Small Business Financing [101]

What I am Learning & Reddit

Howdy ladies and gents (and goblins)!

I’m back for a bit and wanted to share something I’ve been learning this past week.

If you’ve been following my journey over on Twitter, you know I’ve spent the last 5 months unemployed. Honestly, it’s been a pretty awesome break. It was the first time I’ve ever had a chance to just chill and take some time for myself—and I have to say, it was much needed. Now, with a clearer head and a renewed hunger, I’m ready to jump back into the sales grind and go after the big bucks again.

I’ve recently landed a new role and thought this would be a great opportunity to share some of the things I’m learning along the way. Hopefully, it helps you out—and helps me retain all this new info too!

Reddit and SEO

If you’ve been following my journey, you know I’ve been diving into affiliate marketing using what BowtiedTetra teaches on his Substack. I took a pretty big L earlier this year, but I’ve been clawing my way back, adapting as much as possible, and working to build a solid second source of income with the skills and knowledge I’ve picked up.

Fun fact: I’m now making more than I was before! A lot of my content is ranking on Google thanks to the effort I’ve put into Reddit. And honestly, I don’t think I’m saying anything groundbreaking when I tell you this, but Reddit is here to stay. If you play the game right, it’s a goldmine for getting some sweet Google traffic.

My goal now is to keep growing the authority site I’ve been working on and build out other relevant digital communities on Reddit that align with my hobbies and interests.

It’s been a grind, but collectively, my communities are now over 200 members. My vision is to keep growing these subreddits, create websites tailored to those audiences, and see where it all takes me in the future.

Now onto the next section about some fun things I am learning about the alternative lending space!

Small Business Loans 101

One thing about me is that I love learning about new industries, and recently, I’ve been digging into the world of corporate lending. I wanted to share a bit of what I’ve picked up so far.

Honestly, getting financing for a business—especially a small one—is way harder than it should be. Without being the curious person I am, I wouldn’t even know where to start. My first thought was to go to the bank, but if you’ve ever tried that, you know how difficult it can be. And unless you’ve got some rich uncle you can call up (which I, unfortunately, don’t), you’re left searching for other options.

After talking to small business owners, it’s clear that finding good financing options is stressful and takes more effort than it should. Lenders have different criteria—like your cash flow, credit score (personal or business), and how long you’ve been in business. Each one plays by their own rules, so it can get confusing fast.

A lot of people I’ve spoken to think business loans are like mortgages, but they’re usually not. Most small business loans are short-term, often less than two years. They come with higher rates, which is why it’s so important to know how borrowing that money will impact your business. For example, if you were to borrow $100k and could make a 50% return in six months, even if a lender offers you a 35% interest rate, you'd still come out ahead. In that case, it’s a win-win, as long as you’ve thought through how the money will work for you.

Small Businesses are defined as privately owned and operated companies with a small number of employees and relatively low revenue compared to larger corps. Typically that means anything under $5M. To get a loan in the first place, you will have to meet the revenue criteria that lenders need, and that number ranges. Online, e-commerce and affiliate businesses can get small business, medium-term, or short-term loans to help with operations with the right documentation. 

So if you are building someone that is early stage and you need more capital for things like inventory, hiring, marketing, or payroll, debt might be exactly what you need to move the need in the right direction. 

I plan on continuing to share what I have learned because it helps me retain the information myself.

Stay tuned for more lessons on financing your small business!