How to Avoid Small Business Financing Mistakes

How to Avoid Small Business Financing Mistakes
Commercial loan mistakes can have severe financial
consequences. However, with proper time and effort, the
business finance problems described in this article can be
overcome successfully.

It might seem like good common sense to avoid mistakes in
anything you do, but unexpected business financing mistakes
are tricky and difficult to avoid because they usually
involve complexities that are not understood by many
commercial borrowers. With complicated commercial loan
situations, there is often a tendency for borrowers to
ignore or overlook factors that can produce long-term
financial problems.

What are the benefits of avoiding business financing
mistakes? Commercial borrowers should expect to avoid
potentially devastating business finance problems and
secure improved commercial loan terms by taking some extra
time and caution when they are obtaining a new business
loan or commercial mortgage. The stakes are high and this
will admittedly require a concerted effort by business
owners in order to successfully avoid commercial financing
mistakes.

This article will focus on two specific strategies to help
avoid business financing mistakes. Both are considered to
be of somewhat equal importance, so it is strongly
suggested that business owners devote time to both
approaches.

Evaluate whether you need short-term or long-term business
financing. While you might not have complete freedom of
choice in this matter, it is essential to consider all
possible angles before you finalize a commercial loan. With
a long-term business loan, borrowers are likely to incur
substantial penalties if they need to refinance in the
first three to five years. With short-term business finance
agreements, business owners could be faced with the need to
obtain new financing that will replace an existing loan at
an inopportune time.

The biggest potential mistake could occur if a borrower is
not aware of the terms in their commercial financing. Even
though a commercial borrower might have what appears to be
a long-term commercial mortgage, many traditional lenders
include recall terms that allow the lender to require early
repayment of the commercial real estate financing under
specified conditions. Lack of knowledge about such loan
terms can prove to be a serious mistake. The suggested
solution for avoiding this particular mistake and other
potential mistakes related to long-term or short-term
financing: Commercial borrowers should look for resources
which will provide relevant solutions for a business owner
contemplating business purchase or real estate refinancing.

Insist on working with experienced business finance
advisors and lenders. Following such advice will not be as
easy as you probably imagine due to the recent chaos in the
residential real estate mortgage field. This unexpected
financial turmoil has resulted in an increasing number of
residential brokers and lenders seeking to become active in
the business financing field. What this means is that there
are now substantially more inexperienced financial advisors
attempting to advise business owners about how to obtain a
commercial mortgage or commercial loan.

Obviously there is a high probability of serious mistakes
occurring if an inexperienced loan advisor is used, and
these mistakes are unfortunately likely to be of a critical
nature because of specialized business loan requirements.
Here is a suggested solution: Business borrowers should
thoroughly discuss financing alternatives with a commercial
financing expert before buying or refinancing a business
investment or commercial property.

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Learn how to avoid mistakes with commercial loans and find
out about business cash management strategies at AEX
Commercial Financing Group. Steve Bush is a small business
loans expert =>
http://aexllc.com

Gold Markets

Gold Markets
Gold-markets are places where people buy and sell gold,
usually over the Internet but sometimes in person.

These gold-markets usually contain a gold world chart which
tells you the price of gold all over the world to make sure
you are getting a fair price for your gold pieces whether
they are actual gold bullion or jewelry the price varies
depending on if there was anything added to the gold, if it
was cut or if it is just a plain piece of gold. The age of
the gold is also a factor in determining the price you will
be paid for your gold.

In the past several months of gold market has been a
volatile place, with the price of gold jumping higher than
lower than higher again. People interested in selling
their goal watch the gold markets very carefully to see
when the best time to sell will be. Because you want to
sell when the price is high, to get the best money for your
gold, not when the prices low because you won't get as much
for your gold.

The shiny yellow precious metal has made millionaires out
of paupers and ruined many investors? lives. The
gold-markets are a very risky place for those who do not
understand how buying and selling gold works.

Unlike precious gems, rubies and diamonds, buying and
selling gold pretty straightforward. Buying and selling
gems you have to be an expert at the quality and texture
and the other aspects of the gems. With gold, you just
have to know if it's real or not and a reputable dealer
will be able to help you determine if the goal is real or
not. Someone who is out to scam you will tell you it's not
real when it is an offer to take it off your hands for a
small amount and then they have your gold and can make more
money while you only have pennies on the dollar for what
would normally be hundreds of dollars worth. So it pays to
go to a reputable gold dealer.

Most pure gold is too soft or jewelry and is therefore
mixed with other metals and depending on the percentage or
the ratio of gold to medals will depend on the amount you
will receive for your gold. To get the karats of gold, you
have to find out the ratio or percentage of the maximum
strength of each metal. The maximum tensile strength of
copper and gold is achieved with 75% gold and 25% copper
which equals 18 karat gold.

The gram weight and karatage combine designate how much
gold is in the piece, however this is not the sole
determining factor. The level of detail and the
craftsmanship are also taking into account.

Selling gold can be as risky as buying it. These are
attracted to gold like pigs are attracted to mud. And
selling gold with a credit card carries a significant risk
of counterfeit charge backs. So buyer and seller beware in
the gold-markets, both online through the Internet and in
person at the jewelry shops, always go to a reputable
dealer when buying or selling gold.

----------------------------------------------------
More Gold Information at:
http://goldinvestingsite.com/
Gary Giardina

Having A Disability Insurance Policy

Having A Disability Insurance Policy
Having a disability insurance policy could be a lifesaver
if you cannot work for a period, especially with a family;
sickness which prevents you from working for a period of
time means that an alternative income is required. This can
take some of the emotional strain away the financial
difficulties it is certain to create during your
incapacitation.Statistics prove there is a strong
likelihood that the average worker will need recuperative
time from work before they reach 65; therefore requiring a
disability protection plan.

Unfortunately, this fact is often overlooked when life
insurance coverage is being arranged. A person in their
prime at forty is more likely to need three months off than
they are dying before the age of 65. Like all types of
health protection, searching for the best disability
insurance rates is imperative. Although calculating the
premium can be a complicated process, the largest factor
involved is the income level the claimant requires. To help
reduce the possible financial impact of taking out of the
premiums it is possible to delay when the first payments
are made; with this in place there is less probability of
the claimant making a claim. The other option to this would
be to reduce the period of payments for incapacity; this
can be a risky move if the period of incapacity is longer
than the period arranged for payment.

Insurance company policies will differ but the majority
will only pay a percentage of your lost income so it is a
good idea to choose the best one for you and in this
instance, the cheapest may not necessarily be the best. If
you are looking into this subject then you will see that
only a couple of plan options exist, the first being short
term disability insurance. Total disability cover is in
force for a longer period albeit at a reduced rate but the
onus is on the claimant to prove they can no longer perform
the work they carried out before.

Whatever the situation, a person making a claim owing to
incapacitation will be sent a disability benefit check
every month until the end of the plan or they return to
work. Some key issues to research in health policies
include:

*Any previous medical problems
*Will the benefit be tax free?
*How long the benefits will be paid for
*Your current occupation

The level of cover provided for your original salary will
differ with each insurer's disability insurance policy.
This percentage of your income paid by your insurance plan
can be as little as forty percent or as much as seventy
percent, so you can see there is quite some variation. More
than any other factor, it is this one that you need to be
sure of as once you have taken out the plan and found it
necessary to make a claim, it will be too late for you to
change it.

----------------------------------------------------
Dean Calvert Is an insurance veteran of 13 years and writes
articles on the subject.
http://www.insurancefreequote.com

Offshore Company Formation: Panama Trumps the Competition

Offshore Company Formation: Panama Trumps the Competition
Many people associate the word "offshore" with tax evasion
or other more serious criminal activities. While it is true
that people from this element of society are intimately
interested in offshore for the privacy benefits that can
shield their illicit activities there are also legitimate
and completely legal reasons to pursue the formation of an
offshore company.

What is Offshore Company Formation?

Forming an offshore company simply means incorporating a
business in a country other than the one you reside in. It
does not have to mean incorporating in a tax haven. You
can incorporate a business in the UK which would be
offshore to you if you lived in Canada for example.

The media at large has had a field day with the offshore
industry and in particular, tax havens, seemingly only
reporting about them when a serious crime has been
uncovered. It stands to reason since these tax havens
promote privacy that they really have no recourse to fight
back in the media since drawing attention to themselves and
their clients is exactly the opposite of their intention.

Why Form an Offshore Company?

There are a number of positive benefits that can be
realized through offshore company incorporation. The
lion's share of people that are drawn to offshore company
formation are seeking greater privacy in their financial
dealings, increased layering for asset protection purposes
and a reduced tax burden on capital gains.

Forming your business offshore does not preclude you from
paying your fair share of taxes on income in your home
jurisdiction. The advantage of having an offshore business
is once you have paid the taxes in your home country and
moved this money to an offshore tax haven, your money can
grow there tax free. In general, tax havens will not
charge a capital gains tax nor will they tax foreign
derived income.

Why Incorporate in Panama?

Incorporating a company offshore also provides many privacy
benefits in your financial dealings. Specifically, the
Panama IBC, can be incorporated in bearer share form. This
essentially means that ownership of the company is
anonymous and can be changed simply by passing the share
certificates to another person.

Bearer share corporations can own real estate, boats, cars,
bank accounts, trading accounts among other assets. This
"anonymous" ownership provides a layer of privacy in that
your personal name is not associated with any of the
transactions for the business nor in any public registry.
Panama also offers the ability to layer asset protection by
having a Panama foundation own the corporation. As with
the bearer share corporation the Foundation ownership can
remain private and is virtually untouchable even by the
court system since Panama foundations have no owner.

Depending on what services and level of privacy protection
you desire there are quite a few different scenarios you
could pursue when considering Panama to form your offshore
company.

The first step would be to do some internet research trying
to identify good sources of unbiased information about
offshore company formation in general and then specifically
about Panama. As you research you will start to get a feel
for the industry in Panama as well as identify potential
service providers.

It cannot be stressed enough that incorporating your
company through a Panama law firm or lawyer is the best
method to ensure your corporation is created in the proper
way. When dealing with a law firm your communications are
covered by attorney client privilege which provides you a
layer of privacy protection that cannot be offered by other
companies that will perform the formation duties on your
behalf.

----------------------------------------------------
To learn more about the offshore services industry or
panama company formation please visit the author's website:
http://www.offshorelegal.org/

The Real Estate Short Sale- How It Works

The Real Estate Short Sale- How It Works
If real estate investing is new to you then you might
wonder what the term "short sale" means. You might also be
thinking, in a market that exists today, what short sales
could offer you in the way of opportunities.

The best way to describe short sales is with an
illustration:

The loan on a home is greater than the price the owner can
sell it for. Let's assume that the unpaid balance of the
loan is $140,000 but the house won't sell for more than
$120,000. Obviously this is not an ideal scenario for the
owner or for the lender. It means the lender is at risk of
losing money and that's not something they want! In order
to have minimal losses, the lenders agree to accept less
than the total amount due. In this illustration, the lender
considers the $120,000 as payment in full. Now it's clear
that this amount is "short" of the full $140,000 payment.
You can now see where they derived the term "short sale".

Why in the world would a lender consider a short sale?
Well, there are many reasons often related to "hardship
cases"; e.g., the homeowner has permanent injuries;
financial insolvency; convictions; job layoffs, etc. In
such cases, lenders are willing to consider a short sale as
part of their "loss mitigation" policy. However, lenders
don't go into business to lose money, so they consider
short sales a last resort. Foreclosure can be a better
option for them.

So, should you consider short sales as a money-making
opportunity?

Well, good deals can be found in short sales, but it's a
much more complicated process than conventional real estate
sales. It's made complicated by the fact that there are so
many factors involved: - The loan mitigation policies of
the lender and third-party investors - The borrower's
financial condition - The property's as-is value an
as-repaired expenses - Approval for short sale needs to
come from the investor who is actually the owner of the
loan.

So, how do you know if a short sale is worth pursuing? Here
are the steps to follow in order to make that determination:

Step 1: Identify potential short sale properties (e.g.,
contact a listing agent, check the public records, etc.).
Step 2: Check the lender's loss mitigation policy. For
example, if they deal with short sales on a fairly regular
basis, they're a good choice. If, on the other hand, they
seldom or never accept short sale offers, don't waste your
time. Step 3: Determine the number of liens recorded
against the property and the total amount of money in those
liens. Step 4: Determine the borrower's present financial
condition. Step 5: Analyze the type of loan that's in
default and its current status. Step 6: Determine both the
property's as-is market value and its as-repaired value.
Step 7: Analyze current real estate market conditions.

Once you've followed all these steps and determined that a
short sale is worth pursuing, then you'll need to take
further steps. First, keep in mind that all short sales are
cash transactions. This means you'll need to have cash on
hand and verifiable proof that you have that money.
Otherwise, the lender will not do business with you. Follow
these steps:

- Contact the homeowner who's in foreclosure and determine
the homeowner's financial condition.

- Determine the property's condition.

- If you conclude that both the financial and property
condition are suitable, ask the homeowner to give you
written authorization to contact the lender's loan loss
mitigation department.

- Contact the decision-maker in the loan loss mitigation
department of the lender and provide him or her with a copy
of the authorization signed by the homeowner. Discuss the
short sale and ask him or her to send the appropriate
short-sale documents to the homeowner.

- Instruct the homeowner to compile all documentation in
order to prove financial hardship.

- Get repair cost estimates from at least three licensed
home improvement contractors.

- Assess the value of three similar neighborhood properties
sold in the last six months (a comparable value study).

- Return the short sale proposal to the lender's
decision-maker. It should include a signed purchase
agreement for a percentage less than the amount owed to the
lender; e.g., 20%, 30%, less, etc.

- At this point, the lender's decision-maker reviews your
proposal and orders a BPO ("broker's price opinion") to
determine the property's as-is and as-repaired values. The
decision-maker either accepts your proposal or rejects it.

- If the decision-maker thinks a short sale is appropriate,
he or she makes a counteroffer.

- You accept or reject the counteroffer.

- Assuming you accept the counteroffer, you close on the
transaction within 30 days.

One last point: Short sales can't be made to relatives,
family members, or close friends of the homeowner. If a
lender later finds out after the sale that, say, the
homeowner's sister bought the property, then that lender
can sue to have the sale overturned.

My advice: Approach short sales with caution and be
prepared to put in a whole lot of work in order to make
them succeed.

Jack Sternberg

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Jack Sternberg is a nationally recognized expert on real
estate investment and the creator of the renowned "Buyers
First Program" who's been in the business for more than 30
years. Sternberg's deals have totaled over $750 million and
he's been to the closing table more than 1,500 times. For
more, visit http://www.askjacksternberg.com