The law on bankruptcy intends to help debtors settle their obligations to their creditors by either managing or liquidating the business. When a firm files for bankruptcy, the court assists them in paying their debts. Hence, during a bankruptcy procedure, all the financial activities of the debtor are under scrutiny by the court. The debts can be paid either by straight liquidation of the firm's assets or a plan for reorganization to enable the firm to keep on operating while the debts are being paid.
The hourly rate for bankruptcy lawyers varies from 0 to 0 an hour. Some lawyers will ask for an advance payment depending on their estimate of how long it will take them to study the case. Others will settle for staggered payments. An attorney could charge from ,000 to ,000 for liquidation bankruptcy but could go as high as ,500 to ,000 for more complicated business liquidations.
An attorney may charge for a reorganization bankruptcy from ,000 to ,000 but this will depend in which state the lawyer practices. In some states, the charge is higher while in others the charge is lower. The charge will also depend on the size of the business, for instance the lawyer may need a more detailed study before coming up with a definite recommendation. For a small business, this could be from ,000 to ,000, for a medium-sized company ,000 to 0,000, and 0,000 to 0,000 for a large business.
The bankruptcy court filing fee is 9 for bankruptcy liquidation and ,039 for bankruptcy reorganization, which will vary from state to state. Depending on the circumstances, the fees can be paid in installments or can be waived altogether for indigent plaintiffs.
Bankruptcy cases are filed in federal courts and not in any state court. The proceedings in court usually take four to six months, but this is only a rough estimate. Cases that are more complicated may take longer and simpler cases may conclude earlier.
Bankruptcy proceedings are an extremely complicated process because all the assets and monies of the debtors have to be closely scrutinized and analyzed. Creditors like bankruptcy proceedings because the negotiations are open and official. That is why a bankruptcy law helps both the debtors and the creditors in settling their obligations. Creditors are willing to compromise on a debt as long as there is hope that the debt would be repaid.
Whether the initial consultation is free or not depends on the lawyer. Some lawyers are fond of giving free advice and others are not. The lawyer will analyze any documents and advise clients on the available options.
It is always important to know the experience and training of a bankruptcy attorney before hiring one. Banks and CPAs may be good sources of information on suitable bankruptcy lawyers, and you can even ask other attorneys for referrals. The American Board of Certification maintains a list of lawyers who specialize in your area. This list of attorneys contains lawyers who specialize in business bankruptcy law, consumer bankruptcy and creditors' rights law, all sorted according to location for easy reference.
Your attorney should be able to provide you with a written fee agreement so that you know what you are paying for. This fee agreement should be determined during the negotiation process and should be included in any general agreements with the lawyer. Lawyers should explain the meaning of the various fees clearly, before providing you with their services.
The Bankruptcy Attorney will definitely help those people if they have filed for bankruptcy so that, the common people do not get over burdened with the debt which will be impossible for them to pay back.Click here for Bankruptcy Attorney.
If you are looking for the best person to advise you on business liquidity issues and insolvency, the best person to do so is a business bankruptcy attorney.Visit for more details.
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Saturday, September 22, 2012
Friday, May 11, 2012
Business Loans Based On Business Performance And Not Personal Credit
As the so-called recession / not recession drags on, the one constant is that small businesses continue to struggle in obtaining capital for growth or development. And, without growth and development, these businesses will remain stagnate or eventually be forced to shut down.
Part of the issue with these businesses in obtaining a business loan is not so much based on a poor performing business but more related to the poor credit of the business owner. And, as this slow economy remains sluggish, personal credit score will continue to decline.
Banks and most private lenders will pull credit reports first. If your personal credit score is low (below 700 FICO) regardless if you have business credit or not they will trash your application and move on to a deal they know they can get funded.
It is just the nature of this beast.
The bad side is that those businesses that are still generating revenue and still have huge potential are also being passed over. The question is should they be?
There is a growing trend in small business lending where lenders are starting to look past credit scores and focus more on the performance of the business on its ability to generate revenue - as it is this revenue that will be used to repay the business loan.
And, that is what your lender wants you to repay both principal and interest.
Bank Statement Business Loans:
These new crops of business loans are termed Bank Statement Business Loans.
Very similar to a business or merchant cash advance, these loans look at your business's past results. But, instead of focusing on your merchant statements (your past credit card receipts) or requiring you to switch merchant processors, they look at your average bank statement deposits and balances.
And, if you continually have cash flowing into your bank account or retain sufficient balances, your business can factor that performance into a cash advance to be used for working capital, operating capital or any business need.
Example: Let's say that your business has, over the last 6 months, an average balance in your business bank accounts of ,000. Now this is an average. Sure money will flow out to cover expenses or purchase more inventory or supplies. But, your business is also generating new revenue that replaces that outflow; resulting in this average balance.
You need working capital and turn to one of these bank statement financing companies who will fund 3 times your average daily balance or ,000 in working capital not based on your credit but based on your business's ability to constantly generate revenue.
Most of these financing companies will approve loan amounts between 2 to 5 times of your average daily balance.
Plus, the more cash you deposit or hold in your bank account the higher the loan amount.
What could be better? A business loan based on the merits of your business and not simply on your personal credit score.
Some benefits of these bank statement business loans are:
Low FICO scores or that your bad credit does not matter (FICO scores below 500 will be accepted).
The loans or advance is based on your business performance.
None of the burdens or limitations of merchant cash advances like being based on credit card receipts only or switching merchant processors thus, no merchant processing required.
No collateral - the loan is unsecured.
Almost all business types are accepted.
So, if your credit is holding your business back from growing to that next level, then put on your entrepreneur hat and seek out a solution to the problem.
Far too many good and great businesses are being turn down for a business loan based on outdated bank underwriting policies. It is good to see that other entrepreneurs in the financial markets are realizing that these are missed opportunities and as such are doing something about it.
Thus, if you are in the market for a loan only to find you are getting turned down due to bad credit, then you to should do something about it by looking into these bank statement business loans. What is the worse that can happen? You get the money you need to grow and succeed in this down economy.
Part of the issue with these businesses in obtaining a business loan is not so much based on a poor performing business but more related to the poor credit of the business owner. And, as this slow economy remains sluggish, personal credit score will continue to decline.
Banks and most private lenders will pull credit reports first. If your personal credit score is low (below 700 FICO) regardless if you have business credit or not they will trash your application and move on to a deal they know they can get funded.
It is just the nature of this beast.
The bad side is that those businesses that are still generating revenue and still have huge potential are also being passed over. The question is should they be?
There is a growing trend in small business lending where lenders are starting to look past credit scores and focus more on the performance of the business on its ability to generate revenue - as it is this revenue that will be used to repay the business loan.
And, that is what your lender wants you to repay both principal and interest.
Bank Statement Business Loans:
These new crops of business loans are termed Bank Statement Business Loans.
Very similar to a business or merchant cash advance, these loans look at your business's past results. But, instead of focusing on your merchant statements (your past credit card receipts) or requiring you to switch merchant processors, they look at your average bank statement deposits and balances.
And, if you continually have cash flowing into your bank account or retain sufficient balances, your business can factor that performance into a cash advance to be used for working capital, operating capital or any business need.
Example: Let's say that your business has, over the last 6 months, an average balance in your business bank accounts of ,000. Now this is an average. Sure money will flow out to cover expenses or purchase more inventory or supplies. But, your business is also generating new revenue that replaces that outflow; resulting in this average balance.
You need working capital and turn to one of these bank statement financing companies who will fund 3 times your average daily balance or ,000 in working capital not based on your credit but based on your business's ability to constantly generate revenue.
Most of these financing companies will approve loan amounts between 2 to 5 times of your average daily balance.
Plus, the more cash you deposit or hold in your bank account the higher the loan amount.
What could be better? A business loan based on the merits of your business and not simply on your personal credit score.
Some benefits of these bank statement business loans are:
Low FICO scores or that your bad credit does not matter (FICO scores below 500 will be accepted).
The loans or advance is based on your business performance.
None of the burdens or limitations of merchant cash advances like being based on credit card receipts only or switching merchant processors thus, no merchant processing required.
No collateral - the loan is unsecured.
Almost all business types are accepted.
So, if your credit is holding your business back from growing to that next level, then put on your entrepreneur hat and seek out a solution to the problem.
Far too many good and great businesses are being turn down for a business loan based on outdated bank underwriting policies. It is good to see that other entrepreneurs in the financial markets are realizing that these are missed opportunities and as such are doing something about it.
Thus, if you are in the market for a loan only to find you are getting turned down due to bad credit, then you to should do something about it by looking into these bank statement business loans. What is the worse that can happen? You get the money you need to grow and succeed in this down economy.
Monday, April 30, 2012
Obtain Business Capital Using A Variety Of Commercial Finance Options
Commercial finance is one of the many options available to entrepreneurs seeking capital to start or grow an existing business. This sort of financing is also referred to as asset-based lending, meaning that it is a secured business loan. The borrower guarantees the loan by giving up business assets as collateral for the loan. Another popular phrase for commercial finance is asset-based finance.
Account receivable factoring is one form of commercial finance. This consists of selling open invoices for cash that can be used right away in the business. There are many benefits to this financing option including not giving up equity, being able to take advantage of early payment and volume discounts from your suppliers, you can actually purchase in greater volume from suppliers, and you also accrue no additional debt in your business.
Another popular commercial finance option is purchase order financing because it offers quick cash flow reserves. When any business is growing or expanding their business the cash flow simply isn't there because of the money it takes to market and produce products. Suppliers also want to be paid with C.O.D. and your customers are on Net-30 terms; so you run into a cash flow problem. Purchase order financing solves this issue by paying for the costs of your goods directly to the supplier, thus giving you more cash to use on more critical business expenditures. To begin with purchase order financing simply obtain a purchase order from your customer, find an approved supplier, place the order through that supplier.
Asset based loans, an additional commercial finance option, provide a short term approach to maximizing cash flow within a business. This form of financing is used as test for a business to show how they would perform with a long term loan. The business who is receiving the asset based loan has a short window to prove that with the proper financing their business model is effective, and that a long term loan would ensure business growth over a long period of time. This form of financing is perfect for the business that can't afford to wait to establish their business credit. The assets that are accepted as collateral for this type of loan include real property, accounts receivables, and completed inventory.
Other forms of commercial finance include bankruptcy reorganization, expansion financing, import and export financing, inventory loans, secured lines of credit, and merchant account advances. Financing a business is a difficult process, but if you utilize the financing resources available, your business have a much greater chance of success.
It is also good to work on establishing your business credit, ensuring that you separate your personal credit from your business credit. With good business credit scores obtaining large loans and other forms of capital is very simple, and you won't be one of the 97 percent that actually have a loan application denied. One other strategy that is easy to do and beneficial on your quest for business capital is to use a free business capital search engine.
Account receivable factoring is one form of commercial finance. This consists of selling open invoices for cash that can be used right away in the business. There are many benefits to this financing option including not giving up equity, being able to take advantage of early payment and volume discounts from your suppliers, you can actually purchase in greater volume from suppliers, and you also accrue no additional debt in your business.
Another popular commercial finance option is purchase order financing because it offers quick cash flow reserves. When any business is growing or expanding their business the cash flow simply isn't there because of the money it takes to market and produce products. Suppliers also want to be paid with C.O.D. and your customers are on Net-30 terms; so you run into a cash flow problem. Purchase order financing solves this issue by paying for the costs of your goods directly to the supplier, thus giving you more cash to use on more critical business expenditures. To begin with purchase order financing simply obtain a purchase order from your customer, find an approved supplier, place the order through that supplier.
Asset based loans, an additional commercial finance option, provide a short term approach to maximizing cash flow within a business. This form of financing is used as test for a business to show how they would perform with a long term loan. The business who is receiving the asset based loan has a short window to prove that with the proper financing their business model is effective, and that a long term loan would ensure business growth over a long period of time. This form of financing is perfect for the business that can't afford to wait to establish their business credit. The assets that are accepted as collateral for this type of loan include real property, accounts receivables, and completed inventory.
Other forms of commercial finance include bankruptcy reorganization, expansion financing, import and export financing, inventory loans, secured lines of credit, and merchant account advances. Financing a business is a difficult process, but if you utilize the financing resources available, your business have a much greater chance of success.
It is also good to work on establishing your business credit, ensuring that you separate your personal credit from your business credit. With good business credit scores obtaining large loans and other forms of capital is very simple, and you won't be one of the 97 percent that actually have a loan application denied. One other strategy that is easy to do and beneficial on your quest for business capital is to use a free business capital search engine.
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