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Unsecured Business Loans – Get Risk Free Funds For Your Business

Businesses require a firm financial support at every level. Since every business owners plans his or her business as per the availability of finance, people, who do not possess any such financial resource, get depressed due the unavailability of fund. Starting a new business is not an easy task, as it demands dedication and firm financial support of the business owner, usually, people get a smaller amount arranged very easily, almost every banks and financial institution offer that small amount for every business owner.

When it comes to searching for a loan that may meet each and every financial requirement of the sapling business, borrowers face various problems. For borrowers, who have any high valued property to keep as collateral, getting business loans are not that tough, as the lender may recover the loan amount through that collateral. But if you are looking for a business loan but do not possess any high valued property to keep as collateral, then unsecured loans are the only available option for you. With unsecured business loans you can get suitable amount for running your business smoothly without risking your home or any other asset.

Unsecured business loans ensure that with them you can avail the suitable loan amount without submitting any collateral. In fact these loans can enable a business owner to meet every expenditure right from staff salary to marketing and promotion expenses. Moreover, with this loan amount can also be used in buying raw material, equipments, machinery, and furniture. You take unsecured business loans without incurring any risks as lenders do not demand any collateral to provide the loan amount. The lender however analyzes all your details thoroughly, so that he may determine whether you are capable of repaying the loan amount or not.

This analysis also includes checking of income statements, tax statements, credit history and track record of your business. In fact, for the lender checking all these details thoroughly is quite necessary, as it enables the lender in deciding over your reliability. But always remember that for cutting this risk, lenders charge higher interest rate. Since this interest rate is determined only after analyzing your credit details, you can reduce that interest amount if your credit record is exceptionally good. Therefore, if you are ready with all your details then search for a renowned and reliable lender that may provide you with easy and affordable unsecured business loans.

Since businesses are full of uncertainties, the lender provides these loans for a very short time period. Basically unsecured business loans offer a repayment term of 5 to 15 years, so that the money can be recovered from the initial profit amounts. People, who are not getting the desired loan just because of their bad credit history, can also get a suitable business loan, as there are some lenders who offer unsecured business loans for people with bad credit history. These loans also give bad credit borrowers an opportunity to improve their credit history, as they can improve their credit score repaying their loan on time.

Step 1 – Make Financial Goals Part Of Your Business Vision

Eight out of ten new businesses fail in two years or less. One of the top reasons is they do not accurately see the financial future of their business. Before you even begin to write your business plan, regardless of the type of business, you will need to have an accurate vision of what your personal financial needs will be once you start your own venture. You cannot base you needs on your current earnings, as there are other factors to calculate into the total such as health insurance, business licenses and other business-related costs.

While some of the costs of start-up will be one-time fees or will represent annual costs, other will be monthly and weekly costs. The first step is to determine what you and your family needs to meet your obligations including rent or mortgage payments, utilities, food and typical household expenses. If your spouse is the one handling the family’s financial affairs you will need their input in determining your minimal monetary needs. Yes, you need to tell your wife you are starting a business!

Once you have your home budget, you can begin estimating business costs. Even though you are setting up an office in the home and plan to take a business use of the home tax deduction, you should still consider the portion of the rent and utilities that will be represented by your tax deduction as a business expense. For example, if your monthly mortgage payment is $1,000 and you can allow 10 percent of house expense as a deduction, then plan on $100 being spent on your place of business.

The same should be planned for utilities and other costs, including a telephone line. Even though you probably have a home phone, a separate line for the business is a good idea to prevent interruptions at home after hours as well as to keep children from answering the phone when a potential client calls. It just sends a more professional message when the business phone is answered in a business manner.

Conservative estimates can be a good starting point, but you will also need a contingency fund in the event of an unforeseen repair or a project that gets out of hand and costs more than anticipated. Once you have gong through the home and business expenses you will have a good idea of how much money you have to bring in through the business to maintain your family lifestyle and meet your business expenses.

Now it is time to seriously think about the projected income of the business. Remember it is not only the business expenses you need to cover. For example, if you anticipate personal expenses of $1,500 a month and business expenses of $500 a month, anything less that $2,000 a month is going to leave you with some unpaid bills. If the business you are planning to open is not capable of delivering that amount of income, you may have to rethink your prospects.

Even if the potential is there for a minimum of $2,000 per month, you will need to be realistic about how long the business will need to be operating before that level is achieved and determine if you have enough money to survive until it does grow to the necessary level. Every new business has a break-even number and that needs to be known. You also need to know your projected dream income to target. A mental goal of your business income is good for your mental and emotional success. Don’t forget that number. So, if you are starting your own business your first step is to do your financial budgets and projections. Financial goals are an important part of your business plan.

Top 5 Reasons Everyone Should Own a Home Business

I have had so much fun owning and operating my home businesses in the past three years. When I first started my pet sitting business I just wanted to care for others pets and be my own boss – I had no idea of the other benefits owning a home business could offer. Here are my top five reasons that I believe everyone should experience owning their own home based business:

1. Tax Advantages

Many of your everyday expenses become tax deductible when you own a home business. Depending on the structure of your business these deductions can apply against your business and your personal income. Some examples of deductions include:

a) Home-office deduction – you can claim a percentage of your home expenses if part of your home is used regularly as an office for business use. These expenses may include maintenance and repairs (that are not capital in nature), rent, mortgage interest, house or apartment insurance, power, heat, water, and property taxes.

b) Vehicle expenses for business purposes. If you use your car 50 percent for business purposes, 50 percent of your car mileage, maintenance and repairs, vehicle insurance, gas and oil, car washes, license and registration, and auto club can be claimed.

c) Office expenses such as telephone expenses, Internet access, office supplies, travel, books, and association memberships.

2. Personal Development

When you own your own business you get involved in marketing, sales, customer service, employee management, and record keeping. Often the rate of growth of your business is dependent on the speed which you can learn and master these new skills. Growing my business I have learnt to talk to people about my business, give business presentations and improve my speaking, design effective advertising such as brochures and business cards, and publish a website and e-zine. All these skills I learnt through reading great books, attending seminars, and learning from other business owners and with the attainment of these skills my personal confidence has grown.

3. Making New Friends One of the greatest outcomes of running my business is that I have met a variety of people and made new friends. These people include clients and employees, other business owners that I have met through networking and Chamber of Commerce events, suppliers, and other distributors in my candle home business. These people support me and I support them. When you start your own business you will inevitably meet as part of business associations or part of your business team if you are involved in MLM, other entrepreneurs and business owners. You will find that these people share your vision and goals and that you’ll feel an instant sense of belonging in this group of like minded souls.

4. You Can Be Creative

When you own your own business you have the freedom to choose how you will advertise, package your product, and maintain customer loyalty. Some of the ways I have been able to express my personality in my business and be creative include designing brochures, business cards, and websites, finding value added benefits to differentiate my service, creating newsletters, and deciding on rewards to encourage regular customers.

5. You Can Dream Big

This one is my favorite so I saved it for last. When you are working for a corporation or even a small company your compensation is generally determined by industry standard. With your own business your income is determined by the amount of time and effort you put into the business, and your self development. A home business gives you the ability to dream big as no one puts restrictions on the growth of your business and your income but you. What are you waiting for? There are so many different businesses that you can start from home. Take a look at your current skills and interests and see how they can be applied to help people in need of your service or product. Take the plunge and start enjoying some of these great benefits that business ownership can offer!