If you were to bake a business cake, a key ingredient to make it rise, would be capital. And yet, adequate funding to scale operations remains a significant challenge for the 34 million small businesses in the US.1
Meet Bolss, a startup founded through Daniel Taylor, Ignacio Semene and women.
Bags has raised $five million to date, Slauson
Bags supports many different types of businesses, across CPG, services, retail and logistics – many of whom may not be retail bank worthy, but have anywhere from $100K to $30 million in revenue.
In a report published recently in the report, the bags shared that running with a pilot cohort of 240 small businesses in 2024, can see mass expansion measures: approval rates of loans from higher visitors to 4, 5x, with a financial calendar 5x 5x, facilitate an advanced corporation in expansion corporations: 250% in the annual sliding on average.
I spoke with CEO and co-founder Daniel Taylor, about the challenging small business funding landscape and how the Bags platform takes a holistic approach to financial growth.
Most small businesses don’t have the cash flow and/or operating history to qualify for debt from traditional lenders or the SBA, and angel investment and venture capital is a difficult funding path reserved mostly for high-growth, tech companies. Thus, a majority rely on their personal savings and credit cards for capital to fund their business (2023 MetLife and US Chamber Small Business Index).
Taylor demonstrated that “what we’re seeing is that peak corporations start at CreditsSS cards. . . which creates a negative cycle because starting a business on a CreditsSS card and if it starts generating cash flow. . . now your non-public credit score has decreased, making it harder to get a loan. “
He also explained that the rising trend of leveraging merchant cash advances (MCAs) through payment processing platforms like Shopify, PayPal, Square and Stripe can be harmful for business growth. These platforms will qualify businesses for a loan quickly, and repayments are based on a percentage of daily sales – usually 10 – 20%, with higher rates reserved for riskier businesses. Unfortunately, these daily sweeps can cut into profit margins, making it dangerous for businesses who experience a drop in sales volume or an increase in cost of goods sold, or COGS (and thus lower margins).
Some business owners are forced to withdraw more MCA, only for canopy for the initial MCA deficit. There is an attractive Reddit forum committed to this total topic: “The fall of my business: why I regret having taken MCA loans. ” Explained Taylor, “explained. ” What kills many corporations that are intelligent corporations is when they remove a MCA and a moment and a third, and the next thing they know, 35% of their profits per month is used to pay that MCA. “
In addition, MCA providers file a UCC on assets of the business, which securitizes the loan by giving them a priority lien on the business assets. This is essentially a scarlet letter for other traditional lenders who often refuse to fund businesses with MCAs.
And so, ironically, the busier routes to capital for many early-stage small businesses prevent them from accessing affordable loans as they grow and mature.
BAGS is a SAAS platform on subscription that operates in close collaboration with corporations on the aspect of monetary control and accounting, for them greater money management flows so that they can be more eligible for loans with loans with lenders on their platform. As a component of its monetary board, the corporate also offers concepts of CFO Point and reports per month promoted through AI for housing owners to evaluate the functionality of the corporate, compared to old finances and references of the industry.
On the lending side, they offer a diversity of loan products in amounts ranging from $10,000 to $30 million, which are run with conscientiously approved partners, adding personal credit, network progression monetary establishments or CDFIs, community banks, and tweezers. CDFIs are project-oriented lenders, funded through the federal government, that target unprecedented communities and corporations that would not possibly be eligible for classic financing and can provide low-interest loans, ranging from four to 6% APR.
Beyond interest rates, Taylor explained that “we read about loan documentation, we read on its typical terms, adding alliances, we read about what is needed to be approved, then we decided that it is a product that is torque or greater That a product that we have lately.
Taylor emphasized that “there are a lot of predatory products that are out there” and believes Bags has a critical role to play in helping to protect small businesses from those types of products.
Exchanges grant subscriptions, starting at $280/month with development titles, depending on the length of the company and the monetary checkpoint required.
To learn more, visit www.securebags.com.
FN1: The Small Business Administration (SBA) generally defines a small business by firm revenue (ranging from $1 million to $40 million), and/or by employment (from 100 to over 1,500 employees), with the criteria dependent on the specific industry.
FN2: BAGS was founded with a project to women and companies that belong to minorities, and serve the business owners of all demographic and diverse stories.
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