Traditional sources of financing business such as bank loans pose a challenge to small and medium businesses. In particular, innovative, new, and fast growing enterprises with higher risk profiles can’t get the funds they need from conventional sources. The same is the case for firms in transition like those in the process of changing ownership or control.
Every business needs funding at different stages such as when starting, embarking on a new project, during expansion or when finding its footing following losses. External financing in the form of just right loans is the most suitable means of achieving these objectives. In fact, external financing is essential to start, meet operating expenses such as payroll and inventory, and to grow the business.
Challenges of obtaining a bank loan for enterprises
Financing is a major hurdle facing most enterprises. Yet, many entrepreneurs are intimidated by the prospect of obtaining funds from the traditional sources, especially the banks. This is because these institutions set high lending standards which few enterprises can meet.
The situation is such that it is difficult for small businesses to find, request for, and obtain financing. Most financial experts think that this problem stems from the fact that most enterprises don’t take time to prepare for the process. They say that the issues around bank loans can be sorted out through due diligence.
This means that entrepreneurs looking to obtain external financing must have all the necessary documents needed by the lenders. This may work for established business. However, the problem remains for innovative, newer, and fast growing enterprises with higher risk profiles.
Alternative sources of Entrepreneurship Financing
To overcome the challenge of obtaining financing from conventional sources, many entrepreneurs are exploring new approaches to funding. This means that the most successful entrepreneurs are the ones who think outside the box. They think creatively about what they have to offer and also how to secure funding.
They know relationships are the key to securing funding, so the develop quality networks. Their approach is to sell themselves, more than what they have to offer, to secure all alternative sources of financing. Also, they remain open minded and never rule out any approach.
Some of the top new approaches include-
The most successful entrepreneurs use their own resources to start the business. They save money over time and grow a fund they can use to start the venture. They also know that no investor will finance a deal where the entrepreneur has no financial stake in it. Personal financing is necessary to get the idea off the ground.
Personal credit lines
Credit cards come to the rescue of many small businesses. They are easy to get because they don’t need a lot of credit history. In fact, there are many startups that have used this approach. The main benefit is that the entrepreneur retains complete control and ownership while meeting the minimum payments.
The Investment Retirement Account monies and 401k’s are among the most accessible alternative financing sources for new businesses today. An entrepreneur can easily find many people willing to loan them money from their funds for the right terms. However, the entrepreneur must sell themselves and their idea to the lenders.
There are private lenders and non-profit organizations that offer small business loans. These can be useful to entrepreneurs who can’t qualify for bank loans. Also, they are suitable for micro business.
Online lenders are useful for entrepreneurs who lack collateral, need financing quickly and lack a track record.
The internet has revolutionized the way many things are done including business funding. Now entrepreneurs can find a group of likeminded people who can back their businesses through small contributions. This approach is evolving beyond non-profits and will soon include small equity investments.
Peer to peer financing
In this approach, a group of peers comes together to help each other financially. This approach can be used for a wide variety of financial needs. Entrepreneurs can use it to find successful peers willing to finance them.
In this approach, the entrepreneur talks the manufacturers and suppliers of goods and services into deferring their payments until the products are sold. This can lead to an extension of payment terms to a duration of months or longer. However, this depends on the entrepreneur’s creditworthiness and payment of additional fees.
Purchase order financing
Purchase order financing firms enable new businesses to overcome scaling problems. Most startups are unable to accept large orders because of lack of funds to make and deliver the products. Purchase order financing firms provide the needed amounts of cash directly to the suppliers. This enables the deal to be closed, and profit to accrue to the new business.
This approach is similar to purchase order financing. The difference is that the funds are provided to cover unpaid balances not yet due or received from clients. This approach is useful for high volume new business beginning to scale up. It provides the funds on the sales immediately instead of waiting for payment which can stretch from 30 -60 days or longer.
Family and friends
Many successful entrepreneurs tap into this resource. Usually, the commitments are positioned in writing as bridge loans or promissory notes. These can be converted to equity at a rate decided by other investors later on.
Every business needs funding at various stages such as when starting, embarking on a new project, during expansion or when finding its footing following losses. External financing in the form of loans is the most suitable means of achieving these objectives.
Yet, traditional lending institutions have set high lending standards which few enterprises can meet. To overcome this challenge of obtaining financing from conventional sources, many entrepreneurs are exploring new approaches to funding.
They think creatively about what they have to offer and also how to secure funding. Their approach is to sell themselves, more than what they have to offer, to secure all alternative sources of financing. Also, they remain open minded and never rule out any approach.
When Things Spiral out of Control: When Do You Need to Hire an Auto Accident Attorney?
No matter how careful you are on the road, accidents happen. In fact, the statistics say that over the course of a typical driver’s time spent on the road, they will have been in an average of 3 to 4 car crashes in their driving career.
Not all of these accidents will be major or result in injuries or more than minimal damage. And not every accident requires you to retain an attorney to help you handle the fallout after the dust settles.
So when do you know when to handle your accident on your own and when it is time to hire an attorney? Use these guidelines to help you make your decision.
When to Hire a Car Accident Attorney Immediately
There are times when you can put finding an attorney to help you on the back burner as a consideration, and times when you need to make it an as-soon-as-possible step on your to-do list.
- When liability is questioned – You will need to immediately seek an attorney if who is at fault is in question. If either party contests liability, it can be difficult to establish negligence on your own. Retaining an attorney who specializes in motor vehicle accidents can ensure that you avoid being claimed as the sole liable party when it was not your fault or the fault was in part the other party’s as well.
- When your insurance company doesn’t want to pay – Another situation in which you need to call an attorney quickly is when you have dealt with and been conned by your insurance company. It is in their best interest to pay you as little as possible for your claim, so it’s common for them to train their adjusters on how to minimize how much they have to pay out for claims.
One way they do this is by getting you to admit fault, at which time they can deny payment for valid expenses. If your insurance company has tried to get a statement from you and you have not done this yet, speak to an attorney first before talking to them. When you retain an attorney, they will deal with the insurance company for you and ensure that you receive the benefits that you are entitled to without a hassle.
- If you are injured in your accident – If you are injured in a car accident, as soon as you are able to, speak to an attorney. The extent of your injury at the time does not matter. You will need someone to advocate for you to be sure that your insurance company pays your claims correctly and your medical bills do not pile up on you.
Your insurance policy may have categories that you are not aware of but that you are entitled to coverage through. For instance, many car insurance policies will cover at least a portion of your rental car coverage if you have car damage. Some policies have coverage of lost wages if you are out of work due to a car accident injury. Your attorney will know what to look for and how to get you the most out of your policy.
- If a loved one was a victim of a wrongful death because of the accident. Serious injuries and fatalities are all too common in car accidents. When someone passes away as a direct result of the crash, it is called a wrongful death, and the immediate family members are entitled to seek out compensation against the party responsible for their loss.
Wrongful death claims can be complex cases involving multiple variables that need to be addressed as soon as possible. Witnesses will need to be interviewed before they begin to forget little details, the accident scene will need to be investigated before nature begins to cover up evidence, and other information will need to be secured.
For these, and other, reasons, it is crucial to hire an attorney immediately if there is a serious injury that could lead to long-term suffering or even death, or if there has already been a death because of the accident.
When You Can Try to Tackle the Accident Alone
As soon as you have been involved in a car accident and are able to physically do so, you will need to contact your insurance company. In some states, there are time limits for when you must have reported your claim or your insurance company can deny you your benefits, so do this quickly.
Once you report your accident, you may have to file a claim with the other party’s insurance to get your medical bills and lost wages covered, depending on if you are in a no-fault state or not.
This is a pretty straightforward process and your insurance adjuster will likely make it pretty simple for you to handle filing for your benefits. But once you have filed the claim, the insurance company will determine the value of your damage.
If your injuries are pretty mild and you don’t plan on seeking medical treatment, you can handle the case yourself at the beginning. However, if the insurance company denies the claim or it begins to become complicated, or your injuries get worse and you decide to obtain treatment, you may want to reconsider hiring an attorney to help you deal with the insurance company and get the benefits you are entitled to have with your state’s law and your insurance policy’s coverage.
Your Accident Determines Your Actions
Not every accident will be severe enough to result in damages and injuries, and that’s a great thing. But if you are injured in a car crash and you need help paying your bills and getting the benefits you are supposed to have, you are not alone, and you don’t have to handle the stress and paperwork on your own.
Don’t fight the big giants yourself – let an expert car accident attorney fight the battle for you while you concentrate on healing and getting back to your normal life.
Putting a Number on It: 2 Ways to Calculate Damages in a Personal Injury Case
When a person is involved in a personal injury case, such as one related to a car crash, there are two primary categories of damages for which the injured person can make a claim. These include economic or special damages and non-economic/ general damages. Special damages are typically easy to calculate because the exact monetary value is known, while general damages include pain and suffering, which may be a little tricky in calculating a dollar amount for loss. Two methods of calculating damages in a personal injury case are the multiplier and per diem or daily rate method.
The multiplier method can be used to value your claim and cover special damages. Special damages can be assigned a specific monetary value and includes compensation for the expenses you incurred that stemmed from the accident that caused the injury. These damages can include medical bills, lost wages, loss of profits and operating revenue, medication cost, hospital stay and any “out of pocket” expenses. The multiplier method is commonly used to add up all the special damages. An accident lawyer can guide you in understanding how the multiplier method works.
With the multiplier method damages are calculated by taking the known damages or special damages figure, like medical bills and lost income (losses), and multiplying that dollar amount by a designated number that corresponds to the severity of the injury sustained. For instance, if your actual damages are $10,000, and 2 is the established multiplier, the total damages would be $20,000 — the actual loss/damages is $10,000 and $10,000 is the recovery amount. The multiplier is a number between 1.5 on the low spectrum and 4 or 5 on the high spectrum. The multiplier can be determined by several factors associated with the case, such as the severity of your injuries, projected recovery time, how your injuries affect your daily life, or whether the defendant was unequivocally at fault for the underlying accident that caused your injuries. Ultimately, the strength of your case will determine the multiplier. The multiplier will be greater the more severe the damages.
Per Diem/Daily Rate
The per diem method is another approach applied in calculating damages. This involves demanding a specific dollar amount for every single day you had to live with the pain and suffering of the injuries caused by the accident. The biggest challenge with this method is justifying the per diem used in the claim. You can use your daily earnings to ensure that your daily rate is reasonable, and in so doing, offer a daily rate justifiably comparable to the amount you earn in daily wages. For example, if you are involved in a rear end collision and suffered a whiplash that caused you to wear a neck brace for 120 days, and your daily earning is $140, you would multiply your $120 daily rate by 140 days of pain and suffering, and you would get $16, 800. When it comes to permanent or long-term injuries, the per diem method gets more complicated.
Personal injury cases can be simple or complicated. However, with the right lawyer, the process can be easier to maneuver. Two common ways to calculate damages include the multiplier method and per diem. It is possible to put a number on damages and gain recovery for the injuries you have suffered.
Knowledge means power
Ever since the early ages, having the right information at the right moment has meant power, and only those who could work their way to get it, were able to enjoy that privilege. Today, the Internet has made a drastic change of things, spreading information throughout the world in a way that everyone who has access to a connected computer, can be easily informed of whatever is going on around the globe in a split-second. This fact has dramatically increased the capacity of every individual to choose and get the most from the information technology aimed for a better living.
Recent research points out that back in the year 59 BC, in the city of Rome, a pasquinade was used to keep the citizens informed about the daily actions of the Republic. But it was only until the invention of Guttemberg’s press, that the daily newspapers known today, finally appeared by the end of the 15th century in the form of single printed pages. As time passed by, printed press grew with huge strength, and in the year of 1690, the first newspaper named Public Occurrences, was printed in America on the day of September 25th, by Richard Pierce and edited by Benjamin Harris. It had only three pages.
During the 19th century the newspaper evolved and spread thanks to Otto Mergenthaler who invented the Linotype machine, the first device capable of printing a complete set of lines of type for use in the printing press. Since then, newspapers widely spread around the world until recent years when they are starting to migrate to an online format.
You can download everyday any newspaper in PDF
After the rise of the digital era, newspapers were forced to find out new ways to reach people, actual technology trends have driven big changes in the way daily tasks are done, a mere example is the availability of Internet to mass population. By the year 2007 the number of Internet users was already more than 1 billion, creating a new global landscape for all companies, including those dedicated to daily news of course. The level of information available nowadays represents a summit for journalism, but on the other hand, no one seems to be interested any more on reading from paper.
Opportunities for journalists to report spectacular news have grown exponentially but written media has experienced an awful decline. Since the Internet was launched back in the 90s, many newspapers have been forced to redefine themselves. That is exactly what the most experienced and powerful news companies have done: re-inventing themselves. They have played a crucial role in society for about hundred years until now, and these changes are not going to affect to them.
Studies show that even when fewer newspapers roll off the presses, that nightly network news are currently seen by less than half the people that used to watch them every night, and that news magazines are no longer what they used to be a generation ago, the news industry has found resources to feed from in digital media. You can now download every day newspaper in PDF and keep on enjoying the same outstanding information from the Starledger that used to be delivered to your family’s doorstep during your younger days, on a more convenient digital format now!
Gain back your access to the real stuff!
The Internet has replaced television and radio when it comes to breaking news immediacy. On the web, you can easily gain access to blogs of all kinds that provide endless analysis and opinions on whatever trends or news are on fire today, newsletters from sources of all kinds, videos of all sorts and countless other ways of getting information but, only by tracking down your own steps back to what you have known all your life as real and professional, is how you will seriously be informed with real free opinions and outstanding armchair analysis about your true interests.
This is why traditional newspapers have migrated to the net and you can now download every day newspaper in pdf, and read comfortably the New York Times just the way you have always liked, peacefully at home, at the time of your preference with the total confidence that what you are reading is trustworthy.
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