a multimedia artist and published poet with a keen eye for design.

We couldn’t be more excited to have Kelsea join our team and bring her unique vision to Funderial. Here’s to a bright future together, helping America’s entrepreneurs thrive and grow! Welcome aboard, Kelsea!

We are thrilled to announce that Funderial has been recognized as one of 2024's Top 10 Business Loan Services Providers by Financial Services Review magazine. This prestigious award, accepted by our Executive Vice President, Michael Pennartz, is a testament to our nearly 20-year track record of delivering exceptional, five-star, white-glove consultations and funding solutions for business owners. At Funderial, we pride ourselves on offering free quotes for competitive offers across a wide range of financial products, including loans, lines of credit, working capital loans, and more. Our commitment to providing personalized service and expert guidance has earned us the trust of countless businesses nationwide.

Our inclusion in the Top 10 is a reflection of our comprehensive range of offerings and the unparalleled expertise of our sales staff and executive team. We believe that our success is driven by our dedication to understanding the unique needs of each client and delivering tailored financial solutions that empower businesses to thrive. At Funderial, we are not just a loan provider; we are a partner in your business's growth and success, and this recognition only strengthens our resolve to continue delivering the highest level of service and support to our clients.

Read more about this award here: https://www.financialservicesreview.com/funderial

We are thrilled to announce that Dawid Dabrowski, our outstanding sales leader, has been named Employee of the Month for June 2024. Dawid's dedication and exemplary work ethic have set a new benchmark for professionalism and client care. Known for his white-glove, tailored consultations, Dawid has consistently gone above and beyond to assist business owners across the United States. His remarkable efforts culminated in securing 20 new fundings for businesses in May alone, showcasing his relentless commitment to driving success for our clients.

DAWID DABROWSKI

"I chose this charity after adopting 3 rescue cats, every cat needs a nice home."

Originally from Poland, Dawid brings a rich tapestry of interests and passions to his role. Outside of work, he enjoys hiking, reading, fitness, and self-improvement. Dawid adheres to a strictly vegetarian and vegan diet, which he credits for enhancing his mental and physical performance. His lifestyle is a testament to the benefits of healthy living. In recognition of his achievements and to support his values, Funderial has made a donation to Second Chance Rescue, a New York City-based animal center that Dawid holds dear. Learn more about their incredible work by visiting nycsecondchancerescue.org. Funderial extends heartfelt thanks to all customers and colleagues who made May a memorable month!

We are thrilled to announce that Ian Glisson, our Sales Manager, is the Employee of the Month for October 2023! Ian is a role model for all of us here at Funderial and he sets an incredible example with his professionalism, punctuality, work ethic, and personality. Ian is always willing to go the extra mile for his team and our clients. He is incredibly knowledgeable about our products and services, and he is passionate about helping our clients succeed.

Ian is also a great listener, and he is always willing to take the time to understand our clients' needs and concerns. In addition to his strong sales skills, Ian is also a great people person. He can relate to and talk to business owners and associates in New York City and beyond. Ian is always building relationships and networking, and he is always looking for new opportunities to grow our business. Ian is an amazing asset to our team, and we are grateful for his contributions to Funderial. We are proud to recognize him as our Employee of the Month for October 2023!

For Ian’s Charity of choice, Funderial will donate to his family’s very own annual Holiday Season Community Fundraiser, inspired by his grandfather. “It started with our grandfather who grew up in the projects of DC. It was a horrible winter, and he was living with his mother and younger sister at what he would call the one of the worst times of his life. It was Christmas eve and he looked outside and saw a truck pull up and several men jump out. 15 minutes later they were upstairs in the tiny apartment with food and Christmas presents. They did this for years and he credits this to his views on life. Our grandfather was able to give back when he found success later in life and myself, with my brothers and cousins, carry on this act of charity every year through a present collection during the holidays.”

Funderial would like to recognize HR & Financing Director Kate Halyuk as Employee of the month for February 2022! For her charity of choice, Kate has chosen to support Kent Animal Shelter in Calverton, NY and Funderial has donated $350 towards their cause. Kate has an incredible work ethic, positive and constructive attitude and a keen eye for detail. She is a team player and takes a 'company-first' approach to all of her work. Her go-getter mentality and day to day consistency helps make Funderial a great place to work and do business for our customers and colleagues alike.

https://www.kentanimalshelter.com/

We would like to say a big THANKS! and congratulations to Kate for reaching over 6 years of employment with Funderial.

The U.S. government regulations on business mandate companies to abide by Federal, State, Local Legislative, and Regulatory Agencies to protect employees’ rights and control the volume of power and influence that the businesses have in their corporate society.

The legal implications of certain regulations on business are more noticeable than the others, depending on their relevance to the employees and customers in the country.

For example, some business-related regulations monitor the ways in which corporate bodies report income and pay taxes, while other types of regulations ensure that the companies maintain disposal of their waste within the set boundary of the federal laws.

As a matter of fact, the U.S. government regulations take control of every kind of business anywhere in the United States.

Therefore, familiarizing with federal regulations comes in handy to run your business smoothly without infringing any legal implications associated with your business.

What is the best way to knowing the government regulations on businesses?

The first rule of thumb to understand government regulations on business is understanding where to look and what kind of laws you are looking for.

There are so many online reservoirs you can use to find regulatory information related to your particular business.

This blog is highlighting some of the most common business-related regulations enforced by the U.S. government to help you get familiar with the federal laws about how to conduct a business in the country consistent with the legal compliances.

A breakdown of 10 Government Regulations on Business in America

1. Tax Code

IRS (The Internal Revenue Service) has published detailed information about federal tax responsibilities for business owners in the United States.

Know that the government regulation is very much concerned with the tax liability for business owners.

Therefore, be familiar with particular tax liabilities, the deadline for their payment, and how to set up your business to account for future tax payments.

Companies registered within the U.S. are required to pay federal taxes or state taxes, depending on the state in which the business is registered.

Tax evasion or not paying taxes on purpose will account for hefty penalties and potential jail term for the perpetrator business owner.

Does the type of tax I’d pay depends on the kind of business I operate?

Yes.

You are liable to pay the kind of tax based on the type of business you have formed.

Meaning, when it comes to paying a tax, it is regulated based on the type of business you are conducting.

For instance, if you own a sole proprietorship, you will pay your business taxes differently than an incorporated business called S corporation.

Types of tax regulations in business

• Income Tax – This regulation mandates businesses to pay their income tax as they earn and receive income. They have to file an annual tax return.


• Estimated Tax – According to IRS, an estimated tax payment consists of income tax, along with self-employment tax and alternative minimum tax. Responsible parties to pay estimated tax include sole proprietors, partners, and S corporation shareholders, if their tax liability is $1,000 or more when their return is filed.


• Employment Tax – Employment taxes are supposed to be paid by companies having staff on their payroll.


• Excise Tax – According to IRS, an excise tax is imposed on numerous goods, services and activities. These taxes are imposed followed by companies purchasing some specific goods that fall within excise tax regulations.

2. The U.S. Department of Labor (DOL) Laws

More than 180 federal laws come under the ambit of U.S. Department of Labor (DOL). They regulate workplace activities for about 150 million workers and 10 million workplaces.

Visit the website, elaws’ Advisors that lays out detailed overview of DOL Laws, including federal employment laws applicable within your business or organization, and the type of on-site posters you need to hang in your workplace.

See the new guideline of DOL on posting notices for workplaces (remote, and hybrid).

The Department Of Labor Laws regulate wages and hours, workplace safety and health, and worker’s compensation, along with employee benefit security and employee protection, etc.

3. Antitrust Laws

The U.S. government regulations regarding antitrust forbid companies from indulging in unprofessional conducts, such as –

• Conspiring against third-party vendors or competitors.
• Endangering competition in the marketplace.

If the competition is ended, it would result in the monopoly of a single business entity in the market and would pronounce extinction for other businesses relatively weaker on finance and size.

It is the prerogative of the States to enforce additional antitrust regulations if deemed necessary, according to the federal statutes.

Under antitrust laws, some of these business behaviors are not allowed:

• Conspiring to fix prices.
• Deceptive business strategies.
• Establishing dominance or monopoly in the marketplace by killing competition.

4. Advertising Laws

The U.S. government regulations related to advertising mandate companies be truthful and honest in their commercials and refrain from indulging in deceptive tricks and practices.

For example, if you’re going to publish testimonials in your ads, you need to follow additional regulations, like validating the testimonials with genuine proof.

Your business will be penalized for violating these rules.

Under advertising rules, the following marketing aspects are governed –

• Health claims – Companies that market dietary supplements, food, over-the-counter drugs, and other health-related products must substantiate their ad slogans or advertising claims.


• Environmental advertising – Companies must substantiate their claims like “Green Products” with scientific evidence.


• Made in America – Businesses must show the actual number of their products made in America before promoting them with the “Made in America” label.


• Online advertising – Regulations under online advertising mandate companies to maintain transparency and truthful standards on the Internet. The same regulations are applicable on physical marketing like catalogs or mailers.


• Telemarketing – The regulations forbid companies from fraudulent telemarketing calls.

5. Can-Spam Act for Email Marketing

The government regulations associated with email marketing are very similar to those of advertising, requiring companies to comply with separate regulations under the CAN-SPAM Act.

Therefore, if you are using commercial emails for marketing your products or services, the Can-Spam Act allows the intended recipients of your commercials to stop receiving your business emails.

There are hefty penalties for violating the laws.

So, the fundamental purpose of this law is to protect the rights of recipients to opt-out of your commercial emails.

Under the Can-Spam Act -

• A business is advised not to use misleading header information.
• A business should avoid using deceptive subject lines that don’t correctly reflect the content of the message.
• A company must explicitly disclose that the message is an advertisement, not something else. Commercial messages must include correct and valid physical address.
• Mention clearly that the recipients are free to opt-out of receiving future emails from you, with easy-to-understand steps to unsubscribe future emails of your business.
• Once the opt-out request from the recipient is received, ensure it’s processed within 10 business days without charging anything or demanding any personal information from the recipient.
• If your business has hired another company to do email marketing for you, the law still compels to monitor what others are doing on your behalf.

6. Environmental Regulations

According to the U.S. Environmental Protection Agency (EPA), a business must follow environmental standards, depending on the industry in which it operates.

The relevancy of this law is very important for your business if it markets anything claimed as natural, organic, or eco-friendly.

There are several rules and regulations associated with environmental safety that might affect your business, both on the federal and state level.

For instance, if you’re running an automotive repair shop, you must follow regulations related to pollution and waste management.

The website, EPA, provides detailed information for businesses about complying with environmental laws.

7. Privacy Laws

The federal business regulations require companies to protect the privacy of their customers and save and secure their crucial data.

For example, The Children’s Online Privacy Protection Act (COPPA) mandates companies to ask permission from the parents before collecting personal information about their children.

Companies that evaluate the creditworthiness of customers must follow valid procedures when using and disposing of credit reports.

In the U.S., States can impose their own privacy laws on businesses.

For instance, under the California Consumer Privacy Act (CCPA) of 2018, a customer can delete his personal information that a business may collect from him.

8. Licensing & Permits

Depending on industry and location, a business must comply with federal, state or local business licenses, permits or certificates.

For instance, a business selling tobacco or alcohol must renew their sales permits regularly, considering those products are strictly regulated.

There are also special certification and licenses for professional service providers like nurses or plumbers.

9. Insurance

A business is required to purchase workers’ compensation insurance right after hiring its first employee.

Subject to certain conditions, the insurance regulations of the federal government mandate all businesses, except for Texas, to purchase workers’ compensation insurance.

10. Reporting Pay Data

According to Fair Employment And Housing, private companies having more than 100 employees (with at least one employee in California) are required to report how much they pay each of these employees to the Department of Fair Employment and Housing (DFEH) every year.

The purpose of this law is to ensure that companies are maintaining federal “nondiscrimination” laws.

Conclusion

The U.S. government regulations on businesses intend to protect employees’ rights, and ensure environmental preservation, along with mandating companies to be accountable for their power and influence in their corporate society.

For many business owners, there is lot to digest as far as government regulations are concerned.

You can also check in your local SBA office for assistance about business-related regulations.

If you are seeking additional counseling on government regulations on business prevalent in your State, hire a counselor.

Restaurants are often at the receiving end of a bad rap in today’s competitive industry.

Experts believe that most new restaurants in today’s competitive industry don’t survive in their first two years of service.

If that scares you, consider it an OVERSTATEMENT.

Fact is, there are still many successful restauranteurs leading the industry. How come?

While multiple factors account for the success of a restaurant, managing the restaurant finances the right way is one of them.

For example, reviewing a restaurant’s daily business and keeping payroll and inventory under control is one of the ways that fall into the tactics for managing finances for a restaurant effectively.

In this blog, we will review how to manage restaurant finances by highlighting facts, like cash flow, business costs, and other key details.

Understand & manage Cash Flow

Cash flow stands for an inflow versus an outflow of cash in a business, on a daily, weekly, and monthly basis.

Therefore, study the financial metrics of your restaurant to get the current financial health of your business. Make sure your business gets more cash flowing in than out to avoid a financial shortage later.

To better manage cash flow, fill out a cash flow statement for future outlays, like rent, mortgage, utilities, and food orders.

Check if there’s overspending caused by relying too much on credit from suppliers to buy foods. Besides, pay cash up front, as it often gets you a small discount with food distributors.

Analyze the business costs of a restaurant

To open a restaurant requires a certain degree of financial investment.

So, you must be familiar with how much money your restaurant will take to keep it going.

Understanding the business costs of a restaurant is one of the ways to manage your restaurant finances well.

Costs related to raw materials, labor, rent, utilities, equipment rental payments, etc. are the parts of equations you use and the budget you create to handle restaurant finances effectively.

There are two types of costs – Fixed costs, and Variable costs.

Fixed costs remain unchangeable as you do business. These costs are, for example, the rent (unchangeable, no matter the quantity of foods you serve) and payroll (doesn’t change, regardless of the numbers of customers you serve).

Variable costs refer to the costs you can control, such as the cost of your food and your salary.

Manage your restaurant payroll

Similar to cash flow, restaurant payroll is another area of responsibility you should focus on.

Managing your restaurant payroll doesn’t mean running your business understaffed.

Just keep them in numbers so that attending the customers can be managed better.

The problem with overstaffing a restaurant is overspending on the payroll, translating into an expensive business affair.

To avoid it, review your daily business from past years. And yes, cut short on the potential for overtime by laying out a clear policy mandating staff to ask before switching shifts.

Cost of Goods Sold (COGS)

To understand what everything costs to produce and serve to your customers, pay attention to Cost Of Goods Sold, or COGS.

They are direct costs of your business, helping you determine the gross profit of your restaurant business. COGS consists of all the necessary elements, from the food to the labor, to serve your customers.

Therefore, the statement of COGS gives you a real sense of your profit margin for each dish your business serves. Based on the calculation of COGS, you learn to price your restaurant menu, which is another way of managing your restaurant finances.

Other measures to manage restaurant finances

• Know the basics of finance – Understand equations and concepts applicable in financial management. Well, you don’t have to be an accounting genius to do these calculations. Just learn the financial basics. And, if understanding the whole things of financial basics sounds nerve-wracking, consider hiring an accountant.


• Save money – You can save money at your restaurant by investing in energy-efficient appliances and installing low-flow faucets. Besides, keep your inventory low, update your menu with correct food costs, and removing unwanted items that don’t sell.


• Daily business review – Daily business review will help you understand sales trends, payroll costs, customer counts, and predict future sales.


• Have a contingency plan – Be prepared to deal with any eventuality, like emergency costs (say, your boiler goes out of order). Have a business credit card or business line of credit to deal with unforeseeable costs in your business.

The Bottom Line

Effective management of restaurant finances enables a restaurateur to handle the business more efficiently, without risking financial shortage in their business.

This blog provides you with some of the crucial inputs to help you manage your restaurant finances.

CONGRATULATIONS to Angelina Murray for winning the Funderial Employee of the Month Award for September 2021. Aside from being a member of the Operations Team for over 3 years, Angelina consistently provides an unmatched quality of work and level of service to our employees, partners, clients, and customers. Her role in internal operations has helped thousands of businesses receive financing through our platforms and she has shown an exceptional ability to make her colleagues' days easier and more efficient. We are proud and thankful for her hard work!

For her charity of choice Angelina has chosen to contribute to the prestigious https://www.worldwildlife.org/ foundation and our company has donated $250 on her behalf.

IA Merchant Financing or Financing for Merchant is a blanket term denoting financing provided to a business establishment. It is also known as merchant cash advances which broadly refers to any type of financing that requires repayment against the borrowing through a credit card processing system. This type of financing option is sought to cover costs related to business, make investments and survive your business.

Is Merchant Financing purpose-specific funding?

Most lenders mandate Merchant Financing purpose-specific funding for the businesses. For example, the funding must be used to buy inventory, upgrade a business facility, and so on. Therefore, if the purpose of the Merchant Financing is something else other than its prime goal, then your lender will deem such deviation as your contumacy to the contract’s terms.

However, there are no specific restrictions imposed on how you use Merchant Financing. You can use the financing to cover short-term business losses, buy equipment, pay for ad campaigns, implement cutting-edge technology in business, etc.

Is collateral required to secure the Merchant Financing?

Merchant Financing is not like a traditional bank loan mandating borrowers to pledge collateral. Various lenders offer unsecured Merchant Financing that rules out pledging your business or personal assets as collateral to your lender. Moreover, you don’t have to suffer the time-consuming collateral valuation process to get Merchant Financing.

Will the cost of borrowing go up if you delay the scheduled repayment against Merchant Financing?

Consider Merchant Financing a paycheck advance that involves a calculation of a small portion of your daily credit/debit card sales, at the end of each business day. The amount calculated is withdrawn automatically and applied against the funding lent. This enables you to avoid paying a higher total cost of borrowing, even if you prolong the repayment against the financing you have borrowed. The total cost here stays fixed.

How does Merchant Financing work?

The implicit upside of borrowing Merchant Financing is that approval is faster than conventional loans. Once your application is approved, the lump-sum amount is credited to your business account within a few days. Documents to be submitted in this context are proof of your identity, bank and credit card processing statements, and business tax returns.

You will get a maximum of $200,000 merchant funding, to be repaid in a short tenure of 18 months or less. The repayment involves subtracting a certain percentage of sales daily. This eliminates the daily quota from being counted in cash or check sales. You can also execute repayment out of your business bank account through ACH payments.

Remember, there is fluctuating repayment cycle in Merchant Financing. For instance, it will go up when your business is good, and vice versa. Moreover, if your credit card transactions are a solid $0 on any other day, the repayment toward financing is zero.

Key points to secure Merchant Financing

• A credential stating your business has been running for at least a year.
• A document showing a minimum credit score of 500
• Proof of annual business revenue around $50,000
• Credit card processing statements
• Business tax returns
• Bank statements
• Driver’s license
• Voided business check

The benefits of Merchant Financing

• With a low barrier for approval, Merchant Financing is a viable option for business companies to get quick cash.
• The quick and easy application process
• No collateral requirement
• Use the funds as you see fit
• Repay corresponding to your sales volumes
• A good option for businesses with fluctuating sales or who depend on seasonal sales.

The disadvantages of Merchant Financing

• More expensive than other types of financing options available in the market. The cost is based on factor rates that are different from interest rates and with specific repayment periods.
• Creates cash flow problems, as a lion’s share of your future sales goes down paying off the upfront and related costs.
• No benefit of interest savings from early repayment. Unlike traditional amortizing of business loans that yields less interest payment if you do early repayment of the loan borrowed, this one doesn’t afford such benefits.

Conclusion

Merchant Financing is one of the best options if you need quick funding to cover your business expenses. Moreover, no collateral requirement and instant approval of your loan application are certain upsides that motivate borrowers to go for Merchant Financing.

Though it has some downsides, yet depending on the immediacy of fulfilling your business needs, you can go for it. Just ensure not to take it lightly as this is a financial obligation requiring adherence to scheduled repayment.