Archive for the ‘Business’ Category

If you’re a business owner, it’s a pre-requisite for you to identify the most appropriate structure through which you may run your business successfully. No what do you mean by an appropriate structure for your business organization? Well, an appropriate structure is that which will not only offer you taxation benefits but also provide your business with enough flexibility and safeguard it from the most common business risks. In the present volatile economy, this move by all business organizations is more important than ever. Failure to protect your assets may make you run into the risk of incurring business debts and require running to business debt consolidation non-profit companies for financial help. But will you benefit by getting in touch with them or will it be just a waste of time?

Well, the debt relief companies are all there to assist you in getting out of business debts and re- establishing a firm footing in the market, but is it not always better to stay safe than sorry? You bet it is. An effective business structure does not always need to be complex but rather requires enough consideration of the present and future needs of the business organization.

Considerations of asset protection and its importance to a business

The increasingly litigious economic environment in the US makes asset protection a mandatory consideration for all business owners who are keen on staying afloat. A business organization might be at the risk of being sued by its customers, suppliers, employees and even by the regulatory bodies for breach of law. This is the reason why the business structure that you choose must provide high level of protection of your personal financial assets of the company. Does this mean that the personal assets of the business owner are not at risk of being sued? Yes, it is not at risk unless the company is proven to be trading while being insolvent. During such a situation, the Director’s personal assets may also be at risk.

Using a Trust structure to operate a business can be a good asset management strategy that you can adopt. Through a Trust structure, the assets of the business will be separated from that of the individual and this will enhance asset protection of the company as a whole. The Trust is not a separate entity but the business operations will be held in the name of the trustee. However, a note of caution is always given by the asset management experts that you must ensure that the personal assets are held separately from the business. When the business underperforms your personal assets may be at risk and this can only be avoided by effective business structure.

Often there are business owners who do not have a perfect Will in place or have a Will that was drafted ages ago. Such Wills that were drafted ages ago usually do not reflect the present asset holdings and the financial circumstances. When a Will is appropriately crafted, it will provide effective asset protection for your family by ensuring that the assets are equally distributed among your beneficiaries of choice, in the event of your death.

There may be some other structures like operating your business in your own name as the only trader of the company or through a partnership structure. But such aforementioned structures do not provide flexibility to distribute the income and also offers low levels of asset protection for the company. With so much economic uncertainty at the moment, asset protection is one of the things that you can do in order to get back your peace of mind, irrespective of what is happening in the economy.

 As the CEO of Commerce Financial Inc., it is very important to exercise good business practices in today’s turbulent economy. Exercising good business practices fabricate cross functional growth and expansion that ensures a company success. Therefore, when pursuing new business, keep this in the forefront of your efforts.

 “ALWAYS SEEK THE TRANSACTIONS THE CAPITAL MARKETS DEMAND AND NOT THE CAPITAL MARKETS THE TRANSACTIONS DEMAND.”

 I know this seems painfully obvious but often times we get wrapped up in the “story” and we spin our wheels for days, weeks and months.  This can also be applied in reserve, do not waste time with lenders, investors and “funds” that cannot deliver the capital.

 I hope this helps as always lets us know how we can help you grow.

An annuity is a retirement account with air bags. Buyers invest a sum of money in a particular annuity, and in exchange, they’re guaranteed a steady monthly check for a set number of years, or for life. The money in an annuity is invested by an insurance company and buyer, in turn, receive a series of payments.

Annuities are issued by insurance companies and sold by insurers, brokerages and mutual fund companies. All are marketed as investments that provide peace of mind for people who want to secure their lifestyle in retirement and ensure they won’t outlive their savings.

While most annuity buyers plan on long-term payouts from their contract some years into the future, life changes may present the need for immediate emergency cash. Such needs may prompt a buyer to ask how they can cash in his or her annuity right away, rather than continue to take regular payments. The simple answer is to sell it to Commerce Financial Inc.

Nevertheless, according to tax law, the payments Buyers receive from his or her annuity count against earnings first. So if a buyers total return over the life of the annuity is 12%, than his or her payments up to that amount, no matter how long a time they are spread out over, are taxed as both income and capital gains. If a buyer cashes his or her annuity before the 12% earnings have been paid to buyer, the remainder of that tax burden comes out of that investors’ lump sum.

Kind regards,

 Marlo http://www.commercefinancialinc.com

As the economy shows signs of substantial improvement, the commercial real estate industry is emerging from a transitional phase in 2010 to a recovery stage in 2011. Institutional-quality real estate assets in primary markets have begun to stabilize and appear to be poised for recovery.

However, several uncertainties at both the macro and fundamental levels remain. Here we highlight the top 10 challenges facing our industry in 2011:

1. Economic recovery — Recent evidence suggests that the U.S. economic recovery is gaining strength. Corporate earnings are strong, with record amounts of cash on firms’ balance sheets.

2. Residential housing market — With the help of government tax incentives, the housing market has shown some signs of stability.

3. Job growth — During the recession of 2008-2009, the economy lost a total of 8.4 million jobs. In 2010, we regained approximately 1.1 million jobs. Private sector employment has shown decent growth..

4. Government and Fed policies — The Federal Reserve’s QE2 program of purchasing $600 billion in long-term Treasuries and the extension of the Bush tax cut program have without a doubt provided a significant short-term boost to business and consumer confidence.

5. Inflation and interest rates — The latest inflation data suggests low inflationary pressure for now. Several factors are contributing to this, including the high unemployment rate, high worker productivity, underutilized manufacturing facilities, and low-cost imports from emerging countries.

6. European sovereign debt crisis — Since the Greece sovereign debt crisis in April 2010, a few other European countries such as Ireland, Spain, and Portugal have also experienced signs of distress.

7. Geopolitical risks — A few geopolitical uncertainties are posing potential risks. In particular, tensions between Iran and Israel, conflicts between North and South Korea, and the possibility of a terrorist attack could cause significant volatility in the marketplace and undermine public confidence.

8. Capital market environment — The commercial real estate capital markets have improved remarkably over the past 18 months. Lenders, especially life insurers and foreign banks, have re-entered the commercial mortgage market, creating more choices for borrowers as well as lower mortgage rates and higher loan-to-value ratios for high-quality assets.

9. Loan maturities — Maturing commercial real estate debt remains a daunting challenge facing the industry. Over $1.1 trillion of debt is scheduled to mature from 2011 through 2014.

10. Real Estate fundamentals — 2010 was a transition year for commercial real estate with vacancy rates of all property sectors bottoming. Corporate tenants are taking advantage of lower rents to “right-size” or consolidate their space. As a result, leasing activity has surged over the past three quarters.

Nonetheless, large shadow inventory still remains a challenge, especially in the office sector. In this past downturn, many big companies went through large-scale layoffs without shedding significant spare space. The pace of occupancy recovery could be moderate as a result.

With improving fundamentals, we believe the commercial real estate market will attract significantly more investor interest and new capital. Investment activities will likely expand beyond the traditional core into the lesser-quality assets and secondary markets in 2011. Please visit our website at http://www.commercefinancialinc.com and connect with us on Linkedin http://www.linkedin.com/in/commercefinancialinc

How an SBA Loan Works

I will not pretend to be an expert on all the intricacies and rules.  The SBA has a number of programs, offering loans of different lengths of time and for different purposes.  The SBA has programs for both revolving lines of credit as well as standard 10-15 year loans.  Each of these programs has different under-writing criteria, fees, and limitations, which a banker or a commercial finance advisor  will have to explain to you.  Most SBA loans, including one of my clients, fall under the section 7(a) program.

As stated in the intro, an SBA 7(a) loan actually is issued by a bank, but to SBA underwriting criteria and with an SBA guarantee.  The SBA only guarantees a portion of the loan, something like 50-75% depending on the exact loan type, with the bank taking the rest of the risk.  These loans are issued at a floating rate of prime plus a percentage, and the SBA has rules that caps the rates as well as fees the bank can charge.  The SBA charges a substantial fee, in the 2-3% of total loan value, up front to the borrower for the guarantee.

Choosing the Bank is Critical

From the section above, it should be obvious that you should strongly consider working through a bank that has the preferred lender status with the SBA.  Note that having or not having this status does not necessarily correlate with bank size.  In previous years, The “expert” my client was hooked up with at Bank of America (client main bank) was useless, and told my client in so many words that it would be impossible for him to ever get an SBA loan.  He ended up getting a line of credit. However, a few years later the client came to Commerce Financial Inc and we went through a prefer lender or PLP. PLP had the whole process automated, and when combined with a very knowledgeable banker on the front end named Jon Cosentino here in Albany, the process was as smooth as silk and very, very fast.  In fact, my client got the whole loan done in less time than it took B of A two years ago to do his line of credit.

If interested in SBA loans, please visit our website for more information at http://www.commercefinancialinc.com

Anthony Carty, director of Clifton Asset Management, said:

“In today’s uncertain market attracting funding during the early stages of development can be a real challenge for start-ups and small businesses. With banks closing their doors to firms unless they have the relevant collateral or materials to secure against any investment, business owners need to look at different ways to access finance.

“One alternative source of finance for the business owner who has accumulated a pension over their working life is pension-led funding. A pension fund can be an extremely valuable asset when invested properly and can be used to help a business grow while providing contractually protected and attractive investment returns to the pension scheme.

“This can be done in two ways; by making a simple secured loan to the business, or by buying an asset in the form of Intellectual Property, a Trademark or Copyright for instance. This asset can then be leased back to the company, providing an income stream for the pension going forward.

“Whilst it is vital for the business owner to be aware of the risks associated with this type of funding there are benefits from being able to invest in a business under your own terms.

“Perhaps most importantly it gives the business owner the flexibility to reduce their reliance on traditional lending providers such as banks and as funding from such sources continues to dry up this can only be a good thing”

Kind regards,
Marlo Barge
http://www.commercefinancialinc.com

Marlo Barge
CEO/President
Commercial Financial Inc.
877-759-9311—daytime
310-279-0276 — evening
News Release
Date: 04/11/11
FOR IMMEDIATE RELEASE
San Diego New Service Already Helping Companies Access Corporate Funding Solutions

(San Diego, California – 04/11/11) – Commerce Financial Inc. a six month old new service – http://www.commercefinancialinc.com – aimed at business owners looking for working capital funding for medium to large scale projects, has already helped several companies on their way to potentially securing corporate finance.

However, the current economic downturn has made it difficult to qualify for a traditional business loan from banks, especially for a struggling business owner, with bad or no credit.

This service – which offers a range of worldwide corporate funding options from $5M – can help businesses potentially benefit from the availability of 100% funding for worldwide projects and with a few limitations.

In just the six months of business, they have already helped the following projects access potential funding such as, venture capital project, energy financing project, equity financing project, mezzanine financing project, debt financing project and plus many more enquiries.

Spokesperson Kris Roglieri Expert Commercial Finance Advisors says: “With banks restricting lending during this economic climate, Worldwide Project Finance offers an exciting, unique, and alternative source of investment. As our first customers have shown, we can help businesses access finance for a wide variety of different projects, from hotels and resorts, to more greener funded environmental projects such as green energy, wind power, solar or bio fuels based projects. We also work in a range number of sectors and will always look at any type of projects”.
Businesses can find out more by visiting http://www.commercefinancialinc.com and/or https://commercefinancialinc.wordpress.com/

Contact: Marlo Barge/CEO on: or email: info@commercefinancialinc.com