Ever heard the saying, It takes Money to make Money ? The principle of borrowing money from banks and other credit agencies to make money has been a relatively basic assumption since early trade days. Existing business owners may want to expand their business, buy more inventory, or even hire more employees. New business owners need start-up capital to get all the balls rolling. Many times businesses take out loans, just because they can. It helps build good credit standing. When discussing the purposes of a business loan, one must look at the various types of loans available. Many times, the reasons your business may need a loan don t fall under reasons the bank feels you need a loan. Here are a few examples of types of loans available and the functions these loans are used for:

Short-term loans are usually used for short-term working capital for a business temporarily in need of cash. These loans may be based upon seasonal fluctuations, and other short-term problems that a business may encounter. Usually, these loans are paid within 1 year.

Intermediate loans are often used for businesses that are starting up. These loans may be used to build inventory, buy equipment, or increase working capital. Working capital is money needed for business purposes such as paying employees, maintaining good over-head, and other business needs.

Long-term loans can be given to business owners that are well established and wish to increase their fixed assets, for related business acquisitions, and for expansion. Long-term loans may be given to start-up businesses, as well. Usually for purchases of land or buildings, construction efforts, and long-term working capital, these loans have terms that run 3-5 years.

Government small business loans are available through financial institutions, as well. The government guarantees these loans if certain criteria are met regarding the business and the business owner. These types of loans can be used for various reasons: the purchase of land or buildings, new construction or expansion, to acquire equipment, machinery, furniture, fixtures, supplies and materials, and to refinance existing business debts that have higher rates and unreasonable terms. These loans can be used for both short term and long term working capital as well.

Most commercial banks, credit unions, and even investors expect business owners to have a well-thought out plan regarding their business. These business plans should incorporate the usage of loans in a very decisive manner.

Check out the business loans blogger at http://businessloans.blogspot.com He reviews business loans and interprets complicated financial data into simple to understand language.
Author: John Williams

Loans for Women

If debt is currently an issue in your life, debt consolidation really can save you from the stress of bills, debt collectors, and the nagging thoughts of foreclosure or even bankruptcy. Debt consolidation can drastically change your life within weeks, months, or years depending on your current debt situation. Consolidating your debts will allow you to live with peace of mind that you are taking care of your financial obligations while continuing to live a happy life.

Debt consolidation is taking all of your bills and fitting them into one monthly payment. Fitting all your bills into one payment also means one interest rate, which will limit the amount you pay out every month, saving you a lot of money in the long run. Debt consolidation also makes paying off multiple debts easier because the monthly payments can be lowered when you take away insane interest rates. The average debtor pays more interest every month than they do on the actual principal balance of their debt! Eliminating the sky-high interest rates is a good start to getting your debts paid, without going completely broke.

Many people assume when they can t pay the bills it s time to just throw up their hands and consider drastic actions such as foreclosure, repossession and bankruptcy. While there are some extreme cases where bankruptcy would be the best option, foreclosure is almost always avoidable as is repossession. Banks, car dealerships, mortgage companies, and creditors don t like to have to take back property or write off your debts, they would rather work with you on debt consolidation so that they can get back what they are owed and you can go on your way with your credit still in tact. Bankruptcy, repossession, and foreclosure are not easy outs when it comes to debts; in fact, they are choices that will continue to affect you for a long, long time. Consider debt consolidation before making any hasty decisions.

Debt consolidation on your own can be tricky, or downright impossible depending on your credit situation. Luckily, there are debt consolidation companies waiting to help people who are in over their head, just like you! Debt consolidation companies will take your credit report and any unreported debts that you can give them and work out a payment plan for you. These debt consolidation companies often contact each company and strike a deal to lower or get rid of the interest and even split the balance of the amount due. Obviously, lowering or getting rid of interest and part of each debt will limit what you spend each month, enabling you to actually pay the bill.

What s the catch with this type of debt consolidation? Well, there really isn t one. Yes, this is a business and the consolidator does make money because while he takes away the interest that each company is charging, he will charge you interest or a percentage of what you owe. Doesn t seem fair? It is! It works out better for you, because even though you are still paying interest it s just one interest payment for all the debts you currently hold. So, instead of paying twenty seven percent to ten companies you ll pay twenty percent to one company. So, you go from having multiple payments and interest rates to just one payment for all the bills and one interest rate. It works! If you follow the plan, and make your monthly payments debt consolidation will soon have your credit report looking much better than it does right now.

You may think that you have so much debt you cannot possibly afford to repay even on a debt consolidation plan. You d be surprised what these companies can get done on your behalf. And, if your debt is that outstanding you can work through the process slowly, a few debts at a time. There is nothing wrong with the process taking a while, as long as you keep up with the process and intend to actually pay off your debts. Getting your credit where it should be does take time, but it s worth it. Your credit is your buying power, and each payment you make gets you closer to having more of it.

Worried that the companies you are dealing with won t work with a debt consolidation company? You d be surprised. Yes, the companies will loose a little bit of money compared to if you showed up with cash to repay the debt tomorrow, but in the long run it s better for them to take a debt consolidation deal than not. Most companies figure they d rather get a portion of your debt back and settle the deal than not get anything back at all. Getting seventy five percent of your debt back is more reasonable to them than to keep paying debt collectors to contact you and try to get the money back. All in all, any money is worth striking a deal over, and that is why a debt consolidation company can really get you where you need to be. They are professionals and they know how to get companies to agree to their terms.

Debt consolidation companies will usually work with you to get your debts paid off within a reasonable monthly payment. Each month you ll make just one payment, reducing the time and stress of paying the bill, and each month you ll be a step closer to financial freedom. Paying off your debts, through debt consolidation or otherwise will take a weight off your back that you may not even realize is there. No one wants to have unpaid debts, but sometimes life gets in the way and it happens. It happens to the best of us. But, don t be too proud to consolidate those debts and get back on the right track. Open up your local phone book, or get online and find a debt consolidation service in your area. Contact a debt consolidator not with shame, but with pride, because you are stepping up to do the right thing.

Author: Jeff Dragt
Jeff has been helping all kinds of people become debt free. For a free consolidation quote visit. www.californiadebtconsolidation.net

Loans for Women

If you have enough clients to keep you busy, you must be making a good living, right? Well, not necessarily. Some of the busiest professionals around aren’t earning enough to pay their bills. On the other hand, there are some consultants, coaches and other service providers who have plenty of time on their hands but also earn quite a bit of money.

The difference between the income levels of these two groups isn’t just because one group is better at marketing than the other. The difference is in their business models.

Simply put, your business model is the answer to the question “How do you intend to make money?” It’s your plan for how you will generate sufficient revenue to meet your expenses and earn a profit. Unfortunately, many independent professionals don’t actually have a profit-making plan. And some of those who think they have one are relying a bit more on magic than they are on statistics.

For example, when you first hang out your professional shingle, charging $100 per hour may seem like quite a lot. After all, if you earned as much as $100,000 per year at your last job working a 40-hour week, you were still only making $48 per hour. So perhaps you think that doubling your former hourly rate should be more than adequate to keep your net earnings at their former level.

Let’s do some quick math. If your business model is based on working intensively for one major client for weeks or months at a time, such as many corporate consultants do, an hourly rate of $100 could indeed generate $100,000 per year. All you would have to do is keep busy approximately half of the time. $100 per hour times 20 billable hours per week times 50 weeks per year equals $100,000.

But what if your business model is based on working only two to four hours per month for each client, like many coaches, therapists, or healing professionals? Now if you want to earn $100,000 per year, in order to bill those same 20 hours per week, you’ll need 20 clients at once if you see them for an hour per week and 40 or more if you see them for less time or meet less often.

In the first example above, you only need a handful of clients each year and have large blocks of time left over to market yourself. That’s a sensible and realistic business model. In the second example, you need a constant stream of new clients coming in and the time you have available for marketing is likely to be broken into small chunks between appointments. That sort of model is more likely to lead to stress and struggle than it is to success.

The first place you might look in order to fix model number two is raising your hourly rate. You could charge $150 per hour, $200 per hour, or more, if your target market will pay it. But rates like these may be out of reach for many potential clients, and difficult for you to justify.

But rate increases aren’t the only way to fix a broken business model. Both of the models we’ve been examining are fee-for-service models, based on an hourly rate. Instead, you could choose a different type of model altogether. Here are some examples:

Fee for Service Models

Day Rate – Instead of charging by the hour, you can charge by the day or half-day. This imposes a minimum on your clients, avoiding short appointments that fragment your work schedule. Examples: An on-site massage therapist calling on corporate clients; a professional organizer serving home-based businesses.

Project Fee – Charging a flat fee for each project allows you to bill for time you spend planning, researching, or just thinking about your client’s issues. Clients often prefer flat fees because they can budget their funds more accurately. Examples: A graphic designer creating a logo; a communications consultant writing a company newsletter.

Monthly Retainer – When you ask clients to pay by the month in advance, you can charge for your availability, not just service delivered. Your retainer can guarantee you a fixed number of hours. If the client uses less, you still get paid. If they use more, you can charge extra. Examples: A career coach offering as-needed calls and e-mails in between sessions; a virtual assistant providing on-call customer service for a small business.

Product-Based Models

Flat Fee – A wide variety of items can be sold for a flat fee to increase revenue to your business. “Products” can also include services delivered in a defined package. Your buyers may be either existing clients, or others who can’t afford to hire you individually. Examples: A conflict resolution consultant offering public seminars; an executive coach providing personality assessments; an image consultant selling a wardrobe design kit.

Subscription – Providing products or services by subscription can provide a steady source of income and reduce marketing time. A sale made only once can continue to provide revenue. Examples: A sales trainer selling an educational CD series by monthly subscription; a life coach hosting a membership-based online community.

Bait and Hook – Also called the “razor and blades” model, Examples: A time management consultant offering a training program including day planners that must be re-ordered; a web designer providing proprietary modules under a license that must be renewed annually.

Any one of these models can be used to build an entire business, or you can combine different models together. For example, a consultant could charge a flat fee for assessments, then a day rate to deliver services. A coach could charge a subscription fee for group clients and a monthly retainer for clients worked with individually.

If your business isn’t earning as much as you would like, look beyond your marketing or the rate you’re charging. The real solution may be to choose a new business model.

Author-Bio: C.J. Hayden is the author of Get Clients NOW! Thousands of business owners and salespeople have used her simple sales and marketing system to double or triple their income. Get a free copy of “Five Secrets to Finding All the Clients You’ll Ever Need” at http://www.getclientsnow.com