Business Loans For Small Business

FedBizOpps.Gov – Option small business loans can be a funding solution acquired through sources which differ from the traditional method of obtaining a loan – “The Bank”. Small business owners opt for this kind of loan as they have limited resources of collateral and since their business is a higher risk. These factors truly complicate the process of obtaining a loan.

Business loans for small business is 1 option for funding is identical to personal loans. Because starting companies have tendency to fail in short span of time, lenders do not want to put their funds at higher risk. When the small company owner is refused by the banks for startup loans, you would generally expect other sources like close friends, households and organizations that are willing to take risks on new businesses.

It is possible to also seek out an investor that is willing to invest their cash on your new business. There are several of private investors nowadays that will overlook the risk of startups as they are interested in the possibility the new company has to succeed.

These business loans for small business resources cater to organizations which typically have been refused a small business loan by banks. Classic lenders like banks deny most businesses that call for startup capital or those with unstable economic history.

Factoring is one of the prevalent alternative resources of small business funding. When a business opts for factoring as a source of funding, it will be selling its receivables at a discount into a different company. At the same time, the company should consider purchase order financing to assist with filling orders. There are now programs available that will assist manufacturing companies to produce their product. Purchase order funders will not put cash in the hands of the new business owner, but will pay the suppliers directly and then when the finished product has been sold to the customer, the factoring company will collect the payment from the customer directly to satisfy the funds advanced to suppliers to produce the product. It would also be advisable to get a merchant account to accept credit cards.

Optional resources for startup funding also includes angel investors. An angel investor is an individual or group of people who supply funding for startups in return for a percentage in the profit of the business. Most investors organize as a group or network to combine capital. This really is an excellent way for them to decrease the loss they could face if they invest alone in a small business.

FedBizOpps.Gov – Wade Henderson
Wade Henderson is a recognized Expert in Business Finance with over 16 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Commercial Finance Website to put his experience to work for you.

Business Loans For Small Business
Business Loan Interest Rates

Be sure to View IMMFinancial.com for more information.

5 Reasons to Engage in Government Procurement

FedBizOpps.Gov – Most businesses are intimidated by government procurement opportunities. However, this should never be the case. Contrary to public perception, doing business with the government is actually easy and very useful. So long as one has an open mind, an aggressive business resolve and the determination to boost one’s business brand, exploring business opportunities with the federal government is a wise business move.

Federal government procurement is an opportunity that must be explored both by small business enterprises and by big corporations. Here are five (5) good reasons why:

    1. The government is a huge purchaser. Almost every need imaginable is contracted to businesses by the government. The United States government spends around $800 billion on goods and services every year. Any business should be interested to participate in such a huge expenditure.
    1. The government is a reliable payer. Unlike private companies, federal governments pay good money and on good time, too. They cannot file for bankruptcy out of the blue and leave business out in the cold.
    1. Most government procurement opportunities cost around $5,000.00 or less. When procurement comes to mind, business owners have the misconception that this means the purchase of million-dollar transportation units or sprawling facilities. The reality is that most federal procurements are small-scale, so there’s definitely a place for small businesses.
    1. The government is mandated to encourage growth for small businesses. There is a government entity called the U.S. Small Business Administration (SBA) mandated to ensure that small businesses are included in government purchases. As a result, almost every government agency nationwide has special programs developed for small businesses.
  1. A government contract could give a business a boost in credibility. Winning a government procurement contract will definitely elevate the image and credibility of a business in the marketplace and within the business community. Increased credibility translates to increased sales, so it’s always an advantage.

The government could be one of the greatest customers that any private company or individual contractor could ever entertain. In these times when the U.S. is still reeling from the economic downturn, companies must learn how to be innovative, aggressive and open-minded in doing business. They must no longer overlook the government as a potential customer.

FedBizOpps.Gov – There really is no downside in getting into government procurement opportunities. Sure, there may be a longer and stricter guideline to follow, but in the end, a business earns a reliable, good-paying customer. No business must ever pass up such an opportunity!

Nelson Nigel heads Nelson Nigel New York, a procurement company, together with Head Exposed, a multi-media company specializing in procurement management process. He has also been awarded with SBA’s Young Entrepreneur of the Year in 2008.

Applying For Government Business Loans For Your Start-Up

FedBizOpps.Gov – Those who plan to embark upon new business ventures and are in the process of pooling financial resources are urged to call upon the US government for assistance. A government business loan, or small business grant may be exactly the preliminary financial boost that you need to get your plan into action. The start up costs and overhead expenses alone can be financially exhausting to any new businessperson struggling to get up and running, and the government is willing to help.

No matter how promising your well thought out business plan may appear to be on paper, and how much hope and faith you may have in your potential success, it is not always as easy to convince lenders of your capabilities. A majority of banks and credit unions will require some form of collateral as a condition of financing, or they may charge additional interest in lieu of material security deposits. However, should you choose to look to the United States government for financial assistance, a government business loan will most likely be a much more attractive option when investigating investment options.

In many Government Business Loans cases, the government will award low interest cash loans directly to the qualified applicants. This method of financing is generally practiced among the small to moderate sized establishments who request small business loans. A simple procedure to create a simple business is ultimately the way it works, eliminating the middle man and enabling a direct payment plan between Uncle Sam and the new business owner or proprietor. In instances where the applicant is embarking on a much larger and expensive endeavor, the government may not be so willing to hand over the money, but, they are still willing to assist you in acquiring it.

For establishments and corporations that require exorbitant amounts of start up funding, the government is often willing to provide government secured bank loans. What this means is that even though the United States government may not be able, or willing to allow you the Government Business Loans that you need out of their funds, they will be willing to guarantee an outside lender, that if you become unable to repay your loan, they will back you. The government sometimes will back the loan of a promising business proposition up to one hundred percent, creating the opportunity for the borrow to achieve the very lowest interest fees possible, and not having to provide any form of collateral.

FedBizOpps.Gov – The government is willing to help American citizens much more than most people realize. Particularly those who show promise to succeed in the business community because they provide jobs to community members, support American economy, and increase tax revenue. So look to the US government when embarking on any new business ventures, before signing your life away to high interest lenders. A government business loan can make your start up costs, and stresses, a whole lot easier.

See Available Government Grants and find out how much money you qualify to receive today. Never pay it back.

FedBizOpps.Gov

Federal Business Opportunities Through the Government Procurement Database

FedBizOpps.Gov – One way to improve the income opportunities for your business is to participate in the government procurement process. This gives you the chance to do business with the federal government and earn huge amount of dollars. But, where do you start? Learn about the government procurement processes and educate yourself on how to get Federal Business  Opportunities. But, where do you find procurement opportunities for you? Check the federal procurement database.

Federal procurement database gives you all the information that you need to participate appropriately and effectively in the government procurement management. It makes it easy for you to find Federal Business  Opportunities that relate to the products or services that you offer. This is because it lists all the agencies that require them. It includes their contact persons, contact numbers, contract cost, other contract details and, more importantly, the application process. Through this online database, you are sure to find which government agencies are the best to approach for your business. You can request for a meeting without the need to leave your office. In addition, federal procurement database contains sufficient information that gives you the idea on what to expect from the government contracts. If you are not convinced yet, then see the government contracts database.

Government contracts database, on the other hand, has the capacity to encourage you to win government contracts because it shows the huge dollars involved in every government bid won. You will also view the names of the companies that were awarded of procurement contracts and you will be surprised to see the names of small businesses included in the list. Of course, you will not let this chance pass you by, will you not?

Government contracts database likewise educates you on how the system works in government contracts-the predicted turnaround time of the project, the minimum project cost (as well as the maximum), the restrictions, the expected outcome or result, and others. You will also get the chance to read all contracts and realize how huge the opportunities are and how much dollars you are depriving your company of earning if you will not join in the procurement process.

FedBizOpps.Gov – Government contracts database and federal procurement database make way for government transparency in present and future contracts. They also help businesses, whether small or not, in terms of awareness and encouragement. It is for this reason that entrepreneurs must make it a habit to view them.

Nelson Nigel heads Nelson Nigel New York, a procurement firm, together with Head Exposed, a multi-media company specializing in government procurement information. He has also been awarded with SBA’s Young Entrepreneur of the Year in 2008.

Why Should You Consider SBA Loans?

FedBizOpps.Gov – The Small Business Administration (SBA) was founded on July 30, 1953. The main purpose of this organization is to aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns. Since its inception, the SBA has delivered approximately 20 million loans, helping nearly 20 million small businesses obtain financing that they could not have received anywhere else.

Businesses who do not qualify for conventional financing, or need a higher loan-to-value than traditional lenders will offer, turn to the SBA for financing. The SBA guarantees these SBA loans which are originated by thousands of various banks, lenders, and other lending institutions.

The SBA offers loans that are secured by real estate and loans that are not secured by real estate. Two of the most popular loans they offer to small businesses are:

1. SBA 7(a) and SBA 7(a) Express Loans

2. SBA 504 (CDC) Loans

Let’s take a look at some of the benefits of each of these types of loans:

SBA 7(a) & Express Loans

This is the most common loan the SBA offers. It can be used to for loan with or without real estate as collateral including business, equipment, and real estate purchases. This particular loans has a maximum loan amount of $2 million and offers loan terms of up to 25 years on real estate transactions. Loans for working capital, business purchases, debt refinancing, etc… the loan terms are 10 years.

These loans are typically the easiest to qualify for and you can even use projections for start-up businesses or new companies who do not have a 3 year financial history. Recently the SBA has guaranteed these loans up to 90% which has spurred many lenders eagerness to originate these loans. This is typically a variable rate loan, but there are lenders out there who will offer this loan with fixed rates.

SBA loans : SBA 504 (CDC) Loans

This loan is typically used for companies looking for long-term financing and usually for the purchase of real estate or physical buildings. Loan amounts for this loan type are increased to a $5 million maximum, but there are discussions of raising this amount. If companies are willing to “Go Green” and make some changes to their building that save energy, etc… the SBA already offers larger loan amounts as a benefit in hopes that more companies will be eager to make these energy conservation changes.

The SBA 504 loan has 2 parts. The commercial lender will provide a 1st Trust Deed on the loan with a loan-to-value (LTV) that does not exceed 50%. The Certified Development Company (CDC), a non-profit corporation that facilitates economic development in a specific geographical area, will provide a 2nd Trust Deed not to exceed 40% of the purchase price.

The borrower is expected to have at least 10% for a down payment. This amount may increase depending on the property type, location, cash flow, borrower strength, etc…

The SBA loans also recently changed many terms with the approval of the American Recovery and Reinvestment Act of 2009. Some changes included a temporary waiver of SBA guarantee fees (this applies to all SBA loans), as well as allowing qualified borrowers to refinance their current SBA loans and roll over up to half of the total cost of the purchase or pending expansion. Certain restrictions and rules apply.

Eligibility Requirements

* Size of business – business must be independently owned and operated and must meet the employment and sales standards set by the SBA.

* Type of business -Loan proceeds cannot be used for non-profit work, gambling, speculation, lending or investment, illegal business activities, pyramid schemes, monopolies, or real property to be sold at a later date

* Purpose of loan – Funds may be used to establish a new business; operating, acquiring or expanding an existing business; purchase land or buildings; real estate construction for business; long term working capital; refinance existing debt with unreasonable terms; working capital, and more

Application Process

You will find that the application process is not much different than most loans. Many people have heard rumors that SBA loans take much longer and require much more paperwork than traditional commercial loans. While the SBA does a few more forms to complete, most of the extra forms only ask for signatures, checking of boxes, and basic information. If you are working with a lender who is a member of the preferred lender program (PLP) then the process is very quick because they underwrite the loan in house and have the ability to approve the loan at their facility. They still need to get a PLP number for the approval, but the SBA will give that the same day in most cases. If you are working with a lender who is not a PLP lender then you could see the delays that some people have complained about because those lenders must submit the entire loan package and wait for the SBA approval before they can approve the loan.

FedBizOpps.Gov – Basic loan information collected includes: business tax returns, business financial statements, personal tax returns, personal financial statement, business debt schedule, schedule of real estate owned, personal resumes, photos of the property, business history, credit authorization, AR and AP aging lists, source and use of funds breakdown, and possibly future income projections. Depending on the company, experience, etc… more documents may be required.

Posted by Chad Pitt
Sr. Vice President
Commercial Alternative
Phone (714) 594-3426
Fax (866) 724-8171
cpitt@commalt.com
http://www.commalt.com
http://commercialalternative.blogspot.com

Types of Government Contracts

FedBizOpps.Gov – Contracting for the Federal Government is big business for small businesses. Although the profit margin is tightly regulated through competitive bidding, government contracts can be more lucrative over time, because of the availability of consistent work when a contract is awarded.

There are many factors to consider when preparing to bid on a government contract, but we’re only going to touch on the types of contracts available, and how they might affect your business. The type of contract you choose should be centered on successful financial performance for both you and the government.

There are a wide variety of government contracts allowed by FAR (Federal Acquisitions Regulation) based on the given financial arrangement. The basic categories include fixed-price, cost-reimbursement, time-and-materials (T&M), and letter contracts.

When the situation calls for it, and no single type of contract fulfills the needs of both parties, types of government contracts can be combined. However the contract is chosen, one of the main considerations is distribution of risk. The closer you can come to an even distribution of risk, while saving the government money and making your profit, the more likely you are to be awarded the contract.

Types of Government Contracts :

Fixed Price Contracts
Fixed-price contracts are an attempt to separate cost from revenue as much as possible. Invoices for this type of contract tend to be event driven, meaning invoicing is usually sent upon delivery of products or services, not on a periodic basis. This doesn’t necessarily mean that the contract has to be fully completed. In might be on the achievement of a particular milestone in the contract.

When using this type of agreement, the contractor assumes most of the risk. The positive end of this is the extra control gained over materials and time management, which can build extra profit.

Cost Reimbursement Contracts
Unlike fixed-price, cost-reimbursement contracts do not separate cost and revenue. In fact, cost and revenue are directly linked. Invoicing is done on a periodic basis, for example, monthly based on costs incurred during the period. If costs are reduced, revenue follows. Lost revenue can be recovered by adding tasking through contract modification.

Time and Materials Contracts
T&M contracts differ from the others in that the government is purchasing the contractor’s direct labor instead of a specific outcome. The deliverables in this case are the direct hours. Invoicing for this type of contract can be done periodically. Because the government is buying hours of labor, it normally issues a contract ordering a number of hours of specific labor categories.

FedBizOpps.Gov – T&M is a low risk type of government contract. The risk is normally limited to the contractor’s ability to provide the needed skills at the negotiated rate. Another risk, often ignored is the possibility of unforeseen interruptions in the project. During this time, the contractor is unable to bill against the contract, resulting in a loss of revenue.

There are many types of government  contracts that have not been mentioned, such as letter contracts and mixed-contracts. Those mentioned above are the most common types, and should give you a good basis to begin in depth research on types of government contracts.

To find out more about government contracts come visit us at http://sabrect.com

FedBizOpps.Gov

FedBizOps.Gov – How To Win Federal Stimulus Contract Opportunities

FedBizOps.Gov – The nation is entering a recovery phase and it has been predicted that the next couple years are going to experience a great deal of government spending and stimulus contracts. This is good news for businesses across the nation. Major industries such as construction, security, the environment and engineering are some of the most popular government bids today. Companies and individuals can participate in the competition of federal bids in order to have more business successes.

You can have a chance at a great business opportunity as recovery dollars start to roll in during 2010 and 2011. There is an unprecedented amount of government bids and stimulus contracts at the federal, state and local level. This is the best time for small businesses to start selling their products and services to the government and to come up with effective and aggressive marketing campaigns to make it happen.FedBizOpps.Gov

Finding new stimulus contract opportunities has been made easier thanks to many online companies that offer directories with available contracts. Some online companies offer a chance to get notifications for government bids in order to have all the important information available as soon as it is ready.

Opportunities through FedBizOpps.Gov
In order to work with and market to the federal government, companies and individuals must be familiar with the different systems. For example, the FedBizOpps is a government system for products or services that are over $25,000. FedBizOps.Gov provide a number of business opportunities and companies must compete through government bids.

Securing Government Bids

It is important to know that the process of bidding, securing a bid and selling to government can be slow. To secure a spot, companies and individuals must represent themselves in the best light. All bid requirements must be completed. The government may ask for very specific requirements and failure to fulfill these requirements according to their standards can be costly. This means that the paperwork must be perfect and your government bid must be practical. To get the government contract, you must be professional with a good marketing strategy. Companies and individuals should give themselves enough time to prepare and complete all requirements.

Many people make small mistakes that cost them the opportunity to get a stimulus contract. It is important to price all your items the correct way, submit a clean and professional proposal, double check all documents, and staying consistent. In your government bids, it is important to be straightforward and use simple language. You want to make it as easy to understand as possible. You also never know what type of products or services a government agency will buy. For this reason, it is important to keep an open mind in order to broaden your chances.FedBiz.Gov

With new government spending and stimulus contracts coming our way, small businesses and even individuals can benefit from government bids to secure a contract. While the opportunities are profitable, it is important to follow all requirements and be able to sell your product professionally and effectively.

FedBizOps.Gov – Steif Marco, researcher at BidPrime.com, an online database and provider of federal, state, and local government bids and contract opportunities.FedBizOps.Gov

 

FedBizOpps.Gov – Going After Federal Government Contracts

FedBizOpps.GovFederal government contract jobs are certainly not restricted to big government companies. Small businesses may even go after U.S. government deals too. Certainly, there are numerous services which attempt to support small businesses in obtaining these kinds of deals. The government determined that a percentage of the nation’s purchasing shall be carried out using small business. Besides, one can find programs such as the Small Business Administration’s 8(a) or HUBZone certification programs that assist small enterprises get hold of federal deals.

Civil acquisitions in the American government more than$25,000 have to be put out for competitive bid with the FedBizOpps.Gov quote system (there can be a few exceptions). FBO.gov will be the government’s website detailing business opportunities to work in supplying the US gov. There are a variety of actions needed for enrolling to work as a supplier for the US government. This enrollment also enables a business to answer FedBizOpps entries, however, these are mainly procedural. Finding some of these FedBizOpps.Gov entries quickly is vital, simply because making a reply packet might require a substantial period of time.

The awarding of contracts is just not an easy matter. Making sure a company’s submission has everything necessary is a important and can be challenging as Request For Proposals (RFP) might be a several hundred pages or longer. Lacking a signature here or there may wipe out all of the effort given to a response proposal. And then, once conquering that challenge, the contract choice will not be as straightforward as a low quote winner. The government enjoys using an award practice referred to as Best Value.

FedBizOpps.Gov – This Best Value is actually utilized to decide federal government contracts through considering several factors as opposed to merely looking at cost. Valuations such as past performance is considered together with cost and are scored. They then are put into an assessment matrix to find out who is able to offer the federal government the very best value. Why use this process and not low bid? The federal government has been fooled by suppliers that quote cheaply to obtain the job and then perform poorly. Or the low quote winners try to get modifications to the contract for additional funds after the job was awarded.

You could question the current rules and turtle-like response times, is it worth selling to the federal government? The response is that contracting and purchasing employees are extremely devoted to their present suppliers. They will do anything possible to maintain them as suppliers. Because getting fresh suppliers may be a bothersome procedure for purchasing personnel. Conducting a solicitation can be a substantial undertaking in the job of purchasing. Numerous departments must okay the RFP after which there will probably be changes that may lead to further problems in the future.FedBizOpps.Gov

Also, dealing with fresh suppliers may be difficult. These people probably are not mindful of reporting requirements and are uncertain to exactly what details to include in reports. This can require baby-sitting a brand-new supplier as they become aware of the federal procedures. Utilizing a present supplier helps make the life of purchasing personnel and contracting officers less difficult. Want evidence? Observe that the majority of federal government RFP’s are going to have a clause that the contract can be extended (without competitive bid – FedBizOpps.Gov ) on annual basis after the initial contract period has ended.FedBizOps.Gov

The reason to go after federal government contracts? When a small business gets to be known as a good supplier from purchasing personnel, the purchasing and contracting personnel are going to do anything they can to maintain that company as a supplier. Obtaining that respected status with contracting officers can be a lengthy and difficult procedure. But it also goes to show how deep the relationship will be.

FedBiz.Gov – There is more small business help available. Get information about SBA small business loans to help a business’s capital needs. Also, one can get a supply chain management definition and learn something about logistics. Visit the links to learn more.FedBizOps.Gov