Latest Entries »

Business Funding Benefits

Filed Under: Carlos Hank Rhon Commercial Loans, Carlos Hank Rhon Credit, Carlos Hank Rhon Financial Information, Carlos Hank Rhon Funding by admin — Leave a comment
February 7, 2012

There are many different benefits to business funding, which is essentially using outside funding to raise money for your business , from getting the business started to that of even helping to expand the business by making equipment purchases or allowing for the addition of extra employees. Some of these business funding benefits –

  • Ownership: when borrowing from a bank or commercial lender, the only thing that an owner is obligated to do is make the agree upon payments in the finance arrangements. Outside of that, the business can be run however, whenever, and wherever the owner deems.
  • Tax deductions: in many cases, using business funds can help in the taxing of the business. The principal and the interest payments for a loan are counted as business expenses and therefore, are counted as a deduction from the business’ income tax.
  • Low interest rate: Interest rates may also be lower, thanks in part to the tax deduction, explains a business leader and finance professional. In many cases, the government will tax at a certain percentage, while the bank is charging you another percentage; with these two percentages being multiplied, in most cases, the interest rate for the business is much lower.

There are of course disadvantages to business funding, such as repayment of the loan or loans that have been issued to the business, as well as some higher interest rates. Your credit history affects lending options so you should make sure your rating is good. However, in the long run, business funding can provide a lot more benefits to that of the company, such as the added income to help build the business to success or to ensure its continued success.

Tags: , , , , , , , , , , , , , , , ,
Permalink

Preparation for Lender Analysis

Filed Under: Carlos Hank Rhon Banking, Carlos Hank Rhon Commercial Loans, Carlos Hank Rhon Funding, Carlos Hank Rhon Lending by admin — Leave a comment
January 30, 2012

Banks and other lenders are really only concerned about one thing; getting repaid. This is how banks make the bulk of their revenue; providing funding to business owners and individuals who are required to repay both interest and principal. In order to qualify for a business loan, you simply have to demonstrate that your business can service the loan request and make the loan payments for the life of the loan. Most lenders will perform the following three analysis calculations to determine if your business has the cash flow to service the proposed new loan.

Financial Statement Review
Banks and lenders will require three years of past financial statements at a minimum. The reason is to see if your business could have serviced the loan over the last three years. If it passes this test, then your business should be able to service the loan for the next three years. Lenders use your past business performance to determine what your future performance should be.

What If Scenarios
Here, the lender will perform a series of “what if” scenarios on your financial statements. For example, they may take your total revenue per period and reduce it by 10% or 20% – keeping all other items (your expenses) the same. Then, spread those numbers again to see if your business could still service the proposed loan – e.g. still have the cash flow to make the payments. Again, reassuring the bank or lender that your business would still be able to repay them should your business hit a slow period.

Debt-to-Equity Ratio
Lastly, while your business may be able to service the proposed loan’s payments, banking and finance professionals also want to ensure that your business is not over leveraged which means that your business does not have too much debt in comparison to its equity. Let’s say that the entire market declines or your revenues fall so low that you are forced to shut down the business. In this situation, would you still be able to repay all your lenders including the proposed loan? To calculate this, lenders look to a safety measure known as the debt-to-equity ratio. Measuring your debt-to-equity is simply taking your Total Liabilities and dividing them by your company’s total equity. The higher this ratio, the more risk the business has as it is relying on too much outside debt financing.

Now, if your business does not pass all these tests with flying colors and you still need a loan to achieve sustainable business growth, then it is up to you as the business owner to manage your company in such a way to effectively bring your business in line with these tests. It all starts with your understanding of your business and the measures it has to pass to qualify.

Tags: , , , , , , , , , , , , ,
Permalink

Steps to Success in the Forex Market

Filed Under: Carlos Hank Rhon Forex by admin — Leave a comment
January 28, 2012

The higher leverage Forex currency trading can be a double-edged sword. While Forex has become popular for offering tremendous profits, it can also accelerate one’s losses, making the following steps toward profitable online Forex currency trading that much more important to follow.

Step 1. Establishing a solid foundation for your Forex currency trading business is a key determinant of how long your road to consistent profits will be. In this step, you either get on the right track quickly or set yourself up for struggle and failure. Personal introspection, determining your personal and financial objectives, and purposefully establishing the proper habits, perspectives and organization are what make for that solid foundation.

Step 2. Consistency and continuous improvement are brought to your Forex currency trading through systematizing the operation. This is also when you acquire and/or develop your trading system, verify it through back testing, then track the important metrics of your trading. This facilitates focused and efficient improvements.

Step 3. Right along with establishing your Forex currency trading business, it is essential to properly manage your emotions. Even with a proven trading system, your emotional management will be the key to maintaining the consistency and maximizing profits in your Forex currency trading.

Most traders begin their trading with no guide to Forex currency trading on what to do besides focus on placing trades and making money. This is why it is so important to specifically concentrate on education as you progress through these three steps. Focus on becoming a proficient trader and running a well thought out and organized Forex currency trading business, not just on the placing and executing of trades.

If you’ll approach your Forex currency trading with a long term intention, this will make a substantial difference in how quickly you’ll achieve the consistent profits you seek. Those that try to go it alone are usually the ones that experience the painful and costly lessons that the markets will dole out. The traders that invest in themselves and pursue the teachings of others that have come before them are usually the ones that continue to achieve success in Forex trading and do so in the shortest period of time.

Approaching Forex currency trading trading from a long term perspective is what the truly smart traders do. They invest in the books and resources available so that they can build the Forex currency trading business that will provide the consistent income stream that they dreamed of originally.

Tags: , , , , , , , , , ,
Permalink

Carlos Hank Rhon on the Search for Funding

Filed Under: Carlos Hank Rhon Commercial Loans, Carlos Hank Rhon Financial Information, Carlos Hank Rhon Funding by admin — Leave a comment
January 15, 2012

If you have any experience with business, then you know how daunting it can become to locate commercial lending resources. With economic issues that will likely linger for years to come, many commercial lending organizations have tightened up their loan options. Many business owners rely on this capital to run their daily business activities and others require this capital to expand the business. There are numerous lenders for you to choose from so regardless of results of your previous loan, you are sure to find a company to work with you. The key to getting the money your business needs is developing a funding strategy.

One great method to gain the financial resources that your company needs is to find a business partner. Locating a reliable business partner can provide you with money you need and also provide many additional resources. I’m pretty sure that you’ve heard of a business that was struggling due to disagreements with business partners. Be sure to find an individual that shares some of your goals and beliefs so that there are no major complications in the future. This addition to your business could make or break the flow of the company.

If your company needs financial help, you may want to look into home equity solutions. As mentioned earlier, our current economic conditions have made this process a bit more difficult but not impossible. If you are uncertain with the future of the business this may not be the best option for you. The future of your home will depend on the results of the business. This is just one of the many reasons why you should do some research before making major decisions like this.

Credit Cards are great a way to pay off some commercial expenses. This is a great option but must be used in discretion. This is short term fix for the business but it may get you the capital that you need for the investment in your business.

Another great way to attain residential lending resources for businesses is to try hard money lenders. These non-bank affiliate corporations provide financial options for those whose banks disapprove their loans. These lenders are great resource when needed but you must make sure that they are reliable companies. Make sure that you are aware of all of the requirements at the time of you agree to the arrangement. Search until you find the capital you need to help your business succeed. This is a serious matter so you can’t act in desperation. Making financial choices for your business on a whim never leads to anything good so the commercial loan agreement you choose should benefit both parties involved.

Tags: , , , , , , , , , , , , , ,
Permalink

Key Terms in Commercial Real Estate

Filed Under: Carlos Hank Rhon Commercial Loans, Carlos Hank Rhon Funding, Carlos Hank Rhon Investments by admin — Leave a comment
January 13, 2012

Many commercial lending organizations have adjusted their lending approval process in light of the current economy and market upheaval. As a business owner looking to acquire a commercial loan, it is vital to educate yourself and prepare for, not only the loan submission and loan review process, but also to be able to make an informed decision when deciding on the loan amount, lender and repayment terms.  There are numerous lenders for you to choose from and in order to better understand the commercial real estate investment market, it is imperative to master some of the terms used in commercial real estate. The list below will help you acquire a basic knowledge of commercial real estate investments and lending.

Capitalization rate or cap: Net operating income (NOI) divided by the purchase price.

Net operating income (NOI): gross operating income minus operating expenses.

Cash on cash return: Cash Flow Before Taxes (CFBT) divided by the initial investment. Best indicator of the quality of investment.

NPV (Net Present Value): A method for calculating the present value of future cash flows. Useful for comparing different investments and their returns. Most of the calculators on the NPV calculations.

IRR (Internal Rate of Return): Calculated by setting NPV = 0 and find out what discount rate would be. Use a calculator to make this calculation.

Coverage Ratio of debt: NOI / loan payment. This is what your bank will want to know before lending money for investment.

Return on Equity (ROE): CFBT divided by equity. Same as cash during the first year, then declines because their heritage is growing faster than NOI (due to depreciation and the withdrawal of mortgage).

Discount Rate: Rate of future cash flows are discounted (devalued) per year.

Capital Performance: the most complex of the capitalization of income that is more in the future and tries to estimate return on a planned waiting period (usually 10 years).

Projected Gross Operating Income: Annual income of the Property, if all the spaces were rented and all income actually collected less an allowance for vacancy and credit loss. This information is important to financial business professionals and lenders

Optimal retention period: Number of years for a property in order to maximize ROE. After this period it is best to sell or trade the property.

Triple Net (NNN) Lease: This lease whereby the tenant pays for common area maintenance (CAM), real estate taxes and insurance for the construction and property. Most retail leases triple net are considered. Tenants who have a triple net lease is responsible for payment of these items in addition to base rent on a pro rata basis.

Usable square feet: Total square feet within the walls of the space leased. Actual space available for the exclusive use of the tenant.

Profitable square feet: Total square footage to calculate the rental rate, and may include a cast of lobby, hallways and other areas in the building available to and used by all tenants of the building. Expressed as a multiplier or SF load factor usable. Example: Profitable usable x SF SF = 1.15 (or load factor multiplier).

Load factor: If the tenant is entitled to hallways, elevators, bathrooms outside the room, lobby, etc., the owner will determine the number of square feet of this area exist and apportion able to other tenants. The tenant will pay rent for their prorated share of this number when the owner is calculated minimum income.

Learning these terms used in commercial real estate investment will help you to better understand the commercial real estate market and make informed business decisions.

Tags: , , , , , , , , , , , , , , , ,
Permalink

Commercial Loan Rates, How to Choose

Filed Under: Uncategorized by admin — Leave a comment
January 9, 2012

Believe it or not, it is possible to choose your commercial loan rates. There are lots of lending companies as well as banks which tend to push a set into the loan structuring but this might not be always useful for the individual or business paying back the loan on a monthly basis. As a wise borrower, you should not accept the first mortgage rate they can offer you and be prepared for the approval process. Many lending institutions will utilize lending ratios to determine your eligibility for the loan so it’s best to be prepared.

Commercial real estate loans are not only offered by banks. In fact, there are lots of professional independent commercial loan institutions with specific knowledge of the field of commercial real estate loans as well as loan refinancing. The rate is the interest amount you will pay back to the lender that is based on the percentage of the total amount of loan. When looking for a commercial loan, you need to know the different types of rates offered to you in your considerations of business funding.

Fixed rate of interest remains the same throughout the life of the loan. Whatever be the financial situation or if banks raise their prime lending rate, fixed rate will remain the same. Property rates in the area and the real estate sector as a whole will not have bearing on this sort of rate of interest. This is a great and safe choice as it signifies getting idea upfront on what you will pay. However, if the rates of interest significantly drop, you will be stuck on paying bigger sum than you are supposed to.

Flexible commercial interest rates are a fluid rate which is dependent on the rate of interest being charged by the lender at a specific time. Flexible type of rate is normally lower then prime lending rate. This is a wise choice to make because it means that you will not be paying more than you need to. The only problem it has is if the interest rates raise suddenly, you may be paying a lot more than what you expect.

The rates of which you can acquire the loans for serving for the financial needs in your business are known as commercial loan rates or business loan rates. Another important factor in these loans is knowing how to modify a commercial loan if necessary. Commercial loans are kinds of loans to ensure capital flow for your business need and these may be due to specific reasons including starting a new enterprise or growing and increasing an existing one. It could also be due to getting office equipments and space, raw materials, buying computers or any other financial requirement. Many business owners use this money to pay off salaries of employees and miscellaneous needs.

Under business or commercial real estate loans, you could borrow large amount of money and also the term of repayment could be anywhere between 5 to 25 years nevertheless this might extend depending on the borrowed amount and the policies of lenders. The interest that is paid on the loan is tax free. Commercial loan rates are available for the secured and unsecured type of business loans. Having a security, a borrower is able to get much better terms and rates but the unsecured solution provides you with faster approvals for quick business requirements. You can pick out any of these procedures of getting a loan based on your situation. Regardless of whether you choose the option of a bank for your loan or another finance company , it is a wise move to always be guided by a financial advisor that can help you make wise and beneficial decisions.

Tags: , , , , , , , , , , , , , , ,
Permalink

Summary of Financial Statements

Filed Under: Business Financial Statements by admin — Leave a comment
December 22, 2011

Understanding and being able to analyze Financial Statements is a very important thing to be able to do when operating any business. When these statements are properly prepared and interpreted, it gives the whole picture of the current financial condition, problems and possibilities of the company.

There are five parts of financial statements: the balance sheet, the income statement, the statement of cash flows, the statement of comprehensive income and the statement of stockholders’ equity. Each statement is separate but must be present in order to have a full picture of the business.

The balance sheet is a “photograph”. It represents the financial position of a business entity. The balance sheet must be used along with the other statements as a comparison to see how the business has done this year as opposed to the prior year. Balance sheets are presented at the end of the year.

The income statement is a summary of revenues and expenses with expenses being broken down into major categories. Income from operations is taken into consideration before other financial costs and the cost of non-operating items.

The statement of cash flows is a report that shows where the money came from and where the money was spent for a certain period of time. Understanding this document will help with better decision making with financial choices for the company.

The statement of comprehensive income must only be presented by those companies whose balance sheet shows equity from certain items such as foreign currency adjustments, pension liability adjustment and certain types of investment gains and losses.

The statement of stockholders’ equity’s a detailed list of the interest of company owners, including all stock issuances, repurchases, conversions, dividends paid and net income or loss.

For a business to always know how much it is losing or gaining, the business owner must learn how to read and understand financial statements.

Tags: , , , , , , , , , , , , , ,
Permalink

Strategy and Business Funding

Filed Under: Carlos Hank Rhon Financial Information, Carlos Hank Rhon Funding, Carlos Hank Rhon Lending by admin — Leave a comment
November 11, 2011

Everyone has to decide for themselves what level of sacrifice and risk they’re willing to undertake in order to enjoy the satisfactions of working independently. Knowing some strategies for managing the risk of starting a business will allow you to make a well-informed decision.

Finding funding can be a lengthy process. Often some financial aid is needed, particularly for small companies in order to balance the outgoings while the business gets under way. For most people, anything involving money involves some level of fear. It’s important to acknowledge to yourself and to others that you are taking a risk, and you’ve decided it’s a risk you want to take. So consider the fear of starting a business natural, and find ways to manage it. Conquering these fears is essential in business ownership.

The obvious solution for this might be taking out a small business loan and there are a number of companies and banks offering this service. If you choose this option be wary of loan sharks and improper offers and pay attention to detail. This is not however the only funding opportunity for small businesses, besides which some new and un-established businesses will struggle to find a company prepared to lend without feeling confident about the return of their money.

Small business loans can be a particularly attractive option as financing for small business a new business because the federal government sponsors programs that make funding start up businesses a priority. Business loans from a bank or financial institution can be short, medium or long term loans. It’s important to undertake a thorough cost-benefit evaluation of your business loan options to identify the most suitable loan for your needs. For example a short term loan such as bank overdraft facility might be the most appropriate and cost effective option if you require finance to cover periodic cash-flow shortfalls in terms of your day-to-day operations.

A Medium term loan might be more suitable if you require business finance for a 3-10 year period to finance equipment, business expansion or development of new product lines. If you require finance to purchase land, property or other businesses in order to expand your operations to boost profit over a period of years, a long term loan will probably be the most suitable business loan option.

Banks, in particular, take a much more critical look at small business loan applications than many did in the past. They are requesting more background from potential borrowers in the way of tax returns both business and personal, financial statements and business plans. Regardless of which type of financing for business you decide to pursue, your preparation before you approach a potential lender or investor will be critical to your success.

Tags: , , , , , , ,
Permalink

Turning Your Business Idea Into Reality

Filed Under: Carlos Hank Rhon Commercial Loans, Carlos Hank Rhon Financial Information, Carlos Hank Rhon Funding by admin — Leave a comment
September 20, 2011

It is well known that you can have the best business idea or the most innovative products on the market, but if not essential financial skills in managing money in your business, you have little chance of survival. In considering a small business start up, you should proceed with caution, never invest more than you can afford to lose, and investigate before you invest.

Greater numbers of public investors are getting in on the ground floor by investing in small businesses. When successful, these enterprises enhance the economy and provide jobs for citizens. They can also provide new investment opportunities, but that must be balanced against the inherently risky nature of small business investments. With the current economic outlook it is imperative the need for better financial education, starting with personal bonds and especially internet entrepreneurs investing money.

Other businesses around you are making changes and progress, yet you are not sure how they are doing it. You want to grow and you see an opportunity but you need small or new business financing. That is no small feat in today’s market. With financing for small business there are some preliminary things that you need to know and that is where the advice of an expert certainly comes in handy. When you want to catapult your business to new heights you can easily see how utilizing someone with experience that comes from longevity in the business world can make a huge difference in securing your funds you your business.

The first thing which strikes to you while you hunt for business funds is, Where can I get find business grants to start a business? And, sadly, some of these individuals pay big money to attend business financing seminars that travel from city to city talking enticingly about free government money for your business. All you have to do is pay these folks up front and they will fill out some paperwork for you to apply for these grants. But all this does not ends here it’s a rather long way to go after that. Unless and until your business idea or plan is quite assuring govt. grants become difficult.

Sometimes the difference between keeping your business running at a slow pace or close the doors before they even have a good chance of success. When the option of choosing a loan seems like a good idea. Small business development and every small business start up require some sort of business funding. Either the business owner is independently wealthy or needs financing. The financing of small businesses are part of normal operations. Do not look at the need to take a loan as a sign of a bad business or bankruptcy. It is a necessary part of doing business.

Tags: , , , , , , , , ,
Permalink

Your Money, Your Business and the Internet

Filed Under: Carlos Hank Rhon Banking, Carlos Hank Rhon Financial Information by admin — Comments Off
September 13, 2011

Banking online is one of the newest and more important technological advances for the banking system and is now considered a common banking activity. Banking online makes basic banking much more accessible. Suddenly, you can perform many basic banking tasks whenever you would please. As long as you have an Internet connection, you will be able to perform all of these tasks. There are some things to know and consider about online banking to understand the connection between your money and the Internet.

Security
There are multiple things to consider with security and online banking. There are various parts of online banking that require special security precautions. Initially, you need to make sure that you are on a secure connection. There will be a small lock at the bottom of the browser. This lock means that the connection is secure, and that your information will be safe. You also need to be secure with your password and account. You need to create a password that is random and hard to predict. You also need to make sure that, when done with online banking, you log out manually. This can help to make sure that you are the only person who can get into your online banking account explains, Carlos Hank Rhon.

What Can Be Done
There are a lot of different things that can be done with online banking. All of your accounts can be viewed as well as research of various lending options available through your bank. You can see all transactions, and can see the balances for all of your accounts. You can easily transfer money between all of these accounts. You can pay bills online. You can set up an automatic online bill payment system that will cause you to be billed monthly. This makes sure that you do not miss any payments. You can also easily check up on rewards points for your credit cards through the bank online. All of this can be done wherever there is an Internet connection.

Downtime Issues
There are some downtime issues to consider when thinking about online banking. Just like any other website, the online banking website will have downtime. Some of this will be schedule for maintenance. Sometimes, this will be without notice. While online banking is nice, it may not be smart to fully rely on it for major banking issues.

Security issues are huge when it comes to online banking. Many people fail to realize that online banking can be somewhat of a safety concern, as far as your personal information is concerned. There are a lot of positives to online banking, however. Suddenly, you can do work with your bank, even when the bank is closed. This can save people multiple trips to the bank every year. There are some downtime issues, however. Just like any other website, online banking can feature downtime and technological issues. When this happens, the usefulness of online banking is gone. With all that being said, online banking is the most efficient way to work with your bank. Take advantage of this business commodity called online banking opportunities.

Tags: , , , , , , , , ,
Permalink
Powered by WordPress | Theme: Motion by 85ideas.