Risk Factors of Small Business Loans: Solutions to Reduce Risk

Financing is the act of funding a business activity that hopefully will lead to profit. That is the book definition written down by students or people that never had the pleasure of running their own business. For those who have gone through the ordeal however, financing might take on a completely new different meaning. 

When someone talks about financing a business, what usually springs to mind is the foundation of startups. That is not true since businesses regularly seek financing. The problem occurs when there is difficulty in finding sources of finance.

The credit crunch in 2008 was more than a revelation for many entrepreneurs. Most of us never thought about the risk factors in small business loans. Small businesses account for the majority of new jobs being made in America and is to credit for 58% of its employment. It’s funny how the majority of the population has no clue as to what happens in the back end process of small business financing. For starters, let’s look at some of the risks an entrepreneur would have to involve himself with to finance his idea or company.

Personal Money

When a business owner wants to start something, his first action is to reach down his pocket. Ironically, if the funds aren’t enough, which in most cases is the case, this is also the first factor that banks would consider. Banks need to know how much of your personal money you are willing to hang on the balance to factor in the amount of loan would they approve you for.

Unfortunately, when the business initiative you’ve financed flounders, it’s not only the loan amount that will get lost, but also your personal savings you initially laid out for the groundwork. 

Collateral

Collateral may be in the form of a house, a car, an equipment, real estate or anything that the lender may find of value to guarantee the repayment for a loan. All is well when you’re able to repay as planned, but when you’re trying to make ends meet the collateral is in danger of being possessed by the lender as repayment. 

Credit Score

We all want our credit score to be untarnished. Sadly, a good credit score is the first thing to go when you fail to make payments on time with your lenders. 

Some Effective Solutions to Lower the Risks

Create a Budget That Includes All Incomes and Expenses –to avoid failing on payments, always know where your money is going. Great entrepreneurs are often described having this trait. This is true no matter how incredible their net worth has become.

Start a Savings Meant for Setbacks – I’m sure you can set aside some part of your business’ income as an emergency fund. This works on all business scales. You’ll definitely have to afford it, because what you will not be able to afford is when your small business loans go on default.

Loans from Family and Friends –Although loans from loved ones are usually filled with benefits, this should be the last resort as it might destroy your relationships.

Author Bio:

Paydayloan.co.uk is the online lending company to go to when confronted by a brick wall. We grant people access to quick cash the moment they need it. For further information on our services.

How to Manage eCommerce Inventory Across Different Platforms

The inventory of any ecommerce business is its lifeblood. Without a fully stocked and varied inventory, no retail business can succeed. Managing your inventory properly can be tricky even if you only have a single store location. However, tracking and measuring your stock becomes drastically more difficult when you expand your brand across multiple storefronts. Each new order must be tallied against your combined stock or you will quickly lose track of your information and the fulfillment steps. There are numerous techniques available to ecommerce owners and managers that want to integrate multiple platforms in one system.

Stick to Compatible Platforms

Many ecommerce systems allow you to open separate storefronts and manage the inventory seamlessly between them all. However, this won't give you the benefit of using the existing customer base of many well-established platforms. Amazon Services says that a company can open a number of different stores and control the inventory through a single management account. This works well for some businesses but does limit your ability to expand later down the road. It can be useful if one platform has a wide enough consumer base to support all of your stores.

Inventory Management

Designers have developed a range of helpful software solutions for tracking inventory. Some rely on hand held item scanners used in the warehouse, while others allow you to manually enter each item that leaves your stock. Shopify says that these systems are essential if your ecommerce business grows beyond the occasional sale. Tracking and managing a complex inventory is extremely time consuming if you don't have help from a powerful software solution. These programs can automatically stop orders when a product runs out. Others include automatic re-ordering that can be switched on and off as needed to maintain a constant stream of new inventory.

Complete Management

Many systems designed to help you manage customer orders and fulfillment can also be used for inventory control. A completely integrated program often reduces mistakes made at every level. Each shipping or stocking mistake can cost you a lot of money. Investing in a fine-tuned order management system can keep your ecommerce business running smoothly, according to Ability Commerce. The best programs integrate seamlessly across all of the most popular platforms, including Amazon, eBay and privately hosted stores. Look for software that can support changes like holiday discounts or free shipping on qualifying purchases without requiring hours of hand coding.

An ecommerce business can start as a small and simple eBay store and grow into a massive network that sells products to customers around the globe. If you want to find true success in the world of online sales, you must start with a system that will allow you to grow. Choose a scalable solution to begin with. This will allow you to avoid a lot of difficulty and downtime in the future. You won't need to completely renovate your platform and install new systems if you go from one order a week to one thousand orders a day.

Ted Hosford has been a business software consultant for more than 10 years and enjoys sharing his knowledge via blogging. Visit ordoro.com for dropshipping software solutions that could help your business.

Related articles

• Business Invoicing Made Easy With Online Software (50plusfinance.com)
• Personal Money Management: How to Save More Money Easily (50plusfinance.com)

Job Hunting When You're Over Fifty

Employment Exhibition (Photo credit: Modern_Language_Center)

Although facing joblessness at any age is a challenge, seniors appear to be one of the groups hardest hit by the unemployment crisis. A government report has shown that 55% of jobless seniors had been out of work for six months or more, and many will dip into their savings or retirement funds in order to survive during this time. Although employers can't discriminate against you based on age, there are a few things you should keep in mind when it comes to searching for a new role.

Consider part-time

You may be used to working a nine to five routine, but if it's a choice between having reduced hours or no hours, going part-time is certainly something to consider. With companies facing budget cuts, many of them are looking for skilled workers but may only be able to offer you part-time hours or a short-term contract. However, there are advantages to this kind of arrangement. Firstly, it means you can spend your spare time looking for something more permanent, or even doing some study to refresh your skills. It also means you'll avoid the dreaded resume gap which employers can find off-putting, meaning your situation is less likely to be long-term. Also, you should consider the impact on your finances. Working shorter hours means you might not be able to keep putting money away for retirement, but it also means you're less likely to dip into your savings to cover everyday expenses. Staying employed is also important for older people who aren't yet eligible for Medicare, as you will need to consider the impact that unemployment will have on your healthcare plan.

Staying open minded

Many seniors who find themselves out of work have much to offer an employer, and many of the older generation worked for years at the same company. However, you may find that your old career has become very competitive, is obsolete, or nobody is hiring for the roles anymore. It may be time to consider different jobs in your field, and what transferable skills you have. Despite high unemployment, there are many jobs that are still in demand, and you may already have the qualifications and experience required for them. For example, many older workers often go into teaching or training the next generation, and with your years of experience you could be an excellent mentor. If your change in career involves a pay cut, then see a financial adviser about your options. It may be the right time to downsize your lifestyle, look at semi-retirement, or even do some consulting work to top-up your income. You may not be keen on the idea of taking a less prestigious job, but it can often work out well in the long-term.

Using your contacts

If you've worked in your field for the past few decades, then you've probably built up a list of contacts that a recent graduate would kill for. Don't be afraid to use them, and make sure you put the feelers out as soon as you face unemployment. Although your contacts might not know of any positions now, something could come up in the near future. Waiting until you're out of work to start job hunting means that you could be facing a longer stretch of joblessness, putting a strain on your finances. Although your contacts are unlikely to have an amazing permanent position waiting for you, they may have some contract or consultancy work available, and your years of building up contacts could certainly lead to something exciting.

Have a positive attitude

One of the most important things for seniors to do when job hunting is to have a positive attitude about the changes in their life. You may have thought you'd be with your old company forever and perhaps be mourning your old job, but change is often good for people, and this is the time to look at things like finances as you start anew. Many senior workers get disgruntled when faced with the prospect of working under less experienced people, but try not to despair. You may enjoy working in a less stressful environment as you age, and you might find yourself with more spare time for family and hobbies. Keeping a positive attitude means that you'll find it easier to try new things and be open to new experiences, hopefully minimizing the time you spend out of work.

Being an older job seeker doesn't mean you're on the scrap heap. Although you may find it a struggle to match the job you had before, it might be a good time to try new things and see where life takes you. With the right financial advice, you can explore a range of options, and decide what's best for you and your family's future.

Related articles

• How To Motivate Your Employees (50plusfinance.com)
• How Best to Manage Your Bank Account Through Retirement (50plusfinance.com)
• Unemployment Figures: A Spur To Buying (savealittlemoney.com)

4 Neat Ways to Find Coupons Online

Image via CrunchBase

The internet has been an answered prayer for many people, maybe for bargain hunters the most of all. Indeed, the newest and hottest trend in internet marketing and business building is the introduction of online coupons. Coupon hunting has now pretty much become a part of life: everyone is out for a deal, and will not settle into they find the right one. There are a myriad of ways in which you can go about finding the greatest deals and the best coupons on the internet. In some ways, it does quite a bit of skill and luck, but in other ways it is quite simple. Here are some of the neatest ways to find coupons online:

1. Go Online

It has pretty much become the first thing any consumer should do before they intend to buy just about anything. Going online to find out if what you want is on sale somewhere or if there is a factory coupon available is a great way to save money and get the best deal possible. So, the first thing any bargain hunter should do is scope out what is available online first.

2. Go Paperless

Many stores these days offer the option of having coupons sent directly to your smart phone. This is a great way to keep track of coupons and get great deals by barely having to do any searching for them. All you usually have to do is sign-up in the store or online, and that’s that: simple.

3. iPhone Apps

There are hundreds of iPhone apps that will find coupons for you and send them right to your mobile device. All you have to do is log on and search through your local database for the best deals for you.

Best Sites For Online Coupon Searching

Groupon: This site is great for anyone that is interested in group deal discounts for local restaurants, bars, music venues and other destinations.

Tippr: Tippr is similar to Groupon, but is much more aggressive and guarantees customers a discount of anything from 50% to 90%, which is more than most competitors can offer.

Retail Me Not: This site offers customer reviews of which coupons they liked the best. It is a great way to find coupons that you may not have thought of or searched for before. This site is definitely for the adventuresome bargain hunters out there.

      

Best Apps For Online Coupons

Yowza: This iPhone app is one of the best for finding the best deals and coupons in   your local area.

Coupon Sherpa: Another great option for finding coupons in your area. These sites work as conglomerating sites that take deals from other sites and promote them on theirs..

Randy K. is a freelance writer for a host of community newspapers, educational web sites, lifestyle magazines and food blogs. When he is not reading or eating he is scouring the internet for the best deals on local restaurants, music venues and bars. He also tends to run up money on his credit card in the process. Click here to find out more about credit card abcs.

An Overview on Luxury Real Estate Development

 (Photo credit: nancyarora2020)

Real Estate Development

Real estate development refers to many actions. These actions include buying and selling of land, construction and leasing of buildings, etc. It is a high financial business and is fast growing too. The developers buy the land and complete the deal, while the building work is given to a construction company. The land with potential for development is selected and bought. The project on the land is decided by the developers in addition to the work relating to completing the project like getting the government sanctions and other facilities. The real estate development projects include commercial buildings, apartments, IT companies and residential buildings. So, with real estate development a raw land is turned into residential or commercial projects. 

Real Estate Developers

Real estate developers are professionals who specialize in the process of buying real estate, doing modifications to the buildings, and in the construction of new buildings and their selling. They research market trends on the price variation in the real estate sector. They need to be up-to-date on the recent price trends and market values. The aim is to buy when the market prices are low and sell when they are high. 

Luxury Real Estate

Luxury real estate differs from ordinary real estate. In luxury real estates, the factors which determine the luxury are the property value, and other facilities like a pool and proximity to schools, hospitals and stores. The inside customization and architecture also determines a luxury real estate. The luxury real estate development is more difficult and challenging than ordinary real estate. The real estate properties are built according to the needs and desires of the buyer, and the facilities like waterfront or balcony are considered important. The avoidance from rush and noise of city and living in a silent peaceful place are considered a luxury. The buyers of a luxury real estate don’t belong to the local community. They come from other parts of the country, so the reach is more than ordinary real estates where the buyers are all local. Most of the companies have their own magazines showing the buildings for sale. It helps in advertising their company projects and in getting potential clients interested in investing. 

Process of Development

The luxury real estate development contains many steps from the development of an idea to the buying and selling of a constructed project. The first and foremost step is to find a raw land available for purchase, which possesses the probability for a good development. The land selected should have availability of water, electricity and roadways. Then, the planning as to the luxury factors and the necessities for the building are discussed, and the costs including the profit for the developer is found out. The developer needs to be convinced of the cost and expenditure for the completion of the project. Once it is found profitable, the land is purchased and the necessary approvals for construction activities are taken. The approvals are done on the basis that the construction sticks to the planning and development regulations. Luxury real estate development need more approvals, and need to satisfy more conditions. Once the architecture and the luxury with the building are discussed, they are implemented in the plan and drawings. The client is shown at this stage how the project looks and the luxury factors implemented in it. Then, it is given to a construction company and the work starts. Most of the developers have talks with their clients before starting the project. In case of luxury homes the client talk is necessary as the luxury aspects of the property need to be up to the clients’ needs and desires.

Author’s note

Sam, who works in the real estate development sector at http://www.parinee.com/ , says the luxury real estate development is sought out by many people who prefer a silent place without the rush of the cities. The waterfront views are more preferred by clients and the scenic beauty adds to the flavor of the building.

Related articles

• Real Estate In A Thriving Port (50plusfinance.com)
• Property Investment in Today's Economy (50plusfinance.com)
• When To Use a Real Estate Agent (50plusfinance.com)
• Maximizing Renovation Bucks: Where to Invest (50plusfinance.com)

Five Options for People Looking to Finance Their Small Business

Even the smallest of the small businesses needs some sort of investment to set off and succeed. The Internet might be a low-cost medium, but even an online business requires sufficient funds for marketing and search engine optimization purposes. Many entrepreneurs with brilliant ideas fail to launch a business.  Even those who do, never manage to realize its true potential because they don’t have the capital to invest. Money makes money, which means you need to have some money in order to make more money.

If you are one of those entrepreneurs with a great business plan, and waiting for the right time when you will have the funds or capital to invest, then you should stop waiting and go for one of the following options to get the capital to launch your company right away:

Bank loan

Banks are of course the first resort for small businesses looking for a loan. The only problem is they are less likely to lend money for a start-up, as compared to an established enterprise. Still, you can visit different banks and discuss your requirements. 

Friends & Families

If you are looking to start a small business online, you usually will need significantly less amount of money as compared to starting a brick and mortar store. Searching out conventional loans from banks or venture capitalists sometimes is not necessary, especially if you’ve got someone affluent enough in your friend or family circle to invest. The biggest advantage is the convenience, as they will be lending the money on much easier conditions when compared to a bank or angel investors. 

Angel Investors & Venture Capitalist

If you have the kind of idea or a prototype that you can sell to some of those “angel investors” or venture capitalist firms, you might be able to raise a big amount of money for your company, except that you will have a little less control on your business. They will be lending on tough conditions, but that’s the only way to find investment for a high risk start-up with lots of potential. You will have to do a lot of convincing though, since venture capitalists or angel investors are business savvy people who won’t put their money in a half-baked business plan. 

Partnership

If you are looking to start a small business and you have got some savings to invest, but you’d like to have some more financing or someone else to share the risk, you can always look for a partner. There are different types of business partnerships, for example, general partnership or limited liability partnership. In case you are getting into a partnership, remember to discuss and include everything in the agreement, because partnerships can result in misunderstandings and disputes. 

Government Funding

There are many government funded programs and grants for small businesses in different parts of the world, especially in particular sectors like IT or agriculture (depending on the government policies). You can always check with your local small business authorities, and see if there’s a financing program available. 

Bio:

Natasha Mesty is a business and finance student. Starting your own business requires lots of planning and hard work in the beginning, but this planning and hard work can pay off in spades once your company starts to earn.  

Related articles

• 5 Different Alternatives to Venture Capital (50plusfinance.com)
• How to Finance a New Vending Machine Business? (savealittlemoney.com)
• The Basics of Small Business Loans (50plusfinance.com)
• Lending Club Review - Person To Person Lending Networks (50plusfinance.com)