Month: January 2019

5 Components to a Self-Employed Benefits Package



When you’re self-employed, you get perks that many traditional employees miss: Unlimited vacation and sick days, flex time, tax deductions, and perhaps the ability to work from any location. These are just a few upsides of being your own boss.

Whether you have a part-time side gig or run a small business full-time, enjoying the entrepreneur lifestyle may be a huge reason you want to work for yourself. But a major downside to all this freedom is not getting a cushy benefits package, which most employers offer.

In this post, you’ll learn how to create your own self-employed benefits program, which is probably easier than you think.

1. Individual Health Insurance


If you’ve made the leap from a corporate job to being self-employed, the first benefit you’re likely to miss is health insurance. Group plans cost much less than an individual policy; plus, your employer may have subsidized all or some of your premium.

If you have a spouse or domestic partner with group health benefits, you can become a dependent on his or her policy. But if you’re single or have a partner who’s also self-employed, start shopping.

Depending on your income and family size, you may be eligible for a subsidy that reduces the cost of coverage. If you have low income, you may qualify for free or low-cost coverage from Medicaid or the Children’s Health Insurance Program (CHIP).

One option to reduce the cost of health insurance is to choose a high-deductible plan. These allow you to make contributions to a health saving account (HSA), which you can spend tax-free on many different qualified medical expenses.

2. Health Savings Account (HSA)


With many types of insurance policies, a strategy to cut premiums and save money is to raise your deductible. A deductible is the amount you must pay first before your benefits kick in.

If you’re in relatively good health, a high-deductible plan can make sense. But the downside is that if you do get sick, you’ll have to pay more out-of-pocket before your payouts for covered claims begin.

When you choose a high-deductible health plan, not only do you pay lower premiums, but you’re also allowed to contribute to a health savings account (HSA). You can have an HSA if you get your qualified plan on the open market as an individual, or through a group plan at work.

Contributions to an HSA are deductible on your tax return, which reduces your tax liability, even if you don’t itemize deductions. Your funds can earn interest or be invested for potential growth. And when you take distributions to pay for qualified medical expenses—such as doctor co-pays, prescriptions, eyeglasses, and supplies—your contributions and earnings are completely tax-free.

3. Term Life Insurance Policy

The good news is that if you’re in relatively good health, finding affordable life insurance is probably easier and less expensive than you think.

First, consider if you need a life policy. If anyone depends on you or would be hurt financially if you weren’t around, such as children, a spouse, partner, or aging parents, you need life insurance. There are different types, such as term life and permanent life, depending on your financial goals.

  • Term life insurance provides a benefit upon the death of the policy owner for a set period, such as 10 or 20 years. Many people prefer term insurance because it’s inexpensive and gives you the most benefit for the dollar.
  • Permanent life insurance includes a variety of products such as whole life, universal life, and variable life. I won’t get into the details on each of those, but they provide a death benefit and an investment all wrapped up in one. They’re also called permanent life policies because you get lifetime coverage.

Life insurance coverage is more affordable than most people think. For example, if you’re in your 30s with relatively good health, your premium for a 20-year, $500,000 term policy would be about $200 per year. You can shop and compare term life quotes at sites like Haven Life, Liberty Mutual, and USAA.

4. Disability Insurance

Did you know that you’re more likely to suffer a disability than you are to die before the age of 65? And when a long-term disability occurs, the average absence from work is 2½ years. Remember that health insurance only pays a portion of your medical bills; it doesn’t pay your living expenses, like housing or food, if you can’t earn money for an extended period. A disability policy pays a percentage of your gross income, such as 60% or 70%, if you can’t work due to a disability, illness, or accident.

Not being well enough to work could cause a major financial strain for you or family members who depend on your income. Social Security is only available after you’ve been out of work for a year and are completely disabled.

If you’re self-employed, you can elect to pay state disability premiums, which may be less expensive than a private policy. Shop both options to find coverage that makes sense for your work and financial situation. Check out companies including MetLife and State Farm.

5. Contribute to a Tax-advantaged Retirement Account

Another essential benefit you’ll need to handle on your own after becoming self-employed is contributing to a retirement account. There are great options to invest for the future, even when you don’t have a traditional day job with a 401k.

There are great options to invest for the future, even when you don’t have a traditional day job with a 401k. Here are four different types of tax-advantaged retirement accounts to consider when you work for yourself.

1. Traditional IRA (Individual Retirement Arrangement).

2. Roth IRA

3. SEP-IRA

4. Solo 401K

Thinking About Starting Your Own Business?

Being your own boss is an exciting jump to make, but when entering into that adventure, you’ll find that there is much preparation to be done. One of the biggest obstacles new business owners find themselves up against is funding. Where will you get the money to purchase your equipment? How will you purchase or rent a space? How will you hire your marketing specialist? Or pay for advertisements? Fortunately, many new business owners qualify for Business Loans or No-Doc Loans. If you’re ready to dive into your new business, give us a call to see what size loans you qualify for. There’s nothing more exciting to us, than helping out new business owners to achieve their vision!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

How to Create a Business Through Drop Shipping

Do you need a college degree to start a business?

What is Drop Shipping?

Drop shipping is essentially the process of selling goods from a third party platform, to your customers. The third party business will take care of the production and shipping for you, which reduces your overhead costs.

What can you drop ship?

Pretty much anything. These days, if you can dream it, you can create an online store around it. Instagram is littered with little shops with intriguing collections curated to fit their branding. For example, clothing and accessories are the most common types of businesses who sell items from a third party business to their customers.

What kind of business should I start?

It’s a really fun process, dreaming up the different ways you can sell from a third party business. If you have a tendency to be hands-on and creative, then there are hundreds of platforms that will allow you to create designs and then have them implemented onto t-shirts, hoodies, coffee mugs, tote bags and so on. The third party business will take care of the printing, shipping and even the customer service for you! This will remove a lot of the stress from your plate, and allow you to focus on imaging designs to fit your brand. Start with the type of concept you want for your brand, what your voice will be as a business. Do you want to make a statement? Will it be political? Centered around music? Do you want to appeal to kids or adults? Once you choose the direction or theme for your business, you can begin to pour your creative talents into innovative designs.

If you would rather curate a collection, choose a platform like Alibaba and again, choose a theme. Their options are endless! Would you like to sell home goods? Cookware? Sports equipment? You name it, they probably have a large variety for you to pick and choose for your website or social media store.

What is the cost?

Starting with the basics, you will want to prepare for your average small business costs, such as equipment. Will you be needing a computer to design your work? Will you need programs such as Adobe to create your designs? You will also need a platform for your customers to purchase from, so creating a dynamic and functional website is a must. Many third party sites will also allow you to create a store within their platform, so if you are not able to create your own branded website, that will suffice.

Consider the cost of hiring potential employees to help with the workload, such as design creation or website development. If these are things that you are not comfortable enough to implement yourself, you will need to factor in the cost of outsourcing that work. Aside from these things, you will most likely not need to hire many people, if any,

Finally, your biggest cost will be marketing. You are essentially taking the products from another company and marketing them in alignment with your brand. Using Paid Ads, such as Google AdWords and Facebook or Instagram Ads will increase your audience exposure. You will also need to research and develop target audiences to market the products to. If this is something that you do not have much experience or you just don’t feel like learning it, you may need to look into hiring a social media or ad specialist to help set up your ads.

What if I don’t have enough money to get started?

The amazing thing about these types of small businesses, is that if you are motivated enough, you can start the business will little-to-no cost. On the other hand, if you need assistance and must turn to outsourcing for some of the set up, or if you want to go full throttle into the paid ads, then you can look at acquiring Small Business Loans or Start-Up Loans. The possibilities are endless, so determine what will be the best fit for you!

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

4 Tips From Your Personal Finances that Apply to Your Small Business

Business Finances - Small Business Loans - Start-Up Loans - Unsecured Loans

Watching your dreams transform into reality in the form of your new business is quite an amazing thing to experience. However, in the beginning stages, it can be a challenge to launch your business off the ground financially, depending on the capital you already have.

Of course, you may be looking for some great funding options for your business, in the form of a Small Business Loan or a Start-Up Loan. However, before you venture into borrowing investment funds, take a look at your financial situation and make sure you are set up for success in the best way possible. We have some basic tips that you may already be familiar with in regards to your personal finances, but it is important to make certain that you are integrating these principles into your business’ financial strategy.

  • Create a Fantastic Budget

Don’t just create a satisfactory budget, dig deep and really detail out your plan. Managing finances can be incredibly intimidating for a new business owner, but that is why you need a plan, and your budget is just that. Not only will this budget allow you to scrutinize your monthly income and expenditure, but you can also be financially prepared to tackle unforeseen events such as unanticipated expenses or investment opportunities.

You can simultaneously manage your personal and business expenditure by following these steps:

  • Work on your business expenditure: This mainly includes everything from rent, payroll, and office supplies to the interests on loan that you pay off every month.
  • Work on your taxes: You must always determine the tax rate. If not, then you’re likely to find yourself in trouble with the law and of course it’s a situation we will avoid being in at all costs. It is in your best interest to either hire an accountant who knows about the constantly changing laws and rates, or get yourself well-versed with the taxes.
  • Work on your revenue: Once you have figured out the taxes and operating expenses, the remaining amount is considered  “net profit.” From this point, you can make a decision of giving yourself a fixed income, which can be budgeted easily.
  • Enhance Your Credit Rating

Time and time again, we see references to credit ratings and credit scores. There is good reason for all that attention – your credit rating is responsible for whether or not you can receive additional funding for your personal or business finances. With a bad credit rating, you may end up paying high amounts in interest, or worst-case scenario, you will be denied access to business loans. There are a number of ways to enhance your credit rating, mainly including paying bills in a timely manner, and keeping debt as low as possible. You can also reach out to a number of agencies who specialize in raising your credit score.

  • Set Up an Emergency Fund

Once you begin to develop and open your business, you will find that many unforeseen circumstances will arise and demand your immediate attention. Equipment breaks down, contracts fall through, staff become sick… you never know what will be around the bend. That is why you should always plan ahead and prepare for the unexpected. Within your business financial plan, as you would with your own personal finances, you should always have a system in place for setting aside an emergency fund. Whether you use an app to automatically withdraw a small amount from your account, or if you prefer the old fashioned method of stuffing bills in a sock – find a method that is best suited for building that emergency fund.

  • Trim Down the “Debt-to-Income” Ratio

Many consider your debt-to-income ratio as a means of measuring personal finance, where you compare the debt that you already have to your overall revenue. Loan providers will determine your ability to handle and repay funding by this ratio. If you are not sure what your ratio is, you can calculate it by simply dividing the sum total of your recurring debt by the monthly revenue.

The two basic methods of trimming your debt-to-income ratio are; reducing the recurring monthly debt and raising the monthly revenue. Of course, this can also present some challenges, but taking the time to assess your spending will give you the opportunity to search for alternatives in your spending. For instance, if you are in need of an office space, you can look at renting a space instead of buying one. If you are already renting, you can look for more affordable options.  

Business Finances - Small Business Loans - Start-Up Loans - Unsecured Loans

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

Do You Need a College Degree to Start a Business?

Do you need a college degree to start a business - Business startup - Entrepreneurs - Small Business Loans - Start-Up Loans

So you have this brilliant idea for a business. You may have gone as far as mapping out your business plan, gathering your best networking contacts, and have looked into Small Business Loans. There are many classes to take, YouTube and other online webinars, and maybe you even registered to learn all you could about running a business. I mean, maybe that’s why you’re taking a peek at this blog! The big question remains, “Do I need a college degree to start this business?”.

This debate has been going on for quite a long time, whether entrepreneurs need college degrees to succeed, or whether the time and money spent earning that diploma is better spent launching your business. With college costs and student debt skyrocketing, the newest consideration is whether student debt is preventing would-be entrepreneurs from starting a business.

Drowning in Student Debt

Let’s take a look at the numbers. A recent study shows that a person who graduates with $30,000 in student loans is 11% less likely to start a business than a person who graduates with no student debt.  $30,000 is nearly the average student debt load. As of 2018, 42 million students have a debt amount of $100,000 or less, with most of these borrowers between $10,000 and $25,000. That’s quite a bit of cash!

The best time in your life to start a business has been considered your 20s and 30s. At this point in life, most people do not yet have a mortgage to pay, children to raise, or a spouse to consider in the equation. However, individuals in their 20s and 30s are likely to have looming student debt payments, unlike Generation Xers or baby boomers.

With good solid job opportunities being difficult to find, the young adults today are stuck between a rock and a hard place. Ironically, with more college-level entrepreneurship courses and entrepreneurship degrees than ever, getting a college degree could seem even more helpful for starting a business.

Startup or School?

The choice is different for every person, and highly depends on their circumstances, target industry, personality and so on. If you are looking to become your own boss and deciding whether you should enroll for a degree, consider these factors:

  • What is your Business Concept?

If your sights are set on a business in the professional services industry, you may need to get a specialized degree in your field. However, there are some types of businesses that only require an apprenticeship program and work experience – such as carpenters.

  • What education alternatives do you have?

We live in a very advantageous time, where online education is a click away. From YouTube tutorials to Ted Talks, Lynda and various professional webinars and online workshops, you have many options outside of the traditional college setting – depending on your industry of course.  

  • What other advantages would you get from college?

Don’t be so quick to cross a college education off your list. First examine what opportunities you would glean from college that you wouldn’t have access to otherwise. This includes Professors – amazing resources and networking contacts to have in your book. Peers in similar industries, as networking contacts and moral support. Along with specialized learning materials, the contacts you make in college are some of the best reasons to invest your time and funds into a college.

  • What is your financial situation?

Think about how much money you have available, whether you have capital for either college or a startup and calculate the numbers. Take into account your existing financial obligations and create a picture of your financial state – present and potential. Not only are there loans available for education, but also for Start-Ups and Small Businesses. Maybe in your financial situation, you will find that the best bet for you is a No-Doc Loan? We have many options to help you explore, if that is your case.

  • Is now the best time?

We know that you are excited to start your new business, but don’t be afraid to consider the timing. Some businesses are best launched by a younger person; for others, you need a bit more life experience. Perhaps this is one reason entrepreneurs in their 20s are less likely than older business owners to build high-growth companies, according to a paper Age and High-Growth Entrepreneurship. Would waiting to start your business benefit it in the long run?

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

5 Financial Goals that Every Business Must Have in 2019

5 Financial Business Goals for 2019

At this time of year, businesses are experiencing that “crunch time” where setting the expectations for the new year are important for their roadmap to success. Have you started your planning? Are you a new business owner who is finding it difficult to determine how to structure your financial goals for 2019?

Whether it is personal or business, you should always have financial goals. From savings to investment, finance deals with the idea of having a set of goals to achieve a set target. Financial goals are important both for your short-term needs and long-term aspirations. However, not many realize or understand what these goals should be. Let’s go through some very basic financial goals that will help to improve your financial success in 2019.

1. Big Picture Vs. Details

Essentially, this is micro and the macro. Both of these are important to take into account for your financial strategy and it is important to have goals for them both. These goals help to clarify the direction you are going and reduces confusion. Financial goals can be micro in nature – or very short term. On the other hand, it is important to have macro financial goals that look at long-term objectives of the business – strategy for increasing revenue and margins, as well as cutting costs.

These micro and macro goals should align with your mission statement, and ultimately help to support the growth of your business towards your vision. For example, if the mission statement is to “deliver quality paper products to every household”, the business should be structured in a way that quality paper products are indeed delivered.

2. Control Your Costs

One thing that you are financially in control of as a business, is cost. When your operating expenses are higher than your revenue, you are suffering from a “negative cash flow”. For obvious reasons, the goal should be to find methods that keep you from “burning money” and contribute to a positive cash flow. An excellent habit to form as a business owner is to be constantly evaluating your operating expenses and finding ways to reduce operating expenses. Depending on your business, you can check specifically on unproductive production practices, high cost of shipping, rentals and even employee salaries.

3. Debt Servicing

With any Business Loans that you may have, your business will have debt. It is vital that you service all your debt regularly and pay the amount due every month, quarter or year – as the case may be. If you let interest pile up on debt that has not been repaid, it can quickly become a source of major financial problem. Also, as the case with individual debt, not servicing it on time can impact the credit rating of your business. This is crucial for when it comes time to take out another Business Loan, as good standing will not only improve the chances of receiving new loans, but will also affect your interest rates.

4. Manage Cash Flow

One of the most important goals of your business should be to properly manage your cash flow. For newer business owners, this may be confused with “profit”, but they are quite different. Cash flow is entirely about the amount of money coming into your business versus what is leaving your business in terms of payments. If your business is bringing in more money than is leaving it, you are termed as “cash flow positive”. When you are buying and managing inventory, paying suppliers and employee salaries, these are examples of money leaving your business. Ensure that the proper procedures and inventory management systems are in place to help control your cash flow.

5. Increasing Your Margin

When you are properly managing your cash flow, it is much easier to reach your goal of being profitable as a business. The next step after reining in your cash flow, is to continuously look for ways to increase your margin. This can be accomplished by increasing product or service pricing – though you must first look at your industry market and competitor pricing to see how you are best able to adjust your price points. If you must find other avenues to increase your profit margin, than you can look to negotiate lower costs with suppliers.

Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.

Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584

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