#business funding no revenue

[ceocapital]

What is Business Funding? Know Its Importance And Types

Business funding refers to the process of securing financial resources to start, manage, or expand a business. It encompasses various types of funding, including equity financing, debt financing, crowdfunding, grants, and venture capital. Understanding these options is crucial for entrepreneurs and business owners aiming to secure capital for their startups or growing businesses. By exploring different financing strategies and selecting the most suitable option, businesses can position themselves for long-term success and sustainable growth.

[classifieds-marketing-news]

Taxpayer Advocate urges Congress to maintain IRS funding for customer service

The National Taxpayer Advocate Urges Congress to Prioritize Taxpayer Service and Technology Funding Erin Collins, the national taxpayer advocate at the Taxpayer Advocate Service, recently spoke at a Senate hearing in Washington, D.C., highlighting the need for Congress to preserve taxpayer service and technology funding. The annual report released by the National Taxpayer Advocate criticized the "extreme imbalance in funding priorities," emphasizing the importance of adequate funding for taxpayer services and technology modernization. According to the report, the Inflation Reduction Act allocated a significant portion of its funding for enforcement, with only a small percentage dedicated to taxpayer services and technology. Collins emphasized that adequate funding for services and technology is crucial for improving taxpayer experiences, increasing compliance, and reducing the need for costly enforcement measures. Despite the significant revenue collected through enforcement by the IRS, the majority of federal taxes are self-assessed through annual tax returns and timely payments. Collins warned against reducing enforcement funding without considering the potential impact on taxpayer services and technology, cautioning against inadvertently harming essential services. Congress has previously rescinded IRS funding, and further cuts could be possible in the future. With Republican control of Congress and the White House, additional funding cuts to the IRS may be on the horizon. It is essential for lawmakers to prioritize taxpayer service and technology funding to ensure fair and efficient tax processes for all taxpayers. #Money #Advocate #BreakingNewsInvesting #businessnews #Congress #customer #funding #Governmenttaxationandrevenue #IncomeTax #InternalRevenueService #Investmentstrategy #IRS #maintain #Nationaltaxes #Personalfinance #Personalsaving #Service #Taxplanning #Taxrefunds #Taxes #Taxpayer #urges https://tinyurl.com/26kqyfuq

[champstorymedia]

Customer-Centric Growth: Strategies to Enhance Loyalty and Drive Revenue

In today’s competitive business landscape, understanding and embracing customer-centric growth has become paramount for organizations that aim to foster loyalty and drive revenue. By focusing on the needs and preferences of customers, businesses can create more meaningful interactions that not only improve satisfaction but also pave the way for increased profitability. This article delves into…

[biz2loanfinance]

Small Business Funding in Florida

Running a business comes with its fair share of challenges, especially when it comes to managing cash flow. For many small business owners, access to immediate funding is crucial for seizing growth opportunities or navigating unexpected expenses. An open cash advance can be a game-changer in these situations, offering fast, flexible financing tailored to your business needs.

In this blog, we’ll explore how an open cash advance can help your business thrive. We’ll also discuss merchant funding, small business funding in Florida, and quick business financing options to help you make an informed decision.

1. Understanding Merchant Funding

Merchant funding, also known as a Merchant Cash Advance (MCA), is a flexible financing option designed for businesses that accept credit and debit card payments. Unlike traditional loans that require fixed monthly payments, an MCA allows businesses to repay the advance through a percentage of their daily credit card sales. This approach makes repayment seamless and aligned with your business’s cash flow.

Benefits of Merchant Funding:

Fast Access to Cash: Funds are typically available within a few days.

Flexible Repayment: Payments are based on daily sales, meaning lower payments during slower periods.

No Collateral Required: Since repayment is tied to sales, there’s no need to pledge assets.

Merchant funding is ideal for businesses like retail stores, restaurants, and e-commerce ventures that experience fluctuating sales volumes. It’s a great way to access working capital to purchase inventory, manage payroll, or invest in marketing efforts.

If your business processes a high volume of card payments, merchant funding could be the quick cash solution you’ve been looking for.

2. Small Business Funding in Florida

Florida is a hotspot for small businesses, with industries like hospitality, tourism, and e-commerce thriving year-round. But even successful businesses need funding to fuel growth or overcome operational hurdles.

Small business funding in Florida is more accessible than ever, thanks to alternative lenders like Biz2loan. Whether you’re looking to expand your operations, hire staff, or invest in new equipment, there’s a financing option that can meet your needs.

How Small Business Funding in Florida Can Help:

Business Expansion: Open a new location, purchase equipment, or upgrade your facilities.

Cash Flow Management: Cover payroll, rent, and daily expenses without stress.

Inventory Purchases: Stock up on products to meet customer demand during peak seasons.

With Biz2loan’s personalized approach, small business owners in Florida can access fast funding solutions that cater to their specific needs. Our streamlined application process means less paperwork and quicker approvals.

3. Quick Business Financing in Florida

When time is of the essence, quick business financing can be the difference between seizing an opportunity or missing out. Quick financing options prioritize speed and simplicity, enabling you to access cash when you need it most.

Features of Quick Business Financing:

Rapid Approvals: Funds are often approved and disbursed within 24 to 48 hours.

Minimal Paperwork: Streamlined application processes mean fewer delays.

Flexible Loan Terms: Choose repayment terms that fit your cash flow.

Quick business financing is perfect for addressing urgent business needs like:

Unexpected Repairs: Equipment breakdowns or emergency repairs.

Seasonal Opportunities: Capitalize on seasonal trends or holiday sales.

Emergency Expenses: Manage last-minute expenses without disrupting operations.

Biz2loan’squick financing solutions in Florida ensure that you’re never caught off guard. Our team understands that sometimes you can’t wait weeks for traditional loans. That’s why we’re committed to offering fast, reliable funding when it’s needed most.

Why Choose Biz2loan for Your Business Financing Needs?

At Biz2loan, we specialize in providing fast, flexible financing solutions tailored to your business’s unique needs. Whether it’s a merchant cash advance, small business funding, or quick financing, we’re here to help you access the capital you need to grow.

Here’s what sets us apart:

Simple Application: Apply online in minutes with minimal documentation.

Fast Funding: Get access to funds in as little as 24 hours.

Flexible Options: Choose the repayment plan that works best for your business.

Don’t let a cash flow gap hold your business back. Call Biz2loan at (888) 204–9748 today and discover how our financing solutions can keep your business moving forward.

Conclusion

An open cash advance can be a powerful tool for business growth and stability. With merchant funding, small business funding in Florida, and quick business financing options, Biz2loan empowers business owners to overcome financial challenges and seize growth opportunities.

Whether you need to manage cash flow, expand operations, or cover urgent expenses, Biz2loan has you covered. Our team is dedicated to helping small businesses succeed with fast, reliable funding options. Contact us today at (888) 204–9748 to learn more about how we can support your business’s financial needs.

[carlocarrasco]

Computer and Communications Industry Association (CCIA) expresses concern over Philippines’ digital tax and regulations

The Computer and Communications Industry Association (CCIA) – a Washington, DC-based group whose members include several prominent technology companies – expressed concern over the Philippines’ 12% value-added tax (VAT) on foreign digital services plus rules on online transactions, according to a Manila Bulletin news report. To put things in perspective, posted below is an excerpt from the…

[artisticdivasworld]

Truck Parking Revisited

Every day all over the country, drivers are using their last hour of driving time to try to find a safe place to park their rig.. It’s no secret that the lack of truck parking out there is getting ridiculous. Every day, drivers have to resort to parking in an unsafe place or risk going over their allotted HOS—it’s dangerous for you, your cargo, and other drivers on the road. Some have to park on…

[klubwork]

Your Guide to Equity Free Startup Funding and Revenue Based Finance in India

Navigating the world of startup investment in India can be challenging, particularly when seeking financial solutions that do not involve giving away equity. Entrepreneurs and startups are increasingly turning to innovative funding options such as equity free startup funding and revenue based finance. This blog explores these financing methods, along with traditional business loans for startups in India, to provide a comprehensive view of the available resources.

Understanding equity free startup funding

Equity free startup funding offers a unique advantage for entrepreneurs who want to maintain full ownership of their businesses while still obtaining the capital needed to grow. Unlike traditional funding methods, which often require startups to exchange equity for investment, equity free startup funding includes various non-dilutive options such as grants, competitions, and revenue-based financing.

Klub is a leading platform in India that provides equity free startup funding solutions. By focusing on helping startups secure capital without giving up equity, Klub supports entrepreneurs in scaling their businesses while retaining complete ownership.

Exploring revenue-based finance

Revenue based finance is an attractive alternative to traditional equity-based funding. This model allows startups to receive capital in exchange for a percentage of their future revenue. Unlike fixed repayment loans, the repayment amount is linked to the company’s performance, making it a flexible option for many startups.

In revenue based finance, repayments are based on the startup’s revenue, which means that businesses with fluctuating incomes can benefit from more adaptable repayment terms. This approach is particularly useful for startups with strong revenue potential but limited access to traditional funding.

Startup investment in India

The landscape of startup investment in India has evolved significantly over the years. With a growing number of investors and financial institutions looking to support innovative startups, entrepreneurs have more options than ever before. However, navigating this landscape requires a clear understanding of the various funding mechanisms available.

Equity free startup funding and revenue based finance are gaining popularity as viable alternatives to traditional venture capital and angel investments. These methods allow startups to access the necessary capital without compromising their ownership or taking on fixed financial obligations.

Business loans for startups in India

Business loans for startups in India remain a staple of the funding ecosystem. These loans can provide the necessary capital to launch or expand a business but often come with strict repayment terms and interest rates. For startups, obtaining a business loan can be challenging due to the high risk and lack of established credit history.

While business loans for startups in India are a traditional option, many entrepreneurs are now exploring equity free startup funding and revenue based finance to complement or replace these loans. By combining different funding sources, startups can create a more balanced and flexible financial strategy.

Key takeaways

Navigating the realm of startup investment in India requires an understanding of the various funding options available. Equity free startup funding and revenue based finance offer flexible and non-dilutive alternatives to traditional equity-based investments. Meanwhile, business loans for startups in India continue to play a significant role in providing necessary capital.

Startups looking to thrive in this competitive landscape should consider leveraging multiple funding sources to achieve their growth objectives. Platforms like Klub play a crucial role in facilitating equity free startup funding, helping entrepreneurs retain ownership while accessing vital resources for expansion.

In conclusion, the diverse range of funding options available in India, including equity free startup funding, revenue based finance, and business loans for startups in India, provides entrepreneurs with the flexibility they need to grow their businesses while maintaining control and managing financial risks.

[worldnews7]

[Finance] Your affordable financial adviser 'Stallion'

Stallion     (Denver = Won Jeong) On March 28th, revenue-based business funding company Stallion held a launch event at Business Foundry in Lone Tree, Denver. Stallion’s president, Kin Wong, announced, “We’re ready to help local small business owners. If you need assistance, just call or email us!” Stallion collaborates with multiple lenders to secure funding for you, increasing your chances of…

[ceocapital]

What is Business Funding? Know Its Importance And Types

Learn what is business funding, its types, and how to secure capital for your startup or growing business. Discover financing options and strategies for success.

[klubworks]

How Strong D2C Branding Can Attract Potential Investors

Direct-to-Consumer (D2C) businesses have radically transformed the landscape of modern commerce. By eliminating the middleman and selling directly to consumers, these brands can offer personalized experiences and unique products. However, while product innovation is vital, branding plays an equally significant role in the success of a D2C venture. A robust brand presence attracts consumers and becomes an enticing proposition for potential investors. So, how does one get funding for a startup with a robust branding strategy?

Branding provides a clear market position

For a D2C brand, the market can be saturated with competitors, making differentiation crucial. Effective branding communicates the unique value proposition, resonates with the target audience, and sets a business apart from its competitors. When entrepreneurs seek funding for business start up endeavors, showcasing a distinct brand identity can be a game-changer. It indicates market research, understanding of consumer needs, and strategic thinking – all attractive qualities for investors.

Sugar Cosmetics. A brand that revolutionized the beauty industry in India, Sugar Cosmetics, with its trendy and affordable makeup range, created a distinct niche in an otherwise saturated market. Their brand identity resonated deeply with the urban young audience, providing a clear market positioning.

Trustworthiness and reliability through branding

Trust is currency in the business world. Brands building and maintaining consumer trust tend to have a competitive edge. This trustworthiness also translates into investor confidence. A D2C business with a well-established brand appears more reliable and less risky. As such, they're more likely to secure start up finance from skeptical investors who get dozens, if not hundreds, of pitches daily.

Boat: This homegrown audio brand has built trust by consistently delivering quality audio products. The boat has become synonymous with reliability, and its continuous emphasis on customer satisfaction has sealed its position as a trustworthy player in the market.

Demonstrated consumer engagement

A successful D2C brand does more than just sell products; it engages with its customers. From interactive social media campaigns to loyalty programs, consumer engagement strategies can significantly impact a brand's bottom line. When you can demonstrate that your brand not only attracts but retains customers, it becomes much easier to get fund for startup. Investors see the tangible benefits of a loyal consumer base, making them more inclined to invest.

Bewakoof: Beyond its quirky merchandise, Bewakoof has fostered a community spirit through engagement initiatives like crowd-sourced designs and interactive social campaigns. Their audience doesn't just buy; they actively participate, exemplifying true brand engagement.

Future scalability and market expansion

As the Indian e-commerce narrative unfolds, innovation becomes the cornerstone of retail practices and funding mechanisms. While traditional e-commerce startup funding avenues show signs of strain, Revenue-Based Financing (RBF), championed by platforms like Klub, emerges as the resilient backbone for the next growth phase. A strong brand presence shows promise in the current market and hints at the possibility of expanding into new markets or demographics. Thus, when aiming to get funding for startup, a robust branding strategy combined with innovative funding avenues can indicate that a business has the potential to grow, adapt, and thrive in varying market conditions.

Wakefit: A testament to envisioning and realizing scalability is Wakefit. In 2023, the brand targeted an impressive revenue milestone of INR 10,000 Cr. Their trajectory isn't just about ambitious numbers; it's about a brand consistently adapting, innovating, and growing at an accelerated pace in the home solutions space. Wakefit's success story is a blueprint for D2C brands looking to carve out significant market share and achieve substantial growth.

Conclusion A strong branding strategy can be a beacon in the bustling world of D2C businesses, where competition is fierce. Not only does it allure consumers, it also acts as a magnet for potential investors. Aspiring entrepreneurs should remember that while product quality and business acumen are essential, never underestimate the power of branding when they're out to get funding for a startup.

[mostlysignssomeportents]

Red Lobster was killed by private equity, not Endless Shrimp

For the rest of May, my bestselling solarpunk utopian novel THE LOST CAUSE (2023) is available as a $2.99, DRM-free ebook!

A decade ago, a hedge fund had an improbable viral comedy hit: a 294-page slide deck explaining why Olive Garden was going out of business, blaming the failure on too many breadsticks and insufficiently salted pasta-water:

https://www.sec.gov/Archives/edgar/data/940944/000092189514002031/ex991dfan14a06297125_091114.pdf

Everyone loved this story. As David Dayen wrote for Salon, it let readers "mock that silly chain restaurant they remember from their childhoods in the suburbs" and laugh at "the silly hedge fund that took the time to write the world’s worst review":

https://www.salon.com/2014/09/17/the_real_olive_garden_scandal_why_greedy_hedge_funders_suddenly_care_so_much_about_breadsticks/

But – as Dayen wrote at the time, the hedge fund that produced that slide deck, Starboard Value, was not motivated by dissatisfaction with bread-sticks. They were "activist investors" (finspeak for "rapacious assholes") with a giant stake in Darden Restaurants, Olive Garden's parent company. They wanted Darden to liquidate all of Olive Garden's real-estate holdings and declare a one-off dividend that would net investors a billion dollars, while literally yanking the floor out from beneath Olive Garden, converting it from owner to tenant, subject to rent-shocks and other nasty surprises.

They wanted to asset-strip the company, in other words ("asset strip" is what they call it in hedge-fund land; the mafia calls it a "bust-out," famous to anyone who watched the twenty-third episode of The Sopranos):

https://en.wikipedia.org/wiki/Bust_Out

Starboard didn't have enough money to force the sale, but they had recently engineered the CEO's ouster. The giant slide-deck making fun of Olive Garden's food was just a PR campaign to help it sell the bust-out by creating a narrative that they were being activists* to save this badly managed disaster of a restaurant chain.

*assholes

Starboard was bent on eviscerating Darden like a couple of entrail-maddened dogs in an elk carcass:

https://web.archive.org/web/20051220005944/http://alumni.media.mit.edu/~solan/dogsinelk/

They had forced Darden to sell off another of its holdings, Red Lobster, to a hedge-fund called Golden Gate Capital. Golden Gate flogged all of Red Lobster's real estate holdings for $2.1 billion the same day, then pissed it all away on dividends to its shareholders, including Starboard. The new landlords, a Real Estate Investment Trust, proceeded to charge so much for rent on those buildings Red Lobster just flogged that the company's net earnings immediately dropped by half.

Dayen ends his piece with these prophetic words:

Olive Garden and Red Lobster may not be destinations for hipster Internet journalists, and they have seen revenue declines amid stagnant middle-class wages and increased competition. But they are still profitable businesses. Thousands of Americans work there. Why should they be bled dry by predatory investors in the name of “shareholder value”? What of the value of worker productivity instead of the financial engineers?

Flash forward a decade. Today, Dayen is editor-in-chief of The American Prospect, one of the best sources of news about private equity looting in the world. Writing for the Prospect, Luke Goldstein picks up Dayen's story, ten years on:

https://prospect.org/economy/2024-05-22-raiding-red-lobster/

It's not pretty. Ten years of being bled out on rents and flipped from one hedge fund to another has killed Red Lobster. It just shuttered 50 restaurants and declared Chapter 11 bankruptcy. Ten years hasn't changed much; the same kind of snark that was deployed at the news of Olive Garden's imminent demise is now being hurled at Red Lobster.

Instead of dunking on free bread-sticks, Red Lobster's grave-dancers are jeering at "Endless Shrimp," a promotional deal that works exactly how it sounds like it would work. Endless Shrimp cost the chain $11m.

Which raises a question: why did Red Lobster make this money-losing offer? Are they just good-hearted slobs? Can't they do math?

Or, you know, was it another hedge-fund, bust-out scam?

Here's a hint. The supplier who provided Red Lobster with all that shrimp is Thai Union. Thai Union also owns Red Lobster. They bought the chain from Golden Gate Capital, last seen in 2014, holding a flash-sale on all of Red Lobster's buildings, pocketing billions, and cutting Red Lobster's earnings in half.

Red Lobster rose to success – 700 restaurants nationwide at its peak – by combining no-frills dining with powerful buying power, which it used to force discounts from seafood suppliers. In response, the seafood industry consolidated through a wave of mergers, turning into a cozy cartel that could resist the buyer power of Red Lobster and other major customers.

This was facilitated by conservation efforts that limited the total volume of biomass that fishers were allowed to extract, and allocated quotas to existing companies and individual fishermen. The costs of complying with this "catch management" system were high, punishingly so for small independents, bearably so for large conglomerates.

Competition from overseas fisheries drove consolidation further, as countries in the global south were blocked from implementing their own conservation efforts. US fisheries merged further, seeking economies of scale that would let them compete, largely by shafting fishermen and other suppliers. Today's Alaskan crab fishery is dominated by a four-company cartel; in the Pacific Northwest, most fish goes through a single intermediary, Pacific Seafood.

These dominant actors entered into illegal collusive arrangements with one another to rig their markets and further immiserate their suppliers, who filed antitrust suits accusing the companies of operating a monopsony (a market with a powerful buyer, akin to a monopoly, which is a market with a powerful seller):

https://www.classaction.org/news/pacific-seafood-under-fire-for-allegedly-fixing-prices-paid-to-dungeness-crabbers-in-pacific-northwest

Golden Gate bought Red Lobster in the midst of these fish wars, promising to right its ship. As Goldstein points out, that's the same promise they made when they bought Payless shoes, just before they destroyed the company and flogged it off to Alden Capital, the hedge fund that bought and destroyed dozens of America's most beloved newspapers:

https://pluralistic.net/2021/10/16/sociopathic-monsters/#all-the-news-thats-fit-to-print

Under Golden Gate's management, Red Lobster saw its staffing levels slashed, so diners endured longer wait times to be seated and served. Then, in 2020, they sold the company to Thai Union, the company's largest supplier (a transaction Goldstein likens to a Walmart buyout of Procter and Gamble).

Thai Union continued to bleed Red Lobster, imposing more cuts and loading it up with more debts financed by yet another private equity giant, Fortress Investment Group. That brings us to today, with Thai Union having moved a gigantic amount of its own product through a failing, debt-loaded subsidiary, even as it lobbies for deregulation of American fisheries, which would let it and its lobbying partners drain American waters of the last of its depleted fish stocks.

Dayen's 2020 must-read book Monopolized describes the way that monopolies proliferate, using the US health care industry as a case-study:

https://pluralistic.net/2021/01/29/fractal-bullshit/#dayenu

After deregulation allowed the pharma sector to consolidate, it acquired pricing power of hospitals, who found themselves gouged to the edge of bankruptcy on drug prices. Hospitals then merged into regional monopolies, which allowed them to resist pharma pricing power – and gouge health insurance companies, who saw the price of routine care explode. So the insurance companies gobbled each other up, too, leaving most of us with two or fewer choices for health insurance – even as insurance prices skyrocketed, and our benefits shrank.

Today, Americans pay more for worse healthcare, which is delivered by health workers who get paid less and work under worse conditions. That's because, lacking a regulator to consolidate patients' interests, and strong unions to consolidate workers' interests, patients and workers are easy pickings for those consolidated links in the health supply-chain.

That's a pretty good model for understanding what's happened to Red Lobster: monopoly power and monopsony power begat more monopolies and monoposonies in the supply chain. Everything that hasn't consolidated is defenseless: diners, restaurant workers, fishermen, and the environment. We're all fucked.

Decent, no-frills family restaurant are good. Great, even. I'm not the world's greatest fan of chain restaurants, but I'm also comfortably middle-class and not struggling to afford to give my family a nice night out at a place with good food, friendly staff and reasonable prices. These places are easy pickings for looters because the people who patronize them have little power in our society – and because those of us with more power are easily tricked into sneering at these places' failures as a kind of comeuppance that's all that's due to tacky joints that serve the working class.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/05/23/spineless/#invertebrates

[phoenixyfriend]

Ko-fi prompt from @liberwolf:

Could you explain Tariff's , like who pays them and what they do to a country?

Well, I can definitely guess where this question is coming from.

Honestly, I was pretty excited to get this prompt, because it's one I can answer and was part of my studies focus in college. International business was my thing, and the issues of comparative advantage (along with Power Purchasing Parity) were one of the things I liked to explore.

-----------------

At their simplest, tariffs are an import tax. The United States has had tariffs as low as 5%, and at other times as high as 44% on most goods, such as during the Civil War. The purpose of a tariff is in two parts: generating revenue for the government, and protectionism.

Let's first explore how a tariff works. If you want to be confused, then you need to have never taken an economics class, and look at this graph:

(src)

So let's undo that confusion.

The simplest examples are raw or basic materials such as steel, cotton, or wine.

First, without tariffs:

Let us say that Country A and Country B both produce steel, and it is of similar quality, and in both cases cost $100 per unit. Transportation from one country to the other is $50/unit, so you can either buy domestically for $100, or internationally for $150. So you buy domestically.

Now, Country B discovers a new place to mine iron very easily, and so their cost for steel drops to $60/unit due to increased ease of access. Country A can either purchase domestically for $100, or internationally for $110 (incl. shipping), which is much more even. Still, it is more cost-effective to purchase domestically, and so Country A isn't worried.

Transportation technology is improved, dropping the shipping costs to $30/unit. A person from Country A can buy: Domestic: $100 International: $60+$30 = $90 Purchasing steel from Country B is now cheaper than purchasing it from Country A, regardless of where you live.

Citizens in Country A, in order to reduce costs for domestic construction, begin to purchase their steel from Country B. As a result, money flows from Country A to B, and the domestic steel industry in Country A begins to feel the strain as demand dwindles.

In this scenario, with no tariffs, Country A begins to rely on B for their steel, which causes a loss of jobs (steelworkers, miners), loss of infrastructure (closing of mines and factories), and an outflow of funds to another country. As a result, Country A sees itself as losing money to B, while also growing increasingly reliant on their trading partner for the crucial good that is steel. If something happens to drive up the price of B's steel again, like political upheaval or a natural disaster, it will be difficult to quickly ramp up the production of steel in Country A's domestic facilities again.

What if a tariff is introduced early?

Alternately, the dropping of complete costs for purchase of steel from Country B could be counteracted with tariffs. Let's say we do a 25% tariff on that steel. This tariff is placed on the value of the steel, not the end cost, so:

$60 + (0.25 x $60) + $30 = $105/unit

Suddenly, with the implementation of a 25% tariff on steel from Country B, the domestic market is once again competitive. People can still buy from Country B if they would like, but Country A is less worried about the potential impacts to the domestic market.

The above example is done in regards to a mature market that has not yet begun to dwindle. The infrastructure and labor is still present, and is being preemptively protected against possible loss of industry to purchasing abroad.

What happens if the tariff is not implemented until after the market has dwindled?

Let's say that the domestic market was not protected by the tariff until several decades on. Country A's domestic production, in response to increased purchasing from abroad, has dwindled to one third of what it was before the change in pricing incentivized purchase from B. Prices have, for the sake of keeping this example simple, remained at $100(A) and $60(B) in that time. However, transportation has likely become better, so transportation is down to $20, meaning that total cost for steel from B is $80, accelerating the turn from domestic steel to international.

So, what happens if you suddenly implement a tariff on international steel? Shall we say, 40%?

$60 + (0.4 x 60) + 20 = $104

It's more expensive to order from abroad! Wow! Let's purchase domestically instead, because these prices add up!

But the production is only a third of what it used to be, and domestic mines and factories for refining the iron into steel can't keep up. They're scaling, sure, but that takes time. Because demand is suddenly triple of the supply, the cost skyrockets, and so steel in Country A is now $150/unit! The price will hopefully come down eventually, as factories and mines get back in gear, but will the people setting prices let that happen?

So industries that have begun to rely on international steel, which had come to $80/unit prior to the tariff, are facing the sudden impact of a cost increase of at least $25/unit (B with tariff) or the demand-driven price increase of domestic (nearly double the pre-tariff cost of steel from B), which is an increase of at least 30% what they were paying prior to the tariff.

There are possible other aspects here, such as government subsidies to buoy the domestic steel industry until it catches back up, or possibly Country B eating some of the costs so that people still buy from them (selling for $50 instead of $60 to mitigate some of the price hike, and maintain a loyal customer base), but that's not a direct impact of the tariff.

Who pays for tariffs?

Ultimately, this is a tax on a product (as opposed to a tax on profits or capital themselves, which has other effects), which means the majority of the cost is passed on directly to the consume.

As I said, we could see the producers in Country B cut their costs a little bit to maintain a loyal customer base, but depending on their trade relationships with other countries, they are just as likely to stop trading with Country A altogether in order to focus on more profitable markets.

So why do we not put tariffs on everything?

Well... for that, we get into the question of production efficiency, or in this case, comparative advantage.

Let's say we have two small, neighboring countries, C and D, that have negligible transportation costs and similar industries. Both have extensive farmland, and both have a history of growing grapes for wine, and goats for wool. Country C is a little further north than D, so it has more rocky grasses that are good for goats, while D has more fertile plains that are good for growing grapes.

Let's say that they have an equal workforce of 500,000 of people. I'm going to say that 10,000 people working full time for a year is 1 unit of labor. So, Country C and Country D have between the 100 units of labor, and 50 each.

The cost of 1 unit of wool = the cost of 1 unit of wine

Country C, having better land for goats, can produce 4 units of wool for every unit of labor, and 2 units of wine for every unit of labor.

Meanwhile, Country D, having better land for grapes, can produce 2 units of wool per unit of labor, and 4 units of wine per unit of labor.

If they each devote exactly half their workforce to each product, then:

Country C: 100 units of wool, 50 units of wine Country D: 50 units of wool, 100 units of wine

Totaling 150 units of each product.

However, if each devotes all of their workforce to the product they're better at...

Country C: 200 units of wool, no wine Country D: no wool, 200 units of wine

and when they trade with each other, they each end up with 100 units of each product, which is a doubling of what their less-efficient labor would have resulted in!

The real world is obviously much more complicated, but in this example, we can see the pros of outsourcing some of your production to another country to focus on your own specialties.

Extreme examples of this IRL are countries where most of the economy rests on one product, such as middle-eastern petro-states that are now struggling to diversify their economies in order to not get left behind in the transition to green energy, or Taiwan's role as the world's primary producer of semiconductors being its 'silicon shield' against China.

Comparative advantage can be used well, such as our Unnamed Countries (that are definitely not the classic example of England and Portugal, with goats instead of sheep) up in the example. With each economy focusing on its specialty, there is a greater yield of both products, meaning a greater bounty for both countries.

However, should something happen to Country C up there, like an earthquake that kills half the goats, they are suddenly left with barely enough wool to clothe themselves, and nothing for Country D, which now has a surplus of wine and no wool.

So you do have to keep some domestic industry, because Bad Things Can Happen. And if we want to avoid the steel example of a collapse in the given industry, tariffs might be needed.

Are export tariffs a thing?

Yes, but they are much rarer, and can largely be defined as "oh my god, everyone please stop getting rid of this really important resource by selling it to foreigners for a big buck, we are depleting this crucial resource."

So what's the big confusion right now?

Donald Trump has, on a number of occasions, talked about 'making China pay' tariffs on the goods they import into the US. This has led to a belief that is not entirely unreasonable, that China would be the side paying the tariffs.

The view this statement engenders is that a tariff is a bit like paying a rental fee for a seller's table at an event: the producer or merchant pays the host (or landlord or what have you) a fee to sell their product on the premises. This could be a farmer's market, a renaissance faire, a comic book convention, whatever. If you want to sell at the event, you have to pay a fee to get a space to set up your table.

In the eyes of the people who listened to Trump, the tariff is that fee. China is paying the United States for access to the market.

And, technically, that's not entirely wrong. China is thus paying to enter the US market. It's just the money to pay that fee needs to come from somewhere, and like most taxes on goods, that fee comes from the consumer.

So... what now?

Well, a lot of smaller US companies that rely on cheap goods made in China are buying up non-perishables while they can, before the tariffs hit. Long-term, manufacturers in the US that rely on parts and tools manufactured in China are going to feel the squeeze once that frontloaded stock is depleted.

Some companies are large enough to take the hit on their own end, still selling at cheap rates to the consumer, because they can offset those costs with other parts of their empire... at least until smaller competitors are driven out of business, at which point they can start jacking up their prices since there are no options left. You may look at that and think, "huh, isn't that the modus operandi for Walmart and Amazon already?" and yes. It is. We are very much anticipating a 'rich get richer, poor go out of business' situation with these tariffs.

The tariffs will also impact larger companies, including non-US ones like Zara (Spanish) and H&M (Swedish), if they have a huge reliance on Chinese production to supply their huge market in the United States.

If you're interested in the repercussions that people expect from these proposed tariffs on Chinese goods, I'd suggest listening to or watching the November 8th, 2024 episode of Morning Brew Daily (I linked to YouTube, but it's also available on Spotify, Nebula, the Morning Brew website, and other podcast platforms).

[lovinglyfelikebeegbyrd]

Revenue Based Business Loans: How to Grow Your Business (Case Studies)

[payorone]

At Payor, we recognize that small businesses are the heart of the economy, and we're excited to introduce our Revenue Based Small Business Loans. Designed to provide flexible and accessible financing solutions, our loans are tailored to your business's unique revenue streams. We understand that traditional lending models might not always fit the bill, so we've created a lending approach that aligns with your cash flow. With competitive terms, transparent terms, and a straightforward application process, our Revenue Based Small Business Loans offer the support you need to grow and thrive. Experience a new way of financing with Payor and take your business to new heights.

[carlocarrasco]

BIR extends deadline for online businesses to transition to new withholding tax system to July 14, 2024

Recently the Bureau of Internal Revenue (BIR) announced that July 14, 2024, is the new deadline for online businesses to transition to the new withholding tax system, according to a GMA Network news report. Previously the deadline was April 15, 2024 and online businesses with annual earnings of over P500,000 were to be covered by the 1% withholding tax. To put things in perspective, posted below…