Tag: Cash

Unsecured Business Loans for Collateral-Free Cash #minority #small #business #grants


#unsecured business loans

#

Credit Cards

Banking

Investing

Mortgages

Loans

Insurance

Credit Cards

Banking

Investing

Mortgages

Loans

Insurance

Unsecured Business Loans for Collateral-Free Cash

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here’s how we make money .

An unsecured business loan has an attractive advantage over a secured loan: You don’t have to put up collateral, such as your home, your business equipment or inventory. So if your small business goes south and you can’t repay the loan, the lender cannot seize your personal or business assets.

Unsecured loans, however, will likely carry a higher APR than secured business loans, but they typically come with higher approval rates and faster funding. Although you don’t need collateral to qualify, you may still need strong business revenue, several years of operating history and fair or better personal credit — though this will depend on the individual lender’s requirements.

Here are five alternative lenders offering unsecured business loans or lines of credit of up to $100,000.

JUMP TO OUR RECOMMENDATIONS:

Lending Club: Lowest borrowing costs among online lenders for unsecured term loans and lines of credit.

OnDeck: Solid choice for an unsecured line of credit for working capital needs and handling unexpected expenses.

StreetShares: Good choice if you have strong credit and need working capital at a competitive APR.

Kabbage: Can be a smart option if you have bad credit and need working capital fast.

Fundbox: Sound choice if you have unpaid customer invoices and want to avoid a credit check.

Unsecured business loans: Summary of funding options.

If you want a term loan or line of credit with low rates: Lending Club

Lending Club’s APR ranges from 8% to 32%, making its loans and lines of credit slightly more expensive than SBA loans but the lowest among unsecured funding options online.

Lending Club also has less stringent requirements than banks, which typically require excellent personal credit and collateral to back loans. The lender requires a minimum 600 credit score, but collateral is only needed on loans and lines of greater than $100,000.

Before you apply for a Lending Club line of credit, find out whether you meet the minimum qualifications.

  • 600+ personal credit score.
  • 2+ years in business.
  • $75,000+ in annual revenue.
  • Own at least 20% of the business.
  • No recent bankruptcies or tax liens.
  • Provide collateral for loans and lines of credit of more than $100,000.

Lending Club is currently unavailable to borrowers in Iowa and Idaho.

If you need cash for working capital or unexpected expenses: OnDeck

OnDeck’s unsecured business line of credit is a good option for business owners who need working capital to manage cash flow or handle unexpected expenses. OnDeck’s APR is slightly higher than Lending Club’s borrowing costs, but requirements are less stringent. To qualify, you need at least a 600 personal credit score, nine months in business and $75,000 in annual revenue.
Each draw on the line of credit is repaid weekly over a period of six months, and borrowers can choose to repay sooner to save on interest with no prepayment penalties.

OnDeck’s line of credit doesn’t require a lien on your business’s assets, although you still have to sign a personal guarantee, which makes you personally liable for repaying the debt if your business fails to.

Before you apply for a OnDeck line of credit, find out whether you meet the lender s minimum qualifications.

  • 600+ personal credit score.
  • 9+ months in business.
  • $75,000+ in annual revenue.
  • No bankruptcies in the last two years.
  • Personal guarantee required.

If you need working capital and have good credit: StreetShares

When you have strong credit and need working capital at a competitive rate, StreetShares is a good option but the maximum loan or line of credit you can qualify for is 20% of your annual revenue. To qualify for StreetShares, you need a personal credit score of 600 or more, a year in business and $25,000 in revenue. The lender offers term loans and lines of credit of up to $100,000, with no collateral required. The possible drawback is the 20% cap: For example, if your business makes $300,000 per year, you can qualify for a loan of up to $60,000.

Before you apply for a StreetShares loan, find out whether you meet the lender s minimum qualifications.

  • 600+ personal credit score.
  • 1+ year in business.
  • $25,000+ in annual revenue.*
  • No bankruptcies in the past three years.
  • No current tax liens or collections (unless you have proper documentation).

You only need 6 months in business if you have $100,000+ in revenue.
StreetShares is currently unavailable to borrowers in North Dakota or South Dakota.

If you need working capital and have bad credit: Kabbage

Kabbage is a good option for borrowers with bad credit who need fast cash for short-term expenses; the company does not have a minimum credit score to qualify.

Funding is fast: Once approved, you can get access to funds immediately or, at most, within a few days. You’ll pay more for it, however, as Kabbage’s loan ranges from 32% to 108% APR. With a short repayment time frame and a higher APR, it’s likely not your best option for a large expense, such a new piece of expensive equipment for your company. Keep in mind that each new draw from the line starts its own six- or 12-month term with its own fee structure, so the cost of borrowing will increase.

Before you apply for a Kabbage loan, find out whether you meet the minimum qualifications.

  • No minimum personal credit score required.
  • 1+ year in business.
  • $50,000+ in annual revenue.
  • A business checking or online payment platform required.

If you have unpaid invoices and want to avoid a credit check: Fundbox

Fundbox is a good option if your business has unpaid customer invoices up to $100,000. The lender provides an unsecured cash advance (no collateral or personal guarantee required) for up to 100% of the value of your invoices, starting at $500. The company provides instant approval, with funding typically in one to three business days.

After receiving the cash advance, you’ll repay it in 12 equal weekly installments, plus a fee. If your customer ends up paying you before then, you can repay the advance in full to save on fees, with no penalties.

Before you apply for Fundbox’s invoice financing, find out whether you meet the lender s minimum qualifications.

  • No minimum personal credit score required.
  • No minimum annual revenue required.
  • Must use online accounting software that can link to Fundbox (such as Quickbooks, FreshBooks, Harvest).

You may also like

Lender reviews

See how different lenders stack up in NerdWallet’s expert reviews

We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines. and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet’s official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.

2016 NerdWallet, Inc. All Rights Reserved

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Additionally, this site may be compensated through third party advertisers. However, the results of our comparison tools, blog content and editorial reviews are based on objective analysis. For more information, please see our Advertiser Disclosure .


Tags : , , , , ,

Chase Ink Cash Review #top #entrepreneurs


#business credit cards

#

Credit Cards

Banking

Investing

Mortgages

Loans

Insurance

Credit Cards

Banking

Investing

Mortgages

Loans

Insurance

Card details

  • Earn $200 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
  • Earn 1% cash back on all other card purchases with no limit to the amount you can earn
  • 0% introductory APR for 12 months on purchases and balance transfers
  • Employee cards at no additional cost
  • No Annual Fee

APR, Variable

APR: 13.49%-19.49% Variable

Cash Advance APR: 25.24%, Variable

Pros

  • Bonus cash back categories
  • $0 annual fee
  • 0% Intro APR for 12 months on purchases and balance transfers

Bonus offer

Earn $200 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening

Disclaimer: Any editorial content is not provided or commissioned by Chase Bank USA, N.A. Opinions expressed here are author s alone, not those of Chase Bank USA, N.A, and have not been reviewed, approved or otherwise endorsed by Chase Bank USA, N.A. Sponsored above means this site may be compensated through the Chase Bank USA, N.A Affiliate Program.

Nerdwallet Review

If your business is looking for a new rewards credit card, look no further than the Ink Cash Business Credit Card. One of the best business cash rewards cards on the market, it offers 5% back on up to $25,000 in spending on office supply store purchases and cable/telecom services. It also gives 2% back on the first $25,000 spent at gas stations and restaurants combined, and 1% back on everything else. In case that’s not enough – here, have a signup bonus: Earn $200 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening.

The Ink Cash Business Credit Card has a $0 annual fee and a 0% Intro APR for 12 months on purchases and balance transfers, and then the ongoing APR of 13.49%-19.49% Variable.

This card is best for businesses that spend a lot on the bonus categories, but not ideal if they spend more than $25,000 a year on office supplies and cable/telecom services combined. Also, frequent travelers should choose a business card that rewards travel purchases and allows for travel redemption, instead.

Want to learn more? Check out our full review of the Ink Cash Business Credit Card for more information.

NerdWallet reviews are the result of independent research by our editorial team while cardholder reviews are contributions from independent users not affiliated with NerdWallet. Banks, issuers and credit card companies are not responsible for any content posted on the NerdWallet site, nor do they endorse or guarantee any posted comments or reviews.

Write a review

Some of the reviews on the NerdWallet site were purchased through a third party provider. Users who post a review directly on the NerdWallet site will not be compensated in any way. Please see our Terms of Use and Posting Guidelines for more information.

2016 NerdWallet, Inc. All Rights Reserved

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

Additionally, this site may be compensated through third party advertisers. However, the results of our comparison tools, blog content and editorial reviews are based on objective analysis. For more information, please see our Advertiser Disclosure .


Tags : , , ,

Online Merchant Cash Advance #small #business #resources


#business cash advance

#

Merchant Cash Advances

What is a merchant cash advance?

When you receive a merchant cash advance, your business gains upfront working capital in exchange for a percentage of future credit card sales. Merchant cash advance companies frequently partner with card processing companies to hold back a percentage of sales revenue. A merchant cash advance is also sometimes referred to as a business cash advance.

How are merchant cash advances different from a business loan?

Merchant cash advances are not small business loans. You are selling future income in exchange for immediate access to working capital. Instead of collecting payments to cover the advance, the merchant will automatically deduct a set percentage of your credit card sales until they recover the advance. In contrast, other small business loans can be paid back using funds from other accounts, rather than being automatically withdrawn from your sales.

Because merchant cash advances are not loans, these agreements are not held to the same laws that regulate lenders, so interest rates can be upwards of 38%.

Is a merchant cash advance a good fit for my business?

Merchant cash advances offer benefits to small businesses, including payment schedule – you only pay back your advance when your business makes sales. If you have had strong sales but struggle with little or bad credit, a merchant cash advance may be a good option for your business.

Your business typically will not qualify for a merchant service cash advance if you have a prior bankruptcy on file, if your business has been in existence for less than one year or if you do not already have the ability to process credit card payments for your customers. This segment of the lending industry is not regulated, so it’s important to understand the costs up front.

While some small businesses may have turned to merchant cash advances in the past because they had few options to get the working capital they need, platform lenders like Kabbage are now a great option for small businesses.

Unlike merchant cash advances, an online loan from Kabbage provides ongoing access to funding. Take what you need, when you need, and only pay fees on the amount you use.

The biggest difference between Kabbage and merchant cash advance companies is the amount business owners pay and how rates are determined. Merchant cash advance companies typically base interest rate charges on the borrower’s credit rating – often with an APR equivalent of more than 38%.

Kabbage, however, looks at a variety of real-time business data – not just a credit score – to determine the financial health of each business. Based on this review, monthly loans fees between 1.5 and 12% are assessed. Kabbage customers can pay off loans early with no penalties and aren’t charged any fees on the remaining months.

Get the security of a business line of credit today

Qualify for a line up to $100,000 in minutes

Loans to suit your business

Refer a Business, Get $200

Help your friends grow their small businesses and earn a gift card! Find out more

Kabbage is powered by the Kabbage Platform. Visit the website

*Kabbage can approve you in minutes when we are able to automatically obtain your business data and instantly verify your bank account. In some situations errors may occur during the sign up process, or we may need to send micro-deposits to confirm your bank account for security purposes. If this is the case, it may take up to several days to provide you access to funding.

2016 Kabbage Inc. All rights reserved. Kabbage is a registered trademark of Kabbage, Inc.
All Kabbage business loans are issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
Celtic Bank Privacy Policy

Are you from the UK?

We have detected that you are accessing the site from the UK, if you want to keep browsing the US site click the close button. You can always browse to the UK site by clicking the site selector at the top of the screen or click the button below.


Tags : , , ,

Easy Online Payday Loan #cash #advance,faxless #payday #loan,instant #payday #loan,internet #payday #loans,loan #payday,no #fax

#

Get Payday Loans Online Fast

Easy Online Payday Loan is the #1 site for all your no fax payday loan needs. When you need a fast payday loan, Easy Online Payday Loan is here to assist you!

What is a Payday Loan?

A payday loan is a short-term loan to cover your spending needs. It is secured against your future paycheck. Cash advance payday loans have grown in popularity over the years and are used by millions of people just like you to pay for unexpected expenses that arise. If there is an emergency and you need money quickly, a cheap personal loan can help. Just be sure to only borrow what you can afford to pay back when you receive your next paycheck.

Payday Loan Cash Advance Requirements

The payday lenders in our network require that you are at least 18 years of age, maintain a regular source of income, and have a direct deposit system set up with your local bank. If you meet the loan qualifications of the lender, you may be on your way to getting the cash you need – get started with us today!!

Get information about
payday loans in your state.

Why Payday Loans Online Beat the Alternatives

Our remarkably fast and easy-to-use form is what sets us apart from the other faxless payday loan sites on the Web. Shopping online for your payday loan is much easier than going to a physical location, making it a faster and more convenient way to get the cash you need all from the comfort of your own home. Our trusted lenders offer superior service to a wide variety of consumers, so your financial history will likely not prevent you from being approved for a loan. You can get up to $1000 deposited in your account as soon as tomorrow. Avoid the bounced checks, overdraft and NSF fees by getting a cash advance loan to hold you over until your next paycheck arrives.

Using our online loan service is more discrete than going to a payday loan store and you don’t have to worry about forgetting the necessary documents. Your transaction information is completely private and what you provide to us stays with us! No one will ever know you got a faxless payday loan. We have all been in your position at some point, so relax and let us help you get back on track quickly and easily with an Easy Online Payday Loan! Fill out the form above or give us a call at 866-634-4358 to get started!

Consumer Notice: Payday loans are intended for short-term financial needs only, and should not be used excessively. If you have mounting debt or credit troubles, Easy Online Payday Loan suggests you seek the advice of a credit professional.

*Most lenders fund the next business day. Cash tranfser times vary betweeen lenders. Easy Online Payday Loan has no control over the time it takes to receive your funds.

**Additional loan requirements may exist. Not all third party lenders have the same qualification requirements; loan services vary from state to state. For more information, please review our Terms of Service.

Actual loan amounts provided by our affiliates vary based on residency and assessed financial eligibility.

IMPORTANT: The information you provide is used to match you with a third party payday loan lender in our network. Easy Online Payday Loan and its affiliate lenders may verify personal information and past loan transactions during the loan approval process. Not all applicants will qualify for the faxless loan approval process or the loan amount requested. Refer to our Privacy Policy for additional information. Source: http://www.nofaxquickcashadvance.com .


Tags : , , , , , , , , , , ,

Business Loans #business #loans, #business #loan, #small #business #loans, #small #business #loan, #personal #loans,

#

Apply Now

Business Loans

Fast Business Lending Solutions Merchant Advisors offers small businesses a platform for business financing. Whether you need funding for expansion or working capital, Merchant Advisors gets you the business financing you need when you need it at minimal costs.

We understand that every business has its unique borrowing needs. Some may want to make new purchases to boost productivity and sales; some need working capital to support operating costs. That’s why we offer the use of innovative technology to offer simple, fast and unsecured business loans. As a non-bank lender, Merchant Advisors offers low longer terms and low rates for more effective business financing. We realize that if a loan costs too much – we may not get paid back! We prevent this by offering affordable business financing.

Unlike bank lending, our financial experts walk you through the loan process to make sure you have a full understanding of our loan process. We strive to make the loan application process as easy as possible; and this is what sets us apart from other lenders.

A Smarter Way to Shop for Business Loans, Compare & Save! Our goal is to serve our clients’ immediate and long term financial needs from basic business loans and credit lines to the most intricate financial situations. In today’s fast paced market time is money and we make sure you waste neither. Our experienced financial advisors keep their finger on the pulse of your business, and stay on top of your industries trends which can affect your entrepreneurial goals or existing enterprise.

If this sounds like something that interests you & benefits you, we highly recommend you APPLY NOW to get started with no upfront fees and no commitment to find out how much you’re eligible for.

What Sets Us Apart from Other Lenders?

  • We deal with the industry’s most trusted brand name providers
  • Increases your chance of approval by constantly adding new private lenders to our portfolio
  • You get the same (if not better) rate going through us to due to our portfolio track record with our lenders
  • Get a loan for your company without any collateral
  • Receive funding within a few business days!
  • Easiest lending platform with minimal information required for approvals
  • Best rates, save time, and save money!
  • Equipment financing, minority loans, startup funding, working capital many others options.

Tags : , , , , , , , , , , , , , , , ,

Refinance home loan – $1, 500 cash back #refinance #car #loan #with #cash #back


#

Refinance home loan – $1,500 cash back

Refinancing your home loan can be a good way way to make sure you have a loan that’s right for you.

It’s also an opportunity to find a good deal on interest rates and fees, or more appropriate loan features if your circumstances have changed. You may want to take the time to consolidate other debts into your home loan..

You might just be looking for a supportive relationship with your bank, and want your home loan with a bank that’s big enough to help and small enough to treat you like a person – not a number.

Start the conversation

Enjoy the convenience of talking with friendly bank staff you trust, either on the phone or face-to-face in the branch.

There are costs involved with refinancing, but we can help with the basics – a suitable home loan with features for you, and a bank that’s easy to bank with.

We’ll take you through the application and approval process to make sure you are comfortable with what happens next. We could provide you with conditional approval and will organise a valuation on your home if required so you know how much your home is worth and get an estimation of how much you could borrow.

Start your journey online

There are 3 reasons why applying online might be the way to go:

  1. You can learn how much you could borrow anytime, anywhere, without knowing the loan type
  2. Receive indicative approval in under 10 minutes
  3. A home loan expert will call to discuss your options and next steps

Credit criteria, fees and charges apply. Before making a decision, it’s best to read the terms and conditions:

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it’s right for you. If you need help, call 13 33 30 .

The information on this page has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice. The taxation position described is a general statement and should be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. St.George – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714

*Based on St.George’s credit criteria, residential lending is not available for Non-Australian Resident borrowers. New home loan applications received from 23 January 2017 to 7 October 2017 and settled 15 December 2017 for refinance purposes where foreign income is not required for serviceability. Offer current as at 23 January 2017 and may be withdrawn at any time. Excludes refinances from Westpac, St.George, BankSA, Bank of Melbourne and RAMS and refinances into Owner-Occupied Interest Only loans and Portfolio Loans. Only one cash back paid per main applicant. Multiple applications submitted by the same main applicant are not eligible. Not available in conjunction with any other special offers. Applicants must have a St.George transaction account linked to the home loan at the time of settlement. Applicants’ home loan repayments must be direct debited from this transaction account. The account must be kept open for at least 60 days after settlement and the cashback will be paid into this account during this period. There may be tax consequences arising from this promotion for our business customers and rental property investors. This is not taxation advice and customers should seek independent advice on any taxation matters.

1. Discounts on products apply at time of application when you tell us you’re an Advantage Package customer

2. Advantage Package Conditions of Use and Terms and Conditions apply and are available at stgeorge.com.au. Annual fee, currently $395, applies.

3. A discount of 0.20% p.a. will apply only if the interest in advance amount is automatically deducted from a St.George transaction account.

The Bank will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences, unless the customer locks a fixed rate in on the loan using our Rate Lock feature. The Rate Lock fee is 0.15%p.a. of the loan amount or $500, whichever is higher, capped at $1000 for loans up to $2mil. For loans above $2mil, the Rate Lock fee is 0.15%p.a. of the loan amount. After fixed period, rate reverts to applicable Standard Variable Rate. Excludes internal switches and portfolio Loans.


Tags : , , , , ,

Title Loans Tucson, AZ 85714 #payday #loans, #online #payday #loans, #cash #advance, #payday #advance,

#

Check Into Cash Tucson

The Annual Percentage Rate (APR) for payday loans varies in each state and depends on the advance amount, fees, and terms of the transaction. The APR for a $100 single-payment payday loan may range from 260.71% to 782.14% on 14 day terms. As a member of CFSA, Check Into Cash abides by the spirit of the Fair Debt Collection Practices Act (FDCPA) as applicable to collect past due accounts. Delinquent accounts may be turned over to a third party collection agency which may adversely affect your credit score. Non-sufficient funds and late fees may apply. Automatic renewals are not available. Renewing a loan will result in additional finance charges and fees.

Customer Notice: A single payday loan or cash advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday loans and cash advances are not recommended as long-term financial solutions. To view a list of the states we service online, please visit our Rates and Terms page. For our privacy policy, please visit our privacy policy page. Notice to CA customers: Check Into Cash is licensed by the Department of Business Oversight pursuant to the California Deferred Deposit Transaction Law. Notice to OH customers: In Ohio, Check Into Cash operates as a registered credit services organization (CSO). The actual lender is an unaffiliated third party. CS.900185.000. In Ohio, Loan By Phone operates as a registered Credit Services Organization (CSO). The actual lender is an unaffiliated third party. CS 900138.000.Ohio in-store license. Notice to UT customers: For questions or complaints please call the Utah Department of Financial Institutions at 801-538-8830 (UT customers only). Notice to LA customers: If you cannot make payment when due, you can ask to enter into an extended payment plan once in a twelve-month period, but the request must be made before payment is due. Should your lender (Check Into Cash) refuse to enter into an extended payment plan upon your request before the due date, contact the Office of Financial Institutions at 1-888-525-9414 (LA customers only). TX customers: In Texas, Check Into Cash operates as a Licensed Credit Access Business (CAB). The actual Lender is an unaffiliated third party. Notice: An advance of money obtained through a Small Loan or Auto Loan is not intended to meet long-term financial needs. A Small Loan or Auto Title Loan should only be used to meet immediate short-term cash needs. Refinancing the loan rather than paying the debt in full when due will require the payment of additional charges. VA customers: CREDITCORP OF VIRGINIA IS LICENSED BY THE STATE CORPORATION COMMISSION. VA LICENSE # VTL-10.

Follow us!


Tags : , , , , , ,

All About Cash Flow #the #stock #market


#business plan outline

#

All About Cash Flow

While we are trained to think of business as sales minus costs and expenses, which is profits, we have to manage cash as well.

Although cash is critical, people think in profits instead of cash. We all do. When you imagine a new business, you think of what it would cost to make the product, what you could sell it for, and what the profits per unit might be. We are trained to think of business as sales minus costs and expenses, which is profits. Unfortunately, we don t spend the profits in a business. We spend cash. Profitable companies go broke because they had all their money tied up in assets and couldn t pay their expenses. Working capital is critical to business health. Unfortunately, we don t see the cash implications as clearly as we should, which is one of the best reasons for proper business planning. We have to manage cash, as well as profits.

A simple example
One of the best ways to understand the dilemma of cash vs. profits is to follow an otherwise-profitable company going broke because it can t meet its obligations. This is a quick and simple example. It also leads us into the relationship between income statement, balance sheet, and cash.

Start with $100, which we ll call capital. At the beginning of this exercise, your balance sheet has assets of $100—the money—and capital of $100. Assets are equal to capital plus liabilities. A summary of the simple financial statement at this point is shown in this first illustration, Starting Numbers.

If you buy a widget for $100 and sell it for $150, you should end up with $50 profit, which is what your income statement covers. Sales minus costs are profit. You should have $150 in the bank. Now your balance sheet shows the same $100 in original capital plus $50 in earnings, which are equal to the $150 you have in cash as an asset. The next illustration shows you how the financials work after the sale.

Buy another widget for $100 and sell it again for $150, and now you have $200 in the bank. Do it again, you have $250 in the bank. Your income statement shows sales of $450, cost of sales of $300, and profit of $150. The illustration shows your income statement and balance sheet at this point.

Adding some realism
Now go back a step and make the situation more realistic. For example, most sales of products to businesses go on terms, with the money due in 30 days. So if you sold that widget on credit you don t have $150 in the bank. You still have $50 in your bottom line, but now you have nothing in the bank. Instead, a customer owes you $150, which is what we call “Accounts Receivable.” Compare the Sell a Widget illustration to this next illustration, Selling on Terms. This is what really happens to the huge number of businesses that sell to other businesses.

Knowing you can buy a widget for $100 and sell it for $150, you get your Widget supplier to sell to you on the same terms you sell, net 30, instead of for cash. Now you have $100 that you owe to suppliers, which is called “Accounts Payable.” You also have $100 worth of widget in inventory. This gives you the case in the following illustration, Buying on Terms, in which you are now poised to sell another widget and make more profit.

You have an extra $100 in assets (the widget in inventory) and an extra $100 as liabilities (Accounts Payable), so you are still in balance. Also, you still have no money. Our next illustration shows the financial picture with sales to businesses on credit and purchase of inventory on credit as a short-term debt.

Now the case is more like what you have with real business numbers, in which you have to manage your cash very carefully, and the amounts sitting in inventory and accounts receivable are significant.

More realism: working capital
Even in the case of the above illustration, the example is completely unrealistic. Where are the running expenses, such as rent, salaries, telephones, or even advertising those widgets? How would they affect the cash situation? How far would we get if we couldn t pay the rent or the telephone bill while waiting for customers to pay us? Furthermore, what supplier would give us a widget on credit when we have no history and no assets? What bank would loan us money in this situation? Banks do loan against inventory and receivables, but only to a certain percentage of total value. What was missing here, all along, was working capital.

Important: In strict accounting terms, working capital is equal to short-term assets minus short-term liabilities. In real terms, however, working capital is the glue that holds your cash flow together. Get it into the bank before you need it, or you won t survive the unexpected.

The following illustration goes back to the beginning of this whole example and does it right, with enough capital in the beginning to finance the company.

Instead of starting with $100 as capital, this business looks a lot better with starting capital of $400. With this additional capital from the start, buying on credit and borrowing against assets is more realistic. In this scenario, working capital is up to $550. Now it has a proper input of working capital at the beginning. With even the barest of business plans, we could tell that $100 wasn t enough to get this business going.

I hope the theoretical examples help make the concepts clear. If you followed these illustrations, you can see some enormous implications for running a business.

Important: Every dollar in accounts receivable means a dollar less in cash. Every dollar of inventory is a dollar less in cash. Every dollar of accounts payable is a dollar more in cash.

How LivePlan makes your business more successful

If you re writing a business plan you’re in luck. Online business planning software makes it easier than ever before to put together a business plan for your business.

As you ll see in a moment LivePlan is more than just business plan software though. It s a knowledgable guide combined with a professional designer coupled with a financial wizard. It ll help you get over the three most common business hurdles with ease.

Let s take a look at those common hurdles and see how producing a top notch business plan sets your business up for success.


Tags : , , ,

Cash Flow Definition #business #promotional #items


#cash flow business

#

Cash Flow

What is ‘Cash Flow’

Cash flow is the net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company’s liquid assets are increasing, enabling it to settle debts. reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges. Negative cash flow indicates that a company’s liquid assets are decreasing. Net cash flow is distinguished from net income. which includes accounts receivable and other items for which payment has not actually been received. Cash flow is used to assess the quality of a company’s income, that is, how liquid it is, which can indicate whether the company is positioned to remain solvent .

VIDEO

Loading the player.

BREAKING DOWN ‘Cash Flow’

The accrual accounting method allows companies to count their chickens before they hatch, so to speak, by considering credit as part of a company’s income. “Accounts receivable ” and “settlement due from customers” can appear as line items in the assets portion of a company’s balance sheet. but these items do not represent completed transactions, for which payment has been received. They do not, therefore, count as cash. (Note that the credit vs. cash distinction is not the same as it is in everyday terminology; proceeds from credit card transactions are considered cash once they are transferred.)

The opposite can also be true. A company may be receiving massive inflows of cash, but only because it is selling off its long-term assets. A company that is selling itself for parts may be building up liquidity. but it is limiting its potential for growth in the long term, and perhaps setting itself up to fail. In the same vein, a company may be taking in cash by issuing bonds and taking on unsustainable levels of debt. For these reasons it is necessary to view a company’s cash flow statement. balance sheet and income statement together.

Cash Flow Statement

Often called the “statement of cash flows,” the cash flow statement indicates whether a company’s income is languishing in the form of IOUs – not a sustainable situation in the long term – or is translating into cash flow. Even very profitable companies, as measured by their net incomes. can become insolvent if they do not have the cash and cash-equivalents to settle short-term liabilities. If a company’s profit is tied up in accounts receivable, prepaid expenses and inventory. it may not have the liquidity to survive a downturn in its business or a lawsuit. Cash flow determines the quality of a company’s income; if net cash flow is less than net income, that could be a cause for concern.

Cash flow statements are divided into three categories: operating cash flow. investing cash flow and financing cash flow. Operating cash flows are those related to a company’s operations, that is, its day-to-day business. Investing cash flows relate to its investments in businesses through acquisition ; in long-term assets, such as towers for a telecom provider; and in securities. Financing cash flows relate to a company’s investors and creditors: dividends paid to stockholders would be recorded here, as would cash proceeds from issuing bonds.

Free cash flow is defined as a company’s operating cash flow minus capital expenditures. This is the money that can be used to pay dividends. buy back stock. pay off debt and expand the business.

Real World Example

Below is a reproduction of Wal-Mart Stores Inc.’s (WMT ) cash flow statement for the quarter ended April 30, 2015. All amounts are in million of U.S. dollars.

Cash flows from operating activities:


Tags : , ,

Calculating Actual Cash Value, Part 19: Pennsylvania #actual #cash #value #homeowners #insurance


#

Property Insurance Coverage
Law Blog

Home Insurance Calculating Actual Cash Value, Part 19: Pennsylvania

Calculating Actual Cash Value, Part 19: Pennsylvania

It was an exciting down to the wire finish on Monday night for the NCAA basketball championship. Congratulation to Villanova! This week my blog in the series on calculating actual cash value will focus on Pennsylvania.

In Pennsylvania, actual cash value has consistently been interpreted to mean repair or replacement costs less depreciation. 1

In Gilderman v. State Farm Insurance Company . 2 the Superior Court held that where an insurance policy provides that the insurer will pay repair and replacement costs and that it will pay actual cash value in advance of actual repair or replacement of a covered loss, the insurer may not automatically withhold both depreciation and a flat 20% representing contractor overhead and profit from its advance payment.

Another issue that comes up when discussing ACV is whether labor can be depreciated. In Pennsylvania, for partial losses, the answer is no:

[I]n partial loss situations, in the absence of clear language to the contrary, an insurer may not deduct depreciation from the replacement cost of a policy and that the phrase ‘actual cash value’ may not be interpreted as including a depreciation deduction, where such deduction would thwart the insured s expectation to be made whole. 3

We are nearing the halfway point in the number of states covered in this series. Feel free to send me an email or leave a comment below with a request for the next state I will address in this blog series.

1 Gilderman v. State Farm Ins. Co.. 649 A.2d.941, 945 (Pa. Super Ct. 1994) .
2 Id.
3 Kane v. State Farm Fire Cas. Co.. 2003 PA Super 502, ¶ 19, 841 A.2d 1038, 1047 (Pa. Super. 2003) .

This is an issue that is very important to me. I am in charge of all policy wording for the Property Practice. I would really like to read the 18 previous issues on this subject. How do I obtain them?

Steven Enter into Google s word search box Calculating Actual Cash Value, Part 1 . And continue the search by adding Part 2, Part 3, and ect. accordingly.

Correct me if I am wrong, but I read this as; I will continue to pay the highly inflated premiums, with little or no guarantees that my insurance will actually cover the loss. So if I live in a 40 year home that is destroyed by fire, or natural disaster. I pay a premium based on a value of $250,000,but I will have everything depreciated and end up only getting monies to what STATE FARM determines to be it s value or useful life. Will that mean my house would only be useful for another 20 years, therefore it was 60% used up and they will only pay me 40% of the insured value? What can be done about this? This is absurd, besides it should be illegal. They don t offer to reduce premiums at a depreciated rate.

This change could potentially reduce or eliminate coverage depending on how it is interpreted, and in that regard should viewed as an actual or potential reduction in or elimination of coverage.

Same state; same insurer. Will they offer a Kelly Blue Book to rate our property with a depreciated value Before we renew our policies?
Fraudulent Legalese.

Seriously, I m am requesting the next state you address is Illinois. The quote is directly from my policy renewal.

Thank you for your time and any help you provide.

Thank you for your comment. I previously addressed Illinois. Here is a link to the blog post:

I just got my renewal from State Farm with FE 3650
I live in Missouri.
It also stated if you wish to secure coverages from another insurance carrier, contact your insurance producer immediately..
I think they are trying to drop all homeowners insurance like they did in California after the earth Quake, they dropped earthquake insurance.

About

Established in 1985, Merlin Law Group is a leading insurance litigation law firm committed to assisting policyholders receive fair and just outcomes from their insurance companies. Property insurance law is a highly complex and specialized area of law and our firm represents policyholders when claims are denied, delayed or underpaid. To learn more about Merlin Law Group visit: www.merlinlawgroup.com .

Stay Connected


Tags : , , , ,