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Small Business and Personal Debt Settlement – Why is it So Important?

Why is it essential to get rid of your personal debts if you want to run your small business properly? One of the biggest advantages of running a small business is that you can avoid all formalities and technicalities. You can use your personal credit card to make any payment for your small business without being answerable to anybody.

You can withdraw money from your business and repay your credit card debt with no questions asked. This gives you the ability to exploit business opportunities better.

However, this interrelation between small business and personal debt can also work to your disadvantage. If you are over drawn on your credit cards and if lenders are putting pressure, you may develop the tendency of pulling money out of your small business to repay these debts.

This is not a smart move because the money that you have earned from your small business, which ought to be reinvested in the business, will be pulled out of the same. Sooner or later, you will find it difficult to repay your debts on time as well.

Hence, do not presume that excessive debts in your personal life will have no bearing on your small business. If your lenders are prepared to offer generous settlement for your personal credit cards, you should make use this not only to improve your personal finances but also your small business finances.

If you manage to get rid of your personal credit card problems, you can start using the same for your business again. This will help you steal a march over all other competitors who are still struggling with debt. Of course, a personal bankruptcy will have an immense impact on your small business as well.

Considering the complex relationship between your personal and your commercial finances, it is best to be proactive and innovative. The world may be warning you to avoid settlement companies. However, keep in mind that it is inadvisable to deal with fraudulent companies only.

If you deal with genuine companies, you will benefit a lot. Rather than running away from settlement companies, it makes sense to put your effort to identify the right ones. The World Wide Web will help you in this regard.

You can get in touch with numerous companies in and around your locality. You can find more about their business practices and determine where they are trustworthy or not. You can do all this with assistance from World Wide Web.

How Important is Financing For Small Business

Financing for a small business without good credit may seem impossible, but this is critical for any business to grow. Without financing, a business can not meet growing demands or buy equipment and facilities needed to expand. With the financial crisis that is occurring, credit and financing are getting harder to come by using banks and traditional financing methods. There are financing options available for businesses that do not have impeccable credit, but many times this is a scam, or it may not be as good as it seems.

Any business needs to have financing options available, especially in the current economic crisis. Even huge companies like the big three auto makers, including GM, Ford, and Chrysler, are experiencing difficulty because of a lack of financing. If these large corporations can not survive without credit, smaller businesses do not stand a chance. Financing may be needed for many different reasons. The business may need another warehouse, or to enlarge the current one. More inventory may be needed to create more products, which are needed because of increased consumer demand. Maybe the company needs a larger workforce so the business and product sales can expand. Whatever the reason is that financing is needed, without it the company may become stagnant due to an inability to grow, because capital is not available due to lack of financing.

Sometimes it may appear that you have many financing options, until you look at most of these options closely. Many times the financing may take the form of credit card limits, or vendor credit. These forms of financing may not be sufficient to keep a small business afloat. There are also programs which offer cash financing, but they offer it in such a low amount that it is not helpful. Unsecured business credit in the amounts that you need may seem like an impossible dream, but it is possible. Many businesses, especially small businesses, may not have an extended history or credit, and this can be a problem as well. Many small businesses may not be incorporated or have a strong history in business areas, which may cause most lenders to turn down a financing or loan application. Instead a program is needed that does not consider the credit history or the years in business when deciding to offer financing.

There is a program that can help you get the business financing you need, regardless of how big or small your company is. There are no credit or history checks with this program. No tax returns or business financial records are needed, and the entire process normally takes between thirty and forty five days. This program offers unsecured business financing, and the application process is simple. With the economic and financial crisis that is occurring, this program can offer a way for your small business to get the financing needed to stay competitive and in business, without having to jump through all the usual hoops, and face rejection again and again.

Can Start Ups Get Free Grants And Loan Guarantees From The Small Business Administration?

The Small Business Administration (SBA) is the first place every start-up business person and entrepreneur thinks they should go for small business grants. There is good and bad news on this: Yes, it is a great first place to go when you are starting your business because they provide free counseling and financial assistance, however, the SBA itself does not hand out free grant money to start or expand a business. Anyone who tells you otherwise is mistaken, or pulling your leg.

The SBA is an independent agency of the federal government and its purpose has remained the same since its creation in 1953. According to their website the purpose of the SBA is “To aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.” The primary way in which the SBA does this is not by providing grants, but by administering low interest loans, or loan guarantees, which give small business owners like you access to start-up money from private lenders all over the nation. These are loans that you might not otherwise be able to get without the guarantee from the small business administration. The SBA does not directly provide you with small business financing, they are an intermediary and they contract with private lending institutions in every State. A loan guarantee from SBA gives a bank the added security it needs to lend you money. If the borrower’s business doesn’t get off the ground as quickly as planned and the business ends up defaulting on the loan the SBA will repay all or part of the loan – usually about 40% of the loan will be guaranteed.

This type of financial assistance may not be as good as free grant money, but if it is money you can actually get your hands on reasonably quickly, on decent terms, and the repayment schedule can fit within your budget, then it’s a great deal and probably your best option as far as financial assistance from the Small Business Administration. If you need a line of credit at any point in your business start-up or expansion, be sure to check out these SBA resources. Keep in mind that even if in the past you have been unable to borrow money elsewhere, it doesn’t mean you won’t be able to get business financing now. A loan guarantee from SBA will help you secure financing when it would otherwise be unobtainable based on your credit, perceived ability to repay the loan and other factors. They also have programs and ways of streamlining the application procedures necessary to provide financial assistance to the small business community.