95% of Businesses Fail: Don’t Let Yours Be One of Them!
August 28, 2008
“Up to ninety per cent of businesses fail in their first five years of operation” The first time I heard this was many years ago during an accounting seminar. At that time, it sounded rather unbelievable; however, I now believe those statistics are true and probably higher or occur within shorter time spans, especially during times of global economic stress. The Cause of Business Failure Of course, many people have now heard of these facts, but what most unsuccessful business managers do not know, or fail to pay attention to, is why their businesses fail. The statisticians say... Read more »
Merchant Loans Offer Infinite Possibilites for Merchants
August 28, 2008
If you are a merchant who has been searching for ways to finance your business, you have most likely come across the multitude of business loans, and other financing options that are available for business owners. Startup loans are intended to fund the development of a business from the ground up and business acquisition loans provide funds for the purchase of an already existing business, especially helpful for those who find that the amount of money they can acquire through a startup loan does not cover the actual startup costs. Other financing options include business lines of credit, which are like credit cards for businesses, offering a specific credit limit up to which a business may access, equipment financing,... Read more »
Merchant Loans for Restaurant Owners
August 28, 2008
With over 945,000 restaurant locations in the United States (70 percent of which are independent restaurants) the restaurant industry is a booming part of the private sector. Restaurants in the United States employ over 13 million people, and annual restaurant sales total $558 billion. This may seem like an astounding amount of money, but restaurant owners are aware that it takes lots of funds and financing to produce a profit. Just like all other types of merchants, restaurant owners want the best for their businesses and sometimes this can require money that the restaurant owner does not have on hand. One of the attributes that make restaurants so unique is their offering of goods, services and sometimes entertainment all under one roof. A restaurant that provides... Read more »
Debunking The Reverse Mortgage Myths
August 27, 2008
A reverse mortgage is a government sponsored product for seniors 62 and over to stay in their homes and improve cash flow. Reverse mortgages have gained significantly in popularity in recent years. While they are becoming more widely accepted, there are still many myths and misunderstandings surrounding reverse mortgages, This article will explore some of those myths. Myth 1: Reverse mortgages are only for desperate seniors This first myth might have been true in the old days of reverse mortgages but not today. You can use reverse mortgages for a variety of reasons from estate planning, vacations, paying for college and paying down debt. In most... Read more »
How To Finance Your Business
August 24, 2008
If you are looking for capital from outside sources, it’s not enough to show you are passionate about the idea - you must have a business plan and the prospect of a good return for your investors. You do lose some control by inviting others in to finance your business, but often there would be no business without their help; investor may bring useful skills along with their money. When you have a great idea for a business, it is often quite difficult to understand why everyone is very happy to talk to you about it until you mention that it needs some funding. Suddenly... Read more »
Understanding Your FICO Score And Its Variances
August 24, 2008
The main system in place for determining credit scores is called FICO, an acronym for Fair Isaac Credit Organization, which is the company that owns this formula. The three credit bureaus, Equifax, TransUnion, and Experian all use this system to establish credit scores, but they each market it under a different name. Equifax markets their product as Pinnacle; Experian as the FICO Advance Risk Score; and TransUnion as Precision. It is important to be aware of these names, and to note that all of these products employ the same formula for establishing credit score. The notable differences in the different products marketed are due to slightly... Read more »
The Benefits of Having an Offshore Bank Account for Business Purposes
August 22, 2008
There are many benefits to having an offshore bank account, especially if you travel a lot for business. Many businesses utilize offshore bank accounts because placing their money within another economy can have some tax advantages. It also allows a business to have money in a different location in case they need it for a specific reason. Otherwise, they are able to have money housed somewhere else where it cannot be touched by anyone that doesn′t have the authority to touch it. Security is tight when it comes to offshore bank accounts, so many businesses and individuals are able to enjoy the benefits of knowing their money is safe. Because businesses... Read more »
FAQs Regarding New Credit Formulas
August 21, 2008
Business owners must consider how these changes could effect their business scores, because of the major impact it could have on their ability to take out loans, finance projects, or pay employees. Consider your options and discuss them with a financial adviser to figure out what is the best plan for you. How will these changes impact consumers? When consumers who are considered authorized users on credit accounts receive their new credit score, it may be significantly lower. This drop may increase depending on how many accounts they are an ‘authorized user’ on. Therefore, these consumers will essentially be losing some of their credit score. There is one group that is positively affected, however. This... Read more »
VantageScore Versus FICO: How the New Credit Rating System May Affect Consumers
August 21, 2008
The fate of consumers and small business owner’s finances is wrapped in their ability to access credit and capital. This is increasingly the case, but still few borrowers are aware of exactly how their credit scores are determined. To further complicate what may already be a confusing picture for many, there is a new competitor on the market that, if it is successful in the market, will give consumers a second credit score in addition to the one they already have. The current credit industry is something like a pyramid in its structure. At the bottom are the consumers who want to finance a car or new refrigerator. These individuals seek a line of credit through a credit lender, or the bank that will be providing the financing. This bank pays one of three credit bureaus for your FICO credit score. The credit bureau,... Read more »
The 5 C’s to Success: Securing a Business Loan with a Bank
August 21, 2008
Beginning or expanding a business can be an exciting venture. But to do so successfully, a business owner is going to need capital. That comes from either the owner’s personal check book or financing extended through a bank. To secure financing through a bank, a business owner must understand the 5 C’s of Credit. These guidelines are used by financial institutions as a way of analyzing a borrower’s request for a loan. The 5 C’s: Cash Flow, Collateral, Capital, Character and Conditions are the major elements a bank uses to examine a business and its owner during the loan... Read more »
