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Best Membership Plugins for WordPress

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A powerful membership plugin will help you control your WordPress website’s content with maximum flexibility and ease. 

Although many businesses utilize membership plugins for restricted content placed behind a paywall, these plugins can do a whole lot more if you find the right one. 

Membership plugins will assist you with restricted content and membership payments, but it will also come in handy for automated tasks, course or lecture builders, manage discount codes, and much more. 

I’m sure that you have come across a myriad of membership plugins specifically for WordPress, right? Well, I’m here to make it easy for you by narrowing down the top five best options to help you choose the right one for your company’s needs. 

All the tools in this list offer unique features suitable for a range of the most common company needs. 

#1 – MemberPress – The Best All-In-One Membership Plugin for WordPress

MemberPress is the best all-in-one membership plugin because of its powerful and easy-to-use features. Not only does the plugin do what it says it will by creating membership portals for content, but it also offers helpful tools for all experience levels. 

Firstly, MemberPress works seamlessly with any WordPress theme, including custom themes you’ve built. Easy-to-use is not an understatement, as the plugin only takes three easy steps to install and get everything set up, which is incredibly inclusive for beginners. 

Regarding membership tools, MemberPress has you covered. With this plugin, you receive 100% control over all of your content and who can view it based on what membership level they’ve purchased. You can restrict access to pages, posts, tags, files, and everything else you can think of that’s on your WordPress website. 

With MemberPress, the growth of your company is endless when you utilize tools, such as: 

  • An add-on that allows you to build and sell courses
  • Generate as many coupons as you want 
  • Premium community forums 
  • Timed release of content (i.e., content dripping) 
  • Subscription and membership management 
  • Payment integration 

As the most powerful plugin on the internet, MemberPress has three pricing plans that cater to different preferences, including: 

  • Basic: $249 per year for use on one site 
  • Plus: $399 per year for use on up to two sites—this is the most popular plan 
  • Pro: $549 per year for use on up to five sites 

Unfortunately, MemberPress doesn’t offer free trials, but there is a 14-day money-back guarantee on all plans for a full refund. Try it today.

#2 – LearnDash – The Best Course Builder Membership Plugin for WordPress

If your primary business focus is selling courses, LearnDash is an excellent option to build and sell them with no hassle. With its extensive features like ‘focus mode,’ the plugin allows you to create comprehensive online courses with no restrictions. 

Focus Mode is a customizable learning portal that LearnDash allows you to implement into your courses to create a distraction-free environment for learners after purchasing. 

Course creation has never been so easy with its drag-and-drop feature that saves you time while creating an organized layout for your customers. Your content and layout won’t just be organized, it will also be impressively dynamic with drip-feed lessons, adjustable video options, and linear or open progression activities. 

Not only can you create high-quality courses for your customer base, but you can also freely manage them alongside your learners. LearnDash offers a group management function that lets you place users into online groups, then allow said users to manage their own group. 

With LearnDash, you can benefit from key features, including: 

  • Automated notifications to keep you up-to-date
  • Badges and certificates for customers completing a course
  • Place one-time purchases for courses 
  • More than 20+ integrations for functionality 

With a focus on course building, LearnDash is quite affordable for an annual price—and I think the benefits outweigh the overall cost. LearnDash offers three pricing plans, which include: 

  • Basic: $199 per year for one site license with unlimited courses and users
  • Plus package: $229 per year for 10 site licenses 
  • Pro package: $369 per year for 25 site licenses 

All the above pricing plans include a bonus demo site template and a 30-day money-back guarantee. 

#3 – Restrict Content Pro – The Best For Membership Management 

If you own a larger company that creates more content for a bigger audience, it may be difficult to manage and monitor these memberships. This is where Restrict Content Pro comes into play and is a great option for managing all of your memberships in one place. 

Restrict Content Pro lets you keep track of your memberships with an intuitive interface, including active, expired, canceled, pending, and recurring membership levels. Each membership can be added manually and modified in bulk, and you can even request team members to join the board to increase moderation. 

Does a customer decide to cancel their membership? No problem! Restrict Content Pro allows you to manually change each membership status to keep things professional and confusion-free. 

Along with membership management, this plugin has a great range of additional features, like:

  • Member emails where you can welcome new members 
  • Unlimited subscription packages 
  • Performance reports 
  • Data exports 
  • Payment integrations with Stripe, PayPal, Braintree, and Authorize.net 
  • Extensive support 

Restricted Content Pro has four pricing plans that are of great value for the money. These include: 

  • Personal: $99 per year for one site and 13 free add-ons
  • Plus: $149 per year for five sites and 13 free add-ons
  • Professional: $249 per year for unlimited sites and 18 pro add-ons—this is the most popular plan 
  • Ultimate: $499 one-time payment for unlimited sites and 18 pro add-ons

All pricing plans include core features and a 30-day money-back guarantee. 

#4 – S2Member – The Best Free Membership Plugin for WordPress

Looking for a membership plugin but don’t know where to start or how much you want to invest? S2Member is an excellent option. With its extensive free version, this plugin is great for protecting and managing your content for paying members. 

WordPress shortcodes almost entirely power S2Member, so once complicated integrations are now easy to install and use. Even if the installation process gets confusing, the plugin offers you an open community forum, comprehensive documentation, and video tutorials for you to read and follow during setup. 

Not only does S2Member allow you to offer users premium content, but it also includes a secure checkout solution that flows seamlessly with WordPress capabilities. Even though the free version doesn’t provide one-step registration and checkout for ease, it’s still a great tool that just has extra steps for verification purposes. 

Although the plugin is free, S2Member still offers an abundance of basic features that can help improve your business, including: 

  • Standard Paypal button integration 
  • Content restriction options 
  • Security encryption key 
  • Manual account creation 
  • Member profile modifications 
  • Affiliate program integrations 
  • Customizable email templates 

There are more than 20 unique features that come with the free version of S2Member. This makes it easier for you to learn the ropes of plugins while improving your business at no cost to you. 

Speaking of cost, S2Member offers two pro pricing plans at an incredibly affordable price. These include: 

  • Pro version 2: $89 one-time payment for a single-site license 
  • Pro version 3: $189 one-time payment for an unlimited site license 

Both pricing plans include lifetime access to newer versions of the S2Member plugin and a 14-day money-back guarantee. 

#5 – Paid Memberships Pro – The Best For Customization

Paid Memberships Pro is an excellent option for anyone looking at finding a plugin that offers more flexibility and customization. This plugin prides itself on being able to give its users an extensive range of tools and features that can help you grow your membership WordPress site while maintaining it, too. 

Customization options begin with restricted default content pages. Paid Memberships Pro allows you to create a custom message for non-members for when they attempt to access restricted content on your website. 

Another great customizable feature is the personalized content add-on. This tool lets you offer each paying member a unique page for direct communication with you, which is a great way to create more intimate content for your users. Personalized content also includes a custom homepage for different member levels and adjustable menus to highlight important links. 

On top of all this, Paid Memberships Pro gives you the option to customize your email account with a wide range of email templates to alter the appearance and content of your system-generated emails to members. 

If that wasn’t enough, Paid Memberships Pro has quite a comprehensive list of features that will benefit your every need, including: 

  • Content dripping
  • Multi-tiered membership levels 
  • Offline communities 
  • Customize renewal dates 
  • Membership manager role 
  • Integrate with several top plugins like MailChimp, WooCommerce, and Zapier 

Paid Memberships Pro is the most expensive plugin on this list—however, they offer a free version if you want to try it out and aren’t ready to commit to the full price. 

There are three pricing plans for businesses of all types: 

  • Free: This plan offers five features and includes the plugin download, 19 free add-ons, and six payment gateways 
  • Plus: $297 per year with support and updates for up to five sites 
  • Unlimited: $597 per year with support and updates for unlimited sites 

Both the plus and unlimited pricing plan include a 30-day money-back guarantee.

What I Looked At To Find The Best Membership Plugin for WordPress 

Now that I’ve narrowed down the top five picks, several key elements contribute to finding the right membership plugin for your WordPress website. These elements are crucial to finding the right membership plugin, and you need to weigh up the below criteria against your personal needs to make the right decision for your business. 

Business Goals

Your overall business goals matter when trying to find the right membership plugin for you. Simply put, each membership plugin caters to different goals, so it’s important to know what yours are. 

If you want to transform your business by creating and selling courses to your customer base, then a plugin like LearnDash would be an excellent option. This is because it’s the best online course builder, and it offers a range of comprehensive tools to utilize. 

Whereas if your ultimate focus is to create restricted content for members, it would be best to install Restrict Content Pro—where you will have access to suitable tools and features to make this goal a reality. 

Figuring out what your business goals are will help determine what membership plugin would be best for you. 

Flexible Payment Integration 

A key feature to look for in a membership plugin is a flexible payment integration option, which allows your customers to have a range of options for payment. Not everyone enjoys putting their credit card information into a website without added security. 

For example, the S2Member plugin has a standard Paypal button that’s integrated into your download. This means that your customers can pay for your content through PayPal. Proper payment security is paramount to make sure you maintain a recurring customer base. 

Some other common payment integrations include Stripe and Authorize.net. Having multiple payment options will give customers another reason to continue their membership. 

Membership Management

This is an especially important feature for larger businesses that have a lot of memberships to maintain. Having a specific membership management system integrated into your plugin will save you a vast amount of time on manual managing. 

MemberPress and Restrict Content Pro are great plugin options if you need a little extra help to manage your memberships. Without a dedicated management system, it will become increasingly challenging to manage your memberships while maintaining a certain level of professionalism in your business. 

Don’t be afraid to ask for help every so often. Running a membership site can be difficult, but the right plugin will make it easier and more straightforward. 

Summary 

Finding the best membership plugin for your WordPress website depends on several key elements like business goals, payment integration, and membership management. What makes the top five options great is that they either hit all the criteria or have a mix that can fully support your business. 

I recommend MemberPress and LearnDash for almost anyone if you want to transform your business with a membership site. MemberPress is an all-in-one plugin, which may seem broad. However, it offers every tool a business owner would need all under one platform. LearnDash is also great for anyone building and selling courses—which seems to be a common goal among membership sites. Both are affordable options for a business that knows its goals and needs a plugin to make those goals a reality. 

With that being said, the other three plugins are also excellent options for everyday tasks. 

The Top 5 Options for Membership Plugins for WordPress:

The post Best Membership Plugins for WordPress appeared first on Neil Patel.

How to Edit Paid Social Ads

Despite your best efforts and no matter good your team is, mistakes in paid ads are inevitable. Marketers and content creators alike can relate to the struggle of scrambling to correct grammar errors or an accidental gaffe to avoid further embarrassment.

To solve this problem, you need to understand how to edit paid social ads.

4 Reasons to Edit Paid Social Ads

I’ve published a lot of social ads in my career, and I can tell you it’s a relief to know how to edit paid ones. You can often easily correct minor errors—and recover from the potential fallout.

It’s worth the effort. Here’s why.

1. Typos Can Turn Audiences Away

A typo, misspelling, or improper grammar can lead ad viewers to form negative impressions of your brand. They may look at these mistakes and wonder: If this brand doesn’t care about something as seemingly simple as typos, grammar, or spelling, what else don’t they care about?

Understanding how to edit paid social ads lets you correct these issues, helping avoid ads being ignored.

2. Poorly Worded Ads Can Lower Conversions

Marketers and designers spend a lot of time planning and designing ads to generate conversions. Sadly, we can’t always turn our expectations into a reality.

Poor wording can sometimes be an experiment with what works and what doesn’t. In this case, some ads exceed expectations, but others end up with dismal results.

But, how things are worded can also just be flat-out confusing. If you’re not getting the conversions you expect from an ad, have someone with fresh eyes look at it to see if it makes sense.

To ensure your ad doesn’t go to waste, you may need to modify the caption, image, or ad targeting options.

3. Truncated Ads Need to Be Remedied

Another potential mistake is placing a long link or carousel card description. This could lead to essential information getting cut off on social media platforms like Facebook.

To avoid this scenario, you could keep your ads short and concise. You can use a preview to check whether an ad would get cut off before publication—or just look at the character count requirements before you start writing.

4. Successful Ads Can Be Capitalized on With Small Edits

If you create a wildly successful ad campaign, you can edit the end date or increase your budget. You could also make minor changes to help boost the ad’s overall impact—though be careful with this, because “if it’s not broke, don’t fix it.” With editing, there’s no need to re-upload or start from scratch.

How to Revise Paid Social Ads

Popular social media platforms usually provide PPC marketers with the option to edit paid social ads. However, the step-by-step process can differ based on the platform you’re using.

In the sections below, we’ll be covering the steps you can take to change paid social ads on Facebook, Twitter, LinkedIn, and other platforms.

How to Edit Paid Social Ads on Facebook

The Facebook Ads Manager lets users edit parts of an active ad, but not the entire thing. However, if you want to redo it all, it’s very simple to take down and post a new one with the same basic information and any necessary alterations.

If you’re facing this current dilemma, here’s how you can edit existing social ads.

Step 1: Go to Ads Manager and head to the Ads section.

How to edit ads on facebook paid ads

Step 2: Check the box beside the ad you want to modify.

Step 3: Click the edit button.

Step 4: You’ll need to deactivate the ad, which is a relatively simple process. For this example, we’ll use an ad that’s currently active and uneditable.

Under “Use Existing Post” within Ads Manager, switch out the ad you want to edit.

How to edit paid social ads in ad manager on facebook

Step 5: Now that the post is inactive, you can make the necessary adjustments.

How to edit paid ads on facebook

Step 6: Besides the text, you can also make the following edits from the side pane:

  • If you want to edit your ad title, delete the current one and replace it with your preferred name in the corresponding field.
  • If you want to change your page, select a different page from the dropdown.
  • If you want to modify a video or image, click “Edit” within the Ad Creative section and select the “Choose Media” option. Upload your preferred video or image file, click “Next” and “Done” options to finish.
  • If you want to alter your video or image’s specific placements, navigate to the placement group where you want to implement changes.

Step 7: Once you’re satisfied with the edits, return to the “Existing Post” section (in Step 2) and post the edited ad.

How to edit paid ads on facebook

And one last note on Facebook ads: You can post them directly to Instagram when you create them on Facebook. No need for two separate ad campaigns—unless you want to go that route, of course.

How to Edit Twitter Ads

The Twitter Ads Editor is used to manage and optimize campaigns.

Unlike most social media advertising platforms wherein you stay entirely on the site, Twitter campaign information is contained in a spreadsheet. You can download the spreadsheet and re-upload it to make changes to your ads.

Here’s how to access and edit your Twitter ads campaigns:

Step 1: Log-in to your ads account, head to the “Tools” drop-down, and tap “Ads Editor.”

How to edit an ad on twitter: ads editor

Step 2: Find your campaign by specifying its campaign objective or date. Another option is to type the campaign name in the search bar.

Bear in mind you won’t find the campaign if your selected date range is incorrect.

Select “Export” to download the spreadsheet.

How to edit ads in Twitter - adjusting settings

Step 3: Open the spreadsheet.

Each campaign usually has one row. However, campaigns with multiple ad groups will be represented by more than one row.

In the headers, you’ll see descriptions about what each column controls, formatting requirements, and whether this portion optional or required.

How to edit Twitter ads using a spreadsheet

Step 4: Make the necessary edits in the corresponding row. For instance, if you want to modify the campaign start date, head to column D and change it.

Not everything is editable: You won’t be able to change the funding source or campaign objective. You must create a new campaign if those alterations are needed.

how to edit paid ads on twitter - entering data in excel

Step 5: Save the Excel spreadsheet.

Step 6: Return to the Ads Editor tool in your Twitter account.

Step 7: Navigate to the “Import” tab, and upload the Excel spreadsheet. Afterward, click the “Upload & preview” button.

How to edit paid ads in twitter: uploading and validation of changes

Step 8: Once the file is uploaded, select the “Apply changes” button.

Step 9: A green “Success” message will pop-up to show the changes are good to go.

how to edit ads in twitter - success screen

How to Edit Paid Social Ads on LinkedIn

LinkedIn offers various sponsored ad formats such as carousel image ads, video ads, single image ads, and single job ads.

Sponsored ad content is usually created through the Campaign Manager—and referred to as “Direct Sponsored Content.” The type of changes you can make to the ad will depend on its ad type.

In general, you can edit ad names and introductory text in all types of LinkedIn ads.

Beyond those features, you can also edit the destination URL, ad image, headline, description, and call-to-action (CTA) for single image ads. You can edit the headline, CTA, and destination URL for video ads. There are limited editing options for single job ads and carousel image ads.

While the platform may have different ad formats, you can edit them by following the same steps:

  1. Log-in to your Campaign Manager account.
  2. Select the ad you wish to edit.
  3. Click on the “More” icon on the right side of the ad name.
  4. Select the “Manage” icon from the dropdown menu.
  5. Select the “More” icon at the right side of the ad you wish to change and choose “Edit” from the dropdown. From there, fix what you need to.
  6. Click the save button before leaving the page.

How to Edit Paid Social Ads on TikTok

TikTok provides PPC marketers the option to edit ad settings or campaign settings, even post-publication.

Step 1: Head to the TikTok Ads Manager and select the “Campaign” section.

How to edit paid ads in TikTok

Step 2: Next, choose to edit settings from either the “Campaign,” “Ad Group,” or “Ad” tab option. You can also browse across these sections until you find the option you wish to modify. Make the changes from here.

how to edit paid tiktok ads - campaig tab
How to edit ads in TIkTok using ad group function
How to edit paid TikTok ads - ad tab

Step 3: Once you’re satisfied with the changes, click “Save.”

How to Edit Paid Social Ads on Snapchat

Snapchat lets you edit the individual ad, ad set, creative, or campaign. There are different adjustments you can make under each option.

First, we’ll look at ad sets:

  1. Sign in to the Ads Manager in your Snapchat account.
  2. Tap “Menu” and choose the “Manage Ads” option.
  3. Tap “Ad Set” and select the “Edit” button of the Ad Set you wish to change.

Here, you can revise the ad set details, audiences, delivery, demographics, devices, and location.

how to edit paid snapchat ads

Don’t forget to save the changes!

If you want to edit an ad and not an ad set, return to the “Manage Ad” option (in step two). Click “Ads” and navigate to the ad you want to modify, then select the “Edit” button.

In this section, you can edit the status, ad name, and impression tags.

how to edit ads in snapchat - set details

Again, make the desired modifications and save.

If you want to change an ad’s creative aspect, return to the “Manage Ad” option (in step two). Now, click at the top corner and choose “Creative Library.”

How to edit paid ads - snapchat "manage ad" form

Click on the creative you want to edit and tap “Edit.”

Here, you can make changes to the attachment details, brand name, CTA headline, name, shareable, single image, or video media.

Make the necessary updates and select “Publish” when you’re done.

How to Edit Paid Social Ads on Instagram

Instead of editing Instagram ads, you need to delete your current promotion and resubmit the edited version. But, as with Facebook, it’s a pretty simple process.

Of course, as I mentioned under the Facebook section, you could just do one ad on Facebook and apply it to both platforms. If you plan to use both platforms for your paid social ads, that could save you some time.

But, if you’re wanting to focus on Instagram and need to revise a sponsored post, here are the steps to follow:

Step 1: Visit your Instagram profile.

Step 2: Select “Promotions” (as shown in this sample campaign).

How to edit paid ads on Instagram - promotions

Step 3: Select the “View Insights” button on the lower right corner.

how to edit instagram promotion ads

Step 4: Scroll down and choose “Delete Promotion,” highlighted in red. You’ll still be able to access the original post, but it will no longer be a sponsored social ad.

how to edit paid instagram ads - use promotion insights

Step 5: Head to your profile and find the original post of the ad you want to edit.

Step 6: Tap on the post and select “Edit.”

how to edit oaid instagram ads - find by the original post

Step 7: Make the necessary changes and save them.

how to edit instagram ads - make changes to original ad

Step 8: When you’re satisfied with the edits, promote the post again.

How to Edit Paid Social Ads on YouTube

YouTube has different ad formats, but they can generally be classified into two categories: Skippable ads and non-skippable ads.

YouTube ads can be created, edited, and managed within the Google Ads Editor.

Editing YouTube ads within the Google ads editor involves a reasonably straightforward process.

Step 1: At the campaign tree, choose the account with the campaign you’d like to modify.

Step 2: Choose “Ads.” You can then select the corresponding option based on your ad group format:

  • For “In-stream ads,” choose TrueView in-stream video ads.
  • For “In-stream ads” within the “Video – Drive actions” campaign, choose TrueView in-stream video ads.
  • For ads with a “Video discovery” format, choose TrueView video discovery ads.
  • For “Bumper” ads, choose Bumper video ads.
  • For “Outstream” ads, choose Outstream ads.

Step 3: Navigate to the edit panel and modify the final URL, status, or video ID. Another option is to upload an ad image by selecting “Choose image” within the “Companion banner” section.

Conclusion

Most popular social media platforms offer an option to edit paid social ads. As long as you know the right steps, you’ll be able to pull it off.

Editing paid social ads could help you improve your sponsored content’s results. Fixing even minor errors can make a huge difference.

If you need help getting your content marketing strategy off the ground, or need help growing the strategy you have in place, let us know!

How will you use paid social ads for your business?

The post How to Edit Paid Social Ads appeared first on Neil Patel.

Overtime – Episode #374 (Originally aired 1/22/16)

Overtime – Episode #374 (Originally aired 1/22/16)

The post Overtime – Episode #374 (Originally aired 1/22/16) appeared first on Buy It At A Bargain – Deals And Reviews.

New comment by chaigh in "Ask HN: Who is hiring? (February 2021)"

Legalist, Inc. (fintech) | First product hire | Full-time | Remote (US based) | Full-time

Legalist is hiring its first product hire (product lead). We’re looking for somebody who is comfortable wearing many hats; has a data science/data analysis background; and who wants to help build products that support Legalist, a multi-hundred million dollar fintech startup, across a number of esoteric investment strategies. An interest in law and/or finance is preferred, and a curiosity and interest in working creatively with data is essential.

This is a US-based remote team, and post-covid it will continue to be remote.

Link: https://boards.greenhouse.io/legalist/jobs/4000419004

The post New comment by chaigh in "Ask HN: Who is hiring? (February 2021)" appeared first on ROI Credit Builders.

The post New comment by chaigh in "Ask HN: Who is hiring? (February 2021)" appeared first on Get Funding For Your Business And Ventures.

The post New comment by chaigh in "Ask HN: Who is hiring? (February 2021)" appeared first on Buy It At A Bargain – Deals And Reviews.

Business Bridge Loans

What are Business Bridge Loans? How Can They Help a Business?

Business bridge loans? Of course every business needs money. No matter what you do, you need cash. Even nonprofits need it. It is the one constant in the world of business. Everybody needs money.

Cash flow isn’t always guaranteed. Many businesses have uneven cash flow. That is, lean times and not so lean times. Startups still getting their bearings may take a while before they get enough regular clientele to get consistent profits coming in. Seasonal businesses will naturally make more during the appropriate season, and perhaps leading up to it, but less later.

Even with uneven cash flow, a business still has bills. No matter what’s happening with your cash flow, you still need to pay the bills. Seasonal businesses need to stock up to be ready once demand picks up. Startups need to get their inventory ramped up so they can meet demand when it comes and not lose out on opportunities. None of this is free.

Every entrepreneur wants to be filling in the gaps. One solution to such uneven financing is bridge loans. Also known as interim financing, gap financing, or swing loans. Bridge loans bridge the gap during times when you need financing but you can’t get it yet. Both corporations and individuals use bridge loans. Lenders can customize these loans for many different situations.

What are Business Bridge Loans?

Business bridge loans are short-term loans. They are used until a person or company gets permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Business bridge loans are short term, up to one year. They have relatively high interest rates. And they are often backed by some form of collateral, like real estate or inventory. See investopedia.com/terms/b/bridgeloan.asp.

Business Bridge Loans Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

Uses for Business Bridge Loans

Bridge Loans and Venture Capital Financing

If a company is doing a round of equity financing, the round may be expected to close in six months. It may opt to use a bridge loan to provide working capital to cover its payroll, rent, utilities, inventory costs, and other expenses. This is to tide it over until the round of funding goes through.

Real Estate and Bridge Loans

Bridge loans are standard in real estate. If a buyer has a lag between the purchase of one property and the sale of another property, they may turn to a bridge loan. Property owners get short-term financing to pay for one property until another property sells. See expresscapital.com/resources/what-are-the-differences-between-a-business-loan-and-a-bridge-loan.

More Purposes for Bridge Loans

Companies may opt for bridge loans if they’ve gotten approval for a regular business loan but need interim funding until that loan comes in. Bridge loans can also come into play when a corporation is releasing an Initial Public Offering (IPO). Bridge financing, in investment banking terms, is financing used by companies before their IPO. It is meant to cover expenses from the IPO and is typically short term. Once the IPO is complete, cash raised from the offering immediately pays off the loan liability. See investopedia.com/terms/b/bridgefinancing.asp.

Differences Between Business Bridge Loans and Other Business Loans

Speed to Funding

Business loans often have a longer waiting period. The banks spend more time checking your background and credit history. Bridge financing can happen a lot more quickly. Application, approval, and funding are all faster.

Qualifying

A company can qualify for a bridge loan more easily than a long-term business loan. Bridge loan lenders understand that the loans they provide are gap financing, not long-term solutions. They can often customize the loan to fit the business’s needs. Bridge loan lenders have credit score minimums for bridge loans. But guidelines tend to not be firm.

Sometimes a debt-to-income ratio (DTI) comes into play. But a high credit score and low DTI aren’t must-haves. Hence qualifying for a bridge loan is easier and faster versus a traditional business loan. Bridge loan lenders may ask for future financing plans. Some may want to see the company’s forecast for expected funds. Or they may want a payback plan. If the company has a solid history of repaying loans, they should bring that documentation. It can help to get a favorable decision.

Interest and Origination Fees

Bridge loans are a little more expensive than a regular secured business loan. But a business may be more willing to pay more to get financing quickly. Creditors assign more risk to bridge loans than to conventional, long-term business loans. This comes from the fact a business is seeking a short-term loan because a long-term financing isn’t a viable option for the business. The interest rates vary but on average, bridge loan interest rates tend to fall about 2% above the average rate for long-term loans.  Many businesses find the interest rates acceptable because the loan is short-term.

Prepayment Penalties

Bridge loan lenders do not apply a penalty for paying the bridge loan off early. You can pay off a bridge loan early without paying an extra fee. Contrast this with most commercial loans. In most mortgage loans, e.g., the borrower pays a high penalty for paying the loan off early.

Since bridge loans are short-term solutions, companies benefit from paying them off early. Then they can apply for the long-term financing if necessary, without incurring fees, and without having to refinance the balance of the bridge loan into a long-term loan.

Risk

Bridge loans are often a type of unsecured loan. Hence there’s no attachment between the loan and a business asset like equipment or business property. A secured loan is one where an asset is placed into the agreement (collateral). With a collateral-based loan, the lender can try to repossess (take legal ownership) of the collateral if you fail to repay the money.

Due to the unsecured structure of many business bridge loans, the business takes on less risk, and the lender takes on more. Hence the business can be on a more stable footing than with a secured loan. There is typically nothing besides the money for the lender to take back. But recognize that if a business is failing and needs money to pay back a bridge (or any other type of funding) loan, then you may end up selling business assets anyway.

Collateral

Yet another difference is in the area of collateral. Business owners should expect to be asked for a first lien on any unencumbered enterprise asset. Perhaps even a second lien on working capital and other fungible resources. They may request a personal guarantee as a sign of the owner’s intention to work with the lender in good faith to repay the loan. The guarantee may, in some cases, be limited to the amount of the financing.

Repayment Terms

Bridge loans by definition have repayment terms of a few weeks, up to 12 months. Business owners must identify, in advance, the source of repayment and timing. The source of expected compensation affects how a lender views the soundness of the credit decision. For example, it is most likely that the lender will give a favorable judgment to a business that could qualify for a straightforward SBA loan after the execution of the transaction. In the case of the SBA candidate, the source of repayment, while not certain, is a matter of timing.

In contrast, a business relying on profit improvements has a harder case to make. The lender’s evaluation will change accordingly. Given the cost of the bridge and the considerations surrounding collateral requirements, it’s in the business owner’s best interests to carefully consider the exit plan. An entrepreneur should enter into this type of financing arrangement only when they can readily and safely identify a source of repayment. See businesscash.com/bridge-loans-for-small-business-advantages-and-practical-considerations-when-choosing-a-bridge-lender.
Business Bridge Loans Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

One Alternative to Business Bridge Loans is Account Receivable Financing

Businesses with outstanding receivables can turn to AR financing instead.  you can regularly secure money against receivables in as little as 24 hours. With AR financing, you can get monthly rates between 1.25% and 5%, and you can get financing as high as $20,000,000. All of this is possible, even with severely challenged personal credit.

Bridge loans may have certain minimum FICO requirements. But an accounts receivable financing program is perfect for business owners who have credit issues. Lenders are not looking for, nor do they require good credit to qualify. You can even get approval and be advanced 90% of your receivables, even with low credit scores.

Do You Have Credit Issues Now?

You can get approval with a personal credit score as low as 500, even if you have recent derogatory items and major collections on your credit report. Lenders truly do not care about your personal credit. They care more about the credit of the companies who you have the receivables with.

Another Alternative to Bridge Loans is Merchant Cash Advances

If a business has credit card sales, then a merchant cash advance can be a good alternative to a bridge loan. An MCA technically isn’t a loan. Rather, it is a cash advance based upon the credit card sales of a business. A small business can apply for an MCA and have an advance deposited into its account fairly quickly. So you can offer Net 30 terms, but not have to wait a month to get paid.

A merchant financing program is ideal for business owners who accept credit cards and are looking for fast and easy business financing. An MCA program is meant to help you get funding, based strictly on your cash flow as verifiable per your business banks statements. As a result, lenders in general will not have burdensome document requests.

Another Alternative to Bridge Loans is Business Revenue Financing

Business revenue financing is for companies with incoming revenues proven by business bank accounts. Also known as royalty-based financing. Business revenue financing is a way to raise capital from investors who get a percentage of the enterprise’s ongoing gross revenues in exchange for their investments. In a revenue-based financing investment, investors get a regular share of business income until a predetermined amount is paid. Often, this amount is a multiple of the principal investment. It is usually between 3 – 5 times the original investment.
Business Bridge Loans Credit Suite

Demolish your funding problems with 27 killer ways to get cash for your business. Get money even during the worst of a recession.

A Fantastic Alternative to Business Bridge Loans: Our Credit Line Hybrid

Get a line of credit for up to $150,000. This is no doc financing. Pay 0% for up to 18 months. Helps build business credit because your payments are on report. 680 or better FICO required. See my.creditsuite.com/qualifier-form.

This program is meant to help clients get funding strictly due to personal credit quality. Our lenders will not ask for financials, bank statements, business plans, resumes, or any of the other burdensome document requests that most conventional lenders demand.

Our lenders will review your credit report to ensure there are no derogatory items on the report. To get approval, you shouldn’t have any open collections, late payments, tax liens, judgments, or other types of derogatory items on your reports.

To qualify you should also have fewer than 5 inquiries on your credit report, within the last 6 months. You should have established credit. This includes open revolving accounts currently on your credit report, with balances below 40% of your limits.

Business Bridge Loans: Takeaways

Bridge loans are a means of covering gaps in financing due to various causes. They are faster to get than traditional business loans. But rates can be higher. And terms are a lot shorter. There can be minimum FICO score requirements.

For entrepreneurs with decent FICO scores, the Credit Suite hybrid credit line can be the perfect alternative to a bridge loan. And you build business credit at the same time! Let us show you how.

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