Business Loan Options Blog

The Obama administration has unveiled a new program that will jumpstart innovation and grow America’s entrepreneurial base: The Startup America Partnership. It’s clear that the recession is over but the economic engine needs more emphasis on creating new businesses that can offer employment opportunities, small loan options, and make the engine rev up to full throttle again. However, much of the business landscape has changed over the last two years, leaving many would-be entrepreneurs scratching their heads wondering how to start over again. Not only did startup capital dry up during the recession, but the ways of doing business have changed. New entrepreneurs face a myriad of new obstacles that can take a partnership like Startup America to help navigate a new path.
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Small business has historically faced issues with finances and it is no surprise that in the current economy, they seem to fail at a fast rate, one that has never been seen. Money is what drives business and that has been very hard to find these days. Sure, on the news we hear about stimulation of business and with the passing of the Obama’s Recovery and Reinvestment Act two years ago, we had hoped that at least some of that money went to small businesses to help them stay afloat when it seemed everyone around them was sinking. Businesses and people alike are having the hardest time making ends meet, so a little financial injection was well received, but did it really help small business? The answers seems to be yes and no and looking back, we can easily see the good and bad points and what would be needed to be changed in order for small business to have small businesses feel the effects. The money that was allocated to business seems to have gone to businesses, but mostly large ones who were suffering like their counterparts, but were much more in the public eye than smaller ones.
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Even businesses need to invest. You have several options of how you can go about doing this. You can invest any extra funds you have back into your business; however, this can be a risky move. What if your company does not succeed as you hoped and you have just drained all of your savings? Certainly merchant loans interest rate options can be available, but wouldn’t you rather have a different method for protecting your business assets?

February 14, 2011 has brought some good news for those who want to invest in stocks. For example, there are several strong emerging market stocks. Even commodities are climbing higher in China, and Egypt is getting under control. Emerging market stocks are hot right now for several reasons. First, not many are willing to take the risk of emerging markets since it could turn around with the slightest upheaval. However, with commodities also gaining in these markets like China and Egypt it is definitely worth looking at certain stocks from these markets.
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Planning and executing a new business is one of the hardest things to do in the modern world. There are so many variables that cannot be forgotten including planning for low revenue the first year, advertising money and where you will have this business. There are ramifications for any location you choose. It always seems as you cannot be detailed enough these days as some of us miss some very obvious aspects of starting a business. Advertising is there to make sure you have customers, but publicity is another avenue that can help your business and is often less expensive. Publicity can be good or bad, but having some good publicity can jump start your business right from the start, creating a buzz that can sustain you for quite awhile and you start to get momentum and an influx of customers. While you can pay a team of PR professionals to write and send out press releases, there are ways to get free publicity that many businesses overlook that will help you avoid business loans to pay these professionals. In order to take full advantage of these avenues, you may need to be a bit tech savvy, but many of the options are easy to accomplish and can make a huge difference to your overall buzz.
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Digital content has wreaked havoc on conventional publishing systems for its ability to offer free content at the click of a mouse.  Consumers are spoiled and want instant access, whether it is a newspaper article or a quick response business loan. However, for digital content online, one of the biggest features that made it hard to compete against is the fact that it is provided for free. The New York Times is now seeking to change the rules of the game with a pay wall that is going to establish a line in the sand whereby avid readers of the Times must pay for the privilege online.
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Is this another energy crisis like 1973 or 1979? Will oil prices force businesses to seek out merchant loans to cover rising costs? Who would have thought $106+ for a barrel of oil in 2011? With this latest crisis or scare, the price of oil hit $120 a barrel before the Saudis pledged 37 billion to calm the market.

How the Price of Oil Affects Economy

So who thought it would or could happen? Stock Speculators did and they are reasonably hoping for yet higher prices and profits before the US government takes any action. Who pays for this artificial fright pricing? You do. What will it mean for you? Simply put, higher prices now, and scrambling to recover costs and maintaining new expenses and trying to stay profitable. Economists who have studied the effects of oil pricing believe that if oil remains this high it will it erase up to half of the benefits of the Federal $120 billion payroll tax cut. If the oil price continues to rise, all the benefits gained there will fly out the window.

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Banks may be stingy lending to business owners, but credit unions and merchant lenders are more optimistic. While loans to small business decreased during the recession from conventional banking sources, credit union and merchant loans were increasing. However, there are limits placed on how much a credit union can lend to businesses, typically only 12 percent of total assets.  Unfortunately, that means that once that limit is reached, often credit unions must stop lending until some of those loans are paid back. Now, credit unions are seeking to increase those thresholds up to 27 percent of total assets. If they can get Congress to approve that, it could significantly loosen the amount of credit available to small businesses.

New Legislation Introduced

Senator Mark Udall (D – CO) has introduced S. 509 that seeks to raise the limits on lending for credit unions to small business. This type of legislation has been introduced in past Congresses but has not gotten enough support to pass. Arguments against increasing the limit revolve around a lack of experience that credit unions have in the business world, but that may be changing. As the need for business lending become paramount to getting the recovery underway, the idea of simply allowing credit unions to lend more becomes more attractive.

A Boon for Business Owners

Should legislation pass, it will provide business owners another avenue to get funding for their businesses. Right now, only about one-third of all credit unions offer small business loans, but this could dramatically increase if the legislation goes through. There are about 7,500 credit unions in the United States and many are adding more services to attract customers who may have been turned down at conventional banks.

Banks Opposed to the Measure

Not surprisingly, big banks do not want this legislation to pass. They cite business inexperience as the top reason credit unions should not be allowed to do more business lending. However, after refusing to lend to many businesses during the credit crunch, they may find now that these same people are finding funding at credit unions or non-conventional lenders and refusing to go back to banks. With more lenders competing for viable borrowers in the market place, a rise in the credit union lending limits could eat into the big bank profits.

Credit Unions Require Special Conditions

Not everyone can join a credit union. There are usually certain organizations that you need to join or your company must be an approved member. It is not the same as joining a bank and you must meet their membership guidelines. Thus, even if the limits are increased there are still barriers to joining a credit union that must be bypassed before you can apply for a loan from your local credit union.  However, if you are a business owner, you should be looking now for that probability so that your business can be first in line if the credit union lending limits are raised and extra funds become available to small businesses.

Lots of attention is being paid to Millennial buying habits as this demographic begins graduates and starts establishing families. Many will seek out cash advance options just to start out their lives with the perfect wedding. However, wedding planners aren’t the only types of businesses that will benefit from this demographic coming of age, there are a whole spectrum of businesses that can cash in on this growing trend for nuptials just by tweaking their services. If you are wondering how to get a little more business in the door, it may pay to wonder how your business can help those Millennials who are going to get married soon.
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Every expense and even some finance borrowing options in business provide tax opportunities all year around, but you have to be smart enough to claim them. Every month there seems to be something arriving in the mail, stories in the news or plans being presented in legislative bodies. Fortunately, every year there are also ways to save on taxes and preserve that hard won income.

Tax Deductions to Look For

Let’s start with the easiest and often most overlooked possibility. Small business owners seem to purchase things every day. Often it comes straight out of your own pocket. Too many of those purchases can get lost or forgotten. Don’t wait until April 15th; identify those business purchases all year long! A note attached to the cash receipt may be just enough to save you money. Keep all those receipts in a box, a big envelope or whatever storage works for you. Basically include anything that is used for your business. Not all will probably work, but you do not know until you ask your accountant or bravely phone the IRS! Simple office supplies like that extra ream of paper you had to get at the grocery store is a deduction that will add to your bottom line.
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Stocks are globalized to the point that many companies are international and are affected by any circumstances that could have a negative impact on them. In the past, the United States stock market was not affected by anything that happened outside its borders, but everything has changed the past few decades. We have become global on my fronts, most especially regarding business. It is rare to see a company that does not have some business activity globally. Tech companies certainly may focus on the U.S., but they almost always have a presence around the word as the lines have become blurred and these companies have sought profits and income abroad, widening their chances to survive. This type of diversification can help spread out the risk of doing business in just one country as each country has its own economy. If the economy flops in one country, they can depend on a combination of other countries to make up the losses in some cases. This strategy has led to large profits, but also to expansion that is somewhat taxing to the funds of a company. Many get overextended and end up needing business loans or other financial tools to get their money in savings back up to an acceptable level.

The recent earthquake in Japan has had a big impact across the world. Charitable organizations are raising money to help with the cleanup and many other companies are pitching in to help as well. The March 11 9.0 earthquake and tsunami initially had an impact on the stock market as investors were worried about the companies that do business in Japan and how their bottom line may be effected by this disaster. Since then, the markets have somewhat recovered, but there was another large aftershock of a 7.1 magnitude that could have sent markets spiraling once again. The initial reports are that there was no damage from this aftershock, and stocks remained mixed, some up and some down, a normal day overall.

Certain companies such as bed, Bath and Beyond and Costco were reporting gains over expected earnings, which helped prop up the markets even while investors continued to be pessimistic about Japan’s future. The jobs numbers were also better as jobless claims were down over the past month, much less than expected. But as investors remained wary, they also made sure to buy the stocks they thought would be a good bet for quick profits as well as those to be used for portfolio growth, both of which are positive depending on which strategy you have chosen for your investments. If the economy continues to grow, Japan’s woes may not be that crucial to the overall market predictions we will see in the coming months. Although it is hard to tell what impact the earthquake and aftershocks will have on our economy, good numbers and the strengthening of the economy cannot be ignored and must be exploited by investors for continual growth, which hopefully, will continue and grow amongst all sectors.