4 types of viable small business financing Many small businesses face the prospect of going under if they are not able to secure good financing. The need for quick cash injections to keep a small business running can continue even after the first few loans are acquired. However, with each loan taken it becomes increasingly difficult to get a new loan approved. Also, the number of banks and financial intuitions who are willing to lend money to small businesses are rapidly shrinking.A regular small business loan from the bank Before you go anywhere else the first place you should go to is your bank. Banks offer some of the best small business loans which can be used as startup capital or to further expand your business. However, your proposal needs to appeal to the bank in a way that helps them feel that giving you a loan is a worthwhile investment. If you’re just starting out your business plan should go into detail about your business and your experience. This will help the bank understand your industry and how effective you can be. Banks will also require the following details from you:• Cash flow projections which tells them how they will get paid back and when. These should be honest figures.
• Make sure to add personal financial statements.
• If possible add past business tax returns. This will show how exactly your business has been doing.
• You need to have good credit rating to be trusted. Even though this is a small business loan but you are getting the money. Make sure to add your credit report to the file you send as part of your loan request.Try finding micro-loans If you are not able to acquire a regular small business loan you may try to get a micro-loan. Micro-loans allow you to borrow up to $35,000 and they are easier to get. Micro-loans work great as small term capital and for equipment purchases. Because micro-loans may require collateral the best use for it is equipment purchases since then the equipment can be put up as collateral.Short term supplier credit This type of loan clearly does not work for every business. So, if you’re not a retailer or a manufacturer then you’ll have little use for it. You’ll usually need to pay back this type of loan within 30 to 60 days. However, you should be aware of the fact that the interest rate on short term supplier credit is very high.Instant small business loans Also known as quick cash loans and quick cash advance loans these work great for businesses that are not able to find a loan anywhere else. It is also great for businesses that do not have the required assurances to secure a regular small business loan. These types of lenders will usually process your request within a few days and deposit the amount into your account. In most cases you can apply for the loan directly from the lender’s website. However, because the lender is taking a higher risk of lending you money without due diligence the interest rate is slightly higher than what banks offer.
Small Business Financing Options
You Can Find the Best Home-Based Business and Make Real Money Online If You Understand This
To find the best home-based business for YOU, a key to making real money online one must first start with a little research. While it may look like all home-based businesses are equal in their income potential, there are some critical components that an online business must possess to give you the best chance at success.It All Starts With YouTo find the best home-based business for you, consider your skills and interests. Are the products or services that you would be selling something that you can promote with enthusiasm? Also consider your marketing and web skills. If you feel your skills in these areas are inferior, then you should definitely make training and support a priority.A Solid Business PlanThere are two strategies for being successful in a home-based business; you can either go it alone by creating your own business or you can join an established business like a network marketing program and simply duplicate the strategies that others have parlayed into success. To go solo, one should already have a product or service to market AND the skills to build an internet business from the ground up. This approach can take a long time to get into profit, since critical pieces of a successful business must be established.If you wish to build your business more quickly, then joining an already established network marketing company may be more towards your liking. Do your research here to find a business whose products reflect your interests and already has a successful business plan in place. If you go this route, be sure the company you choose has superior training and support and offers business tools you’ll need to be successful.Resources Versus OutsourcingEven the most experienced solo internet marketer occasionally needs the help of experts who can help complete projects for which he either lack the skills or time to do himself. A simple Google search on “internet marketing outsourcers” will reveal a host of places to find these talented individuals. Indeed, you can find web designers, article writers, copywriters, or virtually anyone you need to help you grow your business. If you choose to participate in an established network marketing business, these resources (or at least most of them) should already be available to you. In fact, the top home-based businesses have ready-to-use websites, autoresponders, sales pages, and fulfillment programs in place, ready to use. Here, you won’t need to spend time developing the infrastructure of your business, so you can concentrate on results and making real money onlineThe Credibility FactorIt wasn’t long ago when owning an internet business was considered risky. But today, as more and more marketers are showing that you can make real money online, online business ownership has become much more widely accepted. In fact, most brick-and-mortar businesses have an online presence, and many have used the internet to extend their global reach. For this reason, owning a home-based online business has become very attractive to people looking to improve their financial status.To continue the rise in credibility of the online business and network marketing models, we should all choose to offer quality products and services with superior customer service and ethical marketing strategies.It’s taken a few years, but internet marketing has now “come of age.” And with research and planning you, too can find the best home-based business for YOU, and make real money online.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.