Tips For Identifiying A Home Based Big Money Business
Il y a 17 ans
jeudi 26 mars 2009
Obama's Small Business Stimulus Loans--Are They Coming Our Way?
As Americans we have experienced the full gamut of emotions after hearing TARP I handed 350 billion to big banks, but no money filtered through to small businesses in the form of loans. In fact, the spicket was turned off completely after receipt of the bailout money. But putting down the front page of our local newspaper for a moment, what is it like in the trenches? Are the banks really denying capital to businesses across the nation? And how are they treating them in this crisis. You'll be saddened to hear it is every bit as foreboding as you have heard, or even worse.
Mrs. Smith is the classic poster child of female entrepreneurial success. Starting as an everyday real estate agent, over the last 24 years, she has built an amazing corporate edifice consisting of several real estate sales branch offices and now employs 170 people. Her thriving business came as the result of untold hours of toil in which she describes herself as a "serial workaholic". As a result, she is considered one of most productive real estate offices in the state. Over the years, she had a strong relationship with a big bank and took out eight loans and lines of credit. All had been payback and were never late a single day. Her credit score is excellent and reports no negatives. Needless to say, as most businesses, she relies upon the line of credit to put her over the hump during times of lower cash flow. What happened next could not have been conjured up in your worst nightmare.
One afternoon on January 30, 2009, she received a call from her bank. In the past, she looked forward to receiving these calls because they were so energized and cooperative. They made her feel special. Her credit rating was so good, that twice she merely called up the bank manager, speaking to him by his first name, and was able to extend the line of credit by a simple verbal request. In those days, the conversations were something like: "Hello Mrs. Smith. I trust everything has been good with your business and family. How is your son John enjoying the college life? Sure--we'll be delighted to extend your credit line again and I will have one of my associates prepare the paperwork and get it over to you as soon as possible. Look to speaking with you soon." Today was different. Her CPA was in the office that afternoon picking up profit and loss sheets when the call came in. It was not the manager. It was someone at the bank she had never met.
"Is this Mrs. Smith? I am Frank Thompson with ABC Bank." He began with a twang that could only be described as consummate arrogance.
"Well hello. How are you today?" Mrs. Smith said cheerfully.
"Fine. Mrs. Smith, I assume you're busy so let me come right to the point. We have reviewed your loan accounts and effective immediately I am notifying you that they are being called and are now due and payable." It came to her in words that were abrupt and stinging. Although her heart skipped a beat, her first reaction was they must be calling the wrong person. She immediately motioned her CPA to get on the line.
"Hi. This is Mr. Evans, Mr. Smith's CPA. Would you be so kind as to repeat what you just told Mrs. Smith?"
Mr. Thompson was clearly agitated in having to repeat himself: "I'm really not accustomed to having to repeat myself, but I will tell you again. Mrs. Smith's $200,000 line of credit is canceled effective immediately and all sums are due and payable. Do I make myself clear?
"I'm sorry, we don't understand. Is there a problem with the account? To my knowledge Mrs. Smith has always paid her monthly installments on time and his current as we speak."
To say Mr. Thompson was rude was an understatement. Now he became even more bothered by the conversation: "It's clear you don't understand. I would suggest that you read the clear language of the loan agreement that gives us the option of doing so at any time with two weeks notice. I am giving you this notice now. Having said this in very simple language, I assume you have the basic intelligence to understand what I just said."
"Sorry, but we're just trying to be able to digest this news. This is very serious. We can't just pull out our checkbooks and a make a full payment on one day's notice . You don't have to be rude to us." Although still in shock, Mrs. Smith tried your best to soften the conversation.
Mr. Thompson was now eager to end the conversation. "Let me make it even clearer. Based on what I just told you, our bank no longer has a business relationship with you. You would be well advised to take steps to pay this account so that legal action is not necessary."
"Please understand that we need some time to think this through . . . I should . . . I mean I need to get a hold of the manager first," she pleaded.
"I'm handling the account now. You are not to talk to anyone else but me." The tone of of his voice was unmistakable and threatening.
At that point the conversation went steadily downhill. She and her CPA spent the rest of the day going over the books and speaking with their attorney.
Sound like something that cannot happen in America to a successful small business? Well, think again. These are exact quotes of the conversation. The big bank is simply stomping out big small businesses to improve their balance sheets. The lifesaver that has thrown to the big banks in the hopes they would pass it to small businesses on Main Street has simply not happened. It is at least understandable if a large bank decides not to make a new loan in this challenge economy. But it's another thing altogether to cancel existing loans with good customers.
Is this an isolated occurrence? Not all. Here is another example. Robert Picou is the President of the California manufacturing company known as California Ribbon and Carbon Co., Inc., with a plant located in Los Angeles. Robert is the epitome of the seasoned business owner, knowledgeable, practical, optimistic, and understandably proud of his company's heritage. After talking to him, you get the uncontrolled urge to get in the car and drive out to his plant. You get the image of a certain industrial vibrancy which is missing in America.
He should be proud. It is a story right out of the movies. In 1939, his father started selling old fashioned manual typewriter ribbons door to door to business owners in the Los Angeles area. But unlike Willy Loman in "Death of a Salesman", he made it into a real success. 70 years later this closely held family corporation has continued to thrive. To manage the ruts along the way, twenty years ago he took out a business credit card with a well known company and secured a large credit line. Needless to say, he has paid it on time ever since. But then he got a sudden and unexpected surprise in the mail. The credit card company unilaterally cut his credit line and froze up this access to working capital.
He wasn't especially daunted by this news because after all, he had a longstanding relationship with his large bank. All we needed to do was call them up and ask for an extension of his line of credit. His bank did get $150,000,000 in TARP money to presumably free up the money. Ten years ago he owed them as much as $1.4 million, but because of the success of his business, was able to pay it down to $88,000. A perfect candidate to receive some of the bailout monies and create an even more positive cash flow for him and the neighboring economy. No problem, right? Wrong again.
With no explanation, his bank turned him down flat. Asking why, he has yet to receive a credible answer. With orders piling in, his company is now on the unenviable position of not being able to fund all the orders received. Not to mention the rippling effect it has on his suppliers and employees, all of which have a tangible stake in our troubled economy. It is apparent that large banks have no intention whatsoever of using bailout monies for the benefit of small businesses.
Now the good news. Smaller community banks are interested in your business through the vehicle know as an SBA guaranteed loan. These institutions are using the incentives given by the SBA guarantee to cut their risk of loss and build up a better portfolio to be sold on the secondary market. You just have to find the right bank. At least someone realizes the foundational strength small businesses give to the overall economy.
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Mrs. Smith is the classic poster child of female entrepreneurial success. Starting as an everyday real estate agent, over the last 24 years, she has built an amazing corporate edifice consisting of several real estate sales branch offices and now employs 170 people. Her thriving business came as the result of untold hours of toil in which she describes herself as a "serial workaholic". As a result, she is considered one of most productive real estate offices in the state. Over the years, she had a strong relationship with a big bank and took out eight loans and lines of credit. All had been payback and were never late a single day. Her credit score is excellent and reports no negatives. Needless to say, as most businesses, she relies upon the line of credit to put her over the hump during times of lower cash flow. What happened next could not have been conjured up in your worst nightmare.
One afternoon on January 30, 2009, she received a call from her bank. In the past, she looked forward to receiving these calls because they were so energized and cooperative. They made her feel special. Her credit rating was so good, that twice she merely called up the bank manager, speaking to him by his first name, and was able to extend the line of credit by a simple verbal request. In those days, the conversations were something like: "Hello Mrs. Smith. I trust everything has been good with your business and family. How is your son John enjoying the college life? Sure--we'll be delighted to extend your credit line again and I will have one of my associates prepare the paperwork and get it over to you as soon as possible. Look to speaking with you soon." Today was different. Her CPA was in the office that afternoon picking up profit and loss sheets when the call came in. It was not the manager. It was someone at the bank she had never met.
"Is this Mrs. Smith? I am Frank Thompson with ABC Bank." He began with a twang that could only be described as consummate arrogance.
"Well hello. How are you today?" Mrs. Smith said cheerfully.
"Fine. Mrs. Smith, I assume you're busy so let me come right to the point. We have reviewed your loan accounts and effective immediately I am notifying you that they are being called and are now due and payable." It came to her in words that were abrupt and stinging. Although her heart skipped a beat, her first reaction was they must be calling the wrong person. She immediately motioned her CPA to get on the line.
"Hi. This is Mr. Evans, Mr. Smith's CPA. Would you be so kind as to repeat what you just told Mrs. Smith?"
Mr. Thompson was clearly agitated in having to repeat himself: "I'm really not accustomed to having to repeat myself, but I will tell you again. Mrs. Smith's $200,000 line of credit is canceled effective immediately and all sums are due and payable. Do I make myself clear?
"I'm sorry, we don't understand. Is there a problem with the account? To my knowledge Mrs. Smith has always paid her monthly installments on time and his current as we speak."
To say Mr. Thompson was rude was an understatement. Now he became even more bothered by the conversation: "It's clear you don't understand. I would suggest that you read the clear language of the loan agreement that gives us the option of doing so at any time with two weeks notice. I am giving you this notice now. Having said this in very simple language, I assume you have the basic intelligence to understand what I just said."
"Sorry, but we're just trying to be able to digest this news. This is very serious. We can't just pull out our checkbooks and a make a full payment on one day's notice . You don't have to be rude to us." Although still in shock, Mrs. Smith tried your best to soften the conversation.
Mr. Thompson was now eager to end the conversation. "Let me make it even clearer. Based on what I just told you, our bank no longer has a business relationship with you. You would be well advised to take steps to pay this account so that legal action is not necessary."
"Please understand that we need some time to think this through . . . I should . . . I mean I need to get a hold of the manager first," she pleaded.
"I'm handling the account now. You are not to talk to anyone else but me." The tone of of his voice was unmistakable and threatening.
At that point the conversation went steadily downhill. She and her CPA spent the rest of the day going over the books and speaking with their attorney.
Sound like something that cannot happen in America to a successful small business? Well, think again. These are exact quotes of the conversation. The big bank is simply stomping out big small businesses to improve their balance sheets. The lifesaver that has thrown to the big banks in the hopes they would pass it to small businesses on Main Street has simply not happened. It is at least understandable if a large bank decides not to make a new loan in this challenge economy. But it's another thing altogether to cancel existing loans with good customers.
Is this an isolated occurrence? Not all. Here is another example. Robert Picou is the President of the California manufacturing company known as California Ribbon and Carbon Co., Inc., with a plant located in Los Angeles. Robert is the epitome of the seasoned business owner, knowledgeable, practical, optimistic, and understandably proud of his company's heritage. After talking to him, you get the uncontrolled urge to get in the car and drive out to his plant. You get the image of a certain industrial vibrancy which is missing in America.
He should be proud. It is a story right out of the movies. In 1939, his father started selling old fashioned manual typewriter ribbons door to door to business owners in the Los Angeles area. But unlike Willy Loman in "Death of a Salesman", he made it into a real success. 70 years later this closely held family corporation has continued to thrive. To manage the ruts along the way, twenty years ago he took out a business credit card with a well known company and secured a large credit line. Needless to say, he has paid it on time ever since. But then he got a sudden and unexpected surprise in the mail. The credit card company unilaterally cut his credit line and froze up this access to working capital.
He wasn't especially daunted by this news because after all, he had a longstanding relationship with his large bank. All we needed to do was call them up and ask for an extension of his line of credit. His bank did get $150,000,000 in TARP money to presumably free up the money. Ten years ago he owed them as much as $1.4 million, but because of the success of his business, was able to pay it down to $88,000. A perfect candidate to receive some of the bailout monies and create an even more positive cash flow for him and the neighboring economy. No problem, right? Wrong again.
With no explanation, his bank turned him down flat. Asking why, he has yet to receive a credible answer. With orders piling in, his company is now on the unenviable position of not being able to fund all the orders received. Not to mention the rippling effect it has on his suppliers and employees, all of which have a tangible stake in our troubled economy. It is apparent that large banks have no intention whatsoever of using bailout monies for the benefit of small businesses.
Now the good news. Smaller community banks are interested in your business through the vehicle know as an SBA guaranteed loan. These institutions are using the incentives given by the SBA guarantee to cut their risk of loss and build up a better portfolio to be sold on the secondary market. You just have to find the right bank. At least someone realizes the foundational strength small businesses give to the overall economy.
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Obama's New SBA Small Business Loan Program: 90% Guarantee Provides Welcome Relief
On March 16, 2009 President Obama, in a long awaited address, finally reached out to the 27.2 million small businesses in this country and extended his hand. He may not have gone to the mountain, but he certainly walked down Main Street and acknowledged the perils of struggling small business owners. And it was just a matter of time that he did so. After all, the American Recovery and Reinvestment Act of 2009 ("Recovery Act") nicely laid out beneficial provisions for small businesses and just as promised, regulations have come out by the SBA to start the ball rolling. And I'm not talking about more government promises or red tape, but bottom line capital to be infused into the coffers of deserving business owners. So let's roll up our sleeves and see one of the more important elements that was put into place on Monday.
When the Small Business Act was enacted in 1958, it had a very simple mission. Find a way to get loans to small businesses that couldn't get them through traditional channels. It did this in an ingenious way. They knew banks where reluctant to loan to small businesses, especially startups, because of fear of failure. So the SBA collected a fee on each loan and used this as a fund to pay banks if there was a default. Bingo, there was invented the SBA guarantee fee. It doesn't take a degree in rocket science from MIT and an MBA from Harvard to know this gives incentives to the banks to make more loans.
SBA loan programs historically had guarantees of 85% for loans of $150,000 or less and 75% for loans greater than $150,000 (13 CFR Part 120). On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change).
As we all know, on February 17, 2009 the President signed into law the Recovery Act which, under section 502, authorized the SBA to guarantee loans up to 90%. On Monday, the SBA completed its review of the legislation and announced in a Policy Notice that indeed the guarantee would go up to 90% effective March 16th under the various 7(a) SBA loan programs.
Think about this for a moment. Simple math tells us more guarantee, the greater the likelihood of the bank making the loan. For goodness sakes, 90% is tapping on the door of a 100% guarantee! Also note the guaranteed portion is typically sold on the secondary market (which has recently shut down to almost nothing) so there is more chance for loans to be sold and more money to go back into the coffers of the banks for further lending.
Now let us translate this into popular programs for small businesses. The Community Express Loan Program allows quick and reasonably priced SBA loans up to $250,000 (although most lenders are dispersing monies in the neighborhood of between $5,000 and $50,000 unsecured). They are now guaranteed to 90%. And remember there are lenders now making such a loans even in this economy. The equally popular U.S. Patriot Express Loan Program for veterans and their spouses or windows, goes to $500,000 and is also guaranteed now to 90%. At the same time, the workhorse 7(a) loan program, which is usually for loans in the hundreds of thousands of dollars, was likewise increased to 90%. Not to bore you with the details, but the only exceptions are almost minuscule, namely the guarantees are not used for business ventures involved in gambling, aquariums, zoos, golf courses, or swimming pools. Further, the SBA will not issue a guarantee to a borrower that hires, recruits, or refers for a fee, employees that are unauthorized aliens as defined by the Secretary of Homeland Security.
And it gets even better. Banks that are already SBA lenders don't have to do anything different in the loan process. Namely, there is no change to the submission process to get a SBA guarantee loan number. They simply get their approvals from the same central processing units throughout the nation as they did before. The same streamlined paperwork.
Of course, taxpayers' dollars will be funding these guarantees, especially since the borrower no longer pays for a guarantee fee on closing. In other words, the 90% guarantee will stay in effect as long as there is money appropriated by Congress. The current estimate is that approximately $8.7 billion will be allocated for these guarantees, of course depending upon the loan volume and default rate.
So how will the banks react to this news? Many experts predict in a favorable manner. Obviously, with a 90% guaranty, there is less risk if the loan goes south. This also means the traditional robust secondary market for purchasing government backed loans, once it starts to kick-in, will also find them desirable for purchase in investment pools. There is also another intangible you don't read about in the news: The environment in Washington has never been better for small businesses. You now have an Administration that respects small businesses and wants to do everything it can to engender their success.
Translation: banks are comfortable with the new SBA (as opposed to the more insular and contentious regime under the Bush administrations that spent more time fighting and failing to communicate with lenders than trying to treat them as partners) and so more willing to make loans even though the default rates go higher. They know the Obama Adminstration will probably understand the situation because of current market conditions.
So for the small business owner, this news of 90% guarantees is very favorable. Why did it take them so long?
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
When the Small Business Act was enacted in 1958, it had a very simple mission. Find a way to get loans to small businesses that couldn't get them through traditional channels. It did this in an ingenious way. They knew banks where reluctant to loan to small businesses, especially startups, because of fear of failure. So the SBA collected a fee on each loan and used this as a fund to pay banks if there was a default. Bingo, there was invented the SBA guarantee fee. It doesn't take a degree in rocket science from MIT and an MBA from Harvard to know this gives incentives to the banks to make more loans.
SBA loan programs historically had guarantees of 85% for loans of $150,000 or less and 75% for loans greater than $150,000 (13 CFR Part 120). On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change).
As we all know, on February 17, 2009 the President signed into law the Recovery Act which, under section 502, authorized the SBA to guarantee loans up to 90%. On Monday, the SBA completed its review of the legislation and announced in a Policy Notice that indeed the guarantee would go up to 90% effective March 16th under the various 7(a) SBA loan programs.
Think about this for a moment. Simple math tells us more guarantee, the greater the likelihood of the bank making the loan. For goodness sakes, 90% is tapping on the door of a 100% guarantee! Also note the guaranteed portion is typically sold on the secondary market (which has recently shut down to almost nothing) so there is more chance for loans to be sold and more money to go back into the coffers of the banks for further lending.
Now let us translate this into popular programs for small businesses. The Community Express Loan Program allows quick and reasonably priced SBA loans up to $250,000 (although most lenders are dispersing monies in the neighborhood of between $5,000 and $50,000 unsecured). They are now guaranteed to 90%. And remember there are lenders now making such a loans even in this economy. The equally popular U.S. Patriot Express Loan Program for veterans and their spouses or windows, goes to $500,000 and is also guaranteed now to 90%. At the same time, the workhorse 7(a) loan program, which is usually for loans in the hundreds of thousands of dollars, was likewise increased to 90%. Not to bore you with the details, but the only exceptions are almost minuscule, namely the guarantees are not used for business ventures involved in gambling, aquariums, zoos, golf courses, or swimming pools. Further, the SBA will not issue a guarantee to a borrower that hires, recruits, or refers for a fee, employees that are unauthorized aliens as defined by the Secretary of Homeland Security.
And it gets even better. Banks that are already SBA lenders don't have to do anything different in the loan process. Namely, there is no change to the submission process to get a SBA guarantee loan number. They simply get their approvals from the same central processing units throughout the nation as they did before. The same streamlined paperwork.
Of course, taxpayers' dollars will be funding these guarantees, especially since the borrower no longer pays for a guarantee fee on closing. In other words, the 90% guarantee will stay in effect as long as there is money appropriated by Congress. The current estimate is that approximately $8.7 billion will be allocated for these guarantees, of course depending upon the loan volume and default rate.
So how will the banks react to this news? Many experts predict in a favorable manner. Obviously, with a 90% guaranty, there is less risk if the loan goes south. This also means the traditional robust secondary market for purchasing government backed loans, once it starts to kick-in, will also find them desirable for purchase in investment pools. There is also another intangible you don't read about in the news: The environment in Washington has never been better for small businesses. You now have an Administration that respects small businesses and wants to do everything it can to engender their success.
Translation: banks are comfortable with the new SBA (as opposed to the more insular and contentious regime under the Bush administrations that spent more time fighting and failing to communicate with lenders than trying to treat them as partners) and so more willing to make loans even though the default rates go higher. They know the Obama Adminstration will probably understand the situation because of current market conditions.
So for the small business owner, this news of 90% guarantees is very favorable. Why did it take them so long?
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
dimanche 15 mars 2009
Schedule C Tax Deductions - "C" is For Contributions, Contractors & Commissions
Here are three legitimate tax deductions for the self-employed that begin with the letter "C". Do you have these expenses in your sole proprietorship? If so, be sure to report them on your tax return.
1. Contributions. By contributions, I'm referring to charitable contributions - donations you make to tax-exempt organizations (known in tax lingo as 501c3 organizations) such as churches, synagogues and other humanitarian or educational institutions that have IRS non-profit status.
This is one of those tricky deductions. If you are a sole proprietor and make a donation from your business checking account, you don't actually take the deduction for this contribution on Schedule C. Instead, the deduction is reported on Schedule A, Itemized Deductions. So if you don't file Schedule A, which is fairly common because IRS statistics show that about two-thirds of personal tax returns take the standard deduction, you don't get to write off the donation.
So, a word of caution to all you kind-hearted sole proprietors: do not assume that just because you made the donation from your business account, you automatically get to deduct it.
Corporations ("C" corporations but not "S" corporation) do get to deduct charitable contributions as a business expense on the corporate income tax return (Form 1120), provided certain conditions are met. Is that reason enough to incorporate? Probably not. But hopefully you aren't making donations merely for the tax benefits.
2. Contractors. If you hire independent contractors to perform services for your business, those fees are deductible on Schedule C. Line 11 is the logical place to report it, "Contract labor."
Keep in mind that this is one of the most controversial deductions in business and a potential red flag if the IRS suspects abuse. Why is that? Because many businesses pay their workers as independent contractors rather than employees merely to avoid the payroll taxes. This is a big no-no and if you get caught, you'll regret it. If the IRS can prove that your contractors are actually employees, they can reclassify past compensation as wages and required you to pay the overdue payroll taxes, plus late payment penalties and interest.
Now, if you have a legitimate contractor relationship with a service provider, you need not worry about this. Just be sure you do things right: if you hire an independent contractor, do you have a contract? Does the contractor send you invoices? And at the end of the year, do you send him a Form 1099-MISC? The answer to those questions better be "yes."
For me information on this topic, be sure to talk with your tax professional, or go to the IRS website, search on "independent contractor" and you'll access an excellent article entitled "Independent Contractor or Employee"?
3. Commissions. Another common form of compensation is commissions, reported on Schedule C, Line 10. Again, if you are paying other people a commission for services rendered, be sure that these folks are truly independent contractors and not employees. If they are contractors, you can report the expense on Line 10 and legally avoid payroll taxes. But if they are employees, the compensation should be included on Line 26, Wages, and be subject to payroll taxes, income tax withholdings, and the small mountain of payroll paperwork that accompanies employee compensation.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
1. Contributions. By contributions, I'm referring to charitable contributions - donations you make to tax-exempt organizations (known in tax lingo as 501c3 organizations) such as churches, synagogues and other humanitarian or educational institutions that have IRS non-profit status.
This is one of those tricky deductions. If you are a sole proprietor and make a donation from your business checking account, you don't actually take the deduction for this contribution on Schedule C. Instead, the deduction is reported on Schedule A, Itemized Deductions. So if you don't file Schedule A, which is fairly common because IRS statistics show that about two-thirds of personal tax returns take the standard deduction, you don't get to write off the donation.
So, a word of caution to all you kind-hearted sole proprietors: do not assume that just because you made the donation from your business account, you automatically get to deduct it.
Corporations ("C" corporations but not "S" corporation) do get to deduct charitable contributions as a business expense on the corporate income tax return (Form 1120), provided certain conditions are met. Is that reason enough to incorporate? Probably not. But hopefully you aren't making donations merely for the tax benefits.
2. Contractors. If you hire independent contractors to perform services for your business, those fees are deductible on Schedule C. Line 11 is the logical place to report it, "Contract labor."
Keep in mind that this is one of the most controversial deductions in business and a potential red flag if the IRS suspects abuse. Why is that? Because many businesses pay their workers as independent contractors rather than employees merely to avoid the payroll taxes. This is a big no-no and if you get caught, you'll regret it. If the IRS can prove that your contractors are actually employees, they can reclassify past compensation as wages and required you to pay the overdue payroll taxes, plus late payment penalties and interest.
Now, if you have a legitimate contractor relationship with a service provider, you need not worry about this. Just be sure you do things right: if you hire an independent contractor, do you have a contract? Does the contractor send you invoices? And at the end of the year, do you send him a Form 1099-MISC? The answer to those questions better be "yes."
For me information on this topic, be sure to talk with your tax professional, or go to the IRS website, search on "independent contractor" and you'll access an excellent article entitled "Independent Contractor or Employee"?
3. Commissions. Another common form of compensation is commissions, reported on Schedule C, Line 10. Again, if you are paying other people a commission for services rendered, be sure that these folks are truly independent contractors and not employees. If they are contractors, you can report the expense on Line 10 and legally avoid payroll taxes. But if they are employees, the compensation should be included on Line 26, Wages, and be subject to payroll taxes, income tax withholdings, and the small mountain of payroll paperwork that accompanies employee compensation.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
Schedule C Tax Deductions: "B" Is for Bad Debts, Bank Charges & Books
Are you wondering whether you are deducting all the expenses the law allows for your sole proprietorship? Here are three commonly overlooked deductions that begin with the letter "B".
1. Bad Debts. If you use the Accrual Method of bookkeeping, you record income from a sale when you invoice the customer, regardless of when or even whether they pay you. So what happens if they don't pay you? Let's say hat several months have passed and you keep sending them statements that continue to be ignored. By the end of the year, if you've done all you can do to collect the payment without success, you can take a deduction for the uncollectible amount. This is known as a "bad debt" and you should write it off.
What happens if you deduct the bad debt on your 2008 return and the customer surprises you by making payment in 2009? You simply record the payment as income on your 2009 return.
If you use the Cash Method of bookkeeping, you record the income only when the customer pays you, so there really is no bad debt to deduct.
2. Bank Charges. All those annoying nickel and dime bank fees that appear on your monthly bank statement are deductible business expenses. The key here is to take the time to carefully examine every monthly bank statement and then record those bank charges in your bookkeeping software program or manual record keeping system. It's easy to overlook these charges because you didn't write a check or use your credit card to incur them.
The same thing applies to merchant credit card fees. If you accept credit card payments from customers, fees are probably assessed to your bank account every month and these fees are automatically deducted from your bank balance. Be sure to record those charges, too, or you'll miss out on bona fide tax deduction.
3. Books, Magazines, Trade Journals. Any book you purchase for business use is a legitimate tax deduction. Be careful here not to limit this deduction to only those books that deal with your particular industry, product or service. Self-help books contain much advice that is applicable to your life as a business owner, as well as books on topics such as time management, people skills, salesmanship and marketing.
And while we're on the topic of reading material, you probably subscribe to newspapers, magazines and trade journals that you read primarily for business purposes, so these are deductible as well.
Since none of these three expenses have a specific Schedule C line in Part II, the best place to put them is in Part V, Other Expenses. The total of all these Other Expenses (line 48) is then transferred to Schedule C, Line 27.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
1. Bad Debts. If you use the Accrual Method of bookkeeping, you record income from a sale when you invoice the customer, regardless of when or even whether they pay you. So what happens if they don't pay you? Let's say hat several months have passed and you keep sending them statements that continue to be ignored. By the end of the year, if you've done all you can do to collect the payment without success, you can take a deduction for the uncollectible amount. This is known as a "bad debt" and you should write it off.
What happens if you deduct the bad debt on your 2008 return and the customer surprises you by making payment in 2009? You simply record the payment as income on your 2009 return.
If you use the Cash Method of bookkeeping, you record the income only when the customer pays you, so there really is no bad debt to deduct.
2. Bank Charges. All those annoying nickel and dime bank fees that appear on your monthly bank statement are deductible business expenses. The key here is to take the time to carefully examine every monthly bank statement and then record those bank charges in your bookkeeping software program or manual record keeping system. It's easy to overlook these charges because you didn't write a check or use your credit card to incur them.
The same thing applies to merchant credit card fees. If you accept credit card payments from customers, fees are probably assessed to your bank account every month and these fees are automatically deducted from your bank balance. Be sure to record those charges, too, or you'll miss out on bona fide tax deduction.
3. Books, Magazines, Trade Journals. Any book you purchase for business use is a legitimate tax deduction. Be careful here not to limit this deduction to only those books that deal with your particular industry, product or service. Self-help books contain much advice that is applicable to your life as a business owner, as well as books on topics such as time management, people skills, salesmanship and marketing.
And while we're on the topic of reading material, you probably subscribe to newspapers, magazines and trade journals that you read primarily for business purposes, so these are deductible as well.
Since none of these three expenses have a specific Schedule C line in Part II, the best place to put them is in Part V, Other Expenses. The total of all these Other Expenses (line 48) is then transferred to Schedule C, Line 27.
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Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
Schedule C Tax Deductions: "A" Is for Accountants, Attorneys & Advertising
If you're a sole proprietor, here's the lowdown on three small business tax deductions you can report on Schedule C. They all start with the letter "A".
1. Accountants. The fees you pay your accountant are generally tax-deductible on Schedule C, provided the fees are for services rendered on behalf of your business. So, if you pay an accountant to prepare your income tax return, that tax prep fee is deductible to the extent it applies to the forms required for your sole proprietorship, such as Schedule C, Schedule SE, Form 4562 and Form 8829.
But what if your accountant also prepares Form 1040, Schedule A, and any other non-business forms on your personal income tax return? You cannot take a deduction on Schedule C for the fees paid to prepare personal income tax forms, so ask your accountant to itemize his tax prep fees on the invoice, separating personal form fees (like Form 1040) from business form fees (like Schedule C). Only the business form fees are deductible on Schedule C. The personal form fees are deductible on Schedule A.
Does your accountant provide other business-related services? Fees for these other services are also deductible, such as bookkeeping, payroll, payroll tax returns (including all the year-end reporting such as Form W-2's and Form 1099-MISC), business consulting, software training, financial statement preparation and analysis, and so on. Should you ever be audited and pay your accountant to represent you before the IRS, such fees would also be deductible.
Where do your report accountant fees on Schedule C? Line 17 is the most logical place, "Legal and professional services".
2. Attorneys. Legal fees you incur in the course of business are also deductible. And again, it's critical that you only deduct attorney fees related to your business. Personal legal fees are not deductible on Schedule C. Examples of business-related legal fees include the drafting of contracts and any other documents for use in your business. If you pay a monthly fee to a company like Prepaid Legal (for business legal services), that is a deductible business expense. Put your attorney fees deduction on Line 17, right along with any accountant expense.
3. Advertising. Any expense you had to promote your business, either offline or online, is deductible as advertising. Think about all the possible ways to hang out your shingle: in the offline world, this includes print media ads, (be sure to include not only newspaper and magazine ads, but also ads in your local neighborhood association newsletter and your child's school PTA phone directory), television and/or radio commercials, coupon decks, yellow pages, billboards, etc. If you use direct mail, you can deduct the cost of printing as well as the postage.
Do you advertise via the internet? Online ads are just as deductible as offline ads: banner ads, ezine ads and email ads are all deductible. Advertising expense has its own line on Schedule C, line 8.
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Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
1. Accountants. The fees you pay your accountant are generally tax-deductible on Schedule C, provided the fees are for services rendered on behalf of your business. So, if you pay an accountant to prepare your income tax return, that tax prep fee is deductible to the extent it applies to the forms required for your sole proprietorship, such as Schedule C, Schedule SE, Form 4562 and Form 8829.
But what if your accountant also prepares Form 1040, Schedule A, and any other non-business forms on your personal income tax return? You cannot take a deduction on Schedule C for the fees paid to prepare personal income tax forms, so ask your accountant to itemize his tax prep fees on the invoice, separating personal form fees (like Form 1040) from business form fees (like Schedule C). Only the business form fees are deductible on Schedule C. The personal form fees are deductible on Schedule A.
Does your accountant provide other business-related services? Fees for these other services are also deductible, such as bookkeeping, payroll, payroll tax returns (including all the year-end reporting such as Form W-2's and Form 1099-MISC), business consulting, software training, financial statement preparation and analysis, and so on. Should you ever be audited and pay your accountant to represent you before the IRS, such fees would also be deductible.
Where do your report accountant fees on Schedule C? Line 17 is the most logical place, "Legal and professional services".
2. Attorneys. Legal fees you incur in the course of business are also deductible. And again, it's critical that you only deduct attorney fees related to your business. Personal legal fees are not deductible on Schedule C. Examples of business-related legal fees include the drafting of contracts and any other documents for use in your business. If you pay a monthly fee to a company like Prepaid Legal (for business legal services), that is a deductible business expense. Put your attorney fees deduction on Line 17, right along with any accountant expense.
3. Advertising. Any expense you had to promote your business, either offline or online, is deductible as advertising. Think about all the possible ways to hang out your shingle: in the offline world, this includes print media ads, (be sure to include not only newspaper and magazine ads, but also ads in your local neighborhood association newsletter and your child's school PTA phone directory), television and/or radio commercials, coupon decks, yellow pages, billboards, etc. If you use direct mail, you can deduct the cost of printing as well as the postage.
Do you advertise via the internet? Online ads are just as deductible as offline ads: banner ads, ezine ads and email ads are all deductible. Advertising expense has its own line on Schedule C, line 8.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
Small Business Tax Tips: How to Deduct Anything
Looking for an easy way to know exactly what you can and cannot deduct on your income tax return? Knowing what is deductible and what isn't deductible has mystified small business owners for decades. This article should help you see the big picture.
What's deductible? Believe it or not, anything is deductible. Anything? Yes, anything. Let me explain.
Anything is deductible, provided that it is specifically mentioned in the tax code as deductible. It's as if Uncle Sam is saying, with a big smile on his face, "This particular item is deductible, no doubt about it."
Anything is deductible, provided that it is not specifically mentioned in the tax code as non-deductible. There are deductions that are specifically disallowed. Again, imagine Uncle Sam (this time with a frown) telling you, "Sorry, but this particular item is not deductible, no doubt about it."
But what most taxpayers do not realize (and the IRS is in no hurry to tell you this) is that most deductions are not specifically mentioned anywhere in the tax code. By that I mean this: most allowable deductions are not said to be deductible or non-deductible. Getting confused? Bear with me here.
For example, where does it say in the tax code that paper clips used in your office are deductible? Guess what - it doesn't. How about staples? Same thing -- there isn't really a specific reference to that either. But neither does it say that paper clips (or staples) are non-deductible.
Then how do we know what is deductible and what isn't? Because the tax code does provide some general rules about what is deductible, and these general rules can be boiled down to this famous statement: Anything is deductible, provided that it is an ordinary and necessary business expense. Any expense that meets that two-part requirement is deductible. Let's unpack that concept.
Here's how the IRS defines these two requirements: By "ordinary", the tax code simply means an expense that is "common and accepted" in your type of business. Is it common for an office to use paper clips in the normal course of business? Obviously. How about staples (not to mention the stapler)? Of course.
Not only are basic office supplies commonly used in virtually every business, but it is an accepted practice for these items to be a normal part of a typical business, right? I think you get the idea. And you should also now see why the tax code doesn't specifically mention paper clips or staples in it's list of legitimate business deductions.
By "necessary", the tax code means an expense that is appropriate and helpful for your business. Now apply that concept to office supplies. Are paper clips and steps appropriate and helpful? Absolutely.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
What's deductible? Believe it or not, anything is deductible. Anything? Yes, anything. Let me explain.
Anything is deductible, provided that it is specifically mentioned in the tax code as deductible. It's as if Uncle Sam is saying, with a big smile on his face, "This particular item is deductible, no doubt about it."
Anything is deductible, provided that it is not specifically mentioned in the tax code as non-deductible. There are deductions that are specifically disallowed. Again, imagine Uncle Sam (this time with a frown) telling you, "Sorry, but this particular item is not deductible, no doubt about it."
But what most taxpayers do not realize (and the IRS is in no hurry to tell you this) is that most deductions are not specifically mentioned anywhere in the tax code. By that I mean this: most allowable deductions are not said to be deductible or non-deductible. Getting confused? Bear with me here.
For example, where does it say in the tax code that paper clips used in your office are deductible? Guess what - it doesn't. How about staples? Same thing -- there isn't really a specific reference to that either. But neither does it say that paper clips (or staples) are non-deductible.
Then how do we know what is deductible and what isn't? Because the tax code does provide some general rules about what is deductible, and these general rules can be boiled down to this famous statement: Anything is deductible, provided that it is an ordinary and necessary business expense. Any expense that meets that two-part requirement is deductible. Let's unpack that concept.
Here's how the IRS defines these two requirements: By "ordinary", the tax code simply means an expense that is "common and accepted" in your type of business. Is it common for an office to use paper clips in the normal course of business? Obviously. How about staples (not to mention the stapler)? Of course.
Not only are basic office supplies commonly used in virtually every business, but it is an accepted practice for these items to be a normal part of a typical business, right? I think you get the idea. And you should also now see why the tax code doesn't specifically mention paper clips or staples in it's list of legitimate business deductions.
By "necessary", the tax code means an expense that is appropriate and helpful for your business. Now apply that concept to office supplies. Are paper clips and steps appropriate and helpful? Absolutely.
----------------------------------------------------
Looking for more small business tax tips? For a free copy of the 25-page Special Report "How To Instantly Double Your Deductions", visit http://www.yousaveontaxes.com . Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
mercredi 11 mars 2009
Small Business Marketing: How to Thrive In A Down Economy
One small business owner is a real estate agent and is calling it quits while another is having their best year ever in 2008. One retailer is closing her doors, while another retailer in the same industry is growing like gangbusters. Over and over again, I see a bunch of entrepreneurs struggling while others are thriving. So what's up with that? How can you thrive is this so-called "down economy."
Well, here's what I'm seeing as the difference between the thriving business owners and those who share they are struggling because of the current economy:
Resist the Media Frenzy: My 7-figure mentors don't pay attention to the "recession" news nor do I. I refuse to be told that I'm supposed to be struggling and that things are getting bad, that they're going to get worse, that I'm going to have a hard time, bla bla bla. I shut the TV off - haven't watched the news in months because it's all bad anyway. Instead I choose to focus on opportunity, growth and success and that's what comes my way. Simply put, you create more of what you focus on and that's one big difference I see between the thrivers and the strugglers.
Here's some news we missed that my mentor Dan Kennedy shared: There are more people with more discretionary income, buying power and affluence here in the US than at any time in our history and many many more worldwide than at any time in history. Unfortunately, with the media hype, pessimism is at an all time high.
Evaluate Pre-Existing Conditions: As I read stories on blogs and in the news of suffering small business owners, it seems I always get to a part of the story where they confess that the suffering started long before "recession" was in the air. They share that it's been an uphill battle for a long time. But then the media says it's "recession" and they're sure that's the source of the problem. Here's the difference between the thrivers and those struggling--the thrivers have long since found a system and strategy for enormous success and that strategy works no matter what the economy brings. Those struggling have never really found a consistent way to create enormous success so they feel the weight of any economic change. Your goal may be to discover the business strategy that works consistently!
Step Into Resilience: Similar to what I shared earlier, thriving small business owners have a reliable strategy for success. They know how to tweak their business model to match economic changes if needed. You tweak your products and services by listening to what your target audience is complaining about. It doesn't necessarily mean you change what you do, but you take a "problem resolution" approach (vs a victim approach) to your business. If you have to reduce business spending, for example, then increase your collaboration and joint venturing with others to continue marketing your business - this is a no-cost way to continue bringing in customers.
Choose Action vs Worry: Last I checked, worry didn't pay the bills nor did it improve my business. So I figure I have a choice - action or worry. There's a great saying that "Action Stops Fear." The small business owners who tell me they are thriving aren't in "worry mode." They are into significant ACTION in their businesses. They're not holding back while waiting for "bad stuff" to happen. They are engaged in ACTION that improves their businesses. Don't just wait and hope for new business to come to you. To thrive, you may need to focus on what actions you need to take to create continued success in your business.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
Well, here's what I'm seeing as the difference between the thriving business owners and those who share they are struggling because of the current economy:
Resist the Media Frenzy: My 7-figure mentors don't pay attention to the "recession" news nor do I. I refuse to be told that I'm supposed to be struggling and that things are getting bad, that they're going to get worse, that I'm going to have a hard time, bla bla bla. I shut the TV off - haven't watched the news in months because it's all bad anyway. Instead I choose to focus on opportunity, growth and success and that's what comes my way. Simply put, you create more of what you focus on and that's one big difference I see between the thrivers and the strugglers.
Here's some news we missed that my mentor Dan Kennedy shared: There are more people with more discretionary income, buying power and affluence here in the US than at any time in our history and many many more worldwide than at any time in history. Unfortunately, with the media hype, pessimism is at an all time high.
Evaluate Pre-Existing Conditions: As I read stories on blogs and in the news of suffering small business owners, it seems I always get to a part of the story where they confess that the suffering started long before "recession" was in the air. They share that it's been an uphill battle for a long time. But then the media says it's "recession" and they're sure that's the source of the problem. Here's the difference between the thrivers and those struggling--the thrivers have long since found a system and strategy for enormous success and that strategy works no matter what the economy brings. Those struggling have never really found a consistent way to create enormous success so they feel the weight of any economic change. Your goal may be to discover the business strategy that works consistently!
Step Into Resilience: Similar to what I shared earlier, thriving small business owners have a reliable strategy for success. They know how to tweak their business model to match economic changes if needed. You tweak your products and services by listening to what your target audience is complaining about. It doesn't necessarily mean you change what you do, but you take a "problem resolution" approach (vs a victim approach) to your business. If you have to reduce business spending, for example, then increase your collaboration and joint venturing with others to continue marketing your business - this is a no-cost way to continue bringing in customers.
Choose Action vs Worry: Last I checked, worry didn't pay the bills nor did it improve my business. So I figure I have a choice - action or worry. There's a great saying that "Action Stops Fear." The small business owners who tell me they are thriving aren't in "worry mode." They are into significant ACTION in their businesses. They're not holding back while waiting for "bad stuff" to happen. They are engaged in ACTION that improves their businesses. Don't just wait and hope for new business to come to you. To thrive, you may need to focus on what actions you need to take to create continued success in your business.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
Small Business Advice on Turning Clients Into Prospects
You have ramped up your marketing efforts, hit the streets both offline and online and prospects are starting to show up. Now it's your chance to turn those prospects into clients
You can turn prospects into clients by understanding the 3 phases (and a bonus 4th) that your business must be set up to successfully take them through.
Prospect: This is where I don't know you at all. I have no idea who you are or what you sell. But you, the business owner, have my contact information. In this phase, I'm considered your "prospect." In this phase, it's your job to turn me into a lead. So you market to me by making me an offer (a brochure, flyer, free something, newsletter, something to see if I'll say "yes.").
Question: The big question for you in this phase is: Are you going after prospects? Because only when you go after leads will you find leads.
Lead: This is where I raise my hand an indicate in some way that I'm actually interested in what you have to sell. I signed up to get what you offered. I may have responded to your postcard, flyer, brochure, signed up for your newsletter or free teleseminar etc.) I raised my hand, said "yes" and gave you my information (name, email, etc) In this critical phase, it's your job to convince me to actually buy from you.
Question: The big question for you in this phase is: Are you making your offer attractive enough to turn prospects into leads? And when they become a lead, are you tracking their contact information somewhere?
Client: Contact information is pure gold to any business owner. Your list of leads is your #1 asset. As a lead, you can make me more offers and I may then choose to become your client. The client phase is where I pull out my wallet and give you ca$h or credit card information. I'm sold and I trust you enough to give you money for what you have. And it doesn't matter how much money. If I give you money for something you have, I'm in the client phase.
Question: The big question for you in this phase is: Are you providing what your potential clients really want so that they pull out their wallets to buy from you?
Bonus phase - Raving Fan: I've already bought something from you so I'm indeed your client. I may have even bought from you more than once. But am I a raving fan? In the champion phase, I'm not only buying from you but I'm telling other people about you, how great your products and services are, and also encouraging them to buy. What's even better is that you have no idea I'm actually doing this. But by my referral behavior, I am in fact, your raving fan. And you'll know you have champions when people start showing up saying that they heard about you from someone else. Referrals are happening.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
You can turn prospects into clients by understanding the 3 phases (and a bonus 4th) that your business must be set up to successfully take them through.
Prospect: This is where I don't know you at all. I have no idea who you are or what you sell. But you, the business owner, have my contact information. In this phase, I'm considered your "prospect." In this phase, it's your job to turn me into a lead. So you market to me by making me an offer (a brochure, flyer, free something, newsletter, something to see if I'll say "yes.").
Question: The big question for you in this phase is: Are you going after prospects? Because only when you go after leads will you find leads.
Lead: This is where I raise my hand an indicate in some way that I'm actually interested in what you have to sell. I signed up to get what you offered. I may have responded to your postcard, flyer, brochure, signed up for your newsletter or free teleseminar etc.) I raised my hand, said "yes" and gave you my information (name, email, etc) In this critical phase, it's your job to convince me to actually buy from you.
Question: The big question for you in this phase is: Are you making your offer attractive enough to turn prospects into leads? And when they become a lead, are you tracking their contact information somewhere?
Client: Contact information is pure gold to any business owner. Your list of leads is your #1 asset. As a lead, you can make me more offers and I may then choose to become your client. The client phase is where I pull out my wallet and give you ca$h or credit card information. I'm sold and I trust you enough to give you money for what you have. And it doesn't matter how much money. If I give you money for something you have, I'm in the client phase.
Question: The big question for you in this phase is: Are you providing what your potential clients really want so that they pull out their wallets to buy from you?
Bonus phase - Raving Fan: I've already bought something from you so I'm indeed your client. I may have even bought from you more than once. But am I a raving fan? In the champion phase, I'm not only buying from you but I'm telling other people about you, how great your products and services are, and also encouraging them to buy. What's even better is that you have no idea I'm actually doing this. But by my referral behavior, I am in fact, your raving fan. And you'll know you have champions when people start showing up saying that they heard about you from someone else. Referrals are happening.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
Small Business Marketing: What Does Your Customer Want?
One of the key mistakes new entrepreneurs make is to create a product or service then try to sell it to someone. Typically they have a passion or talent and true value to offer. However, they are unaware of the needs of the person that they are trying to sell to. This new entrepreneur will become increasingly frustrated because they know that they have a good product and they know what they are trying to sell can really help people. And they remain baffled by why no-one wants to buy. Often at the root of this problem is the lack of awareness of who your target market is and also what they want. If you are unaware of your target market, you can refer to my previous article with tips on how to find that out. When you become clear on your target market, then you will need to go discover what they key needs are. You can make this discovery in a variety of ways.
But first let's focus on what you need to find out: Their greatest pains & frustrations: Put aside what you're selling for a moment and just find out what their greatest pains and frustrations are. Don't try to see how that fits your product just yet. Just find out what it is.
Their greatest desires: This is the flipside of their frustrations. What do they want most? Their greatest desires that often escapes them. Solutions they are seeking: This is related to both categories above but are the solutions to the pains, problems, frustrations and helps them to achieve their deepest desires.
Example: Let's say you are a virtual assistant (someone who provides administrative services to solo entrepreneurs). First, figure out precisely who your target market is (remember serving "everyone" is suicidal in business). When you know who your target market is (e.g. Financial Advisors), then you can start discovering what they want.
Here are a few ways in which you can discover what they want:
Find your target market in your community, take them out to lunch or just call them up and ask for a few minutes of their time.
Ask a friend if they know any financial advisors and let them know that a mutual friend referred you. Ask the 3 questions above.
Do google searches and get onto web sites and read what's happening with your target market
Get onto web sites of your potential competitors and checkout how they are marketing to your target market
Get a couple magazines that are typically read by your target market and find out what they are reading and why
Do a mini survey using a free tool like www.surveymonkey.com
What to do with that information:
Ask questions: In our example above, let's say that you, as a Virtual Assistant, find out that their greatest frustration is all the paperwork they have to file and process. You can ask questions about what makes that so frustrating or painful. What created that frustration in the first place? How long have they been enduring that frustration? What would make that frustration go away? What would life be like without that frustration? What would be the perfect solution for that frustration? So you're asking a lot of questions about what the pain or frustration is and what would solve that pain or frustration for them.
Take plenty of notes. Why? Because the exact words they are using to answer your questions are precisely how you will market and sell your products. When you describe your product or service, you must find a way to connect that description with your target market is describing as their pains, frustrations or desires. When they see their own words in your ad or flyer etc., they will immediately identify with you, your product, and your business because it sounds like exactly what they are looking for.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
But first let's focus on what you need to find out: Their greatest pains & frustrations: Put aside what you're selling for a moment and just find out what their greatest pains and frustrations are. Don't try to see how that fits your product just yet. Just find out what it is.
Their greatest desires: This is the flipside of their frustrations. What do they want most? Their greatest desires that often escapes them. Solutions they are seeking: This is related to both categories above but are the solutions to the pains, problems, frustrations and helps them to achieve their deepest desires.
Example: Let's say you are a virtual assistant (someone who provides administrative services to solo entrepreneurs). First, figure out precisely who your target market is (remember serving "everyone" is suicidal in business). When you know who your target market is (e.g. Financial Advisors), then you can start discovering what they want.
Here are a few ways in which you can discover what they want:
Find your target market in your community, take them out to lunch or just call them up and ask for a few minutes of their time.
Ask a friend if they know any financial advisors and let them know that a mutual friend referred you. Ask the 3 questions above.
Do google searches and get onto web sites and read what's happening with your target market
Get onto web sites of your potential competitors and checkout how they are marketing to your target market
Get a couple magazines that are typically read by your target market and find out what they are reading and why
Do a mini survey using a free tool like www.surveymonkey.com
What to do with that information:
Ask questions: In our example above, let's say that you, as a Virtual Assistant, find out that their greatest frustration is all the paperwork they have to file and process. You can ask questions about what makes that so frustrating or painful. What created that frustration in the first place? How long have they been enduring that frustration? What would make that frustration go away? What would life be like without that frustration? What would be the perfect solution for that frustration? So you're asking a lot of questions about what the pain or frustration is and what would solve that pain or frustration for them.
Take plenty of notes. Why? Because the exact words they are using to answer your questions are precisely how you will market and sell your products. When you describe your product or service, you must find a way to connect that description with your target market is describing as their pains, frustrations or desires. When they see their own words in your ad or flyer etc., they will immediately identify with you, your product, and your business because it sounds like exactly what they are looking for.
----------------------------------------------------
And now I'd like to offer you a free audio on "How to Create A Steady Stream of Clients for Your Small Business" at http://www.GreatSmallBusinessAdvice.com . Allison is an author, speaker, and Small Business Coach to self-employed solo entrepreneurs. She is also the creator of http://www.TheSmallBusinessSuccessMovie.com
dimanche 8 mars 2009
Small Business Loan Review. Good News--Stimulus Bill Allows SBA 90% Guarantee for Business Loans
Anyone remotely involved with small businesses, whether as a consultant, lender, supplier, leasing specialist, trade association, or simply as a consumer who is tired of driving by sections of town and wondering why your favorite business unceremoniously threw in the towel, would very much like to hear some good news. Not to mention the small business owner itself. After all, there are 27 million small businesses that deserve to be thriving in this nation, but too often were ignored by the Bush administration. Classically non-complainers by nature, they just want a scrap of hope thrown their way. And we are not talking about wide-eyed idealists looking for handouts—in all due respect to Emily Dickinson, they're not looking for the "thing with feathers that perches in the soul". Just a few bucks and we will run with it.
Fortunately there is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
If you have tried to wade through the 1,100 or so pages of the new stimulus bill (American Recovery and Reinvestment Act of 2009), you know its like chipping through granite. But let me pull out a little gem. It now allows the U.S. Small Business Administration (SBA to you) to guarantee up to 90% of loans made by private lenders under their program. Let me explain. This is great for Community Express.
When the Small Business Act was enacted in 1958, it had a very simple mission. Find a way to get loans to small businesses that couldn't get them through traditional channels. It did this in an ingenious way. They knew banks where reluctant to loan to small businesses, especially startups, because of fear of failure. So the SBA collected a fee on each loan and used this as a fund to pay banks if there was a default. Bingo, there was invented the SBA guarantee fee. It doesn't take a degree in rocket science from MIT and an MBA from Harvard to know this gives incentives to the banks to make more loans.
SBA loan programs have guarantees from 50% to 85%. Specifically, the SBA currently has an 85% guarantee on loans up to $150,000 and up to 75% on loans above $150,000. On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change). With the new stimulus bill, the SBA has the right to increase these fees to 90%.
Think about this for a moment. Simple math tells us more guarantee, the greater the likelihood of the bank making the loan. For goodness sakes, 90% is tapping on the door of a 100% guarantee! Also note the guaranteed portion is typically sold on the secondary market (which has recently shut down to almost nothing) so there is more chance for loans to be sold and more money to go back into the coffers of the banks for further lending.
Notice I said the SBA has the right to increase it to 90%. It can pick which program. And it has not occurred yet. But if I was a betting person, I would say they would be seriously looking at most of the programs because everyone is scraping for ideas to revive the economy.
For those addicted to primary source documents, this is what the new statute, in relevant part (my attorney wanted me to add that) says:
SEC. 502. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES. (a) PURPOSE- The purpose of this section is to permit the Small Business Administration to guarantee up to 90 percent of qualifying small business loans made by eligible lenders. (b) DEFINITIONS- For purposes of this section: (1) The term `Administrator' means the Administrator of the Small Business Administration. (2) The term `qualifying small business loan' means any loan to a small business concern pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following) except for such loans made under section 7(a)(31).
There is also a sunset provision under Subparagraph (f) that the guarantees are only good for one year after enactment of the bill, unless extended by Congress.
So what does it do for me now as a small business owner? Well now the not so good news. I predict the SBA will be increasing many of its programs to 90%. But to get the banks in the lending mood again, there has to be a secondary market. There is also new legislation on that, which we will discuss in another article. But once we have a secondary market, hopefully the banks will not only loan, but do so in a big way. For three reasons:
First, history tells us when there is economic inactivity due primarily to depressed conditions, when the cycle changes for the better, like a sling shot affect, it changes dramatically. Remember when people were unable to refinance or purchase their homes because of tight markets and high interest rates? The rates went down and many jumped at the chance to refinance, improve their homes, and purchase (some say too precipitously) with abundance. Although this is an overstatement and also depends upon other factors such as employment, standards of living, etc., the analogy holds that when things loosen up, there will be a substantial number of business loans.
Secondly, banks are in large part in the business of making loans and they have not been doing so for some time. They will be anxious to make profits again.
Lastly, simple economics tells us when there is a vacuum in the market; capital will rush in and take advantage of that open market and initial lack of competition. Large banks are not making business loans so small community banks are starting to rush in to take over the arena. Give them a secondary market and they will explode.
So for the small business owner, I think this news of 90 % guarantees is favorable. Why did it take them so long?
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Fortunately there is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
If you have tried to wade through the 1,100 or so pages of the new stimulus bill (American Recovery and Reinvestment Act of 2009), you know its like chipping through granite. But let me pull out a little gem. It now allows the U.S. Small Business Administration (SBA to you) to guarantee up to 90% of loans made by private lenders under their program. Let me explain. This is great for Community Express.
When the Small Business Act was enacted in 1958, it had a very simple mission. Find a way to get loans to small businesses that couldn't get them through traditional channels. It did this in an ingenious way. They knew banks where reluctant to loan to small businesses, especially startups, because of fear of failure. So the SBA collected a fee on each loan and used this as a fund to pay banks if there was a default. Bingo, there was invented the SBA guarantee fee. It doesn't take a degree in rocket science from MIT and an MBA from Harvard to know this gives incentives to the banks to make more loans.
SBA loan programs have guarantees from 50% to 85%. Specifically, the SBA currently has an 85% guarantee on loans up to $150,000 and up to 75% on loans above $150,000. On the other hand, there are some programs that only go as high as 50%, including the Express Loan program (for those types of loans the new guarantee will not change). With the new stimulus bill, the SBA has the right to increase these fees to 90%.
Think about this for a moment. Simple math tells us more guarantee, the greater the likelihood of the bank making the loan. For goodness sakes, 90% is tapping on the door of a 100% guarantee! Also note the guaranteed portion is typically sold on the secondary market (which has recently shut down to almost nothing) so there is more chance for loans to be sold and more money to go back into the coffers of the banks for further lending.
Notice I said the SBA has the right to increase it to 90%. It can pick which program. And it has not occurred yet. But if I was a betting person, I would say they would be seriously looking at most of the programs because everyone is scraping for ideas to revive the economy.
For those addicted to primary source documents, this is what the new statute, in relevant part (my attorney wanted me to add that) says:
SEC. 502. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES. (a) PURPOSE- The purpose of this section is to permit the Small Business Administration to guarantee up to 90 percent of qualifying small business loans made by eligible lenders. (b) DEFINITIONS- For purposes of this section: (1) The term `Administrator' means the Administrator of the Small Business Administration. (2) The term `qualifying small business loan' means any loan to a small business concern pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following) except for such loans made under section 7(a)(31).
There is also a sunset provision under Subparagraph (f) that the guarantees are only good for one year after enactment of the bill, unless extended by Congress.
So what does it do for me now as a small business owner? Well now the not so good news. I predict the SBA will be increasing many of its programs to 90%. But to get the banks in the lending mood again, there has to be a secondary market. There is also new legislation on that, which we will discuss in another article. But once we have a secondary market, hopefully the banks will not only loan, but do so in a big way. For three reasons:
First, history tells us when there is economic inactivity due primarily to depressed conditions, when the cycle changes for the better, like a sling shot affect, it changes dramatically. Remember when people were unable to refinance or purchase their homes because of tight markets and high interest rates? The rates went down and many jumped at the chance to refinance, improve their homes, and purchase (some say too precipitously) with abundance. Although this is an overstatement and also depends upon other factors such as employment, standards of living, etc., the analogy holds that when things loosen up, there will be a substantial number of business loans.
Secondly, banks are in large part in the business of making loans and they have not been doing so for some time. They will be anxious to make profits again.
Lastly, simple economics tells us when there is a vacuum in the market; capital will rush in and take advantage of that open market and initial lack of competition. Large banks are not making business loans so small community banks are starting to rush in to take over the arena. Give them a secondary market and they will explode.
So for the small business owner, I think this news of 90 % guarantees is favorable. Why did it take them so long?
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Small Business Loan Update: Stimulus Bill Helps Businesses if They Cannot Pay Their Loans
As we continue to sift dutifully through the over 1,000 pages of the stimulus bill (American Recovery and Reinvestment Act of 2009), there is one provision that is not getting much attention, but could be very helpful to small businesses. If you are a small business and have received an SBA loan from your local banker, but are having trouble making payments, you can get a "stabilization loan". That's right; finally some bailout money goes into the hands of the small business owner, instead of going down the proverbial deep hole of the stock market or large banks. But don't get too excited. It is limited to very specific instances and is not available for vast majority of business owners.
But first let us see if there are any programs out there providing funds to small businesses. Unless a business has a loan, it will not get relief from such a stabilization loan after default. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
There are some news articles that boldly claim the SBA will now provide relief if you have an existing business loan and are having trouble making the payments. This is not a true statement and needs to be clarified. As seen in more detail in this article, this is wrong because it applies to troubled loans made in the future, not existing ones.
Here is how it works. Assume you were one of the lucky few that find a bank to make a SBA loan. You proceed on your merry way but run into tough economic times and find it hard to repay. Remember these are not conventional loans but loans from an SBA licensed lender that are guaranteed for default by the U.S. government through the SBA (depending upon the loan, between 50% and 90%). Under the new stimulus bill, the SBA might come to your rescue. You will be able to get a new loan which will pay-off the existing balance on extremely favorable terms, buying more time to revitalize your business and get back in the saddle. Sound too good to be true? Well, you be the judge. Here are some of the features:
- Does not apply to loans taken out before the stimulus bill. Only for loans after its enactment.
- Does it apply to SBA guaranteed loans or non-SBA conventional loans as well? We don't know for sure. This statute simply says it applies to a "small business concern that meets the eligibility standards and section 7(a) of the Small Business Act" (Section 506 (c) of the new Act). That contains pages and pages of requirements which could apply to both types of loans. Based on some of the preliminary reports from the SBA, it appears it applies to both SBA and non-SBA loans.
- These monies are subject to availability in the funding of Congress. Some think the way we are going with our Federal bailout, we are going be out of money before the economy we are trying to save.
- You don't get these monies unless you are a viable business. Boy, you can drive a truck through that phrase. Our friends at the SBA will determine if you are "viable" (imagine how inferior you will be when you have to tell your friends your business was determined by the Federal government to be "non-viable" and on life support).
- You have to be suffering "immediate financial hardship". So much for holding out making payments because you'd rather use the money for other expansion needs. How many months you have to be delinquent, or how close your foot is to the banana peel of complete business failure, is anyone's guess.
- It is not certain, and commentators disagree, as to whether the Federal government through the SBA will make the loan from taxpayers' dollars or by private SBA licensed banks. In my opinion it is the latter. It carries a 100% SBA guarantee and I would make no sense if the government itself was making the loan.
- The loan cannot exceed $35,000. Presumably the new loan will be "taking out" or refinancing the entire balance on the old one. So if you had a $100,000 loan that you have been paying on time for several years but now have a balance of $35,000 and are in trouble, boy do we have a program for you. Or you might have a smaller $15,000 loan and after a short time need help. The law does not say you have to wait any particular period of time so I guess you could be in default after the first couple of months.
- You can use it to make up no more than six months of monthly delinquencies.
- The loan will be for a maximum term of five years.
- The borrower will pay absolutely no interest for the duration of the loan. Interest can be charged, but it will be subsidized by the Federal government.
- Here's the great part. If you get one of these loans, you don't have to make any payments for the first year.
- There are absolutely no upfront fees allowed. Getting such a loan is 100% free (of course you have to pay principal and interest after the one year moratorium).
- The SBA will decide whether or not collateral is required. In other words, if you have to put liens on your property or residence. My guess is they will lax as to this requirement.
- You can get these loans until September 30, 2010.
- Because this is emergency legislation, within 15 days after signing the bill, the SBA has to come up with regulations.
The real question is whether a private bank will loan under this program. Unfortunately, few will do so because the statute very clearly states that no fees whatsoever can be charged, and how can a bank make any money if they loan under those circumstances. Sure, they might make money in the secondary market, but that is dried up, so they basically are asked to make a loan out of the goodness of their heart. On a other hand, it carries a first ever 100% government guarantee so the bank's know they will be receiving interest and will have no possibility of losing a single dime. Maybe this will work after all.
But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn't even be in default at that point. It would be in the hands of the secondary market investor.
So is this good or bad for small businesses? Frankly, it's good to see that some bailout money is working its way toward small businesses, but most of them would rather have a loan in the first place, as opposed help when in default. Unfortunately, this will have a limited application.
Wouldn't it be better if we simply expanded our small business programs so more businesses could get loans? How about the SBA creating a secondary market for small business loans? I have a novel idea: for the moment forget about defaults, and concentrate on making business loans available to start-ups or existing businesses wanting to expand.
How about having a program that can pay off high interest credit card balances? There is hardly a business out there that has not been financing themselves lately through credit cards, simply because banks are not making loans. It is not unusual for people to have $50,000 plus on their credit cards, just to stay afloat. Talk about saving high interest. You can imagine how much cash flow this would give a small business.
We should applaud Congress for doing their best under short notice to come up with this plan. Sure this is a form of welcome bailout for small businesses, but I believe it misses the mark as to the majority of the 27 million business owners that are simply looking for a loan they can repay, as opposed to a handout.
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
But first let us see if there are any programs out there providing funds to small businesses. Unless a business has a loan, it will not get relief from such a stabilization loan after default. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
There are some news articles that boldly claim the SBA will now provide relief if you have an existing business loan and are having trouble making the payments. This is not a true statement and needs to be clarified. As seen in more detail in this article, this is wrong because it applies to troubled loans made in the future, not existing ones.
Here is how it works. Assume you were one of the lucky few that find a bank to make a SBA loan. You proceed on your merry way but run into tough economic times and find it hard to repay. Remember these are not conventional loans but loans from an SBA licensed lender that are guaranteed for default by the U.S. government through the SBA (depending upon the loan, between 50% and 90%). Under the new stimulus bill, the SBA might come to your rescue. You will be able to get a new loan which will pay-off the existing balance on extremely favorable terms, buying more time to revitalize your business and get back in the saddle. Sound too good to be true? Well, you be the judge. Here are some of the features:
- Does not apply to loans taken out before the stimulus bill. Only for loans after its enactment.
- Does it apply to SBA guaranteed loans or non-SBA conventional loans as well? We don't know for sure. This statute simply says it applies to a "small business concern that meets the eligibility standards and section 7(a) of the Small Business Act" (Section 506 (c) of the new Act). That contains pages and pages of requirements which could apply to both types of loans. Based on some of the preliminary reports from the SBA, it appears it applies to both SBA and non-SBA loans.
- These monies are subject to availability in the funding of Congress. Some think the way we are going with our Federal bailout, we are going be out of money before the economy we are trying to save.
- You don't get these monies unless you are a viable business. Boy, you can drive a truck through that phrase. Our friends at the SBA will determine if you are "viable" (imagine how inferior you will be when you have to tell your friends your business was determined by the Federal government to be "non-viable" and on life support).
- You have to be suffering "immediate financial hardship". So much for holding out making payments because you'd rather use the money for other expansion needs. How many months you have to be delinquent, or how close your foot is to the banana peel of complete business failure, is anyone's guess.
- It is not certain, and commentators disagree, as to whether the Federal government through the SBA will make the loan from taxpayers' dollars or by private SBA licensed banks. In my opinion it is the latter. It carries a 100% SBA guarantee and I would make no sense if the government itself was making the loan.
- The loan cannot exceed $35,000. Presumably the new loan will be "taking out" or refinancing the entire balance on the old one. So if you had a $100,000 loan that you have been paying on time for several years but now have a balance of $35,000 and are in trouble, boy do we have a program for you. Or you might have a smaller $15,000 loan and after a short time need help. The law does not say you have to wait any particular period of time so I guess you could be in default after the first couple of months.
- You can use it to make up no more than six months of monthly delinquencies.
- The loan will be for a maximum term of five years.
- The borrower will pay absolutely no interest for the duration of the loan. Interest can be charged, but it will be subsidized by the Federal government.
- Here's the great part. If you get one of these loans, you don't have to make any payments for the first year.
- There are absolutely no upfront fees allowed. Getting such a loan is 100% free (of course you have to pay principal and interest after the one year moratorium).
- The SBA will decide whether or not collateral is required. In other words, if you have to put liens on your property or residence. My guess is they will lax as to this requirement.
- You can get these loans until September 30, 2010.
- Because this is emergency legislation, within 15 days after signing the bill, the SBA has to come up with regulations.
The real question is whether a private bank will loan under this program. Unfortunately, few will do so because the statute very clearly states that no fees whatsoever can be charged, and how can a bank make any money if they loan under those circumstances. Sure, they might make money in the secondary market, but that is dried up, so they basically are asked to make a loan out of the goodness of their heart. On a other hand, it carries a first ever 100% government guarantee so the bank's know they will be receiving interest and will have no possibility of losing a single dime. Maybe this will work after all.
But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn't even be in default at that point. It would be in the hands of the secondary market investor.
So is this good or bad for small businesses? Frankly, it's good to see that some bailout money is working its way toward small businesses, but most of them would rather have a loan in the first place, as opposed help when in default. Unfortunately, this will have a limited application.
Wouldn't it be better if we simply expanded our small business programs so more businesses could get loans? How about the SBA creating a secondary market for small business loans? I have a novel idea: for the moment forget about defaults, and concentrate on making business loans available to start-ups or existing businesses wanting to expand.
How about having a program that can pay off high interest credit card balances? There is hardly a business out there that has not been financing themselves lately through credit cards, simply because banks are not making loans. It is not unusual for people to have $50,000 plus on their credit cards, just to stay afloat. Talk about saving high interest. You can imagine how much cash flow this would give a small business.
We should applaud Congress for doing their best under short notice to come up with this plan. Sure this is a form of welcome bailout for small businesses, but I believe it misses the mark as to the majority of the 27 million business owners that are simply looking for a loan they can repay, as opposed to a handout.
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Small Business Loan Bailout? Stimulus Bill Pumps 730 Million into SBA to Help Small Businesses
Cope For those small business owners who think they were ignored in the new stimulus bill (American Recovery and Reinvestment Act of 2009), think again. While the debate continues to unravel as to "who gets what and whether it is enough", one thing is certain: more money is coming in the direction of small businesses through the U.S. Small Business Administration (SBA). Remember, this is the agency responsible for the outreach, licensing, and implementation of, you guessed it, money into the pockets of small businesses. This is done through private licensed lenders who have agreed to join the SBA program. In other words, if your local community bank has a commercial loan department, it might very well have a SBA department which makes these loans. They are called SBA loans because the Federal government will reimburse, to a certain percentage, defaulted loans, thereby giving incentive for the private banks to loan more money. Net effect--more loans will be available for small business concerns.
Before we talk about how much more money is available to the SBA under the stimulus package, let's look at the current status of one of the popular SBA loan programs. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
So should we be excited by the stimulus package? Isn't it all too customary in a new spending bill for a government agency to receive more funds? Not at all as to the SBA. During the Bush Administration tenure, they could easily have renamed the agency the ISBA (Ignore Small Business Association). As they were making "sound bite" statements to the press of how they were helping small business, they were arrogantly trying to dismantle it, or when they were in a better mood, just cutting the budget.
The point is we have a new administration that actually likes small businesses. Remember these are additional monies over and above the SBA's current budget. As we all know, budgets are determined in approximately March of each year (assuming Congress has the good graces to agree) to be used for the next year. The SBA has already received their budget. This is whipped cream placed on the top of that small business cake.
And we are not talking about token amounts here. Here is how the additional monies are broken down:
1. 375 million for temporary fee reductions or elimination on SBA loans and increased SBA loan guarantees, up to 90% for some loans. Translation: When a borrower gets a SBA loan they pay a SBA loan guarantee fee which goes to Washington and used as a war chest to pay banks if there has been a default. That guarantee fee, depending upon the loan, is currently between 50% and 85%. There is a possibility that some loan programs can now be increased to a whopping 90% guarantee. If a borrower no longer pays these fees, the money has to come from somewhere, and in this case it is taxpayers' money which is subsidizing those fees.
2. 255 million for a new loan program to help small businesses meet existing debt payments. Translation: You have a loan secured by fixed assets or real estate and want to refinance it, either to lower payments or put more money in your pockets for expansion.
3. 30 million for expanding SBA's Micro Loan Program, with $6 million to help finance new lending and 24 million for technical assistance grants to Micro lenders. Translation: Under the Microloan program, the Federal government loans blocks of money to the Microloan lenders who then reloan it, at higher rates, to the deserving communities and small businesses and usually collateral is required.
4. 20 million for streamlining the SBA lending and oversight process with new technology. Translation: The streamlining process will make it faster and more efficient to process loans and oversight is to monitor SBA licensed lenders--make sure they are acting for the benefit of small businesses and complying with the program guidelines.
5. 15 million for expanding SBA's surety bond guarantee program. Translation: If you are a building contractor and have to take out a performance or payment bond on a project, you need substantial assets to secure the bond. This will help getting your hands on that needed bond and be able to secure the contract.
6. 25 million for staffing as to the new programs.
7. 20 million for the Office of Inspector General. Translation: To inspect and audit the licensed SBA lenders.
Although one could make the argument this new law is "too little too late", we have to give our current administration a chance to do good things with this fresh money. And don't forget the mindset of the SBA lender. Although they are not as wildly quixotic as stock market speculators, their purses open and close based upon the mood of the country. We want them to be as comfortable as possible when we walk toward them for money.
----------------------------------------------------
Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
Before we talk about how much more money is available to the SBA under the stimulus package, let's look at the current status of one of the popular SBA loan programs. There is a loan program out there and SBA lenders are actually making loans currently: the Community Express Loan Program. This gives unsecured small business loans between $5,000 and $50,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program, although Congress has failed to make the program permanent and still has a 10% cap on the number of loans. Enter the Obama stimulus bill. Let us look how it affects this program and small business lending as a whole.
So should we be excited by the stimulus package? Isn't it all too customary in a new spending bill for a government agency to receive more funds? Not at all as to the SBA. During the Bush Administration tenure, they could easily have renamed the agency the ISBA (Ignore Small Business Association). As they were making "sound bite" statements to the press of how they were helping small business, they were arrogantly trying to dismantle it, or when they were in a better mood, just cutting the budget.
The point is we have a new administration that actually likes small businesses. Remember these are additional monies over and above the SBA's current budget. As we all know, budgets are determined in approximately March of each year (assuming Congress has the good graces to agree) to be used for the next year. The SBA has already received their budget. This is whipped cream placed on the top of that small business cake.
And we are not talking about token amounts here. Here is how the additional monies are broken down:
1. 375 million for temporary fee reductions or elimination on SBA loans and increased SBA loan guarantees, up to 90% for some loans. Translation: When a borrower gets a SBA loan they pay a SBA loan guarantee fee which goes to Washington and used as a war chest to pay banks if there has been a default. That guarantee fee, depending upon the loan, is currently between 50% and 85%. There is a possibility that some loan programs can now be increased to a whopping 90% guarantee. If a borrower no longer pays these fees, the money has to come from somewhere, and in this case it is taxpayers' money which is subsidizing those fees.
2. 255 million for a new loan program to help small businesses meet existing debt payments. Translation: You have a loan secured by fixed assets or real estate and want to refinance it, either to lower payments or put more money in your pockets for expansion.
3. 30 million for expanding SBA's Micro Loan Program, with $6 million to help finance new lending and 24 million for technical assistance grants to Micro lenders. Translation: Under the Microloan program, the Federal government loans blocks of money to the Microloan lenders who then reloan it, at higher rates, to the deserving communities and small businesses and usually collateral is required.
4. 20 million for streamlining the SBA lending and oversight process with new technology. Translation: The streamlining process will make it faster and more efficient to process loans and oversight is to monitor SBA licensed lenders--make sure they are acting for the benefit of small businesses and complying with the program guidelines.
5. 15 million for expanding SBA's surety bond guarantee program. Translation: If you are a building contractor and have to take out a performance or payment bond on a project, you need substantial assets to secure the bond. This will help getting your hands on that needed bond and be able to secure the contract.
6. 25 million for staffing as to the new programs.
7. 20 million for the Office of Inspector General. Translation: To inspect and audit the licensed SBA lenders.
Although one could make the argument this new law is "too little too late", we have to give our current administration a chance to do good things with this fresh money. And don't forget the mindset of the SBA lender. Although they are not as wildly quixotic as stock market speculators, their purses open and close based upon the mood of the country. We want them to be as comfortable as possible when we walk toward them for money.
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Sue Malone is a small business advocate, consultant, and the nations #1 provider of unsecured SBA Community Express cash flow loans(start-up and existing). Email:smalone165@aol.com http://www.StrategiesForSmallBusiness.com Phone:(925)899-8449.
jeudi 5 mars 2009
Commercial Loans - Are We All in This Together?
In the Working Capital Journal and elsewhere, there have been many reports so far indicating that only a small number of financial companies appear to be acting as if they truly understand that "We're all in this together". A special concern by many observers is that the largest banks (essentially those receiving federal funds recently to assist with their troubled financial operations) are not acting in this manner at all.
This has resulted in two major problems for commercial borrowers:
(1) The banks receiving bailout funds have failed (so far) to resume a normal lending pattern for commercial finance funding even though the funds have supposedly been provided to do just that. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) To make matters even worse, most of these banks are actually decreasing their commercial real estate loans and commercial loans by cancelling business lines of credit or recalling outstanding loans.
There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts.
As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans.
With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans.
Although the discussion above focused primarily on the questionable lending activities of many larger banks, an equally problematic commercial financing situation is that very few local (and smaller) banks have resumed normal business lending. In many cases this means that a normally reliable and familiar source for working capital loans is no longer a viable business funding option. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans.
In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. As a result, these working capital funding sources are often proving to be more effective than traditional banks of any size in providing reliable commercial financing. In the end, business owners should hopefully find that their business financing situation will improve by choosing lenders which display the appropriate attitude of "We're all in this together".
----------------------------------------------------
Learn how to avoid mistakes for commercial loans and commercial real estate loans - Steve Bush is a working capital loans expert => AEX Business Cash Advances - Commercial Mortgages - The Working Capital Journal - http://working-capital.squarespace.com
This has resulted in two major problems for commercial borrowers:
(1) The banks receiving bailout funds have failed (so far) to resume a normal lending pattern for commercial finance funding even though the funds have supposedly been provided to do just that. These same banks also seem to be unable to report to anyone how they are in fact spending billions of dollars. (2) To make matters even worse, most of these banks are actually decreasing their commercial real estate loans and commercial loans by cancelling business lines of credit or recalling outstanding loans.
There has already been much public backlash in reaction to inappropriate banking bonuses and spending. So far that has primarily taken the form of criticism and questions about how banks are allocating the financial resources largely subsidized by the taxpayers providing bailout funding. As it becomes more obvious that the action of many banks is impeding the recovery from economic chaos, it is likely that most business owners will choose to obtain their business finance funding from a lending source that has helped rather than hindered financial recovery efforts.
As always, business owners cannot typically afford to wait for government and external action to resolve problems like those described above. Given the facts that many banks have exited or reduced commercial lending activities, business owners should attempt to find alternative sources for working capital loans and commercial loans.
With appropriate help from a commercial financing expert, commercial borrowers will be able to identify which commercial lenders have been acting like responsible corporate citizens and business neighbors. It is unfortunately common to find that most bigger banks have eliminated new working capital financing and commercial mortgage loans. Although they are proving to somewhat difficult to identify and locate, there are commercial lenders actively making new commercial loans.
Although the discussion above focused primarily on the questionable lending activities of many larger banks, an equally problematic commercial financing situation is that very few local (and smaller) banks have resumed normal business lending. In many cases this means that a normally reliable and familiar source for working capital loans is no longer a viable business funding option. For the most part, local and regional banks simply do not have sufficient capital for new commercial loans.
In addition to business owners seeking alternative commercial funding sources, many commercial borrowers will now discover new financing choices such as business cash advance programs. Under most circumstances, business cash advances are provided by business lenders other than commercial banks. As a result, these working capital funding sources are often proving to be more effective than traditional banks of any size in providing reliable commercial financing. In the end, business owners should hopefully find that their business financing situation will improve by choosing lenders which display the appropriate attitude of "We're all in this together".
----------------------------------------------------
Learn how to avoid mistakes for commercial loans and commercial real estate loans - Steve Bush is a working capital loans expert => AEX Business Cash Advances - Commercial Mortgages - The Working Capital Journal - http://working-capital.squarespace.com
Business Finance Funding Advice and Commercial Financing Help
The rapidly-changing environment for business finance funding is likely to produce a series of new problems for business owners. There have been some unexpected and disappointing responses by business lenders to recent economic circumstances. The Working Capital Journal is a regularly-updated information resource for commercial borrowers to review in their attempt to keep up with the increasing challenges confronting them in seeking commercial financing. Some of the most important recent findings are noted below.
For many years, the working capital finance industry has operated primarily on a local and regional basis. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. This has happened in a relatively short period of time, and most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts.
Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.
With the current realization that substantial changes are likely in the near future for commercial finance funding throughout the United States, business owners should make an extended effort to understand what is happening and what to do about it. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.
Publicizing actions being taken by business lenders throughout the United States will contribute to at least two goals, both of which are likely to prove helpful to most small business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. Predatory lending practices involving credit cards have been actively reported by numerous business owners and other individuals. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.
As reported by The Working Capital Journal, one of the few bright spots in business finance funding recently has been the continuing effectiveness of business cash advance programs to obtain working capital quickly. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance funding in the midst of recent economic and financial uncertainties, business cash advances are literally saving the day for many small business owners. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. However, if a restaurant accepts credit cards in their business operations, they are likely to be able to obtain needed cash from merchant cash advances and credit card factoring.
----------------------------------------------------
Learn how to avoid mistakes for commercial financing and commercial real estate loans - Steve Bush is a working capital finance expert => AEX Business Finance Funding and Commercial Loans - http://aexcommercialfinancing.com
For many years, the working capital finance industry has operated primarily on a local and regional basis. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. This has happened in a relatively short period of time, and most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts.
Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.
With the current realization that substantial changes are likely in the near future for commercial finance funding throughout the United States, business owners should make an extended effort to understand what is happening and what to do about it. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.
Publicizing actions being taken by business lenders throughout the United States will contribute to at least two goals, both of which are likely to prove helpful to most small business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. Predatory lending practices involving credit cards have been actively reported by numerous business owners and other individuals. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.
As reported by The Working Capital Journal, one of the few bright spots in business finance funding recently has been the continuing effectiveness of business cash advance programs to obtain working capital quickly. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance funding in the midst of recent economic and financial uncertainties, business cash advances are literally saving the day for many small business owners. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. However, if a restaurant accepts credit cards in their business operations, they are likely to be able to obtain needed cash from merchant cash advances and credit card factoring.
----------------------------------------------------
Learn how to avoid mistakes for commercial financing and commercial real estate loans - Steve Bush is a working capital finance expert => AEX Business Finance Funding and Commercial Loans - http://aexcommercialfinancing.com
mardi 3 mars 2009
small business loand and the bottom of the ocean
For most small business owners, the current ineffective process for obtaining small business loans and commercial mortgages has become frustrating and confusing. Normally reliable banks and bankers have suddenly become undependable and non-responsive to the practical needs of commercial borrowers. For most observers, it is remarkable to see how differently the public is suddenly treating the banking industry. To update a Ronald Reagan quote about government solving problems, the current perspective might be "Banks are not the solution to our problem, they ARE the problem."
Most of the negative public perception (so far) is directed at the larger banks which collectively have already absorbed hundreds of billions of dollars in federal bailout payments and loan guarantees. Even bank employees seem to feel this way. When a woman working for one of these banks lost her job in New York recently, she quickly described her relief at not having to tell people that she worked for the bank anymore.
It does appear that bankers have become the new lawyers in terms of public ridicule and anger directed toward them. There was a joke making the rounds a few years ago about lawyers that has been modified to include a reference to bankers. What do you call 10 lawyers on the bottom of the ocean? (A good start.) Substituting "bankers" for "lawyers" will readily provide a contemporary cultural reference about how far bankers have fallen in the public eye.
The many good bankers who have done absolutely nothing to deserve this ridicule have their work cut out for them to restore a tarnished image. One effective strategy for improving their public standing would be for the good bankers to be candid in their public criticism of the bad bankers. It seems increasingly clear that some banks and bankers have acted irresponsibly for many years. One of the best sources to judge and correct this misbehavior is likely to be other bankers. It will be refreshing to see the truly innocent bystanders in the banking community speak out publicly about those who caused the economy to implode in the first place.
Not to be overlooked in all of this is the practical need for commercial borrowers to find reliable sources for small business loans, working capital financing and commercial mortgages. This will be more difficult than it might initially appear for several reasons.
First, many small business owners have probably been accustomed to dealing with the same bank and banker for many years. There are issues of friendship and loyalty that could cause some businesses to delay longer than they should in replacing their bank.
Second, even after a commercial borrower decides that a change is necessary, it will not be an easy matter to find an effective source for business finance services. In most cases, it will be prudent for business owners to look beyond their local area in the search for better providers of commercial finance funding.
Third, it will require time for business owners to adjust to the fact that some of the best sources for traditional working capital financing are not banks at all. For commercial financing services such as business cash advance programs, banks have played a smaller and smaller role even before the recent economic volatility.
----------------------------------------------------
Learn how to avoid mistakes for commercial loans and commercial real estate loans - Steve Bush is a working capital finance expert => AEX Commercial Finance Funding and Commercial Mortgages - The Working Capital Journal - http://working-capital.squarespace.com
Most of the negative public perception (so far) is directed at the larger banks which collectively have already absorbed hundreds of billions of dollars in federal bailout payments and loan guarantees. Even bank employees seem to feel this way. When a woman working for one of these banks lost her job in New York recently, she quickly described her relief at not having to tell people that she worked for the bank anymore.
It does appear that bankers have become the new lawyers in terms of public ridicule and anger directed toward them. There was a joke making the rounds a few years ago about lawyers that has been modified to include a reference to bankers. What do you call 10 lawyers on the bottom of the ocean? (A good start.) Substituting "bankers" for "lawyers" will readily provide a contemporary cultural reference about how far bankers have fallen in the public eye.
The many good bankers who have done absolutely nothing to deserve this ridicule have their work cut out for them to restore a tarnished image. One effective strategy for improving their public standing would be for the good bankers to be candid in their public criticism of the bad bankers. It seems increasingly clear that some banks and bankers have acted irresponsibly for many years. One of the best sources to judge and correct this misbehavior is likely to be other bankers. It will be refreshing to see the truly innocent bystanders in the banking community speak out publicly about those who caused the economy to implode in the first place.
Not to be overlooked in all of this is the practical need for commercial borrowers to find reliable sources for small business loans, working capital financing and commercial mortgages. This will be more difficult than it might initially appear for several reasons.
First, many small business owners have probably been accustomed to dealing with the same bank and banker for many years. There are issues of friendship and loyalty that could cause some businesses to delay longer than they should in replacing their bank.
Second, even after a commercial borrower decides that a change is necessary, it will not be an easy matter to find an effective source for business finance services. In most cases, it will be prudent for business owners to look beyond their local area in the search for better providers of commercial finance funding.
Third, it will require time for business owners to adjust to the fact that some of the best sources for traditional working capital financing are not banks at all. For commercial financing services such as business cash advance programs, banks have played a smaller and smaller role even before the recent economic volatility.
----------------------------------------------------
Learn how to avoid mistakes for commercial loans and commercial real estate loans - Steve Bush is a working capital finance expert => AEX Commercial Finance Funding and Commercial Mortgages - The Working Capital Journal - http://working-capital.squarespace.com
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