No Significant Financing For Your Business Without Business Credit Scores

Many business owners seeking financing for their business, don’t realize that without business credit scores, their business will never obtain significant financing. Business credit scores function exactly like personal credit scores, and so you have to build your business credit scores up properly before you can seek large amounts of capital for your business from any lending institution. It is nearly impossible to obtain capital from a lending institution without having first establishing your business credit scores.

The question that businesses face is how do they go about establishing the business credit scores that will nearly ensure financing for their business. You have to make sure that all of your lines of credit or any aspect of financing for your business reports to the major business credit bureaus. Without them reporting you will never build your business credit scores up to where they need to be. A good place to start is with five vendor lines of credit, three business credit cards, and one business bank loan.

To properly establish credit scores it often times can take three to six months to get a credit score that is worthy of large amounts of financing in the eyes of the lender. A lender wants to make sure that their loan has the chance of being repaid, and one of the only ways they can justify that is to see if you have established a business credit history with a solid score. This is the same concept as when you attempt to get a personal loan or a car loan. They will pull your personal credit history, and if you have a poor credit history or no credit history you are either denied, or are forced to pay higher interest rates on the loans.

One thing to be wary of is business credit building services that claim they will build your credit overnight. They charge exorbitant rates for their services, which will do you no good. A good rule of thumb to live by is that if it sounds to good to be true, than it probably is.

Make sure that as you go along the process of obtaining capital that you never submit a business loan request from a lender that you are not pre-qualified for. Credit inquiries can kill any business credit scores that you already have. Make sure you avoid this practice of submitting a business loan application to multiple sources. Another thing to be cautious of are these businesses that allow you to store your information in one place, and they will automatically submit your loan application and information to hundreds of sources. This is business finance suicide, and all you will end up with will be a damaged business credit score and no funding.

Financing your business is not simple, and there are other aspects beyond just credit scores that will get you approved. It is highly recommended that you look into a good business finance coach to help guide you along the way.

Working Capital Financing Options To Raise Business Capital

It is no longer unusual to hear about start up and small business struggling with the finances of their ventures. More often than not, this does not stem from a lack of proper planning, and from profits that were never realized. There are simply times wherein business capital is no longer enough to cover for all the expenses needed to keep the business operating. And in times like such, business owners need reliable financial institutions that can offer them the working capital financing that they need. In this way, they will not have to waste a day of operations because they do not have money to spend.

Through working capital financing, business owners can have a good range of options when it comes to raising or increasing their business capital. They can select from options like applying for small business loans, making cash advances, credit card factoring, and opening business lines of credit. These are only some of the few financing options that business owners can resort to during those times when they need additional capital for their business.

Among these options, small business loans appear to remain as the most popular. However, it is not all too easy to qualify for a small business loan. A business must have a good credit history to qualify. And to most small business owners, having good credit ratings can be quite elusive. This is because building business credit requires time and time is something that most start up business owners do not have.

This leads most small business owners to consider other alternatives. A merchant or business cash advance is seen as an easier way of gaining additional business capital. So does business lines of credit and credit card factoring. These options do not require good credit scores. What matters more to these options is for small business owners to have good monthly sales volumes. The method of payment and repayment are also less burdensome. Payments and repayments do not come in fixed schedules. Instead, payments and repayments often come as a small percentage of the monthly sales that the business is able to generate.

You can learn more about these working capital financing options through financial firms near your area. You can also go online to learn more about them. Most financing firms already have online presence and these days, you no longer need to physically travel to the nearest financing office to apply for business capital financing options.

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.

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.

The author has been associated with banking industry for a long time and today he is an authority on micro finance. His articles on business loans, cash advances and credit card processing are informative and make a good read. For more information visit Business loans.

Entrepreneurs Find Personal Loans Can Help Finance Business Startup Expenses

Being short-term loans that assist your immediate cash needs, personal loans can help finance business startup expenses. Typically personal loans are a single payout loan with a high rate of interest. The borrower usually returns the loan with interest in one go rather than paying monthly installment. In general, personal loans are not recommended due to their high interest rates. A borrower may find it difficult to repay the whole debt in a single shot, however, with business startup’s the case is indeed different! Let us see how different finance options can save the day for business startup’s.

Typical Business Start-up Expenses

Once you have decided to start a business you will most likely have a solid business plan that will detail your initial financial requirements. Typical business start-up expenses can be broadly divided into overheads and variable expenses. One thing that remains constant with almost every new business, is that you need some money to purchase inventory, lease a building, start an advertising program and work towards your first sale. Personal loans are extremely useful in financing those overhead expenses that usually occur at the beginning as a one-time cost. Variable expenses are those that continuously occur in the process of conducting a business and are generally tied to sales projections.

For instance, in case of a software business start-up, the administrative costs, licensing costs, initial infrastructure setup cost would constitute overhead costs. On the other hand client visits, traveling for demonstrations etc. would constitute variable costs that will keep occurring every time there’s a potential client and may not be predictable. Also, irrespective of sales, overhead costs will still remain to keep your setup active!

Before you borrow any money, it is vital to have a repayment plan as well as projected business plan, to understand how your cash flow will operate. Once you segregate your expenditure into fixed overhead costs and variable expenses, you need to sort out the expenses that will be one-time events. A business loan or credit line can help with these one-time costs provided your business is able to afford it once projected sales begin to be realized! You need to anticipate all possible scenarios and ensure enough cash flow over the period of few months before you take a personal loan.

Types of Personal Loans

The beauty of this financing, is that it often can be obtained with or without security collateral. A secured personal loan involves borrowing against an asset such as your property. If you default on your repayment, the lender can claim your asset! On the other hand, unsecured financing, does not need collateral, however, the lender generally protects his loan from possible default by charging you a high rate of interest. In the event of a default, the lender may resort to legal channels to recover the amount.

If you are confident of repayment, it is best to go for a secured personal loan wherein you can negotiate a low annual percentage rate (APR) while pledging your property or car or any other asset.

If your business startup requires funding that cannot be met by a single personal loan, you may even borrow more than one loan. The more you expose yourself to the debt scenario, the more financial risk you’re exposing yourself and your business to. It is important to conduct thorough research and prepare for contingencies. It is always best to dig into your own savings or borrow from close relatives if they’re willing and able however, for those that need instant cash and a huge amount at that, a personal loan could be a lifesaver. In fact, if you successfully repay your personal loan within the stipulated time, you could even get a good credit score which in turn will be better for the future of your business!

CIT Group – Retail Financing Business Failure May Mean an Un-Merry Christmas

One of CIT Group’s specialties is providing financing for apparel and furniture manufacturers and other suppliers with a long wait from procurement of supplies to manufacturing to delivery to retailers until invoice payment by retailers. Cash flow and working capital keeps the supply chain flowing. There is much anxiety on the part of retailers about an interruption in the supply chain that would come about as a result of an interruption in cash flow along the value chain. To the suppliers and manufacturers, their very business survival is at risk. The concern for many is how they can continue to meet payroll.

The big year end retail season is fast approaching. The apparel and retail industry is generally one season ahead of the actual calendar season. But months earlier, they are already planning and strategizing on how to best navigate the Christmas holiday. That’s when the majority of retail sales revenue is generated. Now is the time. And the supply chain and value chain needs to be functioning. Business cash and cash flow is crucial.

What is Factoring?

Receivables are business assets, assets which businesses can use to get cash and working capital. With factoring or accounts receivable financing, the business owner sells customer invoices in exchange for cash advance in as little as 24 hours. This is a big improvement over the 60 to 90 days that retail industry suppliers must wait to get paid. Everyone in the supply chain has already had to have sufficient cash flow and working capital to carry them through until their invoices are generated. Then it could be another 60 to 90 days until there is an inflow of money to fuel continued operations.

With accounts receivable financing or factoring the business gets qualified for cash advances by its customers. Factoring companies purchase business receivables in exchange for providing immediate cash to the business owner. As part of the factoring transaction, the factor or funder or funding source has to the right to receive the A/R invoice payment directly from the customer. After the customer pays the funder, the funding source then deducts the discount fee and remits the balance of the A/R money to the business owner.

The Good News

The cash flow industry is in the business of providing cash advances against future assets and cash flows. Invoice or Receivable Factoring is the original and probably the largest cash flow product. While banks are tightening their money and lending criteria, there is still plenty of money in the cash flow industry. Alternate ways of financing business must be considered as the US Government money dries up and the national deficit and debt continues to rise. Not sure that the fiscally fit factoring companies could absorb $42 billion worth of factoring business. Hopefully that theory won’t be tested. CIT Group, Inc is being rescued by private financing.

Can A Franchise Finance Business Loan Be Creative? Here’s How Canadian Franchise Finance Works!

Is it actually possible to get ‘ creative ‘ when considering a franchise finance business loan for you new Canadian role as an entrepreneur in franchise financing? There are some tried and trusted rules we use in the franchise lending area, but a little creativity has never hurt anyone we believe!

If you haven’t considered how to finance your new business in the franchise industry then we feel it’s probably a little too late in some ways, as your ability to finance your business properly we think has a lot to do with the ultimate growth and success of your business. There are very focused lending sources for the franchise area of financing in Canada – the trick of course is to know what they are and more importantly how you can navigate the ‘ maze ‘ successfully.

The reality is that if you have some industry experience in your new business and a proper finance plan you have a much better chance of financing your business properly.

So, who can you turn to in terms of creativity and resources for franchise financing? Clients are amazed when we tell them the most creative partner in franchise financing in Canada is none other than the Canadian government!How could that possibly be? Simply because a program guaranteed by the government and administered by the banks could not be any more creative than this.

The program is the ‘BIL’ loan program, and it provides you with financing up to 350k for your new business. Are the terms onerous? Hardly! The essence of the program is a 5-7 year term loan, with great rates, limited personal guarantees, and some other elements of flexibility. If that isn’t creative then we don’t know what is!

Naturally all the creativity in a business loan of that type for your franchise finance scenario should not be reliant on just one lender – the other lender is someone you know very well. Yourself. That’s simply because when you look at the total financing of a franchise in Canada the two components are simply debt (the funds you have borrowed) and the equity, or money you have put in yourself. These equity funds, i.e. your commitment to the business, typical come from savings, the proverbial ‘ friends and family ‘ support, and investments or collateral that you have available.

Getting back to our key subject of creativity, our above noted BIL loan program only covers certain aspects of a franchise finance scenario. You can augment that loan with flexible equipment financing that has low down payments and extended amortization terms, as well as, in some cases, a working capital term loan.

We never forget to remind clients that the franchise financing plan is a two stage process, acquiring the business, and making sure they have some capital and funding to operate and grow their new business.

In summary, you can be creative when you are looking for info on how Canadian franchise finance works. You need knowledge on what funding sources are available that are specialized to the franchise industry, and assistance in executing a proper financial plan. Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in maximizing that creativity!

Top Carriers Dropping Medicare Advantage Private Fee-for-Service Plans

Top health insurance carriers are dropping their Medicare Advantage Private Fee-for-Service (PFFS) plans, according to recent announcements by some health insurance providers, including Coventry and WellCare. A PFFS is a Medicare Advantage (MA) plan that is available through a state licensed, risk-bearing entity, or a PFFS Medicare Advantage Organization (MAO).

As a result of PFFS coverage drops by Coventry and WellCare alone, more than 500,000 Medicare beneficiaries will have to find new coverage.

Currently, Medicare Advantage plans receive government subsidies so that they can offer beneficiaries more benefits than simple Medicare plans. Medicare Advantage plans are offered to Medicare-eligible individuals by private health insurers. However, analysts are expecting the reimbursement rates for these PFFS programs to fall by approximately five percent, making them less profitable for insurance carriers.

How PFFS Currently Work

PFFS are popular amongst consumers because they allow Medicare beneficiaries to choose their own healthcare providers, rather than having to select their providers from a limited number of in-network of Medicare-approved providers. Beneficiaries can see any provider, as long as the provider agrees to charge based on the PFFS fee schedule. This fee schedule is the same as the Medicare schedule.

PFFS MAOs have yearly contracts with the Centers for Medicare and Medicaid Services to provide Medicare beneficiaries with their Medicare benefits as well as additional benefits that a company opts to provide. Essentially, the PFFS provider pays for healthcare instead of Medicare when a beneficiary has such a plan.

The main benefit (which makes PFFS so popular) is that individuals who join PFFS MAOs are not required to use providers within a network and can, therefore, see any provider as long as the provider is able to receive payment from Medicare and the PFFS MAO.

More Changes to PFFS Plans

In addition to the decreased government reimbursement amount for PFFS plans, PFFS plans will be required to develop healthcare provider networks beginning in 2011. The change will force PFFS beneficiaries to select their healthcare providers from within the plan network, limiting their freedom to see providers that they prefer.

Experts predict that more healthcare insurance providers will follow Coventry and WellCare by dropping their PFFS plans in coming months. Individuals should contact their healthcare insurance providers if they are currently enrolled in a PFFS or are considering enrolling in a PFFS to get more information about how their provider will respond to the upcoming PFFS changes.

More Information About Medicare Advantage Plans

Medicare Advantage plans are specific types of Medicare plans that are in place to cover the cost of healthcare related expenses for Medicare participants. These plans are similar to traditional Medicare plans in that they provide financial support for individuals seeking medical or health-related services. However, the Advantage plans generally have more benefits and lower copayments than many other types of Medicare plans. In order to have a Advantage plan, Medicare participants need to have Medicare Part A and Medicare Part B plans.

One major difference between Medicare Advantage plans and other types of Medicare plans is that Medicare Advantage participants may need to see only doctors that are members of the Medicare Advantage provider plan. However, plans may allow participants to use a wide variety of services, including Medicare Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service providers, and Medicare Special Needs providers.

Medicare participants should also be aware that Medigap policies do not provide gap coverage for individuals that participate in the Medicare Advantage program.

South Carolina Medicare Advantage Plan Changes – Should I Stay Or Should I Go?

South Carolina Medicare Advantage plans, just like the Medicare Advantage program nationwide, are poised for some major changes in 2010 and beyond. Does this affect you and, if so, how? If you have a Medicare Advantage plan currently, should you keep the same plan, find a new MA plan or return to “original Medicare”?

The Advantage plan program is an alternative to “original Medicare”. With this program, Medicare beneficiaries enroll with a private company for the management and administration of their Medicare benefits. Since the program’s inception, it has been controversial in some circles, as the Federal Government pays the private companies a large amount of money per person, per year to manage each individual’s Medicare benefits through the private company.

In early 2009, the Obama administration, in conjunction with the Centers for Medicare & Medicaid Services (CMS), announced plans to overhaul the way these plans are handled. These changes will affect the companies that administer the private plans, as well as those enrolled in them. Some of the major changes include:

As a large part of an announced $316 billion Medicare funding cut, funding to the private Medicare Advantage plans will be reduced. To go along with this, there will be a competitive bidding process for these private plan contracts.
Annual out-of-pocket expenses will be required to be capped in 2010. The anticipated cap amount is $3,400.
Plans with 10 or fewer enrollees in a certain area, or county, will be required to not offer plans in that area.
CMS projects that 10 million Medicare Advantage customers will face monthly premium increases of $40-70 per person in 2010. To go along with the higher premiums, many of the South Carolina Medicare Advantage plans will also be reducing services/coverage to compensate for lower reimbursement rates from the Federal Government.
Starting in 2011, the private MA plans are required to develop networks for their coverage. Currently, the private-fee-for-service (PFFS) plans are not required to have networks. This elimination of the PFFS plans as they are now is already having an impact for 2010. Coventry Health Care, Well Care Health Plans and Health Net all have announced the end to their PFFS plans as of 1/1/2010 – between these three companies, this affects 428,000 people nationwide.
Without a doubt, it is apparent that the marketplace for South Carolina Medicare Advantage plans is changing. Each individual must look past any pre-existing notions of the differences in “original Medicare” and the MA program and re-examine how these plans are going to work for them moving forward. While some may find it advantageous to stay with the government’s Medicare Advantage program, even after all of the changes; however, others may find more reasonable and comprehensive Medicare Insurance coverage elsewhere.

Cleanliness Drinking With Water Purifiers

With shortage of drinking water nowadays, believing any brand for clean water is even an assignment. Water Purifiers are big helps, and now it is especially vital to know about filtration methods and water purifiers that are accessible in the market to ensure that we are drinking clean water.

What does a water purifier do?

A water purifier evacuates overabundance salts; suspend particles and jam fundamental minerals and vitamins. To start with it retains the crude water that is sullied and channels all contaminations and afterward apportions unadulterated water. A few purifiers utilize chemicals and utilize electrostatic charge to murder infections.

With such a large number of water purifiers in the market it gets hard to choose which is great and which is definitely not. Considering every one of these elements, you should search for some direction. Here we let you know how to purchase a water purifier. Perused on.

Sorts of water purifiers

Water purifiers come in 2 classifications, similar to electric and nonelectric that suits your necessities. The non-electric purifiers are moderate and don’t utilizes any UV strategy.

1) Electric water purifier

These water purifiers are associated with pipelines with a mix of residue channels and initiated carbon. They utilize pipeline water and can’t store water. These are costly than the non-electric ones yet they are advantageous to utilize and guarantees safe drinking water.

oActivated carbon channels: The water in this purifier is ignored the enacted carbon surface, while the pollutions are attracted to the surface of carbon channel. It helps in expelling natural mixes, chlorine and change the essence of water.Electricity is not the necessity for this sort of channel but rather this should be traded for better water decontamination.

oCandle channels: In this water purifier, water is filtered through a flame with every moment pore, any polluting influence that is bigger than pores get shut out. This is the least expensive purifier and does not require power.

What you have to deal with is that the candles should be tidied up to abstain from stopping up of pores created because of polluting influences. This purifier likewise should be supplanted regularly.

oUV water purifier:In this innovation, water is presented to UV beams that slaughter 99% of living beings display in it. It pulverizes every one of the pathogens however it doesn’t change the essence of water. Most channels utilize UV innovation with actuated carbon that evacuates chemicals.

oReverse Osmosis (RO) Filters:The RO framework offers the multi-arrange filtration that joins the dynamic carbon and molecule filtration. In this framework, the faucet water is made to go through little measured pores that different minerals and small scale organisms.It enhances the essence of water and they are generally utilized where the issue with water is the high measure of broke up minerals.

2) Non-electric water purifiers

oOnline: These purifiers are versatile and require no power. It is made of plastic, while the channel light has a gum channel that ought to be changed each month.

oOffline: These are known as water channels and needn’t bother with power. These refines are a blend of dregs channels and actuated carbon channels. Generally utilized where there are odds of water deficiency.

Elements to consider

1) Body:

The body of the water purifier ought to be tough and appealing so it suits your kitchen. The diverse sorts of material utilized are aluminum and ABS. You ought to likewise consider components like nature of water and relying upon the variable where you will gather the water.

2) Convenience: Depending from where you will gather the water, select an on the web and disconnected framework.

3) Life Span

Numerous sorts of water purifiers, basically carbon channels contain cartridges that should be supplanted. A cartridge’s life expectancy is known as its ability that implies the measure of water that can course through it should be supplanted. The RO water purifiers have an extraordinary film that ought to be supplanted from each 2-3 years.

4) Budget

A water purifier can cost you as less as Rs.1800 and as high as 60000. Highlights like show board, rechargeable batteries and a high stream rate are accessible as you pay more. Best purifiers are from driving brands like Aqua watch, LG and Eureka Forbes.

Primary concern

Water is vital forever, however it can contain debasements like microscopic organisms which if ingested can bring about waterborne illness. The perfect water purifier ought to pulverize all pathogens and channel all polluting influences like over the top minerals. In this way, pick a water purifier guarantees safe drinking water for you and your family. Drink clean water and remain solid.