Bad Credit Small Business Loans

How to Finance a Business
by John Mussi


How to finance a business is one of the main concerns that every new business person has to resolve. There are two main ways of financing a business, equity financing and debt financing.

The majority of start-up or small businesses use limited equity financing. As with debt financing, additional equity often comes from non-professional investors such as friends, relatives or colleagues.

However, the most common source of professional equity funding comes from venture capitalists. These are institutional risk takers and may be groups of wealthy individuals or major financial institutions. Most specialise in one or a few closely related industries.

Venture capitalists are often seen as deep-pocketed financial benefactors looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns which will return higher-than-average profits. Venture capitalists may scrutinise thousands of potential investments each year but only invest in a few.

Different venture capitalists have different approaches to management of the business in which they invest. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.

Banks are one of the most common sources of debt financing. There are many other sources for debt financing including: savings, loans and commercial finance companies. It is also possible to ask for funding from family members, friends or colleagues, especially when the capital requirement is small.

Traditionally, banks have been the major source of small business funding. Their principal role has been as a short-term lender offering demand loans, seasonal lines of credit, and single-purpose loans for machinery and equipment. Banks generally have been reluctant to offer long-term loans to small firms.

In addition to equity considerations, lenders commonly require the borrower's personal guarantees in case of default. This ensures that the borrower has a sufficient personal interest at stake to give paramount attention to the business. For most borrowers this is a necessary evil.


About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.




Small business loans can help you write your success storyby Amanda Thompson


Scene one: you are sitting on your office desk surrounded with files and work overload, you are thoroughly frustrated. You work hard and get paid. But somewhere something is lacking.

Scene two: you work for yourself; you do what you want to do. You work hard and you are satisfied. You go home a better person each day cause you work for yourself. And you definitely earn more.

You don’t even have to look at the results; votes for Scene two are definitely more. You want a life like that. But every business entails capital. Small business loans can accrue the capital you need to start a small business. With so many online sources for small business loans, you don’t need to rely on family or relatives for capital.

Homework! Yes, it is not meant for school kids only. You too have to do it, to find the right resource of your small business loans. There are a few points, the loans lender will be looking at, when he is contemplating providing you small business loans. A lender will be paying attention on your education, experience, business plan and its feasibility. Other things that are crucial are repaying ability, credit history, equity, presence of collateral.

The first things will be your ability to repay. Every loan is meant to be repaid. Loan lender wants his money back. They will look for a business that has existed for some years now. If you are starting a new business, prepare an application that will prove to them that you will repay the loan. If your business is low risk proposal, you are getting a small business loans.

Presence of collateral would provide a positive boost to your small business loan application. The financial institution would be looking for an alternative source to payback the loan. Without collateral, you would need a cosigner who can pledge collateral. Collateral can be any business or personal assets that can be sold to pay for the small business loan. The market value of collateral is not taken into account but the value which results after negating the valued lost when the collateral is liquidated.

Equity is also significant. The equity will be in the form of money you invest in your business. The loan lender will be very pleased to know, if you have invested your money in the business. If there is enough equity in your business to payback the loan, the small business loan will be yours.

The next crucial thing will be called a credit report. If your credit report is good, your small business loan application will be reaching the top of the application pile. If you have no idea what your history reveal for you – get a copy of credit report. Make sure the details given there are correct. In case there is an error, get it corrected before you apply for small business loans. Pay all the pending debts and get going.

The question that you will be facing with small business loans is what you are going to do with the money. Give concrete answers. Convince the lender that you will repay the small business loan with long term profitability that your plan ensures. Your confidence will be a key to unlocking small business loans.

Small business loans are available in three forms -

Short term loans will solve funds problem for immediate business starting. Their term is usually one year or less.

Intermediate loans are meant for large initial expenses with loan term between one to three years

Long term loans supply for initial costs of a start up business and extends from three to seven years.

Documentation! Yes, just get ready with your file of documents and make sure it has – proof of ownership, letters of reference, contracts, tax returns, financial statements, credit references, Incorporation or LLC organizational documents. The loan lender might ask for any other documentation for
Small business loans.

Read the small business loan agreement carefully and have your lawyer review it. Some terms can be negotiated with the loan lender. If your circumstances are favourble, you can even manage to waive some terms. Obtain terms which you are comfortable especially with regard to repayment process and interest rates.

You can have a great idea, great people to work with, a well written business plan – everything, almost everything. All you need is a small business loan to make it a success. So, how do we begin writing the success story? With writing small business loans application.

Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chanceforloans .To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk


About the Author
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU.To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk




Benefits of a Business Loan
by John Mussi


There are many benefits in choosing a business loan, some of which are listed below:

What's the fastest way of raising money for your business idea? A business loan, but what kind of loan should you get and who should you get your loan from. You could ask family and friends for a loan but they might not be as convinced about your winning idea as you are.

Where you go for finance depends on how much you need to raise and how you set up your business. Sole traders and partners are liable for all the debts in a business venture, whereas with limited companies, the directors are liable only for the amount of debt they personally hold in the company.

A business loan is designed for a wide range of UK small, medium and start-up business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Finance is the lifeblood of a business. Without it you cannot grow.

Business loans are one possible source for business cash. You should be sure that the specific need for the money is applicable and that the loan is suitably structured.

Business loans have a variety of advantages over other forms of finance:

Flexibility: A business loan allows you to preserve your cash and working capital.

Retention of Ownership: You retain the current ownership of your company instead of raising funds by selling an interest in your company to an investor.

Cash Flow Management: Business loans can provide you access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.

Budgeting: Business loan schedules are fixed at outset, which means cash management is more predictable.

Tax Advantage: Interest payments on your loan are tax deductible.

Business loans are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders.

Business Loans can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.

Business loans are available for Self-Declaration with CCJ's & Mortgage Arrears

A business loan can be secured by all types of business property, commercial and residential properties.

Business loans are normally offered on Freehold and long Leasehold.

A Business Loan can be used for:

Acquisition, expansion or renovation of premises

Taking an interest in a professional partnership or business

Injection of capital into a business

Development finance

Debt consolidation




About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website


Business loans: if you know how to make good use of money and expertise by Pamella Scott


Are their rewards of being your own boss? Yes, in fact many – you make the rules, you work for yourself, you take home the profits and you get to do what you want. Business and finances are closely intertwined. Finances are basic to business development. Any new scheme or business idea requires money to grow. Business loans are the most popular way of raising finances for business.

A typical advantage of business loans is that the loan lending company or the bank has claim only on the interest rate of the loan. Unlike an equity investor, the loan lender would not be entitled to percentage in business profits or share in the company. You retain the ownership of your business. Business loans can get money fast and easy for any kind of business need like starting a small business, refinancing, expanding your business, purchase or any other commercial investment.

Business loans are offered as secured and unsecured business loans. A secured business loan can serve as the simplest, most efficient way of finding finances for your business plan. Secured business loans come with many benefits which include lower monthly payments, facility to borrow more and spreading the repayment over a longer period of time.


Secured business loans certainly score more than other form of finances. With secured business loans you can boast of flexibility which allows you to conserve your cash and working capital. You can use these funds for any purpose like paying off current debts. Secured business loan can provide you with the ability to design your very own repayment schedule that fits your budget. You can get access to cash with minimal up-front payments.

A secured business loan would enable you to retain the legal title of the assets you are placing as security. Your home, real estate, commercial equipment, vehicle or any valuable asset can act as security for secured business loans. The main disadvantage with secured business loan includes the fact that there may be many events that may be taken as defaults on the loan like late payments, bankruptcy and violation of any obligations in the loan documents. Talking openly with your lender about any default can easily sort out any inconvenience at all regarding secured business loans.


Unsecured business loans also offer similar advantages as its secured counterpart minus offering any collateral for the loan claim. However, unsecured business loans might entail a higher rate of interest. The benefits of flexibility, retention of ownership, budgeting is same as secured business loan. Interest payments on unsecured business loans are tax deductible, whereas purchases financed from profits are made out of taxed income. Unsecured business loan are scheduled at the outset, so cash management is easy. With unsecured business loan you would be required to provide some additional guarantees which can be supplied from your bank, your partners or you. This may affect your credit rating and standing with your bank.

Credit history is the criterion that helps the lender to decide whether you are a credit risk or not with respect to unsecured business loans. A credit history that is flooded with late payments, defaults or bankruptcies won’t leave a positive impact on the loan lender. If your credit history is poor, an unsecured business loan application with a letter explaining your changed circumstance would leave a positive impact. Honesty in giving out credit information is the best way to deal with negative credit. The best way of getting your unsecured business loan approved is to prove that you can and will repay the loan. Also, showing that you have invested in your business would provide the lender with the satisfaction of knowing that his financial interests is united with yours.

For business loan, be prepared with business financial statements, business plan with financial projection, personal tax returns. There will be questions asked. Be prepared to answer them. Emphasize on your financial performance and get an accountant to help you with it. Be clear about why you need this business loan and be prepared to explain that to the loan lender. The loan amount on business loan can range from £50,000 to £200,000 and above depending on your status.

Getting money through business loans - is only the first step. The next step is being a good borrower. This will provide you with the cooperation when you require it. You would be required to produce financial statements on a regular basis. Be ready to provide them. Understanding the requirements and executing them is the best way to developing good business relationships. Not everyone has the acumen to start a business. You have that, don’t let it go awry. Take a business loan.

Few identifiers are necessary to identify your kind of loan. An unprepared borrower might find it very confusing to get out of the jargon of loans in UK. A loans borrower/user demands for timely, reliable, accessible, comprehensive, relevant and consistent loan service.Pamella scott is constantly trying to help you find such a loan service online.To find Secured loans,secured personal loans,secured debt consolidation loans in uk that best suits your need visit
http://www.easyfinance4u.com


About the Author
An unprepared borrower might find it very confusing to get out of the jargon of loans in UK. A loans borrower/user demands for timely, reliable, accessible, comprehensive, relevant and consistent loan service.Pamella scott is constantly trying to help you find such a loan service online.To find Secured loans,secured personal loans,secured debt consolidation loans in uk that best suits your need visit http://www.easyfinance4u.com



How to Choose a Bank for your Small Business by C Mwape


You should thoroughly consider your business needs when selecting a financial institution for your small/home business. You may want to consider the following points:

- The types of products and services that are offered.
- The bank's criteria for qualifying for a loan.
- The minimum balances for accounts, interest rates and charges for account services.
- Location and Access to ATMs
- Online Banking Services

One bank may specialize in home loans or auto loans while another may focus on commercial loans for businesses. Some banks may only offer basic deposit accounts while others have lock box services, sweep accounts, and even online banking! It's very important to evaluate your business needs before you select your banker.

Here are some of the things that your banker may be able to help you with:

- Help you with the cash management needs of your business.
- Offer investment products of varying maturities or risks.
- Provide advice regarding what it will take to qualify for the loan that best meets your needs.
- Provide special loan programs for small businesses, including SBA loan programs and other government-guaranteed or agency loans.
- Assist you with finding financial information on your industry.

So compare different banks in order to find the one that will serve your business's needs and will also provide support and assistance during the infancy stage of your business. Selecting a bank that you can work with will be especially important as your business grows.

Start shopping around by gathering information to help you make this important selection. Compare interest rates on deposit accounts and basic consumer loans (most business loans are negotiated, so the rates won't be posted at the banking center).

Also, look carefully at the charges for services. Tell them about your business and the form of organization so that they can tell you what special products and services or restrictions might apply.

Before selecting a bank, be sure to have a good understanding of your own business needs, and what you need from your bank. If you know what you will need from a bank, it will be much easier to evaluate and compare between various services.

Remember, it is a good idea to establish a relationship with a banker, before you need money. The right banker will be someone that understands the needs of emerging and growing businesses. They will be interested in your business dreams and will help you achieve them.


About the Author
Copyright © 2005. Chileshe Mwape writes for the US Banks Website: http://www.us-banks.org Find informative articles and news stories about banking and finance. This article may be reprinted as long as the above link is active and clickable.


FACTORING: Cash Flow Solution For the 21st Century by Eric Barnes


Cash flow, the "energy" moving in and out of your business, is the most critical item on any business priority list. Without cash, the business can't pay its bills, expand, or even remain in operation.

Most entrepreneurs know what I mean. What business doesn't experience a cash low crunch when the need to expand - to invest in growth - is hampered by the 30, 60, or 90-day cycles inherent in the accounts receivable loop? Doesn't it drive you a bit crazy when those 30 to 60 day "loans" to your customers keep your own money out of your hands?

What if you were able to get cash for those invoices immediately?

The answer could be factoring, the most powerful non-debt solution to cash flow problems available to business today.

Factoring does for wholesale companies (selling to other companies, institutions or governments) what Visa® and MasterCard® do for retail merchants. In retail, the piece of paper you sign is called a bill of sale. In wholesale, that piece of paper is called an invoice. In both cases, that piece of paper is a "promise to pay."

Hundreds of thousands of companies nationwide use factoring as a sophisticated business tool. In some industries, such as trucking, furniture and apparel manufacturing, most companies factor as a matter of good business as well as survival.

You factor your invoices/accounts receivables, converting them into cash within 48 hours by selling them directly to a factor at a discount, much as a retail store sells its bill of sale to Visa® or Mastercard®. That provides immediate cash flow to your business rather than the usual 30-90 day delay. It creates the absolute and predictable income control you need to expand and flourish in your industry, giving you a powerful competitive edge. It also reduces overhead, as you will see.

Unlike bank loans, factoring doesn't rely on your credit rating primarily. As you are selling your invoices/accounts receivable, (thus not creating debt), the factoring company is interested mostly in the credit rating of your customers, the payers of the invoices.

The factor is not dependent on your hard assets, bank balances, business history, tax records or credit, though he may ask for some of this. His major interest is your ability to create business and add sales.

Benefits of Factoring

The primary benefit of factoring is that when bank loans are not available, or your credit line is maxed out, it is a sure source of immediate working capital.

Secondarily, there is no debt created, improving your credit rating and your financial statement's bottom line. It also provides bad debt insurance, as the factor assumes the liability for nonpayment of the invoice. This is sure to make your banker happy.

Other benefits include continuous cash flow, increased production and sales, cash for marketing plans, new equipment purchases, plant expansion, handling payroll or tax shortfalls, lowered overhead, and total elimination of accounts receivable maintenance and the personnel costs associated with it.

Next to the instant liquidity provided by factoring, the most valuable benefit is ridding your business of credit and collections (non-income producing activities) releasing you and your employees to focus full attention, energy and assets on production, marketing, sales and service.

Is Factoring A Solution For Your Cash Flow Problems?

1) Are your receivables above $25,000 month, with invoice size usually above $300?

2) Is your business sometimes short of cash?

3) Could a better cash flow...

allow you the advantage of discounts and special offers?
generate more sales?
increase production?
increase marketing efforts?

4) If your credit and collection efforts were eliminated, could you put more attention on production, marketing, sales and service?

5) Would your overhead be lowered?

If your answer is "YES" to one or more of these questions, factoring may be a viable strategy for your cash flow requirements and should be explored.

Summary

Factoring is a powerful financial tool for a small or mid-sized company hindered by lack of bankability or other sources of funding. It creates the needed control over your cash flow that translates into greater production, sales and profitability. It's certainly worth a look.

Ten Major Benefits of Factoring Receivables

1. Full control of your cash flow strategy.
2. No debt created.
3. Elimination of credit and collection efforts (reduced overhead).
4. Elimination of accounts receivable ledgering (reduced overhead).
5. No further risk of credit losses.
6. Improved customer relations. No further dunning calls.
7. Sales increase levels no longer tied to financial sheet ratios; speed of sales no longer limited.
8. Improved capacity to pay suppliers and gain cash discounts, often totally off-setting factoring costs.
9. Improved bank balances and company credit rating.
10. No loss of cash value due to inflation.

The High Costs of NOT Factoring

1. Devaluation of your money due to inflation while waiting for payment.
2. Inability to take advantage of net and volume discounts and other purchasing opportunities.
3/ Worsened customer relations due to collection efforts and dunning phone calls.
4. Inability to expand.
5. Cash flow planning and control skewed due to uncertainty of payment dates.
6. Inability to increase inventory.
7. Bad debt losses.
8. Continuous cost of ongoing credit and collection efforts.
9. Continuous cost of accounts receivable maintenance.
10. Inability to implement marketing and sales plans.
11. Lowered financial statement and bank balances.
12. Loss of working capital.
13. Restrictions on action due to credit line and other borrowing limits.
14. Cost of executive and staff time fixed on non-income producing activities.


About the Author
Mr. Barnes is President & General Manager of Capital Funds Group Ltd., a Canadian based consulting firm specializing in putting companies and financing together. They also work with non-US companies to take them public rapidly and inexpensively, then funding them with expansion capital.

Visit our Web Site
Mr. Barnes email address is pres@capitalfundsgroup.com



Building Business Creditby Simon Harris


Let’s imagine that you wanted to start a business—you have a great business idea, and now all that you need is business credit so that you’ll be able to borrow money against your business without having to dive into your personal assets or personal credit. This means less risk for you, the owner. Some credit reporting agencies sell a business FICO score based on both the risk of the business and the personal credit of the owner. In some instances, the owner’s personal credit is linked to the business credit, but it’s best to keep them separate if you can. Building business credit is completely different from building personal credit. In addition, you don’t have the same credit protection laws with business credit that you do with personal credit.

There are certain keys that you can follow to help ensure your business credit gets off to a great start. Follow along as we discuss them below.

First, set up the proper business structure and take basic steps to ensure your business appears stable to the business credit bureaus. That means getting the proper occupational licenses, corporate structure established and a business credit profile. A business credit profile helps you to build business credit without using your personal credit. Benefits in having a business credit profile are numerous. For one, you will have more cash for the business, convenience in purchasing, protection of your personal assets, limiting of personal liability from the business, and the ability to prepare your business for future lending needs.

Secondly, you need to borrow or buy products and services from companies that will report your credit history to the major business credit reporting agencies such as Dunn and Bradstreet and Experian. Unlike personal credit ratings or FICO scores; income or better yet income potential, plays a huge roll in business credit scores. The top FICO scores are reserved for the large stable businesses. But don’t be discouraged, with a little time, you business FICO will skyrocket!

Next, in order to enter the business credit market, you’ll need to do a credit assessment to determine if you comply with the lender and credit bureau’s requirements. Then look for businesses that issue credit without the need for established business or personal credit checks or guarantees. Once you have transacted business with vendors on credit, you can use those references to build your credit profiles with the credit reporting agencies.

In many states, there are non-profit organizations and/or government organizations that will help you with setting up business credit. Often there are loans available for start-up businesses or even government grants. Check your state government web sites for such organizations. Many retired owners and businessmen volunteer to help start-up businesses. By researching your options prior to a business start-up; you will not be struggling later with questions. With any luck building your business credit will be a smooth transaction with a huge net profit for you in the end!



About the Author
This article providec ourtesy of http://www.debt-consolidator-guide.net


Oasis in a Cash Flow DesertFour Resources That Increase Small Business Capital Streams by Mark Uptain


For small business owners, an enthusiastic vision for smooth, steady growth can become nothing more than a mirage once company cash flow problems begin to heat up. Most will struggle with the timing of payment from clients or customers at some point, all while attempting to pay their own bills in a timely fashion. With all of the best laid plans for rapid flowing cash streams evaporating down to just a gurgle in the ditch, the potential risk of joining the ninety-percent of businesses that fail within their first three years of operation becomes a very sobering possibility.

Many of us would like to operate our companies the same way we do our personal lives. If we need a new lawn mower, we simply pull out the trusty credit card, sign on the dotted line and put off worrying about it until next month. Meanwhile, we enjoy the benefits of the new equipment, at least for the time being, without it costing a dime. Though in this way we may seek a certain gratification from owning our possessions, it’s really just a trick we play on ourselves. The above “charge now, pay later” example doesn’t really convey any kind of real, initial ownership. Instead, it’s just a very common example of a direct loan. The credit card company facilitates a credit arrangement between you and themselves, and the proceeds of this extension are directly used and repaid by you, the borrower.

In business, however, whipping out the plastic to cover expenses is definitely not the best idea. Many have given in to this temptation, and are paying the heavy cost of damaged or ruined credit. And with that, their chances of digging out of the hole with other means of financing, which should have been sought in the first place, are slim to none.

Thankfully, there are better, specially designed cash flow tools available for businesses that are beginning to feel the scorch of the capital income desert. Many business owners are unaware of these tools. Others that are aware fail to take advantage of them. All of them would do well to at least consider the following:

Purchase Order Financing - Simply put, this tool is a loan against the future income of the business. It’s designed primarily to provide the cash needed to pay suppliers and sales-generating business expenses while patiently waiting for clients to pay their invoices. Similarly, purchase order funding is utilized for the completion of existing orders by securing materials when working capital is running short. Once purchase order financing has been successfully utilized for some time, it usually becomes easier for the business to take advantage of more economical means of credit.

Equipment Leasing - With it’s one-hundred percent financing, preservation of credit lines, tax benefits and the ability to avoid obsolescence, equipment leasing is one of the sharpest and most efficient cash flow tools a business owner can utilize. Paying a premium in order to own equipment can be a huge waste of money. What companies profit from is the use of equipment, not the ownership. Leases can be extremely flexible to meet the custom needs of each business. Therefore, both small and medium-sized companies can greatly benefit from them.

Accounts Receivable Financing - This tool provides a line of credit secured by the company’s accounts receivables. It is a strong method of financing for both short-term working funds and the permanent working capital requirements of businesses that are growing. The paperwork is considerably less involved than in more traditional types of business loans. It is also especially helpful in providing financing flexibility to firms that are growing rapidly.

Factoring - This is the sale, at a discount, of a business’ accounts receivables. It is not based on the company’s ability to repay the money advanced. Instead, it based on their customer’s ability to pay what is owed. Once the factoring facility purchases the accounts receivables, they assume the responsibility for collection. It is not a loan, so neither the time in business, nor the company's debt to equity ratio are a consideration. A business has the freedom to sell only the AR that it chooses, and is not obligated to continue to do so. Factoring is an excellent source for additional working capital needed by both small and startup businesses.

The descriptions above are general, and it’s important to understand that there is flexibility and variation within each lender program. In order to get educated on the details of these types of tools, and to find which of them might be beneficial to your situation, talk to a professional loan broker or a commercial lender representative. He or she will explain the benefits of each, and help you decide which tools are right for keeping your business out of the cash flow wasteland.


About the Author
Mark Uptain is the owner of Regent Business Capital, a loan and lease brokerage that works with lenders nationwide to help small and medium-sized businesses get financing. His website, www.EquipmentLeasingSource.com , offers free equipment leasing information and competitive quotes to businesses throughout the United States





Banking For Small Businesses by Neil Brown


Starting a new business is a daunting task, not least because of the financial systems you have to set up including your business finance systems. There are many parts to your business finance. It doesn't matter what size the business is there is still a degree of complexity. We however are concentrating on the smaller businesses and the financial requirements placed upon them. The purpose of this article is to provide some helpful background information, which we hope will prove useful.


The types of finance available to small businesses is pretty similiar to that available to the private person. Financial institutions will offer the usual banking applications such as business current accounts, business credit cards, business loans and mortgages. One notable difference however is that the charges tend to be higher and the conditions tighter for business products over personal ones. The majority of banks will offer a full range of products and have dedicated departments and personnel in place to help you and your business.


Online business banking is especially important to the small business, particularly for those business people who are continually on the move. Previously a small business man or women would be forever in and out of the local branch of their bank to either cash cheques, pay in recieipts, arrange overdrafts or finance. With the arrival of online banking and the accessibility of the web, it is now easy to control the finances of the company at any time of day and any place. The days of wasting time in the banks, which would be better employed running the business, are thankfully in the past.


Financial institutions particular value business customers very highly. As a result they are very competitive when comes to enticing new business customers. New businesses are particularly attractive and banks will often agree very good deals to encourage the startup enterprises as once they have the custom they are in a good position to retainit. It is always prudent to shop around and talk to numerous banks to find the best deals on offer. Consider not only the rates for new business, but also how the current customers fair when compared to other banks. This will give you a good idea of the long term competitiveness of an existing bank. There are several internet comparison engines that can get you started on this process.

About the Author
Neil Brown has contributed to many finance sites such as business finance and credit card companies.

Small Business Grants
Tips from the Pros by Howard Schwartz


Every business starts with an idea or a dream. To implement this idea or to turn your dream in to reality you require finance. A grant supports the business ideas and turns the dreams of an entrepreneur in to reality.

There are many types of grants offered by the Governments and other financial institutions that include individual grants for personal necessities, business grants for starting new business, education grants for funding education and many more. Grants are always a feasible option to support existing business or financing new business in all fields. While the United States government does not offer direct grants for supporting small business there are many state development agencies, non-profit organizations, intermediary lending institutions and local government, which offer grants to expand and enhance small businesses.

Small businesses always play a significant role in the economic growth of a country and that is the reason governments are always ready to offer financial resources to facilitate small business. You can receive small business grant to start up any type of business. From carpet cleaning, photocopying, private tutoring services to day care business you name any business and these agencies have the grants for you. All U.S. citizens and residents are eligible to receive U.S. Federal Government, State Government and Private Foundation-funded grants and loans. Apart from this these grant programs do not require credit checks, collateral, security deposits or co-signers. Small business grants are easily available. Anyone who is 18 year old and thinking about going into business for himself or wanting to expand his existing business can apply for the grant. Grants varying between $500.00 to $50,000.00 can be obtained from these agencies. Usually there are larger payments for business start up costs. If you are an entrepreneur than you can use the privileges provided by the government. Small business grants are the ideal way to fulfill your dreams of becoming a business owner.

For additional information on Small Business Grants please visit:
http://www.hjventures.com/grants/government-grant-proposal.htm




About the Author
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing business plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding.
For more information: http://www.hjventures.com


Financial dose for businessby Andrew Baker


The goals of businesses have undergone much evolution from the times when entrepreneurs were content with anything that they received above the capital invested. Businesses now want to expand their reach globally, riding on the wave of technology.

Nevertheless, technology does not come cheap. A huge amount of capital is required to buy the latest in technology. Businesses generally have two options. The first will be to purchase the latest technology. This however suffers from the disadvantage that it creates a fixed charge on the balance sheet. If the case is of a new start up, this can mar its performance from the very beginning.

The next option is a secured business loan. A secured business loan is a loan where the businessperson can have funds to finance any project. It is more beneficial than the former because it does not eat into the resources base. Moreover, the loan is taken for a larger period. Thus, the businessperson can continue his operations without thinking of the repayment.

Secured business loans are advanced against collateral. Larger loans require larger collateral. Lenders get the rights to plants or machinery or any tangible asset of value. This will act as guarantee for the loan. The collateral is safe and the borrower can get the rights back after the loan has been paid in full. However, the opposite is also true. The loan company will seize the asset on which the loan had been secured to retrieve the payment.

It is generally difficult to get secured business loans. Most online lenders offering personal loans may not be offering good deals on business loans. The first step should obviously be to contact the bank through which the regular business dealings take place. Since they know the business and its credit well, they offer the loans in a lesser time.

Capital is a very important part of the business. Many businesses have failed because of inadequate funds. Businesses have to make hasty decisions. Even small delays can result in losses of millions pounds. Making a survey of the time loan companies take to approve the loan application will be beneficial in deciding when to start the loan process.

Loans are available for all kinds of businesses, whether small, medium, or large. The repayment period may differ according to the loan taken. Long-term loans are available for a period of about 25 years. Short-term loans are repayable within a year.

If you are a small organization, it will be better to look for a lending organization that caters to your kind of business. Bigger lenders too, may be contacted, but may not service small business with the same zeal as they would to a bigger enterprise.

The secured business loan makes the business liable for its repayment. The principal amount of loan grows with interest. This makes a serious planning for the loan very necessary. The first thing to do would be to question the actual need for the loan. There are certain needs that can be postponed or make the need redundant. This would save the organization the extra liability of the secured business loan.

Deciding well in advance the use to which the capital will be put to, will be the next priority. Businesses must resort to loans finance only for projects that aim to bolster the vision of the business. Taking loans for frivolous reasons will affect its performance. Taking too many loans will also affect the debt to equity ratio. This means that the extent of loans and other sources of finance is greater in the capital.

Apart from the traditional monthly payment type, borrowers can repay the secured business loan through a variety of methods. Borrowers can pay equal monthly installments and pay the remaining amount through a final balloon payment. Interest only payment will require a monthly payment of interest and a final balloon payment to pay off the remaining amount. There are many more features available on the Secured
business loans to help businesses grow.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the personal loan web site http://www.ukfinanceworld.co.uk for any type of uk secured and unsecured loan please visit
http://www.ukfinanceworld.co.uk




About the Author
Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the personal loan web site http://www.ukfinanceworld.co.uk for any type of uk secured and unsecured loan please visit http://www.ukfinanceworld.co.uk



Applying For A Business Loan:
Putting Your Best Foot Forward by John Day


Remember the book called “Catch 22”? It is now commonplace to call a “Damned if you do, and damned if you don’t” situation a “Catch 22”. This is a predicament that many small business owners have found themselves in. Running short of cash, the owner goes to the bank to borrow money, only to find that they don’t qualify for a loan because they don’t have enough money. This is quite maddening to the business owner who laments, “If I had enough money, I wouldn’t be asking for the blankety-blank loan!”

Seems kind of stupid, but you have to understand what bankers are up against. Number one, they have to have some assurance that they are going to be repaid. They have to sell this loan to the “loan committee” of the bank, and they are not about to present a package that will make them look foolish. Furthermore, they have auditors who look very closely to make sure the loans were issued according to bank policies and procedures. If a loan officer has too many loans that “go south”, then his/her track record starts to affect his/her career.

This is why you find many loan officers who go strictly “by the book”. These people refuse to look at any extenuating circumstances that might indicate that you would be a “good risk” regardless. Unless you fit into their narrow criteria of “risk” you might as well forget it.

It is best to find a bank manager or loan officer who has plenty of self-confidence, is familiar with how small businesses operate, and is willing to look at the big picture. They can sense whether a loan applicant is solid or shaky. This is the point at which you, the applicant, will want to put your best foot forward.

You may find that as long as you have substantial equity in a home, good credit, and adequate cash flow that you are a tasty morsel in the mouth of a loan officer. However, if you are short in any of these areas, you are going to have to overcome the banker’s natural skepticism.

First impressions are paramount. If you are not organized, you are dead meat. If you are asking to borrow money, then you must possess the skills necessary to pay the money back. These are skills, such as, the ability to think and plan ahead, and the discipline required to operate your business in a professional manner. This means having the know-how to gather information and organize it in such a way that you can make meaningful and timely decisions.

Ask any banker and they will tell you of countless business customers that come in seeking a loan who don’t even know what a financial statement is. There are many other business customers who seek loans that do have a financial statement but haven’t a clue as to what it means. This does not bode well for first impressions.

Compare the individual who comes to the bank, nicely dressed, well groomed and possesses not only a financial statement that he/she understands, but has a plan as to how he/she will pay the loan back. This phenomenon is so rare that a banker will usually sit up and take notice.

If the reason you are short on cash and need a loan is because you are a poor manager who is in denial about your failing business, it will be obvious to the banker. Bankers are objective. They are not going to throw good money after bad. However, if you have a healthy business and you want to finance a new piece of equipment that will enhance your revenue earning capacity then your request will seem reasonable. Perhaps you need a line-of-credit to shore up your cash flow during less productive seasons, and you plan to pay back the line during productive seasons. These are the kind of stories that make good business sense to a banker.

To back up your story, you will need a Balance Sheet and Profit & Loss Statement that reflects the history of your business activity. Included should be an analysis of your business trends using some key business ratios. If the numbers look good, then go for the loan. Remember though, you can’t rely on the banker to recognize all the positive aspects of your business, therefore, you should provide a narrative of how your business works and why the requested funds for the business will help you make more money.


About the Author
John W. Day, MBA is the author of two courses in accounting basics for non-accountants. Visit his website at http://www.reallifeaccounting.com to download for FREE his 3 e-books pertaining to small business accounting and his monthly newsletter on accounting issues. Ask John questions directly on his Accounting for Non-Accountants blog.


Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions
by George A. Parker


The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging existing venture capital. They have discovered ways to use this flexible financing as a tool to build enterprise value between equity rounds and to leapfrog less sophisticated competitors.

Venture leases and loans are usually asset-based, financing arrangements. These financings are available to qualified pre-profit, early-stage companies funded by venture capital investors. Start-ups need equipment and working capital to help them execute their business plans and to reach profitability. Venture lenders and lessors provide financing to these firms to help them acquire computers, lab and test equipment, production equipment, phone systems and other needed business equipment. These specialty financing firms may also provide financing for working capital in the form of accounts receivable and/or inventory loans. Start-ups that qualify usually have promising business prospects, well-defined business plans and have raised more than $ 5 million in venture capital from reputable venture capitalists.

How are these savvy entrepreneurs using venture leases and loans to boost shareholder value and to gain an edge on the competition? Here are some of the ways:

1. To stretch equity capital and to increase shareholder value between equity rounds. By using venture leases and loans, entrepreneurs can forestall going out for more equity while they continue to build and increase the value of their companies.

2.Use of loans and leases instead of internal cash helps to stem negative cash flow. Most start-ups are faced with negative cash flow until revenues build sufficiently to cover costs. Using limited internal cash for equipment purchases, to invest in inventory or for accounts receivable is not wise, if there are better options.

3.To protect working capital. Purchases of intermediate-term assets with internal cash will remove those funds from working capital. Use of venture leases and loans helps to keep the pressure off of working capital as the cost of these assets gets spread over an extended period.

4.To supplement other capital sources. Venture leases and loans supplement equity capital, mortgage financing and other financing available to start-ups.

5.To liberate cash from equipment, accounts receivable and inventory already financed internally. By doing a sale-leaseback, the start-up can liberate cash from equipment already owned. Likewise, the start-up can finance inventory and accounts receivable that have been funded internally by using a venture loan.

6.To bridge-finance equity transactions. Occasionally, start-ups are able to obtain short-term loans to bridge upcoming equity transactions. These loans are usually well secured by all-asset liens against these companies and are generally available for short time frames. Most venture lenders who provide this type of financing require equity kickers in the form of warrants to purchase stock in the start-ups or stock issued directly to them by the start-ups.

7.To hedge against rapidly depreciating equipment. Venture leases can be structured as fair-market-value leases. These leases usually allow the lessees to renew the leases at fair-market-value renewal rates, to purchase the equipment at fair-market-value purchase prices, or to return the equipment to the lessors at the end of the leases. The return option allows the start-ups to conveniently dispose of obsolete or unneeded equipment.

8.To replace venture capital. Start-ups are using loans in the form of subordinate debt as a substitute for additional equity rounds. These loans can be collateralized or unsecured and can be used for many of the same purposes as equity funding - to continue product development, to add key personnel, to expand marketing and to support sales efforts. Venture lenders generally charge a premium rate for these loans and require sizeable equity kickers in the form of warrants or ownership shares in the start-ups. These loans are generally cheaper than equity financing and may amortize faster.

9.To spread equipment cost over the productive life of the equipment. By being able to spread the cost of the equipment over an extended period, start-ups can get productivity out of these assets while they pay. Paying for the assets out of internal cash has just the opposite effect.

10.To quickly build out infrastructure to allow all employees to be more productive sooner. Venture leasing and lending allow start-ups to add computers, phone systems, networking equipment, software and other business essentials quickly. Employees can be more productive sooner and benchmarks can be reached faster.

Using venture leases and loans is a smart choice for savvy entrepreneurs. It allows them to build substantial equity value with minimal dilution. These arrangements usually do not require board representation or loss of management control. Start-ups are able to add needed equipment and finance working capital with lots of flexibility. Additionally, these forms of financing are significantly cheaper than the likely alternative, more venture capital financing. Savvy entrepreneurs have discovered these advantages and are using them to put their firms ahead of the pack.


About the Author
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. ("LTI"). Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in equipment financing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com






The truth behind your FINANCES! by Jay Ball


Between 15 - 20% of people in our country own there own businesses. This statistic is on the rise thanks to the incredible invention of the Internet. The staggering truth is that of these only 5% are genuinely financially free! You may well see lots of expensive cars driving on our roads and big houses inhabited by the seemingly wealthy, but these houses and cars are not yet paid for.

Never in our history has it been so easy to lend money. Banks and building societies are falling over backwards to lend us money. You can sign your life away to a 50-year mortgage these days if you choose! Banks and building societies are offering 125% mortgages to first time buyers and business is looking outwardly great.

The credit card companies also love today's economy. You can borrow enough money on a credit card nowadays to buy a brand-new car! The loan companies are also cashing in on ignorant and naive individuals and this really concerns me. The advertisement marketplace is going wild on media adverts for consolidation loans. You know the type? "We will help you to consolidate all of your existing loans into one affordable monthly payment" They call this type of loan a HOME OWNERS loan. Yes you can consolidate all of your existing debts into one affordable monthly loan, but what do you call affordable? People are consolidating their present debts into one huge debt and loaning the money to repay this new debt. To actually repay this debt in full will take these people years. What's more they've secured this loan on their one and only ASSET - their HOME!

These unfortunate people aren't thinking about the future and their long-term future plans, they're thinking about the immediate and present situation. In the meantime what happens when the interest rates begin to rise? The interest rates on a consolidation loan will take years to pay off and whilst you owe money to your lender you're not secure at all because your consolidation loan is secured on your home.

What does this mean?

If you cannot pay your loan the Loan Company will TAKE YOUR HOME as payment!

The reason it is so easy to lend money at present is because the interest rates are so low. At the time of writing this web page our present government has set the base rate of lending so low that people are dangerously getting themselves into debt through their own ignorance towards the economy. What is really happening will become all too apparent in the next few years when the tide turns and the interest rates begins to rise sharply. If you're not financially free or in control of your assets when the tide turns you will lose everything. History always repeats itself and sooner or later a recession will hit the world trading markets and all of those people who borrowed huge amounts of money to buy their big house and their BMW or Mercedes will be in big financial trouble.

Wait, it gets worse!

SHOCK - HORROR! Once the tide turns the interest rates will saw and if you're not secure your financial world will come crashing down. The mistake that people have made is to foolishly believe that their loan rates will remain the same, they won't. Let me explain in simple terms to you my theory by giving to you a simple example:

If you have a current 'interest only' mortgage of say £100k and the interest rate applied is £5% your monthly payment will increase with the interest rate. What happens if the interest rate climbs to 10%? Your mortgage could double. In 1989 the interest rate sawed to 15%. If this happens (and it could) your present mortgage payments could treble! How will you survive financially?

Your mortgage payments could increase by 300% inside 12 months and any other loans you may have will also require payment. If your wage doesn't allow sufficient funds to meet these demands than you will lose everything slowly and painfully. When the interest rates do begin to rise (and they will) the debt consolidation companies will cash in on you. Before you know it you could owe money for the rest of your life and if you can't pay what you owe than your lender will take your car your home and the clothes off your back to meet their demands.

SO WHAT'S THE ANSWER? My advice to you is to pay off your existing debts as quickly as possible. If you are driving around in a car that is financed by a finance company pay this loan off as quickly as possible. Contact the finance company and ask them for a final settlement figure. This way you'll know exactly how much debt you're in. If you can afford to settle your finance early than take advantage of this and settle immediately. This way you'll own your car outright, you'll have paid less in interest and you'll have some equity if you need it. If you can't afford to settle the finance at the present than check what interest rate you are currently paying and search around on the Internet or in the high street for a lower rate of interest. Whatever you do, don't delay in taking control of your finances today.

Another mistake people make is to fall into the trap of 'false economy'. They begin with the right intentions by searching for a lower rate of interest for their mortgage. What this means is that their monthly payments become lower. The mistake they make is to think they've got more money in their pocket. In affect this is a false economy. Instead of settling for more money in your pocket and still enduring a 10 year (or whatever) term loan ,why not use this extra money to increase payment on the capital of your loan?

This simple technique is called 'Mortgage Acceleration' The Banks and Building Societies know all about Mortgage Acceleration they just don't mention it because it loses them lots of money in interest payments!

If you increase the capital payments of your mortgage every month you're paying off the entire loan quicker. If you can shave 2 years off your loan you've not only shortened your mortgage by 2 years you'll have saved yourself a packet in interest charges. A 25-year £50k mortgage repaid 16 years early could save you over £60k in interest! (dependant on the interest rate) Ask your Bank or Building Society about 'Mortgage Acceleration' and see the look of loss on their face!

Don't settle for a lower rate of interest and extend your loan payments thinking that you're saving money, you're not. You are only extending your debt! You need to pay off this loan as quickly as possible whilst the interest rates are low. The longer you take to pay off your mortgage the more interest rate the Bank or Building Society will take from you. Whilst the interest rate is currently around 5% accelerate payment NOW and save even more money! Take advantage of the fact that if the interest rates are currently low than the amount of interest that you pay on top of your loan will be also low. If you can afford to increase payment whilst the rates of interest are low than I urge you take advantage of this immediately. If there is any way that you can accelerate your loan and pay it off early than I would strongly advise you to begin your financial organisation here and organise this today. A simple increase of £50 per month in mortgage payments will save you money in interest payments in the long run. Your first step to taking control of your financial world is to pay off all of your existing debts as quickly as possible. When you have no debts, you'll be financially free and you'll feel as if a huge weight has been lifted from your shoulders.

POSITIVE PLAN OF ACTION:

Contact the bank or building society that you have your mortgage with. Ask for a final settlement figure on your mortgage and also enquire into the current interest rate that you are paying. Chances are that if you've not checked the interest rate you are currently paying in the past 12 months than you could save yourself money immediately by choosing a better deal. There are currently plenty of lenders all willing to offer you competitive deals on your mortgage and I would advise you to check them all out before you commit yourself to one. A simple saving of 1% in interest can save you pounds every month. With this saving in interest payments, use this extra money to increase your capital payments. If you only manage to shave a year off the length of your mortgage it will be one less year that you are in debt and one year sooner to becoming financially independent.

Talking of your mortgage, if you currently have an Endowment policy running alongside your mortgage than investigate this policy thoroughly. Most endowment policies are useless in today's interest market. What this means is that when your mortgage term ends there may be insufficient funds in your endowment policy to pay off what you owe to the lender. If this is true than your lender will be knocking on your door for this short fall. If you can't afford to pay than you could lose your home after 25 years or more of payments! Recently I read that some Endowment policies were running a short fall of up to £13000! If this happens to you you'll owe your lender £13k plus interest!

The smartest mortgage you can take is a straight 'repayment' mortgage. As well as paying the interest back to your lender you are also paying the capital off from the offset, therefore reducing the total amount you owe quicker. My advice is to accelerate your mortgage and pay it off as quickly as possible before the interest rates sky rocket and your payment doubles or even trebles. When the tide turns (and it will) you'll be smiling in the content that you own your home and you own your car and nothing can take these away from you.


These ideas have been taken from Jay Ball's brilliant '10 simple seeds to success' 334 page paperback book, 12- hour CD course, and 334-page e-book.


About the Author
Jay Ball is a recognised Success Mentor in the UK. His visions and inspirations have helped many accomplish amazing results. Jay Ball is the author of '10 simple seeds to success' and 'Believe & Achieve' Check out his website and download over 8 hours of FREE self-development seminars! www.successacademy.co.uk