3Feb, 2023
    Worries of Stagflation??

    Worries of Stagflation? We already know there is inflation. But are we seeing signs of the dreaded stagflation in the economy? Who knows, only a picture in the rear view mirror can tell us. But regardless of the terms we use, businesses are experiencing some turbulent and uncertain times. We are handing you the keys that might help your navigate these challenging times.

    We anticipate that for an extended period, revenue may flatline while costs keep increasing. If you have exhausted the cushion you had set aside, it is time to take some other strategic measures to preserve the cashflow.

    worries of stagflation work smarter no harder

    KEY #1 – Keep the cost of debt to a minimum. And if interest rates are rising, consider replacing any variable interest rates loans with fixed rate interest payments. The fixed rates may feel high now, but if the Feds launch into drastic action, you will be prepared. Conversely, when the interest rates fall again, you can refinance at the lower rates.

    KEY #2 – Become a landlord. During stagflation, rents may increase and your business’s revenue might not. If you have extra cash available, consider buying the building in which your business operates, then rent the other half of the building to other tenants. Of course, purchase wisely. There are very friendly loans available to support purchasing commercial real estate for occupancy and rentals. So explore all of your options.

    KEY #3 – Be opportunistic about acquisitions. Companies that are going out of business or need to raise cash may sell property or equipment at below market prices. Consider acquiring commercial property, equipment, assets, brand lines or staff with needed skills to augment the business you are operating.

    Likewise, consider merging/acquiring a competitor, buying a channel, or manufacturing your product in-house if doing so allows both companies to reduce overhead, expand into new markets or offer an expanded array of products or services.

    KEY #4 – Augment staff with technology. Embrace automation in your business can supplement the staff and allow people to do more with less. If you have been resistant to incorporating technology into your daily business routine, you may be missing one of the biggest opportunities for growth in your company and for your staff. Technology can enhance your product output as well as offer a better customer experience. Should you higher staff person, or should you invest in technology that helps everyone grow. Business loans are available to expand your business technology needs and help your business be more cashflow positive.

    This is the time to think strategically and put the sound principles into action. This year will be another year of change to stay alive, or you can make it a year of change and leverage the opportunities coming available. Ultimately, its these times that help us grow and expand into places we did not even know existed. Protect the cashflow, manage the cash, and leverage debt where possible.

    We are here to find the strategies and the loans that help propel your business forward.

    3Jan, 2023
    Who should be on my team in 2023?
    who should be on my team

    Who should be on my team in 2023?

    There’s no time like the beginning of the year to complete a thorough assessment of your business activities.  Where have we been? Where are we now? and Where are we going? Most good business owners take the time to at least think about what the year will bring. And in the wake of uncertainty of the upcoming year given inflation, increasing interest rates, the war overseas, and political turmoil, one of those line item tasks should include asking:

    Who do I put on my team professionally?

    Take an assessment of the professionals around you. Your attorney, your cpa, your banker, your technology person. Yes, you’ve worked with them for years, but are they serving the purpose you need them to right now? Certainly, you do not want to be in a quandary and then have limited options to choose from. The best time to explore your options is when you are not under a stressful situation.

    Who should be on my team in 2023?

    The obvious as stated above, but is that all the key management players I need to achieve my big impossible goals this year? Who else should I consider to help my teams perform? More importantly, who are bringing good ideas to the table that lets me choose the next steps for our business? Or takes my business into a new direction?

    Think you have it under control? Think again! The world of finance is changing rapidly.  You do not have the time nor probably the desire to keep up with the latest and greatest growing financing trends, but there is nothing wrong with exploring some tried-and-true methods and incorporate some well-worn paths to grow your business.

    As I have said many times before, cashflow is king. Protecting your business cashflow is the secret to your business success. I can guarantee, that none of those professionals can advise you on protecting your cashflow. They can only speak to managing your money, not generating it. Which is actually different than managing your cashflow.  Not having cash-on-hand to make payroll or pay your bills is one of those things that will keep you up at night. Not being prepared for a surprise negative cashflow situation, will take you out of business in an instant.

    Of course, turning to the banks, when you need the money; they cannot lend it to you when you are in an adverse financial position. We are already witnessing the banks tightening lending criteria and standards. And if you remember in 2008 crisis, the banks were not your friend. They were often the source of the problem. I am not saying this is 2008 all over again. The current situation is very different and there are some strong fundamentals at play. However, there are some similarities that are worth paying attention to. How does the saying go? The banks only lend money when you don’t need it. There is some truth to that.

    And if you find yourself in a quandary, predatory lenders are waiting behind the scenes to scoop up on the opportunity. This is a position you want to avoid. So, if you are planning for a business-as-usual kind of year during your assessment, you may miss the mark. Lets be honest, this is a “Take Action” kind of year, not a wait and see how it goes kind of year. The smart people will make decisive plans and act early in the cycle. They will expand their tolerance limits and plan for the low cashflow possibilities. And they will surround themselves with talented people who can bring creative ideas to the table when navigating a difficult year. You will be brilliant!

    At Business Loan Solutions, we are dedicated to your business success. We understand the importance of cashflow in your business and we strive to find the right solutions to keep operations running smoothly, even in this uncertain time. If the saying goes, the banks only lend money when you don’t need it is true, then the opposite is true too.  While your business is going well, look for solutions that work for you. Consider a working capital loan or a line of credit as a back up plan. Consider consolidating your loans, especially if you have a long-term loan coming due this year. Take advantage of equipment leasing or invoice factoring to diversify your cashflow possibilities. Or even investigate an SBA loan to expand your business. We have many levers to pull in your favor and we can help you plan this year’s cashflow strategy.  

    So as we head into an uncertain economic year, who do you want on your team?

    22Jul, 2019
    Asset Protection Trusts

    In the realm of wealth building and protection, one strategy that individuals often employ to protect their assets is the establishment of an asset protection trust. This powerful legal tool aims to shield funds from the impact of taxation, divorce, and bankruptcy, offering a layer of security and peace of mind. In this article, we will delve into the world of asset protection trusts, exploring their purpose, structure, and benefits.

    An asset-protection trust functions by separating the beneficial ownership and legal ownership of trust assets. While the beneficiaries of the trust hold equitable interests in the assets, they do not possess legal title to them. This arrangement fulfills the objective of asset protection planning, which is to shield assets from creditor claims without resorting to concealment or tax evasion. It is important to note that a creditor’s ability to satisfy a judgment against a beneficiary’s interest in a trust is restricted to the beneficiary’s stake in that particular trust. Consequently, asset protection trusts strive to limit the interests of beneficiaries in a manner that prevents creditors from seizing trust assets.

    An asset protection trust is a type of trust that aims to safeguard funds by holding them on a discretionary basis. The primary purpose of such trusts is to minimize or reduce the impact of taxation, divorce, and bankruptcy on the beneficiary. However, governments and courts often impose restrictions or limitations on these trusts to regulate their effects.

    What is an Asset Protection Trust? An asset protection trust is a form of trust that enables individuals to hold funds on a discretionary basis, with the primary goal of mitigating potential risks to their wealth. Unlike other trusts, an asset protection trust splits the beneficial enjoyment of trust assets from their legal ownership. The beneficiaries of the trust hold equitable interests in the assets but do not possess legal title to them. This separation ensures that the assets are safeguarded from potential creditor claims, providing asset protection without resorting to concealment or tax evasion.

    Benefits of Asset Protection Trusts: Asset protection trusts offer several key advantages for individuals seeking to preserve their wealth. Firstly, they provide a robust defense against potential claims arising from creditors, divorce settlements, or bankruptcy. By limiting a creditor’s ability to satisfy a judgment against a beneficiary’s interest in the trust, the trust assets remain out of reach. Additionally, asset protection trusts can enhance privacy and confidentiality, as they are not subject to public scrutiny like other forms of asset ownership. Furthermore, these trusts can offer significant tax advantages, helping to minimize tax liabilities and optimize the distribution of assets to future generations.

    Key Features of Asset Protection Trusts: To ensure the effectiveness of an asset protection trust, certain key features must be considered. Firstly, the trust must be irrevocable, meaning it cannot be altered or revoked once established. This characteristic is crucial as a revocable trust does not provide the desired level of asset protection since the settlor retains the power to revoke it. Most asset protection trusts also incorporate a spendthrift clause, which restricts a trust beneficiary from transferring their expected interest to a creditor. However, it is important to note that there are exceptions to this clause, such as self-settled trusts, debtor-as-sole-beneficiary trusts, and support payments for former spouses or minor children.

    Legal Considerations and Jurisdictions: Asset protection trusts are subject to various legal considerations and regulations, which may vary depending on the jurisdiction. While some jurisdictions have restrictions or limitations on asset protection trusts, others offer more favorable legal environments. For example, jurisdictions like Alaska, Bermuda, and the Cayman Islands permit self-settled trusts, providing additional protection through the spendthrift clause. It is crucial to consult with legal professionals experienced in asset protection planning to navigate the legal intricacies and determine the most suitable jurisdiction for establishing an asset protection trust.

    To achieve asset protection, these trusts must be irrevocable since a revocable trust does not provide the desired level of asset protection, as it can be revoked by the settlor. Most asset protection trusts include a spendthrift clause, which prevents a trust beneficiary from transferring their expected interest to a creditor. However, there are three general exceptions to the protection offered by the spendthrift clause. The first exception applies to self-settled trusts, where the settlor of the trust is also a beneficiary. The second exception occurs when a debtor is the sole beneficiary and sole trustee of a trust. The third exception is for support payments, where a court may order the trustee to fulfill a beneficiary’s support obligation to a former spouse or minor child. It is worth noting that the first exception, which accounts for the majority of asset protection trusts, no longer applies in several jurisdictions. However, certain jurisdictions like Alaska, Bermuda, and the Cayman Islands permit self-settled trusts to provide settlors with the protection of the spendthrift clause.

    By implementing an asset protection trust, individuals can shield their assets from potential creditor claims, provided the trust is irrevocable and adheres to the relevant legal requirements. This strategy is a popular choice for those seeking to safeguard their wealth and minimize exposure to financial risks. To learn more, give us call!

    16May, 2018
    Have you been declined for financing?

    If you have been turned down for a loan from your bank, do not take it personally.

    The fact is only 8% of small businesses actually qualify for conventional financing from their bank regardless of a good working relationship with your banker.

    There is no need to worry though. Business Loan Solutions has over a 90% approval rate for loan starting at $500,000 and up.

    We have several products. Term loans, line of credit, SBA loans, and more.

    We have a simple one page loan application, and only limited documentation to qualify.

    There are no application fees, and flexible terms.

    Contact us today to bring your business to the next level.

    If you really want to make your business zoooooommmmm….call us about equity investing and wealth generation strategies.

    Call us today! 877-741-9215