By financen | September 9, 2019 - 7:32 pm - Posted in Business, Business Loans

Are you a business person from rural America and worried about fund crunch arising out of the working capital gap to run your business smoothly? You are at the right place that can help you deal with the matter. Here you will know how the Department of Agriculture of the US Government ensures commercial loans to individuals, profit and non-profit organizations, and companies whose registered office is located in the rural areas.

Purposes for Which USDA Caters Loans

The US Department of Agriculture (USDA) guarantees the lender a part of the loan disbursed to encourage the rural youth and alongside provides a sustainable backup to the lenders to promote rural employment. The goal is to promote job creation amongst the rural unemployed communities. Here are the purposes for which the loans are processed and disbursed:

  • Purchasing, developing and improving commercial real estate
  • Integrated agricultural processing facilities
  • Business development, modernization, gross repair of machinery or equipment
  • ?       Purchase of new machinery or equipment
  • Purchase of inventories
  • Working capital requirement
  • Debt refinancing to improve cash flow which capacitates creation or saving jobs
  • Acquisition of business if fresh borrowing promotes fresh job opportunities or saves existing jobs

The eligible candidates can avail a wide range of commercial loans with interest rate competitive to the market and flexibility in endues of the fund.

Eligibility Criteria for Getting USDA Business Loan

USDA B&I (Business and Industry) loan is applicable to both fresh and existing business persons. USDA has set a minimum requirement for eligibility criteria though the lending bank or firm may impose additional criteria for their own. However, USDA designed minimum requirements are stated below:

  • Business registered office should be located in a rural area that has a population of less than 50,000.
  • Applicant must be a permanent US citizen, and the permanent citizen must have at least a 51% share of the business.
  • The applicant of loan must be an eligible person by the guidelines prescribed by the USDA. It means that the borrower should be a profit or non-profit organization, company, public body, listed tribe, and an individual within the scope and definition of USDA guidelines for eligibility criteria.

Loan Amount, Interest Rates, and Terms

You can negotiate about the loan amount and other terms and conditions of loan with the lending authority. However, USDA has set the following specification on loan amount and other terms and conditions:

Loan Amount

There is no minimum bar for the loan, but USDA B&I loan has set a maximum general limit not exceeding $10 million with an exception to go up to $25 million or more in some special cases. However, most of the business loans disbursed in general remain between $200,000 and $5 million. Loan amount to be disbursed is assessed based on loan-to-value ratio, and the down payment that needs to be paid. The loan-to-value ratio and down payment are different for different category of loan as prescribed in USDA norm.

Other Terms and Conditions

The maximum permissible loan repayment term for real estate may extend up to 30 years. The maximum period of repayment for purchase of machinery and equipment may be allowed up to the life of the machinery and equipment, or 15 years, whichever is less. The maximum period allowed for a working capital loan may be up to 7 years. The loan amount is amortized over the entire period allowed. It means monthly loan payment is fixed throughout the whole period of repayment, and no lump sum payment is allowed in between. The lender fixes interest rates for commercial loans and generally stays between 6% and 9%.

By financen | August 2, 2019 - 3:09 pm - Posted in Business

Reading this post confirms that you’re interested in growing your business and being successful because it’s only in a business where, when both the employer and employees are comfortable that productivity can be maximized, and growth can take place.

HVAC stands for Heating, Ventilation, and Air-conditioning. It’s a complete system that ensures your business is being carried out in a comfortable and ambient environment.

If you’re wondering which HVAC system is more fitting for your office space in San Francisco, for instance, here are four basic types that you can consider for your business.

1.  The Split HVAC system

This system is found in most homes and small offices. Basically, it features an indoor unit that contains the evaporator coil, blower, and an outdoor unit that contains the compressor and condenser.

This system is thus, ‘split’ into indoor and outdoor units. In some office space San Francisco

designs, the indoor unit can be connected to a heat pump or a furnace.

Among the various components, it also has a thermostat that controls the function of the system and regulates the required temperature, which makes use of ducts for the transfer of air.

Other available accessories include air purifiers, scrubbers, and UV lamp humidifiers.

2.  The Hybrid Heat Pump System

This is an interesting system where the same appliance can either heat or cool the office. Apart from the conventional air-conditioning system, the heat pump is used with a furnace where fuel oil, propane, or natural gas is burned to create heat, and the air is transferred through ducts.

It’s quite possible for an office space has limited size or permission cannot be easily obtained for extra installations. Why have two burly machines when one can do the job?

3.  The Ductless Mini-Split Heat Pump System

This system does not use the duct mechanism, and is, therefore, the preferred choice in offices where ducts are not compatible. Alternatively, it can also be used to complement a ducted system. The ductless system is usually installed directly in the areas of the office that require cooling and heating.

Each outdoor unit supports up to four air-handling indoor units, and the components include wires, thermostat, and other accessories.

4.  The Packaged Heating & Air Conditioning System

As the name implies, this system comes in a complete package, housing the heat pump, condenser, compressor, and evaporator coils, amidst other components in the same unit. It’s usually placed on the roof or the ground. It’s considered to be the best option for offices with limited space for installing separate units.

In choosing the most suitable HVAC system for your business, you should go for energy-efficient brands with good Energy Star Ratings. It helps to look for a less noisy operation, programmable options, and durable parts, which is why you should seek expert advice from qualified personnel to make a better choice.

Apart from your budget, your choice could be limited by the original design and preferences of the property owner, which is usually covered in special clauses in the lease agreement regarding structural alterations that you need to abide by.

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Every company can experience cash flow problems from time to time. However, these problems more pronounced in industries that provide products instead of services, like retail, wholesale, or food. For this reason, entrepreneurs are compelled to take out loans, specifically inventory financing

An inventory loan, much like equipment loan, is a type of short-term loan that is granted to small business owners to help them stock up on inventory. In order to qualify, you must be in the industry long enough to secure a positive history of inventory purchase orders. Once you’ve secured the loan, the financial institutions would use your inventory as collateral in case you fail to pay your dues in time.

Small businesses can benefit from small business financing in the following ways:

1.    Provides Additional Liquid Cash

Businesses are often challenged with meeting the day to day expenses. Most times, a gap can come between the amount needed for expenses and daily sales. Inventory financing helps entrepreneurs maintain positive cash flow in their company. They can use their inventory as leverage and turn it into assets which can help in obtaining short period loans. 

2.    Product Improvement

With the intensifying competition of certain business types, creating a unique product that stands out is vital. Entrepreneurs need to keep up with the latest trends to prevent missing out on increasing sales and attracting new customers. Applying for inventory financing can help you get the capital you need for producing the new products.

3.    Keep Up With Seasonal Demands

A lot of seasonal businesses experience a decline in their product sales during a specific time of the year. For instance, a retail store that sells winter clothes could experience a slow time during the summer. But as the winter seasons draws close, they also need to stock up for inventory in preparation for their busiest time of the year. Inventory loans can help in financing when buying products ahead of time.

4.    Helps with the Sales to Make Business Grow

If your business is in retail, you know how expensive it is to buy a product in large quantities. With inventory financing, you won’t have to worry about this problem since you’ll be equipped with the right funds. With your shelves stocked up at all times, your business will be able to meet the high demands of the customers. You may even get your products at a discount if you buy in bulk.

5.    Prevents Cutting Costs on Some Areas

Businesses experiencing a slow time could cut up costs on some areas and focus purchasing inventory to meet the demands. As a result, some systems within the business could experience disruption. Inventory financing helps you stock up on products while allowing you to operate your business as usual.      

Inventory Financing For Your Business

Inventory financing can be a great alternative to bank loans. With careful considerations, it can provide the answers you need to keep your businesses running. If you’re looking to apply for an inventory financing, SMB Compass might be able to help. With our years of experience, we want nothing more than to provide our clients with the best terms possible. Learn more about us today. Call us at (888) 853-8922 or email us at info@smbcompass.com.

Helpful article: https://www.investopedia.com/terms/i/inventory-financing.asp

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By financen | May 9, 2019 - 5:41 pm - Posted in Business, Company

In the beginning, most entrepreneurs have no idea how (or if) their company is going to grow. They merely have an idea, a motivation to see their plan come to fruition, and an inkling that it can turn into something more.

As there are so many moving parts when it comes to starting a business — and generally only one or two people to manage those moving parts — there are some elements that get overlooked and pushed to the bottom of the mighty “to-do” list. This can be problematic when it relates to something as crucial as keeping your firm protected.

To help out all the entrepreneurs, even if you are just starting, here are three crucial steps to ensure you are protecting your company on all fronts.

1. Hire corporate lawyers.

First things first: From the get-go, you need to have some kind of legal representation. Too many entrepreneurs and small business owners overlook the fact that there are so many parts of their company that could potentially lead to legal trouble. Obviously, you don’t want this to happen, but it is still best to ensure that you are covered in case it does. Should you find yourself in legal hot water, you will thank yourself for having this foresight.

Even when setting up your company, there are common scenarios in which it is best to have professional legal advice. These scenarios include when you are choosing a designated legal entity, writing up an agreement among founders, signing contracts and leases, and raising capital.

Generally, when it comes to hiring legal help, prevention is better than cure. This means that it is highly recommended that you reach out to top law firms in Dubai (or wherever you reside) as soon as possible so that you can get accustomed to them, and vice-versa.

2. Protect your intellectual property.

Another aspect of your business that you want to protect from the get-go is your intellectual property; otherwise, you won’t have anything that differentiates your company from your competitors. After all, your intellectual property is what makes you unique and is at the very core of what makes your products or services innovative and different. So why would you not do everything in your power to ensure it remained your own?

Generally, there are three types of intellectual property protection (trademarks, copyrights, patents) which are each applied to different aspects of your intellectual property.

Trademarks cover logos, company names, phrases, and symbols. Copyrights safeguard original works. Patents protect manufacturing or design processes.

Whether your company requires one of these protections or all three, the critical matter is that you take the steps necessary to protect them. As these protections don’t necessarily extend around the globe, when you are going through the process, make sure to think about which areas of the world you plan on selling your goods and services to, so that you can be proactive in filing for those locales, as well as with a GCC patent or something similar.

3. Guard your data.

In 2019, you need to be on high alert when it comes to protecting your firm’s data. Cybercrime is a significant threat to all kinds of businesses, and it is up to you to make your data as secure as possible.

Start by using an email encryption and security solution that ensures the intended recipients can only read your messages.

Additionally, work on crafting and establishing a security policy so that everyone involved in the company (even if it is just a couple of people) is clear on how to correctly handle company data.

Furthermore, within this policy, do regular due diligence with the firms that store your data. Ask them about their security standards and procedures and ensure that they line up with yours.

Finally, make sure you are continually updating your systems and software so that they are running the most up-to-date versions. Also, regularly back-up crucial information and data so that you will still have access to it should your computers or emails become compromised.

What steps are you taking this year to protect your business? Is there anything you wish you had done sooner? Let us know your thoughts and experiences in the comments below.

AUTHOR BIO

Sharon Danso-Missah is the Head of Marketing at Al Tamimi & Company, the largest law firm in the Middle East, with 17 offices across nine countries. Established in 1989, they are a full service commercial firm combining knowledge, experience and expertise to ensure all clients have access to the best legal solutions that are commercially sound and cost effective.

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By financen | April 12, 2019 - 6:22 pm - Posted in Business, Small Business

You might be thinking, “My company is small. I don’t need corporate videos, do I?” You might want to think again. Corporate videos can help train, inform and motivate your employees, as well as build a cohesive environment. Even for an entrepreneur on the beach, corporate video production daytona beach fl can help your company function more smoothly.

Train Effectively

Training new employees is a necessary task, but it doesn’t have to be a drain on your company’s efficiency. Instead of taking seasoned people off of their regular tasks to bring new folks up to speed, investing in corporate videos to train new employees can save you time and money in the long run. Studies have shown that creative, entertaining, well-produced videos are one of the most effective ways for people to take in new information. If it works for YouTube, it can work for you.

Get Creative 

We all hate boring meetings. Even the best donuts in town aren’t much incentive to encourage employees to sit through yet another update session, but these meetings are often necessary. Creatively produced corporate videos peak employee interest and help get important information across in a way that is not only painless, but enjoyable and effective. Your people might even start to look forward to the Monday morning updates, and this could save you a lot of money on donuts.

Build Cohesion

Effective corporate videos support your brand by forming a group of individuals into a team. Having a sense of belonging improves employee motivation, cohesion and effectiveness. This can make your company run more smoothly by giving your people the feeling that they are supported and encouraged to explore their own creativity. 

By investing in top-quality corporate videos for your company, you can make training new employees more efficient, updates more enjoyable and build an effective and creative team. Harness the power of creativity and make corporate videos work for you.

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By financen | December 15, 2018 - 5:38 pm - Posted in Business

You have a great idea. You are ready to change the world with your plan. You are going to launch this great company in Dubai!

Slow down one second.

Before you go ahead, read on for three essential things to know before starting a business in Dubai.

1. There are plenty of benefits to starting a business in Dubai.

Just in case you weren’t aware of the multitude of benefits thataccompany the decision to start a business in Dubai, here is a rundown of fourof the most compelling reasons.

  • Tax advantages: Dubai does not have income tax, corporate tax or personal tax. Additionally, the Emirate does not implement any foreign exchange restraints or trade quotas.
  • Ability to have 100% foreign ownership: Unlike many countries in the world, the UAE allows 100% foreign ownership of companies, meaning you don’t have to find a local partner to have 51% ownership.
  • Total anonymity: Dubai doesn’t require any business to have public records of their directors and shareholders. In fact, as the government of the UAE endeavors to have an economy that is as open as possible, there are very few rules that interfere with business.
  • Flexible banking options: One of the main reasons Dubai is such a hub for international trade is because foreigners are able to efficiently and quickly open a corporate bank account that holds multiple currencies.

Each of these benefits is significant on its own; however, when youadd them together, they create a scenario that is incredibly appealing for manybusiness owners.

2. There is a new value-added-tax (VAT).

If you are looking to start a business in Dubai, it is essential that you are aware of the new VAT that was implemented this year. The new VAT is small compared to that of most developed countries (5%) and has been designed with the goal of aiding the government of the UAE in formulating a sustainable knowledge economy for the future that is less reliant on oil.

VAT is standard in most countries in the world and, usually, the amount of added VAT is determined as a percentage of the retail sale price of a product.

In the UAE, VAT is being added to the bulk of consumer items that are deemed as being a part of discretionary spending. Examples are electronics, automobiles, clothes and accessories, food and beverage, and entertainment.

Depending on the type of business you are looking to open in Dubai, you may have to look into VAT Registration. If your company creates taxable goods or services and has an annual turnover of Dh375,000 or more, then VAT Registration is mandatory.

To ensure that you are not going to find yourself with a lot of tax penalties, make sure that you know how to register for VAT and that you are completing the necessary paperwork within the appropriate time frame. 

3. You will find a welcoming hand for expats.

Dubai is mostly comprised of expats (90% of the population are fromelsewhere) which means no matter where you are from, you are going to feelwelcome. Plus, by opening a business in Dubai, you are in a position to easily obtain a UAE residencyvisa allowing you to rent property, enter and exit the country whenever youdesire, and become eligible for a Schengen visa.

This means you can be assured that you are going to find other people who havebeen through what you are about to embark on. If you are still concerned aboutaspects of setting up shop, then speak with the bestcompany formation service in Dubai.

By working with a company that has set up plenty of businesses, you can sleepwell at night knowing that you are receivingprofessional guidance through the necessary business setup, registrationand licensing procedures in the UAE.

You want to make sure you are getting everything done thoroughly andappropriately from the get-go so that you can set yourself up for success withyour new venture.

Are you contemplating starting a business in Dubai? What is standing in yourway? Let us know your thoughts in the comments below!

AUTHOR BIO
Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centres offering furnished and ready-to-move offices in Dubai.

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Not many business owners like taking out loans but sometimes, it’s the only way to propel a business to the top. Some of the biggest businesses in the world rely on loans to not only get by, but to keep their finances more manageable. So, if you’re wondering why many small businesses apply for loans, or you’re struggling to find out why your small business might need one, have a look at the below possible reasons.

To Keep Your Business Afloat

The main reason why you might want to apply for a small business loan is to simply keep your business running. For whatever reason your business isn’t doing brilliantly financially, you don’t need to lose any pride in taking out a loan to keep your business afloat. Quite simply, taking a loan out when a business is in a poor financial state could be the difference between turning things around and becoming a success. It could help you consolidate existing debt into easier to manage payments at lower interest, saving you money over the long run.

To Purchase New Equipment to Increase Efficiency

Thousands of businesses around the world fail every year because they are inefficient. The trick to maximum productivity in the workplace is to have the necessary equipment in order to make employees jobs easier and quicker. Whether that’s having a new forklift in the warehouse or a new computer system in the office that’s easier to use – it’s these changes that improve overall efficiency regardless of the working environment. So, if your employees are wasting time with the same repetitive tasks because they don’t have the right equipment, it could be a wise move to get a small business loan to invest in such equipment. More efficient employees could be the difference in not needing to hire another employee.

To Build a Good Credit History

You might not necessarily need a loan now to take your business forward, but it could be a clever option for the future, especially if your business is already in an excellent financial position. Many business owners wouldn’t see the point in applying for a loan if they didn’t need it, but later regret it in the future when they want to expand their business physically and can’t get enough capital to do so because of a lack of payment history. If you’re looking to build credit now to build for the future, online business loans are available at https://www.excelcapmanagement.com – better yet, this company specializes in providing loans for those business with little or a bad credit history.

There are many other possible reasons why you may want to apply for a small business loan: to expand your physical location, to invest in more inventory to increase profit margins and lower the buy price, or because you’ve been presented with a business opportunity that can’t be missed. A small business loan has many uses and doesn’t always need to be considered purely by businesses that are in a bad spot.

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