TOPLEY’S TOP 10 August 05, 2026

1. S&P Premium to International Equities at 6-Year Low

SPX relative valuation. “US stock valuations have dropped drastically against the rest of the world, with their premium dwindling to only about 22%. That’s the lowest in more than six years and well-below the 10-year average of 31%.”

Michael Msika – Bloomberg


2. Leveraged ETF Assets Declined by $60B from Peak..Momentum Unwind

Citadel Scotty notes Leveraged ETF assets have declined more than $60 billion from their June peak –  The largest reductions have occurred across the market’s most crowded themes, with Technology leveraged ETF assets down approximately 40% and Semiconductor assets down nearly 55% over the past month.


3. Cloud Revenue Growth and Hyperscaler Revenue Growth

Dan Stratemeier Jefferies


4. XLG is Mega Cap Stock ETF …2026 Small Cap IWM +21% vs. XLG +5%

YCharts


5. ChatGPT Hits 1B Users

Sherwood News


6. Crypto Volume Not Rebounding

The Kobeissi Letter


7. BMY Bristol Myers New Highs…Long-Term Chart 50 month thru 200 month to Upside.  BMY Still Negative 5-Year Return

StockCharts


8. Violence as a Service

Semafor


9. Free Trade Popular Across Income Groups

The Argument


10. 5 Habit-Building Hacks From Top Coaches That Actually Work

By Gwen Gray Published July 30, 20265 min read

Listen to this article

5 min read

There are few things in life that hold us back more than wanting desperately to make positive changes in our lives but simply, frustratingly, not making those changes, day after day, week after week, month after month. In my heart of hearts, for example, I know that practicing breathwork regularly brings me clarity, a fresh flow of creative ideas for my work and lower stress levels. So, developing a daily or even weekly practice would surely bring untold benefits. But despite putting it in my planner—in caps with three exclamation points—it’s just. Not. Happening.

If you’re in a similar boat—whether it’s drinking eight glasses of water a day, prospecting one new client a week, finishing that course on public speaking or getting to bed on time for a solid night’s sleep—there’s good news. The psychology of human habits is becoming less of a mystery, and coaches, who regularly deal in the currency of cultivating consistent behaviors, are using these insights with clients daily to learn how to hack our stubborn brains.

Here, we’ve compiled some fresh tips from career, creativity and life coaches to bring you some of the latest thinking on how to hack your habit-building efforts—so you can crack the code and drive the growth you know is waiting for you on the other side.

1. Start Small…Tiny…Tinier

Many habits fail to take hold because they are simply too big or too daunting, which is bound to overwhelm your resolve. James Clear, the author of Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones and a former performance coach, suggests picking a habit that’s so easy that you can do it with hardly any willpower.

If your goal is to write in a gratitude journal every day for 20 minutes, for example, start off with just two minutes, then try to increase that amount by a small percentage every day. If your habit is more complex, say crafting one new course each month, then break it down into smaller pieces, tackling just one small section a day. This approach, Clear says, takes patience. But it should feel easy, especially in the beginning, which is key to getting started and maintaining momentum.

2. Do the Thing that Can’t be Undone

If the challenge is primarily getting started, try a simple, brave act of commitment. If you’ve been wanting to learn how to tap dance, for instance, sign up for the class and pay the registration in full.

“Pick the one thing you’ve been circling—the course, the pitch, the application, the boundary, the hire—and do the piece you cannot walk back,” says Erica Rooney, a human resources executive, coach, speaker and the author of Glass Ceilings and Sticky Floors: Shattering Limiting Beliefs and Toxic Behaviors to Uncover Infinite Possibilities. “Spend the money. Hit send on the email. Once you do the thing that cannot be undone, you have set the rest in motion.”

Our brains are well equipped to avoid things it deems as uncomfortable or challenging, so removing the negotiation from the table flips a “psychological switch from ‘maybe’ to ‘I’m doing this,’” she adds.

3. Create a Double-Reward Loop

Neuroscientists understand that habitual behaviors are typically formed when they are rewarded immediately. One way to activate this is by “temptation bundling,” or pairing a “should do” task with a “want to do” task.

Grace Adele Boyle, a coach to executives and creatives, has found that when you double up on rewards, you also double your chances of sticking with it.

“Reserve something deeply enjoyable—an addictive audiobook, favorite show or a specific podcast—that you only engage with while doing your habit,” she says. “I take it one step further and include a second reward immediately after habit completion. I call this a ‘double-reward loop,’ and it keeps your brain engaged during the habit and creates anticipation for next time through immediate reinforcement.”

For her, this looks like saving certain media only for workouts, then enjoying a crave-worthy chocolate protein shake immediately afterward.

4. Use the ‘Most Days’ Theory

You’ve been pushing hard with a habit or an intention, and you just aren’t seeing results. Instead, you are stuck in a shame spiral. If this scenario sounds familiar, try the “most days” theory, coined by Bree Groff, a workplace culture coach, speaker and author, in a viral Substack post. She writes: “It’s the theory that we derive enormous benefit from the habits we practice most days.”

Groff advocates for a gentler approach to change: practice the desired behavior most days—if not every day—because consistent, flexible effort is more sustainable than perfection.

If you’re trying to adopt a daily yoga practice, for example, and you find yourself rolling out your mat five days out of seven, well, that’s a win.

5. Make the New Habit Your Entire Personality

A growing body of research suggests that seeing a habit as something that aligns with your identity (“I am someone who…”) is far more powerful than seeing a habit as something you do.

“You don’t act from goals,” says Grant Muller, a speaker, coach and the author of Top of Heart: How a New Approach to Business Saved My Life, and Could Save Yours Too. “You act from identity. When you activate your reflective brain, behavior follows without as much resistance.”

He suggests a 60-second “identity rehearsal” each morning to choose a word that aligns with the person you’re striving to become, thus setting the tone for the habits you want to cultivate.

Boyle agrees, adding that while willpower can fade, personal values don’t. She suggests asking yourself questions like, “Why does this habit matter to me? What does it make possible? What value does it honor? Who does it help me become?” To set yourself up for maximum success, make your answers to these questions “personal, emotional and visible,” she says.

Image courtesy of Roman Samborsky/Shutterstock

This article was first published in the March 2026 issue of SUCCESS® digital edition. Get your FREE copy here.

https://www.success.com/5-habit-building-hacks-from-top-coaches-that-actually-work

TOPLEY’S TOP 10 August 04, 2026

1. Strongest Quarter for Earnings in 5 Years

Financial Times


2. JP Morgan S&P 500 Valuation Updated Chart…Stocks Not Cheap But Grew Cheaper in 2026 with Growing Earnings

JPMorgan


3. Technology Reset on Sell Off

Macro Charts


4. Amazon Breaks Out to New Highs

StockCharts


5. META Legal Bills are 5-6% of Expenses

In the most recent quarter (Q2 2026), Meta’s legal charges were about $2.4 billion, which was roughly 5–6% of total costs and expenses, not 13%.abcnews+2

What the numbers show

  • Q2 2026 total costs and expenses$42.03 billion.abcnews+2
  • Q2 2026 legal charges$2.40 billion (recorded in general and administrative expenses).abcnews+2

So legal expenses were about 5–6% of Meta’s total costs in that quarter.

www.perplexity.com


6. Quick Summary of U.S. Yen Intervention

Morningbrew

This Chart Shows U.S. Dollar Drop vs. Yen in Last Few Weeks

StockCharts


7. USA Unemployment by State…Some States 2-3%

USAFacts


8. The Air Conditioning Divide

Apollo


9. Top 10 Cities with Growing Home Values

Nick Gerli


10. Perseverance in Life

Psychology Today Personal Perspective: Moving forward in the face of crushing obstacles Greg O’Brien

Key points

  • Perseverance often means steady faithfulness, not dramatic acts of courage.
  • Forward motion—no matter how slow—is vital when facing crushing obstacles.
  • Studies show perseverance and optimism can help reduce anxiety, depression, and panic.

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do, you have to keep moving forward.” — Martin Luther King, 1960

I’ve been crawling a lot of late.

I’m not alone in this. Life, at times, offers all of us a haversack of trials—crushing burdens in the moment and beyond.

And we think of giving up.

I’m not saying my challenges are any tougher than others, but just sayin’: in my case, fighting off advancing and bruising Alzheimer’s, cancer, black hole depression, and the death of a son in 2022. No parent should ever have to bury a child.

Some days, the urge just to give up is overwhelming, as the body feels frozen in the moment and the demons are snapping. But I’m trying not to take the bait, and think often of others struggling.

I’m encouraged by Albert Einstein, who said: “You never fail until you stop trying.”

As an aging jock, 76 now, I don’t want to stop trying. So, I’m fighting forward, but can’t say it’s easy in any way.

We all find discernment in many ways. I was raised Irish Catholic, both mother and father with deep Irish roots (47 of 48 branches of our family tree from Erie). I’m now a bit more evangelical, though I haven’t forgotten my roots.

I’m not preaching, just trying to connect; we all come from different places.

I so respect that…

I recently saw the blockbuster summer movie The Odyssey—Director Chris Nolan’s account of the ancient epic about the hero Odysseus trying to return home to his wife and son after serving in the Trojan War and the interminable string of hurdles in his path. Bloodied but unbowed, as William Henley writes in his epic poem “Invictus,” Odysseus never gave up, and through remarkable perseverance, he finally makes it home.

Doug Scalise, my pastor on Outer Cape Cod, emphasized the drive of Odysseus in his Sunday sermon to underscore the faith needed to persevere in life. “There’s something deeply admirable about refusing to quit,” Scalise said. “Sometimes we imagine perseverance as dramatic acts of courage. Occasionally it is. More often it looks like quiet faithfulness over a lifetime.”

Added Scalise, “Have you ever had a week where every day brings another problem, another disappointment, another phone call telling you something you didn’t want to hear?” In a reference to the New Testament Book of Hebrews, he says: “Faith in everything requires perseverance.”

As a wholly imperfect person, I’m trying to find my way out of a valley of depression without wavering. Scalise once reinforced to me that one can’t helicopter out of such a serpentine valley; you have to walk it out.

We often find perseverance in different ways, though forward motion is forward motion.

Experts say perseverance is the confluence of passion and lasting stamina and is more critical in life than talent or intelligence.

The American Psychological Association notes: “People who don’t give up on their goals (or who get better over time at not giving up on their goals) and who have a positive outlook appear to have less anxiety and depression and fewer panic attacks, according to a study of thousands of Americans over the course of 18 years.”

The study, published by the American Psychological Association in the Journal of Abnormal Psychology, says: “Perseverance cultivates a sense of purposefulness that can create resilience against, or decrease, current levels of major depressive disorder, generalized anxiety disorder and panic disorder.”

Lead author of the study, Nur Hani Zainal, M.S., from Pennsylvania State University, notes: “Looking on the bright side of unfortunate events has the same effect because people feel that life is meaningful, understandable and manageable…Our findings suggest that people can improve their mental health by raising or maintaining high levels of tenacity, resilience and optimism.”

No one said it would be easy…Something to be said for baby steps.

As Rev. King once observed, “You don’t have to see the whole staircase, just take the first step.”

Had Odysseus not persevered, had he given up, symbolically he’d still be in the Trojan Horse.

Not a good place for any of us.

https://www.psychologytoday.com/us/blog/on-pluto/202607/perseverance-in-life

TOPLEY’S TOP 10 August 03, 2026

1. Defense Contractors Backlog

Defense Backlog

Source: Fundamental Charting on Fiscal.ai

With all the ongoing global conflicts (and the munition replenishment required for those conflicts), the “Big Five” prime defense contractors all reported record orders in the 2nd quarter.

Combined, the five companies (including only Boeing’s defense division) now have a backlog of $846 billion. That’s up $176 billion, or 26%, compared to the 2nd quarter of last year.


2. Meta Free Cash Flow -91%

@Charlie Bilello


3. August/September Seasonality

Ryan Detrick


4. Sell Off in META 40-Year Bonds

WSJ


5. Momentum Unwind—MTUM Vs. QUAL (quality factor)—MTUM gave back all 1-year outperformance in this pullback…At One Point MTUM was up double QUAL

YCharts


6. The AI Bull Chart …80% Of GPUs in AI Datacenters are Utilized vs. Internet Bubble Fiber Optic 2%–Irrelevant Investor Blog

The Irrelevant Investor


7. AAPL Revenue 50% from Iphone

Abnormal Returns


8. U.S. Spike in Crude Oil Exports 2026

Wolf Street


9. Why Flights are Expensive? CNBC

CNBC


10. 7 Home Improvements to Skip Before Listing Your Home

July 28, 2026 by Kierra Todd

Thinking about tackling a long list of renovation projects before putting your home on the market? It’s a common instinct, but bigger isn’t always better when it comes to preparing your home to sell. While some updates can make your home more appealing, others can cost thousands of dollars without adding enough value to justify the expense.

Whether you’re selling a home in Chicago, IL, or preparing to list a house in West Palm Beach, FL, knowing which improvements to skip can help you focus your time and budget on updates that leave the best impression on buyers.

1. Skip major remodels before listing

A full kitchen or bathroom remodel might seem like a smart investment, but these projects are often expensive and time consuming. Unless the space has significant damage or functional issues, there’s a good chance buyers would rather personalize these rooms themselves.

Instead of gutting an entire room, consider making smaller improvements that freshen the space. Small updates like replacing outdated cabinet hardware, updating light fixtures, or repairing worn caulking can help a room feel well maintained without the price tag of a full renovation.

2. Luxury upgrades aren’t always worth the investment

Installing high-end appliances, custom built-ins, or premium finishes may sound like a great way to attract buyers, but luxury features don’t always deliver the return sellers expect.

Every buyer has different tastes, and features that feel like must haves to one person may not appeal to another. Rather than investing heavily in upgrades that could go unnoticed, focus on presenting a clean, functional home that allows buyers to imagine making it their own.

3. Think twice before replacing flooring

Worn or damaged flooring can certainly affect a buyer’s first impression, but replacing perfectly functional floors simply because they’re not your style may not be necessary.

Professional carpet cleaning, refinishing hardwood floors, or making minor repairs can often refresh a room at a fraction of the cost of installing brand new flooring. If the existing flooring is in good condition, many buyers will appreciate having the opportunity to choose their own finishes after moving in.

4. Avoid overdoing the landscaping

Curb appeal plays an important role in attracting buyers, but that doesn’t mean you need to completely redesign your yard before listing.

Large landscaping projects, mature tree installations, or elaborate outdoor features can quickly become expensive and may not increase your home’s value enough to offset the cost. Instead, focus on simple maintenance like mowing the lawn, trimming shrubs, pulling weeds, adding fresh mulch, and planting a few seasonal flowers to create a welcoming first impression.

5. Be careful with DIY projects

Taking on home improvement projects yourself can save money, but only if they’re done well. Uneven tile, sloppy paint lines, poorly installed fixtures, or unfinished projects can leave buyers wondering what other maintenance may have been overlooked.

If you’re not confident completing a project correctly, it may be better to leave it to a professional or skip it altogether. Buyers generally respond better to a home that feels properly maintained than one filled with noticeable DIY mistakes.

6. Focus your budget on simple improvements that make an impact

When preparing to sell, the goal isn’t to create a brand new home. It’s to help buyers see a property that has been cared for and is ready for its next owner.

“Cleaning, decluttering, and applying a fresh coat of paint are appealing to buyers and make the home look more spacious,” says Tommy Decebal Adamescu, Board Certified Master Home Inspector at HomeSpector, Inc. “Servicing the mechanical systems and maintaining the landscape can also have a good impact without overspending.”

Simple improvements like deep cleaning, decluttering, touching up paint where needed, and making sure heating, cooling, and plumbing systems are functioning properly can go a long way toward creating buyer confidence without stretching your budget.

7. Preparing your home without overspending 

It’s easy to assume that selling a home requires expensive renovations, but that’s rarely the case. Instead of investing in projects with uncertain returns, focus on improvements that help your home look clean, well maintained, and move in ready. By prioritizing practical updates over costly remodels, you can make a strong first impression while keeping more money in your pocket.

If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our Editorial Guidelines here.

Kierra Todd

Kierra Todd is a content marketing strategist at Redfin, where she crafts engaging stories about shopping for homes and open houses. Originally from Alexandria, VA, she enjoys returning home for special occasions and holidays to spend time with family. Her dream home blends warm, traditional charm with modern design and plenty of space to host friends and loved ones.

https://www.redfin.com/blog/home-improvements-to-skip-before-listing-your-home

TOPLEY’S TOP 10 July 30, 2026

1. Average Semi Stock -27% from Highs

 A Wealth of Common Sense


2. 3x Korea ETF -80% in 2 Mhs

zerohedge


3. QQQ 20 Points From 200-Day

StockCharts


4. Cost of Protecting NVDA Against Default Rising….Stock at 18x Forward P/E

Barchart


5. Market Holding Up in Tech Sell Off….Equal Weight Outperforming

Opening Bell Daily


6. Semiconductor Related IPOs

PitchBook


7. Stocks Related to Infrastructure Build Out of AI Big Corrections….VRT -40% …MTZ -48%

StockCharts


8. Updated-Price Increases Since Iran War

@Charlie Bilello


9. Gen X and Millennials Ahead of Boomers in Wealth

 A Wealth of Common Sense


10. 10 Ways to Build and Expand Perspective

Psychology Today Robyne Hanley-Dafoe Ed.D.

  1. Get curious: Perspective grows every time we are exposed to different ideas, people, and experiences. Read books written by people whose lives look different from yours. Listen to podcasts that challenge you. Ask someone, “Tell me more,” and listen to understand rather than just waiting to respond. Curiosity stretches perspective.
  2. Zoom in, zoom out: When something feels overwhelming, zoom in first. Name what’s happening and feel what you’re feeling. Then zoom out. Ask yourself, “Will this matter in a week?” “In a year?” “How does this fit into the bigger story of my life?” Distress narrows our focus until everything feels urgent. Perspective helps us respond to what is important versus simply reacting to what feels loud.
  3. Notice the stories you are telling yourself: The way we narrate our own lives becomes the perspective we live inside of. “I’m a bad sleeper” is a very different sentence than “I’m someone who can sleep well under the right conditions.” The facts of the night might be identical. The story you carry forward is not.
  4. Collect evidence: Our brains naturally collect evidence that confirms what we already believe. If we believe we’re failing, we’ll notice every mistake. If we believe we’re making progress, we’ll start noticing growth. When you catch yourself telling a difficult story, try asking yourself, “What evidence supports this?” and “What evidence challenges it?” Perspective grows when we consider the whole picture, not just the pieces our brain highlights first.
  5. Change your physical view: Sometimes changing your physical perspective helps to change your mental one. Get outside, stand under the big sky, walk beside water, look out over a landscape. There is something about being reminded of how vast the world is that helps us right-size many of our worries.
  6. Borrow someone else’s perspective: Sometimes we’re standing too close to the problem. Ask a trusted friend, “What am I missing?” or “Help me think this through.” The people who love us can often see possibilities that we’ve temporarily lost sight of ourselves.
  7. Practice the power of “yet”: The attitude we bring to our learning and challenges is extremely important. For example, “I don’t know how to do this” and “I don’t know how to do this yet” send our brain two very different messages. “Yet” leaves room for growth, learning, and hope.
  8. Recognize dual truths: Our brains are hardwired to focus on the negative, and in the midst of life’s storms, that makes perspective genuinely hard to hold o. Perspective expands when we stop believing we have to choose between two competing truths. For example, you can be disappointed and proud of how hard you tried. You can be grieving and grateful. You can feel uncertain and hopeful.
  9. Try “Unfortunately… Fortunately…”: This has become a family favourite of ours. It allows us to hold two truths at the same time, without pretending the hard part is not hard. Unfortunately, I’m stuck in traffic. Fortunately, I get more time to listen to my favourite podcast. Unfortunately, the presentation didn’t go the way I’d hoped. Fortunately, I know exactly what I’ll do differently next time.
  10. Build a gratitude practice: Our first thoughts of the day are the most powerful thoughts for the day. As soon as you are conscious or awake, say “Thank you.” Waking up to a new day is something to be grateful for. Then take a moment to hold space for what you have and what you get to do today.

Final Thoughts

Every day we have opportunities to zoom in with honesty and zoom out with wisdom. We can get a little more curious, gently challenge the stories our brains automatically tell us, and remember that one bad hour is exactly that: an hour. Perspective widens what we can see and what feels possible. It helps us make what matters most matter most.

https://www.psychologytoday.com/us/blog/everyday-resilience/202607/10-practical-ways-to-broaden-your-perspective

TOPLEY’S TOP 10 July 29, 2026

1. South Korea Stocks Semis/Memory and Leverage…. -40% from Highs ..Still Above 200day

StockCharts


2. Top South Korean policymakers apologise for single-stock leveraged ETFs

The introduction of single-stock leveraged exchange-traded funds has been blamed for intensifying a rout in the country’s stock market.

SEOUL – Top South Korean policymakers apologised on July 29 over the introduction of single-stock leveraged exchange-traded funds (ETFs), which have been blamed for intensifying a rout in the country’s stock market.

Finance Minister Koo Yun-cheol said he was sorry for introducing the product without careful consideration, responding to a lawmaker’s demand for an apology during a parliamentary session.

At another parliamentary session, the country’s top financial regulator made similar comments, after several lawmakers criticised the release of the funds for exacerbating a sell-off in South Korean equities in July.

“As the ultimate authority responsible for the financial markets, we feel sorry that we have fallen short in properly meeting the public’s expectations” over regulating the product, Lee Eog-weon, chairman of the Financial Services Commission, told the hearing.

The apologies came as the benchmark Kospi plummeted as much as 12.6 per cent on July 29, led by losses in South Korean chip stocks Samsung Electronics and SK Hynix, which together account for nearly half of the index’s market capitalisation.

The regulator’s approval of single-stock leveraged ETFs has come under fire as South Korean retail investors pumped money into the product, mostly tied to Samsung or SK Hynix, betting on no let-up in robust demand for artificial intelligence.

Shares of Samsung Electronics fell as much as 14 per cent on July 29 in Seoul trading. SK Hynix plunged as much as nearly 20 per cent, despite reporting record earnings. REUTERS

https://www.straitstimes.com/business/top-south-korean-policy-makers-apologise-for-single-stock-leveraged-etfs?ref=


3. Intel INTC -40% from High ….Still Above 200day

StockCharts


4. Roundhill DRAM ETF -33% One-Month

Google Finance


5. Market Cap Losses in AI Related Tech Stocks


6. Vanguard Value ETF VTV +18% vs. Vanguard Growth VUG +3% 2026

YCharts


7. International Dividend Payers DTH +12.5% vs. VUG Vanguard Growth +3% 2026

YCharts


8. Tech Sector Beats Earnings and Trades Down

Tech EPS beats. “Weird times for the Tech sector. On average (so far) this earnings season, a Tech stock that beats EPS estimates is underperforming the S&P 500 by 3.3% the day of/after reporting”.

@kevrgordon


9. Up in Smoke

Semafor


10. Venture Capital Only Funds 1% of American Business

The 99 Percent Funding Rule Every Founder Should Know Before Borrowing Money-INC.

Every funding approach has its purpose. The key is to find the approach that’s best for what you need.

BY TOBI OPEYEMI AMURE

Venture capital just had its best half-year on record, with more than $400 billion raised industry-wide. None of that money was going to you if you were a regular business, however. Only a quarter of one percent of American employers benefited, leaving the other 99 percent to take a different funding approach altogether.

If you’re among that 99 percent, this doesn’t mean your business is uninvestable. It just means you’re playing a different game with its own pros and cons. Every funding approach has its purpose. The key is to find the approach that’s best for what you need.

Here are some of the smart approaches businesses use to get funding.

Start with the money your customers already owe you

The cheapest capital is cash you can collect even sooner—not a loan. Most of it rests in the customer’s purse with a desire to pay early if there’s an incentive. However, before you seek such funding, find out what getting paid early actually costs.

Featured Video

EE How to Win Over Investors With a Strong Proof of Concept

If you offer a 5 percent discount for annual prepayment on a monthly contract, that works out to roughly a 10 percent discount over a full year. That’s close to what a bank would charge for the same money, minus the wait, the collateral, and the paperwork. You keep your collateral, you’re not personally on the hook if it goes wrong, and there’s no paperwork to fill out.

It’s also quicker to use than it appears on the surface. Sixty percent of small employers sought external finance in the last year, and over half of them used it merely to meet running costs, in effect a timing issue disguised as capital financing.

One founder who runs on this principle is Seyi Ebenezer, founder and CEO of Payaza Africa, a fintech company processing over $4.16 billion in transactions across 26 countries. Ebenezer, who hasn’t raised venture capital, says operational expenses should be funded by operational cash flow, not by borrowing first and asking later.

Bank and SBA credit are cheaper than the alternatives, and slower than you want

Banks are next, and they’re still the best deal if you can wait. The SBA caps how much a lender can add on top of the prime rate, and that allowed markup shrinks as the loan size grows, per the SBA’s 7(a) terms. A $300,000 loan can’t legally exceed 11.25 percent; push past $350,000, and the ceiling drops to under 10 percent.

The catch is speed, or the lack of it. Underwriting takes weeks, and sometimes longer, just at the time when you need it the most, which is last month. According to Ebenezer, bank credit review can run “five to eight weeks”, he says, “and by then, market opportunities may already have passed.” Knowing where to apply is also important; small banks had the highest approval rate of any kind of lender last year, with 57 percent of the people who applied being approved

Grants are real money, and they just came back online

If your business conducts research, then you should look into grants. Congress last year authorized federal SBIR and STTR funding for six months before it ran out, after which it was reauthorized through 2031. The lesson to learn from that gap is this – this money goes to a mission, not your growth plan, and a source that Congress can remove at the drop of a hat isn’t one to build a hiring plan around.

There is no equity diluted, and there is no equity to pay back. But the awards are still relatively small: USDA has capped most of its grants at $175,000, and the Energy Department’s Phase I awards are capped at about $200,000. The largest of the three is $1.2 billion annually dedicated to life science research by NIH, not as growth capital.

Revenue-based financing, and the number in the term sheet does not show you

These deals make cash loans against future sales, which are returned as a portion of monthly earnings until you reach a ceiling: Borrow $50,000 at a cap of 1.3, repay $65,000. In theory, that appears to be a simple, flat-rate charge.

It’s not, however, because you don’t repay it in one lump sum at the end—you repay a little every day from day one. That means the amount you actually still owe keeps shrinking the whole time, so on average you’re only carrying about half the original balance, not the full amount. This is exactly what makes the real cost so much higher than the flat cap suggests.

I run my own company on this kind of financing, and the highest-return hour I’ve spent on any of it was rebuilding a term sheet into a monthly repayment schedule before signing, because that’s exactly where the real number shows up.

None of this makes revenue-based financing a trap to avoid outright, though. It means this option only makes sense for spending that pays back on the same fast timeline the financing assumes. Inventory that turns over in 90 days can carry that cost and still work; a hire you’re planning to keep for years cannot.

Choosing the right fit

These approaches are really the whole funding ladder for the 99 percent, once you see it laid out end to end. From my experience, the only rule that’s held every time is this: cheap, slow money belongs on things with a long payback, and expensive, fast money belongs on things that pay back just as fast. Before signing anything this quarter, ask for the total dollars repaid, not the rate, and run it against your worst month, not your average one.

https://www.inc.com/tobi-opeyemi-amure/funding-rule-founders-entrepreneurs-borrowing-money-business-loans/91380305?utm_source=newsletters&utm_medium=email&oly_enc_id=9218E7578789E9D