How Commercial Lenders Went Wrong With Small Business Financing

Small business owners will be more likely to avoid serious future business finance problems with working capital management and commercial real estate loans by exploring what went wrong with business financing and commercial lending. This is not a hypothetical issue for most commercial borrowers, particularly if they need help with determining practical small business financing choices that are available to them. The bankers and banks responsible for the recent financial meltdown seem to be saying that even if anything actually went wrong, everything is fine now in the world of commercial lending. Nothing could be further from the truth. Commercial lenders made serious mistakes, and according to a popular phrase, if business lenders and business owners forget these mistakes, they are doomed to repeat them in the future.

Greed seems to be a common theme for several of the most serious business finance mistakes made by many lending institutions. Unsurprising negative results were produced by the attempt to produce quick profits and higher-than-normal returns. The bankers themselves seem to be the only ones surprised by the devastating losses that they produced. The largest small business lender in the United States (CIT Group) declared bankruptcy after two years of attempting to get someone else to pay for their mistakes. We are already seeing a record level of bank failures, and by most accounts many of the largest banks should have been allowed to fail but were instead supported by artificial government funding.

When making loans or buying securities such as those now referred to as toxic assets, there were many instances in which banks failed to look at cash flow. For some small business finance programs, a stated income commercial loan underwriting process was used in which commercial borrower tax returns were not even requested or reviewed. One of the most prominent business lenders aggressively using this approach was Lehman Brothers (which filed for bankruptcy due to a number of questionable financial dealings).

Bankers obsessed with generating quick profits frequently lost sight of a basic investment principle that asset valuations can decrease quickly and do not always increase. Many business loans were finalized in which the commercial borrower had little or no equity at risk. Banks invested almost nothing in cash (as little as three cents on the dollar) when buying future toxic assets. The apparent assumption was that if any downward fluctuation in value occurred, it would be a token three to five percent. In fact we have now seen many commercial real estate values decrease by 40 to 50 percent during the past two years. Commercial real estate is proving to be the next toxic asset on their balance sheets for the many banks which made the original commercial mortgages on such business properties. While there were huge government bailouts to banks which have toxic assets based on residential mortgages, it is not likely that banks will receive financial assistance to cover commercial real estate loan losses. As a result, a realistic expectation is that such commercial finance losses could produce serious problems for many banks and other lenders over the next several years. As noted in the following paragraph, many lenders have already drastically reduced their small business finance programs.

Inaccurate and misleading statements by commercial lenders about their lending activities for business finance programs to small business owners is an ongoing problem. Although banks have typically been reporting that they are lending normally with their small business financing, the actual results indicate something very different by any objective standard. It is obvious that lenders would rather not admit publicly that they are not lending normally because of the negative public relations impact this would cause. Business owners will need to be skeptical and cautious in their efforts to secure small business financing because of this particular issue alone.

There are practical and realistic small business finance solutions available to business owners in spite of the inappropriate commercial lending practices just described. The emphasis here is focusing on the problems rather than the solutions primarily because of the lingering notion by some that there are not significant current commercial lending problems. Despite contrary views from bankers and politicians, collectively most observers would agree that the multiple mistakes made by banks and other commercial lenders were serious and are likely to have long-lasting effects for commercial borrowers.

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.

Looking For The Suitable Business Finance Solution For A Small Business

Surely it’s no mystery that searching for the most suitable business finance option to be able to get the financing essential to launch a small business gets to the mind of every businessman. While business finance options are around every corner it is essential to end up getting the right type of funding for a particular kind of business.

As a business owner, you need to find out that picking the wrong type of funding may lead to undesired situations just like feuds between you and your financier, a shift of control that is out of your hands and total waste of time and money, as well as other unwanted consequences.

The thing is that you have to look for and go for the most beneficial business finance option which best fits your small business. As a way to aid you to find the ideal financing alternative, we’ve outlined various financing options which you may find appropriate for your business.

Friends And Family

In the event that your loan wasn’t granted, give some thought to asking a rich relative or good friend for a little help. The most sensible thing about obtaining a small business financing from family and friends is that asking for a small amount of funds is fast, hassle free and has no legal expense. Even so watch out, continue to be professional and keep in touch. No doubt you wish to safeguard your relationships with friends and family and so make sure to repay the amount of money you have borrowed.

Debt Financing

Most new small businesses are funded with debt financing by means of a finance company. If perhaps you pass muster, banks can give you a history of credit. Know that this loan includes an interest rate and repayment schedule. However in advance of offering you a loan, they will carefully examine your company’s earnings, collateral and liquidity of your property. In addition, you furthermore should have a good business plan and know the inside and outside of your financial condition. If perhaps you need to improve the probability of your success to have your loan given, you need to establish a relationship with your lender ahead of your request for loan.

Grants

For anybody who is starting up a whole new business from scratch or in the technology game then getting a grant via the Small Business Administration is the very best way to try. Remember that SBA does not grant loans, they do guarantee them. They considerably reduce the lender’s risk so making them qualified to provide a loan. The pre-qualification program of SBA is intended to help new and growing business, disabled business owners, low income borrowers, veterans, exporters, rural, and specialized industries. In these times of economic crises, an entrepreneur shouldn’t fail to notice ‘free money’.

Venture Capitalists

Approaching the venture capitalists is an excellent way to consider just in case you happen to be beyond the start-up stage, have initial revenues coming in, a quality team in position and also have a clear path to finally sell the business. Yet be aware that the VCs right now have higher standards than in the past. They remain a serious player in the investing world up to now. They offer you a very time-sensitive funding and assures they immediately get their money and profits. In case you are planning for a meteoric growth and will require further business financing later on to attain it, they’re certainly a great source.

Equity Financing

Even if debt financing is often preferred by business owners, however there are still a lot of companies which are funded by private or institutional investors in exchange for an equity ownership stake.

Angel Investors

Angel investors can be your wings to get funds, they fill the gap between friends and family and venture capitalists. Angel investors now seldom even take a look at investments below $1 million. They made their name as being warm and friendly and patient about their investments as well as by providing their business wisdom and priceless relationships along with their money. So why don’t you get a knowledgeable business finance adviser to plan the deal.

Strategic Investors

Strategic investors could actually help if perhaps you need to get to market without delay. They brighten up the investee’s outlook for more investment and success by means of putting value to the funds it invests with its contacts, experience, and know-how of market. Nevertheless you really need to be careful that they can prohibit you from selling to your competitors, can swamp your business with opportunity, manipulate you into reallocating your company’s assets in a lopsided way as well as end their business relationship with you on in just an instant! Which means that you need to make certain you know what you’re getting into.

The bottom line is, choose intelligently. Be aware that even some small business finance options can be complex and risky and you have to make the right choice. It’s very important that you complete your homework; request the right amount, get the right source at the best time. With this you can get the funding for your start up company which is right for your business and stay prepared to achieve business success.

Business Financing Solutions – Equipment Leasing and Used Equipment Financing

To run a company efficiently, it is crucial to have complete access to the supplies and equipment needed to successfully compete within an industry. A trucking company will fail without trucks, a retail sales business needs computers for inventory and registers to assist consumers in making a purchase, and a dentist’s office cannot effectively provide dental procedures to patients without the right specialized dental equipment.

While businesses need the proper equipment to function and compete within an industry, many businesses do not have the funding to fork over thousands of dollars to purchase these crucial pieces. Many businesses do not realize there is a solution for acquiring new equipment or for replacing outdated equipment through leasing. By taking advantage of equipment leasing, companies can get the supplies they need, even if they do not have the funds to purchase them outright.

The Advantages Of Leasing Equipment

There are many advantages to equipment leasing. The following three benefits in particular show how leasing can make more sense than buying. First, many leasing companies offer fast approvals, allowing a business to get the equipment they need quick. Second, leasing provides businesses with beneficial stepped payment plans, custom and flexible terms, and seasonal schedules.

Lastly, there is much less paperwork with equipment leasing. Typically, a business only needs to fill out a short application to get the process started. Most companies that lease equipment directly review and approve applications, so there is no need to sit and wait by the phone for a credit approval company to give the thumbs up. Equipment leasing companies do not have to follow the same regulations required of banks. That means businesses will most often receive competitive rates that will not bust their budget.

Any company requiring the purchase of expensive equipment should consider the benefits and cost effectiveness of equipment leasing.

The Advantages Of Financing Used Equipment

Another option for businesses interested in equipment leasing is used equipment financing. Businesses who cannot function without necessary specialty equipment, but who have a problem financing due to limited cash flow, should consider financing solutions. Used equipment financing offers businesses a way to purchase the high quality equipment needed on a budget.

Used equipment financing is provided for businesses in a large list of industries, including seasonal, recreational, transportation, restaurant, landscaping, office, computer, industrial, construction, and more. Through used equipment financing, businesses short on cash can still purchase the equipment needed but avoid the high cost of new equipment. New companies often have a hard time obtaining financing simply because they are a new company. By purchasing used equipment through a financing company, a business can still startup with quality equipment while avoiding the debt often brought on by purchasing new equipment.

Finding the Right Business Finance Solution After Business Failure

There are thousands of people that start new businesses each year. In fact the United Kingdom is a nation of small businesses, especially within the financial services sector, but of the many businesses that are set up only a small percentage are still in existence after a period of five years.

The fact is that running a small business can be hard work especially in finding the right market, getting and keeping the right staff, finding good suppliers at good prices, and also marketing your product or service effectively. The good thing is that not all businesses fail, but that they survive!

But if your business has hit the rocks do not despair because you are not alone. Ensure that there is nothing that can be done to save it. Take advice from business finance advisers – you could find them in your local phone directory or on the web, and some may provide initial advice at no cost – to see if their expertise can help you get the business up and running again. It’s important to explore all the options before you admit defeat.

If you are convinced that nothing is possible to save your business you might need to look for methods for raising cash. If you’re a director of the limited company your liability will be limited by law, however, you should seek the opinion of a professional such as a lawyer or chartered accountant who is able to inform you exactly where you stand. If you are a sole trader or you have raised money with your property as security, you may need to think about other methods of paying back what you owe.

Business Finance experts guarantees a solution tailored to your specific situation. You can sell your house with the best house selling scheme and once your property is sold you can stay in it and the proceeds from the house sale can be used to pay off, or help to pay off, your business debt. Whatever you decide, explore all the options and take professional advice because the decisions you make now will have a long term affect on you, your business, and your family.

Natural Osteoarthritis Relief Supplements To Ease Joint Stiffness Safely

Joint pain and inflammation due to arthritis is a health issue reported in hospitals. How to alleviate this health issue safely and naturally? This is a common query heard from people. In this article, we are going to see the details of natural osteoarthritis relief supplements to ease joint stiffness. Burdock root is a fine example of natural remedy to treat health issues like joint pain and inflammation.

Today, you can easily get burdock root products from market in the form of extracts and capsules. In order to obtain the best result, feel free to select the right product manufactured from a reliable manufacturer. For effective health advantage, it is generally advised to drink a cup of burdock root tea twice per day.

Flaxseed is another natural cure to alleviate the risks due to arthritis. You can make use of flaxseed oil both internally and externally. Omega-3 fatty acid present in flaxseed is found to be very useful to improve the brain function and joint flexibility. In order to alleviate the troubles due to joint pain and inflammation, make it as a habit to include flaxseed in daily diet. Turmeric is another cure to improve the flexibility of muscles. Curcumin and curcuminoids present in turmeric is mainly responsible for its health benefits. Apart from treating inflammatory diseases, turmeric can be also used to prevent health issues like cataracts and cancer.

Nettle leaf tea is another safe cure recommended to reduce the risk of joint pain and inflammation. To get effective result, it is advised to make use of three cups of nettle leaf tea daily. Apart from relaxing muscles and nerve cells, nettle leaf tea is also found to be very useful to alleviate the risks of health issues like anxiety, stress and depression. Have you ever used licorice root tea? Licorice root decreases the action of free radicals and reduces the troubles due to joint inflammation. How can licorice root help to treat joint pain and inflammation? This is a common query heard from people. Glycyrrhizin present in licorice root is mainly responsible for this health benefit.

Suppressing the functioning of immune system is a key feature of licorice root extract. You can also make use of this herbal cure to ease pain due to arthritis troubles. Today, licorice root products can be easily availed from market in the form of extracts and tea powders. Hence feel free to make use of this remedy as per the need. Those with blood pressure problems are generally advised to limit the consumption of licorice root products.

How many of you do regular exercises? As per studies, regular exercising is found to be as a safe means to improve the flexibility of muscles. To get effective result, it is recommended to do exercises for at least thirty minutes per day. Rumatone capsule is one among the best sold products to treat health issues like arthritis. Improving muscle flexibility is a key feature of this herbal product. For the best result, try to make use of this remedy consistently for three or four months.

Herbal Remedies To Cleanse Liver Naturally And Improve Overall Health

Poor diet, lack of exercise and higher levels of cholesterol can put anyone to the risk of an unhealthy liver which is responsible for a wide number of functions in our body. Liver is responsible to digest the fat and filter the poisonous elements and when you are not taking care of your liver it can wreak havoc on your digestive system. Don’t wait till you suffer from irritable bowel syndrome, constipation, vomiting, gallstones or indigestion. Try Livoplus capsules which are the widely trusted herbal remedies to cleanse liver naturally.

Too many pollutants, alcohol consumption, and bad living habits damage our liver, and its performance degrades over time. But there is a simple remedy for a timely cleansing of liver. Ayurveda has some powerful herbs that are fortified with liver cleansing properties and Livoplus capsules comprise of all such carefully selected ingredients to help us improve overall health.

Signs of an unhealthy liver:

Though liver is capable of natural regeneration but it’s not immune to diseases. Therefore, we should definitely take care of the most versatile organ in our body that is responsible for metabolism, blood clotting, eliminating the waste and filtration of the blood. Take a look at the below mentioned symptoms that are a clear sign that you should try herbal remedies to cleanse liver naturally.

1. Jaundice
2. Itchy skin
3. Abdominal swelling and pain
4. Excess weight loss
5. Nausea and fatigue.

Healthy liver is essential for a wide number of functions in the body, and if you encounter any of these warning signs then it’s high time that you should cleanse your liver. Livoplus capsules are one of the most trusted herbal remedies to cleanse liver naturally that help to detox liver and maintain overall health.

An effective liver cleanse with Livoplus capsules:

After too much calorie intake, alcohol, chemical-based medicine, junk foods and oily foods we should detoxify the liver to enhance its performance. Some life threatening situations can occur if your liver is not cleansed regularly. If you don’t have time to follow a strict detoxifying diet regimen then take Livoplus capsules twice a day to see the results.

The unhealthy liver is accompanied by loss of appetite, fatigue and variety of allergies and infections. Therefore, experts have presented the well-balanced formula of Livoplus capsules that contain Kantkari, Makoy, Kasni, Arjun, Mandur Bhasam, Kasmard, Palihari, Amrta, Daru Hald, Santhi, Bhangra Bhui Aamla, Aamla, Chitrak, Haritaki and Vaivading to improve overall health.

Key Features of Livoplus capsules:

As we all know liver is the most versatile organ responsible for a lot of functions in our body. Thus, it’s essential to cleanse it regularly by taking natural supplements like Livoplus capsules. You can try these capsules for a prolonged duration because:

1. These capsules are 100% natural and free from side effects.

2. Kantkari is the main herb in these capsules that is useful in detoxifying the liver.

3. The liver cleansing properties of Chitrak help to maintain overall health.

4. Liver’s ability to resist diseases can be regained.

5. Immune system and digestive systems can be enhanced.

6. All sorts of damages caused by jaundice and fatty liver can be treated.

All the herbs and ingredients in Livoplus capsules are formulated as per ayurvedic procedure to present one of the most effective herbal remedies to cleanse liver naturally. So don’t wait anymore and order the best liver detox pills today.