Use Emotional Intelligence to Get Out of Debt

We all know what Intelligence Quotient (IQ) is, but have you been hearing the buzz lately about Emotional Quotient (EQ)? Well, if you haven't, then I'll start with a basic definition from Psychology Today:

What Is Emotional Intelligence?

Emotional intelligence is the ability to identify and manage your own emotions and the emotions of others. It is generally said to include 3 skills:
  1. Emotional awareness, including the ability to identify your own emotions and those of others;
  2. The ability to harness emotions and apply them to tasks like thinking and problems solving;
  3. The ability to manage emotions, including the ability to regulate your own emotions, and the ability to cheer up or calm down another person
In achieving financial freedom from debt, we can apply the same skills in sustaining our long term goals, or even short cutting the time and effort involved by finding the best possible solution for our particular concerns.
So, what does getting a hold of our emotions have to do with getting out of debt? Great Question and one that I looked at from a money making standpoint. In a recent article by Inc. magazine entitled, 12 Habits That Set Ultra Successful People Apart. The highlight of this article was a discussion on how the ultra successful people use EQ to get stuff done and you can too.
Here are some key tools to help you get out of debt:
  • Keep your composer by monitoring your emotions and what it feels like to have this much debt that you cannot manage. Remember that no matter what, this too shall pass. Focus on the outcome rather than the present mess, to carry you through.
  • Get informed and be knowledgeable. When you are constantly working on yourself to increase your own self awareness about how you earn, manage, and grow financially because you're passionate about it, then, you're ready to get out of debt completely. Gather all the information you need to make a well-informed decision for yourself.
  • Take your time and be deliberate in your decisions. Impulsiveness may have gotten you into financial trouble, but financial freedom from debt requires you to slow down and logically think through the problem.
  • Get a small victory under your belt quickly. Whether it is to contact your professionals for consultations, like your CPA or accountant, if you need tax advice; or a bankruptcy lawyer to consult about bankruptcy options to get out of debt.
  • Be Fearless and Graceful. Fear is imagination run wild. Fear is also what keeps many in the position of indecision and never make a move. Grab fear by the horns and be graceful, which is to be both strong and gentle at the same time.
  • Be gentle and kind on yourself first, for getting into debt and be strong enough to face fear, head on and get out of debt by the cheaper, better and faster way, for you.
I believe that money is a matter of the heart. I believe that the way out of debt is through our emotions. I believe that anyone can move out from a mountain of debt quickly when they unite their head and their heart together, as a team. It's a simple shift from guilt and shame, to freedom and joy.

Accounting Outsourcing Services For Small Businesses

Accounting is part and parcel of all the activities related to running a business. It is an important yardstick by which you can measure if your business has performed well. Small business accounting, in particular, is very important, because it gives small business owners an idea of where they stand, what costs need to be controlled, having an eye of day to day expenses etc. In essence, proper accounting helps a small business owner to manage and record his finances in a better way. If you are still wondering as to how and why accounting is important for your business, read below:

Good source for external financing

If you are a small business owner and want to expand your business, you would obviously approach banks and other financial institutions for loans. Proper accounting practices help you a great deal here. If you have managed and recorded your accounts properly, it gives credibility to your business and fetches you quicker loans. In the absence of proper accounting procedures, your reputation is at stake.

Tax savings

If you have strictly followed all the small business accounting procedures, it becomes easy for you at the time of tax payments. You can prepare your tax returns and file them easily because you can easily calculate your income, expenses and other investments from your books of accounts. If you have not maintained proper accounting procedures and not recorded your day-day expenses correctly, it could result in incorrect tax payments and unnecessary confusions for you.

Tracking growth

If you want to know how far you have come from where you started off, maintaining proper accounts is the only guiding factor for you. When you trace your income and expenses over a particular period, you will know whether your business is running at a profit or loss. Therefore preparing the final accounts properly will help you to decide whether it is really worth continuing your business or not.

Time savings

If you don't have the time or the expertise to do small business accounting, try outsourcing the operations to an outsourcing agency that specializes in this field. This agency has the resources, expertise, experience and technology to manage your accounts in a timely manner, thereby giving you immense relief. When meticulous accounting is done by these professional agencies, you will be able to run your business properly, pay taxes on time and overall have a healthy control on your business.

Reasons That Make Invoice Factoring a Better Financing Option

Preparation is a key aspect of every successful venture. Agreeing to it, as the businesses bloom from a bud to a beautiful flower, they often face the need of extra funding for various purposes. There are a plenty of reasons like expansion, marketing purposes, meeting payroll or other miscellaneous expenses, however, all these requirements instigate the need of extra funds for which opt for various financial services.

There is a range of options available for companies to source extra funds from outside, some of which are conventional while others are contemporary. In the recent times, the concept of invoice factoring has gained immense attention because of its wide array of benefits that surely makes it the most lucrative option. Following here are certain reasons that surely indicates that invoice factoring is the most beneficial form of external business financing.

Rapid Liquidity

Very similar to debt trading, which mainly occurs while dealing with finance companies, banks and investors, invoice factoring generates immediate cash for businesses seeking an alternative to the traditional bank lending. Availability of required capital is immediate in comparison to application of credit to banks for small business loans, which assures coverage of the expenses such as payroll, equipment, rent and utilities.

Competitive Rates

By trading the invoices to the factoring company, the entrepreneurs get the opportunity to sustain their short-term business financial obligations. Alike traditional commercial bank financing, the rate terms of invoice factoring differs depending on which specifications of the chosen company.

Personalized Search Help

With the invoice factoring industry, there are both consultants and companies that offer the bidding forums and services related to private search on basis of specific business requirements. With a number of factors to choose from, companies looking for the most lucrative deal for invoice factoring might find the need of brief researching, which in general, is quite daunting for the small business owners. However, with the help of a B2B broker or a good consultant, the companies can surely cut the chase.

Operational Maintenance during the Phase of Billing Cycle Drought

This particularly relates to management of accounts during the delay of a billing cycle. The process of invoice factoring provides cash for expenditure, which might otherwise compel the owner to opt for a sale of the business or its temporary or permanent closure. Serving as a secondary supply of commercial financing, factoring helps struggling companies to stay afloat in times of poor performance or late payments by creditors or other payers.

Balance Sheet Stability

Factoring does not typically show up on balance sheet of the company as debt. The accounts receivable factoring is a workable option for ensuring that the balance sheet remains on target. The concept of cash flow is a complex mechanism to make sure that the business is capable of resolving the accounting expenditure in a standard fashion.

It is true that each option comes with certain inconsistencies and generally, nothing is perfect. However, for companies with the urge to source business funds from outside and considering the various options like Small Business Loans, financial institutions and many more, this method lets them get funds with ease and augment their business like never before.

Four Tips to Visit Car Dealers Like a Pro

Shopping for a new car does not have to become and overwhelming experience. Use the four tips to get the most out of your experience.

1. Know what you are looking for.

Start by asking yourself why you are buying a car. This may seem like a no brainier, but truly think about what you use your vehicle for currently, and what you may use it for in the future. Do you travel long distances frequently? Do you plan on starting your own business in the near future? Do you plan on starting a family? Doing more outdoor activities? By considering what you will be using your automobile for in the next couple years, you can make a selection that includes features best suited to fit your lifestyle. It's important to avoid buying a vehicle solely because you like the style if it does not also meet your current or future needs.

2. Do your research.

Once you have decided which car you like, read reviews and do some research on the value. It is important that you know what you should pay for the vehicle you are looking at. What does a good price look like for both the new and used model? Most importantly, what is the average price other buyers have paid for the same vehicle? This will allow you to spot a good deal when you see it and avoid being overcharged when visiting car dealers.

3. Contact your local car dealers before you visit.

Check out your local dealerships' website, or call them to find out what their inventory contains. Narrow your list of dealers to visit to those that carry the model you are looking for. Then, find out which car dealers have the best price on the automobile you want. You can ask over the phone, or send an email asking what their best price is. Let them know you are intent on buying and that you are doing some comparison-shopping between dealerships. They all want your business, so by making them compete you can potentially lower the price. Also, find out if they are running any specials, and read the customer reviews of the dealership.

4. Know how to get the best deal.

There is always room to negotiate on the price of the car, the interest rate, and on the monthly payments. Make sure that you know your credit score before you buy, that way the car dealers cannot tell you that your credit score does not qualify you for a lower rate. You can also consider getting financed by a bank or another lender, rather than taking the in-house financing from the dealership. Find out if you can get pre-approved for an auto loan from an outside lender, and what the interest rate would be. That way, if a dealer offers an interest rate of say, 7%, but the bank offers 5%, you could save thousands over time by going with your outside financing. You can also use this as a tool to drive down interest rate before accepting the in-house financing.

Don't Run Out of Cash: Why More Businesses Are Opting for AR Financing

In the recent years, account receivable (AR) loans/financing have gained immense popularity. A fast way of arranging money for operational purposes or expanding businesses, several firms are turning towards AR financing. This method provides fast cash while also ensuring that a business's financial profile appears in a good light. The benefits of account receivable financing options don't end here, read the below points to know how AR loans can save a business from witnessing a doom's day scenario of running out of cash!

1. Quick financial help: The principal benefit of AR financing is that it offers an organization the opportunity of procuring monetary aid from a commercial finance company in order to immediately meet the pending production or operational expenses. Unlike loans that are rendered by banks, AR loans do not require months to be sanctioned and the proprietor can get working capital against his credit sales.

2. It is a credible way of expanding your firm: Unlike short term internet loans that give a small loan and take repayment on a daily basis, AR financing is a traditional form of financing that truly grows with your business and has proven itself as a credible form of support for large and small businesses. As you pay your bills and payments on time with the extra cash flow the AR financing provides, your credit rating in the market improves, instilling trust in your stakeholders. With a remarkable record in the market, you can expect your clientele list to increase soon.

3. The sole proprietor remains with you: If you are taking aid of venture capital, you might be relinquishing your equity, which is certainly not the case with obtaining account receivable financing. Neither you share the decision making power nor your venture. You still remain the primary decision maker. Funding through venture capital mean surrendering your claim to a certain percentage and losing control over your business's operations.

4. It lets you focus on the bigger picture: With sufficient money being available at your disposable to meet all immediate expenses, you can thoroughly focus on your future plans of either extending your product line or capturing new locations. You can work with complete peace of mind, concentrating entirely on the performance and productivity of your venture instead of worrying about financial issues.

AR financing option can be explored by businesses of all levels; whether you are mid-size company or a well-established name in the market, you just have to locate an experienced commercial lender or factoring company that has been well established and can provide your business the flexibility it needs. The details of your AR financing can be all worked out once you have found the right company.

Accounts receivable financing is one form of business loan for securing fast working capital. This pro-business loan uses your company's accounts receivable as collateral. By selling outstanding invoices at a discount factoring company or AR financing company will be able to provide your business with immediate cash flow.

How to Finance a Small Business With Ease

Thinking of financing your small business? Need tips? Why not read this article and avail yourself to some basic guidelines & principles that will help you carry out the complete with ease!

Believe it or not, financing is one of the most intimidating and challenging tasks to carry out when it comes to escalating your business!

Whenever you start a new business, it is important that you put together a few strategies that can help you secure the financial assistance, which plays a great part when it comes to running your business successfully. Once you find the right lender or investor to help you get your funds approved, you must identify your business needs and find the right solutions in order to take your business to the next phase.

A few steps that need to be done when it comes to financing your start-up business.

Step #1: Personal Savings

Personal savings play a great part when it comes to starting a new business. It is important that you put in your personal contribution first and then move on to the next big step, i.e. 'taking loan from a bank' or 'lending money from lenders or investors'. If in case you're not willing to put in your own money first because of your financial condition or whatever the reason is, you must take advice from your family members, friends or office colleagues in order to find an ideal finance solution to deal with all your needs.

Step #2: Identify all your needs

If you're about to finance your start-up company, the first thing you must do is identify all your essential needs and make the necessary strategies to fulfill all those requirements. Also, you must think about sustaining your business in terms of both supplies and equipment.

Step #3: Explore your options

When it comes to finding a right source for borrowing money, there are plenty of options to choose from which include commercial banks, credit unions, commercial finance companies, and more. Also, you can approach different business capital firms or make partnerships in order to finance your business effectively. No matter what choice you make, it is important that you learn as much as you can about the basic steps that are involved in the process of taking loan from a government /private firm or a person.

Step #4: Create a business plan and then execute it meticulously

Once you've carried out all the above written steps, then comes the turn to create an effective business plan. This includes understanding your intentions on how to finance your business, how to expand it, determine what exactly you want to achieve through your trade, how to meet the specific goals, determine the financial objectives, and much more.

Steps To A Wealthy Mindset

1. Redefine What Wealth Means for You.

Being "rich" simply is a term for many people. Technically, wealth or being wealthy is defined as having an abundance of resources or possessions. The high life does not equal wealth. Having a gigantic mortgage for a beautiful home or a huge car payment does not equal wealth.

Are status symbols your end goal? Does wealth for you mean that ability not to worry about bills or how much is left in your checking account at the end of the month? Does it mean providing comfortably for your family or being free from financial worry?

Does it mean the ability to afford luxury designer goods or getting a membership to the local country club? Being rich or being wealthy can also mean you enjoy a comfortable retirement. Maybe to you wealth means something totally different.

Your definition of wealth goes a long way towards setting your goals.

2. Learn To Hold Off Gratification

In today's culture everyone expects instant gratification, we all wants things NOW NOW NOW.

However, a wealthy person knows how to delay gratification and sacrifice the now for later. This often comes with a positive attitude towards work and wealth, such as: "If I invest now, I will make 30% more later."

The wealthy do not only think of now, they plan for the future. Long-term thinking over short-term. The present is merely an opportunity.

Change your mentality about spending. Do you really have to have that (place object here) now? The truly rich hold off gratification, knowing that what is trendy, popular or a must have today may not last until tomorrow.

3. Learn the difference between having a high income and being truly wealthy.

High incomes do not necessarily mean that you are rich, especially if this income comes from only one source.

The myth persists that you can only be truly wealthy if you come into family money or are born into a home of silver spoons, silk sheets and antique furniture. Continue to believe in this myth, and you still have the mindset of the broke.

Most people also believe that a high income job is the end-all of their problems and work their butts off to get to a position that pays in five or six digits but end up baffled at how little they have by the time retirement rolls around.

For example, the average high level manager earns $200,000 a year, with benefits but stands to lose that income in the event of layoffs or illness.

Although his income earning potential is high, it only comes from one source.

Contrast that with a middle level manager earning $50,000 a year. This middle manager, however, rents out properties in the city for another $500,000 and reaps dividends from stocks and bonds for another $100,000 a year. In the event of illness, death or mass layoffs, half of his earning potential is still secure.

The source of the latter's income is also easily passed on to future generations, securing wealth for the middle level manager's family.

4. If you're starting a business know when to hold off, reassess and quit.

Investors will say no to your idea, but not all of them.

Those with a poor mindset go to the bank for a loan, get rejected and never think about their idea or opportunity again. The wealthy mindset goes to the bank for a loan, gets rejected, redrafts the proposal and returns to get the approval.

The poor mindset goes into business not knowing the risks of the deal and is baffled when the fallout occurs. The wealthy mindset goes into a deal, knows the risk and gets out if things are going bad.

Always follow your gut and do your research. Know when to back off from risky or unethical deals will not only take your money but have effects of your freedom.

5. Use Your Subconscious to Manifest Your Financial Destiny

The wealthy know that before you can be physically wealthy, your mind must be thinking wealthy too.

Create dream posters by cutting out pictures of your dream status or quotes that inspire you.

Never underestimate the power of your will and mind.

Wealthy people never say they cannot do it, they think of ways so that they can. Instead of thinking "I can't afford that", think to yourself "HOW can I afford that?"

Write down 10 things you want when you're wealthy every morning right after you wake up. The key part is to write them in the present tense, "I have... ".

The act of physically writing this list and seeing your dreams in black and white will engrave your desires into your subconscious and motivate you to take action towards them every day.

The truly wealthy consider their mind as the foremost asset. They also tend to invest in their mind, especially when it comes to education. Visualize yourself to be the millionaire, entrepreneur and successful person you want to be.

Some Basic Tips For Choosing a Bank

The bank you choose to hold your money involves some exploration and consideration. Research various institutions to find the best one that fits your account and lifestyle needs. Safety and reputation are two important factors to consider when you make this decision.

Determine Your Financial Needs

Your financial needs are an important factor in the search for a bank. Opening checking and savings accounts is a common practice for many consumers. Some people prefer to bundle all their financial activities with one institution and if you also have loans such as a mortgage, car loan, home equity line of credit, and person loan, you might prefer to open checking and savings accounts within the same business.


The credentials and reputation of the institution should also factor into the decision. Larger banks are generally a reliable choice due to FDIC deposit insurance. Check with the Federal Deposit Insurance Corporation to find out if a business is insured under this coverage.

Think about Physical Convenience

Physical convenience can be a key consideration in this decision. You might opt for a location that's convenient from your place or work or your residence. Consider extended hours offered by some institutions if you work alternative shifts and you cannot visit during regular business hours. Online services can help with many types of transactions, offering services such as bill payment, automated deposits, and access to balance information. Find out about the location of ATMs you can use for no or low fee transactions. Some banks are national companies, providing customers with access to service and accounts from virtually anywhere in the country. Other businesses are local, providing no ability to travel and visit brick-and-mortar branches.

Explore Fees and Service

Every bank has a unique structure for fees and services. You will need to contact any institution you consider to find out these important details. Ask about account fees, minimum balances, ATM fees, overdraft protection, and overdraft fees. Find out how the they handle international travel to see if you will be able to get assistance with foreign currencies. Some businesses offer more services than others, some involving additional fees and some not.

Consider Personalized Service

Choosing a national company can afford you many conveniences. However, it's important to realize that you may sacrifice some personalized service with this decision. A variety of services from a national business may be fine for many consumers. If you prefer a more personalized touch with a hometown brick-and-mortar branch, you may be happier with a local entity. Anyone with a busy lifestyle and a variety of financial activities such as IRAs, loans, credit cards, and online bill payments may be better suited to a large, national company. People with simpler lifestyles might opt for a local business instead.

Questions to Ask Yourself Before Trying Any Network Marketing Venture

Whether you are looking for an income in this difficult economic environment, or you are ready to move on to bigger and better things, or even if you are just waiting to find a good enough reason to leave your current job, the decision to actually leave, and to take that next step of starting your own business, is really quite difficult.

You must ask yourself some questions before you really do finally decide to make the change from a business worker to a business person.

Q#1-The biggest obstacles new companies must overcome are finances, product, and price. How will you overcome them?

Make sure you have enough money to see you through your first year. Either through your own personal money, business and personal loans from banks and other such lending institutions, and personal loans from friends and family are surely the most commons ways to get money. Of course, you can always play the more desperate route, that of selling things that you own.

Find out through research, marketing, and networking what people want and need. What they are willing to spend money for.

Some suggest to price your item well below the average, some right in the middle of the average price, and some even suggest that you price it above average. All three methods have worked for all sorts of different products and services. People are willing to pay slightly higher prices for better quality, so don't be afraid to increase prices as needed, or to start with a higher price tag to reflect the higher quality level.

Q#2-How dedicated are you to the success of your new business venture?

Some people claim to have stopped at nothing to get their business off the ground. However, that is rather unlikely if you stop to think about it. Everyone draws a line somewhere, and that line is often touted when you are trying to make a few extra dollars for yourself. Dedication is great. It is the heart of your commitment level. Self-discipline and due diligence also play pivotal roles. Evaluate where you stand before you take the first step.

Q#3-Do you have the right qualifications, and can you acquire those you don't have?

Customer service, cold- and warm-calling, leadership experience. They're all vitally important to struggling new businesses. Yet, they are also very possible to learn. It helps having experience in these fields, but it also helps to be trained to further enhance your personal capabilities.

Q#4-Look to the future. At what point in the future would you start receiving a steady stream of income?

Most businesses, no matter how successful, take a while to reach that success plateau. A minimum of nine months, up to a year or more, is quite normal for any new business just to break even. Can you afford to not have very much income right up front? How long would you have to wait until you don't have to worry about your finances any more?

Q#5-How will you market yourself and your new business?

Not only will you have to market your company's product or service, but your network marketing business will force you to market also the business itself. Especially if you want to make consistent, and often increasing, residual income. Websites, internet presences via social networking sites, and advertisements in the local newspapers are just not enough. To really and truly succeed, you must be able to market yourself, your product or service, and your business opportunity!

Q#6-Why do you want to do it in the first place?

Waiting for the best possible moment or opportunity, or trying to get closer to your children are not the best reasons, nor are they the most motivating ones. (Sure, spending time with your kids is important, but in business, it's not about the children.) However, if you have the appropriate motivation, you certainly have strong enough motivation to get you through your business beginnings., and the highs and lows of it.

Q#7-How will you find and create prospects?

For network marketing businesses to do well, they are required to have numerous leads and prospects at all times. And, this is even more important when your business is brand new! There are so many options available to find and acquire these prospects. Use whichever is most favourable for your product or service.

Both you and your family and friends must know, and understand, that your business must be taken seriously, especially at the beginning, for it to really blossom to its fullest capacity. Everyone must be willing to give you the time that you need to get your business into a profit-generating mode.

2 Methods of AR Financing: Advantages for Small-Scale Firms

Many of the small-scale firms need financing through a reliable source as many of them do not have angel or equity investors as a feasible option or cannot successfully attain a bank loan. However, due to the need of additional working capital in order to meet their daily operational expenses easily, they can explore the option of procuring an account receivable (AR) finance program for help.

Provided by commercial finance institutions, AR financing is an effective alternative to bank financing. Some banks do have an option of providing AR loans to small sized firms, but they have very strict qualifying requirements that often hamper getting the funds your company needs (and quickly).

The owners of small-scale businesses can take AR financing through two methods that have been explained in detail to help you decide how to proceed.
  • Pledging Accounts Receivable
This method involves using your sales invoices to your customers as a collateral to get a fast funding for your business. It involves assigning over your account receivables to the lender company, while your company is still responsible for collecting money from your debtors and handing it over to the financing company. The lender will take into consideration the aging period of your company's account receivables and depending on it, they would scan all your bill receivables and then create an advance table based on the eligible invoices/bills. Invoices that you have failed to collect even after the deadline will not be considered as this can increase the possibilities of non-payment of the AR loan. On the basis of the total amount of invoices, the lender would sanction your loan amount which can usually be drawn against any time during the month.
  • Factoring Accounts Receivable
The second method of AR financing involves selling off your account receivables/invoices to the lender instead of offering them as a security against an AR loan. The advantage of this method lies in the fact that the lender or the factoring company would be responsible in many cases for recovering the amount from the debtors and handling customers that default. In the initial phase, the firm who has given you the loan will provide 70 to 80 percent of the account receivable amount to your business in advance whereas the remaining balance due on the invoices would be paid only after all your ARs have been received in full payment. You might have to pay a little more than the bank, but the qualification requirements are much less and the advances are much easier to get.

An AR financing option can be explored by businesses of all levels; whether you are mid-size company or a well-established name in the market, you just have to locate an experienced commercial lender or factoring company that has been well established and can provide your business the flexibility it needs. The details of your AR financing can be all worked out once you have found the right company.

Loans for Life - A Guide to Common Types of Loans

Before taking any action that involves the loaning of funds, you need understand the level of responsibility that comes with paying them back. If you're considering taking out a loan for college, to buy a car or home, or to start a business, read this article first. This guide reviews the pros and cons of common types of loans and can help you make your decision.

Car Loans

The first thing to consider is the source of your funds. Most car dealers offer on-site financing through a lender at signing, or you can borrow money from a bank or credit union. No matter where you borrow from, pay attention to how long you'll be paying and the interest rate. You should also inquire about different options and possible rebates. Research and compare several different financing options, and request quotes from a minimum of three lenders. Some financing options allow zero percent financing, but no-interest agreements come with hefty monthly payment and can be too expensive for many people. Low monthly payments typically indicate a high interest rate and will cost you more in the long run. Finally, you're going to want to size up your down payment as much as possible. The more cash you're able to put down on your vehicle, the better. Making a large down payment keeps you from becoming upside down, or going "underwater", on your loan.

Student Loans

Before even applying, you need to review your eligibility. Your eligibility refers to your ability to meet the minimum requirements for qualification. For the credit portion, most students need a cosigner, usually a parent. Now, consider who will be responsible for paying funds back. Unless you default, you or your parents will have this responsibility. Next, think about interest rates. Repayment terms are terms outlining your payment plan, and should be carefully reviewed and understood. Most lenders require a promissory note, which is a contract promising that you will repay all of the borrowed funds. Finally, be aware of loan limits that define your boundaries and restrict the amount of money you are eligible to receive under a single program.

Small Business Loans

Another common reason for borrowing is to start a small business. The first thing to think about is the state of your credit. Look up your FICO score, and if it's unsatisfactory take time to build better credit for attempting to borrow. It's even helpful to offer your own credit score for review. Prove to lenders that you have the discipline to repay them. You also need a solid business plan and a strategic marketing plan by giving the lender a clear picture of your prospective business. If you've never made a business plan, there are online tools available that can help. In addition to a profile of your business, give potential lenders a profile of yourself in the form of a strong personal resume. Sell your business, but also sell yourself as an owner. Finally, before attempting a loan, make sure all personal and professional financial statements are accounted for and available.

Borrowing money for any venture is a serious decision. Do not borrow funds unless you are financially stable enough to repay them, and review all financing options before jumping into a lending agreement. Good luck with all your financial endeavors!

The Fast and Essential Tips For Choosing Small Business Startup Loan

If you wish to start your small business and if you find it difficult to run it due to lack of money it is advisable that you should take the initiative to secure a small business startup loan as quickly as possible. This article will highlight on a few things that you should consider in order to get this kind of fund in the best possible way.

The first step that you should follow is to assess your credit score in the best possible way. In this matter also, it is advisable that you should seek the help of an expert professional without any kind of hesitation. It is often seen that those who have acquired poor credit record take the help of expert professionals in order to handle this kind of problem.

Once you seek help of this type of professional to evaluate this kind of scenario, your next step is to talk to your friends as well as your family members. However, there are several people who do not wish to take any kind of monetary assistance from their friends or from their family members. It is vital to remember that you can always seek the help of your friends or your family members and that they too may feel happy to help you during your crisis.

Your next step is that you should try to acquire some sort of credit such as credit card or even telephone bill on behalf of your own business. It is vital that you should also pay these bills within the scheduled period of time. If you do so, there is possibility that you will earn the reputation of an honest businessman who runs his business effectively and who also pays his bill at the right time. If you wish to avail this type of fund, it is advisable that you should send a report of the details of your transactions to credit reporting bureaus.

In order to get this type of fund, it is vital that you should fix up your personal credit as quickly as possible. It is vital that you should improve this type of record as quickly as possible. If you have poor credit record there is possibility that your loan application will be rejected by a bank or other conventional financial institution. It is advisable that you should always take the initiative to improve it before you approach a bank or other traditional financial institution.

If you wish to acquire this type of fund, it is advisable that this type of record will be considered to be a vital thing. There are a few finance companies who consider it seriously before they actually provide small business startup loan. All you have to do is to try to improve it before you actually ask for this type of fund in order to operate your own business. It is vital to remember that you do not have a huge amount of money in order to run it successfully, but it is vital that you should have some amount of money that you can show it to your potential lender and that you should convince him to give it to you as quickly as possible.

How Do You Qualify for a Bridge Loan Quickly?

If you wish to buy a new property and if you do not have the necessary amount of money for down payment till your current house is being sold out, it is advisable that you should try to acquire a bridge loan as quickly as possible. Whether you wish to buy a new house or you want to purchase any other investment property, there is possibility that you should use this type of fund in order to meet your requirement in the best possible way. If you wish to buy a warehouse, and if you want to buy new office, it is advisable that you should make use of it as much as you can. This article will highlight on a few essential steps that you should follow in order to get bridge loan without any kind of difficulty.

Your first step is determining the appropriate amount of money that you may require for covering the time gap between the selling of your existing house and buying of the new house or other kind of property. The exact time period within which you have to pay back this type of fund is determined by the lending organization that you have approached.

The second step that you should follow is to find out a mortgage broker or even a banker who may help you in this matter in the best possible way. It is important that you should try to find a mortgage broker or banker who can provide high quality service and who may also charge a reasonable price rate.

Once you are able to find out one such person, your next step is to evaluate your asset in the best possible way. If you evaluate your asset effectively and if you can produce it as collateral, there is possibility that you may be qualified for this type of fund as quickly as possible. It is vital that you should be able to prove the fact that you have the capability to make payment on a monthly basis. It is offered on the basis of your asset that can be used as collateral and it is also provided on the basis of your ability to repay the bridge loan as well as your monthly expenses.

You should try to decrease your monthly expense as much as you can and you should do so before you actually apply for this type of fund. Before you want to accept this type of fund it is vital that you should try to find out its policies in details.

Once you are determined that you will take it up, the final step that you should follow is to apply for this type of fund successfully. If your existing property is not sold out, it is vital that you should be able to show that you have the competence to pay your mortgage payment in the best possible way.

If you wish to purchase a new house or a new property and if you do not wish to sell your current house, it is advisable that you should get hold of this type of fund without any kind of delay. If you are able to find out valuable property, it is advisable that you should get it in order to buy it as quickly as possible.

Finance Management of Small Business

Managing finances in a business is among the few important things that need to be considered when starting and carrying out a business. It is all about efficiently and effectively utilizing available funds in order to achieve the objectives of the business. Financial management is aimed at planning, observing, organizing and managing the monetary resources of a business.

Small business finance management strategies

Small business finance management is mostly concerned with procurement, allocation and control of financial resources so that a regular and adequate supply of funds is maintained to run a business. Once the funds are in hand, they should be utilized in maximum possible ways at low costs and should be invested intelligently in safe ventures. A few tips that can help you efficiently use your funds while running a small business are:
  • In the initial years of managing a small business, you need to estimate how much money you need for a decent living and pull out that money from your business income. Now invest the remaining money back into your business for its growth.

  • Early wins in the form of high profits may urge you to spend it on leisure holidaying or improve your housing status. You need to be firm and defend yourself against such ideas and wait till your business gets a little more established.

  • The main expense in a business is covering the payroll of your staff. It is advisable not to hire new employees unless you absolutely need them. When things get busy and a lot of work pressure builds up, you may get tempted to hire more people. Try and stretch the existing staff members to their full potential to get through the workload and hire only if necessary.

  • Try and save up money on applying for loans and procuring inventory. Taking up loans from banks is a common practice in the business world, but it carries an extra cost of its own in the form of interest you pay while returning. Reducing this extra cost can help you add up and save more money in the long run. This can be done by dividing the total money you need as loan and borrowing it in parts over a period of time. This reduces the overall amount of interest you pay back to the bank. Borrowing the entire amount at once will result in you paying interest for the money you are not going to use till later time.

  • Keep the money separate for paying the taxes and avoid mixing it with other funds. Paying taxes is of utmost importance and since that money is meant to be given away, it should not be kept or used for other purposes.

  • Bargain the terms of the agreement with the outside contractors and vendors like delivery services, electrician etc., such that you get a grace period in paying your bills. This grace period can be used to manage your funds and prioritize your other bills more efficiently.
Small business finance management can help you cleverly grow a successful business over time.

The Benefits of Spare Time Money

When you're a child, you have a lot of free time on your hands. With that free time, you may have found yourself looking into a variety of endeavors. For some, it's a matter of starting a lemonade stand. That little window of commerce can allow you to taste the first idea of spare time money. You have spare time, you want to sell lemonade, you get paid a little bit to do so. That's something well worth exploring on a lot of levels. But as adults, many don't have the same kind of spare time. With the internet, however, you could transform things, and find yourself pushing several key benefits.

An Easier Path Than Slaving For The Wage

One of the most unique things about the notion of making money in your spare time is simple, it's easy. This can be deceptive, but it's true. The reality of online money making opportunities is easier than ever before. Whether you choose an MLM business, affiliate marketing, PPC options, blogging, writing, or just about anything you can come up with in regards to internet marketing, you can make money. Sometimes these endeavors can cause you to cash in upwards of six figures. Imagine pulling over six figures in your spare time, wouldn't that be grand? It's not an impossible task, and it all starts with your spare time.

Freedom To Spend Time With Family

For those that are looking at spending more time with their loved ones, making money online is the key. Spare time becomes freedom when you are making money instead of worrying about whether or not you can pay the rent. There's a weight lifted, and it's a wonderful thing. It all starts with finding a niche and focusing on building your financial parameters around it. It may seem like an extreme thing at first, but it's not. It can take you no less than around 1 hour a day to start building an opportunity. When that starts to pay off, you will be given more freedom, more spare time, and in the process, more money.

No Huge Investment

There have been millions of failed businesses across the centuries. The problem with starting a business from scratch is that you will have to put up a lot of money to do so. The average small business loan is around $50,000. That's quite a hefty sum that one must pay back, even if the business fails. When you turn the tables, and you look towards making money online, you don't have to worry about that. Instead, you will invest time, and learn the ropes of making moves on the web. Those moves will help you gain focus, and end up paying off dividends, all without having to take out a loan or try to mortgage your house to bank on yourself. It's within that realm that you will see your spare time money grow into a full time income. Not sure how this all works or whether you can make it? Well, start your quest via, and see how just an hour a day could change the future for you.

Planning a Big Investment? Here's Why You Should Trust a Hard Money Lender

So you've found the perfect investment and you're ready to make a purchase. The problem is that you don't have the cash on hand. You could go to a second-rate financier who only wants to earn money off the interest of your loan. But there's a better alternative: hard money lenders. Their collateral-based loaning program and low rates always make them a better option, and here's why.

No Credit Discrimination

Most loan rates are based off the applicant's credit score. That means if you've made a few mistakes or haven't built the proper history, you'll be paying more over time. There's no way to avoid a multi-month or even multi-year loan term with most big investments. Inevitably, you'll be paying interest in some form or another. And that's not to mention all the additional fees that are affixed to the process.

A hard money lender isn't interested in your credit rating. They base their decision off the collateral offered and the project you are trying to fund. If you have a great idea, their team of investors will recognize this potential and seek a way to help you succeed. They aren't concerned with shutting down your ability to borrow, but more with the way in which you plan on successfully investing their funds.

Incredibly Low Fees

A hard money lender is well aware of the inordinate fees you will pay at a typical bank or other institution. That's why they not only offer competitive rates that are based off of a flat percentage, but they also eliminate a great deal of the "hidden" fees you would pay elsewhere. They aren't interested in taking your money or crippling your ability to succeed. In fact, they aim to do quite the opposite.

Let's say you're a property developer and you're ready to expand into an area of your city that you feel has untapped potential. You've done your research and you have a solid business proposal for an entire complex that would create jobs and businesses in the area. Your dedication and efforts to contribute to the economy already give you an edge, but your solid idea will win you a loan amount that correlates to your needs. Not only are these private companies much more interested in your business success, but they will also give you honest criticism if they feel your plan has potential holes or failings. Even the process of discussing funding with a hard money lender could be exactly what you need to get your project off the ground.

Collateral Determines Loan Amount

Your collateral is a big part of the way a hard money lender will address your needs as a borrower. If you have high-value real estate in your portfolio, you have a great opportunity to borrow an amount that correlates to its value. Even high-value property like precious metals, minerals, or even cars and collector's items will all be considered as a solid support for your request.

Some institutions have more elaborate requests as your loan amount exceeds 100,000. Your assets and holdings in the form of stocks and bonds, as well as your business itself, might be used as collateral. Just keep in mind that if you're borrowing the money for the right reasons, these institutions want you to succeed. There's no reason to fear you'll lose any of your collateral.

What Is Business Debt and How Can You Utilize It?

It is a tool that every business can utilize to start a business, operate and expand a business. Many businesses do not understand how to use this tool to their benefit. All they know is that they need money to do what they want to do. Your first question should be? How am I going to finance this?

Let's start with short term vs. long term debt: short term is paid back immediately or within a year; long term is paid back longer than a year: usually term loans. Debt can be secured or unsecured; unsecured is preferable; some types of security liens can be receivables, inventory, equipment, etc.

Bank business lines of credit usually require that the line be paid down at least once a year. That is a good thing. The line can be secured or unsecured; a probable requirement is the owners guarantee for payment. Banks have also been known to call the line; that means they don't think the business is in a good place, and they want their money. If a line is not paid down and the owner chooses to just pay interest, the cost of whatever they used it for skyrockets.

Since short term is paid back within a year, it should be used to pay for current assets such as inventory, smooth out the business cycle, etc. With the availability of credit card debt, a business can find itself carrying debt (paying high interest rates) used to buy inventory that should be long gone for years.

When should long term debt be used? Many businesses try to finance what should be long term initiatives through operating revenue. Not a good idea. Why because they need operating revenue for payroll, rent, short term debt, etc. Buying a piece of equipment can be a long term endeavor, leasehold improvements, expanding the business such as adding locations. Analyzing the life of what the business is buying will help determine whether it should be short term or long term. A single computer is probably no longer considered to have a long life and would be considered for short term debt; however, replacing a multitude of computers should be considered a long term purchase. Financing a buildout and/or adding a location (in my opinion) should not be financed short term.

To me the beauty of a term loan is your paying interest and principle; there is an end in sight for the debt. Credit card debt is just a vicious cycle when used improperly.

Plan for the Future and Do Not Depend On Your Job Alone

Today having an 8 am to 5 pm make us job feels like we are held hostage with uncertainty hanging over one's head. The decline in the economy of some countries, the bad decisions made by Governments, the changes in the world of business and more, are making the prospect of a full-time employment not so encouraging. Gone are the days when one could expect to work at a job until they reach retirement and settle down to enjoy their small pensions.

The image of the man getting out of bed in the early mornings, and head to the bathroom for a quick shower, then put on is work clothes and after breakfast he hurry's to catch the subway or drive his car some miles away to work, is not such a good prospect at this time. We are like birds that are about to fall into a net and taken to be butchered.

Today, many retired persons are looking for a job or possibly wishing for one, now. The merger pensions, that many collect is not enough to cover their daily living cost such as their medical bills. Many persons worked at a job for a numbers of years, and the day they finally retired, they were expecting to settle down and enjoy their golden years. They wanted to enjoy a late sleep, a nice walk in the neighborhood or attend to their gardens, enjoy watching the sunset in the evening plus other leisure activities. However, this laid back and taking it easy approach has come to an end for many.

Every day we hear news of job redundancy or a lay off taking place in some corner of the world or in our cities. We can imagine the disappointments, the sounds of sadness and the screaming of "what am I going to do now"? There may also be the cry of "my babies, how will I provide for them now"? Other comments such as; "I just took out a mortgage, now how will I pay for it".

It is time for us to wake up to the reality that no job is safe, nor should we take a gamble with your future and family. If you are presently employed and the job is your only source of income, then my friend you could be in for a rude awakening sometime in the near future.

In some countries of the world today, the Government employs the bulk of the citizens and the rest are self-employed or either employed by the private sectors. Today, many Governments are having an issue balancing their budgets, include those in the Private Sectors and so if there is a demand for pay increases by the workforces, and it cannot be met due to a variety of reasons. Then their only option is to slash their workforce. Those who are self-employed are relaxed and go about their daily lives with the knowledge that they are in control of their paychecks.

What should the ordinary citizens do to prevent this unfortunate incident from happening to them? Simply start their own business and earn their own income. When a person works for the Government or the Private Sectors, they are in control of our activities include our paycheck. Therefore, our jobs should never be our security because it could be gone at any moment and often without our consent.

If you are working at the moment, then there is no need to quit your job, however, it depends on the factors. In order to build a secure future for ourselves, we need to take charge of our life and control the source of our income. We should never allow a job to become our single source, so let us be smart and build an extra source of income. Let your present job be one source and build the other source so that there will be no need for you to worry.

The formula to start a business, consist of an Idea, a business plan and a boat full of money. However, this boat load of money concept is not correct but it depends on the type of business. We do not really need to make a visit to the bank and get a million dollar loan because there are many ways that one can earn an extra income for a small investment capital or almost nothing.

Here is a list of business that anyone can start with almost nothing.

• Blogging - The only things you will need are a domain, a hosting account a niche target, a computer with internet connection and a skill for crafting words.

• Delivery Service - Clean driving record, organization skill, knowledge of defense driving and a reliable vehicle.

• Day Care - Sufficient space and surrounding for kids to run and play, love for kids and just the offer to watch and entertain them.

• Freelancing - Virtual Assistant, Writer, Bookkeeping and Accounting, Graphic and Web design.

• Tutorial Classes - Help struggling students with a certain subject

• Drop Shipping - Act as a middle man and connect supplier and customers with product.

There are a lot more ways and there is no need for you to be highly experienced or have special knowledge. While this is correct, you only need to start learning new skills or learn as you go along.

I wish you prosperity and success in your life and new undertakings. Cheers!

How to Choose Between Banks

When you open an account at one of the banks in your area, or any bank for that matter, you are forming a long-term relationship. It is not often that people change their minds about their financial institution once they open an account. As long as you are receiving the services that you desire, you are prone to stick with that financial institution. If you choose to do business with a certain bank, make sure that you are happy with the customer service. Ask about fees associated with various accounts. Depending on your needs, you may need a checking account, savings account, or both. Find out how lost credit cards, overdrafts, and debit card purchases are handled.

Create a List

Create a list of things that you want from one of the reputable banks in your area. Then you can decide on a financial institution based on your banking needs.

Services Offered

Most banks offer a wide range of services. Services can include retirement savings, investment options, and online bill payment.

Other services offered generally include:

- Online Banking
- Mobile Banking
- Text/Web/Apps
- External Funds Transfer
- ATM/Debit Cards
- Telephone
- Wire Transfers
- Electronic Statements
- Cash Management
- Merchant Credit Card

These days, you will usually have access to funds at your local branch, online, and through ATM withdrawals. Most banks also offer loan services for mortgages and secured credit.

Doing Business Online

Online banking has made it possible for customers to check their balances and receive monthly statements. Most banks offer free online services, and you can feel secure doing business over the Internet. You can access your funds 24 hours a day, seven days a week. You will have access to your existing E-statements. You can transfer money between each of your accounts, make your loan payments, and see an overview of your transactions.

Mobile Capabilities

When you are traveling, what better way to complete transactions at your financial institution than by mobile banking. As long as you have a smart phone or other mobile device, you can conduct business transactions. You can even receive your account balances via text messaging. It is a quick way to check on your account without a physical visit to the bank.

Mobile connection allows you to receive current and available balances, review previous transactions, and see existing balances on all of your accounts. All you have to do is text a brief command from your mobile phone, and the information will be quickly delivered to your device.

Cash Management

Business owners can manage their money through cash management services offered by many banks. As a business owner, you will have control over your daily finances, be allowed to create multiple account users, and also have the ability to initiate ACH deposits.

When selecting a financial establishment, choose wisely by considering what important banking features and amenities you can and can't live without.

What To Consider Before Taking A Loan

Almost everyone requires a loan at some or the other point in their life. Whether it is to buy a house or vehicle, start a small business, or for education, loans make it easier to get things when cash is short.

However, if you seeking a business loan, then the process won't be that easy as there is an element of risk involved. So, it is very important that before you apply for a loan you understand how the bank will evaluate your loan application. There are various factors through which the bank will analyse the borrower. Given below are some of the factors that the bank will review and, if you satisfy the criteria, will increase your chances of bagging a loan.

Before You Apply For A Loan...

The first factor that all the banks will look into is the ability of the borrower to repay the loan. So, banks will take into account the sources of repayment. If you are taking a loan for a business then the bank will take into account the cash flow that the enterprise can generate. The banks will also take into account another source such as collateral.

The bank will also go through the borrowers past financial record. If the business has been profitable and it can cover the debt then the bank will approve the loan. In case the business has not enjoyed success in the past as the borrower needs the funds to grow, then the bank will ask for a detailed explanation on how the loan can be repaid.

Good business credit is essential as no bank will bet their resources on defaulters. Sometimes, banks will also analyse the personal credit of the borrower. That is why before applying for a loan make sure that your credit record is good.

Your credit report will carry your credit ratings which you will have to submit to the bank. The bank will evaluate and depending on it you will receive the loan. However, different banks evaluate the credit report differently. If one bank rejects your loan application you may find another bank that would evaluate the report differently.

Your credit ratings will be a combination of a number and letter. The most important is the number; the letter denotes the type of credit. If you are rated '1' then you have the perfect score. This means that you have paid all your bills in time. If you are rated '2' or '3' then it means that you have paid your bills two to three months late. A '9' rating will mean you have defaulted on the bills and it will become very difficult to obtain a loan. It is always better if you take the help of an accountant to interpret your credit report.

The bank will also check if you have a second source of repayment. This is known as collateral, which are basically all those assets that can be sold to pay back the loan. It is the collateral which secures the loan and most loan programs require some sort of collateral. If the borrower doesn't have any collateral then he/she can use a co-signer who can pledge the collateral or the loan may not be granted.

Different Types Of Loans

Loan contracts come in various forms and terms. It will actually range from a simple promissory note between friends and family members to more complex loans such as auto, payday, mortgage, and student loans. Regardless of its type, each loan will be governed by policies and guidelines to protect clients from unfavourable practices such as excessive interest rates. Moreover, loan length as well as default terms must be clearly detailed in order to avoid any confusion or perhaps possible legal action.

In case you are in need of money for a very important item or perhaps to help make your life more manageable, it is a must that you are familiar with all the kinds of loans that may be accessible to you along the different terms you can expect.

Different Loan Types

There are different types of loans which have a certain intended use. They can vary by length of time, by when payments are due, by how interest rates are calculated, and by a number of other factors.

Mortgages - These are distributed by banks in order to allow consumers to buy homes they cannot pay for upfront. This will be tied to your home. This further means that when you fail to pay it, your property will be foreclosed. As opposed to any other loan types, this has the lowest interest rate.

Student - These are offered to college students along with their families in order to help cover the cost of higher education. Generally, there are 2 main types of student loans - those funded by the government and those by private lenders. Experts say that the first option is better since it comes with much lower interest rates and better repayment terms.

Personal - These can be used for any personal expenses. This option does not have a specific purpose. It is for this reason that many are attracted to apply for such. Terms of this loan type will greatly depend on your credit history.

Small Business - This is often granted to entrepreneurs or to aspiring businessmen to help them set up or expand their ventures. Small business loan options will greatly depend on the needs of your enterprise.

Auto or Car - This is quite similar with mortgages since it is tied to your property. They will help you afford a certain car; however, you will risk losing the car when you miss payments. Auto or vehicle loans might be offered by a bank or by the car dealership directly. Though those offered through dealership are somewhat convenient, be aware that they usually cost more.

Did the Bank Bailout Help Small Businesses?

Just as owning a home was assumed to be a positive financial strategy for individuals, small companies owning commercial real estate was typically seen as a routine and constructive piece of their commercial financing during the period leading up to the most recent financial crisis. Both of these assumptions start to fall apart very quickly when it is difficult or impossible to obtain the underlying real estate loans from banks. Real estate continues to be a major component of the overall economy, and ongoing difficulties involving either obtaining or refinancing commercial mortgage loans presents severe problems for both societal economics in general and small business economics in particular.

Did the Bank Bailout Help Small Businesses?

One of the primary arguments made in favor of bailing out banks in 2008 was that it would permit the restoration of "normal financing" to businesses of all sizes everywhere. Seven years later most small businesses are still waiting for bailout funding to "trickle down" to them. Working capital loans and commercial mortgages are missing in action for many commercial borrowers.

Real estate has regularly been in economic news for both good reasons and bad reasons during the past several decades. Starting around 2005, concerns began appearing about the financial health of both real estate and the overall economy. What we did not know at the time was that banks began making speculative investments in financial derivatives tied to real property at about the same time. Some of these investment practices produced massive losses that precipitated the public banking crisis emerging in 2007 and resulting in a widespread bank bailout program in 2008. Even the few instances in which these derivatives produced profits for the banks proved to be controversial because the profitable investing was frequently at the expense of banking customers.

Zombie Banks and Troubled Banks

Here are two of the real estate and banking problems that are still very actively impairing the small business economy:
  • Zombie Banks are still operating - a Zombie Bank is one with a negative net worth (liabilities exceeding assets).
  • The FDIC (Federal Deposit Insurance Corporation) Troubled Banks List still has more than 200 banking institutions on the list.
It is worth noting that the FDIC does not publicize the problem bank list or name specific banks on the list - probably fearing a "run on the banks" if they did so. The recent "bank holiday" in Greece illustrates how quickly bank depositors can lose confidence in banking institutions. But the FDIC does release the number of banks on their troubled bank list on a quarterly basis. For example, the March 2015 total of problem banks as defined by the FDIC was 253. In comparison, the total was more than 850 banks at the peak of the recent financial crisis - but there were less than 50 troubled banks before the 2008 bank bailouts.

What to Do When Banks Say No

Small business owners must draw their own conclusions about the current financial health of banks, but it seems unlikely that a "Troubled Bank" will be able to make a "normal" level of small business loans. If banks are still saying "No" to routine commercial financing for creditworthy small businesses, what is the recommended response? Small business owners should actively review alternatives that include non-bank financing, reducing business debt and increasing sales with cost-effective solutions such as business proposal writing. At some point the practical need to fire their bank and banker will by necessity become one of the realistic actions by a commercial borrower in need of business financing but unable to obtain it from their current banking institution. In such a scenario, "You're fired" can quickly become another example of life imitating art.

How Do You Get Small Business Administration Loans Quickly?

The Small Business Administration or SBA has introduced different types of loans to provide financial support to the small businesses and to help them to operate their companies in the best possible way. It is important to remember that this organization sets proper guidelines for this type of fund that is then made by lender, community development agencies and its other partners. This organization offers the guarantee that this type of fund will be repaid within the scheduled period of time and this kind of guarantee from this organization eliminates all sorts of fear about loss of money from the mind of their lending partners. It is not available to a small business if the latter can access other types of financing options. This article will highlight on a few essential tips that you should consider in order to obtain loans that are offered by the Small Business Administration as quickly as possible.

The first step is to check the total amount of money that you are able to use as capital in order to run your business in a successful way. If you have capital reserve that is at least one fifth of the total amount of money required to complete a particular project, there is possibility that you will get this type of fund without any kind of difficulty.

The second step is to prepare a comprehensive business plan in the best possible way. If you wish to get this type of loan, it is advisable that you should be able to prove that you have prepared an effective business plan. If your business plan is approved, it is advisable that you should be able to explain the ways you want to spend the entire amount of money.

You should be able to prepare financial statements that include a balance sheet, tax form, income statements, cash flow statements and other relevant documents. If you are able to show all your relevant financial statements, there is possibility that you will easily get this type of fund.

The next step is to check your own credit report as well as that of your own business partners. If you wish to get this type of fund, it is advisable that you should maintain good credit records. If you do not have good credit scores, there is possibility that you will not get it within a short period of time.

It is vital that you should be able to prepare a long list of valuable assets that you possess for your business requirement. It is vital that you should be able to display a proof of your collateral in order to get this type of fund within a short period of time.

It is important to remember that this type of lender can even consider your character as much as he can before he approves your loan application. On your part, all you have to do is to prove yourself as a proficient businessman who does not run away from duties and responsibilities at any point of time. There is possibility that your potential lender may even ask for names of referees so that he can call them up to check your background and to assess your trustworthiness in the best possible way.

Things to Be Followed for Getting Small Business Start Up Loans

If you wish to expand your current business or if you wish to start a new business on your own, it is advisable that you should obtain small business start up loans as quickly as possible. If you want to buy an office premise or if you wish to purchase necessary equipment or machinery, it is vital that you should obtain this type of fund in the best possible way. This article will highlight on a few essential things that you should follow in order to get this kind of fund in the best possible way.

The first step that you should remember is that you should be prepared to answer all the relevant questions of your potential lender as quickly as possible. If you apply for this type of fund to a bank, there is a possibility that that particular bank will check out Debt to Equity ratio. It calculates the total amount of money that you have borrowed in place of the total amount of money that you have already invested in the company. If you invest a huge amount of money into your business, there is every possibility that you can obtain small business start up loans within a short span of time.

Your second step is to determine the exact amount of money that you wish to borrow as well the appropriate repayment terms that you need. It is vital that you should be able to determine the amount of money that you are able to pay on a monthly basis and that you should also be able to find out the exact time that you will need in order to repay this kind of fund in the best possible way.

You should also be able to obtain the copies of your credit report from one of the popular credit reporting agencies as quickly as possible. There is every possibility that your potential lender will try to know the details of your credit history whenever you wish to make a decision about loan application. All you have to do is to read the credit report in a careful manner and to find out if there is any sort of incorrect information that is being provided in this type of report.

Your next step is to identify different types of small business start up loans that can be available for you. For example, if you suffer due to bad credit records and if you face rejection from conventional lending organization, it is advisable that you should acquire the loans from other lending organizations.

The next step that you should consider in this matter is to complete the loan application process in the best possible way. You should be well prepared so that you should be able to explain the reasons why you want to apply for this kind of fund and the total amount of money you wish to apply for. The final step is to submit this type of application along with the relevant documents such as license, tax return statements of the last three years, one copy of your original trade plan and so on. Plus, you should be able to provide necessary information about the particular property that you want to use as collateral.

3 Types of Credit Your Lenders ARE Looking At

When you apply for business financing there is actually three types of credit that are reviewed for your approval.

No matter what you're told... personal credit ALWAYS matters... unless it isn't being looked at. For example, when applying for business credit you can use your EIN to get approved and leave your SSN off the application.

When you do this your personal credit isn't even looked at nor is it used for the lending decision but this is about the only exception in the business funding space.

All other funding types including advances look at and care about your personal credit. YES, you can get approved for cash flow financing and merchant advances with bad credit but your repayment terms won't be nearly as favorable then if you had good personal credit.

SBA loans, conventional loans, most other long term loans, and credit lines do require good personal credit for approval in most cases. Collateral and asset type based financing doesn't care about personal credit as much. This is if financing only looks at collateral for approval, not financing where collateral is required for approval.

There is no FCRA in the business world, so lenders will never disclose to you that they pull your business credit when you apply for business financing. But they DO pull your business credit!!!

Just think, you are applying for money for your business, and your business has its own credit profile and score. So of course they will want to see how the business pays its bills on top of how you do as the owner. There is A LOT of money available for business owners, more now than there has ever been in the past. You just need to know what type of financing to go after, once you know that you can more easily find what you need.

Not having establishes business credit makes you look like a rookie, a startup, a "non-established" business. This will lead to denial so insure you have at least 5-10 reported accounts and that you are paying them as agreed.

You actually have three types of credit: Personal Credit, Business Credit and Bank Credit. All three should be good to give you the best chance of approval.

Your bank rating is mostly based on the amount of money you keep in your bank account over the last 90 days. High 5, account balance of $70,000-99,999, Mid 5, account balance of $40,000-69,999, Low 5, balance of $10,000-39,000, High 4, 7,000-9,999, Mid 4, 4,000-6,999 and Low 4, 1,000-3,999.

How to Take Funding From Your Friends or Relatives?

To give a kick-start to your business, you need funding assistance. Getting a business loan is a tough task in today's competitive world. Besides, loan processing requires a good amount of time and you may have to undergo through a lengthy paperwork process too. For budding entrepreneurs, it is relatively easy to obtain business funding from their close friends or family members. However, you should not step forward with a casual approach while borrowing a business loan from your relatives or friends. You should go through the loan borrowing process in a professional manner.

Here are 4 tips that you can follow while procuring a loan from your friends or family members.

Draft a Foolproof Business Plan

A business plan helps your lender clearly understand your ambitions and whether your business is going to be a successful one or not. With banks and other lending institutions, you have to submit a business plan beforehand. It is a crucial part of the loan borrowing process. With relatives and friends also, you should consider submitting a business plan so that they have a fair idea of your business goals and strategies. It will also help them know how you are going to use the loan and how you are going to make profit. It gives them an assurance that they are going to invest in a right project.

Borrow Only the Required Amount of Money

You should not hesitate to ask for a huge amount of money from your parents or friends. Remember if you go for a lesser amount, it will not suffice your funding requirements. You may not even start your venture if the amount is less than the required amount. Do not forget that in any business you will require money not for just starting the business only, but also to run the business and for dealing with various expenses like electricity bill, room rent etc. On the other hand, you should also not take them for granted and borrow excessive money unnecessarily.

Determine Your Repayment Plan

At the time of borrowing money, you should also decide precisely as to how you are going to repay the money. Consider making a plan that is feasible for you as well as for your investors. You can plan to repay the borrowed amount on a quarterly or half-yearly basis. You should also have alternative options for repaying the loan in case your business does not perform well. For that matter, you can prefer to have a legal document too. Make sure that the interest rate, loan repayment tenor and other terms and conditions are clearly mentioned in the document.

Take Inputs from Your Family Investors

You should consider giving an active role to your friends and family members from whom you are going to secure financial assistance. They might provide some invaluable suggestions about how you should start your business or how you should carry out your day-to-day business operations. Sharing ownership with your family investors is not a bad idea. It can help you efficiently run your business.

Once your business is established, make it a point to reward your friends or family members for providing funding assistance when you required the most.

Great Information for Business Owners Directly From Entrepreneur

The following article comes directly from Entrepreneur and contains some very valuable information regarding business.

As an entrepreneur, did you know you have a unique opportunity to build, maintain and acquire credit both individually and as a business owner? That's good news if you're trying to build and grow a company because you won't have to rely solely on your personal to do that.

As a member of the business industry, it's been my experience that fewer than 10 percent of all entrepreneurs know about or truly understand how business credit is established and tracked-and how it affects their lives and businesses.

So let's first take a look at how personal credit differs from business credit. Then we'll discuss some steps you can take to build business.

At the point an individual with a social security number accepts their first job or applies for their first credit card, a credit profile is started with the personal reporting agencies. This profile, otherwise known as a credit report, is added to with every credit inquiry, credit application submitted, change of address and job change.

The information is typically reported to the credit bureaus by those who are issuing credit. Eventually, the Report becomes a statement of an individual's ability to pay back a debt.

In some cases, the same is true for businesses. When a business issues another it's referred to as trade credit. Trade, the single largest source of lending in the world.

Information about trade credit transactions is gathered by the bureaus to create your business credit report using your business name, address and federal tax identification number (FIN), also known as an employer identification number (EIN), which you get from the IRS.

The bureaus use this compiled data to generate a report about your company's business transactions. In many cases, those issuing credit to you will rely on your report to determine if they want to grant you and how much credit they'll give.

The major business credit bureaus that compile and provide copies of the reports are:

• Dun & Bradstreet
• Experian Business
• Equifax Business
• Business Credit USA

Unfortunately, because the information provided to the bureaus is sent in voluntarily--no business is required to send it in--the bureaus may never receive all or even any information about your transactions. In fact, you could go for years racking up without any of it being reported to the credit bureaus.

Establishing Business Credit

Let's start by talking about your business credit score. Scores range on a scale from 0 to 100 with 75 or more considered an excellent rating. Personal scores, on the other hand, range from 300 to 850 with a score of 680 or high considered excellent.

It's important to note that there are many factors that affect a credit score; it's based on more than just whether you pay your bills on time. Your score can be affected by the amount of available credit you have on bank lines of credit and credit cards, the length of time you've had a credit profile, the number of inquiries made on your credit profile and more.

The mistake many business owners make is using their personal information to apply for leases and loans. By doing so, they risk having a lower personal credit score.

Available Business Funding Sources

There are many sources who offer business funding today. Knowing the different sources will help you find the best funding options for your business.

Remember, most of these funding sources you can access right through your funding suite with us. So reach out to me to receive more information about the specific funding that will work for you and your business.

In the meantime take a look at some of the many sources of funding that are available today.

Business Charge and Credit Cards are a fast and easy way to access cash for business. You can use the money for any purpose, and you can be approved for business credit with no personal guaranty or credit check. Many merchants will approve you for individual credit cards of $10,000 or higher.

Angel investors have been responsible for funding over 30,000 small businesses each and every year. With over 250,000 active angels in the country you may want to consider an angel investor network to simplify your search. These investors are a great source of funding when banks won't approve you, and perfect for projects where you need a lot of money.

Asset Based Funding is perfect if your company has collateral such as accounts receivable, inventory, equipment, purchase orders, or real estate. These assets can be used to secure the financing you need, and you can secure asset based funding even if your credit isn't very good.

Bank Loans are still available, although they have become harder to get approved for. Many large banks tend to be much more conservative in lending so you may want to consider a community bank or credit union for a small business loan.
Equipment Leasing helps when you want to lease expensive equipment, and some equipment leasing and financing also works for you to borrower against existing equipment you already own.

Factoring is perfect if you have high amounts of account receivables. You can obtain funding up to 25 million and you can receive your advance within 24-48 hours in most cases. With factoring, you sell your company's accounts receivables to a company (known as a factor) at a discount, in order to free up your cash. The company that purchases the receivables then assumes the responsibility for collecting them. This is a great option as they absolutely don't care about your own personal credit.

Grants are a great way to get money for your business, especially government grants. Depending on your business types and intended use of funds, there are many options available for you to receive grant money that doesn't need to be paid back.

Lines of Credit are perfect sources of working capital. A line of credit works like a revolving credit card but with much lower interest rates and higher available credit limits. You can get credit lines over $150,000 and write checks from the account or use a debit card to withdrawal funds or use for purchases.

Merchant Cash Advances and Merchant Lines of Credit are perfect for businesses who process credit card payments. This type of financing will advance you money against future credit card transactions. You can even get a debit card to use the funds you secure.

Microfinance Loans are less difficult and time intensive to qualify for with loan amounts ranging from $500 to $35k. Many businesses use several micro loans to get money for their business versus applying for one larger loan due to the easier qualifying criteria.

SBA backed Loans are still one of the most popular financing options available today. SBA backs, or insures about 80% of the loan while the lender lending the money takes on about 20% or so of the risk. Due to the lower risk to the bank, many major banks are more apt to lend money using SBA backed loans than regular loans.

Venture capital is neither easy nor fast to be able to tap into but can be a viable source of funding. This is a great source when you need higher loan amounts, and don't mind giving up a potential stake in your company. Plus you don't have some of the headaches that come with conventional funding.

Want a Bank Loan? Learn What a Bank Wants to Know

First and foremost your Bank will want to know how you will be able to pay the loan back in the allotted amount of time. You will need to be able to clearly answer the question: "What's your plan to pay us back"? Your business plan might have most of the information to answer that properly. That's why I am hoping that everyone that reads this article had a plan in place before they began their business journey. It is such a good way to keep yourself on track of what needs to be done on a daily, monthly and even yearly basis. In my opinion it is the better way to track your goals. You begin with a great idea. The Plan helps guide you on that journey to take your idea from zero to one-hundred and then from one-hundred to one-thousand. It isn't that hard, and if you are having trouble there are professionals that will guide you through the process. Get it done!
  • Describe your company: your goals: your objectives:your strengths; your industry and it's future.
  • Products / Services. What gives you a competitive advantage? What are the margins and how will you price yourself to maintain them?
  • Marketing Plan: facts about the industry: size of the market; describe the products / services as your customer sees them: location: competition: who are your customers? Sales forecast: promotional budget: How will you track results?
  • Operational Plan: daily: people: processes: inventory: suppliers: manage accounts: payables.
  • Management and Organization: Do you have a board: attorney: accountant: insurance agent: consultants and mentors, corporation: partners?
  • Personal Financial Statement? Financial plan? 12 month profit and loss projections: cash flow projection determines if you have enough capital to grow? Collateral?
Let me give you an example of what I am talking about. Take the inventory category. What kind of inventory will you keep? What raw materials will be needed? What is the cost of each? What is your total inventory investment? What is your rate of inventory turnover and how does it compare to industry averages? Will there be seasonal buildups? (Very important to cash flow projections). Lead time for ordering? Credit and delivery policies of suppliers?

Your loan will most likely be approved because they feel comfortable about your ability to repay the loan and repay it on time. Congratulations will soon be in order.

Just follow this outline, start writing, start your research and you will be on your way to success!

How to Get Business Financing With Bad Personal Credit

Banks REQUIRE good credit to get approved as you know. Most people only go to their bank when they need money. But the most common business bank loan, SBA loans, only account for 1.1% of all business loans (Department of Revenue 2013). The reality is the big banks are NOT the suppliers of most business loans. And even though they require good credit to qualify, many sources don't.

SBA and other bank conventional loans are tough to qualify for because the lender and SBA will evaluate ALL aspects of the business and the business owner for approval. To get approved all aspects of the business and business owner's personal finances must be near PERFECT. There is no question that SBA loans are tough to qualify for. This is why according to the Small Business Lending Index, over 89% of business applications are denied by the big banks.

Private investors are a great source of business funding. They want average or better credit of 650 scores or higher in most cases. They will also want solid financials for at least two years. Think of private money as being for SBA and conventional bank loans that just miss the mark.

Does the business have existing cash flow proven by bank statements, NOT tax returns? Does the business have over $60k annually received in credit card sales? Does the business have over $120k annually going through their bank account? If the answer is yes then revenue financing or merchant advances might be the perfect funding product.

You must be in business six months for merchant advances and revenue lending. No startup businesses can qualify and you must have 10 monthly deposits or more. Most advertising you see for "bad credit business financing" are these products. These are short term "advances" of 6-18 months. Mostly short term at first, then when half is paid down lender will lend more money at a longer term. Loan amounts up to $500,000 and loan amounts equal to 8-12% of annual revenue per bank statements. For example, a company that has $300,000 in sales might get $30,000 advance initially.

With revenue and merchant financing 500 credit scores accepted and are COMMON with this type of lending. Bad credit is okay as long as you aren't actively in trouble such as in a bankruptcy or have serious tax liens or judgments.

Collateral based lending lends you money based on the strength of your collateral. Since your collateral offsets the lender's risk, you can be approved with bad credit and still get REALLY good terms. Common BUSINESS collateral might include account receivables, inventory and equipment.

With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25-5%.

You can also use your inventory as collateral for financing and secure inventory financing. The minimum inventory loan amount is $150,000 and the general loan to value (cost) is 50%; thus, inventory value would have to be $300,000 to qualify. Rates are normally 2% monthly on the outstanding loan balance. Example is a factory or retail store.
Business Business