The Easiest and Most Successful Ways to Finance Your Business

In order to succeed as a business you need a definitive and solid understanding of your business’ finances. While many new small businesses are often times financed out of, you the owner’s pockets, most of the others need some extra funds from other sources in order to get off the ground. The truth is however, you need to be smart about your choices.

You need to be selective and pretty keen when it comes to finding finance for your business. A few wrong choices and you’ll find yourself along with your business in a lot of trouble. There are several methods to finance your business especially for small businesses. Here are five places where you can find finances for your business:

  • One way to finance your business is through a business loan. Try researching the The Small Business Association for any loans available for what you are doing. They are one of the best sources of information for financing a business. Of all the sources of funding on this list, a loan will require to spend a lot of time and energy to do the legwork for it but it definitely will pay off in the long run. Make sure you have a well-written and clearly defined business plan in order to expect to be approved.
  • Have you thought about possibly utilizing your home’s equity? Obviously this only pertains to those of you who own a house but it is a viable option if you do. You basically use the equity of your home in order to finance your business and allows for a tax deduction on the interest paid. Many savvy business owners use the combination of this in order to get the business loans discussed earlier. The only downside is that the security of your home ownership is now tied into the business’s success. If the business fails, you can lose your home.
  • Another option often overlooked is the possibility of person to person lending. There are numerous personal investors out there looking to provide the appropriate funds in order to see a return on their investment. Some websites and businesses deal solely on brokering these types of deals. You can also approach friends and family members for money as well.
  • One of the hottest trends in business finance is the use of investment financing. This can found in the form of venture capital firms and business partners looking to make an investment with the hope of receiving a return on it down the road. The only problem is that finding an investment group can time consuming and the process is sometimes not that easy. You even run the risk of giving up a percentage of ownership to the investor.
  • The final option for you to choose from is the use of business credit cards. Many financial institutions will approve business with a credit card but it depends on a number of factors such as the amount of financing you need. I would only recommend this choice of financing is your business can afford to pay the high interest rates that come with these cards.

The Difference Between a Financial Advisor and a Registered Investment Advisor

According to a survey performed by the Security and Exchange Commission, most individuals are not aware of the differences between a financial advisor and a registered investment advisor. There are several key differences though, and it is important for anyone placing their trust and hard earned cash in the hands of one of these advisors to be aware. If you are considering seeking the counsel of a financial planner or investment advisor, here’s an explanation of the differences between the two.

The Financial Advisor

A financial advisor buys and sells securities on behalf of his or her client. They may set up retirement plans for individuals, or 401(k)s, IRAs, or other types of and pension programs for corporations. Financial advisers may also offer stocks, bonds, mutual funds, and assist with end of life wealth distribution plans.

 

Financial advisers have detailed knowledge in accounting, finances, and an understanding of the way the market works. Other responsibilities of the financial advisor include:

  • Instructing clients on investment opportunities
  • Keeping up with the financial market
  • Assessing the risk in an investment
  • Helping clients cope with the loss of an investment

These advisors may obtain additional certifications and continue their education in order to serve their clients better and obtain more knowledge about the ever-changing financial market.

Financial advisors, wealth managers, investment analysts, and other similar titles are often paid by receiving commissions directly related to the financial products they advise clients to purchase. Financial advisors may also charge fees for portfolio management. This can be a flat fee or a percentage of the value of the client’s investments.

The Registered Investment Advisor

A registered investment advisor has many of the same job duties as a financial advisor. However, there is one key difference between the two, and this difference can mean a lot to potential clients who are seeking help with their financial investments. This difference is what is known as fiduciary.

Investment advisors are registered and governed under the Investment Advisors Act of 1940. While some financial advisors may be simply working to push financial products to earn a commission, registered investment advisors are held to a much higher standard. Being fiduciaries, and held to a fiduciary standard, a registered investment advisor (RIA) is required to place the best interests of the client ahead of their own or the interests of any brokerage firm. RIAs avoid conflicts of interest by charging a flat fee instead of earning commissions on products sold.

When choosing between a financial advisor or a registered investment advisor, the best way to do so is by asking for a fee disclosure. If your financial advisor earns commissions and bonuses from the sale of mutual funds or other financial products, they may run into conflicts which could skew the advice provided to clients.

A registered investment advisor, held to the fiduciary standard, avoids these conflicts by setting rates according to the work completed, not according to product sales.

When it comes to protecting your wealth and your financial future, the all important first step is to know who you are dealing with. Sound, impartial financial advice is key. Who are you listening to? Is your wealth manager a financial advisor or a registered investment advisor? It may be time to find out.

LPS: The Solid Indonesian Banking

The economic crisis in 1998 has hit the Indonesian banking. Some banks even liquidated since the crisis. However, Indonesian banks are now showing better resistance to the crisis.

“Bank Indonesia can be said to be one of the best in emerging markets,” said Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Budiargo Heru, in his speech in LPS birthday party, at the Ritz Carlton, Jakarta.

Heru said the better assessment of growth performance seen banks are still able to maintain performance during the global economic conditions are uncertain.

“The resistance of the Indonesian banking sector is still good enough that can be said indicated by LPS Banking Stability Index which is still in the normal category,” said Heru.

Heru said, because the condition of both the LPS is committed to continue its efforts to keep the banks in Indonesia to stay healthy. “So we believe that close monitoring and strict disciplinary action from the regulator is still very necessary,” he said.

House of Ristra – Beauty Salon

House of Ristra provides Franchise in Indonesia in Beauty Salon Industry. House of Ristra is a centre of comprehensive hair care, skin care and beauty care. With many skin care specialist, beautician and doctor consultation facilities.

 

House of Ristra Services
– Skin Care
– Hair Care
– Therapy
– Ristra Beauty Boutique
– Ristra Skin Care Class

Franchise Investment
– Initial Investment : Rp. 345 Million (including franchise fee)
– Ristra Clinic : Rp. 195 Million (including franchise fee), excluding place
– Franchise Fee : Rp. 100 Million, Ristra Clinic : Rp. 50 Million
– Royalty Fee : 5% from gross margin / month
– BEP : around 2 years

House of Ristra already have ISO 9001 vs 2000 certification and Good Manufacturing Practice (GMP) – Certified Company.

Rural Finance and Rural Credit

In a densely populated, metropolitan landscape it can be easy to forget that the majority of India is rural. Finance companies have recognised the distinctive needs of pastoral India and designed schemes exclusively for this sector.

Rural finance is a line of credit specifically intended for the requirements of the agricultural industry. Ranging from mortgage assistance to land development and farming equipment, these credit plans are a significant aspect of rural and semi-urban support. In a country like India, where agriculture continues to play a central role, farming finance is a service closely related to the continued progress of the country.

A number of banks and finance companies have begun to specialise in offering credit to farmers. Appreciated as a key impetus in poverty reduction, this type of support can greatly assist regional development and growth. The creation of a business model that takes the unique needs of non-urban India into account, along with the unique challenges, is the key to success for companies working within this field.

The customer seeking rural credit is often at a lower position on the economic scale. Agricultural assistance must concentrate more on future earning power than the borrower’s current position. As with any loan, the lender should reasonably demonstrate a capacity to repay the amount borrowed, but in the case of credit for farmers, providers are often dealing with lower income groups. Understanding this customer is essential.

Finance in this sector has the added benefit of supporting further work in regional areas. As banks and financial services continue to extend their services into rural India they are generating employment in the vicinity. This employment ensures that customers can relate to the local face of the institution. It also represents a significant basis for skill development.

The conditions surrounding rural business are never constant. Ruined crops, bad monsoon seasons and natural disasters are just some of the ever present, largely uncontrollable factors. Those offering services in this area must commit to supporting their customers through both turbulent and growth patch of time. If this can be achieved, rural finance has a huge market to work in.

Finance Companies In Orlando, FL – The Top 10 List

Can you live without Finance? I can bet you can’t. Here is a Top 10 of Finance Companies in the Orlando, FL area. This list was compiled and ordered by how frequently the Finance Companies’ information is kept in people’s digital address books. The Finance Companies that are used more frequently are stored more frequently. The No.1 Finance Company on this list has been stored the most amount of times by Orlando residents. Generally, people only store a business’ information in their address books if they are satisfied with the provider’s service and wish to engage in repeat business.

The 10 most popular Finance Companies of Orlando:

1. Mortgage Architects Incorporated (1066 people stored this Finance Company in their digital address books) (407) 737-3552 3361 Rouse Rd Ste 140 – Orlando, FL 32817

2. Corporate Management Advisors Incorporated (1044) (407) 869-1817 785 Douglas Ave – Altamonte Springs, FL 32714

3. Lsq Funding Group Lc (758) (407) 206-0022 1403 W Colonial Dr – Orlando, FL 32804

4. Central Florida Home Equity (363) (407) 660-2220 1001 N Lake Destiny Rd – Maitland, FL 32751

5. Rj Twitty & Company … (257) (407) 622-1888 400 S Park Ave – Winter Park, FL 32789

6. The Cit Groupconsumer Finance (214) (407) 660-1440 901 N Lake Destiny Rd Ste 376 – Maitland, FL 32751

7. Trinity Financial (198) (407) 523-1980 933 Lee Rd – Orlando, FL 32810

8. CFO Strategic Partners (194) (407) 426-8288 811 N Magnolia Ave – Orlando, FL 32803

9. Capital Corporation Merger & Acquisitions Incorporated (193) (407) 540-0142 390 N Orange Ave Ste 800 – Orlando, FL 32801

10. Golden Florida Management Incorporated (162) (407) 331-4300 115 Maitland Ave – Altamonte Springs, FL 32701

Finance Companies are happily ready to lend their clients the money they need to help them cover up any emergency demands they might experience.You can borrow money on the strength of your next payroll check. The loan you have borrowed is generally debited from your account. But, be very careful in choosing right and trustworthy Finance Company or else you’ll find yourself up to the neck in debt. This List is made to help you to find Finance Companies in your locality.

ENTREPRENEURSHIP

You know, the estimated world population reached six billion at the end of 1999 and 2020, the figure jumped to eight billion! Whether the government can provide jobs for so many people? In fact, the ‘privatization’ became so popular in the past decade, suggesting that they “wash hands” of the task of creating a horrible job.
Another fact, mergers, acquisitions, and restructuring in the private sector more often led to mass layoffs. So who gets the burden of creating jobs? it must bear the burden of its own INDIVIDUAL. Every person, create your own job! Every person, ready or not, conditions pushed into entrepreneurship.
To select which one: to prepare mentally and entrepreneurial skills or, when the time comes, had odd jobs, trying to become entrepreneurs after the “frozen out” of the position of “payday people”!

Our suggestion, and it is the task of this book anyway, immediately learn to take initiative, innovative, daring and creative. Begin to promote and show your ideas. You have to start living “little bother”, do not wait for your monthly salary, and began to delay your gratification.

Be aware, this phenomenon. That entrepreneurship, which is not recognized a quarter century ago, when it is taught as a subject at universities around the world. In the United States alone, hundreds of colleges to teach it. Is this really a new phenomenon?

Not exactly so. We are actually born as entrepreneurs. Courage, creativity, and initiative – it is the nature of a person from birth. That’s natural, inherent within you! Living matter, make it appear and the ability to work optimally! Baby anywhere in the world, before they are flooded with the values ​​and rules of society, without the need to take a seminar on “run”, he learned to walk up to be. You, reader, first babies are not yet able to crawl. Every time the baby is learning to walk it stumbles, he rose again. The baby learns to speak without the need to attend language classes. Unfortunately, any excess is lost when he entered the institution we call school.

Try to answer our questions.
Is there any institution in this world, where you can learn how to run your own business?

I’m sure you start calling some business courses or majors with names offered by a university or an institute of the course. Frankly, it all does not teach you how to run a business for yourself. They just teach you how to run a business for someone else! If you follow a course in accounting, which is taught is how you count other people’s money.

Not his time talking about the advantages of technology. Let us talk entrepreneurial excess. We need entrepreneurs to create a great company with the latest findings of the technology!

A number of scholars, practitioners, successful people, you believe will address the task of creating jobs for people. Why should anyone else? Why should they, not your own? Did not they are successful, have had no more trouble in creating jobs, because they are already there, while you may still continue to look for what fits your business run itself.

The Importance of AR Financing Services

Companies that provide accounts receivable financing, or AR financing, will offer services at different levels. Often you are expecting to receive services that compensate for the amount of money you are paying for the service. For this reason, you should ponder what is important for you and your business before choosing an A R factoring company. You should do a thorough investigation of which Commercial Financing Companies you would like to work with.

There are AR Financing firms of all kinds. There are the ones that charge low fees but provide bad service. If you choose low fees over service you may end up waiting on the phone for hours on end, or talk to someone that does not really care to solve your problem. The truth is, the reason why they offer low fees is because they have bad service. Good service is not a priority for them. This is why you should not compromise the quality of the service just for the low fees. The costs eventually add up and end up being much higher.

Fortunately, there are AR Financing firms that provide good service. These firms are usually smaller and more difficult to find because they may not advertise much. However, they may be your best option. Because they are small, they provide more personal assistance and are easy to reach. It is best to speak with a Commercial Finance Broker as they will know who is the best lenders for you type of business, plus most often they are paid by the lender so there is no additional costs to your company.

When your budget for AR Financing is limited, low fees can be enticing. Moreover, you are resorting to Financing because you want to increase cash flow not spend a lot. However, it is important to know that there is a price to small service that you may be overlooking. The companies that opt for the lower fees, are frequently disappointed of their decision specially when they are at the early stages of a long term or short term commitment. Here paying more, pays off.

Finally, it is important to point out that the process of selection an AR Financing company is not easy. We advise you to consider first the level of service you wish to have, the one you need, and the one you can afford and if the difference is only of a few dollars a month choose the one that provides the best service. You need to analyze carefully and look at all sides of the equation when making a decision if Factoring is ideal for you business.

Options on Financing a Business Via P O Financing and Inventory Financing

It’s a good news/bad news situation at its classic best. Your firm has the ability to receive orders or contracts but you are challenged with restrictions or unavailability of inventory and PO (purchase order) financing. Financing a business based on assets such as inventory and orders in coming has never been more of a challenge in Canada.

When we speak to clients we advise there is no one method that seems to handle all inventory and P O finance challenges. But the good news is that via a variety of effective business financing tools you can employ you are in a position to generate working capital and cash flow from these two asset categories. Let’s examine some real world strategies that have made sense for clients.

The root of the problem is simply, you have orders and contracts, but those will potentially be lost to a competitor. Conventional wisdom is that you go to your bank and ask for financing to support inventory and purchase orders. As you may have experienced, we aren’t big believers in conventional wisdom on that matter!

However, utilizing a convention purchase order funding source does allow you to purchase product and get your suppliers paid, thus facilitating you ability to deliver to your customers.

One of the main benefits that many clients don’t realize is that inventory financing and P O financing don’t necessarily require your firm to have a long or strong credit history; the focus on structuring the transaction is around the inventory being financing and the general credit worthiness of your client, who will be paying yourself or the inventory or P O financing firm

The overall process is fairly simply and easy to understand when it comes to putting the transaction together successfully. On receipt of your confirmed purchase order your supplier is paid via cash or a letter of credit. Your firm of course completes final shipment of the product, which typically involves some additional time on your firms part. On shipment and of course payment from your customer the transaction is in effect settled. In a true pure po financing scenario the P O funder is paid immediately on your invoicing of the product. That is facilitated by your firm selling the receivable via a factoring type transaction as soon as you have generated the invoice.

There are always limitations to this type of financing – so things we look for early in the transaction are the ultimate remarket ability of your product in case there is a transaction risk. Naturally, as we stated, the overall credit worthiness of your customer is key, his receipt of goods and payment in effect closes the transaction.

Inventory financing and PO financing are generally more expensive than traditional financing, due mainly to the significant transaction risk that the lender takes. Therefore we strong recommend that your firm has solid gross margins in the 25% range to cover the associated costs of a po financing, inventory financing transaction that also factors in the time it takes to get paid by your client, as that typically adds 30-60 days on to the whole cycle of the transaction.

If there is one great tip of ‘ secret’ that we share with clients its simply that the best method of ensuring financing in the manner we have outlined is to consider an asset based line of credit. Coupled with a facility that will finance your purchase orders this is the ultimate working capital tool that will allow you to grow business quickly and significantly. This type of facility is generally a non bank facility and is offered by independent finance firms.

Speak to a trusted, credible and experienced Canadian business financing advisor who will assist you putting together a working capital and cash flow solution that works!

Trends in Entrepreneurship 1000 Last Year

Let us examine the trend of the last 1000 years. There we see the transfer of power in the group of people or individuals.

year 1000
Power in the hands of the clergy, which incidentally are some people who can read and write

year 1455
Invention of printing which allows more knowledge could spread to more people. Thus the power shifted from religion to politics

in 1555
Politicians began to be more powerful and to maintain power, the bureaucracy is made

year 1970
The discovery of the microchip allows more information to person group spread is greater. Power slowly shifted from politics to economy

year 1995
Economy is now so important that the cause of the downfall of many political leaders (exp.Presiden Suharto of Indonesia, Prime Minister Chavalit Yongchaiyudh of Thailand) during a very short period

Year 2020 balance of power shifts slowly from the bureaucracy to entrepreneurship. (Bill Gates was chosen as the most powerful people in the UK)

It has been predicted that over the past 25 years, individual bureaucrats will be defensive, looking for ways to maintain existing security status of their living standards, while the entrepreneurial individual who will be offensive, seeking to enlarge their opportunities, their skills and increasing their quality of life .