The use of credit card financing often refers to business cash advances in which working capital is obtained by business owners based upon future credit card processing activity. Alternatively the use of personal credit cards to obtain a cash advance is also referred to as a credit card loan. With business finance funding shortages, small business owners are increasingly using both approaches to obtain operating cash for their business. The two financing approaches are not equal in terms of how they are viewed by commercial financing experts although the strategies might be called by the same name occasionally.

Many commercial lenders have suddenly reduced or cancelled business lines of credit and other forms of working capital loans. In response, many business owners have been forced to rely on cash obtained via their personal credit cards to sustain their businesses. We strongly urge all commercial borrowers to review our predatory lending discussion in The Working Capital Journal in order to prepare for some of the most undesirable actions being taken by many lenders which have a substantial credit card loan exposure.

There are two particular observations we want to emphasize about small business owners using personal credit cards to obtain operating cash: (1) This really is a business financing method of last resort that should be avoided whenever possible. Before assuming that this is the only source of capital available, commercial borrowers should consult with a working capital finance expert. The possibility of business cash advances and working capital loans should be thoroughly explored. (2) This questionable method of obtaining commercial finance funding will prove to be increasingly more difficult because credit card issuers are already cutting back on their unsecured lending programs.

Like reductions in their lending programs for business lines of credit, most banks are now making similar cutbacks in credit card lending. They are reducing or cancelling credit lines even when borrowers have a superb payment record. The rationale for banks reducing both credit card lines and commercial lines of credit is similar. With unsecured commercial loans or personal loans, banks fear that massive defaults are almost inevitable due to a very shaky economy and business lending climate. Unlike residential real estate financing in which real property is pledged as collateral, banks know that they have no collateral to fall back on with working capital loans and credit card loans because they are unsecured. Many small business owners use home equity lines of credit to obtain operating cash, and these funding sources are also diminishing in most areas of the United States. Although these lending programs are backed by collateral, the value of homes in many areas has decreased to the point that many outstanding loans exceed the current property value.

One of the most disturbing and frustrating occurrences in the current difficult commercial financing environment is the lack of clear information for many business owners about which funding options are realistic and possible. This factor alone has probably led thousands of commercial borrowers to obtain operating cash from their personal credit cards when there were better alternatives.

Due to the growing tendency of several major credit card issuers to exhibit predatory lending practices, the use of personal credit card loans should be avoided. At a minimum, each business owner should contact a business finance funding expert to determine if a business cash advance program or a working capital loan program can be used to obtain needed cash.

Mattress cleaning companies have been available for approximately 12 years in Europe, and are just now starting up in the United States. No matter where you live, this business has virtually no competition, and is useful to all people. If you think it is very expensive to start, you’re wrong.

You can find mattress cleaning service franchises or companies wanting to set up dealers. You will purchase a franchise or license, and start your business. Either way the companies include the equipment, training, support and marketing tools to help get your mattress cleaning service up and running.

Each company offers its own system at its own cost, but they normally start about $3,000 per system and you will probably want to purchase more then one system. The up side of this mattress cleaning business is that you will see a profit fairly quickly. However, you should do some things before purchasing your franchise or license.

The first thing is to check with your local and state governments to find out the regulations and requirements you will need. You should also check with your insurance agent to inquire about insurance requirements for your mattress cleaning business. Make sure you have these before you open for business.

You may also want to visit the Small business web site or go to the local office and get a copy of helpful forms and a sample business plan to use to help you start your business. These forms will help you answer questions, and budget your investment. It will also help you to discover any items you may have not thought of or forgotten about prior to opening.

If you need help financing your mattress cleaning services, you will need this document as well as a proposal. You will take these to private investors, banks, and the Small Business Administration. If you are turned down at first, reevaluate your proposal and business plan, make any changes and try again. Never get discouraged.

Once you have financing and have purchased your mattress cleaning business franchise or license, use the tools the company has given you. Advertise, focusing on the ability to clean allergens out of fabric furniture and mattresses. Everyone has furniture and beds and everyone wants those things clean. This works to your advantage to get clients. Don’t forget to send a sales letter to local hospitals and hotels announcing the opening of your incredible mattress cleaning business.

Run an ad in your local paper. You can even run ads in surrounding areas, depending on how far you are willing to travel. If your area has coupon mailers, consider putting a coupon for the mattress cleaning business in it. It will get your business name out there. It will be one of the best ways to advertise.

Once you have a few clients, they will start telling friends and family and your client base will grow. Your clients are your best advertisements. You may also want to put fliers in mattress and furniture stores. Always ask first, but they may refer people to your mattress cleaning business.

Subscribe to newsletters and periodicals to keep up on the industry trends. This way you will stay ahead of any competition. Also, check out books and web sites. Always know what is going on in your industry.

If you already have a cleaning service, you may want to consider adding this to the services you already provide. Or you may start with this service and gradually grow into other cleaning services. Your options are endless and the industry is wide open. Your biggest chance of failure is if you don’t try.

Author: Randy Wilson
Article Source: EzineArticles.com
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There are many critical differences between residential real estate investing and commercial real estate investing. There are over 25 business financing differences, and they will not all be addressed in this business finance article.

With the increasingly chaotic investment climate for residential financing in the United States, more residential real estate investors are exploring commercial real estate and business finance opportunities. It is important for prospective commercial property owners, business owners and business investors to educate themselves about options for the business loan and commercial mortgage environment they will be facing.

Personal Guarantors for Business Opportunity Financing and Commercial Loan -

Even though a business is held under corporate ownership, a personal guarantee from the principal owners is routinely required for a commercial mortgage or business loan. This also means that credit scores of the individual business owners will be used as one of the factors to qualify for a commercial loan. Typically a personal guarantee for a commercial loan is required for owners with over a 20% ownership interest.

Down Payment Requirements for Business Financing -

To purchase a business will typically require a business loan down payment varying from 10% to 25% (more in some cases). The type of business, credit scores and business experience will have an impact on the amount required for a down payment.

Stated Income Business Finance Possibilities -

Stated income business loan options will eliminate the need for a borrower to provide personal tax returns. However the stated income business finance approach will not eliminate the need to document income for the business being purchased or refinanced. Unlike residential financing, no documentation (no doc) loans are not available for a commercial mortgage.

Commercial Mortgage and Business Opportunity Financing: Size Limitations -

It is very difficult to obtain a commercial mortgage less than $100,000. A normal maximum for a stated income business loan and SBA loan situations is $2 million. A number of other business finance programs are limited to $5 million.

Appraisals for a Commercial Mortgage or Business Opportunity Financing -

Commercial real estate appraisals are much more expensive and complex than residential appraisals and typically take several weeks to complete. Commercial mortgage and business loan value is based primarily on income rather than comparison with other properties that is so common with residential financing.

Business Financing Interest Rates -

Interest rates for a business loan are generally higher than residential financing and rates up to 13% and even higher are possible. Investors will find both variable and fixed interest rates available from many commercial mortgage sources. Business opportunity financing typically has interest rates 1-3% higher than a comparable commercial real estate loan situation.

Other Important Business Finance Differences -

As noted previously, there are too many differences between residential financing and business finance situations to describe adequately in one article. Some of the critical issues discussed in separate reports are how to avoid common business loan problems, SBA loan financing, balloon and recall provisions for a commercial mortgage, business opportunity financing and special purpose commercial properties.

There are many key differences between financing for commercial property investing and residential real estate investments. Because more residential property investors are exploring commercial real estate and business finance opportunities, this business opportunity financing and business loan report is designed to help educate new commercial investors about key commercial mortgage and commercial loan issues.

Rather than specifically focusing on issues that differentiate business financing from residential financing (which we have thoroughly analyzed in separate reports), this report will offer a few key observations regarding business finance elements that are often overlooked in new business investment considerations. These factors include credit card processing, business cash advance options and working capital management.

Coordinating Credit Card Processing and Business Cash Advance Programs -

Many business investments will involve the use of credit card processing decisions. These business activities should be analyzed simultaneously with business cash advance programs for several reasons. If done properly, a business should reduce their costs and improve their cash flow.

Reducing Credit Card Processing Costs in Business Investing -

One of the biggest benefits of coordinating credit card processing with a business cash advance program is the real potential that overall costs can be reduced. Such an advantage is likely to be available in conjunction with the most progressive programs by linking a low cost credit card processor with the best merchant cash advance program. Many of the best credit card processors will not be available for businesses other than through a high-quality credit card financing arrangement.

Improve Cash Flow for Business Investments -

Credit card factoring strategies can produce a business cash advance up to several hundred thousand dollars. For most businesses, this level of financing is not routinely available via other business finance programs. The decision to choose credit card financing to secure a merchant cash advance is an increasingly practical business financing response to business lenders eliminating line of credit programs.

It is important to realize that there are certain key limitations and potential difficulties with business cash advance strategies. New business owners will occasionally eliminate using a merchant cash advance without adequately considering the overall benefits because they are confused by this business finance approach. Although credit card factoring is frequently considered to be a short-term commercial financing strategy, there are also effective longer-term variations which should not be overlooked.

Working Capital Management Strategies -

Obtaining a working capital loan is usually more effective when arranged in conjunction with buying a business. However many lenders do not adequately address this issue in the early business finance stages. Before completing a purchase offer to buy a business, all business loan issues should be discussed in order to fully understand overall commercial financing choices and limitations.

After acquiring a business, it is more likely that business or personal collateral will be a necessity in getting working capital financing. One major exception to this common collateral requirement will be the use of a business cash advance and credit card factoring as mentioned above.

Additional Key Investment Business Finance and Real Estate Mortgage Issues -

As previously noted, commercial mortgage and commercial loan requirements are very different from residential financing requirements in the United States. Additional business finance reports include a discussion of many other significant financing factors. Other reports address important subjects such as business opportunity loans, business appraisals, stated income business loan options and SBA loan programs.

Most of the additional articles will provide further detail about topics discussed in this report as well as offering business financing solutions for numerous other complex business loan situations. For example, some SBA loan processes can include working capital as part of the total initial financing. For those interested in learning more about both potential advantages and problems associated with coordinating credit card processing and business cash advance services, there are several additional resources (such as The Working Capital Journal) which will facilitate a better understanding of these complex business finance issues.

The net result from business finance changes has been a reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding.

A significant reduction in business lending activity overall is perhaps the most dramatic change. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Even though they have continued consumer lending, many banks have stopped commercial finance lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.

It remains to be seen how many changes will be permanent or temporary. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing business finance environment. Business owners must be prepared to operate within a more complicated climate for commercial mortgage loans and small business loans regardless of how long the changes might be kept in place.

What should borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial loans. A commercial financing expert operating throughout the United States should be helpful in improving upon this situation.

In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by business owners before seeking new commercial loans. First, commercial lenders are increasingly demanding more collateral for virtually all business finance funding. Second, most lenders have cancelled or are about to eliminate unsecured lines of credit (usually called working capital loans) for many businesses.

Considering a business cash advance program based on future credit card processing transactions is likely to be an effective commercial financing strategy for overcoming the combined obstacles of more collateral, reduced unsecured credit lines and fewer lenders. This is proving to be one of the few sources of business funding that has not been adversely impacted by recent events. It will be productive to discuss the potential with a business finance expert who can provide advice about small business financing solutions including business cash advances and other financial options.

It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions. This means that another key change issue for working capital financing and commercial mortgages is the likelihood that more changes will be forthcoming in the near future.

To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for small business loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business. By having a candid conversation with a commercial loan expert, business owners should be more capable of implementing an appropriate strategy for the vast changes which have recently occurred or are about to become effective for most business financing and working capital finance funding.

Obama’s government offers a variety of grants starting from individual grants to fulfill personal necessities, business grants to establish new business, education grants to fund education. Grants may be termed as a feasible option for supporting an already existing business to establishing a new business. Though it is true that the government of the United States doesn’t provide direct grants to support small business, yet there are a couple of non-profit organizations, state development agencies as well as local government that provide the needed grants to enhance and expand small businesses.

You can avail government small business grant if you are a resident or a citizen of the United States. And the good thing is that you don’t need collateral, credit checks, co-signers or security. Moreover, for availing these grants you need to be more than eighteen years old. Once you qualify for these grants, there’s no looking back. Just apply for these grants and wait for their approval. You can avail these grants to take your business to a further level. So, why worry, avail the privileges offered by Obama’s government and see the result for yourself!

Author: J. J. Brown
Article Source: EzineArticles.com
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Why don’t you have to repay debt relief grants? Because it’s not required!

Remarkably, the United States government actually does give you free money to pay your bills, no matter how extreme your debt issues may be. Many individuals qualify to receive five, ten, twenty five, fifty, or even up to one hundred thousand dollars in free government money to pay their bills and get out debt. And because the US government is required by law to distribute this generous funding to taxpayers, not a single recipient will ever be required to pay back a single cent of it.

Imagine how much your credit score will increase by using personal debt relief grants!

As if being handed as much free money as you need without having to pay it back wasn’t enough, there is a great bonus to obtaining free debt relief grants. That being that once you have applied, become approved, received and put to use your free debt grant money, since you have completely paid off all creditors and past due account balances in one clean swipe, your credit rating will go through the roof. You can actually improve your credit with free government money.

All American taxpayers may apply for debt grants, and millions will be found eligible to receive them. Could you be one of the fortunate ones? Find out today.

Author: Sarah Beckham
Article Source: EzineArticles.com
Provided by: Digital Camera Times

Jani-King

Jani-King (Commercial cleaning) began in 1969 and has been Franchising since 1974. While working the night shift in a Hotel Jim Cavanaugh saw the continued need for janitorial services.

Etrepreneure.com reports from 2006-2007 Jani-King added 496 new U.S. franchises, 29 Canadian, 31 Foreign, and 3 company owned. With commercial real-estate expecting to grow in 2008 it is predicted that the need for janitorial services will also grow.

Costs:

Startup costs $11k-34k+

Franchise fee: $8.6k-$16.3k+

Ongoing royalty fee: 10%

Term: 20 years, renewable

Operations:

Can be run from home

No absentee ownership

Bonus Building Care

Ok your going to think this is too personal but it’s the reality of business. Jim Cavanaugh (from Jani-King) divorced and his ex-wife Arleen Cavanaugh started Bonus Building Care and you guessed it, it is a janitorial service. This is a prime example of how fruitful the commercial janitorial business is. BBC was started in 1996 and increased its U.S. franchises from 1415 in 2006 to 1774 in 2007 3 of which are owned by the company.

Cost:

Startup: $8k – $13k+

Franchise fee: $6.5k

Ongoing royalty fee: 10%

Term: 20 years, renewable

Renew fee: $2k

Operations:

Can be run from home

Employees needed to run: 1-5

No absentee ownership

Jan-Pro Franchising Int’l. Inc.

Specializing in commercial cleaning began in 1991 and has been franchising since 1992. Founded by Jacques Lapointe Jan-Pro increased its U.S. franchise base from 5066 in 2006 to 6409 in 2007. Canadian franchises when from 305 in 2006 to 609 in 2007. 14 foreign franchises were started in 2007.

Costs:

Startup: $3.3k-$49.9k

Franchise fee: $2.8k-$44k

Ongoing royalty fee: 10%

Term: 10 years, renewable

Qualifications:

New worth: $1k-14k+

Cash liquidity: $1k

Business exp.: management skills

Operations:

Can be run from home

Number of employees: 1

No absentee ownership

Servpro

Servpro (residential and commercial cleaning) began in 1967 and started franchising in 1969. Ted Isaacson began providing homes and business with cleaning and restoration services which includes but not limited to disaster protection, air ducts and HVAC systems. Servpro grew its nationwide franchise base from 1310 in 2006 to 1368 in 2007.

Costs:

Investment: $97k – $154k

Franchise fee: $38k

Ongoing royalty fee: 3-10%

Term: 5 years, renewable

Renewal fee: $250

Qualifications:

Net worth: $100k

Cash Liquidity: $60k

Business exp: General, Marketing skills

Operations:

Can be run from home

Employees needed: 5-10

No absentee ownership allowed

Chem-Dry (carpet, drapery & upholstery cleaning)

Robert Harris founded Chem-Dry in 1977 and started franchising in 1978 using a cleaning solution he created. Chem-Dry has worldwide franchise opportunities. From 2006 – 2007 the company grew its U.S. base from 2547-2679.

Costs:

Startup: $25k-$214k

Franchise fee: $13k-$35k

Ongoing royalty fee: #350/mo.

Renewal fee: $750

Qualifications:

Net worth: $75k

Cash liquidity $4k

Operations:

Can be run from home

Absentee ownership is allowed

ServiceMaster Clean (began 1947, franchising since 1952)

It is said that after a chemical accident left Marion Wade partially blind in 1945 he came up with the idea for a commercial and residential heavy cleaning and disaster restoration company. ServiceMaster Clean is part of a unit of franchises which includes Merry Maids and Terminix. ServicesMaster saw a rise in us franchises from 2978 in 2006 to 3041 in 2007. Canadian franchises grew from 166 to 172 respectively. This company has been around a long time and it is no wonder it has experienced the consistent growth.

Costs:

Investment: $21k – $111k

Franchise fee: $17k-45k

Ongoing royalty fee: 4-10%

Term: 5 years, renewable

Qualifications:

Net worth: $50k-75k

Cash liquidity: $15k-25k

Experience: General business

Operations:

Can be run from home

Number of employees needed: 3

Absentee ownership is not allowed

System4 (commercial cleaning)

Began in 2003 and started franchising right away, based in Brecksville Ohio System4 is a nationwide franchiser with 467 franchisees in 2007 (up from 283 in 2006).

Costs:

Investment $6k – $38k

Franchise fee: $4.4k – $32k

Ongoing royalty: 5%

Term: 20 years, renewable

Qualifications:

Net worth: $10k

Operations:

Can be run from home

Employees needed: 3

Absentee ownership is allowed

Building Stars Inc.

Building Stars Inc. began in 1994 and started franchising in 2000. Based out of St. Louis Missouri BB Inc saw an increase in franchisees of 217 to 225 from 2006 – 2007.

Costs:

Investment: $2.2k

Franchise fee: $1.2k

Ongoing royalty fee: 10%

Term: 5 years, renewable

Qualifications:

Cash liquidity: $1k

Operations:

Can be run from home

Number of employees needed: 5

Absentee ownership is not allowed

There are plenty of businesses that already turn great profits. In order for you to get a slice of the pie you have to be in the kitchen. Home based cleaning franchises will show strong growth in 2008. As always, pick your business carefully and plan your moves for growth and longevity.

For the additional home based franchise opportunities visit ServicesAreUs.com