Financing Your Business With Regular SBA Loans

Many banks won’t loan money to small businesses without the federal government guarantee under a variety of SBA programs.

Charles Keller was an industrial designer who started making cus­tom furniture in his North Andover, Massachusetts, garage in the early 1970s. Driven by the demand of family and friends, the business grew until Charlie incorporated C.W. Keller & Associates in 1976. The company, which specializes in distinctive wood and custom wood-veneer products for retail, commercial, and residential customers, moved to Plaistow, New Hampshire, in 1989.

The company grew with the help of three different loans guaranteed by the U.S. Small Business Administration (SBA). Charlie witnessed first­hand the evolution of the loan program that Congress initiated as capital of last resort for small businesses who could not borrow any other way. The program has grown into the source of 30 percent of long-term loans to small businesses today. The SBA’s largest loan program is called 7(a), which encompasses several special-interest loans with various require­ments, such as microloans, employee stock ownership plans, pollution control, and export working capital loans. (more…)

| Finance Management |

Cost Management of Landlord Insurance

In cases where you have been able to commission landlord insurance it is important that you look at the cost implications of the decision that you have made. After all the other factors have been taken into consideration, the costs of your insurance will be one of the critical factors that determine the level of profitability. Most of these decisions have to be based on logic rather than assumptions. The initial cost is just the beginning of the process and you need to take other factors into consideration.

Generally speaking these are the issues that might be of relevance :
1. The deposit : You will have to pay some sort of deposit before the landlord insurance becomes active. This will vary depending on the value of the product that you are buying but also the type of insurer that you are using. Some insurers will give you discounts on the deposit in order to ensure that you continue to select them as the preferred provider. This is part of the marketing strategy that you have to get used to in the long run. You also need to work out the details of the various additional costs outside the initial deposit. This will enable you to plan well for all eventualities. (more…)

| Estate |