In today’s podcast, Philip Blows from AQRU Plc and Stephen Halasnik from Financing Solutions, a leading provider of unsecured lines of credit, explain the need for having passive income to ensure financial freedom for business owners. They also highlight how business owners can leverage cryptocurrency to create passive income. If you desire an additional revenue stream that demands less time and effort and gives you more financial flexibility in running your business, you should consider having a passive income.
What is Passive Income?
Even a smart business owner can still experience a prolonged period of loss. One of the best strategies to survive a cash crunch is to have an alternative source of income: passive income.
According to the IRS, passive income includes earnings from rental property, limited partnerships, and other businesses one is not actively involved. Its loose meaning refers to money being earned with little or no effort from the investor. Although, you can do most of the work upfront and with little additional effort along the journey to keep the money flowing. However, it’s worth noting that passive income is not a get-rich-quick income source. In some cases, you will need to put in the effort initially when setting it up and then sit back to reap the financial reward down the line.
The Importance of Passive Income for Business Owners
The importance of income diversification in this rapidly changing world cannot be overemphasized. And passive income can be a great way for business owners to generate extra cash flow. Passive income is the money you generate from other ventures you’re not actively involved. It helps you earn more money, enjoy financial freedom during good times, and tide you over for a rainy day. With passive income, you can have a steady cash flow while focusing on your business.
Plus, if you consider having extra financial security, creating passive income is a strategy that might appeal to you.
How to Make Passive Income
One good thing about passive income is that it will make the investor’s life easy, especially when the handoff approach is chosen. And there are numerous investment options to earn passive money. Passive income offers you financial flexibility and can help you grow your primary business effectively. Some of the most viable sources to make passive income include investment in a mutual fund, staking in cryptocurrency, renting out your spare apartment and blogging, and more.
Investing in Cryptocurrency
The advancement in digital technology has widened the array of passive income opportunities. In recent times, decentralized finance has taken the investment space by storm. As a result, investment in digital currency has become the norm. For instance, the overall current global crypto market cap is $1.65 trillion. At present, we’re starting to see people becoming increasingly interested in making a buck from cryptocurrency, regardless of its high volatility and speculation.
That said, a typical way to make a return in cryptocurrency with little or no involvement is through buying and holding crypto -’ HODling’. For example, when deciding on creating a passive income, you might want to purchase a digital asset with the mind that its price will increase significantly sometime in the future. This long-term strategy might require you to hold your position anywhere between six months to five years. However, during the investment timeframe, you don’t need to be proactive in the crypto market. In other words, you only need to buy the digital asset and store it in a secure wallet.
Moreover, you can purchase crypto to lend it to generate interest. Many peer-to-peer crypto lending platforms allow you to lock up your fund for a period of time to collect the interest payment later.
It’s important to know that due diligence is essential for making an effective investment decision in the crypto space due to its high speculation. In addition, you should invest in the best digital currency, including bitcoin, Ethereum, and more, to hedge your portfolio from the negative price action inherent in the blockchain ecosystem.
As a business owner, passive money can be an effective means to ensure a significant cash flow to avoid living paycheck to paycheck. However, many business owners lack the financial flexibility to set up operating sources of passive income.
But the good news is that Financial Solutions will help you with a line of credit to get you started. Financial Solutions line of credit is a good funding resource that’s readily available whenever you need it, without the heavy burden of term loan requirements. So if you want our line credit, please fill out the no-obligation, 2-minute line of credit application here.
Learn More About Our Guest
Phil Blows is the Founder and CEO of AQRU Plc, a business that specializes in helping institutional and retail customers earn high-interest rates on their cryptocurrency. AQRU recently crossed the 10,000 active customer bar and is on an explosive growth trajectory.
About Financing Solutions
Financing Solutions provides an easy-to-setup unsecured business line of credit to small businesses. The small business financing product is a great cash backup plan that costs nothing to set up, nothing until used, and is inexpensive when needed. Financing Solutions is rated A+ by the Better Business Bureau and 5 stars by the BBB/Google Reviews.
Unlike a traditional business bank loan, our business credit line requires no collateral or personal guarantee (except in the cases of fraud) making it an excellent alternative business financing option. Small businesses often used their line of credit for short-term expenses, working capital, to make payroll, or for a business investment especially when business cash flow is temporarily down.
Get a free, no-obligation business line of credit quote by filling out our simple 2- minute business line of credit application here.
Remember: The time to set up a credit line is when you don’t need it.