Issue link: https://nebusinessmedia.uberflip.com/i/1452735
wbjournal.com | February 21, 2022 | Worcester Business Journal 19 no collateral requirements. Whether or not your business qualifies is based on personal and business credit scores as well as the business's overall financial picture. 4. What financial covenants do I need to be aware of? These are designed to mitigate lender risk or get both parties back to the table if the company isn't performing as expected. Terms may require the business maintain sustained cash flow and/or profitability. Look terms over carefully and include your accountant in the discussion. A breach can result in the lender gaining the right to charge a higher interest rate, collect collateral, or even call in the loan. 5. Are there penalties for late payment or paying off the loan early? Pre-payment penalties are typically a percentage of the total loan and lenders do it because they will be losing interest income revenue. Any fees, including late-payment penalties, should be disclosed in your loan offer or final agreement. A good lender will be completely transparent and happy to answer all your questions. The relationship may start with getting the loan, but ultimately your lender is a partner and resource. A business loan can get you the money you need to jump start a new venture, expand current operations, or purchase equipment. Lenders have many different options from U.S. Small Business Administration loans to lines of credit. ere are varying costs and terms associated with any type of loan, so make sure you know the specifics. 1. Is my interest rate locked in? Business loans may have fixed or variable interest rates. A fixed-rate loan locks in the payments for the life of the loan. You know the total cost of the loan from day one. A variable- rate loan may have a lower interest rate to start, but that rate is tied to a market index that can fluctuate, causing payments to change. 2. How much are the closing costs? All loans have associated fees. ese may include an underwriting fee for reviewing and verifying loan application information and closing costs associated with servicing the loan. Fees vary based on the loan size, loan type, repayment term, and the financial health of the business. ey can add up, so ask whether you must pay them at the loan closing or if they can be rolled into the payment schedule. By Breanna DiBella Breanna DiBella owns Worcester creative & marketing agency Studio DiBella. Reach her at bree@ studiodibella.co. Hiring is always tricky, but investing in cre- ative talent to help your business can be a massive brand differentiator and solve marketing challenges. I collaborate with creatives across disciplines to help clients achieve their goals. I've seen first-hand how bringing on the right creative talent can transform any project from ordinary to extraordinary. 10) List your needs. Seeking a strategist, designer, developer, or another specialist? Do you have time to manage the talent, or will you need project management support? If you're not sure what you need, hire a creative consultant to help you identify your needs. 9) Identify your budget. From freelancers to big agencies, the cost of creative talent is on a vast spectrum. Knowing your bud- get narrows the talent search, minimizes your risk, and saves you time. 8) Seek inspiration. Know what you're aspiring to achieve and what you don't respond to. Doing a little research can save you time and money. 7) See something, say something. Impressed by another company's creative work? Take the opportunity to tell them, then ask who they work with. It could bring a valuable referral. 6) Attract talent with a job listing. If you're looking to fill an in-house role, the wording of your job listing matters. Be specific, highlight perks, and spice up your boilerplate descriptions to entice prospects who value creativity. 5) Review portfolios. Always review previous work. Do they have a portfolio? Does the quality match your standards? Do the examples intrigue you? If you don't love it, keep looking. 4) Ask for references or testimonials. This is standard in HR departments, but it can be overlooked if you get swept up in the flashiness of someone's work or charming personality. Don't skip due diligence. 3) Ask how they collaborate. Creative work almost always requires collaboration and constructive criticism. How someone responds to this inquiry will be telling. Ask for a specific example of how they adapt- ed to criticism they didn't agree with. 2) Have a brief and a contract. Outline clear needs and set expectations for the future. 1) Respect the specialists. Most cre- atives pursue a specific skillset niche, and there are even style-, software- and indus- try-specific niches within each skill set. K N O W H O W What to know before taking out a business loan O pen communication leads to a better work culture. So it stands to reason soliciting more employee feedback on management, company policies, and operational processes can only be a good thing. More team feedback also brings opportunity for you to improve as a manager and contributes to higher motivation, more job satisfaction and lower turnover. Here are some important points regarding employee feedback. It plays into The Great Resignation. According to Forbes' Benjamin Laker, employee flight is certainly connected to the pandemic, the desire for higher salaries, and burnout. But he cites a Wakefield Research and Explorance poll of 2,000 employed adults showing a hidden driver is also that many American workers don't feel heard. "Nearly half (41%) of Millennials said they don't believe their feedback leads to meaningful organizational change and more than half (53%) reported they're looking for a new job. e lack of attention to employee feedback is felt at all levels, according to the study," he writes. Find what works. is means settling on a feedback method and frequency. is could include asking employees questions during performance reviews, conducting anonymous surveys, or holding team meetings, according to Indeed.com. Also decide on a frequency: Annual survey responses aren't likely to be very effective or taken very seriously. But a few questions each month on management and operations show a company interested in improvement – with employees' input as part of the equation. Don't forget online employee reviews. ere are employees who just won't ever share feedback while employed for your company. But once they move on to another job, they have lots to say. It's important your HR department monitor sites like Glassdoor, CareerBliss, and Great Place to Work. "Claim your employer page and sign up for alerts, where applicable, to see feedback from your current and former employees as it's shared," advises SaplingHR.com. 1 0 T H I NG S I know about... ... Hiring creatives BY SUSAN SHALHOUB Special to WBJ 101: E M P L O Y E E F E E D B A C K M A T T E R S BY CHRISTOPHER WATSON Special to WBJ W W W 3. What collateral do I need? You may be able to use personal assets such as stocks or real estate as collateral if business assets aren't sufficient. Accounts receivable and future revenue may be considered. The collateral requirement depends on the loan-to-value ratio set by the lender. For example, an 80% LTV means you can borrow $80,000 if you pledge collateral worth $100,000. There also are unsecured loans with Christopher Watson has more than 30 years experience in commercial lending and is senior vice president and senior lending officer of the business banking division at Webster Five in Auburn.