Category Archive : INSIGHTS

3 Reasons Why You Should Think Of Leasing Your Crane Equipment

If your business is in need of crane equipment, then you will have to think of ways to acquire it. And rather than trying to utilize your business funds or resorting to a business loan for purchasing the equipment, you may be better off choosing to lease it. Below are the three ways you can benefit from leasing the crane equipment-

      • Higher Chance For More Credit: Getting credit is no easy task. Creditors look for many factors to ensure that they only lend money to trustworthy businesses which they feel will be in a position to repay their debt and interest in full. And if they do not think that you meet their criteria, then you have a very low chance of getting approved for financing. And one of the most important criteria the creditors look for is your existing credit line. If you already have piled on so much debt that your debt to asset ratios are skewed, then you can forget about receiving credit. And this is where leasing becomes beneficial. When you acquire crane equipment through leasing, you won’t be showing the lease as a debt. As such, your debt to asset ratios remain intact and you will look much more attractive to creditors. So, if you are wondering how to finance a crane acquisition, then do consider leasing.
      • Include Soft Costs In Financing: When you buy crane equipment, you will not only be spending money on the equipment itself but also additional costs like transportation, installation, modification, operator training, etc. All these little costs can add up and eventually become a significant portion of the final acquisition cost. And if you plan to buy it through a loan, then you will have to put up more money in addition to the loan to actually be able to purchase the crane. But by using a lease option, you can forget about all such disadvantages since a lease will cover all soft costs. As such, you won’t have to spend a penny on your side to get the machine to your location.
    • Get The Equipment You Really Want: If you were planning on acquiring a crane equipment using your own funds or by a loan, then you will be limited by cost considerations. For example, you may like an equipment, but because you don’t have too much to spare, you may be forced to pass it off and select a cheaper equipment. With leasing, you can forget about such matters. Since you are not making any upfront investments, you are literally free to choose any equipment you want. The only limit you have to consider is the monthly installment. And as long as you can meet the monthly installment, you can acquire the exact equipment you desire no matter how high the price tag is.

So, keep the above considerations in mind when thinking of how to finance a crane equipment. Remember to consult with the leasing companies to know how exactly a lease can help you in making the crane purchase.

If you are in need of a crane lease for your business, Visit our website Here!

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SOFR – The New Commercial Loan Index That Is Replacing LIBOR

Last week I blogged on the problems associated with LIBOR.  It is abundantly clear that something needs to be done to replace the LIBOR index as a measure of market interest rates.

I pointed out that $350 trillion in financial instruments worldwide are currently tied to LIBOR.  Regardless of which index the authorities end up using to replace LIBOR, the switchover is going to be tricky.  I can see in my mind’s eye some greedy attorney affixing a bib and rubbing his hands together in glee.  Yum.

The index that will be replacing LIBOR, at least here in the U.S., is the secured overnight financing rate (SOFR).  The secured overnight financing rate is a benchmark interest rate for dollar-denominated derivatives and loans.  The Federal Reserve Bank of New York began publishing the secured overnight financing rate (SOFR) in April 2018 as part of an effort to replace LIBOR.

The daily secured overnight financing rate (SOFR) is based on actual transactions in the Treasury repurchase market, where investors offer banks overnight loans backed by their bond assets.

Photo by Andrea Piacquadio from Pexels

Benchmark rates, such as the secured overnight financing rate (SOFR), are essential in the trading of derivatives—particularly interest-rate swaps, which corporations and other parties use to manage interest-rate risk and to speculate on changes in borrowing costs.

Interest-rate swaps are agreements in which the parties exchange fixed-rate interest payments for floating-rate interest payments. In a “vanilla” swap, one party agrees to pay a fixed interest rate, and, in exchange, the receiving party agrees to pay a floating interest rate based on the secured overnight financing rate (SOFR)—the rate may be higher or lower than SOFR, based on the party’s credit rating and interest-rate conditions.

In my earlier blog article, I pointed out that LIBOR had become the rate at which banks do not lend to each other because most banks are up to their gills in liquidity.  LIBOR had become nothing more than a guesstimate.  SOFR is therefore preferable to LIBOR since it is based on data from observable transactions.

Unlike LIBOR, there’s extensive trading in the Treasury repo market—roughly 1,500 times that of interbank loans as of 2018—theoretically making it a more accurate indicator of borrowing costs.

Interest rate swaps on more than $80 trillion in notional debt switched to the SOFR in October 2020.  This transition is expected to increase long-term liquidity, but it also may result in substantial short-term trading volatility in derivatives.

While SOFR is becoming the benchmark rate for dollar-denominated derivatives and loans, other countries have sought their own alternative rates, such as SONIA and EONIA.

Time will tell whether SOFR is a suitable replacement for LIBOR.  The difference between the two indices was that LIBOR was based on unsecured loans between banks, whereas SOFR was the rate that banks would loan to each other, but only if such loans were backed by rock-solid collateral.

What is going to happen if a Chinese destroyer trades missiles with an American destroyer?  Talk about “living in a powder keg and giving off sparks.”  Such an event could easily trigger World War III.

Suddenly the investment world goes into a risk-off mode.  Corporate bonds and stocks would likely plummet, while Treasuries and gold would likely soar.  Because SOFR is based on well-secured, inter-bank loans, SOFR might not increase that much.

At the same time, the demand for non-US-government debt will almost certainly plummet.  Yields on investment grade bonds could soar to over 20% in a matter of 48 hours.

What damage will be done to the U.S. financial system because SOFR materially understates real interest rates in the system?  Remember, over $80 trillion in financial instruments are already tied to SOFR.  I dunno; but it can’t be good.

My own company, Blackburne & Sons, will always be in the market – even during war time – to make commercial real estate loans.

That being said, the Company is moving more into the syndication business.  We are putting together syndicates to buy income-producing properties for all cash.  In other words, there will be zero debt.  That is where everyone should be if war does break out – trophy properties that are owned free and clear.

By George Blackburne

Gold Could Soar From $1,870 Per Oz. To $50,000 Per Oz. In Just 6 Days

I have used six days because that is all that it took for the Israeli’s to smash the Egyptians, the Jordanians, and the Syrians during the Six Day War in 1967.

After the shocking surprise attack on Pearl Harbor on December 7th, 1941, the Japanese mopped up most of the American Far East Fleet and most of the British Far East Fleet near the Philippines, Wake Island, Indonesia, and Malaysia in less than three weeks.

Folks, modern wars can start and end pretty quickly, especially when one side – China  in this case – has superior weapons.  The United States is far behind the Chinese in hypersonic missiles.  Hypersonic missiles, as of now, are unstoppable.

Hypersonic missiles don’t really even need a warhead.  They travel so fast that their kinetic energy alone destroys any target.  They are so accurate that they can even strike their targets within a matter of meters.  God please protect our brave sailors.

The Chinese will strike first and without warning, probably taking out at least two of our aircraft carriers in the first salvo.  Air-launched hypersonic missiles will almost completely destroy our air bases on Guam.

While we will probably get a few planes and missiles off the ground, when our planes return from pounding Chinese missile sites, they will have no place to land.  The pilots can bail out, but our jets, each costing many tens of millions of dollars, will have to drop out of the sky.  A single F-35A costs $75 million.

We’re done.  It’s over.  Yes, our subs will get some licks in, but when a missile is conventionally-tipped, there is only so much damage that any missile can do, no matter how accurate it is.  China will pay an expensive price, but the Taiwanese War will be the end of America as the dominant world power.

Will China then leap-frog islands to bring their missiles within range of California and the rest of the country?  They pretty much have to rain missiles down on us until America has been bombed back to the Stone Age; otherwise we will eventually recover and strike back.

Fortunately, we have plenty of time – perhaps as much as two years.  What?  Just two years?   Yikes.  War is coming, folks.  I doubt there is a force on Earth that could stop it.  It’s like dropping a two-ton safe from 10,000 feet in the air.  Nothing is going to stop that safe from hitting the ground.

I have nothing against Joe Biden, but is he the Winston Churchill of our era or the Neville Chamberlain – that British Prime Minister who foolishly cozied up to Hitler before World War II?

So – BAM – much of the U.S. fleet in the South China Sea is suddenly and utterly destroyed.  The humiliation is total.

The U.S. now has to replace its fleet, at a cost of $30 trillion, build a dozen underground missile plants, build hundreds of thousands of complex missiles, and then protect its West Coast population from decimation.

From where is this money going to come?  Obviously we will have to sell $50 to $75 trillion in bonds; and now the world no longer wants them.  They don’t even want the U.S. dollar.

America used to be – because it was protected by vast oceans, because of its stable government, and because of vast military – the safest place on Earth to invest.  No more.  Now it will be the target of 1.2 billion angry Chinese.  They used have a population of 1.4 billion; but the U.S. military was not totally ineffectual.

My silly little blog articles are getting passed around (the world?).  I have been exchanging emails with a new buddy in Hong Kong, who is deeply patriotic towards his country.  “George,” he wrote to me recently, “you could kill one billion of us, and we would still outnumber the United States.”

So now we have 1.2 billion pissed-off Chinamen (probably a politically-incorrect term,  sorry) coming for us, and the U.S. has to totally rebuild its Navy and Air Force.  From where is all of this money going to come?  The U.S. government will have to print it.

Gold on Day 1:  $1,900 per ounce
Gold on Day 7:  $50,000 per ounce

Think this is crazy?  Here is a five-year chart of Bitcoin:

Screen Shot 2020-11-20 at 4.55.28 PM

Bitcoin is $18,555 today; but I think I would rather own physical gold coins when the war actually breaks out.

What can you do?  If you live in California, get the flip out.  A house in the Boonies, where you can use Zoom, might work very well.  Have you been following the prices of homes in the mountains of Montana and Utah?  Through the roof.

I was proud as heck of my son, George IV, when he bought a used SUV this week with a trailer hook.  He may need that trailer hook to pull a light trailer, loaded with gas and emergency food supplies, to Indiana.

What can the U.S. do?  If I was Joe Biden, I would:

    1. Sacrifice Taiwan.  With our current technology, we can’t hold it, so there is no point in losing our fleet.
    2. Pull our fleet back to the East Coast.  Let’s not give the Chinese any chance to take out our carriers and our expensive aircraft on board.
    3. Let’s hurry up with the development of unmanned aerial refueling drones.  Our biggest problem right now is that Chinese missiles can outreach us.
    4. We need to grasp the concept of missile warfare and avoid investing more into antiquated aircraft carriers.  “Generals always fight the last war.”  Aircraft carriers are sitting ducks.  It’s no longer a question of whether Chinese carrier-killer missiles can hit our carriers.  It’s become a question of which window on our aircraft carriers will their missiles use.
    5. Instead, we need to covert at least forty old container ships to missiles ships.  Iran – of all countries – just created its first missile ship from a container ship this very week. The Iranians have obviously been studying many of the same military journals as I have.  Converted container ships cost 1/50th of the cost an aircraft carrier.  They are cheap.
    6. Underground-underground-undergound.  Our sharpest missile and computer engineers need to move to where they can be underground in less than two minutes.  Utah?
    7. Folks, I wonder whether we are just rearranging deck chairs on the Titanic.  China is already graduating five times more engineers and computer geeks than the U.S.
    8. Assuming we still have an outside chance, why are we making student loans to graduate more psychology students?   WTFudge?  Want a student loan?  Study missile technology!  STEM subjects only.
    9. Folks, I am an avid student of history.  I greatly worry that this war may already be over.  I find myself hugging and kissing my kids at every chance I get.  I am genuinely scared.

By George Blackburne

What Is The Difference Between Investment Management And Wealth Management?

Investment management and wealth management – it is easy to be confused by these terms, especially since they are often misrepresented. What do they really mean, what are the key differences, and which might be best for you?

What is wealth management?

Wealth management looks at an individual’s finances as a whole and how they can be managed to achieve their long-term financial and personal goals. In addition to handling clients’ investments, wealth management encompasses a wide set of services, such as legal planning, insurance, accounting, and financial, charitable giving, and tax advice.

There are higher minimum asset thresholds, and one can expect to pay higher fees for the more comprehensive service. Although a good manager could justify this through the savings their service provides.

Advantages of wealth management

As wealth managers offer many of the services of an investment manager, their clients gain the same benefits. However, the additional services on offer mean that wealth management can provide further advantages.

Coherent Strategy

As wealth management looks at all aspects of clients’ financial affairs, it aims to provide a custom-made strategy to realize their objectives. For example, by combining different services, a wealth manager can find the best path to paying off a mortgage or planning for retirement, whilst avoiding tax inefficiencies or undue risk.

This holistic approach attempts to understand and predict how different areas of an individual’s finances interact and organize them appropriately.

Simplicity

A wealth manager can provide a single focal point for all financial matters. Rather than having a wide assortment of advisors, a wealth manager may replace the need for a separate financial planner or investment manager, for example.

Their breadth of knowledge also means that they can act as a guide for those less familiar with the practices and technical language that often surrounds financial services.

What is investment management?

The primary role of the investment manager is to advise on, organize and grow clients’ investments.

After discussing a client’s financial goals and acceptable risk levels, an investment manager assembles a portfolio of investments appropriate to their requirements. They then will keep clients updated on the state of their portfolio, offering recommendations and implementing changes.

Advantages of investment management

Investment management services sometimes require a minimum investment and come with a fee – generally a small percentage of the assets under management. However, they can offer numerous benefits.

Reduced Risk

With an investment manager constructing a diverse portfolio, assets are less vulnerable to fluctuations in individual investments. With hundreds of smaller investments likely spread across different industries and asset classes, if one performs poorly, others are likely to compensate.

Convenience

If the client desires, they can acquire a wide range of investments with the minimum effort, making it ideal for time-poor individuals. As the paperwork and day-to-day running is taken care of, much of the stress of investing is removed.

Higher Returns

One of the biggest advantage is that you can gain the knowledge of the professionals. The best investment managers often have a wealth of experience and worldwide networks which can help them spot the best opportunities and reach better results.

Investment managers also have abilities that most individual investors do not. For example, they can increase their buying strength by pooling together several clients’ assets, with each benefiting from the greater yields.

Which is best for you?

Which service is most suitable will largely depend on your net worth and the type of assistance you require. Whilst a wealth manager offers more services than an investment manager, it is generally only available, or necessary, for the most affluent clients, with the wealthiest even receiving fee discounts.

Therefore, if you simply wish to see your investments grow, without the difficulty and risk of handling it yourself, gaining the services of an experienced investment manager could prove fruitful. However, for those with a higher net worth and a complex financial situation, the comprehensive methods of wealth management may be the best solution.

Contact Our Client Center

Article Source: https://EzineArticles.com/expert/Tze_Li/2519707

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5 Benefits of Financial Technology

Financial technology (also referred to as FinTech) is the use of innovative technology to deliver a wide range of financial products and services. It is intended to facilitate the multi-channel, convenient and fast payment experience for the consumer. This type of technology is effective in many different business segments, such as mobile payments, investment management, money transfer, fund-raising and lending.

The rapid growth of financial technology has been very beneficial for consumers worldwide, such as the ability to serve customers that were not previously attended to, a reduction in costs, and an increase in competition.

Let’s take a look at a few of the benefits related to financial technology:

Better payment systems – this type of technology can make a business more accurate and efficient at issuing invoices and collecting payment. Also, the more professional service will help to improve customer relations which can increase the likelihood of them returning as a repeat buyer.

Rate of approval – many small business ventures are starting to use the alternative lenders like those involved in financial technology because it has the potential to increase accessibility and speed up the rate of approval for finance. In many situations the application process and time to receive the capital can be completed within a period of 24 hours.

Greater convenience – the companies involved in financial technology make full use of mobile connectivity. This can significantly increase the number of people who can access this type of service and also increase the efficiency and convenience of transactions. With consumers given the option to use smartphones and tablets to manage their finances, it is possible for a business to streamline its service and provide a better all-round customer experience.

Efficient advice – many of the latest systems rely on robo-advice to give people guidance on their finances. This can be a very quick and low-cost option to get useful information on investments, as well as to limit a person’s exposure to risk. However, this type of service won’t be able to give the most in-depth advice that would come from a professional adviser.

Advanced security – Using the latest security methods is necessary to ensure more people are confident in using this type of financial service. The need to harness the latest mobile technologies has resulted in a major investment in security to ensure customer data is kept safe. A few of the latest security options used by those in this sector include biometric data, tokenization and encryption.

Learn more Contact us now..

Article Source: https://EzineArticles.com/expert/Leo_Eigenberg/1776992

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Top Financial Tips for Millennials

Are you a millennial who feels overwhelmed trying to manage your finances? Are you getting the most out of your money? Financial literacy is not often taught in schools and they don’t do a great job preparing their graduates to manage their finances. So when you’re out of college and start real life, it can be a little overwhelming and it is easy to get yourselves into debt and other financial trouble.

Most millennials are currently in their 20s and 30s – a time when many young people are ready to make major financial decisions in their lives, like home ownership, long-term investment activity, etc. If you’re currently a part of this generation here’s your crash course on what you should do to improve your financial wellness:

Take online financial courses
Since most young adults have the propensity for technology it is suggested you take a few basic online courses in economics, accounting, and any other financial topics that may be of interest to you.

Embrace Technology
When it comes down to managing your money there is probably an app. To help you do that. These apps. Can categorize your spending habits and help you manage your spending. These insights can help you save money each month and then transfer that money directly to your savings. Online financial apps can help you make a workable budget for your lifestyle and ultimately change your net worth.

When it comes down to managing your money there is probably an app to help you do that. Mobile apps like Clarity Money can help you track any wasteful spending habits. Digit and Stash can recommend where you can save money each month and then transfer that money directly to your savings. Online financial apps can help you make a workable budget for your lifestyle and ultimately change your net worth.

Examine Your Current Bank Accounts
Are you paying fees? If so, for what? Monthly maintenance and minimum balance fees should never be a fee on your account statement. Free checking accounts, are available, especially at credit unions and these accounts will help you keep more of your own money in your pockets. So don’t settle for anything else.

Build Your Credit and Understand the Impact of your Credit Score
Early on, you may only have a student loan or a credit card on your credit report. But now it’s time to start building your credit. Ask your credit union about a Credit Builder Loan to help jumpstart your credit. And if you already have some active loans, make sure you’re making payments on time every month. You’ll need that good credit history when you want to make big purchases in the future like a car, rent an apartment, or get a mortgage for your first home.

It’s also important to know that if you are planning on opening up a business your personal credit may be the defining factor in your ability to access necessary working capital.

Repay Debt Tactically
Since we are on the topic of credit, a lot of young adults have credit cards with very high interest rates. Focus on paying off those debts first! If possible, transfer those balances to a lower-rate credit card. It’s much easier to pay down debt when more is going toward the balance.

Track everything to obtain your whole financial picture
Just as businesses manage their cash flow, individuals need to do the same by tracking their income, expenses, assets and liabilities. There are many online tools to help you like Mint, Quicken and Personal Capital.

Build an Emergency Fund
Unplanned/unfair/unfortunate events can happen in the blink of an eye. You may get in a car accident, have unforeseen medical expenses or lose your job. That’s why it’s important for everyone to have an emergency fund. The best way is to set up an automatic savings plan where you pay yourself first by depositing a portion of your paycheck into a separate savings account. If you forget it’s there you won’t be tempted to spend it.

Create a Long-Term Savings Strategy
An emergency fund is a short-term strategy, but you also can’t forget the big picture. Does your employer offer a matching 401(k)? If so, be sure to take advantage of that opportunity. It’s fundamentally free money, and it’s an investment in your future.

Get yourself a financial mentor
Even though there is an overabundance of information and apps on the Internet to help with your financial security, it is far superior to pick the brain and bounce questions off a trusted friend or colleague. Their pertinent insights will most likely be tailored to your specific requirements.

Use these financial tips listed above to get your finances on track while you’re still young. You’ve got a bright future ahead – so start now and stick with it. Your financial well-being will thank you! Although these tips are targeted at millennials, they’re useful for all ages.

There are many resources to help you make smart financial decisions. all U.S. Credit Union can be a resource when making big decisions or contemplating a loan or new credit line. Money desktop, which is included for Free as part of Jazz Banking, can categorize your spending habits and help you manage your spending. Even if your only goal at the moment is to pay your bills and save a little each month, utilizing things like money management apps like Money Desktop illustrate to you how far your money can actually go. For more money saving approaches find us online at https://alluscu.com.

Article Source: https://EzineArticles.com/expert/Patrick_Redo/2064245

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Working Capital Loan: Guide To The Different Types Of Working Capital Funding For Businesses

Every business, at some point, requires some form of financial assistance. If you find that you simply need more money to fund your company’s day-to-day operations, then you will want to apply for a working capital loan. The sooner you can get an approval, the better, as this kind of loan helps pay for a business’ short-term operational requirements. Companies that rely on seasonal profits or cyclical sales tend to need capital to help out during periods of reduced activity. Retailers, for example, generally sell more products during the 4th quarter around holiday season than at any other time. Manufacturers have sales that correlate to the needs of the retailers who buy from them.

The great thing about a working capital loan is that the funding is immediate. This kind of loan is also easy to obtain for the most part, and allows company owners to efficiently cover up any gaps in their capital expenditures. It is also a type of debt financing that doesn’t require an equity transaction. This means that you, as the business owner, will still maintain full control of your company.

There are a few different types of working capital loans, with the most common being “working capital short-term loans”. These provide the business with a lump sum that must be paid back over a shorter period of time, usually within 18 months. You might also want to apply for a working capital line of credit, which will give you access to some funds that you can use whenever you need to.

Other Options Besides a Working Capital Loan

Other options include invoice financing and merchant cash advances. With the latter, you get an advance sum of cash which you will be expected to pay back by allowing the lender to take a certain percentage of your company’s credit card sales. It’s the costliest kind of capital a business can get, but it’s also very easy to get approved for. If you haven’t established a good credit rating, you really might have to consider this.

As for invoice financing, it is a solution for companies whose working capital depends on customers paying invoices. If the customers have been late, these companies have difficulty finding the cash they need for the daily operations. So the invoice financing helps the business owners gain access to capital immediately.

If you are interested in any type of working capital loan, the best place to look into is AnalytIQ Group. They are committed to offering financial solutions to help small and medium sized businesses grow.

To get closer to financial freedom, visit Our Client Center:

Article Source: https://EzineArticles.com/expert/George_Botwin/1425000

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How To Develop Your People In A Fast Pace World With Dave McKeown

For GLO entrepreneurs wanting to accelerate business growth, the host of “Lead Like You Give a Damn” podcast is exactly who we can all learn from. Dave McKeown is the author of The Self-Evolved Leader. Dave will share his insights on how to elevate your focus and develop your people in a world that refuses to slow down.

By the end of the session GLO members and attendees will discover:

    • Why our current leadership models are failing us
    • The 3 key steps to elevate their focus above the day-to-day toward the medium and long term
    • The 5 key disciplines for building a team that delivers excellence

Dave McKeown is the CEO of Outfield Leadership and leadership consultant

    • Experience in connecting individual and team performance to improved business results with a particular focus on fast-growing, complex organizations.
    • Dave speaks, coaches, and trains on moving from execution to excellence.
    • His goal is to help organizations build a culture of real, authentic, and ultimately results-driven leadership.
    • He has shared his leadership strategies at the Inc. 500 and Growco conferences, for Bank of America, the British Government, Entrepreneur’s Organization, Bamboo HR, and countless others.
    • He is the host of the podcast ‘Lead Like You Give a Damn’ and writes a regular leadership column for Inc.Com
    • He is a blast of reason and insight in our fast-paced world.

Speakers

    • Dave McKeown

Date & Time

    • Thursday, November 12th, 2020
    • 10:00AM – 11:00AM Central

Location:

Event Speaker

Dave McKeown

Dave McKeown is the CEO of Outfield Leadership, a leadership consultant, and the author of The Self-Evolved Leader – Elevate Your Focus and Develop Your People in a World That Refuses to Slow Down. He has a wealth of experience in connecting individual and team performance to improved business results with a particular focus on fast-growing, complex organizations.

Reserve Your Spot Today! Click Here! Click On Events…

Interested In Becoming A GLO Member! Click Here

Changing Business Strategies 2020

The ongoing COVID-19 pandemic has turned life upside-down for many Americans, and has forced many small business owners to either temporarily shutter their businesses or at the very least completely change the way in which they operate.

Some small businesses have been forced to close down due to an inability to pay rent, lease payments, other bills and salaries. Others have been able to make it through the pandemic so far, but will still likely see a significant financial impact if they have not already. Even those businesses “making it,” many have had to lay off employees.

There are only so many expenses businesses are able to cut. It is important for owners of small to medium-sized businesses to be proactive about making the necessary adjustments to stay financially healthy and make it through the pandemic whole.

What should you do?
To understand the steps you should take now as a business owner, it is important to take the future into consideration. It is difficult to say how long an economic bounce back will take as states start to reopen and the economy slowly begins to rebuild. Companies that make it through may start to change the strategies they use for taking out loans or leases and paying cash.

There is a misconception that banks are withholding money from small businesses, but this isn’t true at all. Local banks are as affected by the pandemic as the businesses they serve. These banks aren’t receiving payments for loans they gave during a prosperous economy.

In thinking about this, the old saying “cash is king” still rings true in a sense, when you consider the vast majority of companies did not have enough savings for a month without being open. It is difficult for businesses running lean operations to keep reserves for a rainy day.

However, the good news is that the pandemic hasn’t completely stunted the growth of companies throughout the country. There are still plenty of businesses looking to grow and flourish in this economy. Businesses in industries such as technology, manufacturing, biotechnology, medicine and transportation are still seeing significant growth.

With this in mind, it’s not unreasonable for you as a business owner to still have your mind on growth. Consider the areas in which your company needs to grow-employee numbers, equipment, marketing budgets, software, etc., and the strategies you will implement to accomplish these goals.

As the global economy repairs itself over the next 12 to 18 months, business owners will need to make major decisions about how they approach growth to set themselves up for a sustainable long-term future. As always, the recommendation is “if it appreciates, buy it. If it depreciates, lease it.”

Article Source: https://EzineArticles.com/expert/Alan_Eppstein/1748977

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How Hard Money Lenders Can Help You During COVID-19

Even with all the reopening of towns across America, some households may find themselves stuck trying to emerge from the setbacks caused by COVID-19. If you find yourself falling into this category, you may be looking into all the different options to get a little extra money now, especially when handling real estate matters. Have you considered what a hard money-lender could do for you?

What is Hard Money Lending?

Hard money lending is a form of financing that is asset-based. The funds a borrower receives are secured by the value of a property’s equity. Interest rates are higher on hard money loans versus the loans that are secured by a financial institution. This type of loans are funded by private entities that are secured by notes to private investors.

It works the same way like any other loans. You continue to make principal and interest payments monthly on the amount you borrow. You will have a repayment term that you must adhere to, just like any traditional loan.

Facts About Hard Money Loans

Here are some of the traits that are indicative of hard money loans:

    • These loans are broker protected
    • Residential and commercial loans
    • Stated loans
    • Terms can range from 11 months to 5 years
    • 1st, 2nd, and 3rd position on all properties
    • No cash-out restrictions
    • Past bankruptcy, short-sales, and foreclosures are okay
    • Amortized and interest only programs
    • loans can be approved within six to 24 hours

Getting Approved for Loan

This type of loan requires that you have equity in a property. Once a lender looks at the equity the property has, then they will begin the normal lending process. The amount you will borrow will be determined by the amount of equity, ability to repay, debt-ratio, and your long-term goals with the property.

Your lender should advise you on all the fine details of the agreement like interest rate, prepayment penalty, terms, cost, title issues, among other important loan details.

Check with a local lender to see if what your options are and how a hard money loan may be able to help with your COVID-19 woes.

How a Hard Money Loan Can Help in Times of COVID-19

If you have a property with equity, you may be able to use it to get a loan. During COVID-19, mostly when it was at its peak, you might have had problems handling all of your bills. If you are struggling to get a loan and need extra cash to help get you by during this pandemic, you may want to explore loans and see if you qualify.

If you are struggling to get a loan and need extra cash to help get you by during this pandemic, contact AnalytIQ Group

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