Small Business Financing Goes Into Intensive Care

An earlier article noted that business financing is effectively on life support based on recent reports of reduced business loans made by banks throughout the country. There are several reasons why intensive care comparisons might help to explain what is wrong with working capital financing and at the same time provide a healthy prognosis for impacted businesses. Because commercial financing is proving to be a serious challenge for most small business owners, this analysis should be reviewed by any borrower about to obtain or refinance commercial loans.

During the past two years, banks have lost much credibility and good will. Until the federal government provided massive bailouts for many of them, most of these lenders were on life support themselves. While some of the banks have recovered, others are effectively still in the intensive care process. But whether we are reviewing the healthy banks or ones still recovering, working capital financing for most small businesses is predominantly in what appears to be long-term intensive care. Banks are generally reducing or eliminating a large portion of their business financing activities, as indicated from most ongoing public and private reports. For example, with little or no advance notice, most banks appear to be closing commercial line of credit programs for small businesses regardless of profitability or length of the lending relationship. This is apparently not a temporary move to the sidelines but rather a permanent reallocation of resources to more profitable activities based on the manner in which this is being accomplished.

Lending activity has also decreased significantly for other forms of business financing such as commercial mortgage loans. Commercial loans have essentially been downsized or laid off just as many workers have. The realization that banks are rarely announcing publicly that these cutbacks have occurred is what makes this situation different. Perhaps bankers like to think that when they stop making small business loans nobody will notice. When it becomes public knowledge that their small business lending window is effectively closed, the bankers who placed commercial financing into intensive care are astute enough to realize that their public image will suffer even further damage.

Before they realize that the business financing world has changed before their eyes, it is possible that small business owners might need to connect several dots. As this article and other reviews indicate, banks are simply no longer providing the commercial loan services that they once did. Commercial borrowers should primarily rely on extensive candid discussions with other small business customers of the bank to confirm whether their bank is one of the few exceptions to this new reality. Even in the rare instances in which banks are truly lending “normally” to small businesses, the prevailing trend of less working capital financing coming from traditional banks should not be ignored.

While business financing patients (commercial borrowers) might be in serious condition when they find that their bank will not provide needed commercial loans, experienced small business finance specialists can frequently help in restoring financial health that will facilitate a business getting out of an intensive care situation. In some cases, this involves finding a healthy bank that is willing (and able) to provide “normal” commercial loans and working capital financing. For successful commercial funding it will be necessary to explore non-bank solutions in many other instances.

먹스탑은 먹튀검증 만이 아닌 토토사이트의 보안 안전 규모 메이저사이트 를 검증할수 있는 멀티 검증사이트 플렛폼입니다 토토 는 현재 흥행하고 있어 국내사이트에 수천개의 사이트가 생성되어 있으며 이의 반해 메이저급 사이트라 불리울수 있는 사이트는 아쉽게도 몇 안되는 숫자의 소수 사이트에 불과하며 대부분이 신생 사이트 등의 불안전한 사이트로 분류되고 있습니다 토토사이트

Business Finance Training and Effective Business Solutions

Business finance training refers to programs that teach individuals how to handle various financial duties. Finance training is similar to finance tips in that both help business owners make better monetary decisions, but training programs offer a more detailed explanation of finance strategies. Training programs vary in price and can be used by the owners and employees of a business.

The most basic business finance training provide information on budgeting, preparing financial statements, managing cash flow, strategizing, forecasting, improving performance, and applying basic procedures and concepts to more effectively manage a business. These programs are recommended for new business owners to help them understand standard business practices. Once these basic methods are mastered, more specific financial training may be looked into.

Advanced business finance training delves more deeply into a certain financial procedure or concept, usually at a higher cost than basic programs. Advanced programs may teach business owners how to set up effective business models, make decisions based on quantitative analysis, manage and control accounts, practice due diligence, measure productivity, and strategize concerning mergers and acquisitions.

Taking part in any kind of business finance training gives a business owner the resources to make more intelligent business decisions that result in increased productivity and profits. Many different types of courses are available either online or at a specified location. Some programs may even offer the option to train at the business. Taking into consideration the needs and abilities of a business is the key to finding the best business finance training.

A business finance solution generally refers to methods of funding and maintaining the finances of a business. Most solutions involve ways of obtaining working capital, but others also offer ways of protecting and increasing that capital.

To obtain working capital, business owners look to finance solutions that offer funding by several different means. The most common means are loans and financing. Asset-based loans use a business’s assets, such as inventory and equipment, as collateral. A business may also opt for a property loan in order to acquire commercial space. Invoice financing, such as factoring, involves liquidating or selling a business’s accounts receivables in exchange for quick funding. Some businesses look to trade financing to supply their inventory. The business will tell its financer the amount and cost of goods needed, and the financer will pay for the goods. The business then repays the amount financed over a specified period of time.

Most companies that provide business finance solutions also offer ways to protect and increase a business’s capital. Credit protection safeguards a business from daily risks, such as customers not paying on time, so that the business does not suffer incredible losses. This makes it much easier for the business to borrow money in the future, and it protects the balance sheet. A finance solution may also offer business insurance plans that increase the stability of a business. The most common types of business insurance are employee and public liability, car, property, and health insurance. These business finance solutions are designed to protect businesses against potential losses.

Top Signs That You Need Small Business Finance

It is easy to start a business. To keep it rolling and then grow is the tough part. As one goes along there will always be instances of cash crunch that prove to be roadblocks to further progress. Smart businessmen always keep lines of finances open so that they can take care of such situations. That is not the only reason to have a line of funding; growth and expansion are also equally viable reasons to have access to funds. There are signs that you need finance for small businesses.

Pay vendors and pay salaries

You are already running a business and your funds are committed. It depends on cash flows to keep it running. All of a sudden a customer may delay payment but you must meet your commitment to vendors and to employees. You may consider borrowing from friends or relatives but there is no guarantee they will be forthcoming. This is when you need small business finance from the right lender. There is nothing wrong in borrowing if one has receivables incoming but which are delayed for some reason or the other.

You secure a large order

Small businesses need large orders in order to make a big leap. If a businessman secures a large order the problem is how will he execute it? He needs to buy raw materials, processes it and supplies it. He needs funds to buy materials and then he must manage while the materials are processed and supplied. It takes time from when he invests to when he recovers the money. This is when small business finance comes in handy. He can process orders quickly and by satisfying customers he can expect even more orders.

Expansion

One may start small and as one grows one finds that the present circumstances stand in the way of growth. Equipment may not be capable of high production that the growing business requires. Premises may be too small and cramped. This is the right type to access finance for small business and expand production capability and move into larger premises. One can engage more staff. It is necessary to take this step and expand or just be left behind as customers cannot wait for orders to be executed and they are likely to shift their business elsewhere.

Promotions

A business may have a satisfactory number of clients but it must always engage in promotions, especially during some seasons. Promotions help keep the business visible and attract new customers and one can explore regular channels as well as others such as online. Periodic campaigns will net more customers and help the business sell its products in bulk. Obtaining finance for small business for these purposes will pay rich dividends.

How Commercial Lenders Went Wrong With Small Business Financing

Small business owners will be more likely to avoid serious future business finance problems with working capital management and commercial real estate loans by exploring what went wrong with business financing and commercial lending. This is not a hypothetical issue for most commercial borrowers, particularly if they need help with determining practical small business financing choices that are available to them. The bankers and banks responsible for the recent financial meltdown seem to be saying that even if anything actually went wrong, everything is fine now in the world of commercial lending. Nothing could be further from the truth. Commercial lenders made serious mistakes, and according to a popular phrase, if business lenders and business owners forget these mistakes, they are doomed to repeat them in the future.

Greed seems to be a common theme for several of the most serious business finance mistakes made by many lending institutions. Unsurprising negative results were produced by the attempt to produce quick profits and higher-than-normal returns. The bankers themselves seem to be the only ones surprised by the devastating losses that they produced. The largest small business lender in the United States (CIT Group) declared bankruptcy after two years of attempting to get someone else to pay for their mistakes. We are already seeing a record level of bank failures, and by most accounts many of the largest banks should have been allowed to fail but were instead supported by artificial government funding.

When making loans or buying securities such as those now referred to as toxic assets, there were many instances in which banks failed to look at cash flow. For some small business finance programs, a stated income commercial loan underwriting process was used in which commercial borrower tax returns were not even requested or reviewed. One of the most prominent business lenders aggressively using this approach was Lehman Brothers (which filed for bankruptcy due to a number of questionable financial dealings).

Bankers obsessed with generating quick profits frequently lost sight of a basic investment principle that asset valuations can decrease quickly and do not always increase. Many business loans were finalized in which the commercial borrower had little or no equity at risk. Banks invested almost nothing in cash (as little as three cents on the dollar) when buying future toxic assets. The apparent assumption was that if any downward fluctuation in value occurred, it would be a token three to five percent. In fact we have now seen many commercial real estate values decrease by 40 to 50 percent during the past two years. Commercial real estate is proving to be the next toxic asset on their balance sheets for the many banks which made the original commercial mortgages on such business properties. While there were huge government bailouts to banks which have toxic assets based on residential mortgages, it is not likely that banks will receive financial assistance to cover commercial real estate loan losses. As a result, a realistic expectation is that such commercial finance losses could produce serious problems for many banks and other lenders over the next several years. As noted in the following paragraph, many lenders have already drastically reduced their small business finance programs.

Inaccurate and misleading statements by commercial lenders about their lending activities for business finance programs to small business owners is an ongoing problem. Although banks have typically been reporting that they are lending normally with their small business financing, the actual results indicate something very different by any objective standard. It is obvious that lenders would rather not admit publicly that they are not lending normally because of the negative public relations impact this would cause. Business owners will need to be skeptical and cautious in their efforts to secure small business financing because of this particular issue alone.

There are practical and realistic small business finance solutions available to business owners in spite of the inappropriate commercial lending practices just described. The emphasis here is focusing on the problems rather than the solutions primarily because of the lingering notion by some that there are not significant current commercial lending problems. Despite contrary views from bankers and politicians, collectively most observers would agree that the multiple mistakes made by banks and other commercial lenders were serious and are likely to have long-lasting effects for commercial borrowers.

Online Display Advertising For Automotive Dealership Owners

Online display advertising provides a targeted and direct response approach that help to effectively target segment specific audiences and increase brand awareness. According to IAB Internet Advertising Revenue Report, the total Internet advertising revenue for 2009 was $22.7 billion. While online display advertising accounted for 35% or $ 8.0 billion of the total Internet advertising revenue for 2009. The automotive advertisers accounted for 11% or $2.5 billion of total Internet Advertising expenses in 2009. Thus, online display advertising that includes display banner ads, rich media, digital video, and sponsorship links can be effectively used by automotive dealers to target customers based on website context, geographic location, specific demographic information, and user behavior.

Advertisement Is Based On:
Advertisements based on demographic information, website context, and geographic location can help narrow down and pin point specific customer segment.

Website Context
Contextually relevant advertisements can help automotive dealers to better target the potential customers as they are willingly showing interest by viewing specific themed areas. Automotive dealers can effectively target those customers searching for new cars, pre-owned cars etc on Internet by positioning advertisement based on website context. Also, the website viewers are likely to respond positively or pay more attention to such theme related advertisements.

Buyer Geographic Location
Display advertisements based on user location allows automotive dealers to effectively target potential customers in local area, geographic region, or in any specific city. Delivering customized advertisements with proper relevance within a specific region or city generates interest, engages, and attracts potential customers.

Buyer Demographic Information
Display advertisements based on specific demographic information like industry, profession, age group, household income, gender etc can help automotive dealers effectively reach to a specific customer segment. Demographic advertisements informing about various offers, coupons etc given by automotive dealer can appeal to a variety of market segment. Display advertisements based on specific demographic information can help grab attention of key audiences and turn them into potential customers.

Advantages:
Online display advertising allows automotive dealers to reach a wider segment of customers in a limited advertising budget.

Increases Brand Awareness
Effectively employing online display advertising helps to create awareness about the automotive dealer that results in building a brand image in the long run. Positioning creative and relevant advertisements to specific segment help to effectively target potential customers, increase automotive dealer exposure, and increase online traffic leading to higher conversion rate. However, even if the customer does not click on ads, it increases brand awareness about dealer. As display advertising ensures that potential customers get to know about the services and inventory offered by automotive dealers, the next time these customers think of making a purchase, they can prefer and trust these dealers whom they can recall.

Effectively Target Customers
One of the key benefits of online display advertisements is that automotive dealers can effectively target potential customers within their advertisement budget. Display advertisements provide a better coverage and effective targeting of potential customers as they can be based on website context, geographic location of buyer, variety of demographic information, and user behavioral information.

Increases Online Traffic
Effectively positioning relevant and engaging display advertisements to a specific segment of audiences can help drive qualified traffic to the automotive dealer website. Display advertisements in the form of banner ads, pop up ads, and contextual ads catch the attention of potential customers and increase the website traffic. Also, display advertisement increases the brand awareness that generates more traffic to the dealer website and increases the chances of customer making a purchase.

Provides Good ROI
Apart from targeting specific segment of customers, online display advertising increases online traffic and increases the chances of sale thereby provides a good Returns On Investment (ROI). Also, display advertisement effectively targets desired customer segment thereby reducing the ad spend wasted due to unwanted and ineffective impressions thus maximizing the ROI. Display advertisement facilitates tracking of display advertisement campaign by automotive dealers through metrics like clicks and conversions, impressions to better calculate the ROI.

Online display advertisements can have an impact on purchasing decision made by automotive Internet users as they provide better consumer engagement. Thus, display advertisements can be effectively used by automotive dealers to increase their brand awareness, online website traffic, website interaction time, and maximize ROI. Moreover, display advertisements also encourage users to conduct search on Internet that increases the website traffic.