Advice 2009 – Right Time to Finance Business Equipment, Wrong Time to Pay Cash

You sell products vital to the health of your customers, right? Don’t even think about letting them pay cash for their purchase. Sound like blasphemy? Not in the current economic climate where CASH IS KING. What makes us, Bank of Cardiff, qualified to give you advice? We finance thousands of equipment categories from copiers and forklifts to microscopes and excavators across the US. But we’re not here to talk about that, this is about your customers and your business.

Put your eyeballs squarely on 2009. The real uncertainty ahead is what the President-elect might do next year, the only year when changes he and Congress make can turn disastrous and cause the economy to go into shock. This is not theory, but rather empirical fact backed up by data from the past century. Data on the S&P 500, a good gauge for America’s stock market and economy since 1950, shows us the first year of a President’s term has been a down year for stocks seven out of 15 times, 1981 and 2001 being the most recent examples. Second years have been down six out of 15 times with the dubious honor of having the biggest downturns-over 20% in 1974 and near 30% in 2002.

If the new President raises taxes or provides economic incentives for one group of citizens but not another, that creates winners and losers. Winners smile and losers cry. Losers hate losing more than winners like winning, so the economy stinks. Business owners are treading on dangerous ground now. Many have trouble paying the mortgages they signed when real estate prices skyrocketed five years ago. Our firm looks at credit reports all day and boy is America leveraged! If we have $20,000 available to us on our credit lines, we’ve used up $19,999.

Can’t we just get another card and solve that problem? Not only will you have trouble getting the mortgage you got five years ago today, but credit card companies won’t help you pile on more debt because they’re seeing defaults and delinquencies rise month after month.

Cash is king and businesses need as much as they can muster in 2009. Sales are down, profit margins are squeezed, so watch your bank balances ever so carefully. If you sell physical products, you MUST offer financing, leasing, and lines of credit to good credit and poor credit customers alike. Get pushy and make sure you have a solid financial partner sharing the risk with you.

You’ll move more product today because customers won’t worry about buying an additional machine when the cost is just a slightly higher monthly payment. Then they might come back tomorrow to get something else. Doctors don’t fret giving you prescriptions when they think you need medicine.

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Unsecured Business Loans – Finance Business Projects with Ease

A person aspiring for establishing a business may not be having enough at hand for supporting the project. Though he has the option of loan open but since he is starting a business, he may not think it fit to risk his property merely for a loan or may be he does not own a property. In such conditions unsecured business loans are useful for these types of borrowers. Usually unsecured business loans are preferred by those who are entering in a business field freshly. But the loans are taken for expending the existing business as well. Through unsecured business loans one can buy office space, furniture, equipments etc or the loan can be utilized for paying previous debts also.

Unsecured business loans are provided without taking any of the applicant’s property as collateral. So the loan is completely risk free for the business persons. Unsecured business loans are thus provided solely on the basis of repayment capability and past record of the borrower. If the credit history of the borrower is good, the loan comes at easier terms and conditions. If the lender is convinced about its safe return, any amount from ₤5000 to ₤100000 can easily be availed. Because of the risks, lenders charge higher interest rate on unsecured business loans. However there is convenient repayment duration of 5 to 25 years attached to the loan. This means the business person has many years for establishing business and repaying the loan.

It is clear that unsecured business loans are costlier as higher interest rate is charged by the lenders. This means the loan should be availed only in the time of urgency. Also make sure that you have adequate surplus amount for regularly paying the loan installments. If you are unable to repay the loan then you are burdened by a higher interest rate debt which may jeopardize you financially.

It should be noted that unsecured business loans are offered mainly on your financial credentials. In terms of credit score, it can be said that you should be having a good credit score of 6oo to 620 for ensuring a unsecured business loan at good terms. But that does not mean that bad credit borrowers can not apply for unsecured business loans. Bad credit business persons too are eligible but they should convince the lender that the loan will be returned in time. Take a convincing repayment plan along with your income sources and bank statements and the loan will be in your pocket. The type of business you are investing the finance in also matters much while considering loan application of bad credit borrower.

For unsecured business loans seekers the cost is the most worrisome factor. Higher interest rate can scare some business persons. But instead of running away from the loan, make efforts for availing at comparatively easier terms. Compare different unsecured business loans providers on internet for individual interest rates. Settle for the lender of comparatively lower interest rate. Also see if the lender is interested in providing unsecured business loans to bad credit borrowers. Apply online to the lender for quick processing and timely approval of unsecured business loans.

Surely unsecured business loans providers offer an easy finance for establishing a business. Take each aspect of the loan in consideration before applying for to a lender. The loan goes a long way in enhancing financial prospects of the venture if used wisely. Pay off the installments regularly so that you avoid debts.

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Who Is Financing Business Loans Other Than Banks?

Business loans are a reliable source for financing a business’s needs including funding daily acquisitions and operations, getting rid of debts in a simple manner and arranging investment for a new venture. Entrepreneurs who are always looking for new business opportunities know the value of instant finance. If a person has access to a quick loan facility only then can that person consider opportunities to further their business interests. If they don’t have access then they will miss opportunities just because they couldn’t receive a loan. Whether you are eligible for a loan or not is a matter of debate as the criteria for distributing loans differs from one bank to another and from one financial institution to another. You still need places where you can borrow good amounts of money as loan to allow you to sail through trouble waters or cash in on a business opportunity.

When it comes to seeking Business loans, the first thing that comes to mind is the bank. Businesses rely heavily on banks for loans despite knowing that the banks take their time in distributing the loans. Moreover, they adhere to the guidelines which work like steel frames and force entrepreneurs to satisfy the bank on every account. The banks require an excellent credit history, increasing sales, rising profit margins and a lot of paperwork from the companies. Those who can satisfy the banks on their every request can receive the loans. But not every business can receive loans from the banks hence they have to adjust with their present growth rate.

Private finance groups offer a helping hand to entrepreneurs and businesses that have the ability to grow and reach new heights. A booming enterprise can receive Business loans up to $100,000 under the private loan program. Very simple paperwork and nominal formalities could enable you to receive your desired sum. This is the most convenient method of applying and receiving loans. The private finance organizations are run by experts who work on making receiving loans for entrepreneurs simple. They take don’t much time in processing loan applications and transferring the funds. Most importantly private finances assures a loan for everyone.

Business loans from private financers are just like any other debt but the difference is this that it is more in the form of help. You return the money in a stipulated time period and the finance company charges a fixed interest rate. There are many groups that offer loans to businesses and it is better if you can search several companies before choosing one.

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Financing Business Expansion & Business Commercial Finance Mortgages

A lot of theories have been propounded and even studies have been advanced on the subject of business expansion. But one that is worth taking note of is the study of Dr Ichak Adizes. In most of his research, he brings out the fact that every association has its evolution and it builds up starting from a normal formation stage and progresses into a mature stage. At every phase of its existence, the association will have to experience upheavals. In most cases, success in business will only have to be experienced by those business owners who have all the resources, the expertise as well as the experienced required in sailing through financial difficulties. The following lines will identify the various ways through which a business can be financed as soon as it is set up and even right up to when it is fully established in the market:

The Formative Phase of the Business

This is one of those very delicate stages in which every entrepreneur will want to take all measures not only in making sure that the business takes off smoothly, but to ensure that the business has come to stay for good. What every type of business will need at this phase as identified by Adizes is a running capital and an appropriate administration to take care of that capital. What should be observed at this phase of business is that so many unforeseen circumstances may come up. It is for this reason that enough capital should be hoarded to take care of any unforeseeable risk. What the entrepreneur has individually gathered may not be enough. Therefore, it is good that a resort to angel financing, venture capital, corporate venture capital and loans is opted for. Keep in mind that once a business is at this starting phase, it will need a lot of finance to surmount the odds often posed b market forces or even from competitors. This is necessary for a continuous operation.

The Business Flow Phase

This is phase where the business is already running and it is at least expected that the inflow of money is certain. This is also a phase at which the entrepreneur starts to develop some form of confidence that the business will thrive amidst the odds. Although the entrepreneur will have some measure of satisfaction, there is a need to obtain some form of security for the future of the business. This is the main reason why much of what is received in the form of profits should either be ploughed back into the business or should be used to acquire some fixed capital that the business can rely on in the future. The business can also use this to employ more qualified staff.

The Youthful Phase

This is a phase in which the business will experience a lot of unpredictable circumstances. It should be noted that growth in the business will still be experienced, but this will not be stable. It is certain that at this phase, the business will already have made some significant amount of savings. It must also have gained some standing within the business environment and can conveniently surmount any hurdle within the business environment. The money that has been saved should therefore be taken to counter any shortcoming. But the entrepreneur should also make sure that the business can first of all rely on what it has kept in stock rather than seek for external help.

The Mature Phase

This is a phase in which almost everything is certain. Every objective must have been put in place and every priority must have been identified. Growth or expansion at this stage should be maintained to remain stable. The business should also seek for means of spreading out its risk by opening up to possible investors. Also remember that this is the stage in which financing becomes much easier to obtain. This is because the business must have developed some credit worthiness.

An understanding and appreciation of all the phases that your business goes through is important if you have to maintain its growth or develop ways to compete within the business environment.

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