UK Properties Investment Millionaire

How to do it.

With interest rates at their current level, money in the bank is going to grow so slowly that it might as well be kept under a blanket. By contrast, property prices have soared, far outstripping inflation.

It’s important to assess all the pros and cons of an investment before jumping in. “Remember that property is a long-term game, and if you want to make money from it, never put yourself in a position where you are forced to sell,” explains Rupert Collingwood of the London Management Company.

Most observers agree that investors who put money into flats tend to generate a good return. Generally, flats make better buy-to-let investments than houses, and if your budget will stretch to a two-bedroom, two-bathroom flat. 

The second bathroom might sound unnecessary, but the more flexible your buy-to-let property is, the better. When buying a property, it’s not going to be easy to spot a bargain thousands of miles away. The sort of property that is so reasonably priced it can hardly fail to appreciate in value is going to be much easier to spot in your own backyard. In addition, you will have all the vital information about schools, transport and so on at your fingertips. You will also find keeping tabs on tenants so much easier than from another town.

If you are thinking of selling your main home to raise capital and kick-start your portfolio, consider making value-adding improvements first. A loft conversion or extension – assuming you have not employed a cowboy builder – can add 20 per cent to the value of a property, according to a recent Zoopla survey.

Turning an initial investment of £200,000 into a £1 million portfolio is certainly achievable if you do your homework,” says Graham Davidson of Sequre Property Investment. “One possible strategy might be to buy eight properties costing £100,000 each, using a 75 per cent buy-to-let mortgage, and putting down a £25,000 deposit on each. “Invest intelligently in vibrant, up-and-coming cities such as Manchester and Liverpool, and you would soon be in a position to purchase four or five more similar properties.

Novice buy-to-letters are at the mercy of estate agents promising unrealistic rental yields. So don’t trust the agents, do your research and get genuinely independent advice, says Camilla Dell of Black Brick. Average rental yields in central London are a modest 2.83 per cent, and if you only have around £200,000 to invest in a buy-to-let apartment, you may do better in “outer prime” areas, such as Fulham and the City.

If you are pursuing a high-income investment strategy as a means of building a £1 million portfolio, the best tactic is to invest in premium-quality, low-cost shared accommodation for working professionals,” says Steve Bolton of Platinum Property Partners.

With the right tenants, converting a single-occupancy property into one in multiple occupation will lead to significant capital gains, covering the refurbishment costs with plenty to spare.

When you analyse why house prices have grown faster in some areas than others, you will often find that the single most important factor is improved rail links, slashing commute times.

But it is no good waiting until that new station has been built before sinking money in an area. You need to stay ahead of the game, study long-term transport plans and pinpoint areas that will get the benefit of improving rail links in five years’ time.

Keep an eye out for approved local planning applications. They can be found on local authorities’ websites and often give an early indication of areas with good long-term investment potential.

Where planning permission has been granted for major housing schemes, there is often a noticeable ripple effect years before the developments have actually been built.

BUY-TO-LET MORTGAGES: WHAT'S HAPPENING AND THE BEST DEALS 

Lenders have slashed rates on buy-to-let mortgages to record lows to keep the market alive as the Chancellor cracks down.

Estate agents and banks reported a last-minute rush to buy second properties before a 3 per cent stamp duty surcharge on second homes arrived on April 1 - and lenders have slashed rates to keep landlord business coming in

The average rate two-year fixed-rate buy-to-let deal has fallen to 3.32 per cent – down from 3.59 per cent last April and 5.21 per cent in April 2011. HSBC and Virgin Money have cut rates on two-year fixes to below 2 per cent.

Virgin Money also cut rates on three-year fixed-rate buy-to-let deals to a new low of 2.48 per cent.

Average rates for five-year fixed rate buy-to-let deals are at a record low of 4 per cent, according to Money facts.

The buy-to-let mortgage you will be offered depends on your circumstances and the lender's criteria. Ideally, they prefer bigger deposits, strong rent to mortgage payments cover and healthy earnings elsewhere. This is Money's buy-to-let mortgage best buy tables and comparison tool provided by broker London & Country can help you find the right deal and fee-free get advice. 

Investing in buy-to-let involves committing tens of thousands of pounds to a property and typically taking out a mortgage. When house prices rise, this means it is possible to make big leveraged gains above your mortgage debt, but when they fall your deposit gets hit and the mortgage stays the same.

Property investing has paid off handsomely for many people, both in terms of income and capital gains but it is essential that you go into it with your eyes wide open, acknowledging the potential advantages and disadvantages.

If you know someone who has invested in buy-to-let or let a property before, ask them about their experiences - warts and all.

The more knowledge you have and the more research you do, the better the chance of your investment paying off.

Buy-to-let lenders typically want rent to cover 125% of the mortgage repayments and many now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals. 

The best rate buy-to-let mortgages also come with large arrangement fees.  

Once you have the mortgage rate and likely rent sorted then you must be clinical in deciding whether your investment work out.

Don't forget to factor in maintenance costs. 

What will happen if the property sits empty for a month or two? 

These are all things to consider. Make sure you know how much the mortgage repayments will be and if it is a tracker allow for rates to rise. 

It pays to speak to a good independent broker when looking for a buy-to-let mortgage. They can not only talk you through what deals are available but they can also help you weigh up which one is right for you and whether to fix or track.

You should still do your own research though, so that you can go into the conversation armed with the knowledge of what sort of mortgages you should be offered. 

To compare different property's values use their yield: that is annual rent received as a percentage of the purchase price. 

For example, a property delivering £10,000 worth of rent that costs £200,000 has a 5% yield. 

Rent should be the key return for buy-to-let. 

HOW TO WORK OUT THE RETURN ON YOUR INVESTMENT

Remember, if you are buying with a mortgage, rent-to-property price yield will not be the return you get.

To work out your annual return on investment subtract your annual mortgage cost from your annual rent and then work this sum out as a percentage of the deposit you put down.

For a £100,000 property that could rent for £500 per month, you would need a £25k deposit and roughly £2,000 in buying costs.

£75k mortgage at 5% interest rate = £312.50

£500 rental income x 12 = £6,000

Difference = £2,250

Deposit + buying costs = £27k

Annual return = 8.3%

Don't forget tax, maintenance costs and other landlord expenses will eat into that return.

Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time. 

This is tax efficient, as you can offset mortgage payments against your tax bill.

If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash.

Remember though, people rarely buy a home outright and they come with running costs, so mortgage costs, maintenance and agents fees must be worked out and they will eat into your return.

You may want to consider whether buy-to-let still beats an investment fund or trust once these costs are taken into account.

Once mortgage, costs and tax are considered, you will want the rent to build up over time and then potentially be able to use it as a deposit for further investments, or to pay off the mortgage at the end of its term.

This means you will have benefited from the income from rent, paid off the mortgage and hold the property's full capital value.

House prices are on the up right now but growth has slowed and they could fall again. If property prices dip will you be able to continue holding your investment? 

Meanwhile, rates are low at the moment and that is encouraging people to invest with rent comfortably covering the mortgage, but what will you do when rates rise?

Consider too the standard variable rate you may move to after a fixed rate period. What will happen if you can't remortgage?

Even in popular areas properties can sit empty. One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year - this gives a substantial buffer. 

Homes often need repairing and things can go wrong. If you do not have enough in the bank to cover a major repair to your property, such as a new boiler, do not invest yet. 

Refs: J Flynn, S Lambert

Matt Lloyd's New Book - Limitless Prelaunch

In my new book “Limitless,” you’ll discover some of the biggest lessons I’ve learned in selling over $100 million worth of my own products online, and how these lessons can help you start your own online business from home.

If you’d like a free copy sent to your doorstep (just help me cover postage), then get on the pre-notification list below!

This book is written for people who are new to internet marketing (or still trying to figure it out), and are determined to create a financial future of abundance, where they never have to worry about money again.

These free copies will be only be offered to a limited group of people. All I ask for in return, is that if you love the book, to share your feedback with me so I can use it during the official book launch.

Just click the link below and enter your email, and when the book is ready - you will be the first to know about it.

http://track.mobetrack.com/SH9yX

Register yourself for the "Limitless book" now.

Don't leave it too late, there are not many copy of the books left to be given a way. Get your book before they are gone.

Do it now and you will thank yourself at the long run.

Forward By: Kay Eve

Create A Full-Time Income In Your Spare Time

Where To Attend Online Business Work Shop For Free?

If You want to learn more about how to start an online business like others who have made millions then here is the link here to find out http://track.mobetrack.com/SH7Vf
This link will tell you where in the world the Workshop takes place. If it comes near you then take the opportunity to attend. You will thank yourself at the long run.
The above link will be updated every month to keep everyone up to date on the forthcoming location to attend Workshop Events around the world.

The IM Freedom Workshop is a free live internet marketing workshop designed to show you how to build and grow a sustainable and profitable online business in your spare time.

The company provides students with comprehensive instructions; mentoring, coaching and support helping them take action in order to realize their time, location and financial freedom ideals.

The IM Freedom Workshop generally runs about two hours.

You’ll receive outstanding training via their knowledge and experience. It doesn’t matter what your current level of online marketing skill is. Your trainers will be teaching you the techniques and strategies you need to become successful, based on Matt’s revolutionary online business model.

You can bring as many guests as you like, but please ensure that each person registers separately on a new form. We need to have an exact headcount to ensure we have an adequate venue and seating arrangements for all attendees.

You are not required to purchase anything. The workshop is completely free. When you attend you will also receive a FREE GIFT and you can leave anytime without restriction of any kind. If you are impressed by your learning experience during the event, as we believe you will be, we do offer additional educational products and services at our workshops, but you are never under any obligation to buy.

Find out how to select the right business model and why that will impact your bottom line.

Learn how to select products with high profit margins.

Discover how top earners generate high commissions and how you can do the same.

You will learn so that this jigsaw puzzle will become clear and you will know how to go navigate it to make your online business successful.

The best way to unlock the "how to"..... is always to learn from the expert who has already made his million online.

Don't let this opportunity pass you by, take action now. After all it's Free and the sooner you learn the sooner you will start making money online like thousands of others.

                                        http://track.mobetrack.com/SH7Vf

Forward by: Kay Eve

Surf the web and earn with PTC

What is it?

Profitable internet cash generators exist that give individuals the opportunity for Internet wealth generation. Just pick a number of Money Makers and learn how they operate.  

Two popular methods used in marketing are Paid to Read (PTR) and Paid To Click (PTC). PTR emails can earn money from the Internet and a steady flow of cash for those who sign up, particularly as they have referral schemes that enhance the income.

Most Organisations put up a sum of money to advertising companies that enlist users to read adverts, on the Internet, in return for cash or advertising. The users that sign up for this, pick and choose which subjects they are interested in. This is called Directed Advertising which provides a better sell rate for marketers.

Paid To Click (PTC) programs are a unique way of earning money online from home. Don't confuse PTC with Pay Per Click (PPC) which works the other way round. A website manager would pay someone else to click their site using PPC. With PTC you earn the money. You can start making cash with it just with your computer and internet connection. It basically requires no special experience or investment. You can create a free account by signing up with your email address. Provided you sign into a reputable scheme you will receive no spam or anything. The email is just to verify that you are a real person and that you aren't operating more than one account. The sponsors in this program pay for advertising their websites and a portion of this money is accumulated in your account when you surf those sites. You can withdraw the money to your payment processor account, such as Paypal, Payza etc.

How does it work?

Register -  Click Ads - Get Paid !

A paid to click site will get money from sponsors who will be advertising their websites in it. The PTC site will give some money to its members if they view this advertisement. Suppose someone owns a website and he wants other people to know about his site and get some traffic. He approaches a PTC site to advertise his website for some money. Now the PTC site will show a link of his website in their site. Members of the PTC site can view the website by clicking this advertisement. Upon viewing the advertisement the members will earn a certain amount of money.

You can make real cash when you signup as a member of these PTC sites and click the adverts every day. The advertisers are paying money to those sites for getting their websites displayed to the viewers. As a viewer, you will be getting a significant portion of this money.

The most trusted paid to click websites are free to join and you do not have to invest anything. You will just need a valid email address to get started. There are options to upgrade your membership, but you can continue earning as a free member as long as you wish.

You can have only one account in a particular PTC site. Creating more than one account is forbidden and will lead to termination of your account. And most PTC sites allow only one member from a household to signup.

When you reach the minimum cash out amount, you can request the payment. The paid to click site will credit your amount via your preferred payment method (PayPal, Payza etc.).

PayPal and Payza are online payment processors. You need to have a PayPal / Payza (or any other supported) account to signup with a paid to click program. Read the Terms of the site to know which payment methods they are using to pay.

A useful feature of PTC programs is that you can choose to buy clicks on your own websites rather than take cash, effectively generating traffic to your websites for a little bit of effort on your part.

Other than clicking, you can increase your earning by completing tasks, signing up with offers, watching videos, participating in contests, referring other members etc.

Paid Surveys

We live in a consumer orientated world and products are being designed and produced continuously to appeal to the buying public. The companies that design and manufacture these products need to gain their information from somewhere and one way in which they can do this is by asking questions of potential purchasers. This information is so valuable to them that they are willing to pay for it.

Paid Emails

There exist paying email accounts where you can earn cash from Email account down liners. Typically these accounts will be conduits for advertising certain products.

There are many PTC sites on the internet. Many of them are not honest. Some are not stable. So I have listed the best and most trusted program that pays their members honestly and regularly. Sign up with the site listed below and start earning.

https://trafficmonsoon.com/?ref=Kaykullaya

Traffic Monsoon

High value Cash link Ads to click. Huge earning opportunity. Pays through Paypal and Payza.

Forwards by: Kay Eve

Simply Online Marketing Strategies

In the online world, it is important to "sell" your online brand so that it stands out above your competitors. That is where smart Internet marketing comes in handy. This will help visitors find and remember you, which can result in more traffic and more profits. Follow these tips to make your website stand out above the rest.

Visit the sites of your competitors. This will allow you to see what you're up against, but it can also give you ideas about what you can do a little better or a little differently. You can use their websites for ideas about content for your own site and blog.

You can reach out to your audience on demand thanks to an email list. Create an email list about a specific topic and send out newsletters with quality content. Once you build up your email list, you can send out information about your products, in the context of your newsletter or usual format.

Have a specific goal in mind. Figure out exactly what it is you want your website to do, and aim towards that goal. Start small at first, say by increasing traffic, and then move out to other goals. Many a website has failed because they tried too much at one time.

Know your lingo. Understanding the definitions of the field you are working with is just as important as why you are delving in. Without knowing what symbols, initials, and codes actually mean, you are diving into a pool at midnight. You do not know what is in there, and it may get you hurt.

Gather testimonials from customers and publish them on your website. A testimonial builds credibility and goodwill for your business. Testimonials should highlight your business's goods and services while demonstrating customer satisfaction. Customer testimonials should be honest and genuine. Satisfied customers will be glad to offer a few words of praise for your business.

One of the most important aspects of business is to stay as professional as possible at all times in order to separate your company from competitors. If you have a Twitter or Facebook page relating to your company, make sure to stay business professional even though you are on a social networking website.

Before you start out on your internet marketing journey. You should spend some time researching. Decide what market you are trying to break into. Know your game plan before you do anything else. The more investment you are willing to put into making things right from the start, the smoother the sailing will be once you start.

Going the email route in internet marketing can very well backfire on you and in a hurry. Make sure that any mail you're sending is short, informative, and presents a call to action to the potential customer. The idea is for people to read your message and feel the urge to click, not to read a long story and click out of your message, out of boredom.

Viral marketing works extremely well to build up a solid customer base, but you need to do this correctly. Putting together a loosely informative, short eBook and giving it away to your customers comes across as insulting. Take your time to put together a thorough, quality product if you really want to impress your customers.

As you can see from the previous list of tips, Internet marketing can really make a difference in the strength of your online presence. It takes a lot of work, a lot of networking, and tons of patience, but it is all worth it in the end to have a successful online business.

To Your Success,

By Kay Eve

Business Loan advice for U.S. and UK businesses

What you need to know!

                                                  

 

                                       

 UK business

If you run your own business, you could probably benefit from opening a specialist, dedicated current account for your company. Offered through all of the usual banks and building societies such as Barclays, Lloyds, Natwest, Santander and more. Along with specialist providers, business bank accounts offer debit cards, overdraft facilities, cheque books and automated payments such as direct debits and standing orders, just like a personal account does.

Over and above this, a business bank account usually offers a range of additional benefits. These can include change facilities, the option of a much higher overdraft, business loan, access to business guides and training materials, the use of communal meeting rooms and business-class travel facilities, foreign exchange rate discounts, fast international payments and insurance.

Although there is no legal obligation for companies to hold an actual business bank account, it is vital that the business's monetary affairs are kept separate from personal ones. However, if you are a start-up company or you work as a sole trader and do not think you need any of the additional benefits that a business account offers, a separate personal account will suffice.

Anybody that runs a company of any size is usually eligible to apply for a business bank account, though credit rating restrictions will apply. Some banks provide different accounts depending on the size or type of the business.
The most basic business banking accounts are free. For anything more complicated you'll pay either a flat monthly fee, or pay-as-you-go by the transaction, or a mixture of both.


                                                        

There are many different kinds of loans available to meet the needs of business owners. However, not all loans are created equal, and determining which ones are best suited to your needs can be complicated. That is, unless you know some of basic terminology associated with the various types of small business loans. This article is a primer on the types of small business loans.


Secured Loans
With a secured loan, your business is awarded a loan because you are putting up business or personal assets as collateral. This collateral is promised as repayment if you are unable to meet your repayment obligations.

Unsecured Loans
Unlike secured loans, an unsecured loan is awarded based on your creditworthiness. You don’t have to provide collateral to obtain the loan. Unsecured loans are riskier for lenders than secured loans and are typically awarded in smaller amounts.

Professional Loans
Professional loans are available for sole-proprietors. You might consider a loan of this type if you are a doctor, dentist, or lawyer with a private practice.

According to Nigel Lander, a specialist finance adviser for Business Link, raising finance for start-ups or early-stage businesses is very difficult. One way that will increase your chances is to prove that your business has clearly-defined income streams. If you show that your business will have money coming in, it will be easier to persuade the banks to provide finance.
“Bank finance is essentially for lending against anticipated income streams. For a very early-stage business, banks might come up with a small amount of money to match what the owner is putting in, on a pound for pound basis. Make it work at a modest level,” advises Lander.
If you have very little or nothing to put into the business, it will be extremely difficult to convince the bank to part with money. To heighten your chances, try and raise money from as many other sources as possible, such as your friends and family, any retained profits you may have, or a third party investor. Banks want to see commitment from the business owner’s end, so you will probably have to come up with some kind of security as a form of guarantee, such as your house.




                                               

 A watertight business plan
 When approaching a bank, your business plan and how you deliver it should be the best it can possibly be. If your bank manager is your best possibility and you have not practised your presentation, you might blow your chance of accessing finance. To lessen the risk, you could try approaching a different bank to do a ‘test run’ for practice.
“Many applications for finance get turned down because they are badly written or presented, and many get turned down because they are presented to the wrong people,” says Lander.
According to Guy Herrington, marketing director for business banking at Lloyds TSB, a well-prepared business plan is essential when approaching a bank, and many banks have packages to help you write and prepare your business plan.
“Banks decide to finance businesses on a case by case basis really. Less than 40% of customers actually borrow money when they are in the early stages of their business. Most will use funds from trade creditors or their family,” says Herrington.



                                            

Prove your management ability
Another factor affecting whether a bank will agree to finance your business is your track record and management ability. Can you make the business work, and do you have a background in the sector are questions you should ask yourself.
“The quality of the management team is always a major consideration. To help you, make sure you have support from a third party who has experience in areas where yours may be lacking,” suggests Lander.
Lloyds TSB’s Herrington says that it can be useful if you have a track record, but it is also worth highlighting any other relevant skills that you can bring to the business.



                                             

The bank’s view
At the end of the day, banks never finance anything on a 100% basis, otherwise they may as well be running the business themselves. They will always be looking to finance businesses on a partnership basis, and will always want a contribution in, for example, monetary terms from people running the business.
Remember also that each branch manager has a different discretionary lending limit; above the limit your application may need to be processed elsewhere, which means you could lose part of the ‘personal’ touch. The moral is to shop around, and certainly do not be put off by being turned down

 New loan scheme to fund your business

          

A not-for-profit bank has opened in East London to provide financing to sole traders and micro-businesses (those with fewer than 5 employees), which do not usually qualify for loans from mainstream banks.

 

The new bank, called Street, hopes to attract businesses like window cleaners, restaurants and small shops and plans to have 40 branches open in the next 5 years. It offers loans and advice to fledgling businesses in under-developed parts of the UK.

Street has a fund of around 4.5 million and provides an average loan of 2,000 to qualifying start-up companies. The maximum term for an initial loan is 12 months, but a business can then return for a further increased loan after that.

Deputy chief executive Martin Hockly wants Street to support businesses that might otherwise use inappropriate funding such as credit cards or personal loans.

Hockly says the main criterion is that the applying company must be trading, but also points out it must be legal too. He adds. We don't require formal business plans and accounts.

To apply, a business must call Street and complete an application form over the phone, which is then sent to the applicant for signing. The bank will then meet with the business to discuss the current and potential state of cash-flow over the next 12 months and develop a business plan.

The bank will then conduct due diligence into the business to ensure it is the sort of enterprise Street wishes to support and the business must provide a guarantor and 2 referees. Hockly claims the whole process can be completed in just a few days.

For more information or to apply for a loan, call Street on 0845-601 8690.  

                                                  

                                                    

 US business

Conventional Loans

Conventional loans are private loans issued by banks and other lenders. The federal government does not guarantee conventional loans; the lender is responsible for assessing risk.

Government-Backed Small Business Administration Loans

SBA loans are guaranteed by the federal government; however, there are typically stricter eligibility requirements. Businesses in certain industries -- such as residential property holding companies and lobbying organizations may not qualify for SBA loans.
Among SBA loans there are several different classes listed below, including general small business loans (and related subcategories), micro loans,  real estate and equipment loans, and disaster loans

General Small Business Loans

SBA 7(a) loans are the most common types of loans. These loans provide financial relief to small businesses and have various eligibility requirements. Within this category of loans there are four specific SBA programs:

• CAPLines: This SBA program is for business loans up to $5 million, and it is established to help small businesses meet their short-term and cyclical working capital needs. Within this subcategory of loans are four additional subcategories: Contract Loan Program, Seasonal Line of Credit Program, Builders Line Program, and Working Capital Line of Credit Program.
• SBA Export Loan Programs: This loan program is specifically for small business exporters. It’s designed to help business owners start or expand export activities within their company.
• Advantage Loans: Advantage loans include the Small/Rural Lender Advantage Loan, the Community Advantage Loan, and the Small Loan Advantage. What sets these programs apart from other 7(a) programs is the kinds of lenders that are able to obtain a guarantee.
• Rural Business Loans:  These loans are part of a special program for businesses located in rural communities. Rural business loans are managed by the US Department of Agriculture (USDA) under the Business and Industry Guaranteed Loan Program. With rural business loans, up to 80 percent of the loan amount is backed by the USDA.

     
                                               

 

Microloans

The SBA’s microloan program is designed to help business owners acquire loans for $50,000 or less. According to the SBA, the average microloan runs about $13,000. A microloan can be used for several purposes: to provide working capital or to purchase furniture, fixtures, inventory, supplies, machinery, or equipment.

Real Estate & Equipment Loans

Real estate and equipment loans are part of the SBA’s CDC/504 Loan program. They can be used to finance major fixed asset purchases.

Disaster Loans

Disaster loans are low-interest loans (offering rates anywhere from 4% to 8% maximum) and can be used to make repairs or buy replacements for real property, machinery, equipment, fixtures, inventory, and leasehold improvements. They are only available to businesses located in a community that has officially been declared a disaster area.
Remember that financial products are updated frequently. Check with a private lender or the Small Business Administration to see if other loans are available to help you grow your small business.

 Microloan Program.

Under the Microloan program, the SBA works with designated intermediaries to provide small short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and equipment. Despite Government cuts he Microloan program is set to continue but you should check with your local SBA office to find out its availability.

CAPLine Loans.

The CAPLine loan program makes loans available for businesses that need funding for a short time in order to "finance seasonal working capital needs; finance the direct costs of performing certain construction, service and supply contracts; finance the direct costs associated with commercial and residential construction; finance operating capital; and consolidate short-term debt." Loans are available under several programs.

 
                                             

 
When you go to a bank or the Small Business Administration (SBA) for a business loan, you will be required to complete a loan application form. You must provide much more information than you might think, and your ability to provide timely and complete information can mean the difference between getting the loan or not.

Using the application for a Business Loan as a guide, here is the information you need to provide:

1. Information about your business, including business name and address, your name, type of business, date business established, Tax ID Number (Employer ID Number) or Social Security Number (for a sole proprietorship) for USA.
2. Number of employees, now and if the loan is approved
3. The name and information about your business bank
4. Use of proceeds (amounts for all applicable items, and total):
• land acquisition,
• new construction/expansion/repair,
• acquisition or repair of machinery and equipment,
• purchase inventory,
• working capital (including accounts payable),
• acquisition of existing business
• to pay off an existing loan

Information about your current, previous, and pending business debt, including SBA loans and other government debt

• Borrower's name
• Lender name and information
• Original amount of loan
• Date of Application
• Present balance
• Rate of interest
• Maturity date
• Monthly payment
• Security provided
• Loan Status (whether the loan is current or past due or paid off)
• Outstanding balance
• If loan resulted in a loss to the government or other lender, amount of the loss

1. Information about the management of the business. For 100% of the ownership, you must include name and address and percentage owned. You may also be required to provide demographic information (race, ethnicity, veteran status, gender); this information can help the bank determine if you qualify for any special SBA loan programs. A resume of each executive, board member, and other key employees may also be requested.
2. Personal and financial information about all shareholders (with 20% or more of ownership), officers, partners, owners, including a personal financial statement.
3. Detailed information about assets being presented as collateral. For example, a legal description of real estate, serial numbers/id numbers for all large value machinery, equipment, furniture and fixtures, inventory records, accounts receivable aging reports. and other records as required.
4. A brief history of the company and the benefits that it will gain from the funds.
5. One to three years of projected financial information on the business, showing the effects of the funds.
6. Finally, you will be required to provide information about the financial history of the business for the past three years, if possible, including income tax returns balance sheets, and income statements.

Some of this information may be provided in your business plan, but make sure it is available somewhere to your lender or the SBA.

   

                                              

 



References: Small Business UK, J Murray - US Business.

Licensing

What is it

                                                

                                             
                                                                                             

Licensing is one of the fastest and safest ways for you to find a product to sell, with high margins.

You need to find content providers who you can license from, approach those content providers, and set up your own license deals.

In particular, a license may be issued by authorities to allow an activity that would otherwise be forbidden. It may require paying a fee and/or proving a capability. The requirement may also serve to keep the authorities informed on a type of activity, and to give them the opportunity to set conditions and limitations.



                                                          
                                                      

Brand licensing is a well-established business, both in the area of patents and trademarks. Trademark licensing has a rich history in American business, largely beginning with the rise of mass entertainment such as the movies, comics and later television. Mickey Mouse's popularity in the 1930s and 1940s resulted in an explosion of toys, books, and consumer products with the lovable rodent's likeness on them, none of which were manufactured by the Walt Disney Company.

Brand extensions later made the brand licensing marketplace much more lucrative, as companies realized they could make real dollars renting out their equity to manufacturers. Instead of spending untold millions to create a new brand, companies were willing to pay a royalty on net sales of their products to rent an established brand name for their product.





                                                     



A company may choose to license its brand(s) when they believe there is strong consumer acceptance for brand extensions or products. For example, when Apple launched the iPod there was an immediate need for accessories such as headphones, charging and syncing stations and carrying cases. Apple decided not to manufacture these products and instead chose to have a licensee make the products. By doing so, Apple could offer branded “Earbud Headphones”, “iPod docking stations” and “iPod socks.” Each is made by a separate company but together offer the consumer an elegant solution. All of these accessories are sold by licensees.
Apart from benefits to licensors, there are benefits to licensees as well. Licensees lease the rights to a brand for incorporation into their merchandise, but do not share ownership in it. Having access to major national and global brands, and the logos and trademarks associated with those brands, gives the licensee significant benefits. The most important of these is the marketing power the brand brings to the licensee’s products. When brand managers enter or extend into new product categories via licensing they create an opportunity for a licensee to grow their company. Below is an example of the licensed product process steps:

• Licensor chooses the product categories to be licensed
• Licensor finds and negotiates a license with the best licensees
• Licensees develop concepts, prototypes and final production samples and submit for approval
• Licensor approves licensed products for sale
• Licensees sell licensed products to authorised Affiliates or retailers. 

Licensees expect that the license will provide them with sales growth. This sales growth may be in the form of growth within existing market or the opportunity to enter a new market. To achieve this, licensees expect that the brand they are licensing has significant brand preference, that it will open doors and ultimately help them meet or exceed their business objectives. The licensing contract forces the licensee to achieve certain sales targets and royalties; therefore, the goal of the licensee is to quickly meet their business objectives, thereby achieving their contract obligations. Royalties are the monies paid to a licensor by the licensee for the right to use the licensed property. It is calculated by multiplying the Royalty Rate by the Net Sales.

                                                              

Example for Licensing to sell Name Brand Clothing in the USA.

Step 1

Find the brand-name company owner's address. You need the corporate address so that you can send a written licensing agreement directly to the corporate headquarters. You also need to understand the domiciliary laws that the corporation must comply with. You can find this information by conducting a Dun & Bradstreet search or by contacting a state's secretary of state office. You need to know the company's home location or state of corporate domicile, which you can determine by looking at the company's public filings or initial registration.

Step 2

Search the company's U.S. Securities and Exchange Commission (SEC) public filings. The SEC requires annual disclosures of publicly traded companies. Most brand-name clothing owners have offered their stocks for public purchase. You can use the electronic EDGAR database located on the SEC's website to determine the corporation's net worth and review whether the corporation's trademark is financially viable. Have a certified public accountant review the corporation's earnings statements.

Step 3

Send a request for proposal or request for additional information to the brand-name clothing company that you are interested in selling clothing for. Most large brand-name companies offer information on becoming licensed to sell their clothing brands. Mail your proposal package directly to the corporation or, if the company allows, submit it electronically.

Step 4

Review the company's website. Most companies list additional information on their public websites. A company's additional information may include the initial investment required, no-compete clauses and minimum purchasing requirements.

Step 5

Find an attorney to draft your licensing agreement. Your attorney should have specialized expertise in dealing with contract issues, business ownership issues and intellectual property rights. Many companies also use standard licensing agreements prepared by corporate counsel. If this is the case, you need your own attorney to review the written licensing agreement. You may want to add language or tailor it to your specific situation.

Step 6

Comply with the federal registration requirements required by the Federal Trade Commission in registering your apparel.

                                                

Generally the licensees will benefit from the use of licensing related promotions by driving more customers to its product or service.

The premium companies will benefit because they will supply larger volumes of items.

The licensors will derive an income from the use of their brand and the increased exposure it will bring, hopefully encouraging other areas of its business to also expand.

The service or main product using the licensed brand in its promotion benefits by providing its target market with a favourable item and/or association that drives purchase.

Licensing is a billion-dollar retail market worldwide. But a license isn't a prescription for instant success. It gives you the borrowed interest of a name that is either unique or has some consumer acceptance, but it still takes good selling and marketing to succeed. A license is, in essence, a tool, and when used well, it's an extremely cost-effective marketing tool.

Licensing offers three major advantages. First, it may mean you have something unique your competitors don't. Second, it may mean getting a little better margin because it's unique. And third, it may mean that 10 percent of the retailers you call on that you've never been able to sell to will finally take a look because you have something different. And when that happens, you can sell the rest of your line.


                                                                 

                                                           

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References: Jill Stimson, Entrepreneur.com,