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Monthly Archives: March 2016

How to Reduce Commercial Bank Financing and Small Business Debt


A growing number of small businesses are seeking advice about how to reduce debt and commercial bank financing. Because of serious deficiencies with commercial banking services, a logical and prudent approach for borrowers is to investigate the viable options for debt management and reducing their dependency on commercial debt from bank financing.

In most cases, small business owners are not openly seeking a commercial lending struggle with their bank. The increasing inability of banks and other business lenders to provide adequate amounts of business loans and working capital financing has produced this practical outcome. It seems likely that most businesses have probably viewed their business banking relationships on a loyal and friendly basis over the years. Massive changes are literally forcing small businesses to examine and revise their business financing strategies, much as seen with many other business practices.

Evaluating whether there are realistic alternatives to replace their current bank financing and commercial debt would be one possible outcome for borrowers. Refinancing debt with a new commercial lending source would be a normal and practical result. For one example, exploring business financing options to obtain working capital financing elsewhere would be smart for a business with a commercial line of credit that is about to be eliminated or reduced (as is now happening on a widespread basis).

It will be wise to explore commercial finance alternatives even in situations where owners are not being forced to acquire a new source for their commercial loans immediately. Very little notice has been provided to impacted commercial borrowers in most recent examples of banks which have revoked existing commercial loans.

Small business owners analyzing whether it is feasible to permanently reduce commercial debt and bank financing is another effective business financing option. With this approach, commercial borrowers would focus on reducing their overall debt rather than merely finding a new home for their business loans. This strategy permanently decreases interest expenses when executed successfully. It will probably also improve credit ratings for the business and its owners, and this can improve interest rates on whatever amount of business financing might still be needed.

The strategy of permanently reducing business debt is one which is likely to grow in popularity for commercial borrowers. There is a noticeable trend among businesses as well as individuals to eliminate the services of companies which keep mistreating their customers. A casual review of any number of publications reveals that this kind of mistreatment is rampant among banks lending to small businesses. Since this disturbing trend is especially evident among larger banks, one small business financing option that deserves to be thoroughly evaluated is whether it is feasible to simply find a better and friendlier (and more effective) commercial lender. To the extent that many businesses find that they still need some bank financing, certainly it seems that a worthy goal would be ensure that they find a good (effective) bank to replace a bad (ineffective) bank.

[ad_2] Source by Stephen Bush

How Rapid Change Affects Risk Management in Business


Today’s business world is evolving faster than ever before. With increases in technology and the ability of the internet to bring people from all over the world closer and closer together, today’s businesses have been forced to not only adapt, but also become more efficient, receptive, and innovative than has ever been called for. Business on the internet has certainly posed a lot of new legal questions that remain unanswered, and security threats as well as other risks for both consumers and business are a constant force.

While many different forms of business insurance exist to protect against various forms of risk, advance of technology and the rapid evolution of business today leaves behind some unanswered questions about the risks posed by new forms of business online and on the global level. Pure risk in business was often much simpler: you protected yourself against fire, accident, or theft. However, with more and more business being conducted on the internet today and transactions being done electronically, new threats have emerged that concern security, theft of data and financial information as well as personal information of customers and employees. Also, with more business being conducted on the global level, fluctuations in currency and the losses associated with it are often difficult to calculate.

Terrorism is also an increasing concern for today’s businesses, and some are unsure of whether loss associated with these kinds of acts should be insured against. In addition, increased scientific research and awareness of environmental devastation has some wondering how global warming might pose a risk to some businesses in the future. Recent epidemics such as bird flu and swine flu have also prompted debate on the risk that a worldwide epidemic would pose to businesses as well. War and social unrest in other countries is also a concern that can affect businesses that are now operating on a global level.

As society evolves and advances, new risks continue to enter the picture which can affect businesses and individuals at any level. With today’s technology, business and society are evolving at a rate that has been unmatched in centuries before, meaning that new risks enter the picture more rapidly as well and more and more questions are raised for businesses, business leaders, individuals, and insurance companies that provide protection from loss for these types of organizations. While some remain skeptical and feel that it is unlikely that businesses or individuals will ever really need protection from loss against such things as terrorism or worldwide epidemics, more recent events continue to remind us that anything is possible, and the most efficient businesses of today need to be those that are prepared for just about anything.

[ad_2] Source by Christopher D. West

Why You Need Management Training


Good leadership and management skills are essential if a business or enterprise is to thrive and be successful. Even for those with natural management abilities, they need to developed and honed, especially in relation to the kind of industry and enterprise you are involved in. And the best way to develop those skills is through management training.

Management training is also essential for those who been promoted from within a particular company. While they may be technically excellent, they may not have the natural leadership and management skills to inspire others and drive a project forward. For these kind of people some kind of additional training is most certainly recommended.

A good training course will give you invaluable skills, such as time management. The ability to manage your time effectively will enable you to avoid working excessive hours – which many managers are prone to do – and carry out the maximum amount of productive work in the minimum amount of time. And, it not only allows you do the maximum amount of work during the day, but also teaches you to how delegate to other members of your team. It also makes your team more effective and gives you time to help them when necessary.

An important part of any management training course is conflict resolution. The training will allow you to identify and help resolve any conflicts before they cause problems within your team or department.

Staff development and retention is part and parcel of the duties of any competent manager. By developing your understanding of your staff you will be able to identify what kind of training your team needs themselves while offering the incentives to retain key members.

Also inter-personal communication with staff is key to them being effective and producing the best for the company. By developing this skill through management training you will ensure both contented and productive team members.

Technology is playing an increasingly important role in the running of businesses and enterprises. As a leader it is important that you are both competent and up to date with these skills which can be learned and developed through training.

Management and leadership is a crucial art, especially in the business world of today. By undergoing proper training, you will develop the necessary acumen foresight and the ability to lead, encourage staff in your particular industry, In short, proper training is essential.

[ad_2] Source by Craig Ellyard

Government Money to Reduce Credit Card Debt


The overall American economy is made up of many parts, but when individuals and families are on steady ground, it contributes to the good of the overall economy. Find out how grants work and how these funding sources may help you to get out of the debt you are in.

Finding a Grant

The first step, and probably the trickiest part for most people, is knowing where and how to find a government grant to pay off debt. Start by contacting your county government, local associations and local organizations to find out what grants are available and for what purposes. The U.S. Department of Health and Human Services helps manage, a site providing information on a wide variety of federal government grants (see Resources).

Applying for the Grant

Grant applications can be long, labor intensive and tedious. When you obtain information on a grant you are interested in applying for, be sure to read the requirements carefully to make sure that you are eligible to apply. Once you pass the eligibility test, follow the instructions for completing the grant application very carefully and line by line. Grant application review committees tend to be sticklers when it comes to awarding grant money, which means it’s imperative that you complete the application completely and correctly. It’s also important to know the deadline of the grant application. Depending on the deadline, you may have a limited amount of time to complete what can be an arduous process.

Types of Grants

While most grants are not earmarked specifically to help you get out of debt, you may be able to find grants based on a personal need, business need, ethnicity, religion and more. You can also look to local organizations and associations. These organizations receive money from the federal and local governments to fund specific projects or support specific initiatives.

Debt Consolidation

While you probably won’t locate a grant with the title “Grant for Debt Consolidation,” you may be able to locate available government money based on how you got into credit debt in the first place. For example, if you funded the opening of an art gallery and backed a local artist and this is what put you in credit card debt, then the local art council may offer grants for local art projects. While some grants require that you apply for the grant before funding the project, other grants will allow you to pay in reverse order-you pay first and pay off the debt with grant money later. You’ll only be able to pay off expenses directly related to the project and you will have to provide evidence of what you spent and what the outcome of the spending was, but it is a way to use grant money to consolidate existing debt.


Register on websites such as to find and apply for possible grants. You can signup to receive email announcements when new grants are added to the database. this helps to ensure you meet the grant application deadlines.

[ad_2] Source by Kristie Lorette McCauley

Choosing the Best Legal Structure for Your New Business


Determining your company’s legal structure is one of the first decisions you will face as an entrepreneur. If you do not have a business background, it might surprise you to know you have several options, each of which has different tax and capital raising consequences. Educating yourself and discussing your options with a lawyer are important parts of your decision making process.

Sole Proprietorships

Sole Proprietorships are the simplest, least complicated, cheapest structures to form. A Sole Proprietorship is a business that is both unincorporated and is owned and operated by only one person (that would be you!). Since your business is not a distinct legal entity, you do not file annual business taxes. Your business taxes are simply incorporated into your annual personal income tax filings. The tax rate paid on sole proprietorship earnings is often lower than that on earnings of a corporation. While this legal structure may suit independent consultants, it is not appropriate for those starting a business with one or more colleagues, or for those seeking funding from outside investors. Sole Proprietors also face unlimited liability for any debts accumulated during the life of the business.


Partnerships are unincorporated businesses operated by two or more individuals. Like Sole Proprietorships, Partnerships are not distinct legal entities. Profits and losses from a partnership are incorporated into each partner’s individual personal income taxes and are allocated in accordance with the “Articles of Partnership,” a legal contract between the parties involved. In addition to the division of profits and losses, the Articles of Partnership also determine the name of the Partnership, the date the Partnership was formed, the duration of the Partnership, and the provisions governing dispute resolution between partners. There are several drawbacks to this structure. First, Partnerships are not suited to raising investment capital. Second, partners in a Partnership face unlimited liability for the debts of the Partnership. Furthermore, if a single partner is unable to meet an obligation under the Articles of Partnership, then the remaining partners are liable for the outstanding obligation. Finally, the existence of a Partnership is limited to the physical lives of the parties responsible for the entity’s formation.


Unlike Sole Proprietorships and Partnerships, Corporations are distinct legal entities separate from their owners (shareholders) and employees. There are two types of corporations: (1) an S-Class Corporation, and (2) a C-Class Corporation. As a separate entity, a Corporation’s liabilities are not transferable to shareholders, and as a result of its independence, a Corporation can exist beyond the years of its founders so long as it remains solvent. The combination of limited liability and relative ease of transferring ownership interests make Corporations the most likely organizations to obtain outside investment. Most venture funded startup companies for example, are formed as C-Class Corporations. A major drawback of Corporations comes in the treatment of taxes. Revenues earned through this structure are subject to “double-taxation.” Employees & Shareholders are responsible for personal income taxes and taxes on dividends respectively, and the Corporation is responsible for any corporate profits.

Which of these structures should you choose?

There is no obvious answer. The type of structure you decide upon will reflect the needs of your new business. If you are starting out as an independent consultant, you might want to stick with the Sole Proprietor model. If you will be seeking venture capital, then you should structure your business as a Corporation. No matter what you do, be sure to assess the needs of your business, understand the implications of each organization type, and consult a lawyer.

[ad_2] Source by Arpan Jhaveri