Statoscope on the clip board, doctor hands typing on the laptop

Tools to Help Automate Independent Medical Practices

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If you’re an independent medical practitioner, it may seem antithetical to want to automate various systems in your practice. After all, the one big advantage you have over those large healthcare networks is that, since you’re independent, you can offer more personalized care to long-time patients.

Using tools to help automate various aspects of your practice, however, can relieve you of a lot of tedious paperwork and free you up to spend more time with your patients and make your practice run more efficiently. If you haven’t looked into automating certain systems yet, there are easy, inexpensive software tools available to help you. 

Some of the areas you may want to automate are:

#1 Automated Patient Intake Forms

Typically, patients new to your practice must fill out a lengthy intake form on their first visit, which usually includes their personal information, medical history and insurance information. Patients often do not fill out the form completely, leaving gaps in the patient’s history that will take up valuable office time to fill. You may ask your patients to fill them out at home, but sometimes they will forget to bring them.

Automated patient intake software, such as PatientPop, can save you time and effort as a medical practitioner.

The best solution for this is to utilize automated patient intake software such as PatientPop, which offers the most popular medical practice software, or Klara. These are relatively inexpensive software packages that will enable your patients to complete new patient intake forms and provide insurance information at their convenience on their computers or portable mobile devices. This software will allow you to review your new patient’s information before the patient arrives at your office, making your practice more efficient.

#2 Automated Appointment and Reminders Notices

Scheduling and reminding patients of their appointments can be an all day task for your assistant, and having to constantly leave voicemails for your patients is simply inefficient. Text messages are the new way to remind people, especially tech-savvy millennials and Gen Z, of their appointments, and this automation can drastically reduce no shows. Automating this function can make your practice more time-efficient as it will ensure there are no gaps in your day due to unfilled appointments because patients simply forgot to come in. Inexpensive, HIPAA-compliant medical scheduling software such as SimplePractice, Experian Healthcare Patient Scheduling or Vagaro can be a useful tool to manage appointments and waitlists.

#3 Automated Billing System

Software such as AdvancedMD can help make your billing system easier.

Managing patient billing through a spreadsheet or, worse yet, on paper, is time consuming and prone to mistakes, which could be very costly to your practice. Consider automating your billing system with popular, low-cost medical billing software such CureMD, EpiCare or AdvancedMD. Billing software automatically sends invoices to patients, keeps track of patient payments and sends out late notices when a payment is overdue. 

#4 Automated Patient Charts

As a physician, you want to spend the day focusing on patient care, and not spending hours manually typing updates to your patient charts. Automated patient chart software such as NextGen Healthcare, RXNT or Kareo Clinical would allow you to quickly update patient information computers, smartphones and tablets and link it automatically to cloud software, thus freeing up more time for you, the doctor.

#5 Automated Patient Interaction 

Automated patient interaction would allow your patients to schedule or change appointments, request prescription refills or leave messages to ask follow up questions after appointments. Not only does this improve the efficiency of your practice, it also helps improve patient satisfaction by giving patients a quick and easy way to interface with your practice. The same system can be set up to send appointment reminders and follow up instructions to patients. Some of the most popular automated patient engagement software are from companies such as SR Health, Well and Luma Health. 

#6 Automated Personalized Messages

As a physician, dentist or mental health provider, can you actually remember the birthdays of your patients, or when it’s time for them to receive wellness checkups or to remind them to take the necessary steps to ensure their good health? If the answer to those questions is no, then you should consider software such as Segment, BlueShift or Unboxing that can automate that process for you. The benefits from automating this function are quite clear: your patients will feel like they are getting individual attention, thus improving patient satisfaction, and you don’t have to be bogged down by manually sending personalized messages. 

All-in-all, while purchasing and setting up automation software will be an additional cost for your practice, it can also be a blessing, as automating certain functions will increase patient satisfaction (which can, in turn, increase the positive reviews of your services). It will also make your office run much more efficiently, thus freeing up time to do what you do best – taking care of your patients.

Woman smiling working on her laptop, dollar bills flying around her.

What Kind of Website Do I Need, Are Websites Worth It

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Now that you’ve decided to build a website for your small business – congratulations. Your company will receive more visibility, better branding, and eventually more sales.

Before you build your site however, there are several questions you’ll need to answer in order to to determine if you should build a site through a low cost, do-it-yourself website platforms such as Wix, SQUARESPACE or GoDaddy, or make the significant investment in building your own robust website:

  • What products are you looking to sell on your site, and how do you plan on selling them?
  • Are you selling subscriptions? Will the purpose of your site be to make appointments for people to come into your brick and mortar business to buy products or services? 
  • Are you seeking to sell products directly through your websites via online payments?
  • Do you plan to feature industry content or a blog on your site?
  • How will your site stand Apart From Competitors?
  • What Actions Do You Want Site Visitors to Take?

What Should Your Site Accomplish?

Now that you’ve answered those questions, you essentially have two choices: You can use a DIY website platform, which does have its advantages – most of them charge a low monthly fee; provide an easy-to-use website template, and provide web security and basic analytics. This may be the best option to choose if you’re simply looking to expand your presence and just check off the “web presence” box for your business. 

For example, if you’re an independent restaurant owner who wants visitors to use your site to make reservations, or a car dealership owner who wants your site visitors to make appointments for test drives of your vehicles, then a DIY site may be the best choice for you.

DIY platforms do have their drawbacks, though. Almost all of them charge additional fees if you look to add features to your site, and many of them will ask for a large percentage of your revenue if you are seeking to use your site for direct sales. Additionally, the web template that you choose may be being used by other customers, so your website may not look unique.

If you want your website to do more, however, such as accommodate direct sales of your products, offer sales or discounts, or generate industry buzz through a blog page, then building your own website is probably the best bet for you. 

Be warned, however: while building your own site will be well worth the effort from a sales and marketing standpoint, it will be a long, arduous, and expensive process, and one that will require you to first analyze whether it will be worth the money to do so. 

Figuring Out if it’s Worth it

Now the question becomes: based on your wishlist for a website, is building a site worth the money? The answer to this question is paramount in deciding whether to invest capital into building your own site. The process of answering this question is also a bit complicated and may require you to hire an outside web consulting firm to assist you. 

The first thing to do is to figure out the cost of building a website. A basic laundry list of things you will likely need to spend money on in order to create your own site can include:

Do some research to find out the fees of website consulting firms and the market price for a web designer/programmer, if you choose to hire those. In order to house your website and make it available to the public via the world wide web, you can either purchase your own server – the machine that will house your site and may cost upwards of $1,000 – or hire a website hosting platform such as Bluehost or HostGator for a low monthly fee to house your website for you. 

There are many advantages to using a web hosting service – you won’t have to pony up the cash for your own server, and they provide web security for your site. Keep in mind, however, that a hosting platform will charge you the monthly fee for as long as your business’ website exists (which could be up to $60 per year), and there could be add-on charges if you look to make changes to your site.

In addition to hosting costs, leasing an original domain name through services such as GoDaddy, Domain.com or Name.com can cost anywhere between $20 to $50 per year, on average; and purchasing a domain name outright could cost you thousands of dollars.

Other costs to consider: If you do not have expertise in building a website, you may want to hire an experienced web designer/programmer to help you. Hiring an outside firm or an internal employee to do this may be expensive but making a mistake in building your site could be even costlier. Also, you will need a payment processing app to enable your customers to purchase items from your site. Apps such as Merchant One, Clover or ProMerchant will enable them to do that.

Estimating Your Site’s future Revenue

Now that you have an idea of the cost, the next thing you should do is have your website consulting firm assist you in creating a general, one-year projection of revenue for your site, since the process can be complicated. Some lenders may ask for this if you look for financing to build your site.

Of course, we all know that a general calculation of ROI is income minus cost divided by cost, but how do you calculate that if you don’t know what the actual revenue of your site will be? 

While it is impossible to calculate exactly what the revenue will be, you can make a rough estimation by examining the benchmark for similar-sized companies in your industry. The web consulting firm you hire should have data on this, or you can use an online tool called Similarweb, which tracks that. You can also use a web service called Unbounce, which can give you a benchmark conversion rate – the percentage of visitors of an ecommerce site who end up becoming customers. 

“This way, you’ll have an idea of what to expect in terms of revenue,” said Lucie Loubet, director of digital marketing at web design firm DesignWare. “Just remember to look at the paid vs. organic traffic breakdown in Similarweb to understand how much additional money you will have to invest in customer acquisition.”

Dawid Zimney, product manager at web consulting agency NerdCow, added “Your web agency needs to know your conversion rate, your market and your audience. They need to benchmark this against the historical improvements of the conversion rate on their clients’ websites.”

Another marketing term to know is customer lifetime value (CLV) – the estimated value of a return customer. For example, if you own a restaurant and you see certain customers coming back because they love your food, or a retail clothing store and you see customers returning for the service, you can calculate the average amount they spend per visit and multiply that by the number of times they visit your business. 

The website firm you hire can help you estimate the percentage of customers who will become repeat customers, as well calculate their CLV.

Final Calculation

Nikita Chen, founder and CEO of item authentication firm LegitRails, said the final step in calculating your website’s future ROI is to multiply the number of estimated customers with the CLV, and then determine whether that number is greater than the cost of building the website. The web marketing firm you hire should help you with that. 

“If the number is higher, you are in profit, and it is, therefore, a good idea to create the website,” she said. “If the number is lower (which could be the case if you’re running excessive ads) it might not be in your best interest. The figure you come up with at this stage will also determine your ROI,” said Chen.

Financing Options to Pay for Your Site

If you’ve realized that your needs require you to build a custom website but you don’t have the cash on hand to pay for it, that’s okay. There are several financing options you can choose from. 

A business line of credit may be a good option for you since building a website will not be a one-off expenditure. A business line of credit – much like a personal credit card – will give you the flexibility to spend as you go along in the process of building your site, and you will only be charged interest on what you borrow. You can also pay it down as you go along.

If you’ve predetermined a budget for building your site and plan to stick to it, then a business loan may be right for you. If you go to a traditional lender, they may ask you for a business plan or projected ROI on your website. Alternative lenders such as Kapitus will generally just ask to see your company’s revenue history and approve you for financing more quickly than a traditional lender.

Test Your Site First

Now that you’ve decided to go ahead with your site, you should have your web designer/programmer build a test site, typically referred to as a beta site. Pick the top functionality of your site, have your programmer design and build it, and release it online. The beta site should be a limited release of your website with the goal of gauging audience reaction a nd finding bugs before the final release of your site. 

The site is usually opened up to a limited number of users, such as employees of your company or friends or family. The idea of the beta site is to listen to their feedback and use that to make improvements or adjustments to your final website. 

Next Up

“If you build it, they will come…”

Now that you’ve done the calculations and figured out that building your own site is worth it, how do you build a site that is visually appealing, user friendly and will generate additional sales? In the next article, we will discuss what your site should look like to make that happen.

Doctor typing on his tablet, wears a statoscope.

Why Building A Healthcare Branding Strategy Is Crucial For Your Medical Practice

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As an independent healthcare practitioner, 100% of your focus is, of course, on providing your patients with excellent, personable care. 

While you are taking care of your patients, however, how will new patients learn who you are or what makes you special as a practitioner? In other words, if you’re not focused on the healthcare branding for your practice, how do you expect it to survive going forward? Given that the COVID-19 pandemic is not yet over and the Delta variant is on the rise, how will you convey your expertise to current and potential patients on how to best protect themselves and get vaccinated? 

“Independent practitioners typically need healthcare branding the most, yet they are historically the least likely to engage in it,” said Mark Macias, founder of New York-based MACIAS PR, a  public relations firm specializing in healthcare. “More than likely, I suspect it’s because they don’t have the time to devote to this side of the business practice.”

What is Healthcare Branding?

Essentially, healthcare branding is the message that your practice delivers to new and existing patients telling them what differentiates your practice from others. Without this message, new patients won’t have a reason to choose you as their medical practitioner. Web-based testimonials and media interviews, for example, can help spread your message and showcase you as an expert in your field.

“Healthcare branding is a type of marketing approach that gets your product and services directly in front of patients,” said Macias. “It doesn’t matter if you’re selling a service directly to patients or providers, creating a brand is critical to business growth. Without it, patients have no way of finding you.”

Fabiana Melendez Ruiz, a senior publicist at Austin, Texas-based marketing and branding firm Zilker Media added, “Healthcare branding is essentially the same as any other kind of branding. You want to OWN your image so have a website that delves into what you, as a practitioner, can offer in addition to your practice.”

Why Do You Need Healthcare Branding?

Essentially, you need branding so that existing patients keep coming back and new patients have a reason to choose you over other doctors. 

A critical component in branding for your practice is having a web presence, say healthcare PR professionals, as most consumers will initially search online when they need a doctor. It is important that your practice has a robust, user friendly website, and that your site will appear in searches. 

“Here’s why you can’t overlook healthcare branding and digital marketing,” said Macias. “If you’re a patient and need to see a specific physician or dentist, you’re probably going to search online for help. Gone are the days when you ask a neighbor or friend for a reference. 

“Instead, most of us go to Google or another favorite search engine. If you don’t appear in that search engine, your brand effectively doesn’t exist. That is why it’s so crucial to engage in healthcare branding, and digital marketing. You need to make sure the name of your company appears in front of patients as they are looking for a physician or other healthcare practitioner.”

What are the Components of Healthcare Branding?

Macias said that media interviews, a blog and promoting your practice on social media are crucial elements in differentiating your practice from competitors. Additionally, public service announcements (PSAs), especially surrounding the pandemic, are especially important in letting your patients know that you are on top of the current trends in medicine.

“There are many aspects to building a brand on the web,” said Macias. “Today, you can build a brand much faster on the web. Gone are the days when you would publish an advertisement in the local newspaper or monthly magazine and hope the ads would deliver new phone calls. Today, you can get in front of patients and consumers who are directly researching services that you provide by leveraging the media, blogs, editorials and social media.”

Ruiz said that healthcare branding should consist of a website “that includes a media-friendly bio for the practitioner that offers credentialing information, a list of services, a media page with any earned media and a PR contact and then a general contact page with ways patients can reach the practitioner.

“For medical professionals it is important to stick to facts, but the delivery may be different. As a marketer I always recommend a blog to drive SEO to the website, but other practitioners may be more interested in Instagram and Tik Tok so they may include a feed that updates when they upload to these sites.”

How do I Execute a Healthcare Branding Strategy?

Both Macias and Ruize agree that there are several steps to executing a successful branding strategy, but they all center around storytelling. What is the story of your practice? What makes it unique? Why should patients choose your practice over others?

“This is where healthcare branding gets a little more nuanced,” said Macias. “The initial step for me involves story telling. What is your story and why are you the best healthcare practitioner in your space? It might sound like bragging, but it’s not. 

“Healthcare is a cluttered space and to gain media traction, you need to understand how you are different from others. What is your specialty that should drive patients to you? That should be a component of any healthcare branding campaign. 

“Location also matters. If you want to drive patients to your physical office, that requires a different approach than a practitioner who can work virtually or remotely with patients. But at the root, storytelling is the key to any successful healthcare branding campaign.”

While branding may not be at the forefront of your priorities as a healthcare practitioner, a strong branding campaign is important to your survival. It is critical for your current and potential patients to know and understand what makes you the best doctor for them, and what makes your practice special. Not engaging in healthcare branding could very well leave your practice in critical condition down the road.

How Do Small Business Owners Build Their Websites?

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So you’ve decided to take your small business to the next level by building a website – you should congratulate yourself for taking the leap into the Internet. Whether you’re a small business with 200 employees and several different offices, or you’re an independent retail business or restaurant owner, you are about to expand your customer base and company brand to web browsers around the world. 

In our last article, What Kind of Website Do I Need, and is it Worth it?, we discussed the cost of the things you will need to build your site, such as a domain name, web hosting platform, etc. Here, we will discuss the steps you need to take to build your new site.

Starting from scratch can be confusing, as there are lots of choices to make. First, there are two ways you can go: if you are looking to simply promote your brand and check off the box for your business that says “online presence,” then low cost, do-it-yourself website builders such as Wix.com, SQUARESPACE or GoDaddy would be the best bet for you. 

If you’re seeking to build a robust site that can generate online sales and market yourself as an authority in your industry, then creating a site from scratch may be your best bet. This will, of course, require a commitment of time, patience and money, but it will be well worth the effort. 

DIY Website Pros and Cons

Using a DIY website builder is, of course, the cheapest route to building a new site, and there are plenty of advantages to using one of them: they’re relatively cheaper than building your own site, usually costing a low monthly fee; they’re easy to use, and they typically provide search engine optimization (SEO) and analytics features, as well as security. 

Some of the drawbacks are, however, that there can be hidden fees if you choose to expand your site, and other users may use the same website template that you’ve chosen, which would make your site look unoriginal. Here is a full list of pros and cons of using a DIY web builder that you should be aware of: 

Investing in Your Own Site – What you Need

If you are looking for a site that can process direct sales from customers, attract lifetime customers and build sales leads, then you most certainly should look to construct your own robust site from scratch. While this will entail a long, costly process, the effort will be worth it in the long term, as it will most likely yield the best results in terms of increased sales, brand recognition and customer base. The cost of a new website may be daunting at first, but remember the old adage, “you have to spend money to make money.”

Just consider – according to the US Census Bureau, e-commerce sales accounted for 13.8% of all retail sales in the first quarter of 2021, a steady rise from 5% in the first quarter of 2012. The pandemic only increased online purchases, as people had to make purchases from the comfort of their homes. Most economists believe, however, that the steady increase of online shopping, including food orders from restaurants, will only increase. 

Keep in mind that e-commerce sales are so prevalent now that they even contributed to the fall of brick and mortar giants such as Toys R Us, and economic experts believe e-commerce will only continue to rise. Given this, now is the time to offer your products and services online through your own site. 

A basic laundry list of things you will need to create your own site include:

  • High Speed Cable Internet;
  • A Domain name;
  • A Web hosting platform such as BlueHost, HostGator or GoDaddy, or your own server;
  • A Basic website layout;
  • A content management system;
  • A web designer/programmer, and
  • A Web-based Payment Module 

Designing & Building Your Site

Now that you’ve decided to build a website, know that designing a thorough and visually appealing site will be as important as the quality of the products or services you are selling. Examine the websites of your competitors to get ideas of what you believe works and doesn’t work.

The first thing you will need to do is ask yourself what you want your website to accomplish so that you can create subsets of your website’s welcome page. If you are seeking to expand the reach of your brand and ultimately increase sales, a basic list of items to highlight on your site could include:

  • A welcome page that will include your company’s logo, a basic explanation of who you are, your mission statement, and company reviews. 
  1. Remember, the welcome page is the first thing that web browsers will see, and it will be the initial reason they decide to stay on your site. Work with an experienced web designer to make it visually appealing, and without being too wordy, define your company and what it has to offer. 
  • A subset page that offers a catalogue of your company’s products.
  1. A subset page where browsers can actually purchase your products. This will also require your page to have a web-based payment module to process payments via credit or bank card.
  2. An “About Us” subset page informing browsers who you are, your history and perhaps any video presentation demonstrating your dedication to your products and services.
  3. A “Contact Us” subset page, and
  4. A blog subset page where you can write and post articles about trends in your industry to make you seem like an expert in your field. Content management systems such as WordPress, can make blogging easy.
  1. While it is time consuming, blogging SEO optimized articles about your industry is one way to keep potential customers coming back to your site and thinking about the industry in which you are selling products.

The second task you want to complete is to formulate a basic layout of your website. 

For our purposes, we used a fictitious company, “Joe Smith’s Construction Supplies,” to create an example of how you may want to outline your website:

Nuts and Bolts

As far as the nuts and bolts of building your own site goes, you can take courses to learn computer code and web design which, of course, will cost you time and money. Otherwise, you probably will need to hire a web designer/programmer to build your site. You can hire one on a freelance basis, but as you interview them, ask to see websites they have constructed in the past, as well as references. 

Once you do, work with both them and your website consulting firm to create a visually appealing, original and user friendly, responsive site that is optimized for computers, tablets and smartphones. You may even consider creating a limited test website, known as a beta site, to find any bugs in your site before you officially launch it. 

Next Up

“If a tree falls in the forest and no one is around to hear it, does it make a sound?”

What good will an awesome new website do you if no one is looking at it? Now that you’ve gone through the long and arduous process of building a great website, it won’t automatically mean more sales. 

In the next article, we will discuss general ways to draw viewers to your site. After all, web traffic turns into sales, and sales turns into potential lifetime customers. 

Collateral requirements for SBA loans.

What Are SBA Loan Collateral Requirements?

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Those seeking an SBA loan are likely familiar with the association’s sometimes confusing collateral requirements. Small business owners are required to name some amount of collateral when applying for an SBA loan, but it can be difficult to determine ahead of time how much collateral may be expected to finalize a loan or what necessarily constitutes collateral.

 

While there are several kinds of SBA loans, most common are 7(a) loans. Another kind of SBA loan currently in high demand is EIDL (Economic Injury Disaster Loans).  While 7(a) loans can be requested for any reason, EIDL are specifically disaster loans which have recently gained prominence as a form of pandemic relief. EIDL and 7(a) loans both have different collateral requirements. This article will explore exactly what each of these loan types require from borrowers in the form of collateral as well as other requirements of note. 

What Constitutes Collateral?


Before discussing collateral requirements, it is important to understand exactly what collateral is and what lenders and the SBA generally consider acceptable forms of collateral. Collateral, in its simplest forms, is an asset that a lender accepts as a form of security on a loan in the event of non-payment or a default. 

Examples of Generally Approved SBA Loan Collateral include:

  • Commercial or personal real estate
  • Accounts receivable
  • Standing inventory
  • Business vehicles
  • Equipment, and machinery

SBA 7(a) Loan Collateral and Requirements

SBA 7(a) loans are one of the most frequently sought loans by American small business owners and fall under three categories: Standard (7a), 7(a) Small Loans, and SBA Express. All collateral policies for 7(a) Small Loans and Express Loans are also true for Standard 7(a) loans up to $350,000.

7(a) Collateral Requirements

  • Loans up to $25,000 are unsecured and require no collateral.
  • Loans between $25,000 and $350,000 must follow collateral policies for similarly-sized non-SBA-guaranteed commercial loans.
  • Loans larger than $350,000 require the maximum amount of collateral possible from the borrower to fully secure a loan. The borrower must meaningfully demonstrate they have put forward all available collateral.
  • If a lender believes fixed assets do not fully secure a loan, they may also consider trading assets at 10% current book value.

Notable Variations

Both 7(a) Small Loans and SBA Express loans offer up to $350,000, but the SBA will only guarantee up to 50% of the loan amount for Express Loans. Guarantees for Small Loans are either 85% for loans up to $150,000 and 75% for loans greater than that.

7(a) Loan Additional Information

Applicants for SBA 7(a) loans must agree to an ABA (All Business Assets) lien. This means that all of an applicant’s business assets will be put as collateral for the SBA 7(a) loan. 7(a) applicants may also be subject to a UCC-1 (Universal Commercial Code) lien which gives a lender the legal right to access a business’s assets in the event a business defaults on their loan.

In addition to collateral, every person who owns at least 20% of an applying business must also sign a personal guarantee when seeking SBA 7(a) financing. A personal guarantee is an acknowledgement that the party signing is personally responsible for paying back a loan. Personal guarantees are essentially extensions of collateral. Instead of naming specific assets, however, an applicant agrees to use any assets necessary to pay back the loan.

When applying for an SBA 7(a) loan the lender will have the applicant fill out the “SBA Eligibility Questionnaire for Standard 7(a) Guaranty.” Which allows a lender to individually assess if an applicant has sufficient holdings to secure collateral.

SBA EIDL Loan Collateral Requirements

Unlike 7(a) loans, the SBA EIDL (Economic Injury Disaster Loan) program is exclusively distributed to small businesses that are suffering from a temporary loss of revenue due to a declared disaster. The EIDL program is currently accepting applications from businesses affected by the COVID-19 pandemic. The EIDL program has different collateral requirements than a 7(a) loan, notably because EIDL is a form of aid. Loans made through the EIDL program under $25,000 are still unsecured. Loans over $25,000, however, will require some form of collateral. Because the program often deals with disaster relief, the EIDL program will not turn away an applicant because they do not have a certain collateral value. If an applicant pledges the collateral available to them, a lender will often consider that collateral sufficient.

EIDL program applicants seeking loan amounts greater than $25,000 must also consent to a UCC-1 lien being placed on their business. Businesses applying to the EIDL program requesting more than $200,000 also require a personal guarantee from each person with a 20% or more stake in the business.

Collateral Overview

The SBA intentionally leaves collateral requirements vague in all loan programs. Necessary collateral is determined on an individual level between a lender and an applicant. More important than a dollar amount, however, is a business owner’s ability to demonstrate that they are committed to repaying a loan. Collateral in combination with personal guarantees and UCC-1 liens are mechanisms to assure loan programs are not taken advantage of or used unnecessarily.

Laying out strict financing requirements and cutoffs ignore the nuance of small business and may needlessly dissuade applicants. The most important step for a small business seeking a loan is discussion with a trusted financing expert. If your small business is interested in learning more about SBA loans and funding opportunities, get in touch with a Kapitus financing expert who can assess your options based on your unique situation.

Learn more about non-recourse financing

What is a Non-Recourse Commercial Loan

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An effective means to expedite a business’s growth is tactical commercial financing. A factor that may dissuade businesses from finalizing a loan agreement, however, is fear of default and the subsequent recourse from lenders. There are actually several types of loans where lenders will agree to not seek recourse after borrower default, which are known as non-recourse commercial loans. 

A non-recourse commercial loan is an agreement between a lender and a borrowing business where the borrower is not personally liable if they default on the loan. In the case a borrower defaults, lenders may not repossess any of the borrower’s property that was not originally put up for collateral. Lenders may seize profits from the business, but the business owner’s personal assets may not be taken.

Recourse Commercial Loan Versus Non-Recourse Commercial Loan

Traditional recourse loans require borrowers to make a personal guarantee that if their business defaults on their loan, the lender may seize bank accounts and other assets until the original debt is covered. In the case of a non-recourse loan, lenders may only seize agreed upon collateral in the event of borrower default. Even if the collateral does not sufficiently cover the full value of the loan, the lender cannot seize the borrower’s personal assets to recover losses from the original loan.

Carve-Outs and the “Bad Boy Guaranty”

Most non-recourse financing agreements have exceptions where the lender may collect beyond collateral in the case of borrower default. Exceptions to non-recourse agreements are called “carve outs,” or “Bad Boy Guarantees.” Most carve outs protect lenders in the case a borrower either misrepresented their intentions or committed a crime. Several common carve outs in non-recourse financing agreements allow the lender to seek recourse outside of collateral, including:

  • Borrower files for bankruptcy
  • Borrower commits fraud or other criminal activity
  • Borrower fails to pay property taxes
  • Borrower fails to maintain required insurance

If a borrower commits any of the acts specified in an agreement’s carveout clause, the non-recourse protections of the original agreement are nullified.

Qualifying for Non-Recourse Financing

Since non-recourse commercial loans are much riskier for lenders, conditions for approval are generally much more strict. Among traditional qualifications of positive balance sheets, a good business credit score and sufficient collateral, applicants must also meet the terms of a non-recourse guarantee. Similar to carve outs, the non-recourse guarantee specifies that the borrower, or the guarantor, must maintain certain obligations to retain non-recourse status. A non-recourse lender may require that the borrower sign a guarantee of performance, meaning that certain goals remain on schedule, or a guarantee of payment. Guarantees of payment stipulate that any profits made from the project financed by the original loan must be routed back to pay the accrued debt.

Since lenders face significantly more risk when making a non-recourse loan, non-recourse agreements are generally reserved for exceedingly low risk-of-default borrowers taking on long-term projects.

Types of Non-Recourse Commercial Loans

Real Estate

The most common type of non-recourse financing is non-recourse real estate loans. In the case of real estate loans, non-recourse deals commonly stipulate that the borrower must pay back the loans with profits made after selling the real estate – which is a guarantee of payment. If the property is developed, but does not sell or does not make a profit, the real estate itself is often considered sufficient collateral.

SBA

Non-recourse loans secured by the SBA are traditionally used to help small businesses secure financing for fixed assets such as real estate, office facilities and sometimes equipment. To decrease the direct risk for lenders, the SBA assumes a portion of the risk  for the loan and guarantees to cover a percentage of a loan’s full amount in the case of borrower default. If a borrower defaults on a SBA-secured non-recourse commercial loan, the government, not the lender, is liable for the guaranteed portion of the loan.

Development

Another common type of non-recourse commercial loan are non-recourse development loans. Development loans are specifically for developing commercial property and often finance a project through its entire process. Development loan agreements usually state that the borrower must begin repayment once they have started earning a profit. If a project is not profitable or does not complete development, then the loan will often be considered defaulted. When a non-recourse development loan defaults, the property which was financed will then be seized as collateral.

Non-Recourse Factoring

Similar to  non-recourse loans, non-recourse factoring agreements stipulate that in the event an invoice cannot be paid, the factor is liable for the losses, not the customer. Non-recourse factoring agreements, however, tend to have higher fees and/or more restrictive terms because the risk is much higher for the factor. Factors are more likely to offer non-recourse invoice factoring services to customers who handle a large and constant flow of invoices and whose clients have good credit. Depending on a company’s size and invoice capacity, recourse and non-recourse factoring are both viable options. Lenders also may consider the size and volume of a customer’s invoices before offering non-recourse factoring options.

Non-Recourse Overview and Considerations

Non-recourse financing may be a misleading name for this kind of financing, as almost every type of non-recourse deal still allows lenders to seek recourse of some kind. Non-recourse agreements are almost always reserved for deals where lenders can recoup their losses without additional recourse. However, semantics aside, if you’re able to qualify for non-recourse financing it can be a great way to keep your business on the growth track. 

If you are interested in learning more about non-recourse commercial loans, speak to a Kapitus financing specialist who can address your unique situation.

Hands, graph chars, word payroll.

Top Payroll Software Systems for Small Businesses

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Spending time processing payroll is not what you want to be doing as a small business owner, as the chore can often be tedious, expensive, error-prone and time-consuming. 

Managing your payroll, however, is obviously one of the most important aspects of your business. The Software-as-a-service (SaaS) industry is skyrocketing, and utilizing top payroll software for your business can conveniently automate your payroll process for a small, monthly fee, and can help you avoid costly mistakes.

Advantages of Automating

If you manually process your payroll on your own via a spreadsheet, you should consider automating your payroll processing through relatively inexpensive software designed specifically for small- to medium-sized businesses (SMBs) to resolve the challenges of keeping up with your task. Whether you run a dry-cleaning business and only have two employees, or you run an accounting firm and have 20, the benefits of utilizing a good payroll software system are endless, and can help you:

  • Automatically keep up with new tax and employment laws and regulatory changes and incorporate them into your payroll system;
  • Maintain accurate payroll records in accordance with the Fair Labor Standards Act; 
  • Prevent unintentional under- or overpayments to employees which can complicate year-end accounting and W-2 processing and cause potential legal issues for you;
  • Ensure that you are properly withholding federal, state and local taxes from your employees’ paychecks, and 
  • Reduce administrative costs or time (if you’re the owner and are the one responsible for payroll).

If you think payroll software may be too expensive, think again. Kapitus has identified six of the best payroll software systems based on cost, capabilities, ease of use and the availability of customer support.

#1 Gusto

Gusto is ranked as the number one payroll software package by a variety of sources, including PCMag and US News and World Report, for its ease of use and low cost. Every Gusto plan offers Automatic local, state, and federal payroll tax filing, automatic state new-hire form filing, workers compensation administration, paystub and W-2 access for employees, and two-day direct deposit. 

Gusto offers four distinct packages: 

  1. The Basic package is $19 per month and $6 per employee and offers features such as automatic payroll filing, employee self-service and workers compensation administration.
  2. The Core package is $39 per month and $6 per employee, and offers automated tax filing in addition to what the Basic package offers.
  3. The Complete package is also $39 per month, but increases to $12 per employee. In addition to offering everything in the Basic and Core packages, it incorporates PTO tracking, time tracking, employee directory and onboarding services.
  4. The Concierge Package costs $149 per month and $12 per employee, and offers what the firm coins “complete and comprehensive HR support.”

#2 PayChex 

The Paychex Flex package starts at $39 per month and $4 per employee, and generally has positive user reviews for its ease-of-use and compatibility with most HR software systems. The price increases as you add more features. While Paychex does not detail the price increases on its main website, what differentiates it is that it offers cloud-based payroll management and HR software to small businesses. All Paychex payroll programs include new-hire state reporting, automatic payroll tax filing, and an employee financial wellness program. Paychex Flex offers 160+ reports with its payroll and HR packages – something that most payroll software packages do not offer.

#3 ADP

ADP is one of the oldest and most popular payroll companies. Reviews are mostly positive for its customer service and ease-of-use. It offers four RUN Powered by ADP plans, but you need to contact ADP to get a price quote based on your needs. Each plan offers basics such as direct deposit, automatic payroll tax filing, and W-2 submissions. Its cheapest plan, Core Payroll, does include employee onboarding, health care compliance forms, and a regular HR checkup. It’s more expensive plans include employee background checks and ZipRecruiter assistance plus more comprehensive payroll help, like wage garnishments and state unemployment tax deductions. 

 

#4 OnPay

OnPay starts at $6 per month and $5 per employee, and has garnered mostly positive reviews for the extra features it includes for which most payroll software companies charge additional money for. Even its most basic package offers services such as garnishing wages, withholding state unemployment insurance, and giving employees multiple payment options such as direct deposit and paper checks. OnPay also will tailor its payroll services to specific industries such as construction and restaurants at no extra cost. Unlike Gusto, however, it does not offer a mobile app.

 

#5 SurePayroll

SurePayroll has garnered excellent reviews for its guarantee to deal with the IRS in case you make any mistakes deducting taxes from your employees’ paychecks, including paying any fines that might be levied against you in case you do. The service starts at $19.99 per month and $4 per employee, and will charge more as you add on additional services. SurePayroll charges extra for services such as accounting integration software and is limited to QuickBooks and Xero. Time-clock integration starts at $4.99 a month. Still, the $29.99 it charges for its full-service payroll system makes it one of the cheaper payroll software services out there, especially given its tax guarantees.

 

#6 UZIO

UZIO starts at $30 per month and $4.50 per employee, and is specially tailored to small businesses with fewer than 10 employees. Its affordability and ease-of-use has garnered it positive reviews. Its self-service employee portal and automatic payroll tax deductions make it  simple and affordable. If you want to add additional HR support, you can upgrade to UZIO’s All-in-One package, which does not cost much more than its basic package.

All in all, while utilizing payroll software may be an extra expense, automating your payroll system is definitely worth the money. Doing so ensures that your employees get paid in full and on time, and it will avoid costly mistakes that could result in hefty fines by the IRS and other agencies if you make a mistake, 

Health insurance forms

Tips on Lowering the Cost of Healthcare For Your Business

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It’s no secret that healthcare plans represent a dilemma for many small businesses: on one hand, offering comprehensive, all-inclusive health insurance is often crucial to attracting and retaining talented employees, but on the other, setting up and maintaining a healthcare plan is expensive, confusing and time consuming. 

According to a recent survey of 827 small businesses from Small Business for America’s Future, more businesses (55%) are worried about the costs of providing health insurance to their employees than they are about the dangers of COVID-19 (37%). The study also found that 76% of small business owners do not provide coverage because the cost is too high, while 53% of small business owners said they do offer insurance but are considering dropping it because of rising costs. 

Roughly 90% of small business owners said their health insurance costs increased over the past four years, with 40% responding that costs have risen by 10% or more a year. 

What to Do?

There are several ways to reduce the cost of health insurance while at the same time providing your full-time employees with the health coverage that they need for both themselves and their family members. 

#1 Shop Around for a New Plan

If your insurance provider keeps increasing costs at an unreasonable rate, then simply shop around with a health insurance broker, such as eHealth, for a new plan that offers modest increases in prices. If you have a preferred provider organization (PPO) plan, keep in mind that with the rise of value-based health care – new types of medical care systems that are meant to drive the cost of care down – those types of plans are a thing of the past. You may consider switching to types of plans that are generally cheaper, such as:

  • Exclusive provider organization (EPO) plan, which have a curated number of doctors but don’t require referrals;
  • Health Maintenance Organizations (HMOs), which restrict patients to a particular set of doctors, but often charge higher co-pays if the patient sees an out-of-network physician, and
  • A tiered plan – a plan that offers multiple tiers of physicians under the in-network umbrella. The first tier of doctors already have arrangements with the insurance carrier to offer financial discounts for services, and those savings are passed on to you and your employees.

#2 Offer a Plan With an FSA Option

Flexible spending accounts (FSAs) allow employees to set aside pre-tax dollars to spend on major medical events, such as surgery, teeth replacement, high-cost prescription drugs, or any other future medical need. Insurance plans that offer FSAs typically will offer you, the business owner, high annual deductibles but also a discount on premium contributions while still providing health insurance to your employees. 

#3 Look for Insurance Plans That Emphasize Value-Based Care

Value-based health care is the new trend in medicine today, and there are several ways insurance companies can offer it and pass the savings along to your business in the form of lower monthly costs. Look for plans that include:

  • Wellness plans rewards;
  • Telemedicine;
  • Free annual physicals and flu (and COVID-19) vaccination shots, and 
  • Prescription drug coverage that requires pharmacy benefit managers (PBMs) to automatically offer cheaper, generic versions of prescription drugs before selling patients the more expensive brand name ones, and
  • Dedicated service experts.

#4 Shifting Healthcare Costs to Employees When Applicable

While not ideal, you may want to choose a cheaper insurance plan that places a greater burden of healthcare costs on employees. Some plans can save you money by raising the deductibles and copayments for medical services, and raising the costs of using out-of-network doctors. Be warned, however, that employers must balance this approach with affordability requirements under the ACA.

As a benchmark: A 2020 Kaiser Family Foundation health benefits survey found that full-time employees paid on average 17% of the premiums for single coverage, and 27% of the cost for family coverage. The survey also showed that employers are shifting costs to employees through increased deductibles and out-of-network copays.

You also may want to add “working-spouse” provision to your health coverage plan. These provisions limit an employee’s spouse’s access to a plan when the spouse works for another employer that offers health insurance, thus saving you time and administrative costs.

#5 Educate Yourself and Your Employees

If you and your employees don’t have a solid grasp of the ins and outs of medical insurance, know that you’re not alone. The more your employees are educated on their health benefits, the better and lower-costing choices they will make. You may want to consult with a health insurance brokerage firm such as eHealth or your current insurance carrier to:

 

  • Provide training on open enrollment;
  • Give a simplified summary of benefits from your insurer, as well as explanations on deductibles and in-network doctors, and 
  • Provide access to a health insurance expert, either through your own HR manager (if you have one) or an agent from your insurance carrier.

Which Insurance Companies Are the Most Popular?

Whether you have two employees or 200, there are insurance companies that have a reputation for offering generally lower costs and specialize in providing coverage for small businesses. The most popular seven companies are:

  1. UnitedHealthcare, which has a reputation for providing one of the most extensive network of physicians and emphasizes the use of modern technology for virtual healthcare;
  2. Blue Cross Blue Shield, which operates through 36 local, independent doctor networks and is known for affordable tiered plans;
  3. Anthem, which has the largest network of doctors and takes an integrated approach to medical care through combined health plans, which connect patient data in order to more effectively manage care;
  4. Humana, which offers a diverse array of tiered plans and emphasizes preventative care, and wellness programs;
  5. Kaiser Permanente, the largest managed care organization in the U.S. and offers one of the widest array of plans specialized for small businesses;
  6. Health Care Services Corp., the largest customer-owned health insurance company in the nation that emphasizes affordable plans for small businesses through value-based care, and
  7. Oscar Health, a company that emphasizes cheaper insurance plans for small businesses by utilizing healthcare technology such as telehealth, electronic appointments and automatic wellness checks.  

While setting up a health insurance plan is time consuming and often painfully expensive, we all want to see everyone have access to the healthcare that they need, especially our employees. The good news is that employer health care costs have not risen as sharply as it has in recent years. There is an affordable, well-priced plan out there that is right for your business and employees, it just may take some time to find the right one, but in the end, it will be time well spent.  

corporate loans to suit your business situation

What Are The Best Types Of Corporate Loans

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Corporate loans are one of the most effective financing options for companies seeking to fund a new project or simply improve their cash flow. A corporate loan accounts for any kind of financing offered to a business, not an individual. There, however, are several kinds of corporate loans, all with their own terms and requirements. Exploring the various types of corporate loans offered to businesses can be massively advantageous to those looking to make the most of their financing.

 Commercial Loans

Commercial loans stipulate that funds distributed by a lender may only be used for business purposes. Commercial loans act as an umbrella term for several purchase-specific loans including commercial real estate loans. Commercial real estate loans can apply when financing any real estate purchase that will be used solely for business purposes; this can include general office spaces, retail locations and even apartment complexes. Commercial loans generally require considerable collateral from the business, almost always including the real estate or item being financed.

Commercial loans are generally reserved for larger companies since they are often used to fund large operations and have larger upfront costs.

Acquisition Loans

Acquisition loans are loans given specifically for financing a business’s purchase of a large asset from another business, or another business outright. Among the several types of corporate loans, acquisition loans often have the shortest window for both distribution and repayment. Acquisition loans, like commercial real estate loans, may only be used when purchasing an agreed upon asset, in this case another business or another business’s asset. Acquisition loans are often only given to businesses that do not have the liquidity for an acquisition but can meaningfully demonstrate to a lender that they have the capacity to take on the acquisition often through extensive collateral.

Term Loans

Corporate term loans are agreements between a lender and a business where a lender gives a specific amount of money with a fixed repayment schedule. Term loans are most often used for financing one-time purchases like equipment or vehicles, but they are also used as basic working capital. Term loans can have either a fixed or floating interest rate; floating interest rates will change depending on if an underlying index rises or lowers. Depending on the agreement, term loans can either be taken out in a single payment or in several smaller increments.

Revolving Credit

Similar to term loans, corporate revolving credit gives businesses access to a specific amount until the terms of the agreement end. Unlike term loans which pay out in capital, revolving credit allows businesses to draw and pay in the credit amount as many times as they like. Revolving credit is essentially a maximum loan balance that businesses can treat very similar to a line of credit, but revolving credit agreements are open-ended and do not have a specified end-date.

Self-Liquidating Loans

Self-liquidating loans refer to loans that finance projects, the revenue of which is then used to repay the loan. Self-liquidating loans are most often used by seasonal businesses or businesses with trackable busy periods. Self-liquidating loans can be used to buy inventory or machinery in preparation for a busier season. Once seasonal customers decrease and the need for working capital decreases, the business can use the increased profits made available by the loan to pay back their lender. To qualify for a self-liquidation loan, businesses often need to demonstrate through accounts-receivables records that their business has a cyclical busy season or many seasonal customers that would justify self-liquidation.

Asset-Conversion Loans

Asset-conversion loans act almost identically to a self-liquidating loan but are repaid by liquidating a business asset like accounts receivables, equipment, or inventory. Asset-conversion loans expect that whatever asset that would be liquidated to repay a loan is also put up as collateral. Asset-conversion loans, then, are traditionally in the amount equal to the value of the business assets put up as collateral.

Cash Flow Loans

Cash flow loans are used to fund daily operations like inventory, payroll and even rent. Cash flow loans are traditionally paid back with incoming funds. Before being approved for a cash flow loan, lenders traditionally consider a business’s accounts receivables and existing cash flow and then propose the terms of the loan to the business owner. Cash flow loans typically have more lenient credit requirements and require little collateral. Because of the loan’s higher risk, cash flow loans have comparably high interest rates and sometimes require blanket liens as part of the loan agreement.

Cash flow loans also have comparably high originations fees. The several increases in rate seen in traditional cash flow loan agreements come in exchange of the target business’s lack of assets or credit history.

Working Capital Loans

Working capital loans cover the same day-to-day expenses as a cash flow loan but are generally much longer agreements and used by larger businesses who may have cyclical clients or trackable busy and slow seasons. Working capital loans can last upward of 25 years especially when secured with a bank. Banks generally offer the most generous rates, but applying businesses must have a long-standing history of profitability, good credit, and a detailed history of positive balance sheets. To maintain liquidity during slow times, a working capital loan agreement may increase cash flow during and ease the burden of slower seasons. Working capital loans, then, are often reserved for businesses that can meaningfully prove to banks or private lenders that their existing assets, good credit, and long history of operation justify long-term financing.

Bridge Loans

Bridge loans, also called interim loans, are given to businesses often as a short-term loan before they secure long-term financing. Bridge loans essentially bridge a gap in capital so a business can reach a certain goal or new financing terms. Since bridge loans are created with a short-term goal in mind, the loan’s interest rates reflect traditional short-term financing; they have generally high interest rates and are often backed by collateral. An example of when a bridge loan could specifically benefit a business when acquiring new office space. A bridge loan could free up liquidity to purchase a new office space while the business owners wait to sell their old space. The most common corporate use of bridge loans, however, is when waiting on finalizing long-term financing. Bridge loans have comparably fast application-to-approval time in exchange for their higher interest rates and shorter terms.

 

Corporate Financing Options

With  several options for  corporate financing, businesses should do their research and determine which type of financing is best suited for their needs. For example: While commercial loans can be used for a wide variety of financing possibilities, more pinpointed, short-term financing like bridge loans or cash flow loans may better suit specific circumstances.

The most effective way to learn what corporate financing option is best for your business is to get in contact with a financing expert. If you would like to learn more about your options when seeking a corporate loan, get in touch with a Kapitus specialist who can address your unique situation.

Skyline of the city

The Six Best Cities to Relocate Your Small Business HQs Post-Pandemic

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If the COVID-19 pandemic did anything, it served as a crystal ball for small businesses. If you looked carefully into it, you could surely see the words “remote work” forming in it. 

Now that the pandemic is coming to an end, if you’re one of the millions of small businesses that has decided to permanently move to a remote working environment, now may be a great time to move your business into a smaller, cheaper space to a city where business taxes and commercial rents are low and the quality of living is high. Moving could save you considerable expense, especially if you are incorporated in an expensive urban area such as New York City, Boston, San Francisco, Chicago or Los Angeles. 

How We Chose

Kapitus came up with a list of six cities that could be ideal sites for your company headquarters based on several filters:

  • The city must be located in a state in which the corporate tax rate is no higher than 5%;
  • The city must be listed by the National Association of Realtors (NAR) as one of the top real estate markets in 2021. The NAR chose these markets based on several factors including commercial leasing rates, GDP growth, unemployment rate, median household income, consumer spending and personal rental vacancy rate, among other variables.
  • The city must rank among the top 50 cities in North America in Numbeo’s Quality of Life Index. The QoL Index incorporates factors such as cost of living, average property price-to-income ratio, crime and safety and pollution.
  • The final factor is demographics. While this filter is a bit more subjective, Kapitus considered population size, small business competition, and the education level of the population in each city.

Here are the six cities Kapitus recommends if you are thinking about relocating your small businesses – and four of them are located in states that have the best corporate tax rate of all – 0%!

Austin, TX (Pictured Above)

Nestled in the shadow of the University of Texas and other local colleges, it is a great town for budding entrepreneurs and tech companies. While Texas’ sales tax is on the high side, it is one of a half-dozen states that does not charge a corporate tax. Its population of 950,807 is highly educated, so it is a hotspot if you wish to hire interns or new employees for your company. It is considered a college hipster town with a great culture, restaurants and nightlife, and it ranks fourth in the QoL index. The NAR also states that it is one of the best places for small businesses in terms of commercial and residential rents. Corporate giants such as Amazon, Google and Facebook have set up operations in the city, thus paving the way for ambitious startups and small businesses.

Raleigh, NC

The “City of Oaks” was named as one of the best cities in the country to live in by Forbes and is ranked number one in the QoL index for its Southern charm, 180 miles of greenways, rich history and comparatively low cost of living. While its population of 474,069 people makes it relatively small, it is in the heart of Research Triangle Park – one of the hottest areas in the country for big tech. Duke University, the University of North Carolina and NC State University are all within the area, making it a breeding ground for tech entrepreneurs and bright young college grads seeking experience. Plus, North Carolina boasts a corporate tax rate of just 2.5%, which is one of the lowest in the country, and the NAR named it one of top 10 cities for commercial real estate investment. If you are imagining opening a small office in a city and calling it your headquarters, Raleigh may be the perfect place. 

Salt Lake City, UT

Some may connote Salt Lake City with Mormons, but did you know that it’s also called “the silicon

slopes” for its many tech startups, as well as the fact that tech bigwigs such as Adobe and Oracle have large presences in the city? Its population may be just shy of 200,000 people, but 45% of its workforce possesses a bachelor’s degree or higher, making it a great city for hiring well educated and highly qualified professionals. Utah is one of the few states that does not charge a corporate tax, and it ranks 41 on the QoL index for its relatively low residential property rates, tranquility and scenic beauty. It is also on the NAR’s top 10 best cities for commercial real estate investing in 2021 due, in part, to low commercial rents. 

Seattle, WA

Seattle may be a surprise entry because it’s already well-known for “Frasier,” great coffee and its tech

from Kerry Park

background as it looms in the shadow of Microsoft. Consider, however, that it’s population of 724,305 is well-educated, as roughly 64% of working-class adults have a bachelor’s degree or higher, and Washington is one of the states that does not charge a corporate tax. The city and surrounding suburbs also ranks 11 on the QoL index, and the NAR predicts it to be among the top 10 best commercial real estate markets for overall investment and development in 2021. 

Cincinnati, OH

Once known as “The Queen of the West,” Cincinnati is on this

list for several reasons – the first being that Ohio is also one of the states that does not charge a corporate tax, and another being that it actually ranks 22 on the QoL index. Its population of 307,266 is well-educated, making hiring quality candidates in the area less difficult than most cities. The city’s roughly 850,000 small businesses were hit hard by the COVID-19 pandemic, and as a result, commercial leasing and vacancy rates are the lowest they’ve been in the city in decades, so now may be a good time to make a switch to the city.

 

Denver, CO

Denver may be known for its long, cold winters, but it is also known as a goldmine for small businesses,

especially ones that specialize in the hi-tech and blockchain technologies. Financial giants such as Invesco have their headquarters in the city, as do 26,000 small businesses for a city with a population of 705,576. Post-pandemic, the office vacancy rate shot up to 13.1% from 12.5% in the fourth quarter of 2020 and 13.1% in the second quarter of 2020, making commercial real estate leasing cheap right now. The city ranks 38 on the QoL, and is known for its diverse, well-educated population and beautiful suburbs, making it an ideal spot for small businesses. Colorado’s state corporate tax rate is 4.63%, making it one of the cheaper states for businesses to set up shop in. 

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