It’s Not Impossible to Take Out a Business Loan
from our BLOG-magazine
As a result of the financial crunch of recent years, getting business loans may not be as easy as it once was. The lax lending standards that contributed to the financial crisis are no longer in play, which has led to stricter qualification criteria.
The difficulty experienced by new business owners is that many lenders want to see extensive business history, a strong bottom line, and a solid business credit track record, before they will consider making a business loan. But where does that leave new businesses?
at our Money Management BLOG
Business Selling Tips
From the Fieldquestions-answers-recommendations for business owners and acquisition managers.
For additional information, contact the Novars Group
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How to Establish Credit for Your Small Business
from our BLOG-magazine
If you manage a small business, access to credit may be an essential ingredient to help your business thrive. Credit allows your business to buy products and services, a convenience that may not be readily available with cash. Credit can also fill in the gaps, providing funds needed when receivables are lagging or cash flow is erratic.
at our Money Management BLOG
Pros and Cons of Seller Financing
Small businesses that are being sold in this tough economy are almost guaranteed to go with seller financing in order to close the deal. Most lenders have tightened up credit to the point where only the strongest deals have a chance of receiving bank backing.
Gone are the days when banks routinely approved "goodwill financing" as lenders are much more interested in financing what is tangible than ethereal attributes such as brand perception, customer loyalty or employee happiness. While those things are important for any business, banks are looking to finance concrete numbers only.
Getting Your Business Sold
So, what does this mean for you if you are selling your business? Is owner financing of the last resort or are there some aspects of this option worth considering?
With the tighter lending restrictions, bankers who are willing to finance small business sales are only covering 50-60 percent of the purchase price - the buyer or seller must cover the rest. With buyers typically putting 15-20 percent down, the remaining funds need to be financed. That is where the seller comes in.
Sellers aren't usually thrilled to offer financing for their businesses, preferring to close the deal and walk away with no further obligations. But, that option leaves open the possibility for the seller to take back the business if the new owner doesn't meet certain performance benchmarks.
Securing Your Position
Benchmarks ensure that the new owner doesn't drive the business into the ground without paying the consequences. If the business begins to flag, then the seller can retake possession to protect his stake. Of course, under that legal arrangement the buyer loses his down payment as well as his interest in the business.
Small business sellers may look at seller financing with skepticism especially if it leaves open the possibility that they may have to run the operation again if the new owner can't. But the leverage exerted by the seller could actually help the buyer work diligently to make sure that his own interest in the company is preserved.
Seller financing may not be the favorite choice of either party, but if that's what it takes to get the deal done in 2010, then that is what needs to be considered.
View more money management ideas at our Money Management BLOG
Is Your Business Fundable?
from our BLOG-magazine
As a current business owner or even a new company, you already know the importance of having significant financing to start, grow and expand your business. Obtaining business financing is a major road block for many business owners.
So you know what you need. But like so many others, or what you might not know, is how to get it.
Taking the FREE business fundability test will show you how fundable your company is right now.
A common mistake that business owners make is applying for financing before their company is ready. And this results in being declined. That is why the business fundability test is so important. There is no point in applying for business financing if you are not ready or if your company is not fundable yet. The FREE business fundabililty test is the first step to ensuring your business will have access to financing and credit whenever it needs it.
Our patent pending test reviews the critical financial measures that lenders and credit providers are looking for and will show you which funding programs are available to you right now. It will also produce a report that will help you understand from the lender’s prospective the strengths and weakness of your company. If you are not fundable yet, don’t worry. We will show you exactly where your company falls short and can provide solutions to increase your business funadability as quickly as possible.
So, is your company fundable? Find out by taking the FREE business fundability test now.
How to Create Brand Awareness for Your Small Business
from our BLOG-magazine
Your small business must compete with other businesses, both small and large, with the latter having the financial muscle to tell their story repetitively. A recognizable name is golden, something that can help you stand out from the competition and sell your products easier.
Your message must be consistent, but it may also need to be adjusted to send a certain version of the message to the right audience. Not every announcement you make about your business will cost you, so strike the right balance of paid and free promotion to get the word out.
at our Money Management BLOG
Why Online Directories Still Matter for Small Businesses
from our BLOG-magazine
In this day, there are about a thousand different methods that a small business can employ to stand out on the web — though, of course, some are more effective than others. SEO, social marketing, and even online reputation management are big businesses. The place of the online directory — once a solid way to gain online visibility — has, meanwhile, fallen by the wayside.
at our Money Management BLOG
Advertising Options for Small Businesses
from our BLOG-magazine
If you own a small business, you may find that your advertising budget is too limited to effectively penetrate your market. You could expand your budget, but that means allocating money from other areas of your business, funds that you simply cannot spare. Without a sufficient advertising campaign in place, you won’t be able to reach new customers. What a vicious cycle!
at our Money Management BLOG
View more money management ideas at our Money Management BLOG
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