Whether you need money to help with your new business, to purchase equipment, obtain a supply of cash to keep up with ongoing expenses, etc., you can always apply for a business line of credit. Whether or not you will be approved, however, will depend on a number of factors ranging from your credit score to your experience and industry.

There are always alternative options, including small online lenders, crowdfunding, bank loans, and so forth. A credit card is a good choice if you have a high credit score and need to know that the money is there should there be unexpected expenses, or you need any type of recurring expense. Also, what will you do if your type of business is affected by the ebb and flow of seasonal changes? A business credit card is also great for this type of situation.

What are the requirements? How do you know if you have a good chance of being approved for a business line of credit? In addition to your own credit score, a lender will look at factors such as the strength of your business, time in business, annual revenue, your ability to secure the line, and so forth. It might even come down to you having to put up collateral in order to qualify. If you can do so, you will increase your chances of being approved significantly.

Proofs Required Business Line of Credit

Your company must prove that you have revenues and that you can be profitable. They want your profitability and revenues to justify the size of the business line of credit for which you are applying. If you are unable to prove your profitability, then the collateral will come into play.

Even if you are approved, you must decide if this is REALLY the right option for you. What are the repayment terms? Is the interest really high? Again, there ARE alternatives. Also, keep in mind that your credit score will take a small hit for each and every business line of credit you apply for, so think carefully before you begin. Don’t just go around applying for everything. On the flip side, don’t just apply for the very first company credit card you come across. Take the time to compare your options and only apply for a few that offers the terms and conditions that are more favorable to you.

If you have at least average credit and need money as quickly as possible, then you might want to check with AnalytIQ Group Corp. AGC offers all types of funding solutions for companies of all sizes. There is a good chance you will qualify for a business line of credit.

There are funding solutions for all types of businesses, although the more established businesses in good financial standing have the most options. Business lending companies vary from SBA-associated organizations to “angel investors”. The most common types of lenders are obviously traditional banks, but that might not be the right option for you.

If your company is just kicking off, you’ll need to look into start-up loans as well as crowdsurfing solutions (if you are able to come up with a good viral campaign). There are also internet-based lenders that are always looking for new businesses with good, innovative ideas.

SBA loans aren’t for everybody, but you might want to consider them if you think you’ll be able to qualify. It’s not true that the government gives them away as start-up loans. It is true, however, that they have different credit underwriting terms, standards, and several other factors that set them apart from traditional business loans.

Keep in mind that the Small Business Administration does not actually give out money itself- it has a menu of offerings through the firms it partners with. Whether you are looking for funds to help you get started with a small business, to recover from disaster, or for expansion purposes, there might be an option for you through the SBA.

Business Lending Companies Online

There are businesses who would prefer to go through the online funding offers – especially those that aren’t as strict with their requirements. For instance, most lenders will check your personal and business credit history to evaluate your amount of lending risk. If you don’t have a good, strong credit history, you’ll have to start cleaning up your debts and getting credit repair services to help you improve your score as quickly as possible.

No matter which business lending companies you are considering, you’ll need to have a solid business plan. This plan should include detailed short-term and loan-term goals. If you have a financial advisor or certified public accountant, have them to review the plan to let you know if it is financially feasible and if everything looks good.

Consider your cash-flow cycle and expenses as well. The cash-flow cycle includes payments and the flow of cash – both in and out. The expenses obviously refer to the amount of money you need currently and will need in the future in order to meet your financial goals.

Regardless of what kind of business you have and what kind of funding you are after, don’t overlook AnalytIQ Group Corp. AnalytIQ offers equipment financing, working capital, small business loans, and more. You can easily get a free quote and (possibly) a quick approval.

Working capital loans can be used to help companies pay for their operational costs. The net capital is also defined as the difference between a business’s current assets and liabilities. It’s the amount of money the company has currently as its disposal to pay for daily and immediate expenses. If you are having trouble meeting those financial requirements, then you’ll want to look into business capital loans.

However, there are instances when an organization might have more than enough in working capital all the time, yet it still might not be a good thing. This could be a sign that the business isn’t utilizing its assets to the fullest, and you might want to look for better ways to utilize those assets.

Regardless of why you think this kind of loan might be right for you, it’s important to understand the working capital ratio to help you determine how much money you should request. In terms of financial health, you will want a ratio between 1.2 and 2.0, regarding current assets / current liabilities. If a business has $100,000 in current assets and $80,000 in current liabilities, that means 100,000 / 80,000, which results in 1.25 s the working capital ratio.

If your working capital is below 1.2, then you will want to request the amount of money you’ll need to bring it up some when applying for business capital loans.

Ways to Utilize Business Capital Loans

You can go about applying for business loans in a number of ways. There are installment loans or term loans that are issued to borrowers in a single lump sum, and from there borrowers are expected to pay back that amount itself plus interest in fixed installments. You’ll find numerous online lenders and alternative lenders that are offer a quick application process and competitive rates.

The Small Business Administration also offers a number of loan programs, including capital loans, most commonly in the form of 7(a) loans. A portion of the loan is guaranteed by the SBA, so if you lack the collateral necessary to get a loan on your own, the 7(a) might be a good option.

Before applying, have an outline of how you plan to use the money. Lenders will want you to be as detailed as possible. Also, don’t just think of how your business will benefit with the loan, think of the possible setbacks as well. If you don’t carefully look into the fees, terms and conditions, repayment schedule, interest rate, etc., your company might end up being in an even worse situation ultimately.

Regardless of what type of business capital loans you’re looking for, one lender you might want to consider is AnalytIQ Group. The site offers lines of credit for small business, including those that require working capital, and more. The application process is extremely fast.

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

Raising money for business can be a very useful and potential litigious activity if not done properly. It is important to keep certain rules/laws in mind so that you and your potential investor(s) are on the same page throughout the entire process. Raising venture capital from business angels or a venture capital firm is no easy task however, but it is possible with all the right ingredients.

Seven Essential Rules When Raising Money from Angel Investors

1. Always have a complete, written, professional business plan.

2. Always tell the potential investor that the worst case scenario is that they can lose their money.

3. Make sure your assumptions section of your business plan is extensive, accurate, and professional.

4. Have a CPA (Certified Public Accountant) prepare your cash flow projections using the NPV (Net Present Value) break-even point.

5. Dress conservatively. Men wear a blue suit, white shirt, and a red tie, for example.

6. Be confident and look them directly in the eye when presenting to U.S. prospects.

7. Have your attorney review any agreement before signing.

When presenting to an angel investor always have your written business plan with you and use it during your meeting with your prospective investor. This is extremely important. When the investor asks to see your business plan, you better have one or you are dead in the water. Not having one is truly a deal killer. If you are empty-handed, you will look amateurish and hurt your credibility. Not having a business plan is like showing up to play football and purposely leaving the football at home. It is your most valuable and most essential tool set when seeking money for business.

Cash for business when you start up and continuous cash flow are two of the most critical factors that determine whether you survive long enough to have a chance to thrive and become profitable. The old adage “cash is king” holds very true here; it is liken unto a beating heart, if it stops, you are no longer living. If your cash flow stops or you run out of cash for business operations, then you are out of business. Often times business angels will agree to provide initial and future funds for business. Future funds for your business are often tied to benchmarks that you will set together when you start your financial relationship.

When dealing with private investors (angel investors), they already know that the worst case scenario is that they could lose their money. If you do not acknowledge this well known fact as being true, they may feel that you are deceiving them, and rightfully so. By getting this out in the open, you become a truth-teller, an honest broker, and as such, more trustworthy.

The assumptions section of your plan is your logic, reasoning, and basis for your conclusions. This shows the potential investor how you think, what you know, and how well you can apply what you know to a business situation. This section is a double-edged-sword. It can be your best friend if you are savvy and know what you are doing, or it can be your worst nightmare if your assumptions are grounded in fantasy instead of fact. The cash flow projections are also a particularly important part of your business plan and should be prepared by a CPA.

The conservative dress mentioned in rule number 5 has been studied and found to increase your ratio of sales closed to number of presentations given. Go with what works, regardless of the urge to dress differently. Be confident and look them in the eye for U.S. prospects. There are other cultures that you should not look in the eye as much, so do your homework if presenting to international prospects and find out their culture norms in advance. This paints a positive picture in your U.S. prospect’s mind, one of confidence, sureness, and honesty.

Have any agreements that your private investor (angel) may offer reviewed by an attorney before you consider signing. Do not fall victim to the pressure of urgency. Take a day to think it over and present it to your attorney. You will look more intelligent to them and will be able to make a much more informed decision.

Business help can be an essential part when seeking cash for business. This is particularly true when it comes to raising money for a new business. Part of your preparation to raise capital is researching, writing, editing, and producing your written business plan. Often times, we as entrepreneurs get so close to our own business plan that we lose our objectivity. In other words, we fall in love with our plan, making it difficult to clearly see any mistakes or flaws in our facts or assumptions. This is why having the objective feedback of another person that is skilled and educated in business is crucial. Seek out the help you need and do it right. I wish you the best of luck in your efforts.

If you would like further help with developing your business plan or would like more information on venture capital, please visit my Amazon Author Page to discover my latest books.

Mr. C. Mark Johnson is a writer, author, and entrepreneur. He holds a Master of Business Administration (MBA) in International Business and numerous certificates. Mr. Johnson is also a United States Air Force veteran. He lives in the Southeastern United States and enjoys traveling, trail walking, walking and training his dog, and the martial arts.

When is the right time to consider VC or Private Equity for your enterprise? Initially every entrepreneur needs to first see if they have exhausted all other options first. Typically, a company would be low on equity when considering private investors. There are however multiple sources of equity capital, including, Friends & Family, Business Angels, VC’s, Corporate/Strategic Investors, Private Equity companies or The Entrepreneur’s own capital.

For those seeking capital of $500k+ look for VC. For smaller investments, entrepreneurs should seek a Business Angel or Debt Capital. An understanding of the different types of funding stages is therefore useful so see below.

Pre-seed funding is funding that is needed prior to physically construct the enterprise. Usually this funding goes to putting together a good business plan that can impress potential investors.

Seed funding is funding that is required to start building the company. It is possible that some companies could if appropriate skip this funding phase, but seed capital is usually the capital that is required to get the basics for a start-up. Usually at seed stage, a company is not yet ready to open for business, and this funding is usually used to rent office space, real estate, equipment needed to produce the company’s product or service

Seed funding is less commonly invested by VC’s and is not necessarily a large amount of funding. Seed funding can range from $100k-$500k. Rarely does it exceed $1m. Seed capital can also be raised from a Business Angel, Friends and Family or the Entrepreneur’s own funds. Only 15% to 25% of VC’s invest in seed funding.

Early stage funding is usually where VC is sought. A company is usually ready to trade but requires additional capital for salaries.

Later stage funding is also known as expansion/growth stage funding is for companies who are doing well and are seeking to expand.

There are numerous ways that entrepreneurs raise seed capital to get started. These conventional ways include raising debt capital from a business lender, merchant bank or angel investor who are willing to invest seed capital into the business. Other more ingenious entrepreneurs raise seed capital through raising debt capital, sweat equity and funding from friends and family. VC is usually raised with early stage funding, i.e. as above, series A or series B funding. In most cases, VC’s will not invest less than $1 million in a company.

Understand these and you will be off to a good start and be taken seriously.

If you need help or guidance contact AnalytIQ Group

All too often I see small business owners missing the mark with their marketing. Sure, it’s easy to do when you specialize in a specific industry niche and you spend your time engulfed in industry sector jargon. However, it’s best to put yourself in your potential customer’s shoes and think your marketing through from their perspective, addressing their most important questions. Your customers want to be able to trust you, to know you are looking out for their interests and that you don’t just see them with Dollar Signs in your sunglasses.

Below is a sample page, perhaps good for a website, brochure, email, or letter. Why not look this over and consider how you might form your own message. Use your own voice, your own style and remember you are talking to your customer across the table for the first time. You know what questions they will ask. Show that you care, that you are working for them, and will go out of your way to get them the best rates, and great service. Here is the sample:

Commercial Real Estate Loans

Are you looking to purchase an income property such as an apartment building, small office building, or retail center? Would you like to put several rental properties in your real estate portfolio into one commercial mortgage? Wish to find a suitable piece of land and develop that property? Do you need a loan for acquisition and construction?

Do you want to buy a business property with a business on it; a restaurant, carwash, service station, laundry mat, hotel, etc.? Are you looking for a commercially zoned property with a warehouse or industrial building on it? Are you expanding an existing business and/or want to own the property under your business rather than paying the monthly lease?

Are you in the agricultural sector, looking for specifically zoned farming property; land for a vineyard, orchard, or crop such as berries, vegetables, or flowers? We have significant experience to make this happen. Our area in Southern CA has one of the best climates in the world, and incredible top soil for growing almost anything.

We can assist with all types of commercial real estate loans including government-guaranteed loans such as FHA, USDA, and HUD. If you are looking for an SBA 7(a) loan or a CDC/SBA 504 loan for commercial real estate we can get it done.

We can assist you with traditional commercial mortgages, commercial bridge loans, or commercial hard money loans. We also have lines on non-traditional sources for hard money commercial real estate loans, which are custom tailored to you needs for complicated projects outside the normal scope of typical commercial real estate loans and mortgage offerings.

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Why not try something like this? Just because the Federal Reserve has raised rates doesn’t mean you have to let new deals and new clients move to your competitors. I hope you will please consider all this and think on it.

Lance Winslow has launched a new provocative series of eBooks on Innovation in America. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net.

Getting into a business partnership has its benefits. It allows all contributors to share the stakes in the business. Depending on the risk appetites of partners, a business can have a general or limited liability partnership. Limited partners are only there to provide funding to the business. They have no say in business operations, neither do they share the responsibility of any debt or other business obligations. General Partners operate the business and share its liabilities as well. Since limited liability partnerships require a lot of paperwork, people usually tend to form general partnerships in businesses.

Things to Consider Before Setting Up A Business Partnership

Business partnerships are a great way to share your profit and loss with someone you can trust. However, a poorly executed partnerships can turn out to be a disaster for the business. Here are some useful ways to protect your interests while forming a new business partnership:

Photo by Tim Mossholder from Pexels

1. Being Sure Of Why You Need a Partner

Before entering into a business partnership with someone, you need to ask yourself why you need a partner. If you are looking for just an investor, then a limited liability partnership should suffice. However, if you are trying to create a tax shield for your business, the general partnership would be a better choice.

Business partners should complement each other in terms of experience and skills. If you are a technology enthusiast, teaming up with a professional with extensive marketing experience can be quite beneficial.

2. Understanding Your Partner’s Current Financial Situation

Before asking someone to commit to your business, you need to understand their financial situation. When starting up a business, there may be some amount of initial capital required. If business partners have enough financial resources, they will not require funding from other resources. This will lower a firm’s debt and increase the owner’s equity.

3. Background Check

Even if you trust someone to be your business partner, there is no harm in performing a background check. Calling a couple of professional and personal references can give you a fair idea about their work ethics. Background checks help you avoid any future surprises when you start working with your business partner. If your business partner is used to sitting late and you are not, you can divide responsibilities accordingly.

It is a good idea to check if your partner has any prior experience in running a new business venture. This will tell you how they performed in their previous endeavors.

4. Have an Attorney Vet the Partnership Documents

Make sure you take legal opinion before signing any partnership agreements. It is one of the most useful ways to protect your rights and interests in a business partnership. It is important to have a good understanding of each clause, as a poorly written agreement can make you run into liability issues.

You should make sure to add or delete any relevant clause before entering into a partnership. This is because it is cumbersome to make amendments once the agreement has been signed.

5. The Partnership Should Be Solely Based On Business Terms

Business partnerships should not be based on personal relationships or preferences. There should be strong accountability measures put in place from the very first day to track performance. Responsibilities should be clearly defined and performing metrics should indicate every individual’s contribution towards the business.

Having a weak accountability and performance measurement system is one of the reasons why many partnerships fail. Rather than putting in their efforts, owners start blaming each other for the wrong decisions and resulting in company losses.

6. The Commitment Level of Your Business Partner

All partnerships start on friendly terms and with great enthusiasm. However, some people lose excitement along the way due to everyday slog. Therefore, you need to understand the commitment level of your partner before entering into a business partnership with them.

Your business partner(s) should be able to show the same level of commitment at every stage of the business. If they do not remain committed to the business, it will reflect in their work and can be detrimental to the business as well. The best way to maintain the commitment level of each business partner is to set desired expectations from every person from the very first day.

While entering into a partnership agreement, you need to have an idea about your partner’s added responsibilities. Responsibilities such as taking care of an elderly parent should be given due thought to set realistic expectations. This gives room for compassion and flexibility in your work ethics.

7. What Will Happen If a Partner Exits the Business

Just like any other contract, a business venture requires a prenup. This would outline what happens in case a partner wishes to exit the business. Some of the questions to answer in such a scenario include:

• • How will the exiting party receive compensation?
  • How will the division of resources take place among the remaining business partners?
  • Also, how will you divide the responsibilities?

8. Who Will Be In Charge Of Daily Operations

Even when there is a 50-50 partnership, someone needs to be in charge of daily operations. Positions including CEO and Director need to be allocated to appropriate individuals including the business partners from the beginning.

This helps in creating an organizational structure and further defining the roles and responsibilities of each stakeholder. When each individual knows what is expected of him or her, they are more likely to perform better in their role.

9. You Share the Same Values and Vision

Entering into a business partnership with someone who shares the same values and vision makes the running of daily operations considerably easy. You can make important business decisions quickly and define long-term strategies. However, sometimes, even the most like-minded individuals can disagree on important decisions. In such cases, it is essential to keep in mind the long-term goals of the business.

Bottom Line

Business partnerships are a great way to share liabilities and increase funding when setting up a new business. To make a business partnership successful, it is important to find a partner that will help you make fruitful decisions for the business. Thus, pay attention to the above-mentioned integral aspects, as a weak partner(s) can prove detrimental for your new venture.

More detailed information and useful advice can be found at https://www.funded.com/

The other day, I was talking with an individual, a seasoned entrepreneur looking to raise a little capital for his next business, and he noted that he only needed a little bit of startup money to get the prototypes going, to prove concept, and to start making money.

Yes, perhaps so, and perhaps not, but how can he come up with the money if he doesn’t have family members to fund it or any money of his own to invest? Okay so let’s talk a little about this case study, perhaps you are in the same boat as a small time entrepreneur?

Entrepreneur says: “I have a manufacturer and sources lined up to make these devices, and it doesn’t cost that much to make them, and I also have beau coups contacts to get them into the market, so I can be launched and operating for very little money.”

Still, contacts are not commitments. Sources are not firm guaranteed delivery. How much, do you have a rough plan? Go ahead and copy it into an email so I can read it. If it is really cheap, you could try the “micro-funding” online sources where folks can chip in small amounts – crowd source type funding, but you’d still need a strong business plan and go get real money to really make this vision happen. What are your thoughts on the crowd source funding concept, I was asked?

Well, here are some of my thoughts, you see first off; Hope and Change are BS right? I mean you have to make it happen, that means “step 1” is still only “step 1” and is no guarantee you can get to the real goal of creating a viable business that will launch these products into the market.

Now then, should you go the crowd sourcing route, does it make sense, is that a good way to raise funds? Well, it can be, and it has worked for some folks, of course a nice business plan helps, but then at the same time you are giving away your idea to the whole world, and describing your invention, innovation, or business model to entrepreneurs, foreign imitators, and others who will merely steal your concept.

But, if you can get your funding and go to step one, quickly, complete that, and get a second round of funding to keep going at a fast pace, it could work, and yes, people have done it, and it is one source of funding. So, please consider all this and think on it.

Lance Winslow has launched a new provocative series of eBooks on Business Subjects. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net

Purchasing an established business can be a daunting and complicated process for many individuals. Understanding the steps involved in the acquisition and doing the necessary planning and preparation will enable the buyer to increase their chances for a successful transaction. Following an established and proven process will not only reduce the stress that often comes with chartering new territory but also eliminate many of the risks and unknowns that often derail a business acquisition.

1. 1. PERSONAL ASSESSMENT

The first step in buying a business starts with introspection. This process should be a thoughtful and honest examination of the candidates’ strengths and weaknesses, skill set, as well as their likes and dislikes. This analysis will assist in narrowing the selection for the logical and best choice of business enterprise to pursue.

What talents, skills, and experience do you bring to the table and what are the types of businesses that can excel with these attributes behind the helm. Here are a number of questions that the introspection phase should involve:

1. 1. What type of business do you want to operate? Is it one where you are the owner/manager or do you prefer to have a management team in place?
   2. What hours are you available to dedicate to the business? Obviously, owning a small business will never be a 9 to 5 endeavor. Having said that, it will be important to determine the time available to manage the business. Do you prefer a B2B business that operates M-F 8-6pm or are you more flexible and would consider a consumer oriented business that is open late or often over the weekends?
   3. Are you successful at sales, meeting with clients, and being the face of the business or are you better suited to a managerial role and running the business from behind the scenes with an established sales force in place?
   4. Are you able to travel and be away from home for several days or do you require a business that keeps you close to the family each day of the week?
   5. Do you have a background and expertise in the manufacturing of products or is it the service industry or distribution model that is more your forte?
   6. Do you have any licenses or certifications that qualify you for a certain business? If not, are you prepared to obtain the necessary credentials required for successful ownership if the targeted business requires such certifications?
   7. What are the things that you really enjoy doing? What are the things that you prefer not to do? The best advice is to start considering businesses in industries that the buyer is passionate about.

These are a few of the questions that will help an individual assess the types of businesses that they are best suited for and assist in narrowing the range of enterprises where the buyers skill set, experience, capabilities and passions can be leveraged.

1. 2. DEVELOP INVESTMENT CRITERIA

Now that you have established the type of business that is a ‘good fit’ the next step is to put pen to paper and concisely define your investment criteria. If you will be seeking bank financing it will be important that the investment criteria match your resume or the transferrable skills that you are bringing to the table. The investment criteria will state the following:

1. 1. 1. What is the price range of the business that you can afford to buy?
      2. What is the geographic location for the business you seek to buy?
      3. What type of business are you looking for?
         • Manufacturing
         • Wholesale/Distribution
         • Service
         • Retail
         • Web-based
      4. What industry should the business be in?
      5. Management structure (owner managed or management team in place)?
      6. Size of business. In terms of:
         • Revenues
         • Profits/Earnings
         • Number of employees
         • Number of locations
      7. Recurring revenue model vs. project based

1. 3. LENDER PREQUALIFICATION

If you plan to use bank financing to acquire a business it is important that you obtain a prequalification before your search process. Not only will this the ‘prequal’ provide you with the data as to how large of a business you qualify to purchase but it will also demonstrate to the business broker and seller that you are a serious buyer. If you are serious about buying a business and will need to obtain financing, receiving a bank prequalification is a required step at some point in time. Therefore, what would be the reason for procrastinating and not having this in place at the outset? There is zero downside and only considerable benefits. Contact your business broker as they will be able to recommend a financial institution that does business acquisition lending for the type of business you are interested in purchasing. This is an area where having the right lender is critical.

1. 4. BUSINESS SEARCH (Individual or Retained)

What is the process that you are following to locate and qualify businesses for purchase? Will you be conducting the search on your own or will you utilize the services of a professional business intermediary or broker. There are literally thousands of business for sale at any given moment. A process needs to be established for conducting the search and qualifying businesses. Few of these businesses are of the quality, caliber, and profit level that distinguish them as being best in breed. What have you done to ensure that you will stand out and be given the proper consideration when engaging a broker regarding a business for sale? The business-for-sale marketplace is plagued by unprepared and non-serious buyers inquiring about any enterprise listed for sale. It takes the right preparation, message, and professional team to establish contact and quickly get to the point where the business can be qualified as a legitimate candidate or one that should be dismissed. Too many prospective buyers fall prey to the late business internet search process and clicking on any business that catches their interest. Unfortunately, serious buyers get lost in the field. This is where the prior steps come in handy – having a personal bio, an established investment criteria, as well as a lender preapproval.

1. 5. QUALIFICATION

A business that is professionally represented for sale will have a number of documents available for review by prospective buyers (e.g. Financials, Asset list, Business Summary, etc). Buyers will need to execute an NDA in addition to demonstrating that they are qualified both from a financial standpoint as well as an experience standpoint to be considered a serious candidate.

At this stage the buyer should already have completed individual research or have first-hand knowledge on the industry. For those without direct industry experience there are trade magazines for just about any business sector not to mention the wealth of data available on the World Wide Web.

The buyer should have a list of questions already prepared, designed for one purpose – determining if the business meets the majority of elements within the investment criteria. The buyer should understand the value of the business. If the business is priced outside of their financial ability they should not be evaluating the business and wasting anyone’s time, most importantly their own. It will be important for a serious buyer to recognize that there is no such thing as a perfect business and each will have different strengths and weaknesses. Most buyers are seeking businesses with growing revenue, a stable customer base, excellent staff, established policy & procedures, and increasing profits. What are the most important qualities that you are seeking? Ranking the criteria is often helpful when qualifying businesses. Finding a business which meets some but not all of the criteria is more the norm than the exception. In many cases, the buyer may be positioned and experienced to improve certain business aspects that are deficient. Following this approach will also enable the buyer to quickly and efficiently eliminate those businesses which will not be a suitable fit, an endeavor that will save all parties considerable time. A quick no is far better than a slow no for everyone’s sake. Lastly, the buyer should recognize that the better the business is, the more they will be expected to pay.

After the initial information exchange the buyer should prepare a second set of questions based upon the particulars of the specific business. After receiving this information the time has been reached where the buyer knows whether their basic criteria has been met. The buyer is clear on the business valuation, the financials, and the business operations and the seller (through the broker) should be clear on how the candidate will be financing the transaction.

A teleconference should be arranged by the business broker to fill in any gaps of information and to allow specific business questions to be asked by the buyer and answered directly by the seller. Should this interaction satisfy the requirements of all parties a personal meeting and site visit is often arranged. During this meeting the buyer, seller, and broker can discuss the framework for a transaction that will satisfy the needs of each party. Only serious contenders should be involved at this point. Now is not the time to waste anyone’s time as a tire-kicker if the goal is not to proceed. Buyers should be clear that regardless of signing the NDA, data such as names of specific clients will not be divulged, not just at this point, but until the transaction closes.

1. 6. LETTER OF INTENT – TERMS SHEET

A Letter of Intent (LOI) and Terms Sheet are typically non-binding documents which are used for one fundamental purpose… to determine if there is a meeting of the minds between the buyer and seller on the price and terms of the sale. The LOI will outline the strategic points of the agreement. Investing time at this stage and preparing a more detailed document will avoid misunderstandings and prevent key terms from being renegotiated later. Some of the broad points that should be addressed include:

1. 1. Who is buying the business?
   2. What is being acquired (Assets, Stock)
   3. Transaction price and how that money is being paid
   4. Loan commitment letter date.
   5. Proposed closing date.
   6. Is there a consulting agreement and if so, what are the terms?
   7. What are the contingencies for the transaction to close?

1. 7. LOAN COMMITMENT LETTER

With an executed (signed) LOI in hand the buyer will now need to obtain a ‘Loan Commitment Letter’ from the lender. A loan commitment letter is produced by the bank and will confirm that the buyer is approved for financing to acquire the business. The Loan Commitment Letter is generated after a thorough review of both the buyer’s data as well as the target business’ data.

1. 8. DUE DILIGENCE

Most business acquisition transactions will require bank funding. The bank will have a proven, structured, and very detailed due diligence process and it is this methodology that the buyer should rely upon when acquiring a business. Why attempt to recreate the wheel? The bank works solely on behalf of the buyer and their fundamental interest is in ensuring that the buyer is acquiring a business that has the required financial framework for the new owner to be successful and positioned to repay the principal and interest on the acquisition loan. The bank will provide a DD checklist that covers a wide variety of documents, including but not limited to the following areas:

1. 1. Financial Statements & Tax Returns
   2. Asset & Inventory List
   3. AP & AR
   4. Corporate Books & Records
   5. Contingent Liabilities
   6. Sales & Marketing Materials
   7. Employee Agreements & Benefit Plans
   8. Equipment, Vehicle, & Property Leases
   9. Customer and Supplier Contracts or other Agreements
   10. Insurance Policies

1. 9. PURCHASE CONTRACT

The business for sale contract aka Definitive Purchase Agreement (DPA) is typically drafted by the Buyer’s ‘Transaction Attorney’ after the LOI is in place. If the proper care was taken in developing the LOI, the DPA should be a much easier document to produce. In circumstances where the major deal components were not properly negotiated or addressed in the LOI, the DPA becomes much for complicated and a higher risk level is associated with the transaction closing.

Upon execution of the LOI, the DD period commences and the DPA should begin being drafted. The DPA is the binding contract covering all aspects of the transaction. The DPA will cover all assets that are connected to the purchase, including but not limited to:

1. 1. Assets/Stock being acquired
   2. Price, Terms, & Payment
   3. Representations & Warranties
   4. Covenants
   5. Indemnification
   6. Non-Competition Agreements
   7. Lease Assignments
   8. Landlord Consents
   9. Consulting Agreements
   10. Asset Allocation

In most transactions the DPA is executed at the closing table but this is not a requirement. In certain circumstances, the buyer and seller will elect to execute this Agreement prior to the actual close.

The DPA is the actual contract that consummates the sale of the business. It will include a number of Schedules and Exhibits detailing all of the terms of the sale. This is a custom Agreement and the level of detail, length, and companion schedules and attachments is predicated on the particular business.

During this stage the buyer should already have their new business entity established (assuming it is not a stock sale), business bank accounts created, insurance policies prepared, merchant credit card accounts (if applicable) in place, etc.

1. 10. THE CLOSING

The closing should be the easiest part of the process. Why? Because all of the above steps have been followed diligently by both parties. For business-for-sale transactions the “closing” is simply the process by which both the buyer and seller execute (sign) all of the documents that have already been discussed and agreed to. Having the right transaction team in place from the start (transaction attorney, business broker, and lender) will make this a smooth process. Each of the advisors has their role and when done properly the closing becomes an uneventful step.

1. 11. TRANSITION

The terms and conditions of the business transition will vary based upon the type and complexity of the individual business. Obviously, the specifics will have already been spelled out and agreed to in the DPA. For some businesses, a customary 4 week transition period is all that is required. For others, the Seller will assist for an extended period of time, often under an employment or consulting contract. When bank financing is involved, especially the SBA, the Seller is typically restricted to a consulting or employment contract that does not extend beyond 12 months. The transition period is the stage where the seller and new owner implement the change of ownership and how that is communicated to employees, customers, suppliers, etc.

The transition of ownership represents a big change and the goal is (often) to make it as seamless as possible. To be effective, this process must be planned in advance with all stakeholders in agreement

In order to get your business off the ground, or to continue operating, you must be able to obtain the financing you need. It’s not easy to get that money – especially if you lack business experience and don’t have a very good credit score. There are things you can do to increase your chances of getting approved. Here are a few tips on how to apply for a small business loan:

• Write a detailed business plan that explains why exactly you need the funding, how you’re planning to spend the money, and what you are going to do in order to pay it back. The last part is especially important, as you must demonstrate that you will be capable of gaining profits, and that through those profits you’ll be able to repay the lender with interest.

• Research the different types of loans and determine which would be the best one for you to send the application to. The SBA loans are backed by the US Small Business Administration, but they typically have strict eligibility requirements. There are term loans that are offered by financial institutions such as credit unions and banks, and can range from short-term to long-term solutions. Other options include lines of credit, merchant cash advance, microloans, crowdfunding, etc.

• At some point when you learn how to apply for a small business loan you should take the time to review your credit history and score. If your business has been around for less than three years, you probably won’t have much of a business credit history. You might have to use your personal credit history, and if it isn’t very good, you might have some problems getting approved. Review the credit reports and consider working with a credit repair agency that will help you remove any potential errors and clear some issues up.

More Tips About How to Apply for a Small Business Loan

• Compare different offers and terms. Pick at least 3 lenders that seem to offer the ideal terms and conditions for you. If you don’t take the time to review multiple options, you might miss out on a lower interest rate. Don’t apply for TOO many loans, however, since it could hurt your credit score.

• Read reviews about each lender you are considering to see what other businesses of similar size of yours are saying about them. Which lender seems to have a good rating with companies in your industry? Which ones are in solid financial standing?

Now that you know how to apply for a small business loan, start getting all of your credit info and reports ready, and create a good business plan. Start with a company like US Business Funding, which has an A+ rating with the BBB.

To get closer to financial freedom, visit George’s website: https://www.financiallygenius.com/us-business-funding/

Any potential investor wants to see a highly readable and believable business plan with a summary, a management team overview and financials but after submitting your plan many people think funding will just arrive when in reality it can take time. By following the steps below you will be able to avoid some of the most obvious mistakes when raising funds for your project

One – If you are a company that has brilliant technical knowledge and no real sales expertise do not advertise it. Information on your web-site including the management team biographies will clearly state the management teams background including their technical expertise, their degrees, their patents and such like but amazingly their go to market strategy in the business plan is usually incomplete and sometimes missing. The solution, make sure you have a credible go to market strategy with a credible sales leader. Nobody will invest if you don’t.

Two – Make sure your website is stunning. Too many companies think that running a business is all about product and the abilities of the technical team – frankly it isn’t. This may be true but today investors will always expect to see more. They want to be convinced and when they will go straight to your web site they are wanting to be wowed! Unfortunately, so many people provide what looks more like a school project. Make sure your website is utterly brilliant and that it doesn’t look cheap. Ask a variety of people if it looks modern, if it looks appealing, particularly the photos and ask if it is easy to navigate. Also please ensure that it is relevant – it’s not about how wonderful you are it’s about how you and your company will solve their challenges.

Three – If you are raising money through a prospectus or private listing make sure that your brochure stacks up. Many people do not place enough time and effort with the visual appeal of a Private Listing Brochure and again you don’t want to provide a sub-standard document that will fail at every level. Spend some time and money to ensure that you convey your messaging in a professional, crisp business-like manner and that it is logical and easy to read. Also don’t use random un verifiable facts – make sure that you underpin everything that you state will be possible with the latest research etc.

Four – don’t use jargon. Anyone who goes to your site or who takes a look at any promotional material designed to answer questions won’t stand for jargon which usually means nothing to them. If you must use jargon or acronyms, make sure there is an explanation – people won’t ask they will vote with their feet! A well written website and brochure is music to the ears of potential investors

Five – Make sure that on your website and all other materials that you have the same font. Make sure that the supporting marketing material looks great and make sure that the stories you tell are verifiable and relevant. Lastly please don’t be controversial People will make their mind up on quality and this includes the look and feel, the overall professional approach. If you can use proper references form proper companies. Don’t add something for the sake of adding something as it has to be contextual and relevant!

Follow these tips and life on the road to raising funds will be much easier.

If you are in the need of investment funds or have a project that needs investment contact AnalytIQ Group.

If you are venturing into the hospitality industry, you have to account for certain factors that can increase the chances of your success. Four such simple, yet important, things that you should always remember include-

• • Be Smart With Your Finances: As with any other business, the smarter you are with your finances, the more likely you are to taste success in the hospitality industry. And this starts right from your investments. Do not make all your investments from your own funds. Instead, use a healthy mix of capital, loans, and other financing options. For example, for acquiring all equipment, you can opt for a hospitality equipment lease from reputed leasing companies. This will allow you to change the equipment whenever you want by just canceling the lease and taking a new lease on the new equipment. As such, wasting capital on purchasing the equipment makes too little sense. In the same way, be very careful with your expenses. Cut down any expense that you feel is unnecessary. But remember to apply discretion here and do a thorough research to ensure that the expense you are cutting off is truly non-productive.

• • Develop Strong Business Relationships: Build beneficial relationships with other businesses and develop your network. But remember that the arrangements should be mutually beneficial. Else, those business relationships won’t last long. For example, you can contact a local store and arrange for them to distribute a 10% discount at your restaurant coupon when customers purchase anything from their store. In this case, both you and the store owner benefit in some way. Such types of marketing and business relationships are far likelier to last than any deal in which only you end up benefiting.

• • Always Be Ready For Emergencies: Unfortunate events can happen anytime. And in the hospitality business, if you are unable to handle such events with minimal damage, you not only risk suffering, loss but may even have to shut down your operations. For example, if there is a fire in your restaurant, then you must ensure that all customers are properly rescued from the place. For this, you must have already taken precautions against fire hazards, preparing strategic exit points at all important locations. This would ensure that people can quickly get out of the place without any mad rush. Not foreseeing such potential hazards can end up costing you dearly, both financially and in terms of reputation.

• • Hire The Most Pleasant Customer Relationship Staff: Always hire the most pleasant person to handle the customers. The more they are able to make the customer feel comfortable and happy, the more your business will grow. As simple as that. As such, if you have to pay a higher salary for getting the right person for the job, don’t hesitate to do it.

If you keep the above in mind, whether it be getting the hospitality equipment by lease, foreseeing emergencies or any of the other things, you will surely taste more success in the industry.

Our hospitality equipment team has over 10 years of experience with helping well-known brands finance their renovation and equipment needs. We’ve provided financing for franchisor-mandated upgrades such as guest room and lobby furniture, TV’s, A/C units, mattresses, and computer reservation systems. Apply for Hospitality equipment lease from AnalytIQ Group

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.”