Debt Restructuring or Business Bankruptcy – Which One To Choose

Your clicking on this page reveals that you are looking for the best way to get rid of the business debt. May be you are thinking about filing for bankruptcy but then again you are thinking that it’s not a great idea. Are you thinking now is hiring an organization for restructuring your debt a great idea?

So here is something better for you.

If you are struggling because of business debt then there might be some great solution to it. First let us check the problems that come with it.

Major Issues With Business Bankruptcy:

It is more like preparing something with salt, which cannot be denied but then again too much can make it an absolute mess. The truth is conducting small business completely from the cash flow is a challenging job. Then post business bankruptcy you can find your name in the penalty box. In such situation you will only qualify for the worst type of financing options.

Are you using it just as an excuse?

It really does not matter which way you choose at any lending, finance, bank or a leasing company, bankruptcy is like the warning light continuously flashing on the forehead. This is usually a lengthy process which requires lawyers. This again means you need to put a lot of money.

What About Your Business Credit Rating?

Business debt might cast a negative impression on the business credit report. There are many institutions that make use of indicators like Delinquency Predictor Score or D&B Paydex Score for deciding whether to opt for lending money to you or not.

Well, most of the small business lenders do not even bother about reporting until and unless it is a credit card company or a bank. Till it is about your personal credit, until the lender opt for judgement there is no other way to report the personal credit bureaus. You will find many lender refusing or might charge a bit higher.

So which is better – Debt Restructuring or Business Bankruptcy?

This depends completely on how your business has the plan to work, do you want to be a part of business, and is the business sustainable. When you have decided to be in the business debt restructuring is the only choice for making instant impact on the business cash flow.

Always keep in mind that when you have intention to stay in business, filing for bankruptcy can result in losing customers. BK is a very public procedure and all the creditors might automatically get notified along with your customers and clients.

This is the reason why businesses require analyzing properly before jumping into the conclusion. Since it can result in penalizing, it is always a need to talk to the skilled experts from the Bottom Line Bankers in order to get more details about the Small Business Loans. Moreover, they can give proper advice on the best choice when it comes to business debt. So don’t take any abrupt decision just talk to the experts before you jump into conclusion.

Top 4 Auto Repair Shop Loans

Proper location, specialized equipment, general inventory and apt payroll can become quite expensive for people to keep up — especially when you are just starting. Auto shop repair can definitely result in putting your bank balances at risk.

This is when you will start looking for loans as you will require additional working capital.

In such a scenario, a business loan or working capital loan is the first thing to come in your mind as it helps to ease the cash flow along with help in the growth of your auto shop repair process. So today we will find out some of your top options that you can think about along with the ways to company and what it requires to apply.

What Are The Top Business Loan Options Available for The Auto Repair Shops?

The financing type you choose vary a lot from the ways your company is generating revenue along with the ways you will be using the loan funds for. As this is particularly for the auto repair shops and where the revenue is mostly generated from customers by upgrading their equipment or repairing the tools, it is always a better option to opt for loans that is specialized for equipment. It can be an ideal choice.

So let us check the top few options available for you:

Equipment Financing: When you have to buy specialized equipment in order to repair your auto shop, it is always great to choose a loan which offer security to whatever you are about to buy along with offering the best interest rates. By this procedure, you can be able to finance everything from the point-of-sale to a new lift through.

Merchant Cash Advance: This is another one-time loan which you can repay by making use of a percentage from the daily sales. When you are just starting but have regular business, the merchant cash advance can be an effective way to add the working capital.

SBA Loans: We have all heard about the Small Business Administration loans or the SBA loans. There are a set of guidelines that this loan comes with which the banks always follow when it comes to offering guaranteed loans. Federal government guarantee tend to simplify the qualification standards that approves an amount of up to $5 million. The SBA 504 loan program can be a favorable choice for the big real estate purchases like moving to a new location or expanding your business.

Business Line of Credit: This is just like the credit card. The line of credit offers you to use against the approved amount. Once you pay the used amount, you can again use it for your next purchase. Once you get promotional periods, you can again use it for making a big purchase without paying huge interest.

All these loans require proper documentation and have its own set of advantages. So it is always advised to opt for one from these top auto repair shop loans in order to be able to remain at your best condition. Now you can also discuss with the top professionals of Bottom Line Bankers about the Working Capital Loans in order to put the best step forward.

Small Business Loans: 5 Tips to Get Approved Faster

Every business is associated with transaction of money. Smooth cash transaction is possible only when there is enough funding option and adequate sales. For smaller business, funding is not an easy means. The most common types of funding options available are a business loan. However, the process of application for a business loan is lengthy and is not very easy to obtain. For smooth and easy small business loans, one needs to follow some tips.

  1. Keep your loan documents in perfect order

    – Every business involves one or more number of documents that are directly involved with the financial state of a business. If the financial, accounting and tax records are kept up-to-date and accurate, the process of application process for the business will be easier. Transparency of financial transactions is a must in every business that will benefit you at the end. Hiring a bookkeeper for dealing with the accounting part is a good aspect in avoiding ignorance of maintaining a good proper financial book.

  2. Demonstrate a steady cash flow in your business

    – Cash is king and is also a vital predictor of health and prospects of a business. A clear demonstration of the financial statements, bank statements and tax returns can help you to ensure potential financers that you are able to pay creditors or others at the time. That means the documents provided with a historical perspective about the performance and cash flow of the business. A dip in the cash flow due to loss of any customer or due to recession can be followed by an explanation on an advance.

  3. Maintain a good credit and a manageable debt load

    – Debt load is the amount of balance due that is carried on your balance sheet. You need to demonstrate that you are able to handle your current debt load as well as additional debt repayment that will occur for your proposed financing. You can show how the extra liquidity will be used and forecast the additional revenue that will be received through the loan. Keeping track of your documents is a primary step and in addition, you have to make sure of paying your bills on time. Bankruptcies, foreclosures and late payments should be avoided. Maintaining a good credit is an essential part of the loan application process. Financial institution or lender will go through your credit score.

  4. Know the type of loan you need

    – You need to understand what type of loan that works best for you or your business and is very vital. Getting the business loans to be approved depends upon the program one is applying for. Some of the programs need more documentation in comparison to other programs. Some of the requirements can be a standard business loan, a cash advance against credit card income or merchant cash advance program, loan for buying equipment or foundry, a mortgage loan for commercial purpose, etc.

  5. Understanding every financial institute is different

– Money lending institutions are the prime lenders. Small banks are usually built- up on personal relationships and in large banks, bound by high qualifiers, who may exclude small businesses. You can approach a small bank with your appropriate requirements and query. For choosing the best one for your business, you can compare rates, lease terms, total cost and other options.

What Are The Different New York Business Loans Options

New York City is said to be one of the most competitive regions for starting a business in the entire country and perhaps the world. We are all aware that it is one of the most populous states and city in the U.S and which as a result leads most of the business minded people to start a business in this corner of the U.S.. However, to run a business in such a populous and thriving city, you require great funding for maintaining business in your area.

Irrespective of the industry you belong to, starting a small business in this part of the U.S. has end numbers of advantages. Since it has such a huge local economy, any quality or unique small business can soon write their success story. But then again, such a big sized economy can give a headache to the business owners as you will always find your competitors expanding their business.

This is where the struggle comes as you require proper funds to invest in your business or for upgrading. There are various small business funding or traditional banking loans available that can effectively meet your business funding needs in NYC.

Rollover for Business Startups (ROBS):

In the startup financing world, the Rollover As Business Startups is one of the best-kept secrets. The reason is it again helps in investing funds from the retirement account into the new business. This does not require paying early income taxes and withdrawal penalties.

Cost: It requires an amount of $5,000 for setup along with $140 approx every month as monitoring fees.

Is It The Best Choice For Startups: This is a flexible loan plan and is an excellent choice for almost every startup. The acquired fund from ROBS can be a great choice to serve as down payment for any startup business or as an SBA loan.

Small Business Credit Cards

Both business and personal credit cards can become a cost-effective way for startup financing. Some of them come with 0% APR along with great reward programs or cashback. This can be a great way of business saving if you are someone who uses credit cars along with becoming a part of the business financial toolkit.

Cost: The average Annual Interest Rate is 16% while some cards also have the annual fee that cost $50 -$100.

Is It The Best Choice For Startups: Business credit cards can be a great choice for everyone and need to be a part of the business financial toolkit. In case you are ready for applying for business credit card, you can definitely opt for The Bottom Line Bankers.

SBA Loans for Startup Businesses:

SBA or the Small Business Administration is known for the loan guarantee programs. Some of the basic SBA programs which are best for your startup company are Microloan Program and Community Advantage Program. Both of these targets underserved or new businesses. All SBA loan types can become a great choice for the startups, but some of them are difficult to quality when you do not have any existing business.

Cost: It charges 6 – 9% plus the fees as Annual Interest Rates. You might end up paying 0.5 – 3.5% as the origination fees, $2k – $4k as packaging fees and 3 – 3.5% as SBA guarantee fees.

Is It The Best Choice For Startups: These loans are generally relevant for the self-financed startups along with the experienced startup owners who have been in the management and industry for years. The prime advantage of opting for an SBA loan is because of its long repayment term and low-interest rate. This reduces monthly payments in comparison to other loan options.

Bottom Line:

When it is about looking for financing opting for your startup in NYC, these are the top best options for small business loans available for you. Make sure you check with the skilled banker in order to make the best decisions. Since running business in NYC requires being competitive and which again needs proper funding, opting for the best loans is the best choice.

Leasing or Owning Business Equipment: Know the Difference Between Two

Any business is a big challenge. While starting a business, a lot of processes are involved. Whether it is a product or service-based business, arranging necessary equipment is a vital part. Smooth operation of a venture is dependent primarily on the equipment along with the basic process. In individual business, the requirement of tools is different. For example, a bakery shop requires utensils and apparatus related to baking and keeping the items in good condition. However, a bookstore will require entirely different apparatus and equipment for safekeeping of the books and related items. In each case, the items are as important as the apparatus or tools that are immensely necessary for operating the venture. Even after the initial stage is over, a business might require the equipment while upgrading, repairing or replacing the old ones. However, for arranging the equipment either initially or during up-gradation, you need some financial assistance. Right financing options can get you the things that you need for your business. However, there are two options, one is the financing of equipment and the other one is leasing.

What are equipment financing and leasing?  

For the purchase of equipment, you need financial support, either from your own or from anywhere else. When you need external financial support for purchasing equipment, taking loans for the same can be an option. Equipment financing is something that is designed especially for the purchase of types of equipment, required in business. You need to repay the debt over time and once the debt is completely repaid, the equipment will be your assets. In some cases, the equipment acts as the collateral itself and if by any chance you default, the lender owns the items. Sometimes, the lender imposes a personal guarantee or blanket lien.

In case of leasing, you can take the business equipment for lease. You need to pay a certain amount for the same, but there is no chance of losing an asset. Paying the rent for equipment on monthly basis is enough to help you for using those without purchasing or personal guarantee.

Difference between leasing and owning

In leasing, you do not have to worry about clearing any debts, but only to pay the lease rent. At the end of the lease, you can either renew it or can buy the same. While you want to own the equipment through a loan, you need to make down payment as well as to pay monthly interest for the loan. However, in case of leasing, no down payment is necessary. No collateral, personal guarantee or lien is necessary in case of leasing. Taking equipment on the lease is beneficial than financing in terms of getting approval. Getting a business loan or an equipment loan needs approval from the financial institutions, whereas getting a lease is much easier to qualify for the approval. However, for long-term, leasing is not a good option in terms of costs. Monthly rent in case of leasing is more compared in long-term and you may end up paying more in leasing equipment than in taking loans for that.

However, it all depends on your business and the type of tools or equipment you need as well as your financial condition that you should take a loan or lease it.

How to Stay On Top In Today’s Small Business Competition

With more small businesses rising every single day, it is resulting in facing a tremendous competition. After the economic crash took place in 2008, the entire workforce has gone through immense changes. These days’ people are leaving their traditions jobs and are focusing on offering products and services in order to reach their dreams. This has led to facing an unimaginable competition not for the established companies but especially for the budding agencies.

If you have recently stepped into such a situation, you will definitely understand the plight of others, but don’t let loose. Competition is a part of any healthy economy and the only key to go across then is walking on the right track.

Keep it Same But Keep It Intriguing:

Well, the entire business realm in intimidating and so as the competition. If you are thinking to reinvent services or products, most of the chances are that you will end up being frustrated. Instead, make sure that you choose something within the industry but something that no one has done yet. Just for an instance, Starbucks is not only known for selling coffee, but also they sell personalized beverage service. This is something that not everyone offers and which is why Starbucks is the real deal today.

Focus On Your Customers:

The real thing that keeps small business growing and succeeds is they focus more on their customers. Business owners understand the need for focusing on their customer and how important it is to respond to their queries and grievance. By following such a pattern, business helps themselves to rise within their limited budget but dream big even in such a competitive marketplace.

Keeping Yourself Engaged With The Competitors:

Most of the people assume that competition is bad and as result competitors are enemy. The real thing is, business rise when you are keeping a track on your competitors move or a healthy competition amongst each other. Even when you are tight in your budget but your competitor is not, always try to focus on what they are doing. These days with the Working Capital Loans available with the Bottom Line Bankers, no more you have to restrain yourself from offering something new in the market. You can walk hand in hand with the competitors, and if your product or service has something innovative, you will be liked by all.

Take Risks:

You definitely need to take risks when it is about your business. Often some of the tiniest risks can lead to better and bigger business that can make you a global icon. It is always advised to initiate with small changes and then jump on the more significant changes. With every tiny step, you will understand if it is actually working in the market or not. As per the result acquired, you can then take the next big step.

In today’s competition, it is always a great thing to put the right step forward. These are some of the simplest ways to rise higher in the competition. Since it is always a need for securing the funds, opting for small business funding options can be a great deal.

So let go of your dreams, just take the hold and rule.