Things to Consider When Starting Your Own Business

Starting a business can be tricky. It takes meticulous planning and an acute awareness of how you plan to use each and every dollar. So, before you start your business, here are three things to consider.

#1: Initial Financing

Business financing can be done a variety of ways. Some people cash out their 401(k)s, utilize credit cards, find investors, or even crowdfund. However, most people choose to take out a business loan. Traditionally, community banks, such as Herring Bank, can offer advantages with a variety of loan products and structures. The likelihood of success for your small business start-up can be maximized by seeking the most advantageous structure.

Three types of loans you’ll want to consider when you’re starting a business include:

SBA (Small Business Administration)

A variety of SBA loan programs are available for various business needs. SBA loan programs provide benefits to the borrower in the form of competitive interest rates, lengthened loan terms and less restrictive collateral requirements. Borrowers are obligated to meet equity requirements of the SBA. Such requirements are considered the borrower’s “Skin in the Game”. The primary downside to these types of loans is that the application process is lengthier and more complex. Find more info and guidance on SBA loan programs at


Offered by Economic Development Corporations and other non-profits, microloans may be available for new startup businesses and those with only a few employees. These loans are normally $50,000 or less, short-term, have low equity requirements and a low interest rate. Microloans are only available to borrowers who meet certain economic development goals for the communities where the business will operate.

Equipment Loan

If your business requires equipment, you may consider getting a separate equipment loan. Most equipment loans require equity (a down payment) and can be paid out over time by a monthly principal and interest installment. Your equity position improves as each installment is paid. Before you commit, it’s important to understand that equipment only depreciates with time. Consider leasing versus purchasing as an option. You don’t want to have to update your equipment in a few years and still be paying on the equipment loan.

#2: Merchant Services

Whether you’re a brick and mortar store or run an online service, the right card processing service can maximize your customer experience, leading to better business. Working with a reputable merchant services partner ensures you’re offering the best payment options for your customers, while managing a fast and reliable payment authorization system. Herring Bank, for example, offers a range of services so that you can work with just one payment processor that provides affordable transaction rates.

#3: Payroll Services

Not just going to be a ‘mom and pop’ operation? We strongly advise enrolling in a payroll service. About one third of all small businesses get penalized by the IRS each year because of payroll mistakes. Don’t be one of them. Fortunately, Herring Bank offers a Premier Pay program that helps both you and your employees. We eliminate lost paychecks along with slow cashing time; instead, we deliver 100% direct deposit, even if some of your employees are unbanked. Plus, they’ll save up to 4% each pay period by not having to use a check cashing center. It’s a win-win for everyone

Ready to build an empire? Learn more about how Herring Bank can help you as you’re starting a business by calling us at (888) 283-4564.