Category: Business Finance

Business Finance

Factors to Consider When Applying for a Business Loan

Rodney Bernard

Capital is one of the essential factors of production. One can apply for a business loan when he/she want to start a new business or expand the operations of an existing one. There are many lenders and financial institutions that can lend you money to finance your business. There are several things that you need to understand and increase your chances of success when applying for a business loan.

Lender Options

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There are two main groups of money lenders, nontraditional and traditional lenders. Nontraditional lenders are known for offering loans at high interest rates. These lenders ask for a few documents from borrowers, making the loan application process easy. Individuals with a poor credit score or low creditworthiness can borrow money from these lenders.

Traditional lenders include credit unions and banks. Most people prefer working with these lenders because of their friendly repayment terms. They are also known for offering low-interest-loans to business people. However, these lenders have strict cash flow requirements, collateral, and credit. One is required to submit several documents when borrowing money from these lenders.

Credit Worthiness

The borrower’s creditworthiness shows whether he/she is capable of repaying the loan applied. Some of the factors used by lenders to access the creditworthiness or a borrower include the credit history and credit score. Individuals with a high credit score have high creditworthiness.

Amount of Funding Required

You should plan in advance and decides what you want to do with the cash borrowed. You should be realistic when deciding how much you require. Again, you should include the processing fees and ask if there some hidden charges when applying for a business loan. In general, business people can accomplish their goals by asking for enough money.

Know Your Credit Score

credit score

As mentioned earlier, most lenders will check your credit score when accessing your creditworthiness. It is, therefore, important to ask for a copy of the credit report whenever you want to apply for a business loan. You should contact the company involved or the credit bureau if your credit score has an issue or an error that needs to be resolved.

Cash Flow level

Cash flow is a cycle that exists between outflows and inflows. Some of the components that affect the cash flow include credit terms, payables, and accounts receivables. A trader or business person can compute his cash flow by comparing the total sales to unpaid purchases monthly.…

Business FinanceFinance

How to Look for the Ideal Insolvency Practitioner When Closing Your Company

Rodney Bernard

When your company is into some financial distress, and it is your decision to close shop, you need to hire an insolvency practitioner to help you through the process. A company becomes insolvent when it cannot pay current bills.

There are two forms of insolvency. When a company is said to be cash-flow insolvent, the company has enough assets, but it does not have the right form to pay all debts. Paying the company’s debts will have to wait until all assets are turned into liquid form. The problem lies when the company is balance sheet insolvent. In this scenario, the company’s assets are not enough to pay all its debts. Negotiations can still be done to resolve the company’s obligations without having to declare bankruptcy when the company is declared balance sheet insolvent.

insolvency

Insolvency and bankruptcy may sound synonymous, but when a company is insolvent, it has viable options to be able to pay its debts. When a company has declared bankruptcy, it is clear that the company does not have any means to be able to pay the debts it has incurred. When a company is insolvent, there is a need to look for the best insolvency practitioner to help you go through the process of finding ways to resolve the issue.

Here are the best ways on how to spot the ideal insolvency practitioner near you.

Qualifications

You should always look for a licensed insolvency practitioner. When an insolvency practitioner is licensed, it means that he has all the qualifications to represent you in all proceedings. Indeed, it is crucial to check on the credentials and track record of an insolvency practitioner before hiring. It truly helps when you can find someone with the best in-depth working understanding of insolvency laws.

Cost

When you are in the state of insolvency, it means that you are in dire need of cash, and hiring an insolvency practitioner may add to your problems. Fees may accumulate over time as insolvency cases can last for months. This should alert you to look for an insolvency company which does not demand steep service charges. You can pay an insolvency practitioner after all assets are turned into cash or after the insolvency proceedings are through.

no cashRecommendations

Because insolvency may not be expected to happen to any company, you may find yourself in a state of not knowing the first things that you should do. You can always look for using the government database of insolvency practitioners, or you can search online. Although you may get some professional recommendations, you can choose to select an insolvency practitioner who is recommended to you by someone you trust.…

Business Finance

How to Find the Best Money Lenders in Singapore

Donna Curtin

There will always come those instances where taking a loan becomes inevitable. These are the moments when most people will start running up and down trying to find someone to sort their financial problems. Regardless of the economic situation, you might be in, it is always important that you choose a good lender. Find a lender that you can trust if you do not want to regret later. The following are essential things that you should consider when looking for the best lenders in Singapore.

License

The first thing is to ensure that you are dealing with lenders who are licensed. This can be explained by the fact that they are legal entities who can be sued in case of gross misconduct. So it is upon you to ask them to provide you with their documents. If they try to give any excuses, then it simply means that they are not the right people to work with.

Credibility and Experience

This is perhaps one of the most significant factors that you should first look at before choosing your lender. You need a lender who is not after duping you to pay more than you should. Credibility is what will enable you to tell whether or not the information you are provided with is factual.

The experience, on the other hand, tells you more about the knowledge of the lender in the sector that you are interested in. A good lender should be able to provide you with the information that you need to be able to make a difference in your ventures. Only a well-experienced lender can do precisely that.

Interests Rate

While many lenders in Singapore understand that high-interest rates scare clients, many have resolved to dubious means of hiding the interests rates in hidden fees. This is why before you choose a lender, you should ensure that you are familiar with all the fees that you will be paying while servicing your loan. Great lenders are neither too expensive nor too cheap.

Flexibility for Payment

Another important thing that you are supposed to consider when looking for a lender is the flexibility of payment. The lender should make it flexible for you to be able to pay their money back. Some lenders make the repayment terms complex so that they can come back to haunt you.…

Business Finance

Choosing the Right Company Incorporation Service Provider

Rodney Bernard

Incorporating a business in Singapore is the way to become your own boss. However, it is easier said than done. There are several laws to comply with and many documents to prepare. This is not the type of task you want to do yourself unless you are a specialist in it. It is a very bureaucratic legal process. You may take months to have it done if you do it yourself. However, with a specialist, your company will be fully incorporated in less than an hour.

Choosing the Right Incorporation Services Provider

Broadly speaking, if you want to incorporate a company, you should choose a reputable incorporation services provider. There are several organizations offering incorporation services out there, but you want to work with only those that are known for providing high-quality services. Company registration is a very crucial legal exercise, and if you are not careful, you may meet your Waterloo in the process. Below are things to check for in an incorporation services provider.

Understanding Process

The initial stages of the incorporation process of a company are very important. A mistake made in these stages if not corrected early may make the whole process either too expensive because of fines or ultimately futile at the worst. It may even become a serious legal matter later in life. Company registration always starts with choosing a unique name. Obviously, your company will not be registered if it shares a name with another corporate body. Your incorporation services provider of choice should help you choose a unique name. Once the name is registered, the same firm should help you come up with the memorandum and the articles of association of the company. It should also help you comply with the other basic regulations as stipulated by the Accounting and Corporate Regulatory Authority (ACRA).

Provision of Housekeeping Items

Once the company is registered with ACRA, you still have more fish to fry. You need a company seal, bank account, official letterheads, and stamp. The right incorporation services provider will help you with these as well. You also need tax filing and accounting services later in life, and it will be useful if you can get all these services from one organization.

Customer Care

Customer care is a crucial aspect of company registration. You need to know what happens in every step just to be on the safe side in case there is a lawsuit against your company later in life. Therefore, choose a firm that walks with you in every step of the registration process. One that offers free consultation throughout the process and ensures that you do not miss any relevant bit of information. In general, you should not be a spectator of the process but an active participant.

Charges

Finally, it is also prudent to choose a firm that charges reasonably for its services. You do not want to spend a fortune while registering your company. Therefore, choose a firm that helps you avoid fines and makes the overall registration process a real bargain.…