The stigma attached to bankruptcy and the economic and financial repercussions following bankruptcy, prove to be the biggest deterrents for filing it in the first place.
Bankruptcy is a legal recourse taken by an individual or a company that is badly in debt with no resources to pay or clear the debt. This includes the present and the future prospects being as bleak.
Small businesses have similar requirements to large ones, even the scale and number is much smaller. Equipment forms are an integral part of small businesses as well, that needs to be maintained and replaced over time.
A small business is defined as one which is privately owned, has only a few employees and low sales volumes. Though the number of employees and the capital invested in a business is different in various countries, it is certainly not one of the major market players in its field.
Small businesses need sources of finance to get adequate funding for their venture. While majority of small businesses start with the entrepreneur’s own funds, access to additional sources becomes important to meet the spiraling costs.
A line of credit is one of the instruments available to businesses to get access to funds for their business venture. Even small businesses can avail of this financing method to pay for everything from raw materials to equipment.
Factoring is a source of finance for small businesses. Factoring is a financial transaction between a business owner and a third party that provides instant cash to the former in exchange for the account receivables of the business.
Small business owners often find themselves pushed against the wall due to shortage of funds, and being unable to secure a loan for their business. This problem is even more pronounced in startup businesses which have yet to establish a credit record or show spiraling sales.
It seems everyone is keeping a closer eye on their wallets these days. That’s why it’s hard to believe that national and state government agencies are holding on to billions of dollars, unclaimed and seemingly forgotten.
Every business needs a certain amount of money to start. The entrepreneur on the threshold of starting a new venture, has to work out where and how he will get access to sufficient funds.
Within the next few years’ online computing services for businesses will be the norm. The Internet will be the source of a real alternative of providing IT services to numerous customers.
Credit card debt is a major problem in the U.S. This convenient mode of payment, which tempts everyone to spend more than they can afford, has resulted in the average American carrying a debt of $8000.
Credit card debt can become the biggest financial liability that may spoil an individual’s life and peace. What was meant to serve as a convenience and as a substitute for cash, has now become an instrument for debt.
An unsecured business loan is a loan that is granted without requiring submission of any collateral against which the loan will be cleared.
I recently attended Financial Planning Associates (FPA) 2010 Annual Symposium & Sponsor Expo in Charlotte, NC. I attend the FPA Symposium each year simply to keep up with my continuing education credits.
Small businesses do not have a large asset base or access to unlimited funds. Most often, small businesses establish credit by getting a business credit card, which provides a specific amount of credit that can be used for purchases and operational expenses.