Posted On: May 9, 2012

Is the Economy Really Slowing Down?

Posted on 2012/05/09 by admin

According to the most recent reports small business lendingslipped in March a (supposed) sign that companies are losing confidence in the economy. This has triggered some rather negative remarks about economic recovery from the naysayers of the industry. In turn this has caused downturns in the markets.

Speed^ Speed^ Speed^ - NARA - 534917 (Photo credit: Wikipedia)

Per an interview with PayNet founder Bill Phelan, “Every indicator on the risk dashboard is positive, and yet smaller business owners are holding back,” he said, noting that interest rates and inflation are low. “They are seeing something in their businesses that is not inspiring confidence and their best instincts are telling them that now is not the time to invest.”

Posted On: May 2, 2012

Bank Loans vs. Alternate Lending Institutions

Posted on 2012/05/02 by admin

Loan (Photo credit: Philip Taylor PT)

With the country going through its worst financial crisis of the last 70 years, it’s not so easy for small businessesto obtain bank loans. Having said that, there are bank loans that are still available. You’ll just have to work harder to get one.

The sad truth is that many banks are holding paper of questionable value; consequently they are not overly eager to hand out more money. Because the banks are not getting repaid as fast as they would like, they have less money to lend. The major problem, though, is that, because of the bad economy, fewer business owners have the high credit score needed to garner a loan from a traditional financial institution.

Posted On: April 23, 2012

Credit Unions – The Small Business Lenders of the Future?

Posted on 2012/04/23 by admin

As banks are retrenching by cutting down on the number of Small Business Loans and making changes to the existing loans and lines of credit, Credit Unions may be coming into their own as Small Business lenders.

But, before we launch into an exploration of how this phenomenon is coming to pass, let’s take a peek at the make-up of credit unions and why they haven’t been major players in the SBA loan playing field until more recently.

Posted On: April 12, 2012

Business Owners Still Have Access To Working Capital!

Posted on 2012/04/12 by admin

As a business owner it must feel like you are starting from scratch all over again. Trying to keep afloat absorbs all of your time. Without a steady flow of new income it’s hard to expand. Income = Capital. Your business isn’t going anywhere without a boost from additional income.

I’m sure you’ve heard people say “I wish I had money”. What they actually mean is, “I wish I had access to money”.

Posted On: April 4, 2012

How Safe Is Your Credit Card Processor?

Posted on 2012/04/04 by admin

Third Party Payment Handler’s System Breached – How Safe Are We?

The credit card industry was stunned last week by news that data from as many as 10 million credit cards had been misappropriated by cyber thugs. Visa and MasterCard rushed to allay the fears of the potential 1.5 million clients whose personal information might have been penetrated.

Global Payments which was the handler whose system was infiltrated said, “The investigation to date has revealed that Track Two card data may have been stolen, but that cardholders’ names, addresses and social security numbers were not obtained by the criminals. The company went on to say that, based on forensic information not revealed to the public they believe the problem has been contained.

Posted On: March 29, 2012

Rates on the Rise for Small Business Owners

Posted on 2012/03/29 by admin

The Latest Challenge – Rising Interest Rates

Until more recently, the Feds have been keeping the interest rates at an all-time low. Lately we have seen those numbers, those outside of the control of the Fed, beginning to creep back up again. Should we worry?

According to Fed Chairman Ben Bernanke, things are improving, but we still have a long way to go. We are still facing challenges according to Bernanke, with high unemployment that ultimately affects everyone. The country is on track for improvement in the long term, although the Feds are still monitoring the economic conditions in order to insure a return to a prosperous economy.

Posted On: March 26, 2012

Starting Up and Operating a Restaurant

Posted on 2012/03/26 by admin

Can you take the heat in starting up and operating a restaurant?

Despite the economy, those who spend the day on the job don’t want to spend an evening in the kitchen.

An increasing number of consumers either want to dine out or take prepared food home. The number of food service operations has skyrocketed in the last 30 years. Changing lifestyles are driving the food service industry. There is, though, plenty of room for growth in the world of dining; from fast food franchises to theme restaurants to the upscale restaurants, bars and clubs. While this increasing trend bodes well over all for the food industry, there is no guarantee of success.

Posted On: March 21, 2012

Bank Alternative to Small Business Lending

Posted on 2012/03/21 by admin

Bank Loans vs. Alternate Lending Institutions

With the country going through its worst financial crisis of the last 70 years, it’s not so easy for small businesses to obtain bank loans. Having said that, there are bank loans that are still available. You’ll just have to work harder to get one, or, not need funding.

The sad truth is that many banks are holding paper of questionable value; consequently they are not overly eager to hand out more money. Because the banks are not getting repaid as fast as they would like, they have less money to lend. The major problem, though, is that, because of the bad economy, fewer business owners have the high credit score needed to garner a loan from a traditional financial institution.

Posted On: March 12, 2012

Borrowing after Bankruptcy for Small Business Owners

Posted on 2012/03/12 by admin

Borrowing after Bankruptcy for Small Business Owners

If you’re business bankruptcy has recently been discharged, most lenders still consider your business a high risk. Depending on the type of bankruptcy, your personal credit might have been affected negatively as well. To help get your business back on track, you may question whether you can consider some form of business financing in the near future.

There are a surprising number of lenders that are still willing to provide Working Capital for businesses with recent bankruptcies. But if you expect to get the best rate, a longer term or a larger sum, you will be sorely disappointed.

Posted On: March 6, 2012

Guide to Small Business Borrowing, Part 2

Posted on 2012/03/06 by admin

Overview Part Two

We continue from part one. Part One broke down what it takes to borrow, build business credit, how the approval and funding processes work. Part two will discuss the cost of borrowing, risks, terms and repayment structures.

Cost of borrowing: How much should I pay for a loan?

You’ll want to map out a business plan for comparing the costs of borrowing. It’s not all about interest rates and payment schedules. Cost-savings, tax deductibility, revenue generating or opportunity lost because of not borrowing must all be determined to truly understand the real cost of borrowing. Rate will be a determining factor as to how and how much you want to borrow, but should not be the only reason to borrow or not.