All About Business and Finance

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Finance means providing funds for business or it is a branch of economics which also refers to the concepts of time,money,risk and other assets. In a Business management, finance is a most important characteristic as business and finance are interrelated. One can achieve its goal by choosing the correct financial instruments. Financial planning is essential for both the individual and an organization to ensure a secure future.

Personal financial decisions might involve paying for education, insurance policies, and income tax management, investing and savings accounts. Personal finance is used to refrain burden and life become enjoyable, if getting it from a right source at minimum cost. Personal loan is also a part of individualized finance.

Financial planning is very important in business to achieve its objectives. In general, payment plans acquirable under an insurance premium finance arrangement consist of a down payment followed by equal, monthly installments. The amount of down payment required, as well as the number of installments to be paid by the insured, might vary depending on the underlying insurance policy terms and conditions, the nature of the insured’s business and the credit worthiness of the insured. The complete terms of the premium finance loan, including the payment schedule and interest rate charged, are reflected on the finance contract.

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We Purchase Your Business

In today’s dynamic business environment you’re either Growing or Going…out of business that is! If you’re part of the latter contingent and have prefabricated the decision to get out of a business but are unable to transition your business internally or sell it as an intact entity, full or partial liquidation of assets might be an appropriate exit strategy. Asset liquidation can wage swift cash and assist in diversifying equity. However, before you terminate your lease, sell a key piece of equipment, or disconnect your utilities, make sure you have a well-thought-out plan.

Getting out of business successfully requires careful planning from begin to finish. If you are looking at quality liquidation as a part of your exit strategy, think about incorporating the following suggestions into your plan to increase your chances for success.

1. Speak to your lawyer and accountant.

2. Establish the liquidation value of your assets; remember liquidation vs. retail value can differ substantially.

3. Identify the ideal venue and timetable to sell your assets.

4. Arrange the understanding at the most appropriate location with an expert.

5. Use a non-recourse bill of sale.

Understanding and incorporating these steps into your exit plan will not only help you recover as much money as possible, they might also help you achieve the freedom needed to oppose new endeavors.

It is important to note that the suggestions discussed above are intended to serve as a general overview to assist with the quality liquidation process. It is not a alternative for case-specific advice that only your lawyer and/or accountant can provide. Also, depending on the situation and necessity of business divesture, the cooperation of creditors might need to be considered. Cover your bases and speak to the experts before liquidating any assets that might be in question.

Initiate the process by preparing a current inventory of your business assets. Include photographs, serial numbers and a brief description of the condition of apiece item if possible. A thorough inventory will save considerable time and expense as you navigate the understanding process and can be invaluable if you are asked to wage documentation for creditors or the Internal Revenue Service.

Next, begin preparing your assets for sale. To elicit the ideal offers, take care that you do not diminish the appeal of your most marketable items by lumping them in with outdated or worn-out equipment, furniture or inventory. In most cases the most lucrative value of these lesser items might be in the form of a tax deduction, so why not donate them to an appropriate charity?

Finally, don’t overlook your intangible assets. For example, is your lease assignable? Are the business licenses, permits, patents or trademarks that you hold in demand? Can they be transferred? Is there a market for your customer list, contract rights or accounts? You might need to check with your attorney or accountant to determine what information and agreements are transferable but once cleared these types of assets can also wage a substantial return.

We Purchase Your Business (WBYB) provides cash offers for all assets in order to assist in the liquidation process. Please contact your WBYB representative for more information at www. WeBuyYourBusiness. com

(1) CONTROL- Many money managers will advise you to diversify your investments in paper assets such as mutual funds and cd’s. Yet as investors search for investments with lower risk, they increase the level of risk for themselves by investing mainly in mutual funds. The problem being you have no real control over the assets value since you can't renovate or improve its value like you would real estate. You can't control the risk of the quality like you could with real estate by using creative legal structuring, having proper insurance, or protecting yourself against economic cycles through positive cash flow. Due to the demand of control of the asset, mutual funds are some of the worst investments available. On the other hand, real estate can be controlled much easier by investing correctly in assets that are under market value with multiple exit strategies that help increase the return on the investment while decreasing the risk. An increase return on an investment does NOT have to mean an increase in risk.

(2) INFLATION- Paper assets do not have inflation protection. With all of the “funny money” the U.S. government has printed in the past couple of years our economy is in shambles. Just look at the price we pay for commodities and gasoline, inflation is already happening. People’s paper assets primarily stay the same while everything else goes up in value, so most investors are losing money and being left behind by not investing in assets that keep up with inflation. Real estate value generally goes up even though the demand for it stays the same thus keeping up with inflation, regardless of how much the dollar weakens. By investing in real estate you diversify into another quality class instead of the U.S. dollar which since 1971 is considered one of the worst investments of our time.

(3) DEPRECIATION- Paper quality income does not come with tax benefits like real estate even though taxes are one of our biggest expenses in life. Learning ways to reduce taxes is extremely important, especially in our current economic time. Reducing the taxes you pay to financial predators such as the U.S. government will help you get ahead financially. It’s their job to find additional ways to tax you and it’s your job to find ways to reduce or even eliminate those taxes. When investing in real estate you get depreciation benefits which topically equal 60%-80% of your purchasing price divided by 27.5 years. For example, if you buy a property for 0,000, then ,000 (depending on the land value) is written off over 27.5 years, which means you get a ,909 tax deduction on any income that property produces. So if you make ,000 per year in rental income you are only paying taxes on approximately ,000 instead of the original ,000, which is massive when compared to other investments.

(4) LEVERAGE- Rarely can you use leverage with paper assets to borrow money against them and increase your return on investment. When using leverage, assuming it done correctly, you can increase your returns. With paper assets using leverage is extremely risky since there is no control. That’s why financial planner and advisors will tell you leverage is risky. However, it’s only risky on assets you have no control over or when you over leverage without looking at the cash flow closely after debt service. If you buy the same 0,000 property (in point 3 above) but get an ,000 loan at 5.5% for 30 years and place 20% down you now have a monthly payment of 4 per month leaving you with 3 per month in positive passive cash flow (,000 / 12 months = 7 – 4 payment = 3).  That means on your ,000 you are making ,556 per year or a 12.7% return on investment instead of an 8% return on investment on your 0,000.  Using leverage correctly is a great way to increase returns which is extremely necessary in an inflationary economy.

(5) CASH FLOW- Most paper assets do not produce positive monthly cash flow.  Cash flow is everything.  When you invest in most paper assets you typically invest for capital gains, not cash flow.  Capital acquire investment income has higher taxes and do not wage you income when the economy is doing poorly.  You can easily lose your investment or a massive percentage of it, like we saw when most American’s retirement and 401k accounts lost 40%.  If you invest in cash flow, the value of the property does not matter.  You are seeing your return on investment on the cash flow and no matter what is happening in the economy you are not in danger of losing the quality or your initial investment.  You will typically see your cash flow come rain or shine even with fluctuations in the general overall economy. However, you are much less susceptible to economic fluctuations if you are prepared. By building your cash flow stream over multiple quality classes you will be in a much superior financial position where your monthly expenses will be covered by the cash flow. As your expenses rise with inflation so does your cash flow due to rental inflation as well.

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