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  • Need a Business Loan? Compare the Top Online Lenders

    Wednesday, September 7, 2016 by

    Need a Business Loan

    If you’re a small business owner and you need an infusion of capital to grow your company, an online lender option could be the best fit.

    Unlike traditional banks, online lenders don’t use extensive applications requiring years of tax returns. By answering a few basic questions and linking your business accounts, you can get access to thousands of dollars in cash in just a few days, or in some cases, just a few minutes.

    There are lots of online lenders out there, and each has its own way of doing business. Some online lenders may be better suited to your needs than others.

     

    Kabbage

    Kabbage offers qualified businesses access to lines of credit up to $100,000.Through their quick application process, Kabbage reviews your business accounts (business checking, PayPal, Square, QuickBooks) to get a full picture of your business.

    Rather than repeatedly applying for a loan every time you need extra capital, you withdraw from a line of credit as needed. For instance, you might be approved for up to $50,000, but only draw $5,000 to cover the payroll of two new part-time employees for a month. A few months later, you could borrow another $2,000 to do an emergency inventory restock.

    The funds are always available, and they're accessible online or right from your phone using Kabbage’s mobile app. 

    Each time you borrow against that line of credit, you get between six months and one year to pay it back. Rather than charging interest, Kabbage assesses a monthly fee, between 1 and 12% of your total principal, when you qualify.

    While there are no prepayment penalties, a borrower doesn’t save much by paying the loan off early, since the highest fees are paid in the first two months.

    Pros: Ease of use; generous borrowing standards even for businesses without an extensive credit history, plus you can find out if you qualify in just a few minutes. For a limited time, HostGator is giving away a $100 Amazon* gift card to those who qualify.

    Cons: High fees in the first couple of months; shorter loan terms.

     

    PayPal Working Capital

    PayPal Working Capital is ideal for businesses that already process their sales through PayPal. Once you confirm your data with PayPal, it uses your sales history to determine your creditworthiness and the total loan amount you qualify for. Like Kabbage, it takes only a few minutes, and applicants get a decision quickly.

    PayPal Working Capital differs from Kabbage in several ways:

    • They offer set loans, rather than access to a line of credit. Total loan amounts vary, but are capped at a percentage (usually 15%) of a business’s yearly sales, with a maximum of $85,000.
    • Instead of paying the loan back on a monthly basis, PayPal takes a certain percentage of your sales each day. If you have no sales, then no fees are deducted.
    • You can only apply for another loan once a previous loan is paid off. With Kabbage, you have access to a line of credit, and each withdrawal is considered a separate loan in terms of its repayment schedule.
    • Rather than assessing a monthly fee, PayPal Working Capital charges a set fee for the entire loan, calculated based on the loan amount, your repayment percentage, and your PayPal sales history. The higher your repayment percentage (i.e., the amount of your daily sales PPWC takes), the lower your fee.
    • While repayment is based on daily sales, every 90 days a minimum payment is due. If their cut of your sales over that 90-day period doesn’t equal at least 10% of your total loan amount (the loan itself plus the fixed loan fee), then you’ll have to pay the difference.

    PayPal Working Capital is great for someone who’s already using PayPal to process their payments, and who needs a bit more flexibility when it comes to repayment.

    Pros: Repayment based on sales, rather than on time. Seamless integration with existing PayPal sales data.

    Cons: Only available to businesses that use PayPal to process transactions; borrowers must reapply for each additional loan, and can’t take out another loan until the previous one has been repaid.

     

    LendingTree

    LendingTree is a peer-to-peer lender, though many of its so-called “peers” are really institutional lenders — like banks or mortgage companies. It acts as a marketplace where prospective borrowers enter some basic information, and lenders then compete for their loan. LendingTree isn’t solely in the small business space, and it offers personal loans, mortgages, and auto loans, among others.

    It also offers four different types of business loans: long-term loans, short-term loans, business lines of credit, and alternative financing (including cash advances and startup financing). All of these loan types have different requirements, different repayment periods, and different interest rates. Unlike many other online lenders, some LendingTree loans require a credit score, and even collateral. They do, however, offer much bigger loans than either Kabbage or PayPal Working Capital, and are thus more suitable for businesses looking to fund serious capital projects. These larger loans also have longer terms.

    Since LendingTree acts primarily as a marketplace, a sort of matchmaker between borrowers and lenders, there’s less uniformity and more complexity. The application process has been streamlined, and borrowers should hear back within a few days’ time. But LendingTree lacks the simplicity of either Kabbage or PayPal Working Capital.

    Pros: Lots of options, large loan amounts, and competitive rates from different lenders.

    Cons: Some major loans require collateral and use your personal credit score to determine your level of risk, which can eliminate businesses whose owners have a checkered credit history, even if their business is doing well. Many LendingTree loans require a personal guarantee, which makes the business owner personally liable for the loan should the business go under.

     

    Every small business is unique and has different financing needs. Before committing to an online lender, be sure to consider what’s most important to you, whether that be flexible repayment plans or easy access to funds.

    We hope this overview helped you decide on a lender for your small business loan. Remember, for a limited time, HostGator is giving away a $100 Amazon* gift card to those who qualify for Kabbage.

    *Customer will receive a $100 Amazon gift card upon submitting a qualified application to Kabbage by 11:59pm EST September 29, 2016 through the link provided in this post. The gift card promotion is being run by Endurance International Group. Gift cards will be delivered to qualified customers electronically October 29, 2016. Amazon is a trademark of Amazon Technologies, Inc. Amazon is in no way affiliated with or a sponsor of this promotion.
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  • Airbnb, Uber — Now: The Rise of Online Lending

    Tuesday, August 23, 2016 by

    Online Lending

    Cash flow. It’s the #1 priority for any business owner.

    We can (and should) talk about passion, leadership, and full-stack/content/social marketing, but at the end of the day (and Shark Tank’s Mr. Wonderful would concur), cash is king.

    In the past, if you needed a loan for your business, you had to go to a bank. You had to dress up in your best suit, provide a ton of records, and go through an arduous application process.

    And after all that, there was no guarantee you'd be approved. It was stressful, tedious, and frustrating. Now there’s a faster, easier way to get the funding your small business needs. In a sense, it's an Uber for lending.

     

    Wait, There’s an Uber for Borrowing Funds?

    With online lending, you not only don’t have to go to a bank to get a loan, you don’t even need to leave your house! Instead of putting on your best suit, you can apply for a loan in your footie pajamas. (We don’t judge.) And your chances of approval are based on the health of your business rather than just your personal credit score.

     

    How Does Online Lending Work?

    Online lending lets you apply for a small business loan in just a few minutes with a few keystrokes (or taps on your phone). You’ll be spared the long wait to see if you’ve been approved, as most applicants hear back within minutes to just a couple of days. You could have access to the money your business needs as soon as the same day.

    Online lending has exploded in the last decade as nimble upstarts, armed with the insights of data and unburdened by the capital requirements of traditional banks, aim to disrupt lending the same way Uber has disrupted transportation and Airbnb has given hotels a run for their money.

     

    But What’s Wrong with Traditional Banks?

    Following the financial crisis, many risk-shy banks seriously cut back on their small business loans. Regulations designed to rein in the excesses of the subprime mortgage bubble further contributed to the crunch. According to Biz2Credit, only about 17% of small business loan applications are approved by big banks.

    That’s less than a one-in-five shot for any business owner needing an infusion of cash.

     

    Online Lenders Save Small Businesses

    Enter online lending, which, as an industry, has doubled in size every year since 2010. By 2014, it accounted for more than $12 billion in loans. While that’s just a growing slice of the lending pie, these new lenders are eager to expand to serve increasing numbers of customers.

    The loans (and lines of credit) given out by these companies can range from as little as $2,000 to as much as $100,000 and beyond. The terms of the loans can range from six months to several years. Interest rates vary, and some companies, like Kabbage, don’t charge interest in the traditional sense; rather, they assess a monthly fee, usually a small percentage of your principal, when you qualify.

    The application and approval process is also different for online lenders. Rather than require stacks of financial records, they review your business accounts, like PayPal QuickBooks, or a business checking account. They use technology to analyze your cash flow and give you a decision in just minutes. 

    Like with any source of funding, there are risks to online lending: Any business should be careful to invest funds in things that will provide a return and should only borrow what they can pay back. But used wisely, they can be an indispensable tool as you build your business from the ground up.

    Find out how much working capital you qualify for at Kabbage. HostGator is currently giving away $100 Amazon* gift cards to those with approved applications.

     

    *Customer will receive a $100 Amazon gift card upon submitting a qualified application to Kabbage by 11:59pm EST September 6, 2016 through the link provided in this post. The gift card promotion is being run by Endurance International Group. Gift cards will be delivered to qualified customers electronically October 6, 2016. Amazon is a trademark of Amazon Technologies, Inc. Amazon is in no way affiliated with or a sponsor of this promotion.

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  • Support Austin Pets Alive with HostGator!

    Thursday, July 7, 2016 by
    Austin Pets Alive Did you know July 16th is Love Your Rescue Pet Day? HostGator has been a long-time sponsor of local pet rescue organization Austin Pets Alive! (if you love cute puppies, be sure to check out this post). We are so excited to be a part of this year's fourth annual Love Your Rescue Pet Day, which benefits Austin Pets Alive! At HostGator, we're all about supporting local businesses and helping them get online. We also happen to love puppies, and so does our mascot Snappy. If you don't believe us, just check out the clip below:

    What is Love Your Rescue Pet Day?

    Love Your Rescue Pet Day is an Austin, TX-wide fundraising event that celebrates the love Austinites have for their rescue pets. Austin has been a no-kill city for 5 years now, and Austin Pets Alive! (APA!) plays a big role in keeping that trend alive. On Love Your Rescue Pet Day, local businesses show their support by donating 10% of the day's sales back to APA! You can find the full list of participating businesses here. HostGator's Austin office is the proud sponsor of the day's official adoption event at Town Lake Animal Center. Austin Pets Alive! has hundreds of adorable dogs and cats waiting to meet you. Don't miss out on the chance to cuddle with furry friends and find your new FURever friend!

    Support Austin Pets Alive with HostGator!

    If you stop by on Saturday, be sure to say "hi" to one of our Austin team members! Our trusty mascot Snappy will be there, and he'll be handing out exclusive gator-shaped treats for all the new dog owners. The homemade treats are baked right here in the U.S. and are sold by local Austin business, Grand Dog Bakery. The day is set to be a fun- and fur-filled event! Happy new pet owners will get the chance to post with their pet and Snappy. During your Snappy meet-and-greet, our team will be asking you all sorts of questions like, "What's your new pet's name?" or "How'd you guys meet?" or "Let's say your pet had a website. What would it be about?" Admittedly, the last question is kind of kooky, but we ARE a web hosting company, after all. Inquiring minds want to know! If you won't be able to make the event, we still want to hear from you! Share your rescue pet's story in the comments below and let us know what kind of website she or he would have. You can email me a photo at awillson@hostgator.com. We'll choose our favorites to highlight on HostGator's social media channels. See you on July 16th! 7/18/16 Update: Love Your Rescue Pet Day was a success! Austin Pets Alive reported 41 adoptions for the day. Congratulations to all of the new pet owners! Snappy was so happy to share delicious dog treats with his new furry friends. Snappy Austin Pets Alive HostGator Free Dog Treats
  • Introducing Cloud Hosting from HostGator

    Wednesday, January 13, 2016 by
    cloud hosting Here at HostGator, the word “unlimited” just expanded in scope. In keeping with our goal to always provide the best service and products in the industry, it is with great pleasure that we now introduce our new cloud hosting platform. We are able to offer our customers increased reliability, scalability and performance while still giving them full access to the cPanel features they know and love, in the cloud! Built on pooled compute and storage resources with features that allow us to respond quickly and easily to any hardware issues that arise, our cloud platform also includes a fully-redundant storage array with three copies of your data mirrored to ensure optimum data integrity. Our new cloud platform natively integrates automatic caching of static content to ensure lightning-fast page load speeds. If more compute resources are needed to serve up the dynamic content, a click of a button can scale up to 8 cores and 8GB RAM via the Server Performance Dashboard. This is up to 4x more than what some competitors offers. In addition, customers now have access to an Intuitive Performance Dashboard which provides real time metrics on page download speed, server uptime, visitor information, and resource utilization.
    HostGator Cloud SitesCloud Sites At HostGator.com
      Enjoy easy resource scaling with the click of a button: Scaling Resources at HostGator   Our new cloud packages include all of the features of our classic Baby, Hatchling and Business plans, with the additional benefits outlined above. Transferring from Shared to Cloud is a snap; simply contact our team to assist with the transfer after the order is purchased. Ready to launch your site in the cloud? Learn more about the individual cloud hosting plans below:  

    Hatchling Cloud

    Allows you to host a single domain, while maintaining the unlimited sub and park domain capabilities enjoyed by the classed Shared Hatchling. Dual core CPU unit and 2 GB of RAM are available, with unmetered bandwidth and unmetered storage.

    Baby Cloud

    Hosting for unlimited domains, along with an increase in CPU (up to quad core), and 4 GB of RAM. Bandwidth and storage are both unmetered.

    Business Cloud

    Maintains the unlimited domains, addon domains and parked domains, while increasing the CPU up to 6 cores, with 6 GB of RAM. A private SSL is also included for eCommerce purposes. All of the plans include fully integrated local caching. We're very pleased to be launching your websites into the cloud! If you have any questions about the new product, please feel free to contact us at any time.

    Get Started in the Cloud!

  • Get Working Capital To Grow Your Business

    Wednesday, December 9, 2015 by
    kabbage

    We all know that it takes money to make money. Kabbage is a company that specializes in providing your business with working capital, in the form of a line of credit up to $100,000.

    The application process is painless and only takes a couple of minutes. Forbes named Kabbage One Of The Top 100 Most Promising Companies Of 2015, and HostGator is proud to now partner with them in order to assist our customers in acquiring the funds to help grow their businesses.

    Your real-time business data (as opposed to just your credit score) is used to determine the amount for which you are qualified, subject to Kabbage’s terms and conditions, and then you can simply take what you need and only pay for what you take. The funds can be bank-transferred, or instantly transferred via PayPal. A monthly payment plan is then used to return the funds.

    To learn more about Kabbage, watch this video. Or get started now.

     
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