Real Estate Web

Archive for January 7th, 2012

Business Financing For Insurance Companies

There are many ways in which insurance professionals and insurance companies both new and existing can acquire business financing without using personal credit.

One method is called commissionbased lending. Commissionbased lending provides business loans to insurance professionals based on the value of their renewal commissions. Business loans of this nature can be used for a variety of things like office expansion acquisitions debt consolidation and succession planning.

Another method is to leverage the value of future commissions as collateral for a loan. This way there is no need to sell your book of business or put up personal items as collateral against the loan. Some lenders will also allow you to consolidate personal debt previously acquired for the business.

An agency acquisition allows an agent to acquire a sellers block of business as collateral for a loan. By going this route the new buyer/owner can minimize the use of personal funds and maximize any working capital.

Regardless of which method of funding agency owners need to put together a strong perpetuation plan. This plan should allow a seller to achieve goals of reaping a solid return on the years they invested in the business. The plan should also demonstrate how the new agent plans to achieve his or her business goals and enable an already profitable agency to grow under new ownership. The startup price of the agency should be inline with the industry and should be reasonable for the buyer and seller if it is an acquisition. The plan should outline a few very important details: demonstrate how the agency will be financed; demonstrate how taxes will be minimized for the seller; details of funding of the buysell agreement; and how control will be passed on to the successors.

For an insurance agency or agent to guarantee that their personal assets will not be considered when seeking business financing in the form of a commercial loan they must be incorporated with the state and registered with Dun Bradstreet for a DUNS number.

About the writer:  Robbi Gunter is a staff writer for Strong Business Credit a free educational web resource for small business owners needing business loans and business credit cards.

Business Debt Management-let Your Business Flourish

Business is all about ups and downs and many a times there is blockage in the flow of income. There can be many reasons because of which your business is not making predicted profit. It happens so in the case that the business is in the initial phase of expansion or the customers are not paying bills at proper time. Whatever may be the exact cause the assets dont prove to be enough for paying off the bills and the business debts start accumulating. In the worst case being the head of a business firm you start spending hours in exploring the way outs to pay off the debts. The precious time that you should spend with your customer you start managing the things and the situation becomes quite uncomfortable.
When you feel yourself trapped in the vicious circle of debts its better to go for business debt management without thinking anymore. When a customer adopts for business debt management the first stage is to approach a Credit Counseling Agency CCA. The debt management plan is a sort of mutual agreement between the borrower and a CCA. Business debt management program is quite flexible in its terms and conditions. From the point of view of the customers this plan is quite lucrative as there is no such contract involved. A customer has got liberty to modulate the repayments according to fluctuation in his/her income.
The most advantageous point with a business debt management plan is that if the client feels comfortable in repaying all or some portion of debt he can exactly do so. For this the debt management companies will negotiate over full or partial settlement with your creditors. What a customer is exactly supposed to do before entering into a debt management plan is to manage your income and expenditure. Afterwards a customer is just supposed to pay a fixed monthly installment to the debt management company.
In a nutshell business debt management is appropriate for the business firms which are not running smoothly. In turn the debt management companies are paid a fee to provide the consultancy. The choice of the agency has a long term effect so just be careful in making your opinion. Just opt for business debt management and take your business to a new high!

About the writer:  Alec Reece has a way with dealing with loans for a long time. Writing articles is just a way to extend this to consumers and provide empowerment through information. All you have to do is read. To know more visithttp://www.ezdebtmanagement.co.uk