Rossel, Author at Topics on Earth

Archive for Rossel

Rossel | June 19, 2013

Financing a New Business: How to Go About It

Financing a new business, whether it is for a start up, for expansion or for keeping it together through rough times, is always a difficult task. Given the present economic state, getting funds for businesses have become even more challenging, yet you should not lose hope. Your business success highly depends on your perseverance in finding a suitable finance solution for your needs. Here are some tips to help you find a solution for your financing needs.

Liquidate your Assets

Based on recent business statistics, more than 50% of business owners start-up their businesses with money from their own pockets. If your savings or checking account is still not enough but you’re so ready to start, use your other assets to finance a new business. Sell valuables and other pricey items you no longer need. You may auction your antiques, jewelries or the car you do not use. Instead of allowing them to collect dust and deteriorate, you’d get additional cash and people who will appreciate your items even more. Check out your life insurance, you can actually borrow up to 90% of its cash value for very low interest rates too.

Attract Investors

Investors can be heaven sent when you are struggling to kick start and find a way to finance a new business. To get some people interested, you have to prepare a good sales plan, marketing analysis and market assessment for your new business. You must be able to show a high level of expertise and a holistic approach on the market you want to approach. Also, be prepared to give up partial control or ownership when accept investors.

Apply for Loans

One time-tested of method of financing a new business is to apply for a loan. Still, not all business owners are approved on their loan applications. So if you’re considering this option, gather all the help you can get – consult with business lending and finance specialist to help you get better chances of approval for your loan.

Raise Money the Old School Way

Turning to your family and friends in financing a new business is a common, old-school method of raising money. When you resort to this, consider the possibility of jeopardizing your personal relationships with some of them. You have to present a formal financial projections and assessment to reassure them that they will get their money back. It also shows them that you are serious about the business and that you are taking them seriously as well.

Image Credit:
Worradmu – FreeDigitalPhotos.Net

Rossel | June 19, 2013

No comments

Chemical Merger and Acquisition Help

Companies undergoing a merger and acquisition can benefit from the expertise of an advisory firm, especially if the merged or acquired entity is in a different industry altogether. If your organization is undergoing a merger or acquisition involving a company in the chemical industry, then the Valence Group is one such firm that can help make the transition as smooth and effective as possible.

If your company is undergoing a chemical merger and acquisition then you would benefit from the Valence Group’s services. The Valence Group is unique because they have both extensive global M&A experience as well as an intricate knowledge of the chemical industry. Their transaction experience includes sell-side, buy-side, joint venture, LBOs, public offers, management buyouts, private companies, corporate carve-outs, and fairness of opinions. They have offices in New York, Shanghai, and London, making them a company with a truly global focus.

One unique and helpful feature of the Valence Group website is the Valence Global Chemical Index (VGCI). This is Valence Group’s indices of about 250 public chemical and materials companies which are “structured along 33 product and functional sectors or company classifications.” You can compare the performance of sub-sector indices, which include additives and adhesives and sealants, against the VGCI indices. It is good to know that a company never has to navigate a chemical M&A alone. For ten years Valence group has helped companies all over the world efficiently complete chemical mergers and acquisitions. Their services should prove valuable to any company undergoing such a transition.

Image Credit:
Adamr – FreeDigitalPhotos.Net

Category: business | Tags: acquisition, chemical mergers and acquisitions, merger

Rossel | June 13, 2013

No comments

Practical Benefits of Invoice Factoring

Businesses rely on good sales and customer satisfaction to flourish. But for businesses have customers who have delayed payments, some financial issues are bound to arise. As a business owner, you wouldn’t want to lose your customer and gain potential ones just because of these delayed payments. But you too, wouldn’t want to experience a cash crunch because you have a hindered cash flow on your accounts receivables.

Invoice factoring services is one of the most effective financial tools that aids small and new business owners who are experiencing delayed cash flow. It is very simple to avail of this service and you don’t have to sacrifice a lot to save your business. When you apply for an invoice factoring service, you can get hold of cash that you can use as additional capital or roll-over money for your business in less than 24 hours. You are not applying for a loan or debts of any sort when you apply for invoice factoring, you don’t have to present collateral. All that is involved here is your accounts receivable. Factoring is actually purchasing your accounts receivable less a percentage of its real amount. Invoice factoring can clean and organize your spreadsheet and make your business even more credit worthy.

When you seek an invoice factoring company, you will work with a team of professionals to provide ongoing counseling and find solutions for your problems. These people will also assist you increase productivity, capitalize new opportunities, and lessen accounting costs and others. You’d have better grasp of when your cash is coming in and schedule your deadline and payroll accordingly.

Many business owners run the risk of selling their hard earned equities and resort to loans and debts with their personal properties as collateral just the meet financial obligations for their businesses. This can be avoided when you know who to play your cards well. There are many invoice factoring companies that you can apply for to help you with your business. But while it increases your potential for profit and provides continues cash flow for your business, you should also consider the limitations you will experience when you are bound by restrictive contracts and notice periods that comes with invoice factoring services. There are some businesses that become entirely dependent on factoring company when it comes to efficiently and timely invoice collection. Considering these, the advantages of invoice factoring still weigh even more than the risks it entails.

Image Credit:
Stuart Miles – FreeDigitalPhotos.Net

Category: business | Tags: business invoice factoring, invoice, invoice factoring

Rossel | June 13, 2013

No comments

Understanding Construction Loans

Planning to construct a building on your property? Whether it’s a home or a building with hundreds of floors, you will need huge fund to start it up. Construction loans, also known as story loans are those that are used for these kinds of projects. Lenders know the story behind your planned construction and will primarily look into your income resources to ensure that you can pay the monthly payment of the loan you are applying for. When you apply for a construction loan, the lender’s fundamental guideline for approval is whether the property will be drawing in income once it is completed. They will request for an appraisal and attempt at the forecast of the income that your property will generate to see whether this will be enough to pay for your loan.

Many developers seek construction loans when they are a looking to build structures, offices, real estate properties and sell it out immediately after completion. You have to understand that this kind of loan is only for short term and comes with variable rates. Finance companies offering construction loans will charge interests based on the amount of money disbursed to date on different stages of construction. For commercial real estate however, construction loan’s short term rate is usually replaced by a long term loan with reduced interest rates two years after the loan was initiated. Many homeowners utilize construction loans to kick start their purchase of a home then proceed with a permanent financing program to convert it into a mortgage loan after they are issued a certificate of occupancy.

Construction loans’ basic features include short term and adjustable rates. Some can get a lock in interest rate for 6-12 months. This type of loan gets easy financing approval on projects that are strong and with a proven stream of income. Several years ago, you can easily get a construction loan because they are big businesses. But because of recent changes in credit trends as well as financial risks involve, lending institutions now require a stronger package for you the funding to push through. Prepare a pro forma of the project including the income and expenses on at least three years after project completion. Present assumption of pre-lease agreements and make sure that it is not more than 75% pre-leased before you begin the construction. Provide prospective lenders with complete blue prints, specification and times lines so that you can get better chances for construction loan approval.

Image Credit:
DDPAVUMBA – FreeDigitalPhotos.Net