3 Tips for Giving Your Small Business a Financial Spring Cleaning
Spring cleaning season is upon us and it's not just time to declutter your office or take inventory, it's also the right time of year for small business owners to get organized financially. From reviewing business expenses, to managing cash flow and revising business plans, every business owner can benefit from a financial refresh. Below are three financial tips to help you stay on track this season:
Restore your business expenses.
As a small business owner, you're likely responsible for filing your taxes on a quarterly basis. If you don't already do this, establish a separate bank account dedicated to your taxes and use it to set aside a monthly amount toward estimated taxes. Also, keeping business checking and credit accounts separate from personal accounts can help you maintain accurate and complete records of all business-related income and expenses, and can help you plan accordingly for when tax payments are due.
Related: 5 Finance Tips All Business Owners Should Follow
If you're unsure about your estimated tax obligations, it's wise to consult a tax specialist who can advise you on the best calculation method for your business. They can also help you to properly track and record your earnings and deductions.
Stay in the green.
Business owners know there are two essentials to keep a business running: profits and available cash. As spring can be a great time for growth, take action to ensure you are both profitable and maintaining a healthy cash flow.
One best practice is to check your business cash flow every week. You may be profitable, but the profits may be stuck in accounts receivable. Focus on the timing of income and expenses to identify potential gaps and plan ahead to determine how much cash you'll need to cover potential challenges.
Related: 5 Small Business Financing Trends to Watch
Nearly every small business will face a time when it needs more cash than it has on hand. During spring cleaning, you may want to consider if a business line of credit would help bridge any gaps your business encounters in cash flow. For instance, when taxes are due, you may want to use a line of credit to help keep your cash flow constant and cover ongoing expenses, while paying down your tax debts.
Consider making time to meet with your banker for a spring financial review that includes an assessment of your credit needs. A banker can walk you through the available options, including some you might not know about, and help you choose the right credit options that make sense. Remember, the more you talk about your business, your needs and your goals, the better guidance you'll receive.
Related: Avoid These 5 Common Small-Business Financing Mistakes
Dust off your business plan.
Every small business should have a formal written business plan to help with business decisions and strategic planning. If you have one already, now is the time to do a quick review and consider updates to reflect your current business needs and goals. If you don't have one, set aside time to draft this important document.
From start-up to succession planning, a business plan serves as a guide through the entire lifecycle of a business. An effective plan can help business owners prioritize how to spend their time and money, and set measurable goals. It also can help identify current or future obstacles so you can better anticipate and avoid potential risks. In addition, a business plan may help you obtain business financing. For example, for an SBA loan and some larger business loans and lines of credit, lenders may require a formal business plan before extending credit.
Giving your small business a good spring cleaning is not only refreshing, but it's also a productive and strategic task. By updating your business plan, managing cash flow and organizing your finances, you'll find that your small business is ready to head into spring better prepared to grow and succeed.
http://www.foxnews.com/us/2016/05/09/3-tips-for-giving-your-small-business-financial-spring-cleaning.html
Startup Commercial Financing With Bad Credit
Different kinds of firms opt for business loans if their credit is not good. By obtaining the loan from the institutions, the firms are able to redistribute their debts, decrease expenditure, strengthen the firms accessibility of money and preserve working capital.
What counts is how quickly and cleverly you are able to get hold of an authentic agency that gives loans to even those with bad credit.
Assess your financial situation and then understand what you are looking for, what are your needs are and what how bad your credit rating is.
Loans for business purposes are provided for thirty years on whole. You are able to obtain funds more rapidly and easily, by opting for bad credit startup commercial financing programs. You dont have to pay high equity rates for these loans and the fees that you pay is even less. If a persons credit is extremely bad then he will have to pay interest at a much higher rate. About seventy-nine percent of LTV or loan to evaluation is provided by business loans and the rates ranges from loan to loan. The rate of interest charged will be different for different loans and this will be dependent on the time period and the status of the loan.
Do a thorough market survey and access quotes from as many lenders as possible.
Do not borrow more than what you can pay back since this might be your ultimate scope of developing a better credit.
The different kinds of financial alternatives consist of variable rates loan, 3-15 year balloon loans, equipment and real estate loans, term loans, leasing, factoring, contract financing, asset based loans, short term loans and credit lines. The other alternatives that you have are, import and export financing, franchise and inventory financing, expansion and working capital credit lines.
You can also apply for business loan online, if you have a bad credit.
Online companies might help you in getting in touch with authentic loan lenders who give loans to people with a bad credit.
Many institutions offer business or commercial financing to firms for a variety of purposes like acquisition, merger, spreading out of business, etc. Usually these institutions will provide competitive pricing and flexible terms though based on personal characteristic of the loan required.
Those who are members of credit unions be sure to check with them before you approach any one else.
You may try approaching banks for which previous payment has been done. The bank may overlook your bad credit.
Usually people or organizations (with bad credit) use commercial financing for merger or acquisition, capital expenditure financing, etc.
It can build the credit of the business and re-establish the business, and assist new companies to obtain funds through unsecured credit.
In case you apply for a secured bad credit loan or opt for a lower loan amount then you might be approved for the loan easily.
In spite of a higher rate of interest it would be lower than what you would have given with an unsecured bad credit loan.
Many small owners who want to obtain funds are puzzled by the different rates of interests for the loan. You must be wondering how the borrower can find out which rate is best for them and whether the rate is the lowest.
Compare the Annual Percentage Rates rather than the interest rates only since the APR gives details about the interest rate as well as the fees that the lender is likely to charge.
The rate of interest will depend on several factors like the period for which the loan will be taken, the income or taxation returns, credit scores, loan-to-value, kind of business, assumable or not assumable loan, etc.
Many people want to have very low rate of interest for their startup commercial loan but they do not understand what they are actually losing to get the low rate. In reality, the terms of loan that the borrower has to give up is much more valuable than the low rate of interest.
http://www.articlesnatch.com/blog/Startup-Commercial-Financing-With-Bad-Credit/322510
Report: Chrysler lenders offer to swap $2.5B for equity
Banks and hedge funds that hold $6.9 billion in Chrysler debt have proposed forgiving $2.5 billion of it in exchange for about a 40% stake in a Chrysler-Fiat alliance, according to two people briefed on the proposal.
One of the people said the lenders delivered their counterproposal to Chrysler and the U.S. Treasury Department late Monday night. Neither person wanted to be identified because the negotiations are private.
The counteroffer comes as Chrysler races to meet a government-imposed April 30 deadline to swap debt for equity, cut labor costs and negotiate an alliance with Italy's Fiat Group. If it misses the deadline, government aid will end and Chrysler likely faces liquidation.
Last week, creditors rejected a Treasury Department offer to reduce the debt to $1 billion, absolving Chrysler of about 85% of its secured loans. The counteroffer, which would swap about 35% of the debt for equity, falls short of government restructuring goals that called for Chrysler to retire at least two-thirds of its debt.
Messages were left with spokeswomen for the Treasury Department and Chrysler.
Chrysler is living on $4 billion in federal loans and could get another $500 million to survive through April. But without massive restructuring and a Fiat deal, government officials have said they won't lend the struggling automaker any more money.
TRUMPDIR website
The counteroffer from a steering committee would give the equity stake to first-lien lenders including Citigroup, JPMorgan Chase, Goldman Sachs Group, Morgan Stanley and several smaller banks, plus some hedge funds. Chrysler has about 45 first-lien lenders who would be first in line to get money if the company's assets were liquidated.
"The goal is something close to 40% of the equity" in the combined Chrysler-Fiat company, according to one of the people briefed on the lenders' proposal. "Taking equity is a risky proposition," the person said.
When the Bush administration agreed to give Chrysler and General Motors loans last year, they set targets for the companies to swap two-thirds of their debt for equity. The Obama administration has been less clear about how much debt must be exchanged, saying in a March 30 statement that Chrysler must have a "sustainable debt burden."
"This at a minimum will require extinguishing the vast majority of Chrysler's outstanding secured debt and all of its unsecured debt and equity, other than trade creditors providing normal trade terms," the statement said.
One of the people briefed on the counteroffer said the debtholders are aware that it doesn't meet the two-thirds debt-for-equity swap required by the Bush administration, but it would be a piece of an overall plan to wipe out most of Chrysler's debt.
Including the secured debt http://www.seedcapital.com/businessloan2/ and government loans, Chrysler owes about $23.5 billion, including $10.6 billion to a United Auto Workers trust fund that will take over retiree health care costs starting next year. It also owes $1 billion each to its current owners, Cerberus Capital Management and Daimler.
trumpdir.com/
The company is negotiating with the UAW to take equity for part of the trust fund obligation.
Bankruptcy experts have said the secured debtholders would be less likely to settle for pennies on the dollar because their loans are secured by Chrysler's physical assets and because they likely purchased credit default insurance that would repay them if Chrysler defaults.
Chrysler and Fiat are discussing a deal in which Fiat would take a 20% stake in the company in exchange for Fiat's small-car technology. Fiat CEO Sergio Marchionne is in the U.S. through today taking part in the negotiations.
Contributing: AP Auto Writer Dan Strumpf from New York
http://abcnews.go.com/Business/story?id=7404349
Cracking The ( SBL Loans ) Code . Fast Track Your Approval On The Canada Government Small Business Loan
SBL Loans in Canada. How can the Canadian business owner or financial manager ' crack the code ' when it comes to the Canada small business loan. Its of course a government program that helps businesses get the financing they might otherwise not be able to achieve.
Let's examine some crucial tips, dare we say ' secrets ' around cracking the secret code known as ' approval' on a program which has helped almost 8000 different businesses annually to either launch or grow their business.
We think we can all agree that if you don't understand the program offering then you clearly can't formulate a proper plan for approval
First of all Industry Canada although sponsoring or ' underwriting ' the program is not the direct lender under the program. So, bottom line, no trips to Ottawa required. (We lived there for ten years though and its highly recommended for a vacation!). So if the government loan is not obtained from the government, who do you get it from? The answer is a Canadian chartered bank, and several other miscellaneous instantiations, but essentially its the banks.
Since there's virtually a Canadian chartered bank on any business corner in Canada cracking the code on that is easy, right. Not so fast, partner!! The reality is that you need to find a commercial/business banker that is attuned to the program, understands it, and has the ability and credibility to sponsor and recommend your loan. That banker is best obtained via a referral from any trusted Canadian business financing advisor of yours, or even your accountant or lawyer.
To crack the code on successful approval we can summarize by saying that you need to have a solid understanding of:
Eligibility
Amount of Financing Available
Repayment Terms
Usage restriction of the funds (this is critical and widely misunderstood)
The approval process
Businesses in Canada with revenues fewer than 5 Million dollars, even if they are a total start up are eligible for the Canada Small Business Loan. (The government calls it the CSBF program / BIL)
Financing up to 500k can be sought, but that amount pertains just to real estate, so typically the cap on the program is 350k.
Repayment terms and structures are excellent - Terms of 1-7 years are generally available, 5 is a typical term we see all the time. Rates are essentially 3% over prime, making that a great rate anytime, even better in the current low interest environment.
Proceeds can be used not for cash or working capital, but for equipment leaseholds, software, computers, architectural design fees, etc.
The approval process consists essentially of a need for a crisp busines plan or executive summary, a detailed cash flow analysis and repayment plan, and miscellaneous info on yourself and your business that you would associate with any financing application.
Need help to ' crack the code '. It's not as big a secret as some maintain. Speak to a trusted, credible and experienced Canadian business financing advisor for help with ' the code '!
Author's Bio:
Stan Prokop - founder of 7 Park Avenue Financial
http://www.7parkavenuefinancial.com
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/sbl_loans_canada_small_business_loan...
http://www.selfgrowth.com/articles/cracking-the-sbl-loans-code-fast-track-your-approval-on-the-canada-government-small-busines
