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It doesn’t matter whether you operate a B2C retail location or a B2B consulting company, customers tend to like flexibility when it comes to paying, which often means paying on credit. 

A merchant account can give you the tools needed to accept and reconcile different types of payments more efficiently.

Merchant accounts can often get confused with payment processing—which is only part of the merchant process. Here, we’ll break down what a merchant account is, how it works, and how you can apply for one today.

What is a merchant account?

Merchant accounts are specific accounts that give small businesses the ability to accept various customer payment methods more easily—most often debit and credit card payments.

With a merchant account, you can accept different types of credit cards and digital payments without managing multiple accounts across different payment methods. 

Merchant accounts are run by merchant-acquiring banks that handle communication and transactions between customers and businesses.

A merchant account itself is not a transaction account

As a business owner, you won’t have direct access to the funds in your merchant account. You won’t be able to withdraw or deposit money. However, the merchant account will deposit money into your bank account—usually within 48 hours after the charges occur.

Think of your merchant account provider as a facilitator between credit card companies and your bank. 

The merchant services provider will streamline your fee payments and customer charges so your finances stay organized for easier bookkeeping—and so you don’t have to manage all the heavy lifting. 

Merchant accounts and merchant services aren’t always the same thing

It’s important to note that merchant accounts are not always synonymous with merchant services.

Square, one of the more notable names in the merchant space, does not provide a proper full-service merchant account. 

While many of the functionalities are the same, Square is more specifically a payment service provider.

How does a merchant account work?

Credit card usage is actually quite complex when you view it from the position of the business.  Here’s what happens when a customer charges a card to your business:

1. Your business communicates the customer’s card information with the merchant bank. 
2. The merchant bank then contacts the card processor and the card issuer.
3. The card issuer runs through a series of approval checks (like fund availability) and security reviews. 
4. Once reviewed, the approval is sent back to the merchant bank. 
5. The merchant bank authorizes the transaction and releases the funds to the business.  

While this process seems complex, modern technology has sped up the process to happen in a matter of seconds. 

During each step of the process, the business will accrue various processing fees and costs. 

Your merchant account allows for all of this, and more, to be taken care of in one place, instead of you having to accept payment from customers and then pay back fees, declined payments, and other corrections later.

How does pricing work for a Merchant Account?

As you research merchant service providers, you may encounter different business models and payment structures. 

There are two common ways to pay for merchant account services:

1. Flat Pricing

With this option, you’ll pay the same amount on every transaction. This typically exists as a percentage of the whole, plus an added fee. 

For example, you can expect to pay between 1.7% and 3% plus a $0.25 fee per transaction. 

If a customer makes a $100 order and you have a 2% fee agreement plus $0.25, then you would pay $2.25 to your merchant provider (each time that happens). 

Flat pricing is the easiest to calculate—it’s also beneficial if you don’t expect your charges to fluctuate much within a set range.  

Flat-rate pricing may not always be the best option for high-volume businesses, as it can get expensive over time.

2. Interchange Pricing

With interchange pricing, your business pays different rates depending on the type of cardused by the customer. 

For example, MasterCard charges different rates than American Express, who charges different rates than Visa, and so on.

Consider how certain businesses don’t accept certain credit providers. That’s likely because they want to accept higher fees associated with those brands.  

Some merchants offer hybrid payment structures including both flat and interchange pricing—though this is much less common.

What Fees Will You Pay With a Merchant Account? 

Transaction fees are only one part of the cost associated with a merchant account. Additional fees and costs might include:

• Assessment fees: Established to create fraud checks and prevent false charges. These typically range from 0.13%–0.15% per transaction.
• Monthly or annual fees: Charged as flat rates for using the service. 
• Statement fees: Created to cover the costs of printing and mailing your business statements. These can be avoided by using online statements.
• Retrieval requests: For when customers dispute or cancel orders. If the merchant services team or credit company needs to review a purchase, then you’ll be charged a fee for their investigation. 
• Set up and admin fees: One-time or periodic charges for service installation and software/product updates.
• Termination fees: If you decide to break your contract early, you’ll likely be charged early termination fees.

Some of these fees are standard within the industry and can’t be avoided. 

However, you may encounter some new fees that seem to lack any purpose or benefit to you. If you think you are being overcharged, it may be time to reconsider your merchant account provider.

How do you get a merchant account?

Applying for a merchant account is similar to opening a bank account or working with a credit card provider. 

You’ll need to provide documentation related to your business and work through an approval process.

Merchant service companies take on risks by working with your company and therefore need to carry out an underwriting process, to ensure you’ll cover any lost costs in case of hardship. 

To open your merchant account, you will file an application with a provider—in most cases, this can be done online.

What you’ll need for your merchant account application:

• A registered business
• An Employer Identification Number (EIN) 
• Business bank account details
• Financial statements (bank statements, tax returns) 
• Up-to-date business licenses
• Your contact information and home address
• Your social security number

Like in any underwriting process, the merchant account provider will review your forms and ask for any supplemental information as needed. The greater the perceived risk, the more information the underwriter will need. 

Once your application is approved, you can begin your working relationship with your merchant services provider. 

The process can be done in a few days if you are a lower-risk business, though it typically takes a bit longer—and can take several weeks for high-risk businesses.

Learning ways to grow your business

In the first few years of your business, you’re typically focused on infrastructure and foundation-building. You’ll set up various processes to make your bookkeeping easier and customer service better. 

A merchant account is a great way to save time and process credit card payments more easily and accurately. 

To learn more about establishing your business and growing your sales, Lendio has a comprehensive resource center that covers everything from filing business taxes to optimizing your profit margin.

Business credit cards can be an excellent tool to finance your small business. 

But should you open a new business credit card? Is now the right time? Would it be better to wait or look for other forms of financing?

In this article, we’ll cover when you should (and shouldn’t) apply for a business credit card, the benefits of doing so, and how you can prepare to apply.

Why get a business credit card?

The short answer: Because it allows you to reap cash rewards, travel, hospitality, and dining benefits, and future credit priorities simply by spending money you were going to spend anyway.

Now, that is assuming you have certain elements in place (which we’ll touch on later). 

In most cases, though, a credit card can help you manage day-to-day expenses while boosting your working capital.

Benefits Of Business Credit Cards

Regardless of the size of your business, there are many benefits to having and using a business credit card.

1. Higher spending limits

Many business cards have credit limits of $50,000 or more—typically much more than what you’ll get with a personal credit card.

Large costs can arise unexpectedly—having a high spending limit means you’re ready for those costs when they come.

2. Business perks and rewards

Many creditors offer attractive perks that can help you pay for travel expenses and business supplies, while earning cash back and potentially building airline miles.

Different business cards offer different reward packages, so do your research before applying. Some cards cater rewards more towards travel, while others will cater more towards ongoing business expenses or cash-back rewards.

3. Separate and categorize expenses

Many business credit cards offer detailed monthly and quarterly expense tracking. This saves a significant amount of time during tax season.

Instead of pouring through receipts to organize and categorize expenditures, you’ll be able to rely on credit statements for easier spend tracking, by category.

You can also separate your personal and business expenses, which makes for easier tracking, but also protects your personal assets from creditors.

4. Boost and build your credit score

As with any credit card, when you make payments on time, your credit rating improves quickly. 

Building business credit is crucial to qualifying for better rates and terms on business loans. The better the credit score, the better the loan offers you’ll receive.

Whether you have no credit, bad credit, or good credit, using a business credit card can help you continue to build a more positive credit profile and boost your credit score.

5. Monitor employee spending

Most business credit cards allow you to issue employee cards with limits (that you set).

This allows you to delegate spending processes and approvals more easily while monitoring how your team is using their employee cards.

What is a business credit card used for?

You can use a business credit card to finance just about any business-related expense. Typically, business cards are best suited for ongoing, necessary expenses, (hopefully) not too large in size.

For example, you could use your card to:

• Finance inventory or equipment
• Invest in marketing
• Take clients out to lunch
• Pay for flights and event expenses

When NOT to get a business credit card

1. To pay off another credit card

You don’t want to secure a credit card to pay off another credit card—that’s a recipe for disaster. 

Only apply for a business credit card if you have the means to pay it off every month. 

Extra working capital is excellent for your business, but it can cause a major catastrophe if you begin piling on the credit card interest.

2. To make a large one-time purchase

If you need funds for a big one-time investment, it’s better to use other financing options like a term loan, a line of credit, or equipment financing. 

Your credit score will be negatively impacted if you continue to use the majority of your credit limit, demonstrating to lenders that you’re operating to the extent of your means.

Credit cards are great for taking care of small, ongoing expenses. There may be times where you need to use credit to cover unexpected costs, but ideally when you have an established card already. We do not recommend applying for a business credit card if your sole purpose is to cover a large one-time payment.

How to apply for a business credit card

The application process for a business credit card is similar to applying for a personal credit card—you’ll just need a bit of extra information to describe your business.

What do you need to apply?

• A good credit score—while not completely necessary—is certainly beneficial. If you still haven’t formulated how you plan to use your business credit card, you may benefit from using a personal card in the interim to build your credit score before applying.
• Proof of identity. Prepare to present your social security number or Taxpayer Identification Number (TIN).
• Personal information: Name, address, date of birth, income, and other general information will be required.
• Business information: Business type, industry, time in business, contact info, company size, balance sheet data (revenue and expenses), and tax information (if different from personal).

When should you apply?

There’s no one-size-fits-all all answer to this question, but generally, you want to be in one or multiple of the following situations before you consider applying for a new business credit card:

• You have predictable revenue
• You have consistent spending plans
• Expenses are in control
• Your personal credit is better than fair

What to consider when applying for your business credit card

Different cards have varying annual fees, interest rates, credit limits, and eligibility requirements—it’s best to do your homework before choosing one.

Here are a few important elements to consider when evaluating your options:

• Bonuses and Rewards: Many of the best credit cards offer introductory interest-free periods and ongoing rewards. You can earn everything from cash back to free flyer miles. Choose a card with easy-to-use rewards—if you’re not planning on doing any travel soon, look for cards that offer cash-back rewards, software discounts, or expense benefits on food and other necessities.
• Annual Percentage Rate (APR): The card’s APR shows how much you’ll owe if you carry a balance past the payment period. 
• Minimum Payment: If you can’t pay off your card’s balance each month, you’ll need to make at least the minimum payment. This minimum could be a fixed amount or a percentage of the remaining balance.
• Foreign Transaction Fee: If you’re using your card abroad, you’ll have to pay foreign transaction fees. These are usually around 2–3%, but some credit card issuers will sneak in higher rates—so do your research if you plan to travel.

So should you open a new business credit card? It depends. If you need additional working capital and can pay off your cards each month responsibly, then by all means—go right ahead. However, if you’re looking for another business credit card to help with your current debt issues, it’s best to look for a fix elsewhere.

If you choose to open a new business card, let us help. Fill out our 15-minute application to access card offers. You’ll get to see which cards you qualify for before choosing the one you need.After choosing your card, you can get approved the same day. Get started now.

Multiple studies have found that small business owners are happier—and healthier—than traditional employees. Being your own boss can be stressful at times, but many people find the process to be exhilarating and more rewarding. 

The truth is, though, there are always going to be challenges to starting a new business—especially in your first year of operation. Here, we’ll highlight the common challenges you need to be aware of when starting a business, and how to best prepare for them. 

Common challenges of starting a business you should prepare for

There are a variety of intimate details across funding, taxes, profitability, and sellability, that you won’t be able to truly grasp until you’re in the throes of running your business—since they require deep, timely context to do so.

Once the ball is rolling, you’ll need to prepare to face the following.

1. Having enough funding to maintain and grow operations

Securing capital is one of the biggest challenges for new business owners.

For many business owners, the need for cash is a catch-22: you need money to pay for equipment and inventory, but you can’t make money without the equipment and inventory. As a result, would-be entrepreneurs turn to various funding methods to get the capital needed to cover expenses until they start generating revenue from the business itself. 

You have multiple options available as you seek funding for your business. Each of these options comes with different pros and cons depending on your budget and goals for growth. 

• Seek a business loan. If you lack the needed funds to start your business, work with a financial institution to secure a business loan. You can work with these creditors on a reasonable monthly payment plan with flexible interest rates and terms. Lendio curates multiple loan types for business owners to review and apply for.
• Work with private investors. Angel investors and venture capitalists are always looking for the “next great idea.” Some investors won’t expect payment for a few years as your business grows, giving you the flexibility you need to spend money. However, they may want regular reports on your performance and can also request a say in the decision-making process because of their shareholder status. 
• Bootstrap your business. Bootstrapping occurs when you pull funds from your own pocket to start a business and operate that company as lean as possible. With this type of funding, you won’t have additional fees or interest to repay—but few people have the liquid capital on hand to cover all of their costs for the first few years. 
• Crowdfund from the community. Crowdfunding has become increasingly popular to raise money for your business. With this model, dozens of people from the community donate to your business idea. You can either pay these people back or offer discounts for donors who support your company.  

You’ll likely need a combination of options to fund your business. For example, you may start by self-funding the business and reaching out to friends, family, and colleagues to become private investors over time. 

Once you’ve established some fluid business, you can begin exploring small business loans and private investors to fuel more accelerated growth.

2. Creating a Realistic Operating Budget

It’s estimated that 82% of businesses fail due to poor cash management—so take a proactive approach to managing your money within your first year. 

Creating and sticking with a budget is an important step. This process includes not just setting a budget, but also understanding when you need to adjust your spending.

The first thing to do: get organized. Ensure that you have a process for tracking your expenses and labeling each purchase so you can sort through them later. (This will also be immensely helpful during tax season.) Once you have transparency, you can start adjusting your levers and setting budget goals and expense expectations. 

Developing a business operating budget isn’t that much different from managing your personal expenses. If you want to save money, you review where your income goes and learn what can be cut and what needs to stay.

One thing to keep in mind during this budget development process: your priorities and needs are going to change. You’ll need to spend more, for example, during peak seasons to advertise more or scale inventory. That’s okay, for now.

If developing and managing a budget still feels intimidating, consider consulting with an accountant or looking into budgeting software. 

3. Paying taxes accurately and strategically

Filing taxes is a source of stress for many Americans, even those who have full-time employment with a single company. 

Some people are afraid of underpaying and being audited, while others feel confused by the IRS verbiage—so they rush through their forms or hand off their documents to an accountant. 

As you launch your small business, taxes will become more important—and more complex. You’ll have to pay different amounts if you’re self-employed, and you’ll have to maintain a list of deductions to report as business expenses. 

Even when you have these nuances figured out, you may come across other challenges and requirements as you begin to scale and hire employees. 

Tracking deductions is one of the hardest—and most important—steps in tax preparation. The government frequently creates new rules for what can be deducted and by what amount, so it can sometimes feel like trying to hit a moving target. 

However, there are some standard deductions (marketing expenses, insurance costs, education, etc.) that you can write off. As you begin to file your taxes, identify which expenses can qualify as deductions in order to reduce how much you need to pay. 

The good news: if you take time in your first year to categorize your expenses correctly and develop good bookkeeping habits, you can put yourself in a great position for tax season.

4. Optimizing your business for profitability

As you grow your business, you’ll discover that you have multiple levers to pull to increase profitability. You can save money by reducing costs, or you can adjust your products and prices to increase your margins. 

Companies make minor adjustments to their product lines frequently. They debut new items to appeal to customers and change their products to meet customer demand (like fast-food chains going “all-natural”). 

Within the first few months of opening, you may decide that you need to change up your products to help your business succeed. Fortunately, there are many ways to do this. A few options at your disposal include: 

• Eliminating products and services that don’t sell (does your pizza restaurant really need a hamburger on the menu?)
• Eliminating items with low profit margins (high-cost items, products that take a long time to make, or items from vendors with difficult contracts, for example) 
• Launching new items based on trends and customer demand (what brunch restaurant doesn’t offer avocado toast?)
• Creating product bundles to sell high-margin items along with low-margin products
• Negotiating better deals with your vendors to pay less for goods
• Adjusting your materials sourcing and costs to pay less before assembling your products
• Investing in technology to speed up the production process and scale your abilities 

As you can see, many factors affect the profitability of your business. You have the final price that you list your product to sell but also the costs of labor and materials to assemble these products. 

Over your first year in business—and likely beyond—you will need to continue to adjust and optimize your products or services, as well as the resources invested in them, to improve your bottom line. This should always be a focal point of your business.

5. Building an effective marketing plan (that’s optimized for long-term)

In the same way that your products and services will likely change as your business grows, so will your marketing strategy. In fact, as you consider how you promote your business, you might develop a 3-part plan: pre-launch, launch, and post-launch/maturation. 

During the pre-launch process, your main focus may be on name recognition and making customers aware that your business exists. 

The goals for your marketing efforts will likely focus on maximizing your reach (getting in front of a large number of people) and connecting with potential customers on social media and via email so you’re top-of-mind when you eventually open.

When your business launches, your marketing goals will change, however. 

Once your business starts to mature and you develop a healthy customer base (typically 6 months to a year in operation), you can adjust your marketing materials for long-term success. At this point, you’ll have accrued some data over time, and be able to start optimizing for your ideal customer profile. 

Your marketing campaigns will then require you striking a balance between retaining the customers you brought in during your launch and encouraging new ones to try your brand. 

Some business owners seek marketing firms that specialize in business openings and product launches. These experts can make sure your business gets noticed when you open, ensuring that you hit the ground running.

6. Hiring the right employees and growing your team

Once your business starts growing and your customers fall in love with your products, you can start to expand. At this point, you can begin to delegate more and more across every aspect of your business.

It’s during this time that you might considerexpanding your existing staff with new members.

Neil Patel created a useful guide for determining when your company is ready for a new hire. His main indicator: you’ve had to turn down work from customers or can’t fill the existing demand for your products or services. 

Turning down work doesn’t always mean your customer will come back when you’re ready for them. You could lose customers in the long run if you can’t scale your efforts to meet their needs. 

Think about the cost of acquiring a new customer versus retaining one. Once you start limiting your existing customers or turning leads away, your company is losing money while its marketing costs are increasing. Don’t think of your new hire as an additional expense but rather an asset to help you scale. 

Fortunately, there are multiple options for taking on additional talent. You can contract out work until you have enough demand to bring on a full-time employee. You can also take on paid interns to help with basic work and then train them to become staff. Finally, you can hire part-time work with the goal of bringing them on full time once your business grows into it. 

Remember, taking on a new hire isn’t just an expense or opportunity for growth—they’ll also take time from you. You’ll need to train them, manage them, and work alongside them to meet the demand of your customers.

Additional challenges entrepreneurs face

While this guide has covered many of the big obstacles that startup businesses face, you’ll also need to overcome several miscellaneous challenges during your first year. A few common tasks and mishaps that business owners face include:

• Creating company documents and infrastructure. Within the first year, you’ll likely create a company handbook as well as several policies and rules for how your business operates. 
• Investing in the right tools and software. It’s hard to know what’s on the market and able to help you, from choosing a good financial management app to setting up widgets and plug-ins for your website. 
• Finding quality networking opportunities and forming partnerships. It’ll take time to find networking groups within your community that can benefit you. However, once you make these connections, you can grow your business. 
• Developing safety procedures and cybersecurity training. You’ll need to make sure your employees are safe—along with your digital assets and sensitive financial information.   
• Identifying your competitors and your relationship with them. Some companies work well alongside their competition, while others face challenges—and even direct attacks. 
• Establishing a work-life balance. Opening a business is a marathon, not a sprint. Learn how to take time off to recharge so you can move your business forward. 

Each of these challenges can be overcome with creative problem-solving and a determination to move your company forward.

Launching your business with an eagerness to learn

Each new business owner will face unique challenges and roadblocks during the first year. For some people, the idea of managing the company’s ledgers and tax forms is overwhelming. For others, managing employees or handling customer feedback can create stress. 

However, if you can identify and admit what you need to learn, you can take steps to resolve mitigate any risks. The best way to survive your first year in business and to continue growing for years to come is always to be eager to learn—knowing that some of that learning is going to come from making mistakes.

SBA loans are managed by banks as well as various online and nonprofit lenders. The Small Business Administration (SBA), which oversees this program, provides annual reports detailing the number of loans approved by each lender. Below, we highlight the SBA lenders that issued the highest number of SBA loans in 2023, categorized by program.

Best SBA 7(a) lenders for 2024.

The SBA 7(a) loan program remains the most sought-after option, offering flexible terms and various uses like working capital, equipment purchases, and real estate. Here are the top SBA 7(a) lenders (excluding Express and Community Advantage) by loan approval count, along with key details:

Best for speed to funds.

BayFirst National Bank

BayFirst offers standard SBA 7(a) loans and a specialized "BayFirst Bolt Loan" product--a loan up to $150,000 with expedited processing times. They are an SBA-approved lender.

Funding amount: Up to $5 million- General; Up to $150,000- BayFirst Bolt Loan

Term length: Up to 25 years- General; Up to 10 years - BayFirst Bolt Loan

Minimum credit score: 675 - General; 700-BayFirst Bolt Loan 

Time to funding: 2 weeks - General; A few days - BayFirst Bolt Loan

Best for a comprehensive business solution.

Newtek Small Business Finance

Newtek provides comprehensive solutions for businesses from SBA loans to business insurance and payroll processing. They are an SBA-approved lender.

Funding amount: Up to $5 million. 

Term length: Up to 25 years. 

Minimum credit score: Not disclosed

Time to funding: Not disclosed

Best for large loan amounts.

Live Oak Bank

Live Oak Bank is an online financial institution that specializes in providing a substantial volume of larger SBA loans, with an average loan size of $1.7 million in 2023. As an approved SBA lender, they are well-positioned to support businesses seeking funding.

Funding amount: Up to $5 million. 

Term length: Up to 25 years. 

Minimum credit score: Not disclosed

Time to funding: Not disclosed

Best non-bank lender.

Ready Capital

Ready Capital is a non-bank lender focused on SBA and USDA loans. They are an SBA-approved lender.   

 Funding amount: Up to $500,000 through IBusiness Technology Platform

 Term length: Up to 25 years. 

 Minimum credit score: 640

 Time to funding: As soon as six days after approval

Best for customer care.

Cadence Bank 

Cadence Bank provides a variety of SBA loan products backed by excellent customer service, and they are an SBA-approved lender.

Funding amount: Up to $350K

Term length: Up to 10 years. 

Minimum credit score: 650. 

Time to funding: As soon as two weeks

Best Community Advantage lenders.

A Community Advantage loan is a type of SBA 7(a) loan specifically designed to assist underserved markets by financing small businesses that may not qualify for traditional bank loans.

Below, we detail three noteworthy lenders who funded the most Community Advantage loans in 2023:

Best for businesses in major cities

CDC Small Business Finance Corporation

Small Business Finance Corporation provides loans to startups and small businesses across several major metropolitan areas. They serve a variety of industries, with dedicated specialists focusing on home healthcare and childcare sectors. Additionally, they offer complimentary business counseling to support their clients.

Funding amount: $10K-$350K

Term length: 6-10 years

Locations: Arizona; Atlanta, Georgia; California; Dallas-Fort Worth, Texas; Detroit, Michigan; Miami, Florida; Nevada, Washington, D.C. Metro Area

Requirements: No minimum credit score, sufficient cash flow to meet payments, business projections for early-stage/startups

Works with startups? Yes, with a 10% downpayment and management or industry experience

Best for businesses in Southern states

LiftFund

LiftFund provides access to capital for small businesses and startups throughout the Southern states. LiftFund also partners with other organizations to offer specialized loan programs to veterans and businesses in certain cities.

Funding amount: Up to $350K 

Term length: Terms usually range from 7-10 years.

Locations: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Missouri, Mississippi, New York, New Mexico, Oklahoma, South Carolina, Tennessee, and Texas.

Requirements: Cash flow sufficient to meet payments

Works with startups? Yes with 20% owner injection.

Best for businesses in Wisconsin

Wisconsin Women's Business Initiative Corporation 

This nonprofit organization specializes in providing financial and educational resources to entrepreneurs in Wisconsin. In addition to loans, the nonprofit offers one-on-one business coaching and operates as a Veterans Business Outreach Center.

Funding amount: Up to $350K

Term length: Up to six years 

Locations: Wisconsin

Requirements: Business plan with three years of financial projections

Works with startups: Yes- if the owner has extensive industry experience.

Top SBA Express Loan lenders.

A subset of the SBA 7(a) program, SBA Express loans are designed to provide rapid access to financing for small businesses, with approval times significantly shorter than traditional SBA loans. Below are the top three SBA Express loan lenders of 2024 based on number of SBA Express loans approved in 2023:

The Huntington National Bank

Huntington National Bank is one of the most experienced SBA lenders having approved the most SBA Express loans in 2023. Current customers can apply online for a loan of up to $350,000. The bank also runs the Lift Local Business Program which supports minority, woman, and veteran-owned small businesses through business planning support, free financial courses, and loans with reduced fees and lower credit requirements. They are an SBA-approved lender.

TD Bank

TD Bank provides SBA Express Loans of up to $350,000 and features an online application for loans up to $250,000. Beyond their loan program, the bank also manages an equity fund specifically designed for SSBICs and CDFIs, aimed at offering small business loans to minority-owned and women-owned enterprises. As an SBA-approved lender, TD Bank is committed to supporting diverse business initiatives.

U.S. Bank

U.S. Bank also offers Express loans up to $350,000 with an online application available for amounts up to $250,000. The bank also offers a Business Diversity Lending program for minority, women, and veteran-owned businesses for loan products outside the SBA program. They are an SBA-approved lender.

Top SBA 504 Loan lenders.

SBA 504 loans are designed to provide financing for major fixed assets, such as real estate and equipment. SBA 504 loans follow a 50-40-10 model where 50% of the total loan amount comes from a bank loan, a Certified Development Company (CDC) provides 40% in the form of a debenture or bond, and the remaining 10% is the down payment from the small business owner. 

A Certified Development Company (CDC) is a nonprofit organization that facilitates the SBA 504 loan program. Each CDC operates within a designated area and is tasked with working closely with small businesses and lenders to approve and process 504 loans. We list the CDCs with the greatest amount of CDC loans approved in 2023 below. You can search for a CDC that operates in your state on the SBA website.

How to find an SBA microlender.

An SBA microloan is a loan of up to $50,000 administered by a nonprofit lender. Similar to a CDC, these lenders operate locally. To locate an SBA microlender, start by visiting the SBA’s official website where a list of approved lenders and resource partners is available. You can also utilize the SBA’s local district offices as they often have details on microlenders in your area.

How to choose an SBA lender.

Selecting the right SBA lender involves considering several factors. Here's how to make an informed decision:

Evaluate Your Needs 

Determine the type of SBA loan that best suits your business needs. Whether it's a 7(a) loan, a 504 loan, or a microloan, understanding your requirements will help narrow down your choices.

Compare Lenders 

Research and compare lenders based on their loan offerings, interest rates, terms, and customer reviews. Look for lenders with a strong track record of supporting businesses similar to yours.

Seek Personalized Service 

Choose a lender that offers personalized support and guidance throughout the loan process. A dedicated loan officer can help you navigate the complexities of SBA lending and increase your chances of approval.

How to Get an SBA Loan through Lendio.

Lendio is an online marketplace that streamlines obtaining SBA loans for small businesses. By connecting users with a network of lenders, it allows business owners to compare financing options through a single application. Lendio's loan experts help gather necessary documents, making the process easier. Loans are typically funded in under 30 days, depending on the lender and documentation completeness.

Methodology

Top lenders were selected based on the number of SBA loans approved in 2023 as reported by the Small Business Administration. Lenders were also evaluated based on their lending criteria, application process and whether they are an SBA-Preferred lender.

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (August X, 2024). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

Small business associations provide many benefits, including networking, training events, information on industry trends, and discounts on items like insurance, office products, training, and conferences. 

Finding the right associations could be the difference between getting a foot in the door, having emails or calls answered—and can ultimately help you build relationships that change the trajectory of your business.

Types of small business associations

Small business associations can range based on who is backing them, what industries they serve, what type of owners they cover, and much more.

There are government-backed associations, private associations, non-profit associations, and a wide range of more specialized groups.

Membership costs vary. Some organizations are free, while others require a nominal annual membership fee.

List of small business associations

General business associations

Some small business associations aren’t niche or industry-specific. They can dispense advice to owners of any type of small business. 

Often they know who you should know, can connect you with mentors, or direct you to other associations for your industry. 

Cross-disciplinary interaction is another upside to being a member of a general small business association. By mingling with business owners outside your area of expertise, you might find a solution to a business problem from someone who thinks differently than you do. Or you may find a partner to collaborate with to create a new product or service.

For general small business associations, the US Small Business Association (SBA) and its local partners should be your first stop. 

Most cities and many community colleges offer programs via an SBA partnership, including:

• Small Business Development Center (SBDC)
• SCORE (local chapter)
• Veteran’s Business Outreach Center (VBOC)
• Association of Women’s Business Center (AWBC) (local chapters)

Other general associations to consider include:

• Business Network International (BNI) (local chapter)
• National Federation for Independent Business (NFIB)
• Entrepreneurs’ Organization (EO)
• International Council for Small Business (ICSB)
• National Small Business Association (NSBA)
• StartupNation
• National Association for the Self-Employed ( NASE)
• Alumni association for your college or university

Chamber of Commerce Small Business Council

Chambers of commerce deserve a special spotlight based on their purpose: to advocate for local businesses, to build a community, and to support the local economy.

Most states and cities have a chamber of commerce. Oftentimes, this is a great place to start when searching for new groups to join.

Membership isn’t limited to your physical location, so consider joining wherever you’d like to grow your business. Your business can be a member of multiple chambers of commerce.

To find a specific state or city chamber of commerce, either check the list on ChamberofCommerce.com or search online using the keywords “Chamber of Commerce + [your state/city].”

There are also chambers of commerce for specific minority groups:

• US Black Chambers, Inc. (USBC)
• US Hispanic Chamber of Commerce, Inc (USHCC)
• US Pan Asian American Chamber of Commerce (USPAACC) (regional chapters)
• Association of Latino Professionals for America

Veteran-owned business associations

If you’re a veteran-owned small business looking for veteran-owned support, you should consider the following groups:

• National Veteran Small Business Coalition (NVSBC) (local chapters)
• National Veteran-Owned Business Association (NaVOBA)
• Office of Veterans Business Development Resources

Woman-owned business associations

• National Association of Women Business Owners (NAWBO)
• American Business Women’s Association (ABWA)
• National Association for Female Executives (NAFE) (local chapters)
• Women’s Business Enterprise National Council (WBENC) 
• Women’s Business Development Council (WBDC)

Minority-owned business associations

Minority-owned businesses can join these associations: 

• Minority Business Development Agency (MBDA) (business centers)
• National Minority Supplier Development Council (NMSDC) (local chapter)
• Black Business Association (BBA)
• Hispanic Business Enterprise (HBE)
• Asian Business Association (ABA)

Industry-specific business associations

Learning from other disciplines has its perks, but sometimes you need to hear from your peers (and learn what your competition is up to), so don’t overlook associations specific to your industry.

Examples include:

Marketing

• American Marketing Association (AMA)
• Association of National Advertisers (ANA)

Construction

• Associated General Contractors of America (AGC)
• American Subcontractors Association 

Retail

• National Retail Federation (NRF) (memberships for startups)
• Retail Merchants Association (RMA)

Small business communities

For something less formal, though still helpful, you can also join small business communities and online groups.

Whether that’s visiting the r/smallbusiness thread on Reddit, or joining more specialized small business communities, you can hear and learn a lot from your peers about entrepreneurship, real estate, SEO, and a range of other topics related to growing your business.

Online groups are also great for networking. They offer virtual as well as in-person events. Consider joining both industry-specific and location-specific groups. 

Search for options on:

• LinkedIn groups
• Facebook groups
• Meetup groups

Tips for reviewing business associations

As you consider which associations to join, keep an open mind about how an association’s location or niche fits your business needs. 

For example, both the local and national chapters of SCORE provide value. The local chapter can provide in-person connections while the national chapter can help connect you with other businesses similar to yours that aren’t direct competitors. 

From a niche perspective, it can be useful to join cross-industry associations. If your business sells outdoor equipment, perhaps joining both a retail association and an outdoor association like the Outdoor Industry Association could boost your revenue.

And don’t “join and forget” the club. Spend time building relationships with other members as those business contacts could evolve into customers, partners, or mentors. The value of associations comes from being an engaged member.

It takes time and might cost a bit to join small business associations, but your business can reap the benefits of networking and advocacy opportunities in the long term.

Whether you're looking to sell your business or not, it’s always important to understand how to value your company. Small business valuation methods, however, can vary in complexity, accuracy, and acceptance amongst buyers.

Here, we’ll highlight the 3 small business valuation methods you can use to make sure you have an accurate understanding of your company’s true worth.

How to value a small business

There are a few so-called “rules of thumb” for valuing small businesses, but you’ll want to use them in conjunction with other business valuation methods to get the most accurate calculation.

One common rule of thumb: Use a multiple of percentage of annual sales.

The multiple depends on your business and requires research. Multiply the sales from the past 12 months of business by the multiple to get a quick, sales-based valuation. You can see valuation multiples by industry here.

Another rule of thumb: Use an SDE (seller’s discretionary earnings) multiplier. This varies based on industry and similarly requires research. For this valuation, you multiply your SDE by the multiplier. See multiples by sector here.

Along with your valuation method, there's a lot of prep that goes into valuating your small business:

1. Do you have all of the necessary numbers and information at your fingertips? Be sure to have an understanding of SDE, EBITDA, revenue, debt, and market capitalization.
2. Do you have the right paperwork available? Business valuations will require balance sheets, tax returns, deeds, licenses, and anything else related to finances.
3. Are you familiar with the state of your industry? Know your comps and the growth potential of your market.

With all of this in place, you can adopt a business valuation method.

3 methods for small business valuation

According to business acquisition platform BizBuySell, the average American business sells for 0.6 times its annual revenue.

Of course, this should only be seen as a baseline—the actual value of your company is deeply impacted by your specific situation, industry, and location.

The three methods you can use to analyze these impacts and get a true valuation of your company include comparable analysis, adjusted net assets, and discounted cash flow (DCF) analysis.

1. Comparable company analysis

Comparable company analysis, commonly shorthanded as “comps,” is a small business valuation method that evaluates a company based on the value of other companies. 

Because of this commonsense approach, it is a very common and accepted form of valuing a company. Also referred to as “public market multiples,” “trading multiples,” “equity comps,” and “peer group analysis,” this method is very similar to market-based valuation and precedent transaction analysis.

Comps often focus on multiples of EBITDA, meaning Earnings Before Interest, Taxes, Depreciation, and Amortization. 

EBITDA multiples are usually used to determine value for large corporations, while smaller businesses often look at multiples of Seller’s Discretionary Earnings (SDE). SDE is a company’s annual EBITDA plus the annual compensation paid to the business’s owner.

As the name suggests, comparable company analysis calculates a business’s value by comparing it to the value of comparable businesses. 

Region, industry, and size are common ways businesses are grouped together. Small businesses are commonly compared based on enterprise value to sales (EV/S) and price to sales (P/S).

To value your company via comps, you should research the sale price of businesses similar in size, sales volume, and revenue. In most cases, you can get this information from quarterly and annual reports—or by paying for a market intelligence platform (though that can be pricey).

If you’re having a hard time gathering this information, an appraiser can ensure accurate comps analysis.

This video gives a solid rundown of how to carry out a comps analysis.

2. Adjusted net asset method

An assets-based valuation of a company will look similar to a balance sheet. For a slapdash “back of the envelope” value of your business, add up all your company’s assets and subtract all liabilities. This can give you a starting value, but it doesn’t take into account the wider market or future earnings.

The idea of the adjusted net asset method is to identify the fair market value of all of your assets, and subtract your liabilities (tangible and intangible).

The most difficult part of this method are the adjustments themselves. Adjustments can be made on the asset or liability side to reflect market value. For example, you can adjust for:

• Property: Whether real estate or personal, property book value is not always going to reflect its market value.
• Inventory: The speed of items sold, when they were stocked, and how they are accounted for (see LIFO vs FIFO, for example) are all levers when identifying the true market value of your inventory.
• Accounts Receivable: If your company has outlying collectibles, you can adjust based on whether those collectibles are expected to be paid in full or not.

Even if it doesn’t take into account the totality of your venture, an asset-based valuation can at least set a starting price.

Tim from MoneyWeek does a thorough job explaining the adjusted asset method here.

3. Discounted cash flow (DCF) analysis

To conduct a discounted cash flow (DCF) analysis, you must complete a complex formula that uses past data to predict future revenues for your business. The formula compares a company’s cash flow to its cost of capital. 

The components of the formula are:

• Cash Flow (CF)
• Discount/Interest Rate (r)
• Period number/time period (n)

A buyer looks at a DCF analysis to understand the potential future revenue of a company in comparison with the risk involved with the business.

Because the DCF analysis formula requires an intensive forecasting model, it is the most detailed and information-intensive method available to evaluate a company.

DCF analysis can be very useful for young small businesses—a new company might have a great probability of earning profits in the future even though it runs at a present loss.

Watch Warren Buffet break down the DCF approach.

How do you value a business quickly?

The most simplistic way to find the value of a company is to look at your balance sheet and subtract your total liabilities from your assets—similar to the adjusted net assets valuation method, simply without the adjustments.

“Depending on the business, the balance sheet might show tangible and intangible assets and a variety of long-term liabilities, some of which you might be able to reduce through negotiations and invoking early-termination agreements,” writes Steve Milano in the Houston Chronicle. “If it’s a complex balance sheet, you can simply take the assets you think you can sell quickly and subtract the liabilities to determine the company’s net worth for a fast sale.”

While you’ll want to get an appraiser involved and do more financial modeling before any agreement is reached, a balance sheet can give a pretty basic sense of a company’s value in a pinch.

If you have the time, it’s important to do your company the proper justice in identifying its worth, however.

You should consider much more than just physical assets and sales numbers. The value of your business could partially derive from aspects that don’t appear on a balance sheet, like your ideas, customer base, location, and curb appeal.

Even though the acronym UCC sounds like a college of some sort, it stands for the Uniform Commercial Code (UCC). And rather than hand out diplomas, the UCC was developed to regulate how commercial transactions operate.

OK—But what's a UCC filing?

UCC filings are how lenders establish their right to the assets you, the borrower, use to secure a loan. The filing serves as a lien, so that there's public record of your efforts to take out a loan.

UCC filings are made up of UCC-1 and UCC-3 filings, explained in more detail below.

What is a UCC-1 filing?

A UCC-1 is the official original UCC filing that gets made by a lender, referring to the UCC1 form that's needed in order to do so. It's effectively a public announcement lenders make that either a borrower has taken out a loan with them or is looking to take out a loan with them.

This filing defines the collateral the borrower puts up to secure financing, which prevents a borrower from using the same collateral for multiple loans (a move that would put the lenders at much higher risk).

You could think of it as the financial version of “going public” on social media with a new relationship. Once you change that relationship status, other people who might be interested can see you’re already committed to someone else. They allow lenders to see how you’ve treated other loans in the past.

What is a UCC-3 filing?

A UCC-3 filing is simply an amendment to the original UCC-1 filing. 

This might be used to update the information of the borrower or lender, add or change collateral, terminate a filing, or reassign or terminate creditor interest.

What is the difference between a lien and a UCC filing?

Put simply, a UCC filing serves as a lien, whereas a lien may not always be a UCC filing.

Liens can span everything from personal property, to real estate, to tax liens, child support, and much more. UCC liens fall within this list as another subcategory.

Oftentimes, liens arise from legal issues, and can be created involuntarily—for instance, with a property lien. UCC liens are intentionally created by creditors to establish a security interest.

When does UCC filing happen?

This step depends on the lender and the loan product.

Some UCC filings happen after you’ve secured funding. Others are actually filed when you apply for funding so lenders can protect themselves from borrowers trying to get multiple loans at the same time without the lenders knowing about it.

SBA UCC filings

As a security measure, the SBA will file a UCC lien on EIDL loans of more than $25,000. In this case, the SBA establishes the right to any assets you use to secure your EIDL loan, in the case that the loan goes unpaid.

Is a UCC filing bad?

No. UCC filings aren’t bad, nor are they good. They are used as a safety blanket for lenders to secure loans they provide to borrowers. If you take out a loan that goes unpaid, the fact that there is a filing can become a bad thing, but the UCC filing itself does not impact your credit or ability to obtain future loans.

How do you know if you have a UCC filing?

To find if you have a UCC filing, or simply search UCC liens in general, you can use a public record lien search tool, which are usually available on a State-level.

Most states provide public databases of UCC filings. Click below to learn more about accessing UCC filings in your state:

(Note: In some cases, a subscription might be required for access.)

• Alabama UCC Search
• Alaska UCC Search
• Arizona UCC Search
• Arkansas UCC Search
• California UCC Search
• Colorado UCC Search
• Connecticut UCC Search
• Delaware UCC Search
• Florida UCC Search
• Georgia UCC Search
• Hawaii UCC Search
• Idaho UCC Search
• Illinois UCC Search
• Indiana UCC Search
• Iowa UCC Search
• Kansas UCC Search
• Kentucky UCC Search
• Louisiana UCC Search
• Maine UCC Search
• Maryland UCC Search
• Massachusetts UCC Search
• Michigan UCC Search
• Minnesota UCC Search
• Mississippi UCC Search
• Missouri UCC Search
• Montana UCC Search
• Nebraska UCC Search
• Nevada UCC Search
• New Hampshire UCC Search
• New Jersey UCC Search
• New Mexico UCC Search
• New York UCC Search
• North Carolina UCC Search
• North Dakota UCC Search
• Ohio UCC Search
• Oklahoma (individual counties keep UCC records)
• Oregon UCC Search
• Pennsylvania UCC Search
• Rhode Island UCC Search
• South Carolina UCC Search
• South Dakota UCC Search
• Tennessee UCC Search
• Texas UCC Search
• Utah UCC Search
• Vermont UCC Search
• Virginia UCC Search
• Washington UCC Search
• Washington, DC UCC Search
• West Virginia UCC Search
• Wisconsin UCC Search
• Wyoming UCC Search

How can you remove a UCC filing?

A UCC termination filing requires an amendment be made to the original UCC-1 filing, completed using the UCC-3 form.

Thing is, a UCC-3 form can only be submitted by the lender. To get a UCC lien removed, you must ask your lender to file a UCC-3 form, which then comes at their discretion.

In most cases, liens are not removed until you’ve fully repaid a loan.

In the end, UCC filings typically serve purely as an informational guideline—a “just in case” stipulation. It helps to be aware of any UCC filings you might have, but in general, if you’re paying your debts, UCC liens should not bring you any harm.

The pandemic proved that necessity can be the mother of adoption, as millions of patients have turned to telehealth to reach providers despite distance, time, and social-distancing guidelines.

Since then, it's become clear that telehealth is here to stay.

While small practices have taken longer to adopt and integrate telehealth, it has proven to help practices of all kinds and sizes retain current patients and attract new ones.

Benefits of telehealth for providers

There are plenty of reasons that some healthcare providers have thus far resisted the spread of telehealth, including concerns related to patient confidentiality, payment, and a range of regulatory obstacles.

When implemented successfully, however, telehealth can be a major contributing factor to the success of your practice.

The benefits of telehealth for provider's include:

• Better patient engagement: Traveling to an office can be enough of a burden for patients that it decreases attendance for follow-up appointments. By allowing them to connect with you from the comfort of their homes, you’ll often notice better adherence to treatment plans and medication management.
• Better flexibility: It’s hard to get two people together in the same room at the same time—especially during standard office hours, when many patients have work or other obligations. Telehealth makes it possible for you to see patients on a more flexible schedule and from just about any location with available internet.
• Better access for disadvantaged patients: Patients in rural areas often find it difficult to reach an office for consultations. This also applies to low-income patients nationwide, as limited resources and inconsistent work schedules make doctor visits challenging. Additionally, patients with mental health challenges and other stigmatized conditions often struggle to visit offices. In all of these scenarios, telehealth provides a convenient solution.
• Better revenue opportunities: Overhead costs drop substantially when you hold consultations from your home. You’ll also lose less money because telehealth usually decreases the number of office-visit no-shows.
• Better ability to compete: When your practice provides telehealth as an option, you can attract patients who prefer (or even insist upon) this option. The rise of urgent care centers and other treatment options makes it crucial for you to attract new patients with offerings designed to simplify their lives.
• Better patient loyalty: Offering telehealth services improves patient satisfaction. When patients don’t have to deal with inattentive receptionists or frustrating long waits in your waiting room, they’re more keen to reward you with their loyalty.

How to set up telehealth for your practice

Your first objective: research what regulations apply in your region or state.

The Center for Connected Health Policy provides a wide range of resources to help you comply with telehealth-related laws and regulations. Check out this helpful resource to review the rules that determine how you utilize telehealth in your practice.

Once you have an understanding of that, you can set up an integration plan, using the phases below as your guide.

Phase 1: Do your research

1. Start by getting your patients’ opinion: Send out a survey or have in-person conversations to gauge your patients’ interest level in telehealth. Learn what time of day they would prefer to hold consultations and what telehealth services most interest them.

Taking this collaborative approach allows you to cover two goals at once: announcing to patients that you will offer telehealth and gleaning key insights for how to best implement it.

2. Get your staff in the game: You should also seek various perspectives from your staff. First, they’ll have valuable ideas to consider for the implementation.

For example, your front-desk employees might anticipate possible issues with patient scheduling that you simply wouldn’t think of on your own. The bonus of enlisting your team in the process: they’ll be more likely to support the telehealth initiative because they were involved from the onset.

3. Hone your plan: Armed with insights from your patients and staff, you’ll be able to create a plan for how your practice will handle this telehealth component.

Consider questions like:

• Will you make the technology a centerpiece of the practice, or will it be more of a backup option when emergencies or scheduling difficulties arise?
• Will you only use telehealth for follow-up appointments, or could new patients have initial consultations that way?
• Are you going to use telehealth for full synchronous meetings, or more faceless interactions?

By outlining how you want to use telehealth and what you hope to accomplish, you’ll have a roadmap that will help you navigate obstacles and reach your goals.

Phase 2: Configure your systems and workflows

1. Choose your software: Some telehealth software products are so loaded with features that they’ll practically do everything but cook your breakfast. If you’re experienced with these technologies, you might place a lot of value in a robust option.

If you haven’t had the opportunity to use telehealth systems in the past, however, you should look for more user-friendly software that eliminates any unnecessary factors that could complicate your ability to communicate with patients—at least at the start.

“Small practices and solo providers have to think carefully about virtual care, considering that they generally lack the resources to experiment and the overhead to survive a failed project,” says healthcare technology expert Eric Wicklund. “They should not look to replicate the programs in operation at large hospitals and health systems; rather, they should look at their own patient populations, pick a service that can be easily moved online (such as non-acute primary care, follow-up visits or chronic care management), and match the technology to the service.”

There are three major considerations to keep in mind when choosing telehealth software:

• Look for tools that can fully integrate with the EHR or practice management system already in use at your office. This compatibility allows you to schedule appointments and transmit patient communications without any additional effort.
• The best telehealth software can operate even with weak internet connections. This criterion is essential: you don’t want to compromise the quality of a consultation if you run into connectivity issues.
• Make sure you can add your practice’s branding elements to the telemedicine software. By customizing the look of the system, you’ll create a more consistent experience for your patients and continue to build brand equity with them.

2. Figure out billing: In order to make sure that telehealth is beneficial to your practice, you should first establish billing guidelines. Relevant rates and reimbursements can be more delicate since virtual care is a newer, different medium of healthcare.

How do you plan to receive co-pays and out-of-pocket payments from your patients?

You could collect their credit card details at the time of scheduling and then charge them after the appointment, or you could utilize a software platform that allows them to pay through the system during the appointment. Part of this can be addressed when surveying patients. The rest is up to your own determination.

Phase 3: Communicate and grow your offerings

1. Spread the news: While you should already have had conversations with your patients about telehealth as you gear up for launch, it’s advisable to create a marketing campaign that spreads the message thoroughly.

“Many telehealth networks were built on a premise that came from an old movie: ‘If you build it, they will come,’” explains Northwest Regional Telehealth Resource Center. “Telehealth providers soon found that simply building a network wasn’t enough.”

Your marketing efforts can utilize many different approaches. Perhaps you start by adding a new banner on your website that prominently announces your telehealth service. You could also add an FAQ section to address any questions or concerns your patients might have, then link to answers directly from the web banner.

Other marketing options include putting signage on your building or investing in paid ads on social media.

You can also utilize email, SMS, direct mail, and any other digital messaging systems you use to interact with patients to keep them up-to-date with your telehealth integration plans.

2. Start small: Don’t worry about diving headfirst into a wide-scale telehealth initiative. Start by focusing on your existing patients and the specialties where demand will be the highest.

You can determine these areas of focus based on the insights you obtained from patients, as well as industry best practices.

As you find success in the early stages of telehealth implementation, you can then consider adding new telehealth services to fuel further growth.

Just be wary of the temptation to offer everything to everyone—it’s best to move slowly and let strategy and analytics be your guide.

Phase 4: Make sure you are remote-ready

1. Set up your location(s) to be remote-friendly: Where will you base your telehealth operations? Part of the appeal of this technology is that you can conceivably meet with your patients from almost anywhere in the world. But there are requirements that must be met if you want your consultations to be effective, compliant, and positively experienced by your patients.

Your main objective should be finding an enclosed space that ensures privacy for conversations with patients. Headphones are recommended in order to make your patients’ voices inaudible to everyone but you.

In addition to finding a private room, your chosen space should also be distraction-free. Clear your desk or table of all clutter and make sure there are no background noises. Brighten the room with adequate lighting so patients can see your face and feel reassured by the professional-looking setting.

2. Make yourself camera-ready: Even if you’re holding your consultations from a beach house in Tahiti, it’s important to look as professional as you would in an exam room. Wear your typical wardrobe—and don’t forget to run a comb through your hair.

Given the physical distance between you and your patients, it’s important to maintain eye contact and reassure them that you are listening. If you are looking elsewhere in order to write a note or check in on a record, explain what you’re doing so they won’t feel ignored.

Your attention to detail is critical during a telehealth consultation. Notice your patients’ body language and vocal cues. It’s understandable if they’re nervous, as this could be an unfamiliar arrangement for them as well. Patients might feel uncomfortable speaking to a screen or worried about the security of the transmission.

The virtues of bedside manner shouldn’t be forgotten, though you’ll need to retrofit them to become “screenside manner.”

3. Practice to make perfect: There are plenty of factors to consider as you prepare for your first telehealth consultations. Decrease the pressure by conducting practice sessions with a family member or employees of your practice.

Explain to them that you’re trying to identify potential issues in your process, and then ask them for blunt feedback. You might be surprised by the quirks that arise.

This also grants you the chance to discover any technical kinks. Your goal is to familiarize yourself with the software so that it’s streamlined from the moment you boot up your computer to your final moments with a patient. Once the process becomes automatic, you’ll be able to devote your whole attention to the patient.

It’s time to put your preparation into practice and hold your first virtual consultation.

All that’s left to do is sit down at your desk or table, position your computer, and meet the needs of your patient just as thoroughly as you would with an in-office visit—which you’re already very primed to do.