How Do Small Business Loans Work, Bizfluent, how do business loans work.#How #do #business
How Do Small Business Loans Work?
Obtaining financing helps build your business, but it’s not always easy to do. Securing a business loan takes time and patience, whether you need $5,000 or $5 million, since banks are not in the position to grant every business a loan. Because small businesses are considered risky ventures by lenders, starting your application early and effectively navigating the process is critical..
A business loan is based on your business needs, and your own qualifications to start and run your company. But that’s just the start. The bank also looks closely at your personal finances, since you’ll be liable for repaying the loan if your business goes under or you’re otherwise unable to make the payments. Banks usually require small business owners to use personal assets, such as your home or car, to secure the loan. Lenders often work with the Small Business Administration, a government agency that backs many of the commercial loans underwritten by banks.
Banks may give loans through their internal lending programs, or they may choose to guarantee the loan through the SBA. SBA-backed loans include the 7(a) primary loan program that covers a variety of small business financing, and the CDC/504 Program that helps businesses obtain new facility or modernize their facilities. The CDC program is ideal if you have an established business with a proven track record.
The bank will require you to provide a business plan that includes financial statements and projections about future revenue. The plan must indicate what you intend to do with the money, such as increasing your marketing efforts or paying for supplies to meet demand. To improve your chances of getting a loan, the SBA provides counseling through a volunteer program, known as SCORE, to help you create a business plan that meets the lender’s requirements.
Before you begin the tedious process of obtaining a loan, note the disadvantages. A small business loan is based on your personal ability to pay, so you’re liable for making the payments until the loan is paid off no matter what happens to your business. You may go through all the work to satisfy the bank’s requirements only to find out you still don’t qualify, or the bank may only give you a small portion of the money you need. This would require you to act quickly to secure additional financing.
#international business jobs
What Can I Do with My International Business Major?
The International Business major, in the McDonough School of Business, provides excellent preparation for students interested in careers involving the coordination of human and material resources toward the achievement of the international goals of the organization. In addition, international business requires special skills to adapt management methods to the needs of foreign environments.
The concentration is intended to prepare the student for administrative positions in international divisions of American companies; careers in the national or international government agencies concerned with international trade development, the establishment of international businesses; and careers in commercial and investment banking.
The study of international business allows for the development of a core set of skills sought after by employers in a wide range of occupational settings. A sampling of representative skills and abilities follows.
- Analyze complex and unstructured data
- Evaluate risks and opportunities
- Coursework in Finance/Marketing/Management
- Communicate clearly and persuasively
- Diplomacy and negotiating
- Public speaking
- Awareness of international figures and news
- Cultural sensitivity
- Understanding of international politics
- Understanding of trade regulations
Sample Internship Opportunities
- Foreign companies operating in the United States (e.g. Chanel, Airbus)
- Government Agencies (e.g. US Department of Commerce, State, Treasury)
- Government Relations (e.g. Council on Foreign Relations)
- International Banks (e.g. World Bank, Export-Import Bank, International Finance Corporation)
- Multinational corporations (e.g. Viacom, L’Oreal, Hilton, Ogilvy Mather, Saatchi Saatchi, Disney, Goldman Sachs)
- Nonprofit Organizations (e.g. Human Rights Watch, Amnesty International)
Where are Georgetown International Business Majors Now?
- Financial Analyst
- Stock Broker
- Product Manager
- Consultant Foreign Exchange Trader
- Foreign Service Officer
- Trade Specialist
- Import/Export Coordinator
- Lawyer Marketing Manager
- Public Relations Specialist
- Advertising Executive
- Human Resources/Human Capitol Management
Relevant Web Sites and Publications
For information about career options, internship and full-time opportunities, contact the Career Education Center at One Leavey Center, (202) 687-3493.
When Do I Need a Business Lawyer for My Small Business? #work #from #home
When Do I Need a Business Lawyer for My Small Business?
Among the countless worries for entrepreneurs who are starting or are already running a small business is the question of whether they need a business lawyer. The perception is that attorneys charge high rates and many small businesses don’t have much, if any, extra capital with which to pay lawyers. As a result, most small business owners only hire an attorney experienced with business matters when confronted with a serious legal problem (e.g. you’re sued by a customer). However, legal help is a cost of doing business that often saves you money and helps your business in the long run.
While you certainly don’t need an attorney for every step of running your business, an ounce of prevention is worth a pound of the cure. This article will explain when you can cover legal issues on your own or with minimal attorney assistance and when you will definitely need a business lawyer.
Issues You Can Handle on Your Own
There are certain matters that are fairly straightforward and/or not unduly difficult to learn and therefore do not require the services of an attorney who charges at least $200 per hour. There are enough expenses associated with running a business, why not save yourself a load of money and do it yourself if you can?
The following is a list of some tasks that business owners should consider taking on themselves (with the aid of self-help resources, online and in print):
- Writing a business plan
- Researching and picking a name for your business (previously trademarked business names can be researched online)
- Reserving a domain name for your website
- Creating a legal partnership agreement, limited liability company (LLC) operating agreement, or shareholder’s agreement (see Choosing a Legal Structure )
- Applying for an employer identification number (EIN), which you will need for employee tax purposes
- Applying for any licenses and permits the business requires
- Interviewing and hiring employees (there are federal and state antidiscrimination laws which regulate the hiring of employees)
- Submitting necessary IRS forms
- Documenting LLC meetings
- Hiring independent contractors and contracting with vendors
- Creating contracts for use with customers or clients
- Creating a buy-sell agreement with partners
- Updating any partnership, LLC, or shareholder’s agreements under which you are currently operating
- Handling audits initiated by the IRS
The above is not an exhaustive list of legal tasks which small business owners can do on their own. It should be stated that if your business is well-funded or you feel that you need the assistance of an attorney, you can always retain a lawyer to help you with everything listed above.
Issues Where You Will Need a Business Lawyer
Most of the issues outlined above can be handled by any intelligent business owner (if you can run a business, you can certainly fill out IRS forms or fill in boilerplate business forms). There are times, however, when a business faces issues that are too complex, too time consuming, or fraught with liability issues. At that point,the wisest move is to retain a business lawyer.
A few examples include:
- Former, current, or prospective employees suing on the grounds of discrimination in hiring, firing, or hostile work environment
- Local, state, or federal government entities filing complaints or investigating your business for violation of any laws.
- You want to make a special allocation of profits and losses or you want to contribute appreciated property to your partnership or LLC agreement
- An environmental issue arises and your business is involved (even if your business didn’t cause the environmental problem, you may be penalized)
- Negotiating for the sale or your company or for the acquisition of another company or its assets
An Ounce of Prevention
While you certainly need to retain an attorney for the serious issues above, your emphasis should be placed on preventing such occurrences in the first place. Prevention does not necessarily involve hiring an attorney, though consulting with one wouldn’t hurt. By the time you or your business is sued, the preventable damage has been done and the only question that remains is how much you’ll be paying in attorney’s fees, court fees, and damages.
For example, by the time a prospective employee files a lawsuit claiming gender discrimination based in part upon questions posed at the job interview, all you can do is hire an attorney to defend the lawsuit. If, on the other hand, you had done your own research on anti-discrimination laws, or you had consulted an attorney beforehand, you would have known not to inquire as to whether the applicant was pregnant or planned on becoming pregnant. The small effort at the beginning of the process would save you an enormous headache later.
To prevent unnecessary attorney costs at the inception of your business as well as tremendous costs after a lawsuit has been filed, you might consider a consultation arrangement with an attorney. Such an arrangement would entail you doing most of the legwork of research and the attorney providing legal review or guidance.
For example, you might use self help and online sources to create a contract with a vendor and ask an attorney to simply review and offer suggestions. Or from the previous example, you might research types of questions to ask during an interview and then send the list to an attorney for his or her approval. This way, you prevent the potential headache later and the cost to you is minimal because you’ve already done most of the work and the attorney simply reviews the document.
Find the Right Attorney for Your Business Needs
You won’t need a lawyer for each and every legal issue that comes up in your business. But when you do, it’s good to know where to find the right one. Check FindLaw’s legal directory for a business and commercial law attorney near you.
#how do business loans work
How do business loans work?
To explain how business loans work, I think it’s best to first talk about the two main types of lenders to business owners: traditional banks (Chase, Wells Fargo, Bank of America) and online lenders (OnDeck, Lending Club, Funding Club).
Traditional bank loans can be your lowest-rate option, if you qualify. But bank loans are extremely hard to come by — 4 out of 5 business owners are turned away by banks. And bank loans often exclude certain industries, take far longer to process, and can only be used for limited purposes.
With online lenders, you have several different kinds of loans available. They have a quick turnaround, are available to more business owners, and have a wide variety of options.
Here are the main types of loans available and a quick explanation on how each works:
- SBA Loan: This loan is guaranteed by the Small Business Administration (government-guaranteed), a federal agency that helps foster entrepreneurship. The loan is generally longer term, and has a reasonable interest rate. You are lent money, which you repay over a set period of time.
- Traditional Term Loan: A term loan is similar to a traditional loan you would obtain from a bank. You are lent a set amount which you pay back over a set period of time.
- Equipment Financing: You are lent money for the purpose of purchasing equipment for your business. The equipment serves as collateral for the loan. It’s the like buying a car — you are lent money up front to buy the asset, then you pay back the value borrowed over time.
- Business Line of Credit: You are given access to a credit limit that you can draw from whenever you need the money. It gives you a cushion to tap into, and you only pay interest on funds drawn.
- Invoice Financing: Invoice financing allows you to sell your outstanding invoices to a lender, who will front you money in exchange. While you lose a portion of your potential profits, you are able to get cash immediately rather than waiting on your customers to pay.
- Short Term Business Loan: A term loan with a very quick payback period, as short as 3 months.
- Merchant Cash Advance: The lender gives you cash up front in exchange for a percent of daily credit card sales for a set future period.
If you want more info on how each type of loan works, we put together a comprehensive guide on our site: Which Business Loan is Best For You?
Hope this helps!
I work as a small business finance expert for Yellowstone Capital, a small business lender that has helped over 250,000 small business owners secure more than $500 million in funding for their businesses.
Banks look at many aspects of the company, as well as the business owner, before making a decision on whether to extend a line of credit.
Business: Revenue, profit, business plan, investors, outstanding loans
Owner: Credit history/score, outstanding debt, previous business history, personal referrals, current employment
You have to make sure that you have everything in order before you go in to apply for a loan, especially if your business is just getting off the ground.
Of course this leaves out the approval process, and where to go if you aren t able to secure a loan due to credit issues, but this covers at least how to choose the right bank if you go that route.
Here’s our own take on your question that might help shed a little more light on the topic:
Here’s the official Wikipedia entry on the subject:
Here’s a video that helps explain why small business loans can be so difficult to get approved for at traditional lending institutions like banks and credit unions:
If you have any more questions, please feel free to read any of our blog posts on the topic of small business loans.
Tony D. and the Yellowstone Team
What can I do with a business and management studies degree? #start #your #own
#business management degree
Business and management studies
The skills you gain on a business and management studies degree will allow you to start contributing to your employer’s organisation quickly and effectively
Jobs directly related to your degree include:
Jobs where your degree would be useful include:
Remember that many employers accept applications from graduates with any degree subject, so don’t restrict your thinking to the jobs listed here.
Related case studies
Head of marketing
A business and management studies degree prepares you for a career in business, which may stretch across any sector or industry. Your career options are therefore varied. Try to decide on the area you want to work in and aim to get relevant work experience.
You can gain work experience at university through extracurricular activities such as club membership or taking a role on a society that will develop your team-building, business or finance skills. You could also try to get a part-time job in an area related to your chosen career. Something that provides commercial skills or gives you knowledge in business functions and how organisations operate will be helpful.
Search for placements and find out more about work experience and internships .
Industries as diverse as chemicals, utilities, fashion, health, grocery and construction all require functional managers with a clear understanding of systems, efficiency and operational issues. Opportunities exist in management and analysis roles with employers in the private, public and voluntary sectors.
Graduate training schemes offered by large employers frequently focus on commercial roles. Many give experience in several departments but others encourage specialisation from the outset.
Skills for your CV
Studying for a business and management studies degree allows you to develop a broad understanding of business organisations and provides you with subject-specific knowledge in areas such as markets, customers, finance, operations, communication, information technology and business policy and strategy. Business issues are often addressed at a European and international level.
You will gain a number of transferable skills on your course including:
- an understanding of organisational behaviour and structure;
- analytical and critical thinking;
- a creative approach to problem solving;
- persuasive written and oral communication;
- numeracy and the ability to research, interpret and use business and financial data;
- self-reliance, initiative and the ability to manage time, projects and resources;
- appreciation of the causes and effects of economic and other external changes.
Some graduates choose to undertake further study in subjects such as marketing, finance, human resources, computing/ICT and international business management in order to develop their expertise in a particular area of business. Studying for an MBA is another option.
Those combining study with a job often work towards a professional qualification, usually supported by their employer. Professional qualifications popular with business studies graduates are provided by organisations such as the:
Other options for further study include the Graduate Diploma in Law (GDL) for conversion to law.
For more information on further study and to find a course that interests you, see Masters degrees and search postgraduate courses .
What do business studies graduates do?
Marketing associate professional is the top occupation held by business and management graduates employed in the UK six months after graduation. Finance, HR and sales professions also feature in the top ten.
More than 10% of graduates go on to further study or combine further study with work.
#running a small business
5 Things Not to Do Running a Small Business
January 12, 2016
I ve been a creative entrepreneur since 2005. My first design company was a partnership with my significant other. It was largely a freestyle experiment in running a business, conducted live over the course of five years. As a business, it was marginally successful. As a learning experience, it was my equivalent of a masters of business administration.
So, by the time I had started my second and current company, I had a pretty good blueprint of don t s for running a small business. I had been fortunate enough to make the mistakes that have yielded five valuable lessons learned — lessons that have truly paid off the second time around.
1. Don t rush into partnerships.
It was only after my original partner and I parted ways did I recognize that we should never have had a professional partnership in the first place. Just because someone is your best friend, long-time coworker and / or significant other hardly qualifies them as the perfect candidate for maintaining a business. I say maintaining because it s far easier to get excited about the prospect starting a company than being able to handle the day-to-day reality of running it efficiently.
The best partner is typically someone whose skills and approach are the polar opposite of yours. The first ensures the you are able to cover a lot more ground without additional employees. The second may create conflict, but it ll force you both to defend your business instincts and weed out lesser ideas before you waste resources.
2. Don t get discouraged.
Running a company isn t a goal — it s a long, winding road. Enjoy the process! Unless your goal is to cash out, and you ve got some built-in exit strategy, chances are you want a long-term entrepreneurial career. You will have ups, and you will have downs — possibly in the same week or even day. You will gain amazing clients and lose others for reasons fair and unfair. That s all part of having a business.
I ve yet to encounter a single business owner who s reached some grand, stable plateau beyond failure, disappointment and doubt. We all experience it. Instead of discouragement, focus on becoming more resilient, on learning how to handle stress productively.
3. Don t forget why you wanted to start a business in the first place.
Whether it s following a passion or having more control over your time to devote to family, always remember why you started down this road in the first place. It s easy to get carried away and forget what it was you wanted from your own business. I, for example, was driven by quality-of-life factors, especially time off for my other passion — travel. At times, temporary sacrifice may be truly necessary, but it pays to be conscious of when you re in danger of permanently shelving the very thing you wanted most.
4. Don t try to do everything yourself.
I started my first company with $500 — barely enough to cover the costs of incorporation. So, right away, I developed an addiction to doing everything myself. My partner was only capable, willing and able to do so much, and I found myself doing a lot of admin tasks I never anticipated. Those tasks came with learning curves, and they took up valuable time and energy — energy that could have been directed at helping the business grow.
I didn t make this mistake twice. With my second, far more successful attempt, I contracted my business half just a couple of months in. Although my expenses grew, now I could focus on doing better work as well as devote time to business development. Both actions helped to grow the company far quicker than my former money-saving attempts at being my own bookkeeper.
So, resist the urge to cover all the ground alone. Saving financial resources is important, but don t let your task list undermine your big goals.
5. Don t stop evolving.
Your strategy, your marketing plan, your target market — nothing is set in stone. The world is changing more and more rapidly each day. Your industry will likely experience a shift, whether slight or monumental, at some point. As a small business, you are at a disadvantage, because your resources are a lot more limited. But you have a priceless advantage in ability to change course and adapt far quicker than a larger organization.
The best way to remain relevant is keeping your eyes open for changing tides, your mind open to new ideas and staying flexible.
And, of course, don t be too afraid of making your own mistakes!