Business Finance And Choosing The Right One

One of the main reasons as to why new business ventures fail is due to a lack of financial funding to get the business venture off the ground. Many people don’t realise how much opening and running a business actually costs. If you don’t research and seek out business finance you will be unable to pay for your business premises, all of your necessary equipment, your bills and your staff wages as well as any of the stock that you will need.

You also need to ensure that when you decide on your business finance that you choose the one that is best for your business. Finance comes in many different forms and can be split into two main sections; equity finance and debt finance. The definition of equity finance is money that is invested into your business that doesn’t need to be repaid. This money is yours to use in return for a share of your business profit. As well as getting money invested into your business with equity finance you will also gain expertise and business contacts that are yours to use. The second main type of business finance is debt finance. This is money that is loaned to you. It is money that requires the need to be repaid over an agreed amount of time. You will have to repay the loan in full with added interest but no percentage of your shares are handed over.

Some examples of equity finance include business angels; these are entrepreneurs who invest a certain amount of money into your business. In return for the money that is invested a business angel will gain some of your shares so that they get a percentage of your profit. Business angels are perfect for start-up businesses as they provide money that doesn’t require the need to be repaid as well as expert advice about the best way of running your business. Another example of equity finance comes in the form of a venture capitalist. A venture capitalist is virtually the same as a business angel apart from they can provide higher amounts of finance and tend to invest more in established businesses where the risk of failure is reduced.

Some example of debt finance include; bank loans. When most people think of start up business finance the first place that comes to mind is their bank even though banks are very weary about lending money to new businesses as there is fear that the monthly repayments will not be kept up-to-date. Another example is credit cards; these are expensive when it comes to start-up finance but they are also a quick way of raising finance. One more example of debt finance is overdrafts; these can be expensive but are a flexible form of borrowing, they are not suitable for long term finance and are repayable on demand.

Although with debt finance you have a lot more options open to you with ways of lending money, the option of equity finance is still more favourable with new businesses as a private investor will do everything that they can to ensure that your business is a success.

Avoiding Business Finance And Credit Card Processing Mistakes

Although it will not be easy, avoiding key credit card processing and business cash advance mistakes is likely to eliminate business finance problems that often have disastrous consequences. The use of proper precautions is likely to produce improved working capital management results.

In our experience, the potential difficulties involving factors discussed below are more serious and common than most business owners expect. While we will not be addressing all possible merchant cash advance and working capital loan mistakes in this article, we will include several of the most severe issues to anticipate.

Misrepresentations and Unwillingness to Explain Working Capital Details –

In my experience, most business cash advance and working capital loan agents are more interested in earning revenues from credit card processing than anything else. This results in rampant misrepresentations about what they can do for a business owner in their attempt to secure business finance help through credit card financing. In such a situation, the time and costs for the business owner are typically misrepresented so that the processing changeover proceeds rapidly.

It should come as no surprise that such advisors are often motivated by their own financial interests more than those of business owners they are representing. In such cases, they are unlikely to provide either detailed information or prudent advice for a commercial borrower. A recommended procedure for avoiding such a potential trap is by using an experienced advisor who is involved with all business financing aspects rather than just business cash advance and credit card processing services.

Working with a business finance expert who routinely avoids such inappropriate conflicts of interest should be the preferred approach whenever possible. An advisor is much more likely to provide an unbiased business cash advance recommendation if they will not profit from the credit card processing.

Ignoring Common Credit Card Factoring and Business Financing Problems –

Although business cash advance and credit card processing programs are needed by many businesses, commercial borrowers should not overlook the numerous problems that can regularly occur with these services. We have prepared several reports that describe in detail key problems for many merchant cash advance services.

It is simply not necessary to experience any of the typical difficulties, although it is fair to say that many providers will have several of the problems present in their services. The recommended strategy for avoiding this particular mistake is to work with an experienced advisor who is knowledgeable and candid about how to approach these critical business finance problems.

Inexperienced Business Finance and Credit Card Processing Advisors –

Most lenders and brokers which previously provided residential mortgages have been forced to look for alternate sources of revenue. Business cash advance and credit card processing programs have recently become more popular with these brokers and lenders.

The immediate impact is a sudden influx of inexperienced residential mortgage brokers and lenders attempting to provide working capital management advice for credit card processing and business cash advance services. As we have written about extensively, business financing is infinitely more complex than residential financing. For most business owners, the use of inexperienced business finance advisors will be a mistake of potentially serious proportions. Conversely a prudent strategy for avoiding this mistake is to eliminate advisors and lenders without significant long-term business financing success.

Solutions and Strategies for Avoiding Credit Card Processing and Business Cash Advance Mistakes –

Business owners should look for advisors and resources which will provide relevant strategies and solutions for a business owner to acquire an adequate understanding of complex business cash advance and credit card processing issues. Prior to beginning a working capital loan process, business owners should have a thorough discussion with a business financing expert. These efforts will be worthwhile since the potential business finance mistakes described above can be overcome successfully.

Sba Loan For Business Finance And Commercial Real Estate Mortgage

Finalizing a Small Business Administration loan (SBA loan) and refinancing an SBA loan can frequently be among the most difficult commercial mortgage and business financing circumstances for a business finance or business real estate borrower. There are successful business loan strategies for both loan situations.

Are SBA Real Estate Mortgage Loan and Business Financing Programs Difficult?

There are usually two schools of thought about getting an SBA loan to buy a business or commercial real estate: (1) Avoid a Small Business Administration loan at all costs. (2) Use an SBA loan whenever possible. These conflicting viewpoints are due to a commercial mortgage business loan process that is perceived as complex and difficult by many commercial borrowers.

Despite the negative atmosphere surrounding the SBA loan process, it can be worth the time and effort for many borrowers. There are critical business financing and commercial real estate loan obstacles to avoid with a Small Business Administration loan, and there is only a small number of capable lenders in this demanding commercial mortgage and working capital area. It is vital for a successful SBA loan program to involve a real estate and business finance advisor that is skilled at this rigorous business loan system.

Is SBA Loan Refinancing Possible for a Real Estate Loan or Business Opportunity Financing?

SBA Loan refinancing for both real estate and business finance loans has usually been a very difficult proposition. New business loan programs have dramatically improved these Small Business Administration commercial mortgage refinancing restrictions, but the new refinancing options are not widely available.

Future planning for business financing can eliminate many SBA loan refinancing difficulties. If the original commercial real estate loan or business loan can be finalized without including an SBA loan, future business refinancing will be more viable. Borrowers should determine if the initial commercial mortgage truly must include a Small Business Administration loan.

Typical Business Finance Misperceptions with an SBA Loan

One of the prevailing views of an SBA loan program concerns the documentation needed to finish the commercial real estate mortgage requirements. The key to a successful Small Business Administration loan process is trusting the loan facilitator about what is required. What business borrowers should try to realize before becoming frustrated by the loan process is that any commercial loan process will include substantial paperwork whether an SBA loan is involved or not.

A more serious possibility for business borrowers is that they could end up with an SBA lender that is rarely successful in finalizing Small Business Administration loan applications. Judging the real estate loan and business opportunity financing process by looking at the frequency of both successful and timely outcomes for commercial borrowers, the harsh reality is that there appear to be far more ineffective SBA lenders than effective Small Business Administration lenders on a nationwide basis.

Commercial Mortgage Options – SBA Loan Alternatives for Real Estate and Business

The practicality of refinancing a commercial loan will be determined by the commercial borrower decisions when acquiring the original real estate mortgage or business financing. In obtaining a commercial loan to buy a business, non-SBA business loan possibilities should be evaluated along with the option of obtaining a Small Business Administration loan.

A conventional business loan and real estate mortgage might be more feasible than many borrowers realize. The possibility of refinancing either an SBA loan or conventional business financing will ultimately be more practical and successful when working with a skilled commercial mortgage advisor and commercial lender.

Business Finance And Business Loan – Residential Loan Differences

With the increasingly chaotic investment climate for residential financing in the United States, more residential real estate investors are exploring commercial real estate and business finance opportunities. It is important for prospective commercial property owners, business owners and business investors to educate themselves about options for the business loan and commercial mortgage environment they will be facing.

There are many critical differences between residential real estate investing and commercial real estate investing. Of the approximately 25 key business finance differences, some key factors will be addressed in this business loan report and other business financing factors will be discussed in a separate article.

Stated Income Business Finance Possibilities

Stated income business loan options will eliminate the need for a borrower to provide personal tax returns. However the stated income business finance approach will not eliminate the need to document income for the business being purchased or refinanced. Unlike residential financing, no documentation (no doc) loans are not available for a commercial mortgage.

Down Payment for Business Opportunity Financing – Business Finance

To purchase a business will typically require a business loan down payment varying from 10% to 25% (more in some cases). This amount will primarily vary according to credit scores, type of business, business experience of the borrower and whether business opportunity financing is required.

Commercial Mortgage and Business Opportunity Financing – Size Limitations

It is very difficult to obtain a commercial mortgage less than $100,000. A normal maximum for a stated income business loan and SBA loan situations is $2 million. A number of other business finance programs are limited to $5 million.

Commercial Mortgage Interest Rate Expectations

Interest rates for a business loan are generally higher than residential financing and rates up to 13% and even higher are possible. It is possible to obtain both fixed and variable commercial mortgage interest rates. Business opportunity financing typically has interest rates 1-3% higher than a comparable commercial real estate loan situation.

Business Finance and SBA Loan – Personal Guarantors

A personal guarantee from all principal owners is usually a standard requirement for business finance situations even when a business is titled under corporate ownership. Because of this, individual credit scores of the business owners will be an important factor to qualify for a business loan. Individuals should expect to personally guarantee a commercial mortgage if they own over 20% of a business.

Business Loan and Commercial Mortgage Appraisals

Commercial real estate appraisals are much more expensive and complex than residential appraisals and typically take several weeks to complete. The basis for business loan and commercial mortgage value is primarily based on the income generated by the business rather than an analysis of comparable properties prevalent with residential mortgage loans.

What About Other Commercial Mortgage Differences?

As noted previously, there are too many differences between residential financing and business finance situations to describe adequately in one article. Some of the critical issues discussed in separate reports are how to avoid common business loan problems, SBA loan financing, balloon and recall provisions for a commercial mortgage, business opportunity financing and special purpose commercial properties.

Functions of Business Finance

Strength and soundness of business depends on the availability of finance and competency with which it is used. The abundance of finance can do wonders and its scarcity can ruin even a well established business. Finance increases the strength and viability of business. It increases the resistance capacity of a business to face losses and economic depression. It is just like a lubricant, the more it is applied to the business, the quickly the business will move. Following headings explain the importance of finance to business:

(1) Initiating Business: Finance is the first and fore most requirement of every business. It is the starting point of every business, industrial project etc. Whether you start a sole proprietary concern, a partnership firm, a company or a charity institution, you need ample amount of finance. It is equally important for profit seeking and non-profit activities. It is equally important for a multinational organization and for a free dispensary.

(2) Purchase of Assets: Finance is needed to purchase all sorts of assets. Even if credit is available some down payment is to be made. Mostly finance is needed at the start of business for the purchase of fixed assets. These fixed assets consume a large amount of initial investment of the entrepreneur, so he may face liquidity difficulty in running day to day affairs of the business.

(3) Initial Losses: No business attains high profit on the first day of commencement. Some losses are normal before the business reaches its full capacity and generate enough revenue to match cost. Finance is necessary so that these initial losses can be sustained and business can be allowed to progress gradually.

(4) Professional Services: Certain business need services of specialized personnel. Such personnel have rich experience in specialized fields and they can provide useful guidance to make business profitable. Nevertheless these services are costly. Finance is always needed so that services of such professional consultants can be hired.

(5) Development: Business is always exposed to change. New innovations and emergence of new technologies replaces old techniques out of market. So in order to remain in the market, it is needed to keep the business well equipped with all emerging tools and techniques. This required finance. New technology is always expensive as it is better than others. So finance is needed to purchase new equipment and keep the business running.

(6) Information Technology: Information technology has now changed the geography of the business battle field. The home markets have now extended virtually to other comers of the world. The whole world can be your customer or competitor. To face such a fierce competition, IT is needed. Skills and competency in IT can perform miracles. But finance is again the decisive factor. It is very much needed to incorporate expensive IT products in the business.

(7) Media War: The advertisement and promotion have now become a vital elements for the success of business. The way a businessman approaches a customer and convinces him to purchase his product has become more important than the quality of product. With advertisement on International media, a businessman can reach the minds of millions of people around the globe. However, advertisement is a luxury which every business can’t afford. Huge finance is required to meet advertisement expenses.

(8) Resource Management: Finance is very essential for efficient resource management. Resources here include capital and human resources. Maintenance of plant and equipment and training of employees all need finance. Establishment of new industrial units, expansion of plant capacity, hiring of well learned skilful laborers – all
these factors can lead to huge revenue but at the first place they need finance to start with.

(9) Stock Investments: These investments are those which are made to hold ample stock of raw materials in hand. Bulk purchase of raw materials is profitable in a sense that purchase discount can be attained and there is no danger of production halts. So companies most often hold huge amount of stocks and raw materials. But such an investment can be made only if a company has sufficient capital or finance to carry out its daily operation easily besides holding huge stock.

(10) Combating Risks: Everything is exposed to one or more risks. A business is also exposed to variety of risks. These risks include natural hazards, burden of any huge liability, loss of market or brand name etc. Finance is needed to make business powerful, so that it can sustain occasional losses and liabilities.

Business Finance Funding Advice and Commercial Financing Help

The Working Capital Journal is one of several commercial financing resources which should be reviewed regularly by small business owners to assist in keeping up with the imposing difficulties posed by rapid changes in the business finance funding climate. As noted below, there have been some surprising actions taken by lenders as a direct result of recent financial uncertainties. The increasingly complex and confusing environment for working capital finance is likely to produce several unexpected challenges for commercial borrowers.

The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time.

Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.

Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.

By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.

One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. Fortunately, restaurants accepting credit cards are in a good position to obtain needed cash from credit card receivables financing and merchant cash advances.

Small Business Finance Success Improves With Realistic Options

The goal of being realistic when seeking new commercial loans and working capital financing will help commercial borrowers avoid a number of commercial finance problems. With proper preparation business owners should be in a better position to obtain new financing despite the difficult challenges impacting most working capital loans and small business financing. Nevertheless it should be anticipated that terms of financing will be different from prior commercial financing. Because of recent commercial lending difficulties, business owners actively assessing the most effective options for their small business finance decisions are likely to find the smoothest path to business loan success.

In view of volatile conditions which have recently impacted credit markets, this will not be a simple task. A very common example of the problem is illustrated by how much misinformation and confusion there has been about business financing and working capital availability. Getting more accurate information about what is realistically possible can be one of the most difficult challenges for commercial borrowers.

When seeking to identify realistic choices in a confusing working capital management climate, a number of harsh realities must be confronted by all small business owners. For most current commercial financing decisions by business owners, there are several major factors to anticipate. In the first example, additional small business loan collateral is being requested by most commercial lenders. Second, many regional and local banks have discontinued lending for business financing and working capital. In a third example, businesses which are not currently profitable or not current in their debt payments will have extensive difficulties. Fourth, business construction funding currently is very limited in most areas. In a fifth example, lenders are eliminating unsecured business lines of credit for most small business owners.

Despite the new business financing limitations just noted, there are practical working capital options for small business owners to consider. An increasingly effective commercial financing option in the midst of an uncertain economy is a merchant cash advance program based on credit card processing activity. Even though this commercial funding option has been available for a few years, it has not been used by most small businesses. For most businesses which accept credit cards, merchant cash advances should be evaluated as an important tool for improving business cash flow. Small business owners wanting to pursue this financing option should consult a business financing expert who is knowledgeable about this working capital management approach as well as other small business loans.

Even though working capital loans are not as widely available as they were just a few months ago, this kind of small business financing is still in fact obtainable. Since some of the largest providers have stopped making these business loans, the main change for business borrowers is the likelihood that they will be dealing with a different commercial lender. Small business owners will benefit from finding an experienced and candid business financing expert to assist in evaluating realistic options because the most effective working capital financing providers are not aggressively marketing this capability.

As stressed above, when making commercial financing decisions it is becoming increasingly important for business owners to first determine their effective business finance funding options. Because of recent volatility in financial markets, this task is likely to be much more difficult than most commercial borrowers realize. It is advisable to explore commercial finance options that might be necessary if economic conditions change even further even for business owners who are satisfied with their current working capital financing arrangements. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.

Business Finance Training and Effective Business Solutions

Business finance training refers to programs that teach individuals how to handle various financial duties. Finance training is similar to finance tips in that both help business owners make better monetary decisions, but training programs offer a more detailed explanation of finance strategies. Training programs vary in price and can be used by the owners and employees of a business.

The most basic business finance training provide information on budgeting, preparing financial statements, managing cash flow, strategizing, forecasting, improving performance, and applying basic procedures and concepts to more effectively manage a business. These programs are recommended for new business owners to help them understand standard business practices. Once these basic methods are mastered, more specific financial training may be looked into.

Advanced business finance training delves more deeply into a certain financial procedure or concept, usually at a higher cost than basic programs. Advanced programs may teach business owners how to set up effective business models, make decisions based on quantitative analysis, manage and control accounts, practice due diligence, measure productivity, and strategize concerning mergers and acquisitions.

Taking part in any kind of business finance training gives a business owner the resources to make more intelligent business decisions that result in increased productivity and profits. Many different types of courses are available either online or at a specified location. Some programs may even offer the option to train at the business. Taking into consideration the needs and abilities of a business is the key to finding the best business finance training.

A business finance solution generally refers to methods of funding and maintaining the finances of a business. Most solutions involve ways of obtaining working capital, but others also offer ways of protecting and increasing that capital.

To obtain working capital, business owners look to finance solutions that offer funding by several different means. The most common means are loans and financing. Asset-based loans use a business’s assets, such as inventory and equipment, as collateral. A business may also opt for a property loan in order to acquire commercial space. Invoice financing, such as factoring, involves liquidating or selling a business’s accounts receivables in exchange for quick funding. Some businesses look to trade financing to supply their inventory. The business will tell its financer the amount and cost of goods needed, and the financer will pay for the goods. The business then repays the amount financed over a specified period of time.

Most companies that provide business finance solutions also offer ways to protect and increase a business’s capital. Credit protection safeguards a business from daily risks, such as customers not paying on time, so that the business does not suffer incredible losses. This makes it much easier for the business to borrow money in the future, and it protects the balance sheet. A finance solution may also offer business insurance plans that increase the stability of a business. The most common types of business insurance are employee and public liability, car, property, and health insurance. These business finance solutions are designed to protect businesses against potential losses.

Houston Is A Transformed City After Dark

Rewind a decade back and we dare say that if someone suggested heading downtown Houston after dark, there would be many questions. There were not many reasons why one would actually leave the house for downtown.

Now, a decade later, the scene has changed. Everything’s so much more lively and fun downtown Houston. Charter bus, party bus or even luxury limousines are used for bar hopping adventures, bachelor parties or just a fun time with friends and family members. That is the kind of transformation that has seen Houston’s tourism industry growing by leaps and bounds. Tens of millions of people from out of town and foreign countries make their way here all year round. The pleasant year-long weather has a huge role to play for that decision.

A huge financial push in the real estate industry – One of the biggest reasons for the sudden tourism boom is the real estate industry. More people, more fun, more entertainment. Another great transformation is the pumping of funds into maintaining, developing and promotion of some of the largest tourist attractions in the city like the Minute Maid Park, Toyota Center and not to mention world class parks like the Discovery Green Park.

Bayou, where worlds meet – Although the public transportation system in Houston is mostly reliable and affordable, it makes more sense for large groups to make use of charter buses when visiting crowded attractions during the holidays. Wide acceptance of Houston’s growth was encouraging; hence the emergence of places like Bayou Place. Bayou is a vibrant place which was opened up in 1997 and measures, according to official stats, up to one hundred and thirty thousand square feet in total. It is the place where tourist can find all sorts of entertainment, including theaters, malls, comedy shows, restaurants, cafes, and night spots too. During peak periods, parking can be a huge problem and that is when using a Houston charter bus comes highly recommended.

Mosaic – DJing things up – If you are heading over looking for a fun nightspot, then consider Rocbar or Mosaic. These are DJ hot spots, which mean that there is often a showcase or showdown between talented DJs all year round. It is classy and casual at the same time. Big names in the DJ world has made their way here before in the past and who knows, you might get lucky and get to spend the night listening to a popular DJ spinning the songs out for you all night long while you enjoy your drinks.

Things have definitely changed for Houston and it is really more apparent during the night. No longer are the locals considered low-laying individuals with no time for partying, it is now a vibrant city filled with young people looking out for fun things to do too.

Tips on Finding The Right Toronto Moving Company Or Right Toronto Movers To Help You

It is important to find a professional Toronto moving company because the process of moving to a new home or office can be overwhelming. However, contracting a professional long distance moves company can make anyone anxious no matter where you live. You are entrusting your properties to other people after all.

Hopefully, the tips below will help you find Toronto movers that will make your transition to your new house a happy one.

1. If you check for moving companies online, in newspapers, or from radio and TV ads, be sure to get their office address. It is also better to find addresses that are nearer your old place so that you can check on them easily.

2. The distance of your old place, your new place and the location of the moving company’s garage is important because the company will have to consider travel time and gas expenses.

3. Once you visit the mover company’s office, you can check the quality of its facilities. You can find out if it’s moving trucks are in good condition and what kind of packing equipment it uses.

4. A good moving company will not charge you if you ask for estimates. If it is good, its representatives will visit your old place to have an idea of what kinds of furniture and appliances you need to move. This will help the company figure out what kinds of trucks and equipments to use.

5. Your visits to the movers at their office, and their visits to your home will give you a clue on what kinds of employees they have. A good moving company has employees who are respectful of you and your belongings.

6. Ask the long distance mover company about its insurance policies in case one of your belongings breaks or gets lots in the process.

7. Ask them also for discounts and special promos. Some mover companies have non-peak days like in the middle of the week or the month when their rates are lower.

8. Ask them about how they pack your things. What kinds of boxes do they use? How do they protect your things from breaking? How do they systematize and organize your belongings?

It is important to study a moving company’s services from when it gets your things from your old house to when they unpack your things to your new house.

You will know that you have a good moving company when it has good customer feedback, fair rates and professional crew of drivers and movers.

To know if a moving company’s rates are fair, visit and ask several companies about their rates and services and then compare for the best option. You can also ask your friends who have gotten the services of moving companies before, or check for Internet forums about people’s experiences with local moving companies.

In the end, your experience with moving company will confirm your decisions. Did they make your relocation easier? Or did they add more stress to it?