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Tips to Choose the Perfect Business Loan for Your Business

If you needs the capital to turn your brilliant idea into a long-running business, looking for a loan to expand, it can be difficult to choose between the various business loans available in the market.

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Tips to Choose the Perfect Business Loan for Your Business

If you’re a startup that needs the capital to turn your brilliant idea into a long-running business, looking for a loan to expand, it can be difficult to choose between the various business loans available in the market.

Many business owners stick to just looking for the lowest interest rates, under the assumption that this minimizes their liabilities. Some will be forced to look for loans with none or low collateral. But there are many options to consider!

Recommended: How to use the first business loan effectively?

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Business owners aren’t necessarily accountants or savvy with banks and non-bank lending. So, here are some tips to get you started on your way to finding the perfect business loan to build your business on.

What is a Loan?

A loan is any amount of money that’s given to you under the assumption that you will pay it back. If it’s from your dad, then it might be a zero-interest and indefinite term loan: you only pay what he gave you regardless of inflation, and he won’t take you to court if it takes you thirty years to pay it back.

On the other end of the spectrum, you might be taking a loan from a loan-shark who charges monthly interest.

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Most people will stick to bank loans for their legitimate purposes and do their best to provide the collateral or assurances required by banks. There are actually a range of other legitimate options that can be taken if a bank loan isn’t suitable for you.

Things to Figure Out Before You Start Applying for a Business Loan

There are five things you should know before you even start looking at business loans! These questions will require you to take a hard and honest look at yourself and your own business, and it might be easier to do it

  1. How much loan do you need? Can you afford to sell equity or take on partners rather than a loan? What will it change in terms of your business? If you intend to furnish all your prospective costs through a loan, then how soon do you think you will break even?
  1. What is the term you’re looking at? Are you in a fast-moving business and you intend to pay off all your costs in a decade? Or are you in the sort of business where you keep on leveraging your credit until you’re retiring or selling off your business?
  1. What interest rate can you afford? A combination of the interest rate on your loan and the term of your loan will show you what the real cost of your loan is over the full loan period. You might then prefer not to apply for a business loan and look at other options.
  1. Do you have any collateral? Many business loans will require hard collateral, often machinery, or physical property that can be repossessed in case you cannot complete your payments. Even if you have collateral, are you willing to risk it?
  1. What is your creditworthiness? It’s easy nowadays to get free or low-cost credit reports! Your bank or non-banking finance organization will check your credit score before offering you the loan. Frequently, a slightly low credit report will lead to a higher interest rate. You can wait and ask experts on how to improve your creditworthiness, so check your credit report before you apply.

Tips for Choosing the Right Business Loans

When you’re identifying business loans, what aspects should you look at before you apply for the business loan?

You should definitely do a comparative study on a number of points before finally making the right choice.

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Tip 1: EMI Calculations

Check what your EMI will actually be per month or per year, and what it adds up to over the full term of the loan. For unsecured loans, the interest rate is typically higher (to make up for the higher risk faced by the lender), and the EMIs are correspondingly higher.

Tip 2: Bow to Expertise

This is probably the first business loan you are applying for, and it’s also probable that it won’t be the last. But there are accountants, lawyers, and business management experts who have done this for a hundred other businesses and can spot pitfalls you wouldn’t know until five years later. It is a worthwhile investment to ask an expert.

Tip 3: Repayment Schedules & Terms and Conditions

Check your ability to pay your business loan back early without a fine, to change your repayment schedule and find out whether your EMI will be unsustainable over the long term.

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Tip 4: Flexibility

Look at options such as equipment financing or cash advances for shipments. These are also broadly in the business loans category but are not always clear to businesspeople who have not had previous experience with getting financing.

Tip 5: Lender Check

Even if you’re applying for a large national bank and you feel that you’re already sure about your lender, you should always check their past performance in the business loan category. For non-bank options or small lenders, and so on, this verification becomes even more important. If you have an agent or broker, ensure that they are also trustworthy.

Tip 6: Paperwork

Ensure that your business’ paperwork is absolutely clear. There should be no doubts about any of the licences, previous accounts, rental accounts or ownership of buildings or equipment, etc. If your paperwork isn’t absolutely clear, then your business loan will inevitably be delayed.

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Lines of Credit and Other Options

Along with applying for a business loan, from banks or otherwise, you can also consider credit options. In many cases, what a business needs is not a singular large loan but the ability to support itself when the liquid funds are not available. In this case, a business credit card can be a suitable option.

For business people who are aware of the option but prefer to use business loans, these are the things you should keep in mind while doing your research before you apply for a business loan.

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World

Hims & Hers CEO Andrew Dudum Says Wants to Hire Student Protesters Backlash Underway

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Hims & Hers CEO Andrew Dudum Says Wants Hire Student Protesters Backlash Underway

Andrew Dudum, CEO and founder of Telemedicine Company Hims & Hers is facing flak on the social media after his reported statement that he wants to hire students and protestors who are taking part in the protest in support of Palestinians in Universities across the US.

A number of tech sector founders has also condemned his statements.

Dudum had posted on X,

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“If you’re currently protesting against the genocide of the Palestinian people and for your university’s divestment from Israel, keep going. It’s working. There are plenty of companies and CEOs eager to hire you, regardless of university discipline.”

He also posted a link to a page showing open positions at Hims & Hers.

X users have expressed their disapproval and have even called for a boycott Hims & Hers, and others said they are selling their stock in the company.

Cofounder of Palantir Technologies as well as the managing partner of early stage venture capital firm 8VC Joe Lonsdale responded on X and said

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“Real moral courage doesn’t involve joining a mindless mob, chanting anti   U.S. and other woke pablum, following instructions not to debate or discuss your positions at all yet being indignantly righteous, while large numbers in the mob chant for violence and block Jewish students.”

While Hims & Hers spokesperson said Dudum were not available for comments, old posts by Dudum have been unearthed which puts in context his actions. Days before the horrific attack by Hamas’ terrorist against Israel on October 7, Dudum had posted –

 “In pursuit for peace: Our leaders need to embrace nuance.”

Dudum further explained that he is a Palestinian American and had roots in and family in the West Bank and Gaza and said Hims & Hers’ values are based on a respect for human dignity and life.

Dudum wrote

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“It is upon those values that I believe all leaders and CEOs should use their platform today to call for an immediate cease   fire. To actively recognize Israel’s right to defense and also recognize the means and manner in which they are responding violates international law. I ask us to find nuance, and share our voice today to help save innocent lives.”

Deadly protests have hit U.S. college campuses through last month and protest encampments have sprung across more than 40 colleges nationwide.

Police crackdown is on and there have been more than 1,900 arrests or detainments following a wave of activism at universities across the country.

Hims & Hers is a Telemedicine Company that links consumers with licensed healthcare professionals, enabling access to high-quality care for conditions related to sexual health, mental health, and more. It also offers its own range of products and is in a partnership with Los Angeles-based Hustle & Co. on media relations.

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Also Read: Brazil Dam Collapse Amid Heavy Rainfall and Flood; Watch Video Here

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World

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

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More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Trouble for Microsoft and OpenAI over copyright infringement is not coming to an end, as they face several lawsuits for violating copyrights.

On Tuesday, eight US newspaper publishers sued Microsoft for illegally reusing articles in AI products.

The 98-page long lawsuit further accused the tech companies of attributing erroneous information to the publishers.

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The eight newspapers that have filed the lawsuits include the New York Daily News and the Chicago Tribune.

They allege that OpenAI’s ChatGPT used their copyrighted articles to perfect its language models without permission.

The lawsuit was filed in a New York federal court on Tuesday. The publishers claim that OpenAI’s large language models, GPT-2 and GPT-3, were perfected using datasets containing text from their newspapers.

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The language models are designed to produce text based on human inputs and reproduce copies of the publishers’ works. Microsoft has been indicted for using newspapers for its Bing search index but seldom provided links to the original articles. Four months ago, The New York Times also filed a lawsuit against OpenAI, accusing the tech giant of using data from its past content. It also asked for consent for usage, criticizing the use of full article excerpts in chatbot responses.

The latest lawsuit filed by the eight news outlets also demanded consent and fair value for using their content to perfect the AI language models. The lawsuit alleged that the AI tools literally regurgitate their content without directing users to the content source.

The lawsuit filings stated, “This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot.”

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The eight newspapers that instituted the lawsuits are as follows:

  • The New York Daily News and The Chicago Tribune, both owned by Alden Global Capital
  • The Orlando Sentinel
  • The Sun Sentinel
  • The San Jose Mercury News
  • The Denver Post
  • The Orange County Register
  • The St. Paul Pioneer Press

OpenAI’s Response

OpenAI did not directly respond to the accusations but stated that it takes great care to support the news and media outlets. It also stated it is in continuous partnerships and conversations with various news outlets around the world to explore new opportunities, discuss problems, and seek out solutions.

Microsoft also stated that OpenAI has entered into fruitful partnerships with a number of publishers, which includes The Financial Times, The Associated Press, Spanish conglomerate Prisa Media, and Germany’s Axel Springer.

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Net Worth

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

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Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Who is Alan Patricof?

Alan Patricof is a prominent figure in the American investment landscape, renowned for his contributions to venture capital. With a career spanning over four decades, Patricof has been instrumental in shaping the growth of numerous global companies, including America Online, Apple Computer, and Audible. His legacy extends beyond business, with involvement in community organizations and government initiatives.

Alan Patricof Career

Alan Patricof’s career in venture capital began in the industry’s early days. He founded Patricof & Co. Ventures Inc., a precursor to Apax Partners, one of the world’s leading private equity firms. Later, he established Greycroft Partners, focusing on early and expansion-stage investments in digital media. Throughout his career, Patricof’s vision and leadership have played a pivotal role in advancing the venture capital field.

Alan Patricof’s Net Worth

As of May 3, 2024, Alan Patricof’s estimated net worth stands at over $1 million. His wealth is derived from various investments, including holdings in Boston Properties Inc. and successful ventures in digital media. Despite humble beginnings, Patricof’s entrepreneurial spirit and strategic acumen have propelled him to financial success.

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Alan Patricof Age

Born in 1934, Alan Patricof is currently in his late eighties. Despite his advanced age, he remains active in the business world, leveraging his wealth of experience to mentor emerging entrepreneurs and drive innovation.

Alan Patricof Family: Wife and Children

Alan Patricof has been married to his wife Susan for over 48 years. Together, they have three children and seven grandchildren. Family holds great importance to Patricof, and he credits his upbringing and heritage for shaping his values and work ethic.

Alan Patricof Height and Weight

While specific details about Alan Patricof’s height and weight are not readily available, his stature in the investment community is undeniable. Patricof’s impact transcends physical measurements, as he continues to leave a lasting legacy in venture capital and philanthropy.

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Also Read: Mike Markkula Net Worth 2024: How Much is the Former CEO of Apple Worth?

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