Posts Tagged small business owners


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Is Chapter 11 Bankruptcy Just For Businesses?

Posted by in Uncategorized on March 19th, 2010

Individuals have a very different set of circumstances to consider than large corporations. In the worst case, a corporation can simply liquidate its assets and cease to exist. An individual has no such option. Though they too can liquidate their assets, they must continue to live and work in society and therefore must take extreme care to ensure they make the right decision.

Most individuals who are forced to declare bankruptcy choose Chapter 7. In Chapter 7, the person must liquidate, or sell off, the majority of their assets and use the proceeds to repay creditors. After the proceeds are exhausted, the remainder of the debt is discharged, with a few exceptions. Those with few assets compared to their level of debt usually find this to be the best choice. Other individuals, however, may which to keep their assets. This is especially true in the case of small business owners whose business is viewed as a personal asset. For these people, Chapter 13 is available. Chapter 13 allows the person to retain all or most of their assets, though control of the assets is given to a trustee until the debt is satisfactorily repaid.

Some individuals may find the idea of having a trustee in control of their assets unappealing and out of the question. Others may simply not qualify for Chapter 13 due to a high amount of debt, especially true of asset intensive small business owners. For these people, the corporate route of Chapter 11 is often the best or only route.

Chapter 11 allows the person to stay in control of their assets. Instead of having to make monthly debt payments, they may be eligible for quarterly or even bi annual payments which fit more closely to business operations. Also, under Chapter 11, there is no set time limit for the repayment of debts. Under Chapter 13 the repayment period can’t exceed 5 years.

Chapter 11 is more expensive than Chapter 13 and its more complicated statutes demand the services of a skilled Chapter 11 bankruptcy attorney. Paperwork requirements alone can take up much of your time if you are unfamiliar with them. Regardless, many people still find Chapter 11 to be their best option when faced with the unpleasant situation of excessive debt.

If you would like to learn more Chapter 11 Bankruptcy Information you can do so by visiting http://chapter11bankruptcyinformation.org.

Article Source: Is Chapter 11 Bankruptcy Just For Businesses?

Tags: chapter 11 bankruptcy, chapter 11 bankruptcy attorney, large corporations, paperwork requirements, small business owners

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Debt Relief for Small Business Owners

Posted by in Uncategorized on March 11th, 2010

In the recent years, a lot of businesses and companies went bankrupt. Many people lost their jobs, which led to huge debts. Regardless of the type of debts you’ve obtained, you may need to find a suitable debt relief program offered by the government.

Government grants are not only aimed for companies, organizations, or agencies but also for individuals. For those who own small businesses, they can turn to SBA (Small Business Administration) for financial assistance to stay afloat. The SBA receives government grants that will not only benefit the organization but also the small businesses in the local area.

Aside from providing grant money, you can also participate in the training programs offered by the SBA so that you can enhance your competency. Hopefully, with the aid of the SBA programs and other forms of government grants, people can get out of debt. Another affiliate company is the SBDC or Small Business Development Centers.

The grants awarded to SBA and SBDC are used to help small businesses with free training and other forms of financial support. Credit counseling is also provided for free to teach small business owners on how to manage their finances.

You should be aware of the common misconception about the government grants. It would be next to impossible to secure a grant on your own. The federal government will not give you grant money directly because the grants are obtained by making a proposal.

The proposal should be aimed at improving the economy and other related fields. There are agencies that companies and organizations can solicit for help to secure the grants, but they are also entitled to submit regular reports as proof that the money is used properly. The SBA and the SBDC are just two examples of companies that receive government grants.

For every problem, there is always a solution, and if you are having a hard time in managing your finances, you can always seek for debt relief. If you own a small business, you’re in luck because you can check out the two companies mentioned above. Apply for their free services so that you cab alleviates your financial status.

***Update***

I have done a bit of research for you. These Government Grant Experts can help you get the grants you deserve by helping you get out of debt fast. You can find out if you qualify for a Government Grant for free!

Click here to fill out a short form to save your finances and get out of debt as early as this week!

Article Source: Debt Relief for Small Business Owners

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Tags: sba programs, small business administration, small business development, business development centers, small business owners

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Debt Factoring-a financial backbone

Posted by in Uncategorized on March 1st, 2010

It is true that the debt factoring service provider will purchase the accounts receivable/invoices from the business owner. As a businessman, you will be able to sell the invoices to companies who are dealing in providing the receivable factoring services. You will come across many business owners who are not aware about debt factoring options. It is one of the best modes of financial tool that can assist you to scrutinize financial problems that will assist you to enhance your business.

If you explore the history then you will be able to know the debt factoring was used to streamline the trade. These days, many business owners are dependent upon factoring. Receivable factoring options can be considered as a financial backbone for many. For businesses in various fields, factoring options can be useful.

If you are having a small business then debt factoring will be a blessing to enhance your financial situation for your business. Factoring options will allow your company to get the required capital for operational needs. Therefore, many small business owners are dependent on these effective and useful services. You will be able to able to increase the cash flow with the assistance of receivable factoring service provider.

There is no limit, when it comes to professional services offered for factoring. The receivable funds will be collected in proper required ways. Factoring will be able to offer instant results. It is one of the most flexible options that is commonly availed by various business owners. You should know that factoring will enhance the growth of your organization. Your business financial needs can be solved with the help of factoring. It will allow you to accomplish the desired financial growth, without increasing the amount of debts. As a business owner, you will be happy to know that factoring will allow you to enhance the production of your company. At the same time, it will also assist you to increase the business sales. Therefore, profits can be generated with proper debt factoring services.

If you are thinking that factor will provide lending services then you have a misconception. They will not be providing loans. They will buy your accounts receivable and you will be paid for the same. Rather then availing loan, you should plan to have the payments from customers. Unwanted interest over the loan will be trashed with the assistance of proper receivable factoring services. Instant revenues can be generated with the help of factors. You will be happy to know that factors will not charge any interest over the services that they provide. However, they will purchase the business accounts invoices at a discounted rate. You should not compare the purchased accounts receivables with loans. Purchased invoice is your own money, which you owe from your customers. These invoices will be purchased by the factor and you will be paid for the entire purchase. Thereafter, the factor will be responsible for availing the amount from the customers. It is better to understand the disadvantages and advantages of debt factoring before you sign the agreement to undergo its process.

The author has written a lot of articles regarding Debt Factoring, Debt Consolidation. To find more about Debt Factoring Basics visit Receivable Factoring Basics.

Article Source: Debt Factoring-a financial backbone

Tags: factoring service, receivable factoring, small business owners, receivable invoices, financial backbone

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Credit Cards For Your Small Business

Posted by in Uncategorized on December 26th, 2009

Owners of small businesses who have a credit card specific to their own business are at a great advantage in so many ways. However if you as a business owner are not careful, it could have many disadvantages too. Thus understanding exactly what the credit card is offering allows you as the small business owner to take full advantage of your credit cards abilities and offerings as well as getting you, the business owner, actively involved in your business’s finances. Many small business owners charge considerably to their business credit cards and aren’t even aware of the certain terms and conditions set forth by the company. This is where small business owners make their first mistake. Knowing what your credit cards terms and conditions are could and will open up a lot of rewards which could play an integral role in benefitting your company.

Small business owners should not only know about these terms and conditions but should also take into account the specific security aids and should take full advantage of these security aids. For example; you can prevent employees from over spending as well as yearly consolidated statements. A huge advantage of credit cards, especially for small businesses, is the ability to closely monitor your company’s statements on a month to month basis as well as the use of one method of payment for your entire outfit. These statements will provide you with up to date evidence on all transactions that were run through your credit card putting you in better control of your businesses expenditure as you know exactly who you paid, at what time and why, also allowing you better financial freedom within your business. You as the small business owner can now have the added advantage of knowing exactly how much to budget every month and how to spend your money efficiently and effectively in aid of strengthening your business worth.

A part from the many features, one excellent feature is you can have more than credit card facility within your business; this allows you to further monitor your employees and their expense on the company. Now you can take control of that enormous expense on client wine and dines and business events. Taking control of these particular areas is all possible thanks to credit cards and it is very easy to do. Limits can also be added at your stipulated level on these credit cards, further increasing your control on your and employee’s expenses.

As with all credit cards, there are negatives. Overspending and lack of monitoring can have a negative effect on your business and can seriously damage your personal rating, but if these areas are closely monitored and checked, then you as a small business owner with a credit card will reap the many rewards and benefits credit cards have to offer. Credit cards, if managed properly and effectively, will do no less than further your company in a fast growing, hungry economy and give you that early retirement you have always dreamed of!

Danny Aaron manages the website http://www.creditcardsandloans.co.za, a website devoted to offering the best credit card information for consumers in South Africa.

Article Source: Credit Cards For Your Small Business

Tags: business credit cards, small business owners, small business owner, first mistake, business worth

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Why I Need a Business Visa Credit Card

Posted by in Uncategorized on October 16th, 2009

If you have a small business that relies on non-capital assets (such as services), then you will have a hard time getting traditional bank funding for your business. That is one of the top reasons that new small business owners obtain credit cards. The advantages can be tremendous when cash flow is slow and you need to pay bills. If you are able to pay your credit card bill in full every month, then you could be better off than someone with a traditional business loan from a bank because you don’t pay interest.

When it comes to business loans, banks prefer to lend money to businesses that have capital equipment like a forklift or a printing press. But most of today’s start-ups are service providers, and the owner’s capital equipment is basically their brain, and banks have not yet figured out a way to put a price on that.

There are many reasons to use a business Visa or other credit card, however. Many business cards come with software that helps you track expenses, which in itself is easier if you pay all your bills with your card and then have one lump sum bill to Visa at the end of the month.

If you have employees who will need to have a company card, you can impose different spending limits on these cards, and again, you can easily track expenses with your computer.

For the first few years of your business’s operation, you will almost certainly have to guarantee your business credit card with your personal credit history. So the better your personal credit rating, the better the terms you’ll get on your business Visa. After a few years of prompt payment and trouble-free borrowing, many card issuers will let you separate your business credit card history from your personal history. A good history with your business credit card may make it more likely you can get a bank loan with more favorable terms when your business expands.

The fact is, today credit is tight, and only those with sterling credit and a clear business plan can get bank loans for businesses. Having a business credit card may be your only choice. But keep in mind, you can have a business Visa or other credit card without actually using it. You can wait and use it during times of tight cash flow. This will make it easy for you to keep things operating smoothly without incurring huge interest charges.

Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.

Article Source: Why I Need a Business Visa Credit Card

Tags: card issuers, credit card history, personal credit history, small business owners, business credit card

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A Quick Option in Tight Times: The Merchant Account Cash Advance

Posted by in Uncategorized on September 15th, 2009

What lousy timing! Just when you seemed to pull everything together to run your own business, you run smack up against the worst economic times this country has weathered in decades. In spite of the adage about owning a home being the American dream, many small business owners pour their hearts and souls into their work. This, for many, embodies a lifelong dream: seeing your hard work and unique vision come to life as a successful business.

However, many of those dreams die before they have a chance to be fully realized. Most often, a lack of funding causes the problem. This problem is likely to become more widespread as banks become more skittish about loaning money. Banks don’t like risk, and until you’ve established a long, profitable track record, they’re going to be reluctant to loan to you. If your business is fairly new, a bank will look at your personal credit, so you’d better hope it’s stellar if you want to be approved. And even then, you’ll be going through a lengthy process for approval. Sometimes the process can drag out so long that the money barely comes through on time.

But what if your business is experiencing some success, and you merely need some funding to invest for expansion or carry you over to your next season? Isn’t there anyone willing to take a risk on you? The answer may lie in funding other than a traditional bank loan.

One such type of funding is a merchant account cash advance. For this type of funding, you need to have established some sales history through your business, but it doesn’t need to be as extensive as that required by a bank. A merchant cash advance is based upon credit card sales, and the funding comes through quickly, with a simple application process and without delving into your personal credit history.

This funding will not apply if you don’t accept credit cards at your business. But it may be time to consider doing so. No matter how large or small your company, accepting credit cards can be vital to business success. It’s simple and affordable to set up merchant credit card services, and utilizing them can ensure that you don’t lose any sales, as well as making your business more internet and phone-friendly.

Yes, even though careless misuse of credit helped cause our current economic woes, you may discover that utilizing credit card sales to your advantage helps you to continue building your personal American dream.

Find the Merchant Cash Advance that fits your needs and your budget. Easy qualifying and simple repayment plans can relieve the stress of owning your own business. Contact 7DayFunds for your business cash advance today.

Article Source: A Quick Option in Tight Times: The Merchant Account Cash Advance

Tags: money banks, personal credit history, small business owners, traditional bank loan, accepting credit cards

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