Invoice Factoring is your Business Solution

January 24th, 2012 by iamronnietaylor | Comments Off | Filed in general

Invoice finance companies are quickly becoming a solution for many companies which are suffering in these economic times. Granted the economy is on its way to getting better, but one little thing can have it heading back into the difficult zone. We are teetering on a precipice if you want to look at it through an analogy. Since most companies are involved in the financial cycle it means when one thing starts to fall it eventually affects others.

The subprime mortgage market is a good example of this. In the banking industry many loans became defaulted. It meant that the banks started failing and thus there was not enough money to help out other businesses which were at the beginnings of trouble. Banks started loaning money and therefore people who needed it either needed a different product or they had to close.

If you are still suffering from the financial cycle that is on the mend but definitely not as strong yet then consider invoice factoring. It is one option you have to help improve your cash flow situation. It is not a magic answer. There are advantages and disadvantages to the concept; however, you may find it has more advantages for your business and its current situation than it does disadvantages.

To be more explicit, with invoice finance companies you will sell them your ledger of open invoices. They will provide you with at least 85 per cent of the amount the invoices are for. They keep 15 per cent as their fee. You have a fee to set up the concept and some companies may charge interest too. The point is you obtain funds that can be of help to you. These funds can be used how you see fit, but for the best advantage it should be in a way that will not harm the company.

In other words, if your clients do not pay their open invoices you will have to pay the money back to the finance company. If you spend the funds on unnecessary items, which do not help you grow your cash flow it can be an issue. No matter what you do in business you should make certain it will grow your cash flow without getting you further into debt. Let factoring work for you by helping you increase your cash, but not so much as to get into debt with yet another company.

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Setting Up a New Business After Chapter 7 Bankruptcy

January 17th, 2012 by Anya Bennett | Comments Off | Filed in general

As a business owner you may want to file for bankruptcy if you are drowned in a sea of credit problems, and there is no way out. But before you take your final decision, consider consulting anon profit debt relief agency to to settle debt on credit card. A large number of such debt relief agencies across the country provide credit counseling, debt management programs and alternatives to debt consolidation – without a loan or bankruptcy.

What is chapter 7 bankruptcy and how it affects your business?

Oak view law group

Chapter 7 bankruptcy is the most common type of bankruptcy filing and is also known as liquidation – converting assets into money. If a debtor files for chapter 7 bankruptcy, all his non-exempt property is sold and the proceeds of the same are distributed to the creditors. Most debts would be discharged within months of filing a bankruptcy petition. This is also one of the faster way of starting your business afresh. The court not only appoints a trustee but also creates a “bankruptcy estate”. Mostly, a chapter 7 trustee is responsible for selling the assets and distributing the proceeds to the creditors, after paying off the administrative and legal expenses. But practically, after bankruptcy, the business is over. However, life gives you a second chance. After bankruptcy, you can always start a new business and even your existing business can take a new turn. Although the new business may operate under the same name as the previous one, it is a better idea to start afresh with a new identity. This will prevent any negative credit information from hampering your new business.

Opening a new business after bankruptcy

Bankruptcy remains on an individual’s credit report from 7 to 10 years. Getting a loan during this time frame might be difficult but not impossible. Generally, all business loans need a personal guarantee from an officer of the business. The credit rating of a person is used as the basis for approval or rejection of a business loan. Following are a few tips to get a business loan after bankruptcy:

  • Accounts Receivable Loans

In order to survive each and every business has to have some income. They offer terms to clients whereby they purchase a product but pay for it nearly 90 days later. This delayed income is called accounts receivable. These loans are based on the income of a business and so, a business owner’s personal credit is not taken into consideration.

  • Equipment loans

In a business that sells a product, there is equipment that is used in the production of that product. This equipment is generally highly customized for the business and may cost millions of dollars. If a business owner has filed for bankruptcy he can use this equipment as collateral for the loan to the new business. The basis for the loan will be the value of the equipment and not the business owner’s credit status.

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Stop House Repossession

November 16th, 2009 by Ryan | Comments Off | Filed in foreclosure

It’s really sad that due to the tough financial crisis, many Americans are facing house repossession. Though there are a lot of options to stop repossession, this misfortune is still becoming more popular among debtors because of failure to meet their payment obligations.

Debtors point out the blame to recession and the economy’s unstable condition, but the real problem is financial mishandling. When one owes something, credit should always be treated as credit; money owed that needs to be repaid. Because of neglect of proper payment responsibilities, bills turn out to be past dues, interest rate bloats up and bills inflates like a balloon! When payables exceed ones paying capacity, it will give birth to the devastating threat of house repossession!

If lending companies inform you that your home is up for repossession, don’t even try to evade confrontation. If you are thinking that avoiding them will cause those lending companies to go away, you are picking a big stone to crack your head open! Avoiding them will not do you any good; in fact you may end up roaming around town homeless!

House repossession is absolutely a great deal for home owners. Of course, nobody would invest so much to buy their dream house just to be repossessed! This problem can be treated with financial planning and discipline.

Usually banks inform their clients through phone calls or emails to notify debtors that due to non payment, their house is now up for repossession. Initial notice will serve as a warning that without payment, these debtors are going to lose their homes. If you have received such warning, act quickly! Talk to the bank right away because they will surely offer you a repayment extension so you can plan your actions on how to save your property.

Don’t get struck with panic! Yes you may lose your home, but you can definitely save if you know what to do! Ask for legal help or borrow money from friends or family to help you save your home. If you have other properties to sell or mortgage, then do so. Once you are given the payment extension, look for a stable source of income so you can pay the bills.

Do whatever you can to save your home. Banks are most likely to give you some time to pay your debts because they are a lot more interested in monetary payments than they are interested to properties, so take the opportunity to secure financial support. Don’t consider filing for bankruptcy yet because this is not the best choice, though it may be considered as a last resort. If worse comes to worst that you need to file for bankruptcy, think wisely, because doing so will really hurt your credit score and rebuilding a good record will take years to get it back to shape.

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How To Prevent Foreclosure

November 16th, 2009 by Ryan | Comments Off | Filed in foreclosure

Being in the position losing your home due to non payment of obligations is such a drag! Banks asking for the money you owed them is just so frustrating especially if things aren’t going well wit your financial capacity.

When things are messed out with your finances, it is always easy to consider filing for bankruptcy to help get out of your insolvency.  Though this is a good option, it is always not that easy because you have to prove that your financial incapacity is not your fault. Sure you can try and blame it on the economic status but if you cannot prove that you really are a victim of the dropping economy then getting the support of the government through bankruptcy is not possible.

Having your precious home foreclosed could be as painful as losing a loved one through death. You lose your home as you watch your years of huge investment turn into nothing but diminished dream.

Okay, enough of the sad story. Yes you can lose your home… only if you do not know what to do save it. Are you asking me if there is a way to avoid foreclosure? Of there is a way! You can always prevent foreclosure but it will require enormous amount of exerted effort!

I have listed helpful tips to aid you in preventing foreclosure of your beloved home. Please read on.

Never ignore your creditor! Don’t even think that if you’ll ignore them they’ll go away because they won’t! They will continuously bother you to pay them what you owed and if you’ll continue to avoid them, you’ll end up defending yourself in court and believe me things will not look good for you!

If you will continuously ignore calls, letters or e-mails from your lenders, you will surely give the world the impression that you are not a meter closer to being called a responsible debt payer and therefore the court will never side on you during proceedings. You’ll even end up loosing your home together with other assets to pay for what you owed.

Talk with your bank or your lender, ask them for possible solutions to help you get out of the financial mess you’re in and help you prevent foreclosure of your properties. This strategy will definitely work because the banks are only interested with cash payments (your money) and not your home; it takes time to sell a property so banks prefer cash. Ask them for extension and try to set a longer payment agreement.

Take a look at your mortgage documents, there is always something that is written about your rights on how you can prevent foreclosure of properties when the unavoidable circumstance may happen.

You always have a chance to prevent foreclosure even if it has already started. In fact, even if it has already began, sincere communication (definitely not intimidating) with your bank will surely save your home. Ask them for payment extensions or if agreements will not turn out that good, ask your bank to let you resell your home to another person so you can sell it in a higher price , pay the bank what you owe and still have something to start over again.

Remember there are lots of options to settle your debts. Don’t allow yourself to lose your home because you can always prevent foreclosure. Investing in learning materials about how you can protect your property and manage your debt obligations is always a great choice. The internet is a good source of this needed information so surf the web!

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Types of Bankruptcy

November 16th, 2009 by Ryan | Comments Off | Filed in types of bankruptcy

Declaring bankruptcy may sound so easy and tempting considering the fact that the government will give you pardon (or something like that) for your debts, but you have to remember that no one will lend you a hand that quickly because a great amount of money is involved; definitely not the government!

There are different types of bankruptcy to apply for (actually, these types are also called chapters). Depending on what situation you are in, filing for bankruptcy will always provide you financial help.

Do not mistake this financial help for charity though, because the government will conduct a background investigation if you really are in need of this kind of assistance or not. Once the government found out that you are lying in any way to hide your assets, transfer your money to your friends or family, is still employed but declared yourself to be unemployed or intentionally concealed inheritance, business or any source of possible income, things will really go ugly and your chance of having the government on your side to help you will turn the other way around!

The merciful process of filing for bankruptcy is an angel for individuals or companies that no longer have the financial ability to pay for the bills they owe. In order for people in need of financial assistance to survive despite the fact of financial insolvency, the government will offer types of bankruptcy to opt for.  Whether it’s temporary or permanent, the government will always offer a hand to lure someone out of insolvency.

Here are the three (3) types of bankruptcy that is commonly applied for by firms and individuals:

Chapter 7 is the most commonly applied for and is also called “straight bankruptcy”. In this case, the debtor’s assets are sold to pay the creditors. In filing this type of bankruptcy, some of the debts will be eliminated so the original debt will no longer be paid in full as ordered by the government. Because of this scenario, a debtor who files for bankruptcy will face difficulties in applying for a new line of credit in a couple of years after filing.

Chapter 13 is debt restructuring exclusively for individuals. Here, debts are not paid off; instead a payment plan is being set to allow the debtor to pay his debt in the most convenient way as far as his budget is concerned. Payment plan can last from 3 years to five years of repayment provided that certain criteria are met.

Chapter 11 is almost similar to Chapter 13 only that this type of bankruptcy offers assistance to companies and corporations who are facing insolvency (not only limited to individuals). This type of bankruptcy can be filed whenever it is necessary provided that there should be monthly instalment payments as agreed with the creditor.

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