Category Archives: Financial Advice

Sometimes, we find ourselves lost as to what we should do with our surplus capital. The best thing to do is to stop for a little while and start thinking about it. Still not sure? Then you should seek financial advice.

Financial advice is generally seeking advice on how to invest your money on worthwhile activities and profitable ventures. An expert in financing and management can give you a run for your money that could make sense and give you additional insights on how to maximize your resources. Financial advices could also help you in solving your debt problem. A good entrepreneur always seeks help when he or she needs it.


Self Managed Super Funds

Retirement plans provide benefits for companies or government institutions concerned with the longevity of investments for their future. Having one for the long run must ensure security on your funds. The Self-Managed Superannuation Fund is a type of pension plan that features a full control as to how your funds and assets will be invested or will operate. In setting up a SMSF, you must know your skills relevant to your needs and you must have reliable providers.

To start running a SMSF, you will have to decide first if: you’ll take charge yourself to the submission of pertinent documents, plan management, record-keeping and taxation registration; or outsource all or some of these to legal individuals or service providers. The next step here is to look for the appropriate SMSF provider. Indexes of providers can be found over the internet. Choose the one that suits you the most. But to find out if you have chosen the right provider, check out first how long they have been in the business. As an advice, you must be cautious on selecting the providers who’ve just been in existence for barely two years. You may want to check some background information of the operators if they are capable enough to handle you as a client and your superannuation fund.

Many of the online service providers give fund establishment services, ongoing administration and one-off transactions. Aside from these, some are even linked to various financial and adviser groups. In fact, you can even benefit from their financial products.

A complete package of services is also offered by some providers. This includes investment accounts, direct services for the requirements and lawful individuals like an auditor, a tax agent, a financial adviser and a relationship manager. However, this can be costly so you must be watchful on the signing of documents and other related business transactions. Usually, a flat fee or an hourly fee for administration services could be charged on your bank accounts or even on your assets.

The business expenditure for a SMSF with the aid of online providers is relatively cheap, though. If you are concerned whether to have online or face-to-face service providers, consider first your needs and the difficulty of your fund. But at many times, face-to-face consultations with extra credits are also made available by the online providers. You may also opt to hire an accountant provided that he/she is a SMSF expert.

The last thing that you have to consider on selecting the provider is the scope of their SMSF service. If you opt to have a complete package agreement, it may depend on the benefits that the operators will give you. Evaluate then which online provider offers better services in terms of business and running payments, additional fees and other expenses that may come up which is not included in the package deal. Now if you want to be guaranteed, you can ask your financial adviser to separate the SMSF running costs and recommendations regarding non-super assets, if there are any.



Funding your Business without a Loan from a Bank

Most of the time, applying for a small business from banks require a collateral; and this has been proven quite a challenge to small business owners. Due to a lot of requirements, most small business owners have already factored out getting loans from banks. Nevertheless, this doesn’t mean that you cannot find other creative ways in funding your business. Here are some things to try, and their pros and cons, in order to get that additional funding for your business.

The Factoring Method

The factoring method allows you to sell your business’ accounts receivable to a third party entity in exchange for immediate cash. Factoring can be quite expensive though. With mark-ups of up to fifteen percent, factoring might work for expansion; but this method might not be best for a company that’s downsizing or losing money.

Use your IRA or 401(k)

You can also consider borrowing money from your retirement funds. First thing you might want to consider in doing this is taking a sixty-day interest-free loan from your 401(k); there are also no fees involved if the loan was paid back on the time specified. One important thing to take note of though is that these funds are for your retirement. It is usually risky and might even be devastating to lose this money in business.

Try to Secure a Government Grant

Government grants require extensive research at the local, state, and federal government levels. One important consideration though is that these grants are very technical in nature. Moreover, they usually require some very strict reporting in the progress of the research being conducted.

Get a P2P (Peer-to-Peer) Loan

You can find some online organizations that offer peer-to-peer loans. These peer-to-peer loan companies have people who you don’t know offer you to loan money from them. Your possible loan amount depends on your credit score, the economy, the period of the loan, and your business’ story. On the other hand, peer-to-peer loans are hard to acquire and the interest is quite high.

Use Global Crowd Funding

Very much like P2P funding, crowdfunding allows you to get people to invest in your particular organization. But unlike, P2P, crowdfunding donors do not expect to receive money back. You can, in turn, provide them with rewards of receiving your products first, or having products named after them.

Engage in Microfinancing

Microfinancing is relatively new. Microfinancing organizations provide small loans that are based on your business’ experience, marketability, and sales.

Get Financing Options from Wholesalers or Suppliers

Doing this method helps you work more closely with your supply chain to get the financing that you need to further fund your business. This method works best with a local supplier who has really shown great interest in your products or services and is willing to work with you. As a side note, always remember not to personally guarantee these types of loans.

Join Business Plan Contests

Another creative way to get your business funded is to win the money through competitions. There are numerous business plan writing competitions that are awarding a good amount of money, or funding, to the winners. Just make sure that your business writing and presentation skills are tip-top because you will be competing with the best in the country.

Find Organizations that are ‘Business Incubators’

New businesses can get money, mentorship, and other similar support from organizations that are business incubators. Business incubators usually have great track records of success on the businesses that they’re nurturing. Just be mindful that there is a lot of competition for small businesses that want to be part of these organizations.

Barter Goods or Services

You can also look at exchanging products or services instead of money. Moreover, bartering can save you money and move some unused resources. This can be done directly with another business or through barter exchange organizations. Do take note though that you only need to barter a few select products and services; bartering without cash cannot pay employees or rent.