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.

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.

The Pros and Cons of Commercial Loans

While starting a business, an entrepreneur needs to consider two points, whether the business idea is viable and whether the project is feasible or not in terms of everything. Provided all other factors to remain favourable for starting the business, funding for the same might be a cause for worry. Starting with your own funds for the business might be quite challenging and not feasible in most of the cases. At this juncture, you have to consider with external funding. With external funding, most of us think about commercial loans from banks and private lending institutions. Other options for managing funds are there, but mostly, the above options are considered to be the most common in practice. Other funding options like Fast Approval Loans and Merchant Cash Advance are there, but take care before going for anyone. However, there are several advantages and disadvantages of these loans and being an entrepreneur; you have to go through them before starting up.

Pros associated with commercial loans:

  • This type of loan has a low rate of interest compared than other ways of business funding.
  • Commercial lenders are entitled to debt repayment only and not to profits of your business.
  • Interest payments on business loans can be deductible on the taxes paid and are very much advantageous.
  • Commercial loans offer several key incentives to entrepreneurs.
  • Loans of this type are usually of long-term and can range from 3 to 10 years so that entrepreneurs can repay the debt slowly without hampering the business process.
  • It covers bulk start-up cost as large sums can be taken as one single loan.
  • You can have the entire ownership of your company whereas, in most of the other types of loans, a fraction of ownership or the total profit is owned by the lender.
  • Commercial lenders have no interest in how you manage the funds you get a loan; rather they will only review your business plan detailing the potential use of such funds.

Cons associated with commercial loans:

  • Detailed information about the business structure, clear project description with every single area to be covered, information about potential investors, profit and cost predictions. A good credit rating is also a vital factor, lacking that might end in rejection of loan.
  • Business loans from financial institutions are dependent upon government policies and whims of the market. Rates fluctuate and are usually high in the first place and increase on borrowing more.
  • A larger amount of loans often require detailed accounts of the way money or loan will be spent.
  • Usually, you need collateral like any fixed asset like home, land, car, etc. as a security deposit to qualify the bank loans. Also, if you are unable to repay the debt from your business, the bank retains the right to seize the asset that has been used as collateral.
  • Usually, a commercial bank loan appears to be on the side of liability of the business balance sheet and so it affects the valuation of a business.
  • It does not guarantee profit and growth of your business.

Apart from all the points mentioned above as pros and cons, you might find some more, when you actually enter the business after taking the business loan. Whatever, the list might be, you will always find it advantageous to get a commercial loan from a financial institution over other types of funding.

Ways To Ease A Successful Business Loan Application

Financial stability is the prime requisite of small business owners and the only way is by opting for business loans. Undoubtedly taking the decision of starting your venture in today’s competitive era is a matter of concern, but more than that applying for a small business loan seems hectic. Since the application procedure takes time, today we will focus on how to get prepared for the application process which will help to obtain the capital for your business.

When you are ready with everything, the lenders understand that you are a trusted borrower and will definitely pay the loan back on time. So if this is the first time you are applying for a loan but don’t know to make smoothly and quickly, here is a chance for you to understand its requirements.

So what do you need to do?

Keep All Your Documents In Sync:

There is often a need to maintain transparency of financial state when it is about your business. Keeping tax and accounting and financial records accurate and up-to-date is a need to make the entire process smooth. Also ensure that your businesses have everything organized.

When the accountant has everything in hand and nothing to question about, they remain assured they you are a trustworthy person. So make sure all the documents are kept properly in synchronization.

Which type of loans does your business need?

The primary thing that you need is to comprehend the loan type that will suit the best for your business. You can apply for scrutinized loan such as Small Business Administration loan when you require line of credit can slow the procedure and out an end to the denial.

There are various types of loans available for small businesses and therefore choosing becomes a vital choice. You can have a word with the experts of Bottom Line Bankers before you opt for Working Capital Loans.

Make Sure You Have Good Credit:

Definitely keeping a track of the business documents is a need but more than that, you can make sure that you pay the bills on time. Meeting the credit criteria is a need to get the best options. Make sure you avoid charge-offs, late payments, foreclosures and bankruptcies. Since banks primarily check the credit score to understand whether you are reliable or not, maintaining good credit is the primary step of the procedure.

Demonstrate Adequate Cash Flow:

When you have existing business, the first thing banks will check is that you have proper described cash flow in order to make month payments of the loan. The entire analyze is done by checking the past tax returns along with the existing debt. This is the reason why you need make sure that you pay your tax returns on time.

When it is about applying for small business loans, it is always a need to keep in mind about the a few things. If you are new to this market and are not aware of the easiest way to get the Small Business Online Application procedure done, you can follow the above mentioned information.

Top 5 Small Business Ideas That Will Rule in 2018

Do you want to have your own business? If you think you are born for being an entrepreneur, you definitely need to have some of the unique yet great ideas. People who have always wanted to become an entrepreneur are independent in nature and are extremely hard working as they have the zeal to succeed.

For most of the wanna-be entrepreneurs, one of the most significant challenges is deciding what kind of business they want to do and how much chances of being successful do they have. Since it is such a competitive world, where everything is already there, choosing the right type of business is probably one of the toughest jobs.

However, if you are determined about starting your own business, you definitely know these two things: one is you want to make a huge profit from your business, and you definitely want to be your own boss.

Are you still finding it a challenge to sketch perfect small business ideas? Well, let us have a look at some of the most rewarding businesses of 2018.


Idea #1

Mobile Businesses

In today’s smart world, mobile app development industry is one of the top most industries earning a huge profit every year. Here we are not only talking about offering smartphones but also we are focusing on businesses which offer services and products to their customers at their doorstep.

With every passing day, we are getting used to acquiring services easily and conveniently, and a business which does that are at the top priority list of the customers. So if you are interested in mobile businesses, here are some of the ideas for it that can offer definite results.

Auto repair, car wash service, food trucks, electronic repair, IT support, personal trainers are some of the unique yet rewarding mobile service ideas for starting a new business. All of these are a necessity to the owners and offering doorstep service can help your business earn great on ROI. Now you can also get small business loans to secure your funding needs.

Idea #2

Child Oriented Businesses:

Well, something related to children is never going to see a reduction. Since people across the world are busy in their lives, therefore businesses related to children will definitely observe a huge on ROI. For small business owners, this can be a great opportunity and idea to start one.

Let us see what child-oriented business can be a great choice for you:

Post pregnancy and newborn services, enrichment activities, child entertainment service are some of the most rewarding ideas for people. As a small business owner, you definitely will never want to invest a huge, whereas you would want to keep it affordable and then earn profit from it. These child services can be an excellent go for making a kick start.

Idea #3

Online Education:

If you have the knowledge and want to share it with the world, then nothing like online education can be a great choice. In recent times, it can be observed that online business owners are earning huge bucks by offering online courses via different platforms.

The overhead expenditure is almost negligible in comparison to the profit earned. So, if you want to earn profit from your business, use your knowledge as a medium. You can offer academic courses, business courses, language courses, personal wellness online training and earn from your business.

Idea #4

Sharing Economy

Economic necessity, environmental concerns or simply human connection can be a great idea as a small business opportunity. In the last few years, this has probably become one of the easiest ways to start a business. The growth opportunity is huge, which makes it a great choice for starting a small business.

sharing economy

You might have an idea that will become the next Uber, but starting from a simple one can be a great choice. Starting with a sharing economy on a small scale will take less investment but can help you to understand whether the business is going to see profit in the coming days or not.

Some of the most popular sharing economy businesses that have observed huge profit include Attire and accessories, home decorative equipment and vacation rentals. People rent your stuff for a few days and pay the amount you ask from them against the belongings. This does not require huge investment while can offer immense profit from sharing.

Idea #5

Freelance Services

After bouncing back from the big recession, small businesses are finding ways to run their business in a seamless manner. But due to huge overhead expenditure, more and more business are hesitating to hire full-time employees.

This is the reason why freelance professionals are much in demand. Not only because they work like the same way, but also because the overhead cost is much lesser than a fulltime employee. So if you have the skill that business can get benefitted from, it is better to opt for offering freelance services to the clients.

freelance services

You can offer freelance consulting, graphic design, social media management, virtual assistant service, marketing copywriter and other digital marketing service. If you have the knowledge, you can get your client and become your own boss. As an employer, you don’t have to go for long-term commitment and as an employee; you can work from home without facing the managers ever day.

If you want to dominate the market, you need to have a good idea for businesses. Since the market is full of competition, you need to have an idea that is out of the box along with that will become convenient for the people. Moreover, it requires enough funding which can be managed from Small Business Funding offered by different agencies. From the many ideas that are ruling the market, here are the top 5 most rewarding business ideas to start your business.

So don’t keep your passion underneath your necessity. Find an idea from these and let your dreams transform into reality.