Unsecured Lines of Credit are an excellent financing alternative that business owners can utilize to replace their frozen home equity lines of credit. These lines of credit will be more advantageous than business loans because, like credit cards, interest is paid only on the outstanding balance. With two years in business and a 680 or above credit score, business owners qualify for up to $1 million with full documentation. Applications can be approved for up to $350,000 with no documentation.
Unsecured Lines of Credit can be obtained in roughly 4 to 6 weeks but should never be applied for directly by the borrowers themselves. The borrower, although qualified, cannot simply walk into a lending institution or bank for an unsecured line of credit and automatically be approved. Companies that specialize in unsecured lines of credit are available and should be contacted to assist with the substantial preparation that is necessary. Professional business finance consulting firms maintain contacts and affiliations with lending institutions that offer unsecured lines of credit. It is extremely important that the business owner work with one of these firms instead of approaching the bank directly. The application process is somewhat complicated and documentation must be properly formatted and compiled to avoid unnecessary rejections.
Business owners can no longer rely on the equity in their real estate holdings to finance their business expansions and growth. Despite the fact that they paid high fees for the availability of home equity lines of credit, even business owners with excellent credit scores and excess equity in their properties are finding it impossible to access their credit lines. The main reason is that banks have virtually stopped providing homeowners access to the equity in their properties as lines of credit. Home Equity Lines of Credit have been frozen by most major lenders because declining property values have made these cutbacks necessary. IndyMac, Washington Mutual and other major mortgage lenders have made decisions to rescind these credit lines, according to the terms of their contracts with borrowers.
Business owners have been especially hard-hit by these recent eliminations of their access to funds for their businesses. Many of them have used home equity lines for working capital during slow periods or as sources for cash during periods of expansion. The net result is that expected funds for business uses are not available, although they are still very necessary. The lack of time to make other arrangements because of this sudden policy change can severely impact a business owner’s ability to survive a shortage of funds. Many business owners routinely paid back their lines of credit so that those funds are available for them to use at some pre-determined time in the future. That option is no longer available, leaving them without their usual funds.
In summary, Unsecured Business Lines of Credit are methods of financing that are still available to qualified borrowers who are also business owners. Firms that specialize in acquiring unsecured lines of credit should always be involved in this application process. The applicant will need assistance in properly preparing and organizing his documentation for submission to lenders. A firm that specializes in this type of financing will be able to present the borrower as the “perfect applicant” because its business is to assure that all aspects of the application adhere to the current credit, submission and underwriting guidelines of each individual bank. This very important initial step in the process will greatly enhance the business owner’s potential to be successfully approved for an unsecured line of credit.
Whether you are in sales, operations, or managing technology in an organization, as you grow in your career, you will be required to make financial decisions. What’s the best way to allocate the team budget? How can the company maximize its return on investments? Can the company afford to make capital investments? These are some of the questions that are not limited to just the finance professionals.
As the world of business becomes more complex, all the employees of the company are expected to be able to speak the language of finance and accounting to make the system more efficient.
Lack of basic financial understanding can seriously hamper your growth prospects. Even if you have all the skills to become a CEO, if you can’t read and interpret a company’s balance sheet, you don’t stand a chance to get that coveted position.
There are various ways to equip yourself with what you need to know about finance as a business executive. The first step towards your finance education is to grab a book that teaches you the basics. There are plenty of good books that have been written with non-finance professionals in mind.
Most business schools offer part-time Executive MBA or other executive programs for working professionals. This is a good option as you study from the experts, and also earn a degree or certificate at the end of the program.
The objective is to get decent knowledge of finance and accounting and be able to apply it when required. Let’s take a look at some of the important concepts that you need to know as a business executive. First and foremost, you need to realize the importance of finance and accounting function and the difference between the two. You also need to know some basic accounting terminology, such as double-entry accounting, debt, credit, assets, and liabilities.
The most important thing that you need to know is how to read and interpret the key financial statements of a company. The three commonly used financial statements are balance sheet, income statement, and the statement of cash flows. As a senior business executive, you are expected to know these statements, and how they are interrelated with each other. Based on your knowledge, you should be able to pick up the key financial data from these financial statements and use it for making key decisions. For example, if you are in a meeting discussing a future project, you should be able to take a call on whether the firm is able to finance this new project, depending on how much the company already owes, or how much profit the company has retained. Apart from these you should also have some knowledge about costing and budgeting techniques.
In summary, having a grasp on the key finance concepts and your ability to interpret financial data can provide a significant boost to your career and enhance your reputation among your colleagues.
Sam is an expert in finance with over 10 years of experience in finance education industry. He currently writes for Finance Train on various topics in Finance Education.
The decisions need to be made – namely should you lease or buy your new industrial, business equipment or computing technology. And are equipment leasing finance companies your best solution for your business financing needs.
Sooner or later all companies in Canada need to choose between leasing equipment, understand the benefits of that finance decision, and most importantly know who to turn to or partner with for their leasing acquisition financing needs.
Lets make sure you understand why you should carefully consider the key benefits of lease financing and ensuring you have made the best equipment acquisition decision. While it’s a U.S. statistic, we’re pretty sure that its the same here in Canada – namely that sooner or later over 80% of all business chooses lease financing as a business option for acquisition needs.
That eight out of ten ratio is a powerful one, so why in fact did those firms choose this method of business financing. The answer is actually quire easy, Benefits! Let’s examine the key benefits you should focus on, and, as importantly, ensure you understand the costs, any risk, and the processes involved in making a solid leasing decision. It’s all about doing your homework, being prepared, and working with the right parties.
So lets first recap those benefits. The bottom line is flexibility, and with this type of financing what else could be more suitable. Simply because whether you are a start up, or Canada’s largest corporation, whether you are leasing a photocopier, shop floor equipment, or computing technology.. you guessed it, equipment leasing finance companies do that.. for your firm!
Worried about your equipment or assets becoming obsolete – (think computers!). Don’t worry, simply match your lease to the term of the expected useful life of your computers, telecom equipment, software, etc. Worried about being burdened with asset disposition at the end of the lease term. Don’t be. Simply enter into an operating lease that allows you full control in returning, keeping,or even upgrading that asset.
It of course always come back to cash flow, and we can assure you that its easier to make a 3k monthly payment than to write a cheque out of your operating line of credit for 100k. Whether is computers, industrial business equipment, or your corporate jet its always about cash flow and working capital conservation in business. Having just come through the 2008-2009 recession cash flow and its conservation still remains king.
There are many slick tools to determine whether you should lease or buy assets – they are available everywhere. We always encourage clients to make an informed lease versus buy decision for their asset financing needs. And, getting back to those benefits, numerous accounting and tax implications also play favoruably to the leasing decision.
Are there any disadvantages to lease financing? We don’t really call them disadvantages, but there is no perfect holy grail for business financing, and when you lease you should understand of course the agreement is non cancellable, might have miscellaneous admin fees attached to the transaction, and on occasion a down payment or first and last months payment might be required for credit reasons.
So, whats next then? If you want to meet your equipment leasing finance needs seek companies that are your best partner for asset size, your firms credit quality, and suited to your geographical needs. Don’t have a lot of time to investigate the process? Simply speak to a trusted, credible and experience Canadian business financing advisor who will work throughout the process with you, successfully.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.