Business Finance Brokers

When your reply is a definite ‘yes’ to these questions then it could be the very best time and also a smart idea to obtain the aid of a business finance broker who is able to accomplish all the finance arrangements in your part.

It truly is significant that you get a very good business finance broker as a good broker provides a dedicated one-to-one service and keeps you fully up to date of the available alternatives, what every single option entails along with its benefits and downside. A good broker is knowledgeable in finding a wide range of suitable finance options without delay. In addition, he offers the expertise to negotiate a better deal than you can do by yourself.

A business finance broker is aware of which type of financing you need. The kind of financing that you will need will depend on your financial means, your expected profit margin, the sector you want to enter plus some other factors. A broker makes the whole process simple and easy; in most cases he gathers some basic information from you via phone and provides a decision in principle within 24 or 48 hours.

When you have determined which financial providers to approach, the brokers can help you tailor and present your proposals in the right way. In order to help tailor your proposals and also to avoid rejections they keep up to date with any policy changes at banks.

The method that you present your proposal can often be the cause of being rejected for finance.

The moment you ponder on raising funds to obtain a business, what comes first to your mind is to get finance from banks. Yet you ought to be knowledgeable that there are a myriad of lenders these days and some of which specialize in particular products or industries. For instance if perhaps you wish to purchase a garage business, it would make sense to request finance from a lender which specializes in funding garages.

A finance broker is knowledgeable with the diverse market for finance provision. Odds are that you’ll find the process complicated and time intensive and find yourself land up picking the wrong business finance provider. You need the aid of a broker to get the best deal.

In regards to raising finance, a one-dimensional approach can be a bad idea. Quite often, banks lend on inflexible terms and more frequently they turn down individuals who are with greatest need.

Business finance brokers aid you have a whole lot more options besides banks. He will likewise tailor a financial package that suits your needs as well as resources from a wide selection of finance companies and kinds of finance.

Because brokers are up to par and extensively knowledgeable of the financial provision market they are fully aware precisely how much leverage they have in negotiations. Thus the moment you have selected a number of providers, the broker can use his expertise in negotiating to obtain a deal with the terms and rates that best accommodates your needs.

Bear in mind that the choice is always yours. A broker is there to offer you options and also assist you have an understanding of them to produce a well-informed choice.

A business finance broker can help beyond purchasing a business – he can assist you obtain working capital as your business grows and expands. Brokers also offer assistance on business planning, consulting, management buyouts, business restructuring, and also buy-ins and turnaround finance.

Bad Credit Business Financing

First, without the money you need your business could end up losing an opportunity, never opening, or closing the doors. This can leave you very broke, looking for a job in a bad economy, and in a place that you just do not want to be in. You need to make sure this is not what happens because having a business is important and maintaining is is as well.

Second, getting bad credit business financing is not all that difficult if you know where to look. There are many places that specialize in financing that has very little to do with your credit and much more to do with the stability and the future of your business. This is something you should know and if you are looking for bad credit business financing you need to get a bit creative sometimes.

Last, you can find many sources right online if you find the right places to look. Without the money your business needs to get off the ground or to survive these porr economic times you will be in a very bad place with more stress and less money than you are used to. Make sure you find your financing and do so as soon as possible.

Unsecured Small Business Financing

Running a business can be great, but sometimes it can be very hard to get what you need to grow and to get your business started. The unsecured small business financing that you need is out there, but it is a matter of finding it and sometimes you have to be creative. There are many options to consider.

You could look into private investors because they will not ask for a home, car, or the business to secure the financing. Sometimes they want a little profit sharing, but you can usually get an option to allow you to buy them out of that over time. They are most interested in the interest rate and what they can make if you are successful.

Another option for unsecured small business financing is to choose a few banks and apply. They might say no, but you will learn what you need in order to get what you need for your business. Sometimes it is necessary to hear the word no in order to get what you are after. This is a good thing in most cases and you just don’t know it.

Unsecured small business financing can be tricky if you let it be, but there are options. You can build business credit or find a private individual or company that is willing to work with you. There is always an option when it comes to your financing and you can be creative if you need to be and find the option you really have to have.

Cash Advance Business Financing

Officially known as merchant cash advances, the advances help businesses-typically those that receive frequent credit card payments-receive the start up or expansion money they need when they don’t meet the requirements for a bank loan: excellent credit and sizable collateral. What’s more, the advances don’t have the terms of a traditional loan; instead of having set payments over a certain period of time, they’re granted in exchange for a certain percentage of a business’ sales. That means if you earn $20,000 in your first month, about $6,000 of it might go toward repaying what you owe.

Merchant services that offer advances collect their money by taking a set percentage from a business’ credit transactions. The percentage varies by merchant service, but 30% or lower is usually sought after, though services that charge more still help businesses achieve something they couldn’t without an advance: open their doors and start a customer base that will still be there after the advance is repaid. In most cases, an advance is repaid within 12 months.

Advances are granted under the auspices of business advancement, an end to which numerous things could contribute. Currently, many businesses use their advance for some of the following expenses:

1. Green improvements. Improving your building’s energy efficiency can drastically reduce its annual utility bills. According to energy efficiency research, an interior lighting retrofit alone could reduce its annual electric bill by 30%.

2. Expansion. Whether you wish to expand at your current location or start another location, merchant services can give you the money you need to stop planning to succeed and actually do it.

3. Renovations. If your building is aesthetically compromised, the appearance could impact how customers perceive your offerings. Cash from a merchant service could give your business the facelift it needs to keep up with competitors.

Debt Free Business Financing With No Loss

This form of finance is called factoring.  Say your company (the client) provides a product or service to a customer, then issues an invoice for those goods or services.  The customer frequently takes 30-90 days to pay the invoice.  Rather than wait, the client can sell the invoice to a third party, called a factor.  The factor will verify that the invoice is valid and that the customer has the willingness and the ability to pay.

The factor will pay for the invoice in two parts.  Initially, he will pay the client an advance of typically 70-80% of the face value of the invoice.  This usually takes less than 48 hours.  When the customer pays, the factor will deduct a fee, and refund the balance to the client.  This fee is mostly affected by the time the invoice is outstanding.

There are numerous advantages to factoring for a client company.  The most obvious one is that cash flow improves immediately.   Factors also provide other benefits as part of their normal business, such as handling collections and tracking accounts receivable.  A factor can provide quality assurance when they verify that the customer received the product.  Another benefit is that a factor will verify a customers’ credit before advancing funds.  If you’re looking to do business with a new customer, but the factor won’t fund their invoices, you will want to be very careful about the terms you offer them.

Factoring rates tend to be higher than bank rates, but when considering costs it’s important to consider the benefits as well.  Having cash on hand to bid more work or take advantage of supplier discounts can make a huge difference.  The objective is to make more money by factoring than you would if you didn’t factor.

Factoring has changed a great deal over the last ten years.  There are 5-10 times as many funding sources now as there were then, so rates and terms are much more competitive.  There are factors for invoice volumes of $500/month to over $10 million/month.  There are factors of all sizes who specialize in the construction and medical industries.

Because there are so many funding sources, your best bet is to use an independent broker.  Most brokers don’t charge any client fees.  They are paid referral fees by the funding sources because the funding sources are wonderful people (many of them are very nice, actually)  and because it’s less expensive for them than advertising.  There is very little difference in referral fee rates between different funding sources, so finding the best match between the needs of the client and the funding source is the primary concern.

Getting Business Financing Loan

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.

So If you think that your business is doing good and need some additional capital for expansion, then you need to plan for that and think it over to have a successful business.

Effectively Track Your Business Finances

Your Financial Flow System™ is your step by step operating procedures for your bookkeeper or accountant. This system allows your bookkeeper or accountant to follow step-by-step and will essentially let them know how you run your business. Writing down and documenting these procedures will highlight for them areas that need improvement and tweaking and areas that are bringing you maximum operating efficiency.

Managing your books regularly does not need to be a complicated task. If you have a simple Financial Flow System™ in place it functions as a step-by-step instruction guide to track your income and expenses. Your system does not have to have a lot of accounting jargon and it can be a simple list that can followed easily every time.

Systems are in every facet of your business, not just in your product or service line. Having a Financial Flow System™ in place in your accounting department will help you see where your business is thriving and where a breakdown might be occurring, so you can take the necessary actions to prevent financial stress or failure.

Let’s take McDonald’s for an example. Each franchise owner follows McDonald’s corporate Financial Flow System to run their specific store location. These operating procedures allow franchise owners to have instructions and procedures to effectively and efficiently run their store. They do not have to reinvent the wheel for every process, but they can follow the steps and easily tweak where needed for their individual location.

Create a System

  1. Documentation. Write down your entire current process from start to finish. Don’t change the process, just get it all down as is, on paper. Then give the list to your bookkeeper or accountant to review. They will be able to assist you with finding ways to increase optimization in your process.
  2. Cash is king. Balance and reconcile your cash accounts. If your cash account is not reconciled regularly, you have no way of knowing what’s going on in your business.
  3. Who owes you and who do you owe? Make sure your balance due to you from customers and the balance due to vendors are up to date and accurate at the end of every month. This is needed in order for you to make accurate cash flow forecasts that will keep your account in the black.
  4. Adjustments. Make any necessary adjustments needed to ensure all of your balance sheet accounts are accurate. This is important because this statement tells the financial status of your business at any given point in time.
  5. Look at your reports. Review and analyze your monthly reports to determine if they accurately reflect how your business is operating. If not you may have to make some changes, but at least you will know in advance and not when it’s too late.

Obtaining Business Financing

Business finance can be made available on diverse property-sets. This can include offices, pubs, restaurants, shops, hotel, industrial manufacturing units, and factories and so on. Commercial mortgages have theirs own intricacy though. A simple residential mortgage is pleasantly deprived of any kind of complex transaction. Business finance often indulges in a lot of scrutinizing.

Business finance does not exhibit the flexible and competitive cost structure as witnessed in the residential mortgage market. Lenders are just getting adapted to the new techniques of fixed rate money for small and medium size enterprises.

Even those businesses which have sole traders or are defunct or have a bad credit history need not worry hugely. A scheme or another is always available which makes money borrowing possible for such units.

Many top of the line advisors help with counseling and offer suitable advice. Their services are paramount before entering a deal. They speak of the do’s and don’ts in clear parlance’s. For instance, they suggest the importance of not blocking money with dead plots.

Commercial mortgages can allow borrower to get up to 85% of property value financed. Borrowing amount can range between 25000 pounds to 5000000 pounds. It is a self certified loan and generally need attestation from the borrower for a possible default scenario. Though the sub-prime crisis in US has made the lenders a little more discerning, bad credit profile customers are still finding it easy to gain access to such loans.

Approval or rejection is meted out immediately, which implies the borrowers do not have to suffer from having to wait to be informed about the fate of their application.

Commercial mortgage units can be also put on rent. This makes them partially exempt from the Capital Gains Tax. The clause is simple; the properties can only be let out for commercial purposes. In distant or proximal future, when an owner feels like selling the property, he will have to consider the price fetched as gross.

Net price can only be traced after clearing away the mortgage debts, subtracting the 15% down payment and further subtracting the Capital Gains Tax. Buy to let commercial remortgages can help an owner pay his EMI’s through the rent receipts.

Obtaining Extra Business Finance

Business grants are a sum of money that is awarded to your company for a very specific purpose or project. This money means that you can undertake the changes that you want to make to your business without having any debts at the end of it; sounds too good to be true? Well let me assure you this is completely genuine but like all things that seem too good to be true there are a few catches. You are only awarded between 15% and 50% of the total money that you need to carry out your project; the rest of the money needed has to come from you. The percentage of the total cost that you will be awarded depends on how much money you need for your purpose or project.

There are many ways in which you can obtain a grant some of the main ones are as follows:

  • The government
  • The European Union
  • Regional Development Agencies in England, Scottish Enterprise, the Welsh Development Agency and Invest Northern Ireland
  • Local authorities or local councils and local development agencies
  • Chambers of Commerce
  • County Enterprise Boards

The main type of business grants that are available are government grants and the reason that they came about was as a way of encouraging entrepreneurialism and innovation, which will translate into opening up more jobs within the business and adding value to the business, which is done mainly through the businesses profits.

Some of the reasons as to why you may be awarded a grant are for the purchasing of machinery, to improve office conditions, increase employment and developing export markets. Everything that it will be awarded for comes down to the idea of helping you to develop your business.

To be in with a chance of receiving a business grant you need to make sure that you meet the conditions set out by the grant. These conditions are that you have to have the rest of the money for your specific project or purpose ready and the project can’t have already been started. These are strict terms and conditions that apply to all grants. If these aren’t followed, immediate repayment of the grant can be required. However, generally you do not have to repay grants or interest on them unless you break the conditions.

Applying for grants can be time-consuming. You will generally be required to submit your business plan, as well as completing the specific paperwork for the scheme. Once your application has been made it will enter the reviewing stage where your application and proposal will be assessed using the following criteria:

  • Significance
  • Approach
  • Innovation
  • Their assessment of your expertise
  • Need for the grant

There aren’t many grants available, which means that competition for them is high so if you aren’t successful this time then I advise you to take on board the reasons as to why your application was turned down so that you can work on these points and apply again.

Steps To Business Financing

When it comes to debt financing, most US small businesses turn to our traditional financial institutions, such as unsecured loan services, to find small business financing.

Some take out short-term business loans, which need to be repaid (with interest) within a set period such as 180 days. These are sometimes called demand loans, because they can be called in by the lender (the bank) at any time.

Longer term business loans are also frequently used as small business financing. Term loans are usually used to finance particular assets, such as building renovations or capital equipment.

Other businesses depend on unsecured loans and/or lines of credit for their financing. Through agreement with the financial institution, your business has a set amount of credit that you can draw upon. While a line of credit gives you the flexibility to pay day-to-day expenses or meet cash flow crises, whatever amount of money you use has to be paid back, and you pay interest on the outstanding balance.

Many financial institutions now offer unsecured credit cards especially designed for small businesses – and credit cards are a popular way for small businesses to finance startup and operating expenses.

However, credit cards are some of the most expensive financing available, in terms of their interest rates. They’re best used as a convenience for day to day expenses, if you pay off the balance in its entirety each month.

Traditional sources of small business financing are not available to all small businesses. Start up businesses may have an especially difficult time meeting bank requirements for debt financing.