Tag : How

How Do Business Loans Work, Fortress Funding, how do business loans work.#How

How Do Business Loans Work?

What Options Are Available To You?

Traditionally the “Big Four” banks have all offered pretty much the same stuff. That is if you want to borrow money for a business purpose the price goes up. As well as this you need to track down a banker that can take the time to understand your business and appreciate things from your side of the desk, not just the Credit Department’s side of the desk.

There is not question, its getting harder and harder to get good service in the Small to Medium Business, (SME), sector. In fairness to the “Big Four” its hard for them as well. They want it do but they are pushing their managers, branches and infrastructure in general as hard as they can and that rarely co-exists with relationship building and great service.

Its not just pricing and access to good service or advice that makes loans for SME’s hard everything else gets harder as well.

Here s How Business Loans Can Get Harder

The loan term might be restricted putting cashflow pressure on your business

Take this example of a commercial loan of $750 0000 for the purchase of a commercial warehouse.

Commercial loan of $750,000 at 5.42% pa

How do business loans work

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The Truth About Refinance and Three Options for Immediate Action

Why would you consider refinancing your loans? 9 out of 10 clients that we review could re-arrange their loans to be either cheaper, more appropriate or both! It’s worth asking the question, isn’t it? After all we don’t know what we don’t know. When you took out your last loan did [. ]

  • How do business loans work

What Is A Second Chance Loan?

Second Chance Funding How It Can Work For You What is it? Second Chance Finance is a flexible loan offered by lenders for those with bad credit or a less than perfect credit history. It’s a way that you can get yourself back on track quickly and easily. It’s not something your bank [. ]

  • How do business loans work

How Do Business Loans Work?

How Do Business Loans Work? What Options Are Available To You? Traditionally the “Big Four” banks have all offered pretty much the same stuff. That is if you want to borrow money for a business purpose the price goes up. As well as this you need to track down a banker that can [. ]

Looking at the loan in simplistic terms you would say the cost is 5.42%pa or $40650 each year in interest. However, when you look at all the other associated costs the bank is charging an average of $44890 per year. Effectively that’s 5.96%pa. or put another way an additional $21 200 over the 5 year period.

In addition to this you have the hassle, and anguish, of having to prepare interims and hope that the bank remains happy.

Every time you provide your lender information you risk something changing that you may not have anticipated. The opposite can be true but that’s usually only because you know how to “work the system”.

When was the last time your bank manager rang you up and offered to reduce your lending costs?

When was the last time your bank manager called you?

Consider This

Firstly, let’s be clear – you do not have to move your transaction banking.

Commercial lenders love you transactional banking accounts. It gives them your funds on deposit for free, the ability to charge account keeping fees and the ability to look inside your business – without you knowing.

New ways of funding commercial loans are out there. For example set and forget commercial loans and sometimes at home loan rates. Why would you pay commercial interest rates, have a shortened loan term and prepare interim financials if the bank could use equity in your home for your commercial loan?

You can make this happen if you know which lenders to talk to and how to go about it. No disruption to your business banking accounts, your internet banking or credit cards – just cheap efficient loan accounts.

Even if you prefer to, or already have offered your commercial premises as security rather than your home, (or a mix of the two), you can have a set a forget commercial loan with no ongoing fees over 20 years. There is of course always the option to go interest Only as well.

Consider the information below, it’s for the same $750 000 that we looked at earlier.

Commercial loan of $750,000 at 4.89% pa

How do business loans work

In this example the same loan costs an average of $37 087pa. over a 5 year period. That’s effectively 4.94%pa. (compared to 5.96%pa above).

The only thing that has changed is we did it smarter!

All your day to day banking stays in place uninterrupted. The cost of making the changes, (assuming an application fee of $1000 and a valuation fee of $1060) would be recovered in a couple of months.

It s All About Who You Know

Not all lenders are the same.

The market is super competitive at the moment with fintech innovators and new banks coming into the market and in particular into the commercial market. It’s no longer the exclusive domain of the “big four”. Many of these lenders are choosing to get to their clients via brokers. Its gives them the benefit of cheaper distribution channels but more importantly reduces their costs which are then reflected in what they charge you, the borrower.

More importantly they are hungry to do business and there are many ways that we can take advantage of this. You can take advantage of it all, with a little help from someone in the know.

Understanding the lenders and their niches and combining that with finding the right people inside these lenders is always far more likely to get you a suitable and sustainable outcome that might be just right for you. Sometimes it’s a combination so lenders or lender products, sometimes it’s a “re-jig” of your loan products after come consultation with your accountant. Sometimes it’s about releasing a security property like the family home for example and sometimes it’s about separating out your liability from that of your business partner’s liability.

It s A Bit Like Goldilocks And The Three Bears

The three Big Bears are:

  1. Why do commercial loans cost so much?
  2. Why do I need to spend so much money and time simply maintaining the loan going forward?
  3. How do I find the right bank and bank manager that has the time to understand my business?

How do business loans work

Goldilocks is obviously “Just right”. That is a combination of a well priced maintenance free loan portfolio with the support of an experience broker that can ensure that your needs are understood and met by the lender on an ongoing basis.

The one thing for sure is that it’s not just a matter anymore of turning up to your local branch, filling in a form and hoping for the best!



Home, Business Victoria, how to start a business.#How #to #start #a #business


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How to start a business

How to start a business

Advancing Victorian Manufacturing is the Victorian Government’s blueprint for growth of manufacturing in Victoria.

How to start a business

You can do good and make money at the same time. That’s the message from Bessi Graham of The Difference Incubator.

How to start a business

Victorian Government support is available to businesses experiencing significant rises to gas and electricity costs.

How to start a business

Small Business Victoria Workshops are low cost, practical and run by experts in their fields year round across metro and regional Victoria.

How to start a business

To help get your business moving, the Small Business Bus is now touring Victoria bringing expert advice and assistance to you.

How to start a business

Find everything you need to know about grants and assistance programs to start, run and grow your business.

How to start a business

ABLIS is a free online tool which helps you find government licences, permits and registrations applicable to your business.

Small Business Victoria Update

Tips, tools, news and events to help you run and grow your business – delivered fortnightly.



The 100 Startup, how to start a business.#How #to #start #a #business


how to start a business

How to start a business

Imagine a life where all your time is spent on the things you want to do.

Imagine handing a letter to your boss that reads, “Dear Boss, I’m writing to let you know that your services are no longer required. Thanks for everything, but I’ll be doing things my own way now.”

Imagine that today is your final day of working for anyone other than yourself. What if—very soon, not in some distant, undefined future—you prepare for work by firing up a laptop in your home office, walking into a storefront you’ve opened, phoning a client who trusts you for helpful advice, or otherwise doing what you want instead of what someone tells you to do?

All over the world, and in many different ways, thousands of people are doing exactly that. They are rewriting the rules of work, becoming their own bosses, and creating a new future.

How to start a business

In The $100 Startup, Chris Guillebeau shows you how to lead a life of adventure, meaning and purpose — and earn a good living.

Still in his early thirties, Chris is on the verge of completing a tour of every country on earth — he s already visited more than 175 nations — and yet he s never held a real job or earned a regular paycheck. Rather, he has a special genius for turning ideas into income, and he uses what he earns both to support his life of adventure and to give back.

There are many others like Chris — those who ve found ways to opt out of traditional employment and create the time and income to pursue what they find meaningful. Sometimes, achieving that perfect blend of passion and income doesn t depend on shelving what you currently do. You can start small with your venture, committing little time or money, and wait to take the real plunge when you re sure it s successful.

In preparing to write this book, Chris identified 1,500 individuals who have built businesses earning $50,000 or more from a modest investment (in many cases, $100 or less), and from that group he s chosen to focus on the 50 most intriguing case studies. In nearly all cases, people with no special skills discovered aspects of their personal passions that could be monetized, and were able to restructure their lives in ways that gave them greater freedom and fulfillment.

Here, finally, distilled into one easy-to-use guide, are the most valuable lessons from those who ve learned how to turn what they do into a gateway to self-fulfillment. It s all about finding the intersection between your expertise — even if you don t consider it such — and what other people will pay for.

You don t need an MBA, a business plan or even employees. All you need is a product or service that springs from what you love to do anyway, people willing to pay, and a way to get paid

Not content to talk in generalities, Chris tells you exactly how many dollars his group of unexpected entrepreneurs required to get their projects up and running; what these individuals did in the first weeks and months to generate significant cash; some of the key mistakes they made along the way, and the crucial insights that made the business stick. Among Chris s key principles: if you re good at one thing, you re probably good at something else; never teach a man to fish — sell him the fish instead; and in the battle between planning and action, action wins.

In ancient times, people who were dissatisfied with their lives dreamed of finding magic lamps, buried treasure, or streets paved with gold. Today, we know that it s up to us to change our lives. And the best part is, if we change our own life, we can help others change theirs. This remarkable book will start you on your way.

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Our partner site, UnconventionalGuides.com, offers additional paid resources.

If you re looking to set up your first (or your tenth!) website, InMotion is easy and cheap. They ve agreed to offer a 50% off discount for all $100 Startup readers.

Starting in New York City and going to the ends of the earth, we ll be hitting all 7 continents with the message of The $100 Startup.

Chris is currently on tour hiatus while preparing for the World Domination Summit and completing a new book. More tour dates will be coming later this year!

If you represent a group, organization, or bookstore, you can also suggest a future tour stop.

You can see dates of previous stops on the list at the right or the map at the bottom.



A Start-Up Slump Is a Drag on the Economy, how to start

The New York Times

How to start a business

Graphic | A Long Start-Up Slump

September 20, 2017

Unemployment has fallen, and the stock market has soared. So why has the economic expansion since the recession been so tame, with sluggish productivity and, at least until recently, anemic wage growth?

Economists say the answer, to some degree, can be found in a start-up slump — a decline in the creation of new businesses — and a growing understanding of what’s behind it.

A total of 414,000 businesses were formed in 2015, the latest year surveyed, the Census Bureau reported Wednesday. It was a slight increase from the previous year, but well below the 558,000 companies given birth in 2006, the year before the recession set in.

“We’re still in a start-up funk,” said Robert Litan, an economist and antitrust lawyer who has studied the issue. “Obviously the recession had a lot to do with it, but then you’re left with the conundrum: Why hasn’t there been any recovery?”

Many economists say the answer could lie in the rising power of the biggest corporations, which they argue is stifling entrepreneurship by making it easier for incumbent businesses to swat away challengers — or else to swallow them before they become a serious threat.

“You’ve got rising market power,” said Marshall Steinbaum, an economist at the Roosevelt Institute, a liberal think tank. “In general, that makes it hard for new businesses to compete with incumbents. Market power is the story that explains everything.”

That argument comes at a potent political moment. Populists on both the left and right have responded to growing public unease about the corporate giants that increasingly dominate their online and offline lives. Polling data from Gallup and other organizations shows a long-running decline in confidence in banks and other big businesses — a concern not likely to abate after high-profile data breaches at Equifax and other companies.

The start-up slump has far-reaching implications. Small businesses in general are often cited as an exemplar of economic dynamism. But it is start-ups — and particularly the small subset of companies that grow quickly — that are key drivers of job creation and innovation, and have historically been a ladder into the middle class for less-educated workers and immigrants.

Perhaps most significant, start-ups play a critical role in making the economy as a whole more productive, as they invent new products and approaches, forcing existing businesses to compete or fall by the wayside.

“Across the decades, young companies are really the heavy hitters and the consistent hitters in terms of job creation,” said Arnobio Morelix, an economist at the Kauffman Foundation, a nonprofit in Kansas City, Mo., that studies and promotes entrepreneurship.

The start-up decline might defy expectations in the age of Uber and “Shark Tank.” But however counterintuitive, the trend is backed by multiple data sources and numerous economic studies.

In 1980, according to the Census Bureau data, roughly one in eight companies had been founded in the past year; by 2015, that ratio had fallen to fewer than one in 12. The downward trend cuts across regions and industries and, at least since 2000, includes even the beating heart of American entrepreneurship, high tech.

Although the overall slump dates back more than 30 years, economists are most concerned about a more recent trend. In the 1980s and 1990s, the entrepreneurial slowdown was concentrated in sectors such as retail, where corner stores and regional brands were being subsumed by national chains. That trend, though often painful for local communities, wasn’t necessarily a drag on productivity more generally.

Since about 2000, however, the slowdown has spread to parts of the economy more often associated with high-growth entrepreneurship, including the technology sector. That decline has coincided with a period of weak productivity growth in the United States as a whole, a trend that has in turn been implicated in the patterns of fitful wage gains and sluggish economic growth since the recession. Recent research has suggested that the decline in entrepreneurship, and in other measures of business dynamism, is one cause of the prolonged stagnation in productivity.

“We’ve got lots of pieces now that say dynamism has gone down a lot since 2000,” said John Haltiwanger, a University of Maryland economist who has done much of the pioneering work in the field. “Start-ups have gone down a lot since 2000, especially in the high-tech sectors, and there are increasingly strong links to productivity.”

What is behind the decline in entrepreneurship is less clear. Economists and other experts have pointed to a range of possible explanations: The aging of the baby-boom generation has left fewer Americans in their prime business-starting years. The decline of community banks and the collapse of the market for home-equity loans may have made it harder for would-be entrepreneurs to get access to capital. Increased regulation, at both the state and federal levels, may be particularly burdensome for new businesses that lack well-staffed compliance departments. Those and other factors could well play a role, but none can fully explain the decline.

More recently, economists — especially but not exclusively on the left — have begun pointing the finger at big business, and in particular at the handful of companies that increasingly dominate many industries.

How to start a business

Graphic | Big Business, Getting Bigger The share of employees working at large, medium and small companies in the United States.

The evidence is largely circumstantial: The slump in entrepreneurship has coincided with a period of increasing concentration in nearly every major industry. Research from Mr. Haltiwanger and several co-authors has found that the most productive companies are growing more slowly than in the past, a hint that competitive pressures aren’t forcing companies to react as quickly to new innovations.

A recent working paper from economists at Princeton and University College London found that American companies are increasingly able to demand prices well above their costs — which according to standard economic theory would lead new companies to enter the market. Yet that isn’t happening.

“If we’re in an era of excessive profits, in competitive markets we would see record firm entry, but we see the opposite,” said Ian Hathaway, an economist who has studied the issue. That, Mr. Hathaway said, suggests that the market is not truly competitive — that existing companies have found ways to block competitors.

Experts also point to anecdotal examples that suggest that the rise of big businesses could be squelching competition. YouTube, Instagram and hundreds of lower-profile start-ups chose to sell out to industry heavyweights like Google and Facebook rather than try to take them on directly. The tech giants have likewise been accused of using the power of their platforms to favor their own offerings over those of competitors.

Most recently, Amazon openly called for a bidding war among cities for its second headquarters — hardly the kind of demand a new start-up could make. Mr. Morelix said the Amazon example was particularly striking.

“We’re saying that it’s O.K. that they shape how a city charges taxes?” Mr. Morelix said. “And what kind of regulations they have? That should be terrifying to anyone that wants a free market.”

In Washington, where for years politicians have praised small businesses while catering to big ones, issues of competition and entrepreneurship are increasingly drawing bipartisan attention. Several Republican presidential candidates referred to the start-up slump during last year’s primary campaign. Progressive Democrats such as Senators Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota have pushed for stricter enforcement of antitrust rules. In a speech in March, Ms. Klobuchar explicitly tied the struggles of entrepreneurs to rising corporate concentration.

In July, entrepreneurs achieved a mark of political relevance: their own advocacy group. The newly formed Center for American Entrepreneurship will conduct research on the importance of new businesses to the economy and push for policies aimed at improving the start-up rate. Its founding president, John Dearie, comes from big business — he was most recently the acting head of the Financial Services Forum, which represents big financial institutions.

“Everybody loves entrepreneurship, but they’re not aware it’s in trouble,” Mr. Dearie said. “If new businesses are the engine of net new job creation, and if new businesses are the engine of innovation, and new business creation is at 30-year lows, that’s a national emergency.”

Follow Ben Casselman on Twitter: @bencasselman



Business News & Financial News, Reuters, how to finance a business.#How #to

Business

How to finance a business

Asia-Pacific leaders say to fight ‘unfair trade’ in nod to Trump

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Exclusive: Rupert Murdoch twice discussed CNN with AT ?>


Finance Business – Online Monthly Loans, how to finance a business.#How #to

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How Do Business Loans Work, Lendio, how do business loans work.#How #do

How Do Business Loans Work?

The process will vary depending where you look for a loan, but here at Lendio, we make it easy to get a loan. Start by filling out our online application and entering some information about your business. When you re done, a personal funding manager will contact you to discuss your loan options. Then you simply choose your preferred loan and your funding manager will push through the application to the lender and finish up the final details.

It really depends on where you apply for your business loan. For example, in the last half of 2016, banks were only approving 20-25% of small business loans, where alternative lenders were approving 60-62% of similar loans. And as an online lending marketplace, we work with more than 75 lenders so there is almost always a way to find a loan that can work for you. But the only way to really know is to fill out an application and see for yourself!

The documents you’ll need to apply for a loan will vary depending on whether you apply with a bank, an online lender, or at an online lending marketplace. To fill out an application at Lendio, you’ll be required to know some basic information about your company and your personal situation. We don’t require you to send in any documents besides providing business account bank statements for the past few months.

The loan products you qualify for will likely determine the way in which, as well as how often, you’ll pay back your loans. Typically, the stronger your business and credit, the less frequently you’ll have to make loan payments and the more payment processing options you’ll have. In contrast, the lower your credit scores and business strength, the more frequent and determinate your payment options will be.

You ll be expected to bring personal background information, your resume, a highly documented business plan, signed personal financial statements, personal credit reports, your business credit reports, personal and business tax returns for the previous three years, an entire year of personal and business bank statements, documentation of collateral, and a number of legal documents. And that s before they start asking questions.

This really depends on your unique business. We offer many different specialized loan products to help fund your business efficiently. In some cases where a loan is going to be used for many different things we will offer several loans, each serving a different purpose. This helps you get the maximum amount of funding easily. Your funding manager will help you decide which option is best for your situation.

You’ll need to know some basic things about your finances and your company such as your approximate credit score and what industry your business will be in. You’ll also want to be able to show past experience in the field if you have any, and you may need up to two years of personal tax returns depending on the type of startup loan options available to you. Other than that, just apply and pray! Just kidding, you ll be fine.

A commercial mortgage is another term for a commercial mortgage. These loans work by utilizing the collateral value of real estate you own in order to get funding for your business. A commercial real estate loan is most commonly used to turn your equity into needed working capital, refinance your real estate to increase cash flow, or to purchase a new property for expansion or growth.

A VA loan is a personal loan offered by Veterans’ Affairs to most members of the military, veterans, reservists, and National Guard members. While VA loans are restricted to mortgages, refinancing, rebuilding, and expanding or extending a personal home, the SBA does offer a loan service called the “Patriot Express” which is a more traditional business loan to help veterans start their small businesses.

Some government agencies do offer small business loans or grants specifically for minority-owned businesses. They’re excellent programs and we encourage anyone who may be eligible for those offers to check them out and see if they qualify. Unfortunately, As a private business, as well as an online lending marketplace, we do not have any options that we can offer exclusively to minorities.

The most commonly accepted definition is loans of a relatively small dollar amount used to help small businesses and entrepreneurs grow or sustain their businesses. The dollar amounts, according to bank definitions, range from $500-100,000. The average micro loan in the U.S. is just $13,000, but businesses in the United States only receive a very small percentage of the micro loans around the world.

How do business loans work

How do business loans work How do business loans work How do business loans work How do business loans work



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How to start a business

Advancing Victorian Manufacturing is the Victorian Government’s blueprint for growth of manufacturing in Victoria.

How to start a business

You can do good and make money at the same time. That’s the message from Bessi Graham of The Difference Incubator.

How to start a business

Victorian Government support is available to businesses experiencing significant rises to gas and electricity costs.

How to start a business

Small Business Victoria Workshops are low cost, practical and run by experts in their fields year round across metro and regional Victoria.

How to start a business

To help get your business moving, the Small Business Bus is now touring Victoria bringing expert advice and assistance to you.

How to start a business

Find everything you need to know about grants and assistance programs to start, run and grow your business.

How to start a business

ABLIS is a free online tool which helps you find government licences, permits and registrations applicable to your business.

Small Business Victoria Update

Tips, tools, news and events to help you run and grow your business – delivered fortnightly.



Home, Business Victoria, how to start a business.#How #to #start #a #business


Site Navigation Menu

How to start a business

How to start a business

Advancing Victorian Manufacturing is the Victorian Government’s blueprint for growth of manufacturing in Victoria.

How to start a business

You can do good and make money at the same time. That’s the message from Bessi Graham of The Difference Incubator.

How to start a business

Victorian Government support is available to businesses experiencing significant rises to gas and electricity costs.

How to start a business

Small Business Victoria Workshops are low cost, practical and run by experts in their fields year round across metro and regional Victoria.

How to start a business

To help get your business moving, the Small Business Bus is now touring Victoria bringing expert advice and assistance to you.

How to start a business

Find everything you need to know about grants and assistance programs to start, run and grow your business.

How to start a business

ABLIS is a free online tool which helps you find government licences, permits and registrations applicable to your business.

Small Business Victoria Update

Tips, tools, news and events to help you run and grow your business – delivered fortnightly.



3 Ways to Finance Your Business, how to finance a business.#How #to

How to Finance Your Business

Businesses need financing for start-up costs or to fund expansions. Depending on your business, you have several options for raising the necessary capital. In addition to using your savings, the most common methods of financing are debt financing by obtaining a loan and equity financing by selling shares in your business. [1] However, there are other creative options, such as purchase order funding, crowdfunding, or using a credit card.

Steps Edit

Method One of Three:

Obtaining a Business Loan Edit

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Method Two of Three:

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