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In today’s difficult small business climate an issue facing many business owners is the threat of losing their business or having the bank foreclose. When sales continue to decline month after month with no sign of a turn around, and your vendors and trades keep getting pushed out further it is an ominous and scary feeling for the small business owner. You have worked your whole life to build your business and provide a better life for you and your family.
Flickr Image by: cbonney
Don’t let the current business climate get the best of you. be strong mentally and stay calm. If you owe money to your bank try and be upfront with them and work out a “forbearance” agreement where they will take a reduced payment until things rebound. It is a last resort for a bank to want to liquidate especially it today’s environment.
“Also consider other ways to raise the money you owe the bank. Now certainly isn’t an ideal time to borrow money since banks’ lending standards are tight. But in better times you might have found another lender willing to lend you the money to pay off the delinquent loan. Consider using personal money to pay down part or some of the debt, borrowing from friends or family or even finding other people willing to lend you money or invest in your business. “…read full article
Other options to consider when faced with pressure from your bank, vendors, and back taxes are a merchant cash advance program. A merchant cash advance or business cash advance allows a business owner to get upfront cash for their future credit card sales. This can be an ideal solution to more traditional means of obtaining financing that is not currently available. A merchant cash advance providers gets paid back out of a small percentage of the daily credit card sales so the business owner doesn’t get his/her cash flow sqeezed.
It is important to remain calm in tough times and review and understand all your options. This is they key to success in navigating though the rocky waters of todays economy.
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The us auto industry has been on its back for several years now. The situation has accelerated with the most recent credit meltdown and all three are running to capital hill seeking a bailout. It seems like under the current circumstances this request should be met with a resounding YES. If any of you paid attention last week to the latest jobless claims, over 500k for the month!
Well what are we missing? The worst financial crisis since the great depression, staggering unemployment, ECT. ECT. ECT…… Then why do the big three have to get down on their hands and knees and beg? Did AIG have to beg? Did Citigroup? The list goes on and on. The largest manufacturing industry in our nation that represents over 4 million US jobs and our government might let them go bankrupt.
There must be a better way. If I where in charge here is what I would do;
I would give them a small short term bridge loan so that they could survive over the next couple months and meet obligations. During this period I would require them to hire bankruptcy consultants and put together a plan for a packaged bankruptcy. The government would provide the financing to pull them out of bankruptcy. This would do a couple things.
Flickr Image by: Congressman Markey
It would allow the automakers to restructure with their creditors, unions, employees, and most importantly get rid of all the legacy liabilities that have been haunting them for years.
Give consumer the peace of mind that the big three will survive and come back stronger. This way we still buy cars from them because we know the government supports the industry and its survival. All warranties will be honored.
Once this is accomplished the entire industry will be poised for restructuring and will continue to thrive for many years.
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Today’s tight credit market is causing franchisers to lend a helping hand to franchisees in need of financing.
“Great Clips Inc., a Minneapolis-based hair-salon chain, says it has secured $14 million in loans for expansions, acquisitions, debt consolidation and refinancing for new and current franchisees.
The franchiser obtained the money from lenders InSource Capital Services Inc. of Sherman Oaks, Calif., and IRH Capital LLC, Deerfield, Ill., “in the wake of all the turmoil and fear out there,” says Rob Goggins, Great Clips’ vice president of franchise development.
Mr. Goggins says the franchiser was able to get the financing partly because of franchisees’ low default rate on previous loans. Much of the money is still available, the company says.”
read full article by Richard Gibson
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