Small Business Financing Options – Despite the Credit Crunch

There’s no question that the financial crisis and ensuing credit crunch have made it more difficult than ever to secure small business financing and raise capital. This is especially true for fast-growth companies, which tend to consume more resources in order to feed their growth. If they aren’t careful, they can literally grow themselves right out of business.

Amidst all the gloom and doom, however, it’s important to keep one thing in mind: There are still options available for small business financing. It’s simply a matter of knowing where to look and how to prepare.

Where to Look

There are three main sources you can turn to for small business financing:

Commercial Banks – These are the first source most owners think of when they think about small business financing. Banks loan money that must be repaid with interest and usually secured by collateral pledged by the business in case it can’t repay the loan.

On the positive side, debt is relatively inexpensive, especially in today’s low-interest-rate environment. Community banks are often a good place to start your search for small business financing today, since they are generally in better financial condition than big banks. If you do visit a big bank, be sure to talk to someone in the area of the bank that focuses on small business financing and lending.

Keep in mind that it takes more diligence and transparency on the part of small businesses in order to maintain a lending relationship in today’s credit environment. Most banks have expanded their reporting and recordkeeping requirements considerably and are looking more closely at collateral to make sure businesses are capable of repaying the amount of money requested.

Venture Capital Companies – Unlike banks, which loan money and are paid interest, venture capital companies are investors who receive shares of ownership in the companies they invest in. This type of small business financing is known as equity financing. Private equity firms and angel investors are specialized types of venture capital companies.

While equity financing does not have to be repaid like a bank loan, it can end up costing much more in the long run. Why? Because each share of ownership you give to a venture capital company in exchange for small business financing is an ownership share with an unknown future value that’s no longer yours. Also, venture capital companies sometimes place restrictive terms and conditions on financing, and they expect a very high rate of return on their investments.

Commercial Finance Companies – These non-traditional money lenders provide a specialized type of small business financing known as asset-based lending (or ABL). There are two primary types of ABL: factoring and accounts receivable (A/R) financing.

With factoring, companies sell their outstanding receivables to the finance company at a discount of usually between 2-5%. So if you sold a $10,000 receivable to a factor, for example, you might receive between $9,500-$9,800. The benefit is that you would receive this cash right away, instead of waiting 30, 60 or 90 days (or longer). Factoring companies also perform credit checks on customers and analyze credit reports to uncover bad risks and set appropriate credit limits.

With A/R financing, you would borrow money from the finance company and use your accounts receivable as collateral. Companies that want to borrow in this way should be able to demonstrate strong financial reporting capabilities and a diverse customer base without a high concentration of sales to any one customer.

How to Prepare

Regardless of which type of small business financing you decide to pursue, your preparation before you approach a potential lender or investor will be critical to your success. Banks, in particular, are taking a much more critical look at small business loan applications than many did in the past. They are requesting more background from potential borrowers in the way of tax returns (both business and personal), financial statements and business plans.

Lenders are focusing on what are sometimes referred to as the five Cs of credit:

o Character: Does the company have a strong reputation in its community and industry?

o Capital: Lenders usually like to see that owners have invested some of their personal money in the business, or that they have some of their own “skin in the game.”

o Capacity: Financial ratios help lenders determine how much debt a company should be able to take on without stressing the finances.

o Collateral: This is a secondary source of repayment in case a borrower defaults on the loan. Most lenders prefer collateral that is relatively easy to convert to cash, especially equipment and real estate.

o Conditions: Conditions in the borrower’s industry and the overall economy in general will play a big factor in a lender’s decisions.

Before you meet with any type of lender or investor, be prepared to explain to them specifically why you believe you need financing or capital, as well as how much capital you need and when and how you will pay it back (if a loan) or what kind of return on investment a venture capital company can expect. Also be prepared to discuss specifically what the money will be used for and what kind of collateral you are prepared to pledge to support the loan, as well as your sources of repayment and what measures you will take to ensure repayment if your finances get tight.

You should also ensure that your financial statements and records are current and that your internal control systems are adequate for handling the level of accounting and bookkeeping lenders and investors expect.

5 Common Mistakes That You Should Not Make If You Want to Get an Internship With a Top Bank

You are a student and you really want to be in a top paid position in a well-known bank. You know that you will probably have to find an internship first. And you are correct; most people working in the finance industry found their first job through an internship.

However, the fact it is an internship does not mean it is easy to get. Recruitment processes in banks are tough because there are so many candidates. You have to understand how they work or you will not maximise your chances.

Here are 5 common mistakes that students make when they apply for an internship in a bank.

1. Apply for the wrong type of internship

Banks have different programs for students, depending on previous internship experience and the number of years of study you have left before graduation. If you apply for the wrong one, your application will likely be discarded.

Usually you start with a spring or an off cycle internship if you have 2 or 3 years left before graduation. Doing this kind of internship is not mandatory, but will increase your chances of getting onto the next programs.

Then, when you have one year remaining before graduation, you can apply for a summer internship. This is really important if you want to get into finance. Banks use these programs to identify those that will enter their graduate programs the following year. If you skip this step, it will be much harder to get onto a graduate program.

2. Only applying for the bank of your dreams

Some students will apply only for the four or five top banks they really want to work for, thinking the others are not worth it. If you are serious about getting into finance, you should not do this. The truth is that you should enlarge the scope of your applications as much as possible. Everybody is applying for the top banks, they are bombarded by applications each year. Even if you maximise your chances with good preparation, it is still not enough to ensure that you will get an internship. There are enough good candidates like you for banks to choose from and sometimes between two similar profiles it can even come down to pure luck.

You also should not compromise what you want to do in order to get into a top bank. Believe me, it is a lot easier to settle for a good fitting internship in a medium ranked bank than an internship in one of the best bank that does not match what you want to do ultimately.

3. Believing that a deadline far in the future means you can wait to send your application

If you want to apply for a summer internship or a graduate program, you should send your application as soon as it opens (ie, usually September of the previous year). While it is true that most banks have deadlines set as far away as March of the year of the internship, you have virtually no chance of being successful with an internship application if you apply just before the deadline. That is because banks do not wait to review applications. They have several interview sessions throughout the year and once they are full they will not even look at other applications. You have to get into the first interview session (usually in October/November). This is when recruiters are most open to “non-perfect” candidates.

4. Thinking that filling the online application is enough

The online application is important and you should put a lot of efforts into it. However, it may not be enough to guarantee success.

There are so many candidates for bank internships that if you want your chances to be high, you need to differentiate yourself from others. Most banks organise events on campuses where you can meet and talk with people from the banks. It is essential that you go to at least one of these events, and that you talk with people there. If you make a good impression, they will give you their business card, then you will be able to tell the HR person that you met with this person and that you had a nice conversation. It will have a very positive impact on your application. If they really like your profile they can even recommend you directly to the HR department. If it happens, congratulations, you are certain to get an interview.

If there are no events on your campus, you can go to the bank career website and look for events organised near your location. Then you can send an application for the event.

5. Focusing too much on finance skills in your application

If you want to work in finance, you need of course to know at least the basics of your field (derivatives, interest rates etc for market finance, the usual valuation ratios for corporate finance). However, recruiters expect every candidate to be knowledgeable on these topics. You also need something that will differentiate your application: add something more to it, such as a technical skill. There are a lot of strong finance-oriented profiles, and a lot of good technical profiles. But there are so few candidates that can combine both skills and they are the favourites of the banks. Today, finance is all about automation and algorithm. Banks know that, and they want their future employees to be comfortable with the new digital age. So learn a programming language (or more than one) and put it on your resume.

Creative Financing – Mortgage Notes and Other Tools

PROBLEM

Since early 2006 to the present our financial system in this country has been in disarray and significantly crippled. Hundreds of banks have already failed and been closed; hundreds more have been forced into mergers (shotgun marriages) with stronger banks; hundreds more are operating as “zombie” institutions-they look like banks and they try to act like banks but they cannot make loans. Most of the “too big to fail” banks based in New York, California, or Atlanta appear to be operating normally, but the truth is they are not lending to the “little guy”. They are lending to the publicly traded corporation primarily. In plain English, getting a loan from a bank for the average borrower is next to impossible.

SOLUTIONS

- Don’t operate your business or don’t do the transaction
- Pay all cash-don’t borrow
- Borrower from non-banks-friends, family and private lenders
- Do transactions using non-traditional methods-creative financing

JUST WHAT IS “CREATIVE FINANCING?

Creative real estate financing is an all-inclusive term. It essentially means arranging a transaction whereby any and all types of financing is considered to do the deal. Most or all of these types of financing happen to fall outside of the standard government mandated banking guidelines and restrictions. The financing vehicles considered do not conform to Fannie Mae, Freddie Mac, FHA, VA, or other HUD guidelines.

Examples of “creative” financing vehicles are: Private Party Financing, Seller Financing, Bank lending that does not comply with the HUD guidelines, Exchanging Equities, Lease with Option Financing, Contract for a Deed Financing, Equity Sharing Financing, Home Equity Financing, Credit Card Financing, and any combination of the above.

EXAMINING “CREATIVE FINANCING” TOOLS INDIVIDUALLY

Of all of the various types of creative financing tools mentioned above the most common and the most easily understood is private party mortgage financing, which includes seller financing.

The underlying concept is that the bank is not involved in the transaction and the private party lender takes the place of the bank. There are many advantages to removing the bank form the transaction. The main benefits are:

- Qualifying (accepting) the borrower is the decision of the private party
- Qualifying (accepting) the property is the decision of the private party
- The interest rate and the monthly payment is the decision of the private party
- The maturity date of the loan (balloon date) is the decision of the private party
- The down payment amount is the decision of the private party
- The time necessary to close the loan is much shorter
- A valuable, long-term stream of income is created
- The interest earned may be higher than any other available investment

All of these benefits, when combined, make private party mortgage financing a very powerful tool to cause a transaction to close that otherwise would have failed. And, additionally, they may offer investment benefits not elsewhere available.

THE OTHER SIDE OF THE COIN

Now, after examining the benefits of private party financing, we should, in fairness, look at the negative aspects. No tool is the perfect tool for all jobs, and no type of financing is the perfect type of financing for all transactions and for all people.

The negative aspects are summarized below:

- Emotionally, not everyone is comfortable waiting for monthly payments
- Emotionally, not everyone is comfortable with financial details
- Emotionally, not everyone is comfortable with a risk of loss
- Emotionally, not everyone is comfortable doing something new
- Practically, a lump-sum of cash may be needed now

MAKE IT A WIN-WIN TRANSACTION

It is very important to honestly and objectively evaluate each part of the financing transaction. The goal is to make it be a win-win transaction for both parties. Are the personalities of the borrower and the lender compatible? Has the note and mortgage been properly structured so that there is a high probability that the borrower can meet his obligations over the term of the loan? Has the lender anticipated accurately his future need for cash flow income and lump-sum income?

As with most important things, the devil is in the details!

In subsequent articles we will examine some of the other types of “creative financing”.

Lawrence Tepper specializes in:
PROMISSORY NOTE SERVICES, VALUATIONS AND BROKERING EXPERT WITNESS AND EXPERT CONSULTING SERVICES OFFERED

EDUCATION AND TRAINING
1956 Law Degree/Accounting Minor from University of Denver
1961 to Present Colorado Real Estate Broker Specializing in Promissory Notes
1984 Certified Commercial Investment Member Designation From National Assoc. Realtors

PRACTICAL EXPERIENCE
Over 45 years of buying, selling, exchanging, brokering, and structuring promissory notes.
Formal, written promissory note valuation reports available for attorneys and estates.

Train For Finance and Banking Online

Every business and organization that earns a profit has to think about their financial and banking needs. These aspects of a business need qualified individuals who understand monetary funds and how to manage those funds in a bank. Online accredited colleges and universities offer training in finance and banking that teach students how to work for an organization in this capacity.

Professionals use their knowledge by making suggestions to a business to help them grow financially. The professional’s job is to aid their client in sound financial decisions in order to help them use their resources to obtain monetary goals. A professional who understands banking is a strong asset to a business because they keep track of fund activity by making sure it is recorded and handled properly. Prospective students can learn how to perform these main duties through numerous online programs. Students can choose to study finance and banking in a combination program or choose a degree program specifically geared towards one.

Students need to decide prior to enrolling in a degree program if they want to work for finance, banking, or both. This will help a student know if they need to find a combined degree program or find a specific degree program. A finance degree program will provide students with the knowledge to analyze and implement financial procedures in a managerial position. The minimum requirement for a career in the field is a bachelor degree. In a bachelor degree students can expect to complete the program in four years. Curriculum will include general education and degree specific education. The finance part of the program could include courses on risk management, corporate finance, statistical analysis, critical thinking, and more. Students will be able to understand the procedures and principles of financial markets and the distribution of funds in every sector of an organization.

A bachelor degree program in banking is a financial business degree with its focus on banking. The degree program prepares students to work in various careers inside a bank. Courses will center on teaching a student about the many areas of financial institutions. Specific courses may include corporate finance, banking law, international trade law, and global economy. Students will learn about all bank practices, credit, and lending. Career options will allow students to become credit analyzers, loan processing managers, and more. Gaining a degree in banking significantly increases an individual’s annual income within the industry.

A combined approach will prepare students by giving them a strong foundation in management, corporate finance, and the global market. Students will examine every area of the industry through courses that include investments, capital raising strategies, corporate operations, and mergers. A financial and managerial accounting course will teach students how to function as a manager and work with employees within the procedures of accounting. Students will explore topics like financial statements and cost analysis. A combined degree will allow students to work in all areas of both industries.

Banking and Finance Jobs

Understanding Banking and Finance Careers

Careers in banking are both lucrative and rewarding, but at the same time are varied and diverse. Before choosing a career in finance, one should take a step back and consider which type of position would suit the individual. For example, should one apply for a career in retail banking or try for a more lucrative position within a multinational corporate bank? The final decision is an important one. Therefore, we hope this brief yet informative guide will help you find your way.

Retail Banking

Retail banking represents the branch networks of High Street banks. The entry-level career in this type of banking is the counter teller whose job it is to deliver service with a smile to visiting members of the public. Duties mostly involve routine deposits and withdrawals of funds from personal and business bank accounts, but can include basic advice on various financial products. The qualifications required for this type of position are at least a secondary education and some form of customer service and cash handling experience. Other retail banking positions include personal managers and business managers, usually promoted from the counter staff, whose job it is to open new bank accounts, issue loans and offer advice about financial products including insurance and mortgages. Lastly, we have the bank manager who oversees the branch and its activities. Retail banking jobs do not require university qualifications and so thus are a perfect career choice for less academic individuals.

Investment Banking

Investment banking covers far more specialized financial services, looking after the needs of commercial, industrial and governmental clients. Careers in this field include investment bankers, stockbrokers and financial analysts. Duties consist of the setting up and management of corporate loans, the handling of company acquisitions and mergers and the day to day trading of stocks and shares. To qualify for an investment banking career, one has to boast excellent written and verbal interpersonal skills and have a good academic track record, i.e. A levels, with at least one degree in any subject. Graduate training courses and internships are available, but are in short supply, meaning competition for places is tight. A wise move for those wishing fast-track to high-end finance jobs would be to study for a degree in a related field, such as accountancy, economics or financial planning, and use such a qualification to move into a relevant finance banking career.

Racing Awards, Medals and Customized Gear for Runners

Running, whether it be a 5k with the family, a 10k for an extra challenge, or a marathon for the elite runners, can be a very exciting and memorable experience. Running is a very personal sport to lots of people, as it can be great exercise and can make you look and feel very refreshed. Tons of awards are given out to winners at races each year. For people organizing these racing events, finding customized and personal running gear can be difficult, as well as finding unique prizes for running champions. When orchestrating a race, you want to have a memorable competition. Medals and unique prizes can help to make the race more exciting. Participants can keep prizes as souvenirs, and remember the experience better because of a keepsake.
The most important souvenir a competitor can take home is a winning medal. Those are worn with pride, and showed to family members and friends. They are often hung on walls, or shown off where they can be seen. Of course, medals need to be personalized, unique, and specific. You cannot award a running champion with a medal that doesn’t recognize what it’s for. It is often a perfect idea to find a company that will provide you with customized prizes for winners. Often, you can ask for customized medals that include the date, the name of the race, and the name of the company sponsoring and orchestrating the event. That way, when people proudly show their winning medal to others, the people who made the event happen will receive the credit and publicity they deserve.

In addition to medals, running apparel and gear can be a great way to make the race more memorable. Unlike medals, gear is commonly worn and would be used often. Passing out swag, such as customized shirts, jackets, hats, and bags can be a great way to add to the excitement of the race. Races with their own gear are viewed as more unique, as they have customized logos and attractive designs. Shirts can be given out to families, and jackets can be sold at the finish line. Hats can be passed out before the race to keep the sun out of the athlete’s eyes. And, of course, bags can be kept forever and used for multiple occasions. Having the name and date of your race on these items can help to increase publicity and help the runners remember what a successful and memorable race it was. Customizing these mementos can help to define a great race, and will definitely help a race to be more exciting and enjoyable.

Gamble on Line – Possess these Various Advantages for your own

There Really are assorted kinds of games and sports which can be found around the world and human beings possess significant interest within them. There’s simply no uncertainty at the simple fact this one among the absolute most essential explanations for why the games and sports really are all important to this public is on account to how those toss some type of troubles .

There Is just 1 particular certain form of video sport which likewise causes it to be into this set of their treasured games which people are able to playwith. And it’s also not any aside from betting. Betting fulfilling the exact same and is exactly about challenges. There are areas. But once again if it regards betting on line the huge benefits really are far a great deal greater than that which it’s possible to see right now.

Now you Must definitely make certain which you’re choosing the optimal/optimally internet web sites as a way to acquire through together using the practice of betting absolutely. And this is what’s going to offer a great deal of benefits to you.

A Variety of Benefits of gaming Internet:

After Would be the numerous benefits of betting on line that individuals have to be mindful of:

· Convenience:

Comfort Is decidedly among the greatest explanations. Here really is some thing which functions being a boon because you aren’t going to need to go everywhere whatsoever.

· Engage in every time you enjoy:

This Is another benefit that is important you have to know of. The internet singapore casino has ever let exactly the exact same as properly. You may be certain you are surely becoming to engage in midnight or sunrise much.

? Perform from anyplace:

Now you Maybe in almost also you also may adore the access to the games online and virtually any nation.

Each of In making certain you’re receiving through, These items can help you With the consequences for on line.

Coloring Pages Growing Horizons Of Kids

Children are amazing. They know whatever they are taught. If You wish to enhance the horizon of one’s children, and it’s time to get them participated together with coloring pages. Yes, even they all are on line pages that offer many different ways to bring the hidden talent in your kids. These coloring pages comprises of exceptional lessons that are conveyed at a manner that is fundamental to enable kids to grasp.

Coloring Pages – Benefitting Childrem

Worrying concerning the cost in Association? Chill, as they truly have been available at no price tag. Furthermore, you need to stay away from the stress of shopping for exceptionally costly gadgets that are educational. Everything you will need to have is your distribution for your own printer. It can open the pathway for both kiddies to take high benefits in association with internet colouring pages.

You must be wondering why children Have to Be included in coloring. The main reason is that coloring an image will absolutely control the entire attention of one’s kid. They is going to be in a favorable position to concentrate regarding completing their work followed closely by presenting the most useful finished merchandise.

Parents Can Be Getting Brief Repite

Additionally, Mom and Dad Will Have the Ability to Acquire short respite as your Children will probably undoubtedly be coloring pages which is really a funny exercise. On the web coloring pages have been well known to give children several of the best educational gains entirely. They is going to soon be memorizing numbers along side titles of veggies as well as creatures.

More vulnerability to coloring, simple will probably be learning methodology. Kiddies will secure a chance to fortify the coordination between eye and hand . Since they’ll be learning to color lines, abilities will grow in a ultimate manner. Psychologists state that coloring offers an insight into emotions of children in an imaginative way.

Which exactly are you thinking? Involve your kids with coloring Pages in the earliest.

Types of Wood Siding Available for Homeowners

When building your home, even the smallest decision could make a world of difference in what it ultimately looks like. This is also true when undertaking an exterior redesign project. Siding, among other key characteristics, is one of those big decisions that could entirely alter your home’s exterior appeal based on your decision.
Although plastic siding has become a popular option in recent years due to pricing, traditional wood siding remains the preference for many homeowners. This is because wood siding offers customers numerous benefits over their plastic counterparts. Benefits include:

• Wood siding is eco-friendlier than plastic

• Wood is more aesthetically appealing

• Many types of wood are naturally resistant to mold, mildew, and rot, which allows the home owner less maintenance

• Wood lasts longer

• …And much more

One of the main benefits is that wood naturally takes to paint, stains, and other decorative options incredibly well. Plastic, on the other hand, often must be crafted in the customer’s color choice – meaning that options are limited. Once decided upon a type of wood siding, however, you can then choose any type of finish. Whether you want to paint your home the colors of the rainbow, or opt for a natural dark wood stain, anything is possible. Below we look at four of the most commonly used types of siding available: board and batten siding, bevel, tongue and groove, and lap siding. Each has their own aesthetic appeal so that there is something for every person’s unique tastes.

Board and Batten Siding

Board and batten siding is a vertical design created by using two different sized boards. The wider boards are set beneath, while the narrower boards are placed atop the joins. These narrower boards are called ‘battens.’ There are no set widths, so homeowners can choose their preference. The most commonly used measurements, however, are 1 inch by 3 inch battens placed over 1 inch by 10 inch boards.

Bevel Siding

Bevel siding is the most commonly used siding. Installed horizontally, boards are cut at an angle so that one side is thicker than the others. This creates a shingle effect, or the appearance that the boards are overlapping one another. Tongue and Groove Siding Tongue and groove siding is incredibly versatile. Available in both rough and smooth board finishes, it is fitted together tightly to give a sleek appearance. It can be installed in any direction, which does not only include horizontal and vertical, but also diagonal.

Lap Siding

Lap Siding is also known as Channel siding. This siding is very versatile, with installation capabilities for any direction (like the above tongue and groove siding). This unique siding features boards which partially overlap one another, and the ultimate results are a rustic appearance like those of a hunting cabin. If you’re interested in learning even more about wood siding -including less commonly used types available – you can contact your local siding specialist or construction expert. They will be able to give you more detailed information, including a price estimate for your area.

The Best Way You Can Double Your Winning Into Sports Betting?

Have You any idea how much cash is used on sports betting? Well, that’s a significant bit. But regrettably, a lot of the cash is equaled broadly speaking by amateurs who lose. Sports gambling isn’t simply a topic of random probability. It is far much more of the competition with experts. In online betting you can’t provide an explanation that you are a newcomer.
Much like The sport is gaining a massive share. In fact, there is a excellent share of people that have intended to change the gambling sports online betting with their whole time source of income.

To be A winner in sport betting, you have to keep aside your emotions and also follow the following strategies:

· It is all about the chances

The First step of sport gambling lies on what club you will invest your dollars. Take aid. He will certainly place his money onto that team that may give the best outcome.

· Guess by Means of Your head and not heart

Even a Because they utilize their core more than their thoughts number of individuals reduction in sports bet. Betting can be a calculative game. So, you have to understand to figure your own risks and dangers in addition to learn how not to collapse into the snare of these kinds.

· Spend Money on everything you know

Never Invest you don’t understand. This advice should also be followed for sport. Persons have a tendency to bet upon high profile matches. However, the facts is that the actual athletics professionals bet upon the people that are most ignored. This yields to raised outcomes compared to people who gamble on top superior matches.

· Acknowledge your losses

No Matter how skilful you are, you should be ready to just accept your reduction with all the Same spirit in that you simply accept the victory. Afterall, it is a game. Winning And losing is now part of each and every game.