The Billionaire Mindset

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Saving Small Businesses, Saving the Economy

For owners of small and medium sized businesses who haven’t applied yet for the PPP or Paycheck Protection Program must apply via eligible lender similar to a local bank. It is recommended to visit the website of SBA or Small Business Administration for they have complete list of eligible lenders. Experts do say that business owners must apply through banks with whom they currently have relationship with.

This is because banks are already doing its best in helping their current clients in managing the Covid-19 pandemic and might be reluctant to work with new clients. Also, banks should vet new clients, which is something that might take some time.

As for the applicants, it will be a necessity to submit an SBA Form 2483 or the Paycheck Protection Program Application Form as well as payroll documentation.

What other Things are Needed?

The new bill is almost the same with the old legislation but 60 billion dollars of this is focused at small and medium sized banks and credit unions with around 30 billion dollars that were set aside for the community-lenders such as:

  • Community Development Institution and;
  • Minority Depository Institutions

The changes were enacted after the critics of first round said that there’s too much money being funneled to bigger businesses similar to major restaurant chains instead of the startups and really small businesses.

According to Steven Hamilton, the assistant professor of economics at George Washington University says that it is hard to say in advance whether or not the modifications in second round would make it simpler for small businesses to apply for PPP loans.

Well, if you are having a hard time securing a loan through PPP, there are still other businesses that offer loan products that you can take such as https://www.southeasttitleloans.com/south-carolina-regulations/.

With PPP, businesses that have at least 500 employees will be able to receive loans for 2.5x of their monthly payroll costs with a ceiling of 10 million dollars. The loan could be forgiven in the event that the business uses at least 75 percent of forgiven amount for payroll and also, if the money has been used for interest, mortgage, utilities, rent and payroll.

Does the PPP Loan can meet the Substantial Demand?

A straightforward answer to this is, NO. while many more businesses will certainly get PPP funding on the next round, some may be left behind, particularly those that didn’t have preexisting relationship with banks.

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Understand the Elements of a Business Loan before Getting One

For a business to survive, it needs big capital in an effort to fund for all expenses or perhaps, to pay for planned expansions. Failure to have strategic planning may soon require you to work with a bankruptcy attorney.

On the other hand, due to the sum of money needed to supply everything in a startup, business loans are taken out to be able to gain financial help needed. This type of loan is more of a debt wherein the company has to pay as per the terms and conditions of the loan. According to US SBA or Small Business Administration, prior to talking to any lenders, it is necessary for businesses to have thorough understanding of how the loan works and to what the lender wants to see from the applicant.

As we go deeper, you’ll learn more about business loans.

Function

Business loans in essence are borrowed capital in which companies are applying towards the expenses that they can’t pay on their own. Some entrepreneurs are using business loans in paying for wages and salaries until their company is able to get off of the ground while others are putting borrowed funds on things such as:

  • Office supplies
  • Business projects or;
  • Inventory

Lenders like to know how businesses intend to make use of the borrowed cash. Therefore, business owners have to provide a clear outline on how they will be spending the money. It is imperative to create a positive impression among lenders or else, they will likely decline the application for a business loan.

Types

There are various kinds of loan options that can be chosen from conventional loans being the most popular among the options. Thing is, securing a bank loan is not an easy feat.

According to research, banks are implementing tighter securities in their lending policies as a result of the unstable economy which makes it challenging for businesses to be granted by a commercial loans.

Features

If there’s one thing that you have to know about loans, then it’s the fact that it isn’t offered for free. Lenders are charging interests towards the principal loan amount. It is essential to learn whether the interest is variable or fixed. The latter means that the interest stays the same for the entire duration of loan until it is paid back. Variable loan on the other hand is an indication that the interest may fluctuate based on different parameters.

Before applying for a loan, make sure to keep yourself informed of such.

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Expanding the Reach of Your Business for a Modest Price

Entrepreneurs are the life and blood of every country. They have this reputation for trying everything on their own. Back in the first phases of starting a business, you might feel as if you have to be expert in everything – too many to mention. Because of this, you may be considering to have a partnership with another business. Not just that this helps in distributing some workload, it additionally gives you other like-minded people to share and collaborate ideas which in return will benefit everyone in the process.

As a matter of fact, there are many businesses these days that have openly welcome business partnerships and among these is the property management McDonough GA. The only question remain is, how you’ll be able to find a business partner and cultivate a professional and long-lasting relationship?

A number of entrepreneurs have shared their opinions and suggestions for finding a trustworthy business partner, which can be very beneficial for those who are about to start their own business.

Tap into Your Coworker Pool

Now this one is applicable both to past and present coworkers. Selecting a business partner from colleagues either those whom you have previously worked with or currently working on with can be a nice way of finding someone to get started your business with.

Not just the fact that this is a convenient way to kick things off, but selecting a partner that you’ve known for quite some time gives a big advantage than picking a total stranger. Besides, having such partner only means that you two have known each other and can work together as a team. In the long run, this will save you from headaches of running a business.

Networking Opportunities

If you’re a member of online networking groups, then this could be a wonderful place of finding a business partner. On the other hand, if you don’t belong to such groups, then it is time to consider joining in one. The good news, there’s a networking group for almost every industry and market.

A good place to get started is with professional association. At the same time, performing a quick Google search will return you tons of options. In general, these networking groups are the ideal place in finding new business partners and are likely to be in the same city as you do. Majority of the cities have at least a general networking group meet-up while bigger cities might have industry-specific group.

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7 Factors That Influence The Success Of Every Business financing

For a successful application for corporate finance, seven corporate finance success factors are decisive. Whether an application for business credit is filed with a bank, or venture capital is requested from an informal investor, a private equity fund, crowdfunding or a credit union, it is precisely these success factors that pave the way for corporate finance. These are plan, experience, knowledge, perseverance, flexibility, passion and commitment. What that means for a successful credit application becomes clear.

Business Loan Application Process

1. Business financing plan

The application for business financing is always dependent on a plan. Not only a business plan but also a financial plan. That financial plan must meet certain conditions. Different financiers apply to different requirements regardless if it is a no-guarantor loan or a guarantor loan. In essence, it means that there must be sufficient profitability. That seems obvious. But in practice, financial plans prove to be insufficient. After the investment, the profitability appears to decrease. Not a good starting point for corporate credit!

Such a financial plan must above all be based on realistic assumptions and estimates of the prices such as the following:

  • market size
  • market shares
  • costs for producing and delivering the product (or service)
  • the general costs that are necessary to get the business model up and running. keeping, etc.

Within a conservative (cautious) financial forecast, there must be sufficient room to meet the financial obligations. But the financial impact must also be related to the existing market conditions. What are the market prices of competitors, what are realistic cost levels, etc? And: where do they appear?

The nature of the business case is of course also important here. Is this an existing company in a market with undiscovered market potential? A company where a good benchmark is available? Or are we talking about a ‘startup’ in a risky and dynamic business environment with an international market reach? That makes a big difference between the different types of financiers. A credit bank is more likely to be convinced based on the proven financial performance over the past 3 years. While a risk financier is more stimulated by market potential and scalability.

Many informal investors only step into a new business model with – potentially – 5 times better products or services. Or: a cost-effective proposition: that costs 5 times less for a comparable product. A business model with only a marginal or comparable financial performance does not have to rely quickly on support from risk financiers for a starting company. Because experience shows: gradually there are setbacks. Then additional costs and investments must be made. With a marginal business case, the return on investment ROI is ultimately too tight. With all the financial problems that entail.

2. Knowledge for business credit

It helps if a business financing applicant has the right knowledge. And this knowledge also displays in a good way. Knowledge of the products, the markets, the competitors, the trends, the most important suppliers, the customers, the opportunities and the threats. Thorough knowledge arises from experience but also preliminary studies. A financier entrusts his money to entrepreneurs with solid preparation. Who has prepared well? Who has studied the market? Who can take timely measures based on that knowledge? Who can adjust the business case? The ability to interpret the dynamics of the market and to be able to develop the right steps from there is an important plus.

3. Display experience for business financing

For a business credit, displaying the right experience is a big plus. Experience with a comparable role in business. Is the correct commercial, operational and financial experience available !? And if not: how is that solved? And is the experience also within the same or comparable industry? Leading a development project for innovative technical products is different from running a construction company or a transport company.

4. Perseverance

But the perseverance of the credit applicant is also essential. And also to what extent is that supported by his team. The road to success has many obstacles. The business goals are on paper directly behind the horizon. But there are many obstacles on the path there. And they must be taken. If things go wrong, management must have the resilience to get through it. No business financing without perseverance. Because the provider of business financing does not want an active role in business operations.

5. Passion for corporate credit

Passion also counts firmly. The passion for the product or service is crucial when applying for business credit. An absolute confidence in a distinctive position in the market. Added value for customers and a decisive distinctive character compared to the existing and competitive offer. And the passion shown is also contagious: the financier is positively influenced. The passion is carried as fast. And if the financier feels that way too, then the customers and suppliers will also notice it. The basis for solid profitability has then been laid.

6. Flexibility

Flexibility is an essential basis in the borrower’s thinking and actions. Perseverance and passion are good qualities. But an open attitude to the environment and the ability and willingness to bend along with new developments is just as important. Because in the period between the start and a mature operation, the internal and external operating conditions change. This almost always affects the flexibility of companies. If the original plan is maintained too persistently, the right opportunities will not be used.

7. Commitment for business financing

The borrower’s own commitment is always expressed by a substantial contribution of its own financial resources. Some applicants for business financing say with too much ease: that investor only has to do 100%. We contribute our knowledge and experience. That is a nice idea. But no chance with the application for working capital. It is the question of the tear in the pants at a so-called discomfiture.

Summary

The seven success factors for business financing are plan, experience, knowledge, perseverance, flexibility, passion and commitment. Evaluate your own score on all these aspects. Where are the blind spots and points of attention? The preparation of an application for business financing therefore requires a fair reflection on these success factors. This helps considerably to build the right bridges to corporate finance.

Tips in Starting a Legal Cannabis Business

In just a short span of time, the marijuana industry is growing big. Few years back, the idea of legalization of the weed plant for both medical and recreational use is too hard to achieve. But, when 2018 comes in, there is a booming market of this luxurious weed. Most states in the US have already legalized medical and recreational marijuana.

Moreover, in Colorado, aside from cannabis legalization, they also implemented the regulation and taxation of it. And based on records, around $247 million revenue has been made by Colorado from marijuana taxes, fees, and licenses in just one year. Even the Stocktrade’s ranks of Canadian weed stocks are also on the rise. That’s why more and more entrepreneurs are taking the opportunity to penetrate into this kind of industry.

With its vast growth, the appearance of cannabis can be seen mostly everywhere. From edibles to restaurants, from clothing lines to lifestyle brands – all these are invading the industry with a blast. However, how easy it is to put up a legal business out of this controversial product? What are the strategies that those business enthusiasts are doing to successfully get into the loop?

Strategies to Start-up a Marijuana Business

In business, it is important to know the factors that influence the success of every business financing. Here are two of the most important tips on how you can penetrate the cannabis market and start-up your business legally.

  • Find your interest

In all kinds of business, it is essential that you know the things that really caught your interest. So do with the marijuana market as lots of products may be listed down under the cannabis roof. You may be interested with apparels, production and development of strains, weed cultivation or analytical testing. Actually, the potential product to introduce into the market is really countless.

Yet, the main key is to do the things that you really love the most and incorporate marijuana in it. Then analyse if it can be feasible to penetrate the business industry or not. In case, you think it can work well, then go for it and push it on the market. If not, then you’ll have to keep on thinking and moving on for another. Just keep going until you find the one that really fits.

  • Analyse the flow of the industry

It is very important to check on your environment. Look for your competitors, analyse their businesses, and know the strategies that works for them. Basically, try to consider some factors like the level of competition, the startup costs that you need, or other areas for funding.

Invest more time and effort in studying the ways on engaging into that specific area of the industry.

Decisions You need to make before Taking Lawsuit Loan

It’s hard to think yes but try imagining that you have been involved in a car accident in the state of Florida which caused you injuries. This will almost immediately put you out of work and at the same time, have mountain of bills to pay. Your best course of action is to hire a lawyer who can assist you in working on your claims. But it seems that it’s moving slow and you are in dire need of money otherwise, you’d have nothing to sustain for your medical and utility bills.

If used correctly, taking out a lawsuit loan can put you into an advantage. However, you have to be mindful with your actions on how it will be used.

Taking a Lawsuit Loan

It appears that there’s a solution to your problems. You have your lawyer and your lawsuit loan. The thing is, your lawyer is refusing to sign the documents from advanced settlement funding firm. Rather than your lawyer helping you to speed up the process, they seem to be the one who is hindering you from acquiring the money you deserve after the accident. What happened?

With the tough economy of today coupled with the ever-growing duration for making auto claims, it’s the perfect recipe for car accident victims to deal with financial hardships as they wait for their pending case.

Sure, there’s PIP coverage that will cover for things like:

  • Medical Expenses
  • Prescriptions
  • Mileage
  • 60 percent of lost wages of up to 10,000 dollars

Thing is, PIP coverage doesn’t pay for things such as electricity bill while the plaintiff is out of work and at the mercy of auto insurance claim to be resolved.

Ads from advanced settlement funding firms may seem to attract you like being the perfect solution to your problems. But like as what most say: If it is too good to be true, then it probably is”. This should be a warning for you and settlement funding loans are not an exception. So when you are in such, be sure to read the fine print thoroughly.

What’s Stopping Them?

Why does your lawyer cannot help you to get through this fine print? It’s simply because your lawyer thinks that it’s not a good idea. Whether an arrangement has been made between a funding company and client and has complied with all applicable statutes, it’s still a legal question. Therefore, the committee makes no comments with regards to the transaction’s legality.

Are we heading to Global Recession?


How is the global market going on right now? Global Market might sound vast that it might not affect our daily lives, but it does. From these financial situations, geopolitics, power balance on a global scale can affect regional affairs and does can affect even the smallest nation recognized by the whole world.

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