Solutions For the Business Financing Puzzle

The comparison of small business financing to a puzzle is not meant to diminish the critical importance of success by business owners when they encounter difficulties with commercial lenders. The most practical goal for using a puzzle analogy in this article is to help describe an otherwise complex working capital and commercial finance situation in a more understandable way. The current commercial loan stakes for commercial borrowers are high because their business survival might be hanging in the balance.

In using a puzzle comparison, this analogy provides an opportunity to evaluate the commercial loans puzzle (a challenging commercial lending climate) as something that tests the ingenuity of small businesses to solve. When reviewing the current small business finance environment, an increasing number of commercial borrowers are comparing what they are finding to a puzzle with pieces scattered everywhere. The ongoing descriptions of commercial financing in terms of solving a puzzle should provide a reasonable reflection of the underlying problems that cannot be ignored by a prudent business borrower. The growing confusion represented in small business owner interactions with their current bank concerning available business financing options is no doubt also reflected by such an analogy.

Recent experiences by many commercial borrowers with their business banker probably resemble a constantly changing level of difficulty for an already confusing small business finance puzzle. It has become a common experience for banks to take over two months for a working capital financing process that should realistically be completed in three weeks or less, and in many cases even then the lender does not complete the process for providing the requested working capital to the business which has been waiting without any awareness that funding might not be finalized. Suggestions that commercial lenders have misrepresented what is required to finalize commercial loans are emerging in too many reports for borrowers to ignore.

For a number of years most business financing has been more complicated than borrowers realize. Recent events have made these complexities more obvious primarily because the eventual results have changed so drastically. It is situations like those noted above that cause business borrowers to feel like some of the required puzzle pieces have been removed from the board. In effect that is exactly what has happened in many cases because fewer banks are now providing small business financing. When this happens with the bank that a business has previously relied upon for their small business finance needs, a business owner is indeed likely to feel as if the commercial finance puzzle pieces have disappeared.

By continuing the puzzle analogy, there are two practical options for commercial borrowers to analyze and consider. First, in an approach which can lead to a small business finance puzzle which will involve “fewer pieces” if executed successfully, business owners should assess the potential for a reduction in their commercial debt requirements. Second, by looking for alternative commercial lending sources, small businesses should attempt to find the “missing pieces“. As with any complex business financing situation, both of these (as well as any other realistic commercial loan choices) should be thoroughly reviewed with the help of an experienced expert.

Home Business Ideas You Can Use To Start Your Own Home Based Business Today

When you want to start your own home based business there are all kinds of ideas that you can use. You want to make sure that you start a business that you can be passionate about because this will help you make your business a success. So, if you want to start your own business but don’t know what you want to do, all you need are home business ideas to help you get started.

Here are some of the different home business ideas that you can use to start your own home business today.

One: Start an eBay business This is easy to start and you can get started for free. All you need to do is to sign up for an account and then find the products that you want to sell. Once you have the products to sell, you set up an auction and then wait for it to sell. You can even sell products from your own eBay store if you want to.

Two: Turn-key businesses are another great home based business to start because with these opportunities everything is set up for you. All you have to do is to get a domain name and sign up for web hosting. Then you get started advertising your new business

Three: Affiliate programs – You can start a home based business for free by promoting other people’s products. You just find a couple of affiliate programs you want to promote and then sign up and start promoting them. A lot of people prefer this home business idea over others because you can get started immediately and you get everything you need to get started.

Four: Create your own products – This is one of the home business ideas that will be harder to start your home based business with because you will have to set everything up yourself or hire someone to do it for you, which can get expensive. Products that you can create are eBooks, PLR packages, software and anything else that you know other people are looking for.

These are just a few of the many different home business ideas you can use to start your home based business. There are so many others. You will want to do some research to find out about all of the different business opportunities that are available. Just remember that you want to choose your business carefully because your success will depend on you liking what you do.

Summary: Do you want to start your own home based business but you are not sure what to do? Then you need some home business ideas to help you get started. You need to choose your business carefully because your success will depend on you choosing the right one for you. Find out what some ideas are now.

Small Business Financing – Case Study

Generally, borrowing funds from alternative debt financing sources is more expensive than taking out a traditional bank loan. However, many times companies either do not qualify for a traditional bank loan or credit line or must pay very high interest rates, include a co-signer/co-borrower, and/or attach communal assets. In that case, these alternative sources are excellent financing sources. Remember, banks determine the interest rate charged based on risk. The highest credit grade corporate customers are charged prime. All other businesses are charged prime + a risk factor. If a bank will not provide financing, the perceived associated risk is higher. These alternative funding sources mitigate their risks by specializing in a particular industry or asset class and compensate for this risk by charging higher fees and/or interest rates.

Example- SBA loan.

A data housing firm, Acme Technologies, made the decision to spin off its data management operations in preparation for its strategic acquisition by a larger corporation. The data management division had largely gone unnoticed despite its successful management by the division’s management. Needing to recoup some value from the division, which Acme’s CFO suspected might be terminated by Acme’s acquirer, Acme’s CFO made the offer to sell the business to the division’s management.

Although the division’s management team was skilled in a number of functional areas including sales, operations, and cash management, they had no experience handling complex financial transactions. They needed guidance so they used their network to find an advisor. They approached a U.S. Department of Commerce-sponsored Minority Business Enterprise Center (MBEC) located at a renowned university for assistance. The MBEC assigned a business advisor to help them.

The business advisor advised the management team to create a company to buy the assets of their employer. She then found a lawyer that completed their incorporation documents and successfully registered the company within three business days. Next, she spent hours requesting and compiling documentation to create an Executive Summary, pro-forma financials, and management team resumes to present to banks and direct lenders. Finally, she used her relationships with financial institutions to locate three entities that financed acquisitions and worked rapidly.

The CFO initially gave management six weeks from the time the offer was made to complete the transaction. The business advisor pushed back in conversations with the CFO and wrangled an extension. Several issues arose which the business advisor worked through quickly with the management team.

Two institutions, one direct lender and one community bank, emerged as the front runners. Both were highly responsive and flexible and recommended the use of an SBA loan. The community bank met face-to-face with the management team and championed the other banking functions it could provide, along with the long-term benefits of working with them. Subsequently, the management team opted to obtain financing from the bank.

Five weeks after meeting with the business advisor, the community bank provided a Letter of Commitment (LOC) to finance the acquisition. Three weeks after obtaining the LOC, the management team closed on the financing and the purchase of the division and began operating under the new company name, Acton Technologies.

Feature Your Ads and Start Your Business Today!

Is your business at its cradle stage? Wondering how will it grow in a very short time? Are you thinking of advertising your business but don’t know how to proceed? Then this article is going to show the way ahead to prosper your business today. Advertising your classified is not at all a tough job these days. Rather there are sites which advertise your classifieds absolutely free! This feature is a good initiative for the fresher in their business. There are various other packages offered like bronze, silver, gold and even basic according to your affordability. Each of them is having their own listing for a given period of time.

At its initial stage, you would like to get comments for further improvement of your promotion. This interactive feature does surely boost your business. The tags given to your classifieds give a specific search for your buyers. Keeping an account of your invoices is a must for your business. These websites do reduce your tension of maintaining these invoice records. Pending in voices can seriously cause headaches later on. You can give warnings to your clients with this facility. Remember that the purchase order number and the tax payments are mentioned in the invoices. They do also make you aware of the discounts availed to the buyer in your business. Now you can see the advantages of posting your ad in?

Do check the orders that are made along with their details informing you about the deals that are still in your hand. The VAT identification number verifies the identity of the buyer. Under the “Add” option you can enter new classifieds to your account. The ‘Parent’ and ‘Category‘ option give urgency to the more directed search to your buyer. You can further give a detailed account of your product by describing the product details, brief contact details (keeping clarity in your business location). You can also upload the relevant videos, sounds and even photos for your business promotion. The private setting gives you the right to choose your customers.

Don’t miss out to check out the “Sale Pending” in the classifieds list. It helps to keep an eye on the sales of your products. Only few of the websites give these added advantages to the user. The databases for these detailed information like pending invoices or the sales pending options are provided by the administration of the website. This ensures total security to your business transactions. Definitely, the pending approval is needed for further negotiations between the seller and the buyer. Before you proceed to send the invoices to the buyer, make sure to brush off the records of the previous negotiations made with them. This would make a hassle free environment in your business.

These lucrative features are available in European Classified sites like you can access the Google map with the list of recent and latest featured classifieds. That means you can check the origin of the classified. Browsing the classifieds on the basis of states or region saves time for your search.

So post your classifieds today and prepare to be a successful businessman!

Start Your Online Business Today – Use an Easy Online Website Builder

Are you frustrated because you want a website, but lack technical skills? As you stroll through many websites, they are made of simple templates from website builders. You, too, can start your online business today with an easy online website builder. All you have to do is find a hosting service with the perfect templates for your business. In this article, we will review the basics of starting a website with online tools.

Website Design

An easy online website builder has all of the tools you need for an online business. Majority of the work is done for you; all you have to do is add your content. Now, the ability to create a full-functioning website in minutes is a plus. You can create mini affiliate websites can increase your flow of income online. The website you decide to use is only one part of the equation for a successful online website. What are you going to do? Who is your audience? Who is your prospect? What kind of customers do you have now? These questions must be answered when you are deciding your template, pages, and content.

Do you want a fancy template or a simple (easy-to-read) website? The builder will only request your information in the beginning. You can change at will thus giving you complete control over your website. With the easy online website builder available, you can create as many websites as you want without depending on someone else to handle your website. Think about it, all of the tools you need are there and changes will show up on your website instantly.

Search Engine Optimization

Even though changes are inevitable, search engine optimization requires skill and persistence. In a changing industry, an online business must remain advantageous for its owners. Search engine optimization requires diligence and constant research. If a business owner is in need of highly ranking keywords, he must do the research. Your research can help your business remain in a browser’s site. The basics of search engine marketing results in more sales if your website is relevant to your prospect’s needs. So, think of the purpose of your site and what you are offering. Then find the relevant keywords and integrate it into your site’s content. The strength and relevance of your content could determine how successful your website will be. In most online website builders, you can now add your keywords with ease. Check with your hosting company to see if this feature is available on your website then use it to your advantage.

The idea of easy beginnings can not make up for the truth. It is hard work to begin an online business, even if you start today. The basic tools (online website builder) and the basics of business remain. You have to consider what you want your business to accomplish. If you do not understand or know, you have to do the research to get an idea. Do not start an online business abruptly. People can Google your sites if your name is mentioned. People can examine your online history and consider you a threat. You must take your time to succeed in online business and internet marketing.

Internet Business Ideas

Technology has made the world a global village where people can now do virtually everything just by the click of a mouse – from shopping, to making online bookings to even conducting businesses online. Indeed, life could not be easier. There are many internet business ideas that are viable and which you can easily realize through the internet. Internet business ideas are the easiest way of making money at the comfort of your home.

Before you can pick on a particular internet business idea, it is important that you carry out a thorough research. This is because, although there are numerous ideas that can appear viable not all may materialize into a good business deal.

Starting an online business always proves to be a challenge to many people. This is due to the fact that nobody is sure of exactly what they want to do and whether what they want to do will actually pay off. As you decide on a particular internet business idea, consider your interests. Be sure to pick on a field that interests you as this will enable you run the business in a more smooth way as you will find yourself enjoying.

If you are not sure about what is the best internet business idea to pick on, there are a couple of sites on the internet that can help you make a concrete decision. It is important that you take your time before you can settle on a particular idea as hasty decisions may see you make a wrong move.

Once you have searched over the internet and you have settled on a particular business idea, the next step which is one of the most crucial steps is making the world aware of the existence of your business. This you will do by promoting the products and services your online business offers. Should you decide to just sit back and wait for clients? You will be doing yourself a great disservice as people cannot look for that which they are not aware of its existence. There are many ways to go about promoting your business and you will find the internet very useful in giving you tips on how to go about promoting your business successfully.

One of the most common ways you can make a handsome income online is through blogging. Unlike in the past, blogging has become one of the leading online income generating business especially for stay at home mothers. Blogging brings income through review of products or when your write about specific ideas and topics. You will also get some income from the advertisers who advertise on your blog.

eBay is yet another perfect idea that you can use to make great income via the internet. This involves selling items on eBay. Quite a number of people now buy items from thrift stores and yard sales which they then later sell on eBay. Items like antiques, clothes that are branded and crafts are the best items to take on an auction site.

Why Your Business Needs International Trade Show Participation

Many companies these days are thinking about the portion of their operation that can be cut back just because of the serious trading climate prevailing. So, they begin to find options for cutting costs wherever possible and even though, marketing is highly important for any organization, it is the cost consuming area as well. So, entrepreneurs are looking for ways to cut down on the marketing expenses. When this is the case, trade shows would be the best alternative. Here, when talking about this alternative, if they wish to take their products or services to international audience, international trade fair show participation would be the best and cost-effective idea. This is because when they participate in this type of international trade fair exhibitions, they need not follow any other strategies as this strategy alone can bring in more and more customers.

Here are some of the reasons why participation in international trade fair show then and there would be the ideal marketing tool:

They are valued by buyers: Buyers make use of these shows extensively for augmenting their understanding of suppliers and the providers of new and existing solutions for the problems pertaining to their business. Buyers do this just because of the fact that they can find many suppliers in a centralized location and this provides them an easy opportunity to compare the products or services provided by different suppliers so that they can select the one who can rightly satisfy their requirements.

The numbers add up: Generation of qualified lead will cost more as compared to generating leads from international trade fair exhibitions. In other words, this is the best and affordable opportunity for businesses. This in turn will increase the customer-base for companies.

Prospects: Generally, company buyers see international trade fairs as the gathering of potential solution providers and business partners. It will be possible to see concentrated pool of potential buyers and as all of them can be found in a single place, prospects hunting can be done easily. Businesses can get the opportunity to interact with prospects and even they can get the opportunity to close the deal in the trade fair itself.

Quality attendees: Not only normal people, but also many CEOs and people in top positions attend the international trade fairs and this will provide the opportunity to find even companies to develop business contacts as well.

Reasons to Start Business Today

We do not normally think of getting into business, in fact since there is no road map for success, it scares us. We feel that business is risky and there is no guarantee that we will succeed. A pay check is assured and most of us settle for that. Actually one of the often asked questions is ‘Why start business?” Well, the profit you earn is far better than wages for one, and it makes the risk worth while. Moreover you are not limited just to a salary.

Another great reason is that you are in control, even though it is a responsibility. The feeling is great even though it is not quantifiable in terms of money. It is great for confidence. Another big plus is that you do not have to live in fear of losing your job. This makes you take initiative and when the steps you take succeed, you are rewarded monetarily. It is true that it is a risk but if you fail, there is no one who will fire you and no one is going to blame you for mistakes and failure. So this risk is very limited.

The good thing is that starting a business today is much easier than it was a few years ago. It was all about location then, but now there has been a paradigm shift. Location is still important for land based business, but thanks to the internet, a business can be launched from your living room and it can have a world wide reach!

What you need to start business today is rather simple.

1.) You need a great idea, something that fulfills a need in people. You should feel good about it, and you can sell it.

2.) You really need to be passionate about having your own business since it is not a walk in the park. You need to understand that it will take hard work, but can be successful.

3.) You need to have a plan, a step by step well thought out plan so that you get to your goal easily without losing focus.

4.) You need to keep revising the plan, modifying it so that you can chart out your path and map the growth.

5.) You need to have a support group. The best thing to do is join a business plan with a strong mentorship or get a business coach. Your interaction with your mentor will help grow your business based on your own personality and your personal needs.

6.) You need to like the business; you need commitment so that you can identify with it. Otherwise you will lose interest in the gestation phase and quit.

7.) You need a strong accounting system so that you can control costs. Most of all you need to be able to survive for two to three years until the business starts giving returns. If you have a job, do not quit it immediately. You need to survive while the business is growing and getting established.

It is easy and economical to start a business today. You do not need to rent an office or even spend a lot of money stocking up goods for a retail outlet. The rewards are so generous, far beyond a weekly or monthly paycheck. Start business now, its so simple today.