Category Archives: News

August 12, 2017

Proof of Insurance on Collateral

Definition of Proof of Insurance.  What is Proof of Insurance?

August 19, 2017.   Proof of insurance on Collateral is required for many types of transactions and contracts, including business loans.

Examples of a Proof of Insurance.  

A business owner is approved for a business loan.   One of the requirements for closing is to show Full Coverage insurance.   If the business owner does not have insurance, or full insurance on the Assets, they can consider other types of business loans that do not require it.  For one of these options, contact us below at SmallBusinessLoansDepot.com for several options.

Complete the Secure DocuSign Application.
Or Call us at Tel:  1-919-771-4177, or Send E-Mail

Did you know?

Customers cannot always show evidence of Insurance.
What can you do if you cannot show Proof of Insurance for a business loan?
You can quickly get low cost insurance to show the coverage you need.   This is
probably the best option if you need to get business funds soon and are already
approved for a loan.

Proof of Insurance
Does your Transaction require Proof of Insurance

Get funding through a different type of loan which
may not need to show Full Coverage Insurance, including a Bank Statement Loan, an Accounts Receivables loan, and also a loan based on Stocks.

Why is Insurance needed?   Can Insurance be waived?
If Insurance is needed to complete a Transaction, it will not likely be waived because the Lender needs collateral coverage.
Insurance covers the replacement cost of the Asset and the Lender may be approving the loan based on the asset.  The Lenders needs insurance because if the Collateral is damaged, a total loss or stolen, the Lender cannot recoup their losses.   If the Lender does not have this coverage, they probably would not have approved that type of financing.

So if you cannot get and afford full coverage insurance, then instead you can also look at other business loan options.

The following are frequent requests and statements:
– I do not have insurance and full coverage insurance on my Collateral.
– Cannot show proof of insurance on my Collateral, Asset or Equipment.
– I need a business loan without  Proof of Insurance.

Learn more about Proof of Insurance.

Recent examples from the Web and more Articles from the Web:

Full Coverage Insurance 

 

Background Check for business loans

Definition of background check.  What is a background check?

August 19, 2017.   A background check is when there is an investigation into the history of a person or company.    This may include criminal history, civil suits history, credit checks, employment history, educational history, tax history and other checks.

Examples of a background check and background history review.  

A business owner applies for a business loan and are approved.
One of the closing stipulations is to get and review the background history of the business owner.
If the business owner cannot pass a background history review, they should consider other types of business loans that do not require it or for which background information on the applicant is not heavily scrutinized.  To get a business loan with a criminal history, or if you cannot pass a background information review, contact us below at SmallBusinessLoansDepot.com for several options.

Complete the Secure DocuSign Application.
Or Call us at Tel:  1-919-771-4177, or Send E-Mail

Did you know?

Customers cannot always pass a criminal background check for a business loan.
What can you do if the owner cannot pass a check on their past history for a business loan?

Background Check
Get a business loan without a background check or if you cannot pass a background check

Good news.   There are other options.   Call us to discuss other options.   Explain what will show up on your record and we will offer other options that can work.

Background history reviews are done for many reasons.   Most often they are completed when someone is requesting a product or service, or entering into a Contract or Relationship with someone else.   They are not always looked at the same way.   What is looked for is totally up to the party that is pulling the report and also what they decide about the information.

The following are frequent requests and statements:
– I do not want and will fail a background check, as well as:
– Cannot pass a background report check.
– Need a business loan without a personal history check.

Learn more about background reports.

Recent examples from the Web:

Business News articles 

 

 

 

Business loan with no tax returns?

Need to get a business loan but cannot provide business tax returns?

August 19, 2017.  Sometimes Lenders will approve you for a Business loan but then want to get a business tax return before closing.   They may not scrutinize the return but will not close the business loan with no tax returns.  The Lenders are making sure the business is not delinquent in filing returns.

Example of what to do if you need to get a business loan with no tax returns.

A business applies for a loan and is approved.   However, the Lender requires the most recent tax return or 2 years tax returns.   If you are a new business, or have filed an extension, your business cannot provide this information.

If your business cannot provide Tax Returns, then:
Before applying, ask if Business Tax Returns will be required.  If so, apply for a business loan product that does not require returns.   Click on the 15 second app for business loans that do not require a business tax return.

Business Loan with no Tax Returns
Want a business loan but do not have Tax returns?
Choose these options

Complete the Secure DocuSign Application.
Or Call us at Tel:  1-919-771-4177, or Send E-Mail

Lenders will not scrutinize the returns even if they require them.   They will not review Gross and Net Profit, Business Tax Write Offs and other parts of the return.  However, if they ask for a return, you have to provide it.

Business owners are often afraid to provide a return because they show a net loss.  What can you do?  Apply for programs that do not require business returns.   Ask the lender in advance how closely the return will be scrutinized.  Many loan programs will just get the return to verify it has been filed.

The request for returns are also part of  “closing stipulations”.    Other items that are usually required for closing stipulations include a copy of current driver’s license, in addition to a clear copy of voided business check,  copy of business license.

Frequently asked questions, requests and also statements.

1.   “I need a business loan without tax returns.”
2.  “Looking for a business loan with no tax returns.”
3.  Need a no tax return business loan.
4.  Cannot provide tax return for business loan.
5. I don’t have any tax returns for my business yet.
6.  Filed an extension on my tax returns.   What do I do?

Business loan with no tax returns?

Bookmark our resource page.

What is subordination of debt?

What is subordination of debt?

August 12, 2017.  When a lender agrees to the subordination of debt of one of their existing customers to another lender.   This puts them secondary and behind in the lien position to the company they are agreeing to subordinate their customer to.

Example of subordinating debt:

A business applies for a loan but the lender cannot close the loan because a different lender already has a lien on the same assets of the borrower.

The subordination of debt issue has become even more of a hurdle when customers have one or more Merchant Cash Advances and tries to get a different type of loan.

Accounts receivables lenders and many other lenders have issues closing their financing due to existing Merchant Cash Advances.   A Merchant Cash Advance provider may already have a blanket lien on all furniture, fixtures and receivables on the customer’s UCC listing.

This means that the new Lender as well as any other Lender cannot put a lien against the receivables.  They must ask that Lender to subordinate rights to the receivables to them.   For Funding that does not require you to subordinate debt, contact us below and get started.  
Complete the Secure 15 Second App, or Full App.
Or Call us at Tel:  1-919-771-4177, or Send E-Mail

What is subordination of debt?
Subordination of Debt

The lender that subordinates gives up their rights to that specific Collateral.   Why would a Lender be willing to give up rights to Collateral?
It is usually because the Lender took all of their customer’s Collateral for their Loan.  They did not need all of the Collateral and is really not interested in all the Collateral.
They took all of it because it was available and the customer did not object or say no.

A Lender that takes a lien on all of a Company’s assets would only try to liquidate certain Collateral if the customer defaulted.   As a result, they are often willing to give up rights to Collateral they never would have gone after anyway.

For more information on subordination of debt, visit resources such as the SBA.

Business optimism in April highest in 6 months

Business optimism is at a 6 month high.   According to statistics by the National Federation of independent business, optimism by businesses is the highest since late last year in several key categories. The organization’s optimism index increased to 92.1, up from 89.5 in March 2012, and the 2.6 point gain was the highest jump since October 2010.  The survey size was 1,873 firms.

According to the statistics, businesses are optimistic in multiple areas, including planning to hire new employees, with 6% of respondents planning on hiring new employees versus 0% in March 2013,  and 1% in January 2013.  23% planned on moving forward with increased capital spending versus 20% in December 2012.  4% expected higher sales versus none in the previous months.   Another important area of improvement is an increase in increased sales prices from 0% at the end of 2012 to 3% in April.   Businesses have confidence that consumers will be willing to pay rather than be driven off by higher sales prices.

These statistics are not reflective of a strong economy, rather continuation of a slowly rebounding economy.  The surge in the stock market over the last 2 years has been cited as a reason for optimism by many companies in other recent polls.

There has been virtually no shift in businesses’ view of an ease in credit conditions, which
continues to be viewed as difficult with tight access to credit markets.  Businesses continue to report having difficulty obtaining the financing needed for new hires, and other capital spending needs such as expansion.  These tight credit markets are causing many businesses to research alternative growth financing such as accounts receivables financing, contract financing, loans based on gross sales such as bank statement loans, loans  that businesses can obtain based on the sales of the business.  This funding can be accessed through networks and hedge funds specializing in alternative business loans.

The National Federation of Independent Businesses stated in summary that 4 of the index’s 10 main components measured contributed to most to the increase in the optimism percentages.   The SBA, Small Business Administration states that small businesses are considered to be less than 500 employees, which represents 99% of all companies.

Google Circles – Why do it? November 11, 2016. 11/11/2016

Why participate in Google Circles?
Adding people to your Google Circles and other people adding you to their circles is something which should be done because it continues adding significant value to the articles and blog posts you are already writing, including posts on your website and in forums.

How does it add value to me? The more people that have added you to their circles, the more weight everything you write carries.  Think of it as being an author.  Each person that adds you to their circles says you are credible.  This increases the weight and value Google assigns to you as an author and what you publish.  The more weight Google applies to you as an author,  the higher your rankings will be for what you publish.  Google has stated that it will continue providing results from sources with the highest credibility.

How can I participate in Google Circles?
Establish a G-mail account.  If you have a G-Mail account, you have a Google plus option in the far left of the top menu bar you see while reviewing E-Mail.  Google plus is a forum where you can post any thoughts, articles of interest you have seen, and more.   A main option is to add people to your Google circles or for other people to add you to their circles.  Add people organically.  As you come across them through your regular work, you can add them and they can choose to add you.  If you comment on their work or their google plus posts, they may add you.  If you have a rapport established with someone already, you can ask them to add you to their circles and you can reciprocate.  You can also contact friends and add each other to your circles.

As you obtain more credibility, you will notice that many of the articles and blogs you write will rank significantly higher.  They will be read and approved of by some in your circles.  The ranking of your publications is also boosted by those whose circles you are in that click
on, read and recommend your articles and blogs.

Why Businesses get hurt if debt ceiling isn’t raised

Many business owners are conservative.   They obey the laws, watch their spending, and are cautious.   Many will say that the Government should not increase the debt ceiling knowing that the Government will be taking on more new debt.    It is a good idea for the Government not to take on new debt, but not this way.

Currently, the Government spends over 40% more than it takes into it’s coffers in revenues.   Economists have argued in past years,  by what percentage the Government can cut it’s spending in one year without hurting the economy, and many Economists felt that a cut of just 4% per year would slow down the economy short term, even if long term it benefits the country.

If the debt ceiling is not raised, or raised within one or two days after the deadline, the stock market will take a major dive.  Individuals will pull back on spending until they are comfortable with what will happen.  Large Corporations will follow suit and put on hold and delay any hiring or expansion plans.    Interest will continue to be paid or the country would suffer a true technical default.   World markets will truly be aghast and dive mostly due to the reckless self destruction.   Moody’s and Standard and Poors may impose another credit downgrade, further aggravating markets.

The Government will truly be forced to choose who receives Government money and who does not.   Watch in amusement as some of the same Congressmen and Senators who voted to not raise the debt ceiling suddenly demand that the flow of money continue for their districts.   Unemployment benefits, assistance for farming, highway money, and Government contractors will undoubtedly be among the first victims of a massive spending cut.   Companies that provide products for the military will also take massive cuts because Congress will make every effort to pay the soldiers.   If the department of education takes cuts this will cut funding to colleges and schools.   Other departments such as the Commerce department, the department of labor, and the State Department would all very likely take cuts.

While many people feel this would be good in principle, the state department includes funds for Embassies and Consulates, including the defense of those organizations.  The commerce department includes food safety and inspection.   Funding for Ports and border security have to be considered.    If the Department of Homeland security is cut, then many functions now happening would slow down.   Many of these employees would be temporarily cut.

The media effect would be tremendous.   Media outlets will interview unemployed and furloughed employees who will vent vicious frustrations.    Public opinion polls will reflect the worst ratings for Congress ever in it’s history.    Such a situation will be guaranteed not to be long term.    Congress will then quickly raise the debt ceiling.   Renewed talks of whether tax increases are justified in order to pay for desired services will begin.    People will realize the value of services lost, previously taken for granted.    Once it is accepted that the national debt must be address long term, their new found dependence of services will be weighed versus revenue increases and future proposed spending cuts.

Why the Debt ceiling is the most dangerous battle

Of the 3 major battles that are in process, the Fiscal cliff, the delayed spending cuts and the debt ceiling, the debt ceiling holds the most danger to the economy and the country.   The reasons have to do mostly with the dollar amounts are larger, those larger cuts are more sudden and the bond rating agencies have targeted a debt ceiling fight as a bellwether of whether they will downgrade the countries credit rating again.

Let’s compare all three.   In the most recent fiscal cliff battle, revenue rates were increased for those earning over $400,000 per year form 36% to 39%.    Those with incomes over $400,000 represent approximately 1% of the population.    Spending cuts were supposed to take place in the range of $1.6 trillion over 10 years through and where those cuts are supposed to occur is still a matter of debate.   Republican House Speaker John Boehner
(R) – Ohio, Senate Majority leader Mitch McConnell, (R) – Kentucky, and many in the rank and file membership of the House and Senate want to have major cuts in entitlement programs such as Medicare and other Government programs, possibly including the department of Education, the EPA, Environmental Protection Agency, and many others.
The most significant fact is that the cuts are supposed to be approximately $1.6 trillion over 10 years, which represents $160 billion per year, which represents only approximately 5% of the Government’s budget per year.

– The debt ceiling is much more dangerous for 2 reasons.    If it is not raised, it represents
a much larger cut, 40% to 45% immediately versus the 5% or somewhat larger cut being
negotiated in spending within the next 60 days.

Example of the numbers:

The government’s current budget is approximately $3.4 trillion dollars per years.   At the same time, government takes in approximately $2.2 trillion dollars per year in revenues, creating an approximate $1.2 trillion dollar budget deficit.   It has to borrow the difference. If the debt ceiling is not raised, it cannot borrow any money.    This means the government will have operate on $2.2 trillion per year instead of $3.4 trillion.    A shock of 40% plus in spending cuts will trigger massive austerity reductions in programs.    If these occur, expect the shock to immediately reverberate through the general public within days or less.

Will Social Security checks be guaranteed post fiscal cliff?

In last years June 2011 fiscal cliff fight, President Obama went on the nightly news to state that if there was no agreement on the Fiscal Cliff, then it could not be guaranteed that Social Security checks would go out.    In this years fight, the president has not stated the same message with regard to Social Security.    This creates the question,  if there is no agreement on the fiscal cliff, does the same danger apply that Social Security checks may not be issued, or may not be issued on time?

In this round, the president and other lawmakers have talked less specifically about a variety of programs that will be cut or not receive funding and how it may affect certain sectors of the population.   It seems that the politicians do not want to frighten only one group, and in this case it would be the most vulnerable group within the population, Seniors and the elderly.    The truth is that certain programs will be cut and they may include Medicare and Social Security.   It may not have been specifically talked about on this occasion but it is a real possibility.

The debt ceiling will be raised, that is certain.   The only real question is if it will be raised before damage is done to the economy.    There are several ways through which the economy may be damaged if the debt ceiling is not raised by the deadline.

– The stock market will react very negatively in fear that spending may be cut over 40%
instantly.   Markets will also react negatively due to the fact that the bond rating agencies
Moody’s has stated that they would very likely lower the ratings of U.S. Treasuries if
there is not an agreement, preferably longer term agreement on the Fiscal cliff.

– If the debt ceiling is actually broached beyond the hard deadline and not solved, there
would be spending cuts in the order of 40% + instantly.  This would be a major shock
to the economy.   A sudden Government decrease in spending of over $1 trillion would
definitely be a shock to the system.  Politicians would be unwise to play politics with this issue.