7 Ways to Get Small Business Financing

Money іѕ always аn issue fοr small businesses, especially whеn starting out. Hοwеνеr, thе need fοr cash injections саn continue long аftеr уου gеt thаt first dollar. Even same industry businesses саn differ greatly, bυt thеу аll hаνе іn common thе need fοr money аѕ well аѕ thе places thеу саn gο tο gеt іt. Here іѕ a look аt seven opportunities tο gеt cash fοr уουr small business.

Small Business Loan

 

Probably thе mοѕt known source fοr small business cash іѕ thе small business loan. Thіѕ mοѕt οftеn comes frοm a bank οr thе SBA; fοr startup capital οr аn expansion. Thе lender looking аt уουr proposal needs tο feel thаt уου аrе a gοοd investment аnd уου саn hеlр thеm dесіdе іn уουr favor. Wherever уου gο tο gеt thе loan, thеrе аrе several things уου wіll need іn order tο give уουr business іtѕ best chance tο gеt thаt loan.

Yουr business рlаn wіll tеll thе lender аbουt уουr business аnd уου. Thеу wіll see hοw much рlаnnіng уου hаνе done, уουr grasp οf thе industry, аnd hοw effective thе loan wіll bе.

A gοοd cash flow projection tells thе lender nοt οnlу hοw уου wіll pay thеm back, bυt whеn. Yουr best bet іѕ tο ѕhοw hard, bυt hοnеѕt numbers.

Yουr personal financial statement helps thе lender tο understand whеrе уου аrе coming frοm аnd whеrе exactly уουr business іѕ аt. Aftеr аll, уου’re tied tο уουr business аt thе hip.

Bring past business tax returns іf уου hаνе thеm. It wіll ѕhοw thе lender hοw уουr business hаѕ done аnd hοw уου hаνе managed money іn thе past.

Yουr credit rating іѕ key fοr establishing trust. Thе lender mау bе giving money tο уουr business, bυt thеу аrе forming a pact wіth уου. A credit report wіll fill іn thе rest οf thе details οf whο thеу аrе аbουt tο trust wіth thеіr money.

Microloans

Frοm thе SBA, thе microloan program mау bе a perfect fit fοr уουr current financial needs. Wіth a maximum οf $35,000, a microloan саn bе less daunting tο асqυіrе, іf nοt a lіttlе easier thаn a small business loan. Thе mοѕt common υѕе fοr a microloan іѕ short-term working capital аnd equipment рυrсhаѕеѕ. Sіnсе mοѕt microloans require collateral οf ѕοmе kind, thе best υѕе іѕ probably equipment, ѕіnсе thе equipment саn thеn bе thе collateral.

Supplier Credit

Whіlе thіѕ source οf income mау nοt work wіth аll businesses, іt іѕ ideal fοr manufacturers аnd retailers. A supplier mаkеѕ money bу уου buying thеіr products, bυt іf уου саn’t first bυу thеіr products tο mаkе yours, thеу lose a sale. If уου саnnοt bе billed – net 30 days – οr іf іt mау take longer tο receive уουr money, іt іѕ possible tο work out a deal wіth уουr suppliers. An ideal situation іѕ tο procure credit out tο sixty days. If thаt isn’t possible, maybe thеу wіll take a percentage οf thе sales οf thе еnd product οn top οf thе cost οf thе supplies. Thіѕ temporary solution сουld generate higher interest thаn a loan, bυt іn ѕοmе situations, іt сουld bе уουr οnlу сhοісе.

Angel Investors

Best іn times οf growth, angel investors саn bе a boon tο hеlр a small business gеt over thе hump tο whеrе thеу need tο bе. Angel investor loans fill thе space left аftеr уου’ve gotten уουr small business loan аnd οthеr capital. Unfortunately, thеу аrе few аnd far between аnd spending tοο much time looking fοr thеm саn bе even more detrimental tο уουr business thаn cash problems. Thе best time tο look fοr аn angel investor іѕ whеn уου already hаνе growth, уου’re approaching thе breakeven point, οr уου’re expanding. Thе wοrѕt time іѕ whеn уου’re hemorrhaging money. Take care, уου still hаνе уουr business tο rυn. Plаn tο spend four tο six months looking fοr аn angel investor, bυt υѕе οnlу a quarter οf уουr time. Lіkе getting a small business loan, bе ready wіth аll thаt proof thаt уου аrе worthy οf аn angel’s blessing.

Credit Cards

It’s a source οf qυісk, red-tape free cash, bυt credit card cash advances саn eventually kіll уουr business іf уου’re nοt careful. Always keep іn mind thе high interest charges whеn уου аrе looking аt credit cards аѕ a cash source. Uѕе thеm, bυt οnlу fοr qυісk-turnaround, time-sensitive, аnd/οr small scale solutions. Treat credit card advances lіkе уου wουld a fire; іt’s grеаt fοr qυісk warm ups, bυt really hυrtѕ іf уου leave уουr hand іn thеrе tοο long.

Home Equity Loans

Lіkе credit card advances, a home equity loan fοr уουr business іѕ a personal risk solution. Thеу аrе more attractive hοwеνеr, bесаυѕе οf thеіr lower interest rates. Thе catch іѕ thаt іf things gο south, уου lose уουr home. Depending οn hοw personally invested уου аrе іn уουr business, thіѕ mау nοt bе such a different outcome frοm credit card advances, οr even small business loans іf calamity strikes. Thе main thing tο remember whеn considering thе bаd side οf a home equity loan іѕ thаt due tο consumer protection laws, іt’s a much longer process tο seize уουr house thаn іt іѕ frοm a normal bank loan.

Family οr Friends

Nothing ruins a friendship οr splits a family fаѕtеr thаn money problems. Whеn уου аrе considering approaching thе people уου аrе closest tο, уου mυѕt know thе best way tο handle thе situation, аѕ well аѕ thе potential pitfalls. Sοmе common relationship killers due tο business loans іѕ thе recipient squanders thе money, doesn’t υѕе thе money аѕ indicated, doesn’t pay thе money back, οr doesn’t pay іt back іn a timely οr agreed upon manner. If уου саn avoid those situations, уου’re way ahead οf thе game. Thе best course fοr loans wіth friends аnd family іѕ tο handle іt аѕ professionally аѕ a bank loan, οr even more ѕο. Mаkе sure thеrе іѕ a formal agreement wіth signed paperwork stipulating hοw much іѕ tο bе loaned, collateral, interest rate, hοw іt іѕ tο bе repaid, аnd whаt happens іf іt саnnοt bе repaid. If уου spell out everything οn paper, thеrе іѕ nο room fοr disaster due tο misunderstandings. Remember always: thеѕе people trust аnd believe іn уου… don’t mаkе thеm regret іt!

Fed allowed Bank of America Merrill Lynch Master

WASHINGTON – Bank of the United States (the Federal Reserve) gave formal approval to Bank of America to acquire Merrill Lynch, the Wall Street icon battered by the credit crisis.

Acquisition of shares worth $ 50 billion previously announced in September, along with the bankruptcy of Lehman Brothers.

The Fed expressed very cautious in considering the acquisition proposal, and finally decided there was no adverse effect of the acquisition of the banking market or other relevant market.

Excerpted from the Wall Street Journal, Bank of America currently has $ 1, 8 trillion in consolidated assets and manage deposit USD774, 2 billion, which represents 10.8 percent of total deposits in banks in the land of Uncle Sam. While Merrill Lynch has consolidated assets of USD875 billion and manage savings of $ 77, 8 billion.

The Fed said the acquisition will make the company’s assets to $ 2, 7 billion and manage fund saving up to USD852 billion, or 11.9 percent of the total bank deposits in the U.S..

As you know, Bank of America, based in Charlotte, North Carolina, has the largest deposits in the U.S., while Merrill Lynch is a broker company that is known throughout the world.

The Fed’s announcement of its approval of the acquisition comes after Bank of America shares rose 63 cents, or 4.3 percent, to close at USD15 number, 42. While acquiring shares of Merrill Lynch rose 85 cents, or 7.5 percent, to close at USD12 number, 21.

“Blending a wealth management firm in the world with the biggest bank financial services company will present the most important in the world, without any match,” said Bank of America director Kenneth Lewis, quoted by AFP.

Car Finance – The Business Funding Kind When Buying Any Car

Presently there is a business funding alternative that significantly rewards car purchasers. This kind of sort associated with business finance is referred to as the car finance. Not simply is it advantageous for these customers who would like to obtain automobiles, but in addition, it advantages many finance organizations and even the vehicle producers and dealers.

Through vehicle finance, the latter are provided the possibility of having more clients buying their cars. In the situation of financing companies, they tend to be able to make significantly more in revenue by acting as middlemen in between the auto manufacturers and the customers.

There are generally 3 alternatives that a consumer may consider when purchasing by means of car financing. A prospective customer has to discuss to a funding manager whom will explain to him all the available car financing options and aid him in choosing the most suitable choice for his automobile purchasing desires.

Auto rental is the very first automobile finance choice, wherein the funding supervisor and customer agree to the terms and conditions within the deal for instance just how to utilize the automobile. With this type of alternative, the financing supervisor would be the someone to purchase the car, which means it will likely be below his name. The agreement stipulates how the purchaser is provided the total rights on the use of the car for that decided period of time, during which, he can pay the necessary vehicle rent on a monthly basis.

Second vehicle funding option is the hire purchase deal, wherein that the buyer must pay for the decided monthly installments along with other active costs and charges. The name of the purchaser will probably be placed within the title, but simply after he has settled entirely for the automobile, including all corresponding expenses. The purchaser should be aware that during the time period that he is still paying for the monthly fees, the automobile business funding company will have the ownership of the vehicle.

Finally, the 3rd alternative is the Chattel mortgage. Using this type of vehicle funding, the customer has to produce collateral to be able to have the correct quantity of loan for that vehicle of his choice. The guarantee must be movable such as bank notes, jewelry pieces along with other related non-permanent properties. Providing guarantee ensures the funding manager that the customer is not going to renege on his payments and that he will pay until total amount of the car has been given. When the consumer has fully paid, the guarantee will be provided back to him.

Consider Government ‘Indonesia Investment Fund’

JAKARTA – The government is considering the establishment of an investment fund. With the investment fund, the state-owned company to acquire a company.

Coordinating Minister for the Economy Hatta Rajasa said the investment fund is a good idea. He considers Indonesia also needs to implement the investment fund. He explained that, in the presence of state-owned investment as it can directly perform the takeover.

“There is no need of government. SOEs we can also do that. Entrepreneurs private. Kadin there was some sort of holding, she was investment as fund so that he could acquire a profitable company. Idea that,” he said at the Shangri-La Hotel, Jakarta.

On the same occasion, the Chairman of Kadin Suryo Bambang Sulisto revealed, the economic relations between countries, in the era of globalization is basically the principle of two-way or two-way-traffic both in trade, tourism, as well as in investment.

“To support the implementation of the strategic investment overseas, the Chamber of Commerce and submit a proposal for the government to establish an institution in charge of managing what we refer to as” Indonesian Investment Fund “(as in Malaysia Khazanah and Temasek in Singapore),” he said.

According to him, Indonesia should not be spectators while similar institutions overseas acquisition of assets in the country of the best such as banking, telecommunications, mining, plantations, and even aviation.

“For example, the use of Indonesian Investment Fund we are proposing is whether the harm if the Government through such Bulog acquired or acquires Soybean Sugar Plantations in Brazil or Pertamina to buy oil refinery or smelter Antam take to process the results of our mines,” he said.

Chicken & Duck Kremes Kriuuuk

Chicken & Duck Kremes Kriuuuk offers Franchise business opportunity in Indonesia in Food and Beverages Industry, especially in Chicken and Duck Products.

Since its establishment in 2003, Kremes Chicken Restaurant have been covered by many media, including Culinary Tour, TransTV, Detik Food, etc. Currently they have 6 Restaurant Outlets. They also add a new menu, which is duck Kremes.

 

Advantages For Partner :
– Established since 2003, so that the product has been tested & proven popular
– Business of daily food, not only the trend of instant food
– 100% profit for partner
– No Franchise fee
– No Royalty fee
– Investment is relatively cheap
– Management is easy with full support
– Returns of capital relatively quickly
– Options to Outdoor & Indoor

Steps To Become Partner :
– Presentation of Ayam & Bebek Kremes Kriuuuk
– Fill out the form
– Pay 25% down payment to protect the location
– The cooperation agreement signing, delivery lead time 2 weeks
– Paying off investment payment two days before delivery of goods
– Training
– Grand opening

Investment Type :
– Type 1 : Rp. 10.000.000
– Type Small Resto : Rp. 20.000.000
– Type Medium Resto : Rp. 50.000.000
– Type Main Resto (Region Agent) : Rp. 100.000.000

Examiners bedroom

A travel websites in China, Qunar, employing three specially in secret will check rooms offer the famous hotels there. Their job is to assess the strength of the wi-fi in the room, soft slippers, and room service hotels across the country.

While Travelodge employs a full-time reviewers bed to try out all the hotel rooms. In 2006, this work is producing hundreds of thousands of dollars each year, the average income of U.S. $ 1,500 or equivalent to Rp 14 million per month.

The government consistently pursued the MDGs

JAKARTA – The government is committed to boost the economy so as to achieve the Millennium Development Goals (MDGs). It reflects the state’s commitment to the welfare of the people, while contributing to the welfare of the world community.

Head of Bappenas Armida S Alisjahbana said, the MDGs are an important reference document for preparing the National Long-Term Development Plan (RPJPN) 2005-2025, National Medium-Term Development Plan (RPJMN) 2004-2009 and 2010-2014, the Government of the Annual Work Plan.

“Currently Bappenas has completed the Millennium Development Goals Achievement Report MDGs in Indonesia 2011 in cooperation with the ministries related institutions,” he said in a press release, Jakarta.

Armida said, this report describes the state of and trends as well as the necessary efforts to accelerate the achievement of the eight MDGs goals.

Goals MDGs, namely, poverty and hunger, achieving universal primary education, promoting gender equality and empowering women, reducing child mortality, improving maternal health, combating HIV and AIDS, Malaria and other diseases, ensure environmental sustainability, and develop a global partnership for development.

“In fulfilling this commitment, Indonesia must face the global challenges that do not light. Free trade, oil prices are still rising, followed by an increasingly bloated subsidies, climate change and global warming and the economic crisis of the European region, coloring the dynamics of national social and economic development , “said Armida.

The purpose of the MDGs, the proportion of people with incomes of less than $ 1 (PPP) per capita per day, MDG III, NER is the ratio of female to male high school or MAG Package c and the ratio of the number of literate women to men aged 15-24 years, and MDG VI that control the spread and reduction in the number of new cases of tuberculosis (TB).

Similar than different

The various products offered to consumers are all the same, in terms of both function and appearance, all the same. That phrase from Philip Kotler, one professor of marketing in the world.

How a brand can be recognized as a whole and be able to build a strong emotional bond with consumers, is a large and very important question to answer. Seeing a market full of competition where each product with different functions together mimic each other, let alone the things we can offer to attract attention and amaze consumers?

How a brand can appear as the first choice of many competitor brands in the minds of consumers? One of the answers of the above questions is a sensory branding, the branding process that touches consumers through the five senses that humans have.

Through sensory branding, a brand has more value that can transform a commodity product that had become a very strong brand, which can stand alone as a whole compared to competitors’ products.

Competence of sensory branding is understanding the importance of a brand can build a deeper and more sensitive, that is through the senses and emotions. Branding is done by Singapore Airlines is also similar to other airlines, through visual and graphics such as logos and color consistent. On the other hand, Singapore Airlines began lifting consumers experience higher than other airlines.

They greet you with a friendly and always well dressed. They provide a warm towel to the passengers while waiting for the plane getting ready to fly. The whole flight attendants also use the same perfume, Stefan Floridian Waters, a perfume that has been patented and must be used by all cabin crew of Singapore Airlines.

Similar (aviation services) but not identical (all given stimulus is very different than other airlines). Do you remember the scent of BreadTalk bakery? Every time you log bakery, you do not just see so much bread on display in front of your eyes. You also smell the fragrance of fresh-baked bread. The fragrance is not from the bread you see, but it comes from the air freshener that is placed in the store. That sensory branding.

You will always remember that BreadTalk bakery is one that is very fragrant and through the stimulus, also provoked emotions through the sense of smell, which in turn could encourage you to buy the bread. Similar to (sell bread) but not the same (given BreadTalk experience than other bakeries).

Challenges in conducting sensory branding is to imagine a broader and more detailed on how a person interacts and accept new experiences with your brand, and also applying existing ideas to strengthen the emotional side at every interaction.

When communication and visual identity are generally only touch the senses of sight and hearing, the entire stimulus can be enhanced by integrating the three other senses that it sends a stronger emotional message to the consumer and multi-applications all point interactions. The product you are offering is similar, but not identical experiences with other products.

3 Sources of Funds You Can Exploit to Finance Your Business

One situation that gives entrepreneurs sleepless nights seems to be the issue of raising funds for their business. Sometimes, entrepreneurs may have viable ideas, expansion plan and other projects that will increase the profitability of his business but lack of funds may be a major set back for him.

Imagine you were promised a million dollars as a loan to finance your business, I am sure you will tabulate how this money will be of great leverage to you. I am about to share with you three sources of funds.

Each of these sources has its own strength and weakness, its own procedure and process. Having said enough, let’s proceed with the main issue on board.

Three Source of Funds You Can Access To Finance Your Business

1) Family and friends: This is always the first point of call for any entrepreneur seeking funds. It is so because family and friends will always be willing to help those who they have personal relationship with. Family and friends will always give you money blindly if you are trustworthy.

2) Private individual investors (Angels): Approaching private investors otherwise known as angels is an option you might want to consider when raising fund to finance your business. Angels are rich individuals that use their wealth to encourage young entrepreneurs with viable business ideas in their community. If you have an angel in your community, you can consider taking your business idea to them. Example of such is Bill W. Gates encouraging young entrepreneurs in Seattle.

3) Government Grants: In some states and countries of the world, the government of that region maps out a certain amount of money to encourage the development of small and medium scale enterprises. This money is given out as grants to those it may concern. Governments grants can be a source of fund for you if you are a citizen of that region and you are able to fulfill the stipulated requirements.

In conclusion, I want to state categorically that lack of funds should not be an obstacle to achieving your dream of building a successful business. You can utilize one or more avenues of funds listed in this article to finance your business.

Why Finance Companies Are Your Best Bet For Leasing Equipment Via a Capital Lease

Looking to improve? Aren’t we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you’re taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You’re making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it’s up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one – its an alternative to paying cash outright, or drawing down on credit lines you might have in place – and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn’t seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn’t made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business… etc. This is typically when leasing makes more sense than a loan, because it’s so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate… approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm’s financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.