Drivers like the convenience of doing everything online, including banking. But when it comes to major, real-life banking needs, like financing a house or a small business, you also need a good relationship with a traditional bank. Relationships, particularly with traditional banks, take time to develop. How can you create a successful reputation with a good old-fashioned (and well-financed) institution, while still enjoying the convenience of online banking?
In this post, we’ll discuss how it can be done, and how Giggle Finance, a business financing company, can help you along the way.. We’ll look at all the issues you’ll need to explore, as we cover:
- How to finance your business
- Differences between online and traditional banking
- How to get approved by banks, quickly and easily
- Help for gig drivers – Giggle Finance
How to finance your business
Let’s say you want to expand your rideshare business to include additional cars, invest in some updates, or upgrade your current ride. Just as likely, you could be gig driving in the hope of setting yourself up in a bigger business – maybe a food truck or restaurant, or an auto parts or recreation-based franchise.
You need money to start or improve your business; probably more money than you have on hand. You’ll need more than you could raise quickly just by driving and delivering. When you know there’s a need to come up with a large amount of money fast, there are many things you can do. Here are a few:
- Save. This is the easiest and most straightforward way to raise cash. If you have a substantial amount of savings tucked away, you can use it for all or part of your business investment.
- Friends and family. Do you have some loved ones who believe in you? If so, perhaps you can arrange for them to either lend you money, or offer you an advance on a future inheritance. This can work, but it’s always advisable to lay down a solid business agreement, even with your sister or your best friend. More than a few relationships have gone sour due to unclear terms on “friendly loans.”
- Credit cards. A deafening alarm bell goes off here. Certainly you’ll be able to get a better interest rate almost anywhere than most credit card companies lay on you. Use this source sparingly, if at all.
- Angel investors. Do you have a pool of bitcoin-wealthy buds who might invest some of their winnings in your new enterprise? Even if you don’t know an angel investor personally, it’s worth asking around to see if you can find a few. That ironclad agreement will be needed here, too. You won’t want to pour your heart into getting a business going, only to find out you gave away too much of it to those angels.
- Crowdfunding. Always an option – but you’d better have a good pitch and something to offer the people who put their hard-earned money in your pocket.
- Business loans and lines of credit. You can put together a business plan and try your luck at major institutions, or even the Small Business Administration, who’ll help you find and/or provide some funding.
- Factoring. This is a way of getting cash flow coming in by “selling” your incoming payments to pay off a loan you use to keep your business afloat. The factoring company may wait for your payments, or take their share of your earnings as they flow in, along with their fee. Factoring is a great way to build credit and prove you’re capable of earning what you need to pay off a loan, and ultimately score a larger loan from a traditional institution.
Differences between online and traditional banking
It’s pretty common for drivers to choose online banks because they’re so convenient. It’s easy to sign up, and your accounts can be managed from almost anywhere. Online banks don’t have lots of overhead, so they can offer you low fees on checking and savings accounts, and even some loans.
Online banks are fully hooked into ATM networks so you can use them when you need to. The downside is, those ATMs can’t resolve problems like the humans you’ll find at traditional banks.
What is traditional banking?
In addition to personal attention, traditional banks (aka, brick-and-mortar banks) offer more extensive services, such as the ability to make cash deposits. They can also approve higher loans and mortgages because they have the “deeper pockets” to back them. Some banks even offer insurance and brokerage services. Traditional banks will also cut you a decent rate on foreign exchange, and make it possible for you to secure cashier’s checks.
While it makes sense to use online banking for many of your financial transactions, it’s wise to develop and maintain a solid connection with a traditional bank as well. The good things about online banking don’t really outweigh what a traditional bank can give you when the stakes get higher.
How to get approved by banks, quickly and easily
We’ve given you some reasons to develop a relationship with a traditional bank: having access to extended services, and enjoying easy access to assistance from a real, live human when you need it. And, of course, there’s that thing about ultimately getting your hands on a bigger loan one day.
But, before you automatically assume you’re a shoo-in for a mortgage or auto loan because you’re dealing with a traditional bank, there are a few things you’ll want to know.
First, it’s just plain smart to establish accounts at a traditional bank. If and when you come in for a car loan, a mortgage, or a business loan, you probably will get much better treatment if you’re already a customer. Other ways you can do this are:
- Prove that you earn at least $2K per month doing gig work;
- Manage your cash flow effectively. That means keeping your bank balance out of the red, and ensuring that no checks are returned for insufficient funds;
- Keep your unsecured debt (credit card balances) to a minimum.
If you can keep on top of these three things, you’ll get approved for financing much faster. And with traditional banking, you can talk through your options person-to-person; i.e., you’re much more likely to meet with someone who’ll be there for you in the future as a potential perpetual line of credit. So while traditional banks aren’t always pitched as the first choice for most, these advantages make them a highly useful resource for gig drivers.
Help for gig drivers: Giggle Finance
What if you could get a nice-sized line of credit, have access to instant cash to help with unexpected expenses and small investments … and make inroads toward reaping the benefits of traditional banking? You can do all that and more with Giggle Finance.
Giggle Finance gives you financial peace of mind, and helps you achieve your dreams. Because your Giggle account is fully automated, you have access to instant cash 24/7, 365 days a year. You can cover the cost of an accident, or jump on an opportunity to invest. You have to be working your gig for at least three months, and as long as you prove you can earn the money you need to repay the loan, Giggle will lay it out for you.
Giggle Finance gives you:
- Funding up to $5,000, depending on what your business can afford to borrow
- Access to your funds in about eight minutes
- An advance for your business with no credit requirements
Your line of credit from Giggle is similar to the concept of factoring, which we talked about earlier, but with a sweet twist. The money goes straight into your gig platform or your bank account, giving you an easy way to make your payments back to Giggle.
Having a nice stash of cash go through your bank account rings bells with your traditional institution, too, paving the way for you to get bigger loans for your larger dreams in the future. Giggle Finance reports all your payments to Experian and TransUnion. So your credibility – and your credit score – rises. You can even get credit and breaks on your fees for making early payments.
Here’s how you can make Giggle Finance magic happen for you:
- Sign up: Tell Giggle a little about your business;
- Connect with your gig platform or bank account for automatic payments;
- Review the terms, and then sign your contract digitally;
- Get access to funds in your bank account within minutes.
Giggle Finance gives you the best of both worlds. You get the simplicity and ease of online banking, while developing a solid record you can use to get a future loan from a traditional bank. Get the money you deserve, and build the reputation you need to create a financially fabulous future.
