Small Business Finance – The Next Big Banking Problem?

For the past year, most banks and lenders have been subject to both disastrous operating results and negative publicity. Actual commercial lending activity reported by banks conflicts with the usual attempt by politicians and bankers to portray banks as normal and healthy. Most bank financial results have been disappointing after working hard to solve massive residential loan problems. It is reasonable to ask if commercial banking has more potential disasters about to emerge based on what has been seen and reported so far.

Based on a number of business financing statistics, commercial lending to small businesses is already on life support. In many cases, without government bailouts many commercial banks would have already failed. As bad as that perspective might sound, this report will provide an even more negative outlook for the future of small business finance programs. Unfortunately for banks and lenders, it does appear that business loans will be the next big problem.

During the past year or so, several banking problems have received significant publicity. The largely avoidable difficulties were primarily tied to increasing home foreclosures which in turn caused various investments tied to home loans to decrease in value. Such investments lost value so rapidly that they became known as toxic assets. When banks stopped making many loans (including small business financing), the federal government provided bailout funding to many banks to enable them to keep operating. While most observers would argue that the bailouts were made with the implicit understanding that bank lending would resume in some normal fashion, the banks seem to be hoarding these taxpayer-provided funds for a rainy day. By almost any objective standard, commercial lending activities have all but abandoned small business finance needs.

Small business financing appears to already look like the next big problem based on commercial finance statistics recently released by many banks. The general decline in commercial real estate values during the past several years is a major factor in this conclusion. Because many large commercial real estate owners could not make their commercial mortgage loan payments or refinance business debt, this has resulted in some significant bankruptcies. The resulting bank losses are clearly having an impact now on commercial lending to small business owners even though these difficulties were primarily happening with large real estate owners and did not usually involve small businesses.

Bank losses on large commercial real estate loans have caused many banks to reduce or stop their small business financing activities, and this has clear similarities to the earlier situation of residential mortgage loan toxic assets causing banks to stop normal lending because of capital shortages. The bank losses from large commercial property investors are producing a ripple effect that has caused small business financing to effectively disappear until further notice. While small business owners did not cause this problem, they are suffering the immediate consequences when banks are unable or unwilling to provide normal levels of commercial financing to them. This bad situation is made even worse when we learn that many banks are hoarding cash and approving fewer commercial loans to allow them to quickly pay bailout funds back to the federal government. The primary logic for this approach is that it will allow banks to resume excessive bonuses and compensation to their executives.

Unfortunately one problem will lead to another, as is common with complex circumstances. The failure to obtain normal business financing will most likely lead to an increasing number of commercial loan defaults by small businesses. Prudent business owners should begin to take action now in a timely manner to avoid such negative consequences. The most serious small business finance problems can be anticipated and avoided with appropriate action.

Even if they do nothing else, business owners should have a straightforward conversation with a small business finance expert to assess how exposed their business might be to the brewing commercial banking problems. If recent events are any indication, the banks themselves will not be very forthcoming about problems with their commercial lending practices. For many small businesses, the most objective business financing expert is not likely to be their current banker. To increase the chances that they receive sufficient small business loans in the face of ongoing lending problems, a healthy amount of skepticism and caution will be helpful for business owners.

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Small Business Financing Options – Despite the Credit Crunch

There’s no question that the financial crisis and ensuing credit crunch have made it more difficult than ever to secure small business financing and raise capital. This is especially true for fast-growth companies, which tend to consume more resources in order to feed their growth. If they aren’t careful, they can literally grow themselves right out of business.

Amidst all the gloom and doom, however, it’s important to keep one thing in mind: There are still options available for small business financing. It’s simply a matter of knowing where to look and how to prepare.

Where to Look

There are three main sources you can turn to for small business financing:

Commercial Banks – These are the first source most owners think of when they think about small business financing. Banks loan money that must be repaid with interest and usually secured by collateral pledged by the business in case it can’t repay the loan.

On the positive side, debt is relatively inexpensive, especially in today’s low-interest-rate environment. Community banks are often a good place to start your search for small business financing today, since they are generally in better financial condition than big banks. If you do visit a big bank, be sure to talk to someone in the area of the bank that focuses on small business financing and lending.

Keep in mind that it takes more diligence and transparency on the part of small businesses in order to maintain a lending relationship in today’s credit environment. Most banks have expanded their reporting and recordkeeping requirements considerably and are looking more closely at collateral to make sure businesses are capable of repaying the amount of money requested.

Venture Capital Companies – Unlike banks, which loan money and are paid interest, venture capital companies are investors who receive shares of ownership in the companies they invest in. This type of small business financing is known as equity financing. Private equity firms and angel investors are specialized types of venture capital companies.

While equity financing does not have to be repaid like a bank loan, it can end up costing much more in the long run. Why? Because each share of ownership you give to a venture capital company in exchange for small business financing is an ownership share with an unknown future value that’s no longer yours. Also, venture capital companies sometimes place restrictive terms and conditions on financing, and they expect a very high rate of return on their investments.

Commercial Finance Companies – These non-traditional money lenders provide a specialized type of small business financing known as asset-based lending (or ABL). There are two primary types of ABL: factoring and accounts receivable (A/R) financing.

With factoring, companies sell their outstanding receivables to the finance company at a discount of usually between 2-5%. So if you sold a $10,000 receivable to a factor, for example, you might receive between $9,500-$9,800. The benefit is that you would receive this cash right away, instead of waiting 30, 60 or 90 days (or longer). Factoring companies also perform credit checks on customers and analyze credit reports to uncover bad risks and set appropriate credit limits.

With A/R financing, you would borrow money from the finance company and use your accounts receivable as collateral. Companies that want to borrow in this way should be able to demonstrate strong financial reporting capabilities and a diverse customer base without a high concentration of sales to any one customer.

How to Prepare

Regardless of which type of small business financing you decide to pursue, your preparation before you approach a potential lender or investor will be critical to your success. Banks, in particular, are taking 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.

Lenders are focusing on what are sometimes referred to as the five Cs of credit:

o Character: Does the company have a strong reputation in its community and industry?

o Capital: Lenders usually like to see that owners have invested some of their personal money in the business, or that they have some of their own “skin in the game.”

o Capacity: Financial ratios help lenders determine how much debt a company should be able to take on without stressing the finances.

o Collateral: This is a secondary source of repayment in case a borrower defaults on the loan. Most lenders prefer collateral that is relatively easy to convert to cash, especially equipment and real estate.

o Conditions: Conditions in the borrower’s industry and the overall economy in general will play a big factor in a lender’s decisions.

Before you meet with any type of lender or investor, be prepared to explain to them specifically why you believe you need financing or capital, as well as how much capital you need and when and how you will pay it back (if a loan) or what kind of return on investment a venture capital company can expect. Also be prepared to discuss specifically what the money will be used for and what kind of collateral you are prepared to pledge to support the loan, as well as your sources of repayment and what measures you will take to ensure repayment if your finances get tight.

You should also ensure that your financial statements and records are current and that your internal control systems are adequate for handling the level of accounting and bookkeeping lenders and investors expect.

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Comparison Of Php Mysql Programming Language With Others?

A HTML page that incorporates a PHP script is regularly given a document name addition of “.php” “.php3,” or “.phtml”. Like ASP, PHP can be considered as “dynamic HTML pages,” since substance will differ in view of the aftereffects of deciphering the script.
PHP is free and offered under an open source permit.
Why PHP?
The PHP programming language t is a server-side HTML implanted scripting language.
The PHP language keeps running on the server-side. This implies the executions (read beginning) of the scripts are done on the server where the site is facilitated. HTML inserted implies that you can utilize PHP proclamations (read a bit of PHP code) from inside a HTML code. PHP documents are come back to the program as plain HTML.
A scripting language is a type of programming language that is generally translated as opposed to incorporated. In programming language such C or C++ you incorporate the program (for all time) into an executable document, before you can execute the program. A program that is composed in a scripting language, is deciphered one summon at once by a charge translator (Command mediator is by and large an executable written in another language (for example C/C++) than the scripting language.) Some different cases of scripting language are Perl, Phyton, Java and Ruby.
A last note: scripting languages are likewise frequently utilized by applications as control or design language. An illustration: Firefox is composed in C/C++ and can be controlled with JavaScript.
Things You Should Know
Since PHP is a HTML implanted language you ought to have an essential comprehension of HTML/XHTML and (a bit) JavaScript. In the coming instructional exercises we will clarify the PHP code, however we won’t clarify the HTML code (at any rate not in extraordinary detail.)
What is PHP (Hypertext Preprocessor)?
‘It is a server-side scripting language.
‘PHP is free and is an open source programming language.
‘The PHP scripts are executed on the server.
‘PHP underpins numerous databases (MySQL, Sybase, Oracle and numerous others.)
‘PHP keeps running on various stages (UNIX, Linux and Windows.)
‘PHP is perfect with all web-servers utilized today (Apache, IIS, and so on.)
‘A PHP record can contain plain content, HTML labels and scripts
‘The PHP documents can have one of the accompanying augmentations: php, php3 or phtml.
What do you require PHP MYSQL?
�Access to a web server (like Apache)
�PHP and MySQL ought to be introduced on the web server.
�It is additionally a easily to know programming language.
�Also has enormous group bolster.

The simplest path is to locate a web facilitating arrangement that bolster PHP and MySQL (a large portion of the web-facilitating suppliers do. The preferred standpoint is that everything is now introduced and that you can share your program (that you will compose) with whatever remains of the world. PHP MYSQL is programming and is additionally very adjustable.

On the off chance that you would prefer not to burn through cash, you can likewise introduce everything on your neighborhood machine. The most effortless route is to introduce WAMP and LAMP both are work in Linux machine. (WAMP = Windows Apache Mysql PHP and LAMP = Linux Apache Mysql PHP.) These bundles introduce all that you require. Perused the introduce manual of these bundles for directions. After establishment you ought to have entry to http://localhost in your program.

Why PHP is a higher-ranking?

Java and PHP are regular and also vital to now a day web and are too similarly crucial. In any case, for amateurs PHP is the undeniable decision in light of the fact that:
‘Less programming language.
‘Flexible
‘Fast
Differences between Dot NET and PHP
� Dot NET is not a language. Spot NET is a system that can be consolidated alongside numerous languages while PHP is a HTML installed scripting language.
� Dot NET runs just on windows or IIS while PHP keeps running on any Operating framework and HTTP server
� Dot NET is not an open innovation. Spot NET requires overhauling the equipment and burning through cash for programming licenses. In any case, PHP is an open innovation. PHP is free of cost and accessible free on web.
� Dot NET is not that simple, while PHP is effectively learnable and justifiable.
� Dot NET backings OOPS worldview and OOPS ideas however while PHP does not execute OOPS ideas.
That is just for this PHP language presentation instructional exercise. We trust that you will take in something from the coming PHP instructional exercises and as dependably we trust that you will fill us in as to whether something isn’t right by leaving us a remark.
Differences between JAVA and PHP
PHP is a language that is particularly intended for web programming with inherent coordination with the most prevalent open source database MySQL.
Simple to utilize: Compared to most arrangements like e.g. Java, PHP doesn’t should be ordered, so it’s simply to compose the script and after that transfer it to the server and after that refresh the program.
Incorporated database bolster: PHP has (for the most part) implicit support for the most prominent databases like e.g. MySQL, that implies it is anything but difficult to begin utilizing databases no extra drivers should be introduced, just to utilize the mysql-capacities. The simple to utilize online administrator apparatus PHPMyAdmin (discharged 1998) is likewise critical to the PHP’s accomplishment in mix with MySQL.
Modest facilitating: Since PHP has existed for long time and works great on both Linux and Windows, and numerous web servers have bolster for it. There is no issue to discover facilitating with PHP pre-introduced.
The client simply need to include a couple PHP-labels with e.g. a for-circle in its current HTML-records and after that transfer it to the server and see the outcome or a mistake message. Dynamic writing and affiliated clusters makes it additionally simpler to begin utilizing PHP.

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Quick And Fast Logistic Delivery Solutions Presented By Eagle Technosys

Eagle Technosys is a software development company that offers web services. Eagle Technosys is an Indian Company and but it works will all regions. Eagle Technosys have customers from all regions. Eagle Technosys is a multiscript company as it works with Real Estate Script, Courier Tracking Software, Logistics Scripts, B2B Marketplace Script, B2C Marketplace Script, Classified Script, Dealkart, Shopping cart Software, Hotel Booking Script, Tour Package Booking, MLM Networking,PHP Betting Script. Logistic Scripts of Eagle Technosys are very great and advanced featured. Logistic Script of Eagle Technosys include Parcel Delivery Booking Script, Uship Clone Script, Pro Same day delivery Script, Delux Same day delivery Script, Container Delivery Script, Car Delivery Script, and Parcel Car Container Delivery Script. One can book orders online individually or in bulk. You just need to give your order and choose the package details from the web site and your order will be delivered accordingly. Eagle Technosys provide you to track your parcel or container online. So, You can track the position of your order online with the tracking feature and you can also print it as Eagle provided the print option on page. Once you have make an order online you will have to pay according to your package you have chosen for delivery. You can make payment online according to your convenience as Eagle provide you all the best ways of make payment online. Eagle Technosys has top 5 rank in Google Adsense. Eagle Technosys is very advance company. It is growing higher day by day. Eagle Technosys launched Aliexpress Clone Script very recently. Eagle’s Aliexpress hold the B2B and B2C business. It offers different types of membership packages for the users that want to become member and learn the tricks of e-commerce business.

Golden Features Provided By Eagle Technosys To Its Users Are:

Eagle Technosys provide Multi-Scripts to users.
Eagle Technosys provides easy and fast way of order making.
Eagle Technosys believes in quick and fast reply.
Eagle Technosys provides payment gateways according to place to place.
Eagle Technosys provides different order packages, user can chose according to need.
Eagle Technosys provides online tracking feature.
Eagle Technosys provides membership packages. User can join membership according to his desire.
Eagle Technosys provides business tricks to businessmen.
Eagle Technosys provides as possible as best custom solutions to users .
Eagle Technosys is a lite software.
Eagle Technosys is mobile compatible.

About Author:- I am Wahenoor kaur. I am a SEO and content writer. I have written many blogs, articles, forums and classifieds and posted on Google Adsense. I love all the designs on Google posted by others. I appreciate all the web designing languages like PHP, Java, .net, Python. I am familiar with .net and PHP.

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