by My Commercial Capital | Jun 16, 2023 | Blog
Freight companies play an important role in the economy, transporting goods from one place to another. But like any business, they need cash flow to operate efficiently and effectively. That’s where invoice factoring comes in. Invoice factoring is a type of financing that allows freight companies to convert their unpaid invoices into immediate cash.
How Invoice Factoring Works
Invoice factoring helps freight companies improve their cash flow by providing them with immediate access to capital. When a freight company sells its invoices to a factor, the factor pays them the value of the invoice, minus any processing fees associated with the transaction. This allows the freight company to have more cash on hand for operational expenses and other needs.
Preserve Credit Ratings
Another benefit of invoice factoring is that it can help a business improve its credit score. Since the factor assumes responsibility for collecting payment from customers, the freight company won’t need to take on any additional debt to cover unpaid invoices. This means they can build up their credit score without having to take on additional debt.
Achieve Rapid Growth
Invoice factoring also allows freight companies to expand their business more quickly by providing them with access to capital that they may not have had otherwise. Since the factor will assume responsibility for collecting payment from customers, the freight company is able to use the funds to invest in new equipment, hire additional personnel, and open up new routes or locations.
Faster and More Direct than Debt-Based Loans
Finally, invoice factoring is a fast and easy way for freight companies to access capital without having to go through the traditional lending process. The entire process can be completed within a matter of days instead of weeks or months. This means that freight companies can take advantage of opportunities as they arise and get the cash they need to grow their business.
Invoice factoring is an effective financing option for freight companies that are looking to improve their cash flow, build up their credit score, and expand their operations quickly. By taking advantage of this type of financing, businesses can stay ahead of the competition and keep their operations running smoothly. Contact My Commercial Capital today to start factoring your invoices.
by My Commercial Capital | Jun 9, 2023 | Blog
Investing in vacation rentals can be a great way to diversify your portfolio and increase your potential for higher returns. Vacation rentals provide investors with the opportunity to capitalize on the growing popularity of short-term rental properties, while also providing them with an additional source of passive income. With the right strategy and proper research, investing in vacation rentals can be an excellent long-term investment that will help you achieve financial freedom.
Location is Key
First, you should consider the location of the property. Vacation rental properties should be located in areas that are popular tourist destinations, such as beach towns, ski resorts or historical landmarks. Doing so will help ensure a steady demand for your rental throughout the year and also make it more attractive to renters. Additionally, if you’re considering investing in a vacation rental property in a foreign country, you should research any potential rental laws and regulations in that area to ensure compliance.
Size and Condition
When it comes to the actual purchase of the property, it’s important to consider the size and condition of the house or apartment. Vacation rentals typically require more upkeep than traditional long-term rentals, so it’s important to make sure the property is in good condition and can accommodate multiple renters. You should also take into account local amenities such as shopping centers, restaurants and entertainment options when selecting a vacation rental property as these will attract more renters.
Types of Tenants
Finally, understanding your target market is essential for successful vacation rental investments. Vacation rental properties typically cater to different types of guests, such as families, business travelers and couples. You should research the local area to determine what type of renters would be most interested in your property and tailor your marketing materials accordingly. Additionally, you should consider incorporating technology into your vacation rental strategy by offering online booking services or utilizing smart home technology to provide a more convenient experience for guests.
By taking the time to research and properly plan your vacation rental investment, you can maximize your potential for higher returns and enjoy a passive income stream for years to come. Investing in vacation rentals can be an excellent way to diversify your portfolio and achieve financial freedom. Contact My Commercial Capital today to get the financing you need for your next investment property.
by My Commercial Capital | Jun 2, 2023 | Blog
A leveraged buyout (LBO) is a type of corporate finance transaction in which an investor acquires a controlling interest in a company using borrowed funds. The loan is secured by the assets of the business, and it typically requires some form of equity investment from the buyer as well. LBOs are often used to take public companies private or to facilitate mergers and acquisitions between two companies. They can also be used for restructuring purposes such as reducing debt, improving profitability, and increasing shareholder value.
Valuation
The first step in a leveraged buyout is determining the target company’s value. An appraisal of the business can help you determine how much it could be worth and what type of financing you may need to acquire it. Once that’s established, you’ll need to find lenders who are willing to provide the necessary financing for the transaction. Lenders may include banks, private investors, and venture capitalists.
Negotiation
The next step is to negotiate the terms of the buyout with the current owners. This typically involves negotiating an acceptable purchase price and determining a repayment plan for the loan. The parties must also come to agreements on any other financial arrangements such as management contracts, stock ownership, and voting rights.
Sealing the Deal
The closing of the transaction is the final step in a leveraged buyout. This involves executing all of the necessary documents to complete the purchase and financing process. At this point, all parties must sign off on the agreement and funds must be transferred from lender to buyer. Additionally, any additional steps such as filing with the SEC must also be completed to finalize the deal.
Leveraged buyouts can be a valuable tool for companies looking to restructure, acquire another business, or go private. But it’s important to understand all of the associated risks and costs before entering into an agreement. Working with experienced professionals can help you make an informed decision about whether a leveraged buyout is the right option for your business. Contact My Commercial Capital today to learn about our financing solutions for LBOs.
by My Commercial Capital | May 26, 2023 | Blog
Many buildings can only house between one and four families or dwellers, and these are commonly referred to as one-to-fours. When a building can accommodate five or more residents, it is classified as an apartment building. These kinds of dwellings call for somewhat different underwriting and will generally require a stricter standard when it comes to qualifying for a purchase loan. One major difference is that lenders tend to take a hard look at any previous experience you’ve had managing multi-family dwellings, whether they were apartment buildings or one-to-fours. As you can see there are many variables that need to be taken into consideration while investing in Multi-Family Apartments, read on to learn more about how investing in this type of property works.
Investing in an multi-family apartments
There are some fairly standard qualifications that lenders will closely check with applicants requesting a loan for a multi-family dwelling. Here are some of the things that a lender will check on:
- Debt service coverage – this measures your current cash flow against your debt payment obligations. If you’ve had difficulty making payments on time, it will signal a lender that you may not be able to repay a loan to them.
- Loan-to-value ratio – this compares the amount of the loan to the total value of the property. Obviously, you don’t want the amount of the loan to be significantly more than the property value, so choose a property with high value that will compare favorably with the loan amount.
- Net operating income – this figure is arrived at by subtracting all expenses from the total amount of income the property brings in annually. The ideal net operating income will be a figure where the income is much greater than expenses, which bodes well for future stability.
Investing in an apartment building?
There can be some significant benefits to investing in multi-family apartments, but they also call for a significant initial outlay. If you’re in need of funding to secure an apartment building, we may be able to provide financial assistance. Contact us at My Commercial Capital, so we can discuss your eligibility for a loan that will help you to close the deal.
by My Commercial Capital | May 23, 2023 | Blog
Human resources managers work hard at finding the right applicant for an open position. Between crafting an ideal job posting reviewing resumes and performing initial interviews, finding the right candidate is a time-consuming process. More and more employers are focusing their time on understanding the soft skills that an applicant brings to the organization.
Treating the onboarding process as a marketing strategy, helps you develop the best hiring practices for your business.
One of the most effective ways to guarantee long-term employees is to make sure the employee fits into your company’s culture. Personality tests help you identify the soft skills of applicants. The results help you predict how the candidate’s character will fit in with the rest of the company. Here are some ideas on implementing personality assessments.
Test Current Employees
Marketing analysis asks you to identify the strengths and weaknesses of your company as a whole. When you apply this concept to the skills and talents of your staff, you can build more effective teams. Ask all employees to take the personality assessment and determine what soft skills are needed for each role in the company. With this information, you can re-organize teams based on the employees’ strengths and the manager’s management style.
Screen All Applicants
All applicants should complete the personality assessment test early in the screening process. Prioritize interviews based on applicants’ scores in defined skill categories. Develop interview questions based on the talents needed for the position. For example, if time management is a critical skill, ask applicants how they prioritize and schedule their workday.
Tailor the Job
Personality assessments should not be used to build a cookie-cutter staff. As you understand the personality, learning style, and motivation techniques of each applicant, you may find the candidate is a better fit in a different department. For instance, you may find a candidate that prefers variety in their workload. Perhaps cross-training them between the marketing and bookkeeping departments helps them to be a more successful employee.
Motivate Your Employees
Upon hiring the candidate, review personality assessment information to better understand the employee. Properly motivating employees and job satisfaction will soar. For example, understanding that an employee prefers verbal praise over written praise allows you to build a stronger relationship with them.
Implementing personality assessments and incorporating them into the hiring process can be a time-consuming endeavor. However, once you have a system in place, you will see the benefits of adding this tool to your hiring process.
by My Commercial Capital | May 19, 2023 | Blog
As most small business owners know, the federal government does not itself issue loans to applicants, but they do guarantee such loans up to about 85% of the value of the loan. This makes lenders much more willing to approve a loan request than they would be without government backing. In the case of an SBA 504 loan, loans are used to support the economic development of a given community. Thus, if you were to open up a new physical therapy clinic in your community, it would be seen as a good step in community development, and you might be eligible for a 504 loan. Continue reading to learn more about how SBA 504 loans work.
How an SBA 504 loan works
SBA 504 loans are long-term loans that offer fixed-rate financing for the purpose of acquiring or updating assets like real estate, or perhaps to purchase needed equipment for your business. The maximum amount of money you could borrow under this program is $5.5 million, and they have their own standard structure. Loans like this are usually funded to about 40% by the government, 50% by a lender, and 10% by the borrower. Keep in mind that the SBA will only fund this kind of loan if you can demonstrate that it will provide some long-term benefit to the community.
The duration of 504 loans can be for either 10, 20, or 25 years, and the interest rate will be tied to the five or ten-year rate of US Treasury notes. This typically amounts to about 3% of the amount being financed. In most cases, it will be necessary to come up with a 10% down payment, although there are certain cases where this amount will be higher. You can expect to pay several fees, including SBA and CDC fees, as well as the bank fees associated with the loan.
Looking for an SBA 504 loan?
Not everyone offers SBA 504 loans, so you’ll probably have a limited number of lenders you can work with to secure one of these loans. Contact us at My Commercial Capital if you’re in need of a 504 loan and want to work with a reliable and trustworthy lender.
by My Commercial Capital | May 12, 2023 | Blog
Each year, when the calendar reaches the end of December, some small business owners go into a mini-panic, recognizing that tax time is right around the corner. If you’re totally unprepared for it, tax time can be a nightmare, but if you’ve been observing some good practices throughout the year, your accountant may not have much trouble in filing your taxes and keeping your current. Here are some recommendations on how to prepare for that all-important tax time, so you don’t have to dread it every year.
Preparing for tax time
By taking the steps below, you should be well-prepared for tax time, which means you won’t have to dread it when it comes:
- Get organized – throughout the calendar year, you should be organizing your expenses, invoices, and business statements so they’re all accessible and ready to support your tax claims
- Bank reconciliations – make sure all your banking transactions have corresponding entries in your accounting system. This should be done each month, so it’s not a mammoth task at the end of the year.
- Quarterly payments – if you’ve made quarterly payments this past year, these will need to be compared to your end-of-year statement. When your books are fully reconciled, you’ll have no trouble preparing year-end statements accurately.
- Prepare W9 documents – if you’ve done business with contractors in this tax year, you’ll need to prepare the mandatory W9 statements, provided that your contractors earned more than $600 from your business.
- Start early – it’s never a good idea to wait until tax season to contact your accountant. By getting an early start, you can be sure that you’ve allowed enough time to handle any issues that come up, and you can be sure of booking time with your accountant.
Owe money on your taxes?
Many small business owners find that at the end of a tax year, they owe the government money, and this just isn’t budgeted for. To cover this shortfall, you may want to apply for some kind of business loan that will keep you current with the federal, state, or local tax agencies. Contact us at My Commercial Capital if you’re in need of financial assistance to cover your tax responsibilities.
by My Commercial Capital | May 5, 2023 | Blog
For entrepreneurs starting up new businesses or taking their companies to the next level, effective time management is essential. Time is a valuable asset, and too often it seems you don’t have enough of it when you measure it against everything that needs to be done. However, you can use your time more efficiently by adopting these tried and proven time management strategies.
Clarify Your Goals
As an entrepreneur, you may have numerous goals in mind for your business. One of the first things you should do is list these in order of priority. As you consider the goals, you will realize that some are essential while others are desirable but of obviously lesser importance.
Prioritize What Pays
At the top of your list of goals should be tasks that pay off in funds to run your business. If you are deciding between various project options, first take on the one that brings in the most income for the least amount of effort.
Plan Ahead
Once you have settled on your short-term and long-term goals, prepare a plan for their accomplishment. Break up larger projects into several intermediate milestones that will mark your way towards ultimate fulfillment.
Do the Most Urgent Tasks First
Many people obtain satisfaction from accomplishing numerous smaller items on their checklists, but for entrepreneurs this is inefficient time management. Instead, always tackle the biggest, most urgent task first. See this task through to completion, and then go on to the next urgent task. Remember that the quality of what you get done is far more important than the quantity.
Set Deadlines
Deadlines are an important factor in your time management strategy. Estimate how long it should take you to finish important tasks, and set realistic but challenging deadlines for their accomplishment. These time constraints will spur you to focus better and work harder.
For more tips on time management for entrepreneurs, get in touch with My Commercial Capital.
by My Commercial Capital | Apr 28, 2023 | Blog
All business owners would probably prefer to conduct all transactions on a cash-only basis, but that just isn’t realistic because it would tend to limit the volume of sales in your company. By allowing for trade financing with your customers, you make it possible for them to make purchases, or to make larger purchases, than they would have been able to make if all transactions were strictly cash. On the other hand, allowing trade credit to customers can open up a real can of worms, in terms of delayed or late customer payments. Here is how trade financing works, and how you can take advantage of it to help your business grow.
The nuts and bolts of trade financing
By allowing customers to purchase goods on credit, you can enjoy some or all of the following benefits:
- Higher sales volume – customers will almost always buy goods in greater volume when they don’t have to pay cash for them.
- Customer loyalty – the fact that you’re allowing customers to buy on credit will usually instill a certain amount of loyalty in them, so you can count on repeat business
- Competitive advantage – if your rivals cannot offer trade financing, you might get a leg up on them because you do make this option available to customers
- Early payment incentives – you can offer incentives to your customers to pay early, so you’re not obliged to wait the full 30 days before receiving payments. For instance, by offering some kind of discount for early payment, you may be able to get most payments well ahead of the 30-day terms allowed for in such purchases.
Is your business hampered by trade financing late payments?
Many business owners who offer trade financing find themselves with cash flow issues, simply because payments are delayed while expenses remain immediate. If your business is suffering for this reason, we may be able to provide financial assistance. Contact us at My Commercial Capital to find out if you’re eligible for a business loan that can help you stay afloat until revenues come in.
by My Commercial Capital | Apr 25, 2023 | Blog
Attorneys often find the majority of their clients through referrals. Even when this is true, they can still benefit from maintaining an online presence. Perhaps your firm could use guidance with online promotional efforts. Here are some marketing tips for lawyers with the potential to attract promising clients.
Include Calls to Action
It’s human nature to follow the path of least resistance. If someone’s on your website and contact information is difficult to find, that person is likely to go elsewhere to handle legal obligations. Contact forms make sending inquiries quick and easy. Incorporate them into every page of your site. If you send promotional emails, provide information on how to get in touch at the bottom of each one. Use language that encourages reaching out. Stress that there is no fee or obligation for consulting with a representative.
Create a Blog
When people face legal problems, they often search the internet for information about their situation before deciding on a lawyer. Have articles addressing relevant topics on your webpage, and those in need of assistance might wind up reading them. Individuals who find your words useful are more likely to solicit your services. Use search engine optimization practices to improve your Google ranking.
Get Involved with Charities
There’s no better press than earned media. Unlike traditional advertising, this type of exposure stems organically from your actions. By contributing to a worthwhile cause, interested outlets will naturally start singing your praises. When reporters come calling, request that links to your home page and social media accounts be a condition of your doing an interview. The charity you’re connecting with is likely to have a website. Ask if the association is willing to promote your services on account of your generosity. Besides the promotional aspect, it nourishes one’s soul to help those in need.
Optimize for Mobile Devices
Many access the web from their phones, not high-end desktop computers. Smartphones don’t display websites the same as their PC counterparts. Smaller screens sometimes make navigation difficult. Limited memory might mean fancy plug-ins and sophisticated add-ons do not work. Your site should look great no matter how it’s accessed. Create a slimmed-down version of your domain that users are automatically sent to when browsing from less powerful devices.
The law is a competitive field. Thus, attorneys should use every promotional advantage at their disposal. These and other marketing tips for lawyers can make an enormous difference in whether they stand above the crowd.
