News Roundup for Small Businesses: Everyone is talking about Confessions of Judgement
Issue 1, February 6th
News Roundup for SMBs is a new series we’re starting this year, with a new issue coming out every week. We’re putting together news regarding Finance, Economy and Small Business Opportunities, so you can spend less time reading up on the news and more time focusing on growing your business.
The financial industry is still reacting to Bloomberg’s searing investigative series on Confessions of Judgement as a tool to forcibly collect debts from small business owners with MCA loans if payments are missed. While the Small Business Finance Association is strongly against COJs and the state of New York just introduced a bill to ban them in financial contracts, nationwide the reactions are still varied. Nevertheless, it’s a topic worth following to see where it leads policy-wise. Hopefully it will help small business owners make better loan decisions and protect them from abusive practices.
Funding Circle, the global small business loans platform, joins the Stripe Partner Program, making it easier for businesses using Stripe to apply for a business loan of up to $500,000. US based Stripe users can now import their data directly and securely when applying to a loan, as the process has been streamlined to ease the application process and help small businesses focus on their day-to-day.
In a bid to to reduce its carbon footprint, Ikea is trialling a leasing program for businesses. Whether it’s setting up your new office space or a bistro kitchen, the service might just ease the cost of setting up a new business.
While not an exhaustive list, NerdWallet’s list is a good starting point for any small business thinking of taking out a loan to grow. While good personal credit and strong financials means it’s easier to qualify for cheap financing, there are also alternative lending options for businesses who can’t qualify for a traditional bank loan.
Truthfully, it depends a lot on what a business has as its main activity. But for the time being, people all around should worry more about getting comfortable in working with digital tools rather than being replaced by a machine. AI’s capabilities are great in repetitive actions and recognizing patterns, but it’s still missing important breakthroughs to be able to do independent work.