Debt Management Solution

MORAL ARMOR'S Economic Warning for Americans

2008-09-23T14:23:00.000-07:00

by: Ronald E Springer
Copyright 2005 Ronald E Springer

For years wefve suffered under recession, prompting us to ask, When will it end? My answer is, gItfs only the beginning.h

Historically, recessions are the result of high interest rates, pushed up as the result of loose money policies. Recovery comes when citizens begin to spend more wisely, save money and pay off their debts, but not this time. Never before have credit policies been so loose for so long, and there has been no decrease in consumer debt. Itfs still on the rise, but Americans are NOT fundamentally to blame; immoral monetary policy is.

Banks used to consider a safe loan applicant to have a 36% or less Debt to Income Ratio (debt divided by gross income). This percentage is a time-proven figure indicating the financial health of an individual. Now, during the worst economy in twenty years and with no signs of recovery, our banks gladly loan to applicants with a 56% Debt to Income. What has changed? Are banks suddenly more generous? I donft think so. One good question to ask is, Why are banks willing to accept the additional risk? But the real question to ask is, Where is this money coming from?

Not one in a thousand Americans knows the true nature of our banking system, so they have no idea that what happened in 1929 is about to happen again. Nor do they know that it was done deliberately then, and is being done deliberately now.

We have in this country one of the most corrupt institutions known to Man, and I refer to the Federal Reserve. Since itfs inception in 1913, every dollar created has interest being paid on it as if it were borrowed. This debt cannot be extinguished without destroying the currency itself, and has spawned a nightmare of debt that presently amounts to over $360 Billion in interest paid per year, accounting for half the personal income tax of the nation. Due to this, America is forced to create $7 Billion daily to cover the $1 Billion it pays in interest daily due to the Federal Reserve System. This is where the public comes in.

Federal Reserve bankers have to find a way to spend $6 Billion every day while masking the inflation it causes. Throughout the nineties it was done through real estate and the stock market. Now it is almost exclusively being put into real estate. How on Earth could so many mortgage companies be offering interest only, no money down, multi-hundred thousand or million dollar loans with high applicant debt ratios?

Here is a hypothetical example of whatfs going to happen: Your mortgage banker tells you that with a 56% debt ratio, you can afford a $300,000 home, no money down. You secure the loan at 4%, costing $1432 per month. A few years later, youfre thrown out of work for three months. Back payments amount to $4296 plus late fees, legal fees, etc., and another $5k on cars, credit cards and everything else. Unable to catch up, youfll try to refinance, but interest rates have moved up to 7%. A $310,000 loan now costs $2062 per month?more than you can afford, but banks will have tightened lending policies back to 36% and you no longer qualify for the home you own anyway. Accounting for all other debt, you now qualify for a shocking $360 per month. You are trapped, and the new bankruptcy laws they pushed for will never let you walk away.

You owned this home in a perfect numbers scenario, but any complications?unemployment, salary reduction, interest rate increase, debt ratio change, bruised credit rating, depressed home values--and youfre cooked. One mishap and every financial measure works against you. Your financial angel has suddenly become your greatest enemy. Welcome to the Federal Reserve System and their freshly engineered worldwide depression.

If you were to approach the housing market fresh, you would find that you only qualify for a $55k house now, along with the market of buyers you were hoping to unload your balloon-house on. The bank forecloses, auctions it off and youfre personally responsible for the difference, which could be massive. Bankruptcy is right around the corner, and deplorably, you are the only one who will be held accountable. You will then be a debt slave as the Federal Reserve intends, and game over.

My advice is to get as financially stable as you can. Mathematically, our situation is much worse than that of the Great Depression. No matter how generous these bankers appear, pare down monthly outlays to 36% D/I or less. Set aside three to six months of mortgage payments in case you become unemployed. Make sure you can ride out the storm.

We are coming to a point in American society to where itfs either them or us, and mass awareness is the key to our survival. Most believe the Federal Reserve is a part of the government, but itfs just a name. The Fed is a private corporation set up for private gain, with a dark history of stock market crashes, financial panics, political manipulation and ultimately, mass poverty and hunger riots. Our struggle is not new: currency control has switched from public to private hands EIGHT times since our countryfs inception, and needs to be reclaimed by the people, one last time.

Donft think you can play helpless and expect our political leaders to protect you from financial calamity; they never have. You must become Morally Armed on your own. Donft be coaxed into believing the system is optimized for the good of all. The Federal Reserve System is not an equitable institution, and it was never intended to be. They believe if they have us strung out on debt, we are no threat to them. Let us prove otherwise.

Currency reform is the most important issue facing Americans today. How it plays out will determine whether you and your children eat or not, whether you have a place to live or even a future to look forward to. The major media will ridicule anyone speaking against the Fed, so to validate historyfs greatest moral dilemma for yourself, just google gJackson bank veto.h

America must abolish the Federal Reserve System to regain control over the economy and our government. For a concise history of world monetary policy and how it shapes world events, see Moral Armor. Then share this knowledge with your friends. Email this article to everyone in your address book and stay tuned for further developments. Wefll change the system together and bring a brighter dawn to Mankind.

About the author:
Ronald E. Springer is the Author/Philosopher of Moral Armor, the world's first fully-integrated moral philosophy based on the nature of Man. Featured on The Mitch Albom Show, NBC and FOX News radio affiliates, Mr. Springer is available for interviews, speaking engagements, philosophy workshops and seminars. Please contact RonaldESpringer@MoralArmor.com or visit www.MoralArmor.comfor details.

Legal Debt Collection For Local Businesses

2008-09-23T14:22:00.000-07:00

by: Joel Walsh
If a customer owes your local business money, it's hard not to feel angry, like you want to do anything possible to get your money back. But the days of going all out to collect on a debt over.

The Fair Debt Collection Practices Act, designed to protect consumers from harassment or intimidation, sets firm limits on what you can do to collect a debt from a consumer. The federal debt collections law even prohibits practices that were once standard, and that you might not consider harassment at all.

Besides, as a local business, you have an even more powerful reason to be especially careful about legal debt collection issues. You have something much more valuable at stake than a lawsuit: your business's reputation in the community.

Legal Debt Collection Best Practices

There are plenty of articles on the web that lay out in plain English what the Fair Debt Collections Practices Act says you can and cannot do. For instance, this article: [link to small business debt collection law cheat sheet] Just to give you some idea of the law's requirements, here are some of the biggest:

1. No telling any third party about the debt (except collection bureaus, collection agencies, or the debtor's attorney).

2. No calling on the telephone 9 pm - 8 am, or calling repeatedly in a way that is annoying.

3. No postcards or envelopes that mention the debt.

4. No threats to take actions you cannot or will not really take, such as seizing property, in the case of an unsecured debt.

5. No misrepresenting yourself (e.g., "Hi! This is the Publisher's Clearinghouse Sweepstakes. May I speak to John?").

6. No paying down the debt with payments the customer has directed be applied to other debts

Tips and Tricks for Legal Debt Collections

With all these limits on what you can do to collect a debt, what can you do legally?

1. Speak with the debtor personally on the telephone; most likely he or she wants to pay but is in over his or her head. Begin by asking what circumstance has kept him or her from paying. Offer to set up a repayment plan.

2. You should both send letters and make telephone calls. Many people will only respond to one or the other.

3. Document every part of the collections process. Take notes for each call and keep a copy of each letter. If the debt does ever go to court, you will have proof you acted legally.

4. Look into reporting the debt to credit bureaus. If you can, and are willing to do it, you can tell the debtor that not paying will impact his credit rating.

5. Best tip of all: hand over the job to a dedicated collection agency. Small business debt collection services start at as little as $20 per debt.

The fight to get paid is a fight no business should have to involve itself in. Unfortunately, debt collections are a part of business. Just make sure that for your local business debt collection law is followed to the letter, or legal proceedings may become part of your business, too.

About the author:
Joel Walsh has written more tips on debt collection law: http://www.debt-collection-laws.com/?debt collection law [Web publication requirement: create live link for the URL/web address using "debt collection law" as visible link text/anchor text; EXCEPT if redistributing (article bank, aggregator, or clearinghouse), anchor text optional.]

Is Incorporating Your Small Business Best For You?

2008-09-23T14:20:00.000-07:00

by: Jeff Schuman
There comes a point in time when every small business person
contemplates on whether to incorporate their business or not. A
lot of times small businesses start out sole proprietorships,
and then become incorporated as the business expands and
develops. Small business incorporating can be a difficult
decision, and with this article youfll gain a little bit of
knowledge on the advantages and disadvantages.

There are many advantages to incorporating your small business,
but limited liability is one of the biggest advantages. When
you have sole proprietorship to the company all the liability of
the company is on the owner. When incorporating the business,
your only liability is to however much you invest in the company.

With sole proprietorship, all of your personal belongings, such
as car and home, can be turned over to help pay the debt of the
business. As a shareholder in the business, you have no
responsibility whatsoever for the debts of the business, that is
of course unless you give a guarantee.

Another advantage to incorporating a small business is the
ability to raise money so much easier. With the ability to
raise money much easier, this increases the odds of the
corporation growing and expanding. Yes, youfre saying any sole
proprietorship can borrow money and incur debt like any
corporation. However, with a corporation you can sell shares
and raise equity capital, which is a big advantage in that you
generally donft have to repay equity capital and it has no
interest.

There are many tax advantages with becoming a corporation that
you can take a look at as well. Some of these advantages
include income splitting, potential tax deferral and more.
Along with the reasons above, a corporation can have an
unlimited life. The life of a corporation is not dependent on
particular individuals, but the company as a whole. With this,
the company has the opportunity of lasting forever just as long
merges with another company or goes bankrupt.

Now that Ifve buttered up the idea of incorporating your small
business, letfs take a look at some of the possible negatives.

As you incorporate your small business, there now will be two
tax returns to file each year, one for your personal income and
one for the corporation. This may not be a huge deal, but
unlike a sole proprietorship a corporation cannot deduct its
losses from the personal income of the owner. Plus, having
another tax return is the last thing another business owner
wants to deal with.

As a corporation is much larger and more complex then a small
business, therefore the cost to create one is much higher. Just
to set up the corporation will cost a lot more, then you have to
tack on the increased maintenance fees, accounting fees, and
more.

As with everything else, a larger business means more paperwork
that must be taken care of. Corporations must keep a minute
book, which contains the corporate bylaws and minutes from
corporate meetings. Reports and tax returns must be completed
neatly and in a timely fashion. All of the business bank
accounts and records have to be kept separate from personal
accounts and assets. That may sound like a load, but that is
just the start of the increased paperwork that comes with the
territory of incorporating your small business.

While there are many advantages and disadvantages to
incorporating your small business, the decision ultimately goes
to you. It is a decision that could make or break your
business, therefore much more research is recommended. However,
small business incorporating should be a thing that suites you
and others associated with you best.

About the author:
Small business grants and small business resources to help you start and run your own small business. Small business training, information, articles, loans, and more.
http://www.sites-plus.com

Invoice Factoring ? What Is It And What Are The Benefits?

2008-09-23T14:19:00.000-07:00

by: Alan Jason Smith
Are you a business owner who wants to increase monthly cash flow, working capitol, and improve your credit rating? Then invoice factoring could be right for you.

Invoice factoring is the process by which businesses sell their invoices to a third party, called a gfactor.h The factor buys the invoices for about 3 to 5 percent less than the invoice is actually worth. If your business produces any type of invoice, then your business can take advantage of invoice factoring.

Once the factor purchases the invoice, then the factor owns it, and collects the debt from your client. As the business owner, you get to decide which invoices to factor, based on your customersf credit and payment history with your business.

Factoring your invoices means your cash flow does not suffer while you wait for your customers to pay. The factor buys the customersf debt, improving your working capitol and the credit rating of your business.

It works like this: You send an invoice to your customer. Then you inform your invoice factoring company that you have sent the invoice, and in what amount. Usually, that can be done by e-mail, so itfs quick and easy.

The second step is the factor confirms the invoice with your client. Usually, this is done in such a way that the customer or client does not know that you have sold their invoice to a third party. The factor will identify itself as a billing department or company, rather than an invoice factor, and will simply call or send a letter to confirm the invoice.

Some invoice factoring companies are willing to keep the factoring completely invisible to your customers. And after you develop a history and good relationship with the factor, they will usually stop confirming every single invoice.

Once the factor has confirmed the invoice, they pay your business a percentage of the total amount of the invoice, usually around 70 to 85 percent. This is called the gadvance rate,h and it is one of the primary points to look at when selecting a factoring company. When the factor collects the invoice from your customer, you will get the rest of the money you are owed.

Factoring benefits businesses that have poor credit history, no credit history, or limited hard assets. Factoring also helps businesses when they are just starting out, because it can often take time to build up steady cash flow.

Additionally, invoice factoring allows you to increase working capitol without taking liens against your other collateral, so there is little risk to you.

As a business owner you know how frustrating it is when waiting for your customers to pay. Even if your invoices are not past due at all, it can still take weeks to collect the funds you need to put back into your business immediately. Invoice factoring can help your business grow and reduce your own stress level.

Instant Unsecured Cash Loans - Tips

2008-09-23T14:18:00.000-07:00

by: Steve
Instant Unsecured
Cash Loans - Tips
Unsecured cash loans are taken when the borrower does not have a property to secure the debt. These loans usually have higher interest rates and are considered high-risk loans by lenders. Today with various funding organizations, banks and financial institutions entering a competitive business scenario, obtaining unsecured cash loans has become an easy and quick process.
Here are a few tips to help you obtain a quick unsecured cash loan:

Purpose of loan
You may opt for these loans for any purpose like paying off existing debt, purchases like a new car, weddings, holiday expenses etc. The amount you plan to borrow is also an important factor and so is the time in which you plan to return the amount. This would help determine the interest rates.

Searching for a loan
The next step involves searching various organizations that offer such loans. Searching on the Internet may be a good option because here the process is much faster. Some lenders will revert to you the very same day and you will know whether your application has been approved or not. Other lenders may even promise to make an instant decision in a matter of seconds.

Applying for a loan
You may need to fill an online enquiry form, specifying details like the purpose of the loan, amount required, credit history and other details. Applying for this loan is very simple. Also as you are not securing the loan against an asset, you need not fill out long complicated forms. Once your application has been approved, money is usually transferred to your account quickly and efficiently, often in a matter of 24 hours.

Issues to keep in mind
Today there are various banks and financial institutions that offer unsecured cash loans. But while opting for a fast unsecured cash loan keep in mind not to compromise on repayment terms, penalties and interest rates. Also find out whether the interest is charged daily and if capital repayments will bring down the amount of interest and period of loan. If you feel that you may face any financial difficulty and may not be able to repay the loan on time contact your lender immediately. This will protect you from court proceedings and the lender may even agree to freeze your payments for some time.

We at www.anycredithistory.com are here just to help you with an unsecured cash loan whatever your credit record is. Our processing is quick and simple and the money is transferred to your account in the shortest possible time.

About the author:
Steve is a well known and renowned author. In past he had produced books , articles which are rich in issues which are popular among Loans . He had written many books, articles related to finance, popular issues which are much appreciated by people around the country.

Incorporating Your Business Using Three Simple Steps

2008-09-23T14:17:00.000-07:00

by: Abe Cherian
You may publish this article in your ezine, newsletter on
your web site as long as the byline is included and the
article is included in it's entirety. I also ask that you
activate any html links found in the article and in the
byline. Please send a courtesy link or email where you
publish to: support@multiplestreammktg.com

-------------------------------

Incorporating Your Business Using Three Simple Steps
By Abe Cherian
Copyright ? 2005

Incorporating your business today is much easier than it
was 10 or even 20 years ago. Here's three steps; securing
your corporate name, filing the necessary documentation and
paying the necessary filing fees. You can complete these steps
yourself, use an incorporation service provider or have an
attorney complete them for you.

When incorporating, you must first ensure that your
corporate name is available in the state in which you want
to incorporate. Your corporate name must not be deceptively
similar to a name that is already in use in that state. A
name check must be performed in the state of incorporation.

You must also prepare and file all the necessary
documentation. the Articles of Incorporation, with the
appropriate state agency in the state of incorporation.

Additionally, you must pay all state filing fees, initial
franchise taxes and any other initial fees. Each state
charges a filing fee to form your corporation in that
state. These state filing fees vary greatly by state. They
range from under $100 to over $400.

Do It Yourself. Use An Incorporation Service Provider Or
Use An Attorney. If you decide to incorporate on your own,
you need to be well versed in the laws of the state of
incorporation. You will need to prepare and file your own
documentation and undertake all communications with the
necessary state agencies.

If you use an incorporation service company, you submit the
necessary information, and the company checks your name,
prepares and files your documents and pays the initial
state filing fees on your behalf.

Incorporation service companies charge a nominal service
fee on top of the state filing fees, and you can submit all
the necessary information to them over the Internet.
Attorneys will also undertake all of the necessary steps
for you. If you use an attorney to incorporate, you can
expect to pay their hourly fee on top of the state filing
fees.

How long this will take depends on the time the state
requires to approve and return your completed Articles of
Incorporation varies by state. On average, it takes 4-6
weeks to become incorporated.

Most states will allow you to expedite the filing process
for an additional charge. Expediting filings typically take
about 1 week. Those charges also vary by state.

After your corporation is formed, an organizational
meeting of directors must be held. At this meeting bylaws
are adopted, stock is issued and the incorporation process
is completed. Minutes of the organizational meeting should
be kept in a corporate record book.

Incorporation is an important step in the life of a
business, but unfortunately the true value of incorporating
a business is often not seen until the business faces a
negative situation such as a law suit or bankruptcy. A
primary advantage of incorporation is the limited liability
the corporate entity affords its shareholders "The Owners".

Typically, shareholders are not liable for the debts and
obligations of the corporation. Creditors will not come
knocking at the door of a shareholder to pay debts of the
corporation. In a partnership or sole proprietorship the
owner's personal assets may be used to pay debts of the
business.

Other Advantages include

¡è A corporation's life is not dependent upon its members.
A corporation possesses the feature of unlimited life. If
an owner dies or wishes to sell their interest the
corporation will continue to exist and do business.

¡è Retirement funds and qualified retirement plans "like
401k" may be set up more easily with a corporation.

¡è Ownership of a corporation is easily transferable.

¡è Capital can be raised more easily through the sale of
stock.

¡è A corporation possesses centralized management.

Corporations are not without disadvantages. The primary
disadvantage to a corporation is double taxation. Profits
of a corporation are taxed twice when the profits are
distributed to shareholders as dividends. They are taxed
first as income to the corporation, then as income to the
shareholder.

All reasonable business expenses such as salaries are
deductions against corporate income and can minimize the
double tax. Further, the double tax can be eliminated by
making the S corporation election with the Internal Revenue
Service.

Other Disadvantages Include

¡è There is a certain level of complexity and expense of
forming a corporation.

¡è Corporations have extensive record keeping requirements.

¡è Operating a corporation across state lines requires the
corporation to qualify to do business in the other state.

Both the Limited Liability Company "LLC" and "S"
corporation also provide the limited liability to the
owners/shareholders of the company, without the potential
disadvantage of double taxation. While like corporations
these two entities also have advantages and disadvantages,
it is a good idea to learn about all three when deciding
what form your business should take.

Improving Your Financial Situation With Investments and Business Ideas

2008-09-23T14:16:00.000-07:00

by: David Arnold Livingston
With financial information and virtual business transactions just a click away, people are finding themselves more financially savvy and in the know on how to fatten up their financial portfolios.

While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.

Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really donft have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.

Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.

Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.

Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!

What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.

It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You donft even have to meet face to face. You just have to learn to communicate through emails and mobile phones.

This is not intended to give financial advice and professional advice is suggested before investing.

About the author:
David Arnold Livingston is an entrepreneur with many years of successful business experience. For financing options, he recommends you visit: http://www.financingltd.com/

How to Write a Credit Policy for your Business

2008-09-23T14:14:00.000-07:00

by: Michelle Dunn
The book, “Become the Squeaky Wheel,” by New Hampshire author Michelle Dunn, says the different ways people use and extend credit makes or breaks your credit policy and bottom line, which could result in less or more sales and money for your business.

“Business owners all have different types of businesses but can all extend credit,” explains Michelle Dunn. “So it should only make sense that no two credit polices can be the same.”

Dunn explains that one major difference is if you have a service or retail business. Your credit policy should use multiple facets to cater to prospective customers but also protect the business owner.

“You are limited in what you can and can’t ask a prospective customer in order to extend them credit,” says Dunn. “Business owners need to be aware of what these questions are and what the laws are before they create their credit policy.” Your credit policy helps to filter customers so you don’t have to spend your time chasing your money. Your best policy will be short, easy and to the point, it will avoid long-winded statements and a lot of legal or big words. Always create your forms with the reader in mind, the easier and clearer the better.

About the author:
Michelle Dunn has over 17 years experience in credit and debt collection. She is the founder of Never Dunn Publishing, LLC, is a writer, consultant and the Editorial Advisor for Eli Financial. She has written 5 books in her Collecting Money Series. Visit www.michelledunn.comor www.credit-and-collections.com

How to offer 30 day terms the right way.

2008-09-23T14:12:00.000-07:00

by: Marco Terry
What is trade credit?

One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by credit card at the time of sale. Because of this, most consumer businesses never have to worry about extending credit to a customer and can run their operations on an "all cash" basis. This allows them to focus on their core competencies because they don't have to carry slow paying Accounts Receivables and go through the expense of collecting on such accounts.

However, commercial transactions are different. Most clients ask their suppliers to deliver services immediately and then to invoice them for the work, payable 30 days later (also known as offering net-30). In effect, clients ask their suppliers provide them with "trade credit" for 30 days. Although suppliers don't like offering trade credit, most have accepted it as an industry standard and have learned how to operate and live with it. In fact, some suppliers have even mastered how to offer trade credit and use it to better position their companies with leading clients. Large creditworthy customers, such as the government or large companies, will usually demand trade credit as part of their contract negotiations. Some examples of entities that ask for 30 to 60 day payment terms are:

o Fortune 500 companies
o Large and medium sized companies
o State government agencies
o Federal government agencies

On the positive side, providing trade credit to the proper clients can be a tool that allows your company to win important contracts and position it for growth. However, providing credit is also risky and can erode the company's cash position if it is misused. Furthermore, offering trade credit to less-than-creditworthy clients can burden the company with bad debt and affect its growth prospects. Because of this, business owners must walk a fine line balancing their desires to grow their businesses with the necessities of offering credit to their customers.

Keys to providing trade credit successfully
The best way to minimize the risk of providing trade credit to a client is to perform a credit analysis on him. Although no credit analysis is 100% perfect, they allow business owners to make an informed decision on whom to issue credit to. Here are the three key points to making a credit analysis.

o Have the customer fill out a credit application

Have all your customers that want credit fill out a simple credit application. This will allow you to have all relevant facts in a single document. The application should ask for the following information:
1. Company structure
2. Banking relationships
3. Commercial references
4. Supplier references

o Check bank and supplier references

In their credit applications most clients will only list banking and commercial relationships that will position them in a favorable light - however - it is always a good idea to check on all of them anyway. Banks will only be able to confirm that the client has an account with them. Supplier references, however, may provide critical information regarding the clients' payment habits.

o Check commercial credit reports

There are a number of companies that sell commercial credit reports on businesses. As opposed to consumer credit reports that require special permissions, commercial credit reports can be obtained for any business without asking for prior permission. Reports vary in their level of detail and accuracy and can be obtained for as little as a few dollars. However, all reports will include important information to help your credit department make a decision. More detailed reports will cost a few hundred dollars. You can obtain credit reports from the following companies:
a) Dun & Bradstreet (www.dnb.com)
b) Experian (www.experian.com)
c) Credit.net (www.credit.net)

Doing a credit analysis on your clients will allow you to determine how much - if any - trade credit you can give them. Clients that do not have a favorable credit analysis should be placed on a COD (Cash On Delivery) basis, at least initially, to reduce the risk of non-payments.

The challenges of offering trade credit
One of the main drawbacks of providing trade credit is that it can create a cash flow problem for the company that offers it. Large suppliers with adequate cash cushions in the bank can easily afford to offer credit. However, small suppliers with lean bank accounts usually find that offering credit will drain their cash resources and create financial challenges. It is not uncommon for small businesses to find themselves with a cash flow gap after offering trade credit to their larger clients. This gap is created by the fact that the company's Accounts Receivable account is strong while the company's bank accounts and cash position are weak. The cash flow gap places the business at risk of missing payroll and debt payments. It also prevents it from pursuing new opportunities because they don't have the funds to buy resources or hire the necessary staff.

Bridging the "cash flow" gap

The biggest asset that most new businesses have, aside from their equipment and intangibles (e.g. employees), is their unpaid invoices or Accounts Receivable. Accounts Receivable is an asset that can be quickly converted into cash by using a financial tool called factoring. Factoring allows a business to sell the financial rights to their Accounts Receivable to a third party, called a Factor. As part of the sale, the factor immediately advances a large portion of the cash value of the unpaid invoices to the business. The business can then use this cash infusion to strengthen its cash position and meet its obligations. In the meantime, the factor, which now owns the invoices, waits to get paid by the customer. Factoring enables business owners to outsource their trade credit function to the factor and to turn their companies into the equivalent of an "all cash" business. If you want to learn more about factoring and how it can be used to grow your business, please read our white paper titled "Factoring: Cash on Demand for your business without debt or loans"

About the author:
About Commercial Capital, LLC and Marco Terry

MLM Success Training - How To Make Prospects Beg To Join Your MLM Business

2008-09-23T14:10:00.002-07:00

by: Richard Knight
Copyright 2005 Richard Knight

If you’ve been struggling to close prospects into joining your MLM Opportunity or even to go to a website or go to a conference call to get more information then you HAVE to read this article.

In order to effectively close prospects into taking the action that you want them to take, you will always have to accomplish 1 thing first.

During every prospecting call, you always want to “Hit Your Prospects Hot Buttons”. But more specifically, you always want to hit their “Pain and Pleasure Buttons”.

And here are a few tips you can use to “Make Your Prospects Beg To Join Your MLM Opportunity.

First, you always want to know what “Pain” your prospect is having in their life (their Pain button). Remember, your prospect filled out that form “for more information about a home based business” to get rid of a “Pain” in their life that’s brining them down in one way shape or form.

This pain could range anywhere from being in credit card debt to having creditors harassing them each and every day. Your prospect’s pain comes in all different shapes and sizes and it’s your job to find out what it is.

Next thing you want to do is hit your prospect’s pleasure button. All you have to do is let your prospect visualize the “pleasures or goals” they’re trying to achieve through a home business.

Your prospect’s pleasure button can be anything from finally taking that dream vacation to being able to pay for their daughter’s wedding. Just like they’re pain button, your prospect’s pleasure button comes in all different shapes and sizes, so be careful because sometimes your prospect will let you know the “real” reason they filled out that form “their hidden pleasure” and you’ll really have to pay attention to notice it.

So the next time you pick up that phone to call a prospect or even if you’re an email prospector, always find your prospect’s “Pain & Pleasure buttons”. Because I guarantee the prospector who tells that struggling father of two “If I could show you how to pay for your daughters wedding (their Pleasure Button) and help you get out of credit card debt in the next 7 months rather than the next 10 years (their Pain Button) would that be worth 22 minutes of your time?” will always get better results than the newbie MLM’er who says “How would you like to make $5,000 in the next 30 days?”

Always remember to hit your prospect’s “Pain and Pleasure Buttons” and you’ll have your prospects begging to join your MLM Opportunity in no time.

How to give your customers a choice between you and the competition and have them

2008-09-23T14:10:00.001-07:00

choose you.
by: Michelle Dunn
Instead of giving your customers or potential customers a choice between you and your competition and having them choose the other guy, have them choose you.

Michelle Dunnfs new bookh Become the Squeaky Wheel,h says creating a credit policy can have surprising results.

According to Dunn, a leader in the debt collection industry, some customers, when given the choice, between signing a credit application or paying at the time of sale, mostly choose the credit application regardless of who has the cheaper prices. It is true that some customers will buy more from you if they are approved for credit and have more time to pay. It makes it easy for them to place orders and receive a bill, rather than have to pay at the point of sale.

Like everything else, the easier you make it for the customer to buy from you the more sales you will have. Customers want things to be easy, fast and instant. If they are credit approved and can call and order and have the item quickly, then pay when they receive a bill, they will be more likely to order from you than someone who doesnft offer that option. Resulting in your business making more money and more sales.

About the author:
Michelle Dunn has over 17 years experience in credit and debt collection.
She has written 5 books in her Collecting Money Series. For more information on Michellefs services or to order any of her books please email her at michelle@michelledunn.com or visit www.michelledunn.com& www.credit-and-collections.com

How to Cut Credit Card Debt

2008-09-23T14:09:00.001-07:00

by: Richard Townsend
Most Americans have too much credit card debt. Duh, we've all heard that
before, right? Only now its gotten a bit personal... right again? You
personally have too much credit card debt and its about to drive you crazy.

Well there IS hope so don't file those bankruptcy papers just yet. One
major thing you have to keep in mind is your creditor is probably very
willing to work with you. Its in their best interest to have you making
some payment versus no payment. So here are a couple points to help you deal
with your credit card debt.

The first thing you have to do is simply contact your creditor and let them
know your situation. Ask for a lower interest rate or a repayment plan.
You might not have thought of it because you're just naturally so polite but
its a very good strategy to be courteous at all times when negotiating with
your creditor. Polite, but firm. Come across as one who knows what you're
asking for and expect to get it. If you're not sure what you're asking for
in the first place you might consider a reputable credit counseling service.
There's a lot of great, honest organizations out there whose mission is to
help you work things out with your creditors.

Next you've GOT to stop using your cards. Cut them up, freeze them in a tub
of water, whatever you need to do to get them out of your wallet or purse,
do it! You simply can't keep adding to the problem by running the debt up
any higher. This is actually one of the hardest parts of cutting your
credit card debt. Its like you're addicted to spending money you don't
have. So go cold turkey and drop the habit.

Start paying the ones with the highest interest rate first and work from
there. How do you do that? Concentrate on those high interest rate cards
by paying more than the minimum balance each month. The minimum is just
designed to keep you on the hook longer anyway. The credit card companies
are in this business to make a profit and want to have you paying them for
years to come. Even a little extra each month makes a big difference in the
long run.

Lastly, keep your chin up and have a good attitude. Millions of folks just
like you have begun to cut their credit card debt by following the common
sense steps outlined above. You can do it too. Good luck.

How To Avoid Medical Collections

2008-09-23T14:08:00.001-07:00

by: Steve Austin
Medical Collections True Tales: Confessions of a Dental Debt Deadbeat

Medical collections are costing doctors millions. Here are the secrets of why patients don't always pay their bills, from a real-life deadbeat.

With medical collections costing doctors millions upon millions of dollars in unpaid bills and collection fees, many people have just one question: Who are these people who are trying to stiff the doctors who delivered them from great physical pain (or the flu, hypochondria, not-so-white-teeth, or a nose that didn't look enough like Brad Pitt's)?

Well, I'm here to tell you who these people are, or at least some of them.

They're me.

Yes, I admit it: I left a dentist's bill unpaid for three months.

OK, so dentistry isn't technically considered "medical," but it's the same situation: a doctor left in the lurch.

Why did I do such a horrible thing, especially when I, a small businessperson myself, know how difficult unpaid debts can make cash flow, and how it could very easily make me persona non grata in that office?

Why Medical Collections Happen
Or, Possible Reasons for Me Being a Deadbeat

Here are reasons commonly advanced for why people like me might not pay a doctor's bill.

They don't have enough money, plain and simple. After all, if they couldn't afford insurance, they probably are going to have trouble with the bill.

They don't care about the poor doctors and either don't know about or don't care about the potential for damage to their own credit ratings.

They are chronically lazy, stupid, or just don't know what they're doing. OK, the terms used aren't quite that specific, but that's the general idea.

All of these possible reasons why a patient might not pay could be pretty discouraging for a practice looking to get the money it's owed. After all, there's not much even the best doctor can do about a patient's poverty, venality, or fecklessness.

But is there really so little hope for collecting on medical debt?

Why Medical Collection Isn't Necessarily So Hopeless
Or, The Real Reason I Didn't Pay My Dentist's Bill

I just signed and mailed a check for my outstanding dentist's bill. That just goes to show the situation isn't so hopeless after all, doesn't it? Here's at least one case of a healthcare practice getting its money back., and after three months at that
No, my financial situation did not improve dramatically, nor did my slothful ways correct themselves.

Wondering what the dentist did to make me pay? Plead? Cajole? Shame? Threaten to put the tartar back?

Actually, the dentist didn't do anything, and that's the problem.

Here's what happened: I remembered I had the bill to pay.

I had forgotten ever owing the dentist money. Since I wasn't expecting the dentist's bill, unlike all the bills that come every month, it got lost in a pile of credit card offers, appeals to help save trees being cut down to make paper, and news about really great products for writers. The follow-up letter reminding me to pay met a similar fate. It probably didn't help when I took a trip to Las Vegas and then threw away the junk mail en masse when I got back.

I finally remembered the bill when someone asked me to write an article about medical collections. Sure enough, the follow-up letter (though not the original bill) was there in the pile of newsletters and friendly reminders from various businesses to schedule this or that appointment.

The Moral of the Story

If you are a patient, make sure to check your mail for letters from the doctor's office. If you're running a healthcare practice, follow up with your patients who have outstanding invoices-a phone call is preferable, since it's less likely to get lost at the bottom of a pile of correspondence.

Don't have time for that? Worried about the legal issues of collection law compliance? Don't let that stop you. Go to a company that specializes in medical collections and accounts receivables management for healthcare practices.

It's not about "putting debts in collection" anymore. Many of these companies offer everything from sending out a few polite phone calls and letters to end-to-end accounts receivable management. None of this has to impact your patients' credit rating or cost you a fortune.

Your office can go back to healing people. Isn't that why you got into this business in the first place?

About the author:
Written by: Steve Austin
Find out more about how to find the best collection agency for your business at http://www.let-no-debt-remain-outstanding.com

How Millionaires Get to Be Millionaires

2008-09-23T14:06:00.000-07:00

by: Daegan Smith
Money is not just a necessity nowadays; it has become a supplement for sustaining wealth and luxury. Anybody of practical reason whofs being asked will have to say that riches should provide for the next generations. Having this thought in mind, everyone are craving for millions even teenagers earn and work out to look forward the future having a house with a large open space, elegant facade and wheels in the garage. Yet there are only few steps, hints of answers revealed by these millionaires global wide.

Before you can manage a large amount of money learn to handle the coins in your hand. Lisa Van Duesen, a Vietnamese now a mini mogul at US was once sunk in debt and penniless. She sold her house and mortgages an amount of $ 200,000, paid her debt and move to settle in the green pasture of US. They sacrifice from eating lavish foods and satiated in rice and soy sauce as their everyday meal. She worked hard as a real estate broker after college and invested her money to real estate properties that soon earned her 40% equity. Learning fro her work, she buys and sells using the bank's money wisely placing them according to her needs. She purchase whatever that has value and can be sold with interest and plan it financially. She recovered from having sky-high debts to rising assets using only what she has into a profitable cause.

Follow your parentfs advice, earn a degree.

Education is a key factor in understanding how money talks and that are by having one potential, being knowledgeable. Invest in your mind. Acquiring a degree is gearing yourself with skill that can be used and valuable in the market. Arturo Gonzalez, son of the Mexican railroad worker dreamt of making it on top. He has promised himself of two possibilities in his life, Harvard or Bust. Later on he was accepted and pulled himself with ambition to Harvard Law School. He then land a job in San Francisco based law firm and has an income about $ 740,000 in 2003, according to the American Lawyer Magazine. This undeniable manifest how education could earn you a living.

Positive attitude towards life spiced with perseverance.

Behavior towards work and the optimism that boost up your moral after you tried hart. Starting a small business is already hard enough, to most of people especially when the resources is scarce and debts is high, study shows 20% are struggling small enterprise, according to SBA ( Small Business Administration office of Advocacy).

Rossie Herman, 42 and a resident of Tomball, Texas had experience a lot of struggle just to get her she is now. She took all the risk even placing her in $ 75,000 debt going form one credit card to another which normally happens to about 46% of small business as of 1998, SBA says. She is a manicurist who has two daughters to raise and convicted herself to get out from debt. Often people slam their door in her face during her marketing strategy of house to house delivery." It was frustrating and tough", she admitted. Yet willingness to succeed paid off. The key there is not by quitting but pursuing.

Invest and Save.

The problem of the most entrepreneurs are recognizing only on what goes in the pocket but not knowing what goes out. Spend only what is not more than your budget and compromise from it. Save, save and play out to invest it when the economy is not shaky. One of Oprahfs best advices during her talk show is that a good financial planner must always sign their own checks. This is to monitor what is left and what needs to be saved or else youfll end up bankrupt without even knowing it.

Time is always essential.

Multi tasking is the best way of achieving your goals in a short time, this means use your potential in dividing the task to others while focusing on what needs to be done. Most of us try to do a lot of things in a short amount of time and end up finishing nothing at all. Always get your priorities straight and focused baring in mind that investing on it will profit you in the end.

About the author:
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>http://www.comlev.com Team Blog: http://www.turnkeyinternetbusiness.blogspot.com

How do commercial debt reduction companies work?

2008-09-23T14:05:00.000-07:00

by: Jon Butt
Donft stress it ? commercial debt reduction companies are proven authorities in debt negotiation to reduce your commercial debt in the best way possible for you, especially when youfre least interested in the worst alternatives like Chapter 11.

The best debt negotiation companies are there for your small business or medium-sized company - the size of the companies involved is never an issue to these debt negotiation professionals. The heart of the matter is debt reduction to take your commercial debt through rough patches including recession that creates those limited dry spells in your cash flow.

Debt Negotiation Will Reduce Your Debt And Save Thousands Off Your Commercial Debt!

You know whatfs best for your business or companies ? and debt reduction companies know best how to get your business back on track. Companies across the country have chosen a debt reduction program to effectively structure their commercial debt.

Your debts can seem like an insurmountable obligation ? and the most frustrating thing with commercial debt is that as hard as you work to succeed, your supplier companies demanding payment ? or even larger factors like a bad economy - create bad credit issues that can be completely out of your control.

You know you offer one of the best products or services in the marketplace, and all you need to do is reduce your commercial debt, re-establish your credit rating and get your business back on track.

Debt reduction companies understand your hard work and best efforts, so you can depend on qualified counselors, CPA and legal pros in debt negotiation and debt reduction to put your debts on the firing block.

About the author:
Jon Butt publishes www.the-debt-reduction-guide.coma free resource providing genuine, up-to-date advice for debt reduction, credit card debt elimination, the best online consolidation loans, how to get a decent credit score and, above all, how to avoid bankruptcy

How A Home Business May Protect You From The Housing Bubble

2008-09-23T14:03:00.000-07:00

by: Dave Saunders
Not everyone agrees there is a housing bubble which will have an impact on the entire economy, but how about one that has an impact on you? If your home was devalued, even temporarily, do you have the cash flow to sustain your credit or allow you to sell your home without getting into debt? In the US today, many people live in homes which have positioned them in a loosing financial situation. How can a home business improve your financial position and protect you from the potential effects of a housing bubble?

First, many people have W-2 income as their only source of income. While a job is certainly a great way to trade your time for a consistent flow of money, it also provides you with the fewest tax advantages which means you end up paying more to Uncle Sam than those who also run a home business on the side. For example, many CPAs and tax planning specialists can show you how to deduct part of your home expenses, your cell phone bill and even costs to maintain and operate your vehicle, legally, if you are able to document that you actively work on your home business each day. This can turn expenses you are already paying for, into tax deductions. Thatfs money in your pocket! Money saved can be reinvested into growing your business or applied to paying off your mortgage more quickly.

Protect yourself and protect your hard earned home equity by improving your cash flow and avoid running close to the edge of the value of your home compared to the debt owed in your mortgage and any home equity loans. Be sure you consult with a tax professional and a CPA to properly plan the tax benefits you can receive from having a home business. Apply those savings to building your savings and also to paying down your mortgage as quickly as possible. The more equity to have in your home, the more insulated you are from possible effects of the housing bubble and also from the effects of personal and professional emergencies.

Home Equity Loans ... Wise or Unwise?

2008-09-23T14:02:00.000-07:00

by: David Greene
Home Equity Loans

Over the past few years many Americans have established lines of credit secured by the equity in their homes. For marginal borrowers this can turn out to be highly risky as it exposes these families to the loss of their homes. Lenders tend to quickly change colors from friend to foe in times of financial crisis and need and will "take it away if you can't pay".

Prior to mortgaging or refinancing a home one should consider what the families finances would look like if one or more of the family members living in the home lost their job or came down with a serious illness.

How long could you keep the home payments current if there was an unfortunate loss of family income?

In spite of the dangers of refinancing or taking out a home equity loan there are times when it may in fact be wise. Perhaps credit card debt has gotten out of hand. You can get a home equity loan at much lower rates, pay off the credir card debt, and lower your monthly payments, perhaps as much as by 50%.

A word of warning, however. You must not run up your credit card balances once again or you will end up in even worse financial shape than you were to begin with. It would be far safer to avoid temptation by cutting up your credit cards and using a debit card instead.

There are other occassions when a home equity loan may be justified. Perhaps you wish to start your own business and are willing and able to take the risk that things may not work out as you plan. Your home equity will likely be the cheapest source of start up capital around.

Perhaps you wish to purchase an existing business, one that should earn you a good income for a long time to come. Again your cheapest source of capital would likely be a home equity loan.

In general, one should consider a home equity loan when the loan proceeds are used to very likely improve ones financial position. This would be a wise use of the loan proceeds.

One should use extreme caution in using a home equity loan to purchase additional consumer goods, say a large expensive flat screen TV set or a new SUV. The worst example of the use of a home equity loan that I know of was a couple who took out a loan in order to go to the Superbowl. Just think of how much that Superbowl trip will really cost over the years as interest payments are added in. What a terrible short sighted financial decision.

My advice. Use a home equity loan only to improve your financial position or to raise funds in a true emergency situation. Using a home equity loan to purchase things that will only lose value is a misuse of the loan proceeds that could cost you what is probably your most useful and valuable possession ... your home.

About the author:
David is a full time Internet business developer who maintains an office in Bradenton, Fl. but who spends most of his time in the Land of Smiles, the Kingdom of Thailand.

Government Student Loan Consolidation

2008-09-23T14:01:00.000-07:00

by: Mark Lambie
Are you behind on your bills? Do you have more than one student loan? If you answered gyesh to either question there are some terrific opportunities for you to lump your debt together with a government student loan consolidation. Please read on for more information.

When you graduated from school, more than likely your first job was low paying and your expenses were high. It is not that uncommon for students to rack up bills of 30, 40, or 50 thousand dollars or more in debt, just to the school. Car payments, credit cards bills, and everyday expenses can push your debt levels up through the stratosphere. Time to think of getting some help. Time to consider government student loan consolidation.

What is government student loan consolidation exactly? It is a loan which allows for you to take multiple student loans, pay them off, and make monthly payments to just one lender. Why can this be a good option for you? Well, if you have four loans to four different lenders due at four different times of the month, it can seem as if you are always paying someone back for your schooling. Also, try keeping track of all this with your hectic schedule. Between work, family, friends, and all of life's responsibilities wouldn't it just be easier to have one simple payment to make? Yes, it would.

Another good thing about a government student loan consolidation is that you may be able to lower your interest rate, extend your repayment time, and take out little extra money to pay back other creditors. Maybe you have a credit card payment running you 19% interest. If you got a loan at a rate for half that rate, you would save money, right? Yes, you would.

Where do you go to for a government student loan consolidation? Search the internet! Leading companies are advertising their services to consumers and they are anxious for your business. Shop around and find the consolidation loan that is best for you. Some things to keep in mind:

1. Loan Amount. Will the company pay off all of your student loans, or a portion of what you owe? They may want to see pay stubs and other proofs of income first.

2. Loan Rate. Will loan rate be fixed or will it be variable? You may want to lock in a long term fixed rate to assure that your monthly payments remain stable.

3. Loan Term. Can you deal with paying back a your government student loan consolidation for as long as twenty years? Are there any prepayment penalties? What if you were to default on your loan? What then?

All in all, you have options to pay off your student loans that generations never had before. A government student loan consolidation may be right for you.

About the author:
Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get free mortgage quotes and mortgage information.

Get Out Of Debt Faster With Debt Stacking

2008-09-23T14:00:00.000-07:00

by: James Louis
Each month you pay the minimums and although you KNOW you've got a handle on it - you are not charging your credit card or accumulating new debts anymore - it seems that you will be paying the minimum fees forever.

Did you know that HOW you pay your debts can affect how soon you will finishing paying them off - even if you keep paying the same amount for debt every month? Of course you might be able to get a consolidation loan, but if you're not eligible or are not interested then there are several other things you can do.

It's not always the easiest to figure out the mathematics, but there are three steps to quicker debt relief - guaranteed.

STEP ONE - Create a list.

List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes).

Plan to pay the minimums on all debts with these goals in mind:

STEP TWO - Small bills first.

They may not be the highest interest, but every bill that you are paying some interest on means you are usually only paying minimal amounts on the principal. Multiple debts are also a sure way to bring your spirits down. Paying off small debts first is a quick way to start checking them off - and freeing your mind.

STEP THREE - Move the payments along.

When one debt is paid add the funds to the next debt. For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.

STEP FOUR - Save the cash!

Don't forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month.

With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment.

It is a worthwhile goal to get out of debt. Seeing that goal come sooner and teaching yourself discipline sets you up for a brighter financial future. You OWE yourself that!

About the author:
James Louis writes about things that impact our society. His years of experience in finance prompts him to write about and share his insights about different aspects of the financial world. One of those insightful subjects is payday loans. For more information visit: http://www.payday-loan-site.com

Financing and Refinancing Programs are Plentiful

2008-09-23T13:58:00.000-07:00

by: David Arnold Livingston
As cliche as it may sound, the gMoney makes the world go roundh adage still holds true. Especially nowadays when everything and anything tangible or intangible can be bought with onefs dollars, money is apparently of extreme importance. What if you want to buy a home or start your own business? How do you go about your financing endeavor? Read on for the best avenue that will gshow you the money!h

Coupled with management and planning skills, financing is what will aid one in venturing into business if he/she wishes to make it grow and get the desired profit. Many financial institutions are offering various types of financing that may assist in tackling this matter.

To better understand the wide array of financing options for your money needs, here is a rundown of the types of financing that you can avail.

1. Revolving Line of Credit

This is the most usual and most low-cost kind of business loan for small and medium-sized businesses. A revolving line of credit will fund a companyfs working capital. This working capital typically consists of the sum of present assets minus the present liabilities.

2. Non-Capital Goods Financing

This is a type of financing that is for short-term deals. These deals are with settlement terms of about a year or may be less for buying goods, i.e., construction materials, products, and other non-capital stuff.

3. Project Finance

Financial companies offers financing for projects that need longer than 5 years repayment terms. Depending on the predicted cash flows and kind of revenue that a project is about to generate, this kind of financing undergoes extensive analysis.

4. Capital Equipment Financing

Extension of funding plans is possible if one chooses this financing. As the transaction requires it to be, the extension can go from 1 to 10 years.

5. Subordinated Mezzanine Debt

This is one of the more expensive types of financing compared to revolving line of credit and term debt. Lenders usually ask for equity like warrants to add on their earnings from interests.

6. Equity Financing

This form of financing is for investors that are brave enough to face major risks that this kind of financing brings. But with that warning of a great risk comes the expectation of high returns on the part of the equity investor.

7. Piggyback Financing

This program caters to homebuyers who avoid the required mortgage insurance when the mortgage is in excess of the 80 percent of the purchase price. Two mortgages with possible varying costs are available for the borrower with this type of financing.

8. Creative Financing

This option is when the buyer of the house is with a third-party lending institution, i.e., a bank or a loan company.

9. Owner Financing

This is when the property owner or seller finances the buyer.

These are some of the most popular financing possibilities one can acquire for his/her business or any money-involving activity. What would further serve you best in your decision making on which to stick to is considering payment terms you can afford and the right timing when applying for the funding plan.

With the many options mentioned, you are more armed with the several financing choices that will help you pull it off with yourbusiness, home buying or any endeavor that requires financial aid.

Financial Woes - Consider a Debt Management Company

2008-09-05T20:35:00.000-07:00

by: Kevin Erickson

You've been working yourself silly for years and yet... you still have no savings and the pile of unpaid bills seems to grow each and every month. You have creditors breathing down your neck - calling and sending you letters so much that you're afraid to answer the phone or pick up your mail... it's a difficult and stressful pill to swallow.

Sound familiar? Unfortunately, many people who are saddled with debt seem to be under the delusion that everything will eventually go away if they just ignore the situation. Therefore, they ignore the calls they receive from creditors and simply stop opening their mail. Not only is this living in denial but it's the equivalent to financial suicide and will only extend and exacerbate the problem the longer it continues.

Fortunately, debt management companies abound and with the advent of the internet it's easier than ever to contact them. It's simply a matter of researching the most suitable debt management company that you feel the most comfortable with.

Securing the services of a debt management company is not something that should scare you, given the fact that you are not in control of your finances anyway. As a result, it may be time for you to embrace the opportunity to use their services to assist you in solving your financial woes.

That being said, take in all the information they can provide and use it to educate yourself about debt and work with them to develop a plan and set a realistic time frame to take pay your off your debt.

When it comes to choosing a debt management company that will effectively cater to your needsc do your due diligence and ask as many questions as you need to, in order to feel comfortable. Learn what they have to offer and what it will cost you to use their services.

A debt management company should be able to come up with various plans on how to handle your current financial difficulties but you must be open-minded and realistic. It probably took you years to put yourself behind the financial eight-ball and so the process of pulling yourself out of the hole you've dug will also take some time and may at times, be a bit painful.

In many instances, debt management companies can offer financial plans and terms that will allow you to reduce the time it takes to pay down your debt. This is an extremely practical way for you to handle your finances and hopefully it will finally put you back on track to financial wholeness.

Simple things like getting a part-time jobs, starting a home-based business, as well as making small sacrifices, such as reducing impulse buying and only purchasing necessities until you've paid off your debt will save you hundreds of dollars per month that you can put towards paying off your debt.

When it comes down to it, if you are willing to make a few changes and pay attention to how you spend your money, in many instance it's not a difficult as it may currently appear to overcome debt. But if you stray and go back to the same practices that got you into debt in the first place, you'll find yourself sinking back into the black whole of debt. Regardless of the plan and ideas a good debt management company can show you, if you are not willing to make the necessary lifestyle changes, no plan or no amount of expertise from them will make one bit of difference.

About the author:
Kevin Erickson is a contributing writer to the following websites: http://www.debtmgmtresources.com/and http://www.aneyeondebt.com/.This article may be reproduced only in its entirety.

Effective Policies and Procedures - 4 Parts of the Complete Cash to Cash Cycle

2008-09-05T20:34:00.000-07:00

by: Chris Anderson
The Cash to Cash Cycle
Final of Series

Part One: http://www.bizmanualz.com/articles/01-05-05_inventory_procedures.html?src=ART78

Part Two: http://www.bizmanualz.com/articles/01-11-05_accounts_receivable.html?src=ART79

Part Three: http://www.bizmanualz.com/articles/01-18-05_Sales_Marketing.html?src=ART80

Part Four: http://www.bizmanualz.com/articles/01-25-05_Accounts_Payable.html?src=ART82

In the past four weeks, we've brought to light four key areas in which you can save $250,000 each -- for a total of $1,000,000. Point by point, we've shown you just how cash flows through these areas, making up the Cash to Cash Cycle.

And as we've seen, the cash cycle is undoubtedly the single most important process to optimize for any business – from when you spend money to when you get money.

So now let's put it all together.

Cash to Cash Cycle Definition

By definition, the cash to cash cycle is a financial ratio that shows the length time for which a company must finance its own inventory. It measures the number of days between the initial cash outflow (when the company pays its suppliers) to the subsequent cash inflow (Accounts Receivables).

Cash Conversion Cycle and Cash Flows

One way to express this is the length of time between the purchase of Inventory (raw materials, etc) and the collection of accounts Receivable created from the sale of your product -- also called the cash conversion cycle.

Why is this most important? Because this is your cash flow and because…

Operations Assessment and Working Capital

Businesses live and die by the cash generated from operations. If your operations don’t create cash, then they consume it. A cash-consuming operation means that you have negative cash flow and you are living on financing (debt or equity). But the Cash to Cash Cycle also shows you the amount of working capital you have committed to your organization.

Just add the number of days of inventory to the number of days of receivables outstanding, and then subtract the number of days of payables outstanding. The result is the number of days of working capital your organization has tied up in managing your supply chain. This can be quite a significant number - one not to overlook.

This can also be expressed by the formula: stock days plus debtor days minus creditor days equals the cash-to-cash cycle.

So, for example, a company that keeps its stock for on average 30 days, gets paid by its debtors on average within 30 days and pays its creditors on average within 30 days will have a cash-to-cash cycle of 30 days.

Companies that receive cash from their customers at the point of sale and that have their inventory under good control will have a short cash-to-cash cycle. A company could even have either a negative cycle or a cycle time of zero. For example, if a business’ receivables and payables are held in check at 30 days while inventory runs at Just-In-Time (JIT) levels, then the cash cycle is zero – meaning that this company is in good shape with no working capital needs. And, of course, when receivable days are less than payables with JIT inventory, then the company will enjoy a positive cash-to-cash cycle – creating more cash on hand.

On the other hand, however, if a company puts payables down to 15 days and allows receivables to grow to 45 days, while inventory remains at steady levels, the cash cycle will be high. And. here, working capital will be constrained to compensate for inefficiencies.

Processes and Procedures Investments and Inefficiencies

Did you realize that working capital is the investment you are making in the inefficiencies of your processes and procedures plus your investment in your suppliers’ and your customers’ inefficiencies too? In other words, if you do not monitor inventory, accounts receivable, sales and marketing and accounts payable to ensure a healthy cash-to-cash cycle, then your working capital needs will not maintain a strong cash flow. The process will be out of control, and will not be optimized to create the greatest amount of effectiveness for the company.

Policies and Procedures Savings

So now you can see the relationship between your cash flow, your working capital and your cash to cash cycle. In order to increase your cash flow, you need to increase the velocity of your cash to cash cycle by reducing the inefficiencies found in your processes, your suppliers’ processes and your customers’ processes. The result is a decrease in your working capital and an increase in your cash. And, as we've seen, this can be a significant number – again, one that you shouldn’t overlook.

Do You Need Bad Credit Help

2008-09-05T20:33:00.000-07:00

by: Jeff Schuman

? Are you one of thousands with no
credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all
you hear is stories and more stories?

Bad credit is a term used to describe a poor credit rating.
Common practices that can damage a credit rating include making
late payments, skipping payments, exceeding card limits or
declaring bankruptcy. Bad Credit can result in being denied
credit.

Bad credit can result in a negative rating from the credit
reporting agencies. Many factors can contribute to someone
getting a "bad credit" rating, among these are non-payment of an
account or late payments over an extended length of time.
Whether non-payment of an account is willful or due to financial
hardship, the result can be the same, a negative rating which
will result in a low credit score. However, lenders are more
willing to work with individuals if the person contacts the
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A credit score is defined as a statistical method of assessing
an applicant's credit worthiness. An applicant's credit card
history; amount of outstanding debt; the type of credit used;
negative information such as bankruptcies or late payments;
collection accounts and judgments; too little credit history,
and too many credit lines with the maximum amount borrowed are
all included in credit-scoring models to determine the credit
score.

Raising your credit score is possible. It's a well known fact
that lenders will give people with higher credit scores lower
interest rates on mortgages, car loans and credit cards. If your
credit score falls under 620 just getting loans and credit cards
with reasonable terms is difficult.

Here are five things that you can use to raise credit score.

1. Correct obvious mistakes.

Your credit score is what shows up in your credit report. Review
your reports from all three credit bureaus for accuracy once a
year as well as several months before applying for a loan.
Changing a mistake on your report can take 30 days to three
months, or more. Get Your credit report from the three major
bureaus: Experian, Trans Union and Equifax.

2. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score.
Your recent payment history will carry much more weight than
what happened five years ago.

Missing just one payment on anything can knock 50 to 100 points
off of your credit score.

Paying your bills on time is the best way to get started
rebuilding your credit rating and raising your credit score.

3. Reduce your credit card balances.

A heavily weighted factor in your FICO score is how much money
you owe on your credit cards relative to your total credit
limit. Generally, it's good to keep your balances at or below 25
percent of your credit card limit, said Jeanne Kelly, founder of
The Kelly Group in Brookfield, Conn., which helps clients
improve their credit scores.

4. Donft Close Old Accounts

In the past people were told to close old accounts they werenft
using. But with today's current scoring methods that could
actually hurt your credit score.

Closing old or paid off credit accounts lowers the total credit
available to you and makes any balances you have appear larger
in credit score calculations. Closing your oldest accounts can
actually shorten the length of your credit history and to a
lender it makes you less credit worthy.

If you are trying to minimize identity theft and it's worth the
peace of mind for you to close your old or paid off accounts,
the good news is it will only lower you score a minimal amount.
But just by keeping those old accounts open you can raise credit
score for you.

5. Avoid Bankruptcy

Bankruptcy is the single worst thing you can do to your credit
score. Bankruptcy will lower your credit score by 200 points or
more and is very difficult to come back from.

Once your credit score falls below 620, any loan you get will be
far more expensive. A bankruptcy on your credit record is
reported for up to 10 years.

The reality of a bankruptcy is it will limit you to
high-interest lenders that will squeeze out high interest rate
payments from you for years.

It is better to get credit counseling to help you with your
bills and avoid bankruptcy at all costs. By getting credit
counseling instead of declaring bankruptcy you can raise credit
score over a much shorter period of time.

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Debt Relief From Debt Consolidation

2008-09-05T20:32:00.000-07:00

by: Jakob Jelling

If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing greliefh from the current debt by shrinking it down to a single manageable debt.

Using home equity to consolidate debts

One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeownerfs home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time.

Refinancing loans

People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one.

Credit card consolidation

A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the yearfs end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well.

All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better.

Dealing With Disputes

2008-09-05T20:31:00.001-07:00

by: Nichola Smith

Disputed debts are a pain! Every Credit Controller would agree that the time taken to deal with disputes on the aged debt is time which could be spent calling the customers/clients who do pay or the larger accounts where their group targets will be hit and a nice bonus is their's for the taking. However, no debt should be ignored. Take a look at your aged debt today with your Credit Controller or indeed your team. If there are any debts over 60 days ask them why. If the answer is 'well that's disputed' you have a problem. A worthy Credit Controller loves and nurtures and takes pride in the aged debt that is presented to them because it is a reflection of themselves and their performance. Disputes are dealt with quickly and treated like the parasites they really are and are swatted away because they do affect your cashflow and so will lazy Credit Controllers.

Persistence is the key to keeping that aged debt and your cashflow healthy. Why not visit our website and subscribe to our newsletter which gives you tips on dealing with disputes.

About the author:
After 20 years in debt collection we wish to dispel the myths and help you to maintain your cashflow and overdue debtors with ease. Our articles are aimed to assist you in this process and you can obtain further hints and tips by visiting our website.