Getting A Business Financing Loan

Business financing loans are a line of credit which help people who are in business. There are different kinds of business financing loans that are offered to different lenders either to raise funds or loan capital to your business in order to expand your company.

Although there are many ways also to finance your business and one should have sufficient cash flow within the existing business you have so that the lender will be able to finance the growth of your company by its own means or you can turn to a bank or other financial institutions that can provide different variety of loans.

Having a business financing loan is not as easy since they have some criteria or financing programs where in you meet the following criteria such as:

Your business must have commercial customers
Your business must be established and must have consumers or customers.
They don’t finance on real estate projects

Some of the business financing programs:

Business are available of every size
Easy to obtain
Have many advantages over conventional business loans
Can be set up in a few days

There are some business financial loans that don’t require you to have a good personal credit or showing countless financial statements since their financing program or loan allows being flexible to help your business grow but before looking for a business financing loan, you need to know how business loans work and used.

You can see that there are many sources of financing loans that are geared to types of businesses but the sources have certain criteria for investment and loan but that depend to the area which they participate.

These are some of the areas of Business Financing Loan:

Commercial Property
Start-up Financing for business
Loans for Government
Purchase Order Advances
Leasing Equipment
Commercial Financing
Invoice Factoring
Asset Sales Leaseback
Investment Banking
Angel Investor s which is known as informal investor
Venture Capital known as Private Equity Capital

But private money business financing loan is different since it includes equity loan, hard money as well as private money loans. They limit only to small business investment companies, private investors, business angels, ventures capital firms and commercial lenders.

The loans have two types for you to choose when in regards of terms in payment. There is the short term and as well as long term which suits your budget and you will notice also that there are lots of commercial lenders, business loan brokers and business financing companies had gone out of business due to global crisis and many people were having loans anywhere and everywhere in order to survive.

If you need financing for your business, you need to plan and study hard of it since financial institutions requires business plan that includes detailed start up cost, marketing plans, monthly expenses, projected profit, etc. Remember that having a business one should do hard work, passion, and determination and have dedicated workers who desired to have the business of their boss grow with success.

Sell or Buy Business With Goal of Hybrid Retirement

Owning a business can be a very rewarding experience. Many will buy an existing business or start a new business with the thought of building the business to the point that it is a successful viable entity that they can sell and live comfortably on the proceeds. There currently are millions of small business owners in various stages of planning the exit of their business. I want to sell my business so I can retire comfortably. There are also millions of aspiring entrepreneurs that are considering buying or starting a business with the goal of building it and growing it to the point they can sell it and retire comfortably. It seems so often when discussing what one does it is described as working or retired. (In today’s economy un-employed, looking for work is another status). I believe there is a status between working and retired, and I refer to it as Hybrid Retirement. I certainly don’t see myself as any retirement expert or financial planner, but I have been through the process of selling my business that I had for 20 years and have developed my own views on retirement that possibly one going through the daily work day does not have the time to consider.

My current profession is as a business broker in Florida. Within my community I am surrounded by retired people, and also after the sale of my business I did take “some time off”. As a business broker I speak to many business owners considering the sale of their business. One of their top considerations is “If I sold would I have enough to retire?” Why not aspire to Hybrid Retire?

I personally think the majority of those currently working full days either employed or as small business owners look forward to the day they can retire, stop working, and spend the rest of their days fishing, golfing, or hobbies. Of course your age at the time of cashing in can greatly affect your decision process. If you are 75 years old, maybe you say enough is enough and just head to the golf course. But if you are fortunate to be successful and exit in your 40′s, 50′s or maybe even your 60′s your perspective, and needs could be greatly different.

The thought process for someone thinking of selling a business goes something like this:

I think I need to sell my business, walk away with $500,000 and that will be enough for me to retire. But what if you had someone that would buy your business and allow you to walk away with $400,000? Maybe this is a good time to entertain such an offer and consider Hybrid retirement. If you believe you need $50,000 per year to live off of, and the sale of your business may give you $35,000 to live off of, should you walk away or consider.? Many small business owners get overburdened with the responsibility of owning a business, and really want to sell those responsibilities away to others. Maybe making the $25,000 monthly payroll or covering the $100,000 per month fixed overhead cost month after month just gets to be too much.

Perhaps you can consider upon the sale of your business, you can find another business to buy, possibly one that you have aspired to do for years, or possibly work for someone, under terms conditions that fit your lifestyle. But this second business you don’t need to make that high monthly expense, and now you are supplementing the proceeds you have from your sale, and what you need to draw from the business is a lesser amount. “Needing” to make $15,000 per year instead of $50,000 can be somewhat liberating!

Why Hybrid Retirement-

Do you really know that you can “do nothing” after working for 20, 30, 40 + years
You have someone looking to buy your business near the price you think you need. maybe consider the offer and plan to supplement the difference with a second career, part time job etc.
This is an opportunity to build a profession around your lifestyle, whereas before you may have had to try to build a lifestyle around your business.
Are you really prepared to try to live off a “fixed income”- supplement that with something you aspire to do.

I think currently due to economic condition there are many small business owners delaying the exit / sale of their business because the recent performance of their company may not allow them to achieve the “walk away” money they believe they need to retire comfortably on. There also are eager entrepreneurs ready to start a new venture with hopes of one day selling and retiring off the proceeds. Maybe planning for both of the above scenarios can best be addressed by allowing yourself to consider Hybrid retirement.

Key Points to Consider When Shopping for Business and Commercial Auto Insurance

Coverages Available in Commercial Auto Insurance

Business owners realize the importance of making sure that their business is well protected from all risks that can affect their businesses. A vehicle that is owned by the business may put the business in jeopardy of a lawsuit in the event of an accident if the accident is caused by that vehicle or its operators. The following are key points that business owners need to remember when shopping for commercial auto insurance.

Personal or Business Insurance: Take commercial auto coverage anytime the vehicle is titled in the name of the business, regardless of the size of car and regardless if the car is for doing business or pleasure. The titleholder of the vehicle (in this case it is the business) may be sued as a result of at fault accidents, bringing the entire business in a legal preceding. If the insurance coverage is not under the name of the business, then the business may have some issues related to the validity of the insurance coverage.

Liability Limits: Insurance companies offer different liability limits, from the basic limits mandated by law (in Illinois it is 20,000/40,000/15,000) to as high as one million dollar for every accident. A business that insures its commercial vehicles at the basic liability limits of ($20,000 bodily injury per person, $40,000 bodily injury per accident, and $15,000 property damage per accident) is certainly running in a big risk of losing its business assets in case of at fault accident involving their business autos with death or serious injury to others. High insurance limits are required to avoid losing business assets in case of auto accidents.

Vehicle Classification: Improper classification of the commercial auto may result in voiding insurance coverage, therefore, rendering policy useless and putting business in significant risk of losing business assets in the event of at fault automobile accident. A truck that is used by an electrician has different classification than a similar truck used as a dump truck. The two trucks have different classes and their premiums are not similar in amount.

Autos that are titled in the name of a business, or ones that is used to run a business must have commercial auto insurance coverage. The following are examples of automobiles that need commercial insurance coverages:

All trucks (local or long hauls), Artisans and all contractors, Messenger and delivery services, Ice cream vendors, Landscaping, Limousine services insurance, Para-Transit transportation insurance, Religious and non-profit, Food services and restaurant insurance, Pickup truck insurance, Truck insurance, Tow truck insurance, Dump truck insurance, Landscaping insurance, Snow plowing, Commercial Vans. etc.

Business Auto Mandatory Coverage Includes:

(1) Liability. In the State of Illinois a minimum of $20,000 bodily injury per person, $40,000 bodily injury per accident, and $15,000 property damage per accident is required from all registered vehicles, personal or commercial. Some commercial autos that need federal filing or state filing may need higher limits. For example, a limo operating in Chicago need to have a minimum of $350,000 in auto liability. A truck that transports hazardous materials is required to have at least one million dollars in auto liability coverage.

(2) Uninsured Motorist/ UM Coverage. In Illinois a minimum of $20,000 bodily injury per person, $40,000 bodily injury per accident is required for Uninsured Motorist/ UM coverage. These are the limits that your insurance company will pay people in your business vehicle in the event of them being injured by some uninsured motorist. This coverage may not apply if the accident is work related, and if the business workers compensation policy comes in the picture.

(3) Other coverages may be required, based on the nature of the business. For example, certain long haul trucking businesses are required to meet FHA Insurance Requirements, and their filing may be require to have Cargo Coverage in place.

Some Optional Coverages for Business Vehicle Includes:

(1) Physical Damage Coverage- Comprehensive coverage will pay for physical damage to the insured vehicles caused by a variety of risks, including fire, lightning, theft, vandalism, hail and flood. Collision will pay when the auto is physically damaged in an accident involving another vehicle or a stationary object, such as a wall, telephone pole, or guardrail.

(2) Underinsured Motorist/ UIM Coverage. In Illinois a minimum of $20,000 bodily injury per person, $40,000 bodily injury per accident is required for UIM (Underinsured Motorist, bodily injury.) These are the maximum limits that your company will pay people in the insured commercial vehicle in the event of them being injured by an insured motorist. Remember that this coverage will not apply if the accident was work related.

(3) Medical Payments: The coverage will pay medical care expenses for the insured(if you are not covered by workers’ compensation) as well as passengers in your auto.

(4) Hired and Non-owned Auto: Pay for damages the business is legally obligated to pay due to bodily injury or property damages that happens during the use, loading or unloading of hired or non-owned autos used for your business.