08 Jun / 2017
A company’s future success is often dependent on one of its most prized resources – its employees. So much of the direction of a company is dictated by how much passion and talent is held within its workforce. Since quality employees are so important, how can one ensure that his or her workforce consists of such? Hiring valuable employees is the first step in securing your company’s future success.
How can you ensure that the candidate you recruit will be the right fit for the job, staying with the company for several years and contributing to your goals? There are several best practices that you can follow, increasing your odds of hiring and retaining talent. First of all, employee referrals should bear a lot of weight. You can even offer an incentive program to current employees to encourage referrals. The idea is that your staff is hopefully invested in the future of your company and will share the burden of bringing in additional talent. It’s ideal if the current employee can vouch for the candidate’s professional acumen, but vouching for his or her character is essential too.
Having a straightforward attitude and an honest approach within the hiring process is another best practice that will benefit both parties greatly. Neither manager nor candidate will benefit if the job is incorrectly marketed or if the manager is not honest about what the position entails, including the growth path.
This starts with creating an accurate job description. Be honest and realistic about your expectations. Ensure that the salary offered matches the position requirements. Likewise, when interviewing candidates, make sure that they fully understand the position, both the positive and negative aspects. Sugarcoating a job description or exaggerating opportunities for promotion will result in a disillusioned employee who likely won’t stick around for as long as you’d like.
Finally, instituting a background check is always prudent. You want to ensure that the candidate’s resume checks out and that his or her education and experience is valid. Likewise, as workplace violence becomes more prevalent, it’s become crucial that you ensure your candidate doesn’t have a criminal record. You owe that to your current employees to protect their safety and security.
Hiring driven and talented employees can be an important factor in your company’s success. Finding the right employees isn’t entirely up to chance, however. With a few proven practices, you can increase your chances of employing reliable staff who will support your business now and in the future.
Need more tips on how to run your company? Contact us today!
10 May / 2017
Whether you are buying an existing business, or creating your own startup, you want it to grow, right? Taking the proper steps is paramount to successful and sustainable growth. This translates to four important factors: the right people, scalable or single source, proven financial principles and financing options. When you implement these things, you might be amazed at how successfully you achieve business growth.
Find the Right People
As much as you may think you can do it all, owning your own business is time and energy consuming. The smart business owner knows what her greatest skills are and hires someone to do those things she is not as good at. The trick is hiring the right people, letting go of the people who aren’t contributing, and making sure each person is doing the right job. In the long run, this will make for a staff of happy people, doing what they are good at, and staying with the business for the long haul.
Scalable or Single Source
Do you want one business, and one location, that thrives on its own, or is your dream to create a product that sells itself over and over again? Your business plan will help you to decide whether your best bet to achieving growth is making it scalable or singular.
Follow Proven Financial Principles
Tip number three to help you achieve business growth is to make sure you are handling your money responsibly and following sound business practices. You’ll need accounting systems that don’t require a degree in mathematics. You’ll need simple tools to track income and expenses. Thinking about what you’ll need for tax preparation ahead of time will save major headaches when the deadline is looming. Also, sooner rather than later, you’ll want to be thinking about obtaining the services of a good accountant.
What About Money
Whether startup or established business, you’re going to need capital. Surprises lurk around every corner – unexpected equipment breakdowns, new equipment needs, opportunities with limited timeframes, expansions. It’s important that you have the capacity to handle the unexpected without it causing a setback to your business operations. Customized financing options are a perfect solution for the savvy entrepreneur focused on smart business growth. Options you may not have heard of include obtaining a merchant cash advance, accounts receivable financing and hard money loans. You’ll want to get the right advice on which of the many financing options would be best for your business.
Once you’ve established a business, your focus becomes its growth. By following these four business growth tips, you’ll be making sound decisions based on proven practices, techniques and advice. Contact Liberty Commercial Capital in Carmel, Indiana today to learn more.
09 May / 2017
The Carmel, IN commercial real estate market is growing quickly. Between rehab projects, multifamily residences, and an influx of new businesses, financing Carmel, IN commercial properties is one of the biggest goals, and challenges, for local investors and property developers. Many investors have multiple properties to manage, and financing each one individually can become a costly endeavor. Fortunately, there is a solution for financing multiple Carmel, IN commercial properties at once.
Using Blanket Loans For Carmel, IN Commercial Properties
Sometimes juggling multiple Carmel, IN commercial properties can be challenging. Previously, when Carmel, IN commercial real estate investors has multiple properties in their portfolios, renovating, repairing, and building had to be performed one property at a time. Taking out individual bank loans was not the most cost-effective method, and the process resulted in a lot of unnecessary debt. Blanket loans, on the other hand, provide financing for many Carmel, IN commercial properties at once.
How Blanket Loans Work
Instead of financing Carmel, IN commercial properties piecemeal, investors can get blanket loans which can cover the financing needed for a handful or even hundreds of properties. Blanket loans provide commercial real estate investors with the financing necessary to purchase, renovate, or build onto multiple commercial properties without having to seek out individual loans. Projects can be coordinated, instead of staggered or delayed due to the processing of individual loan requests.
Consolidated Terms And Rates
When local investors take out multiple loans to finance Carmel, IN commercial properties, payments become chaotic. Different loans have different terms and interest rates, and eventually, debt consolidation enters the picture. Blanket loans by their very nature, have consolidation built into their structure. Investors and developers can finance multiple Carmel, IN commercial properties at once, and get one set of terms and rates.
Types Of Carmel, IN Commercial Properties That Work With Blanket Loans
While blanket loans can sometimes be used for retail and office space, most investors use them for Carmel, IN commercial properties such as houses and apartments. With the recent growth in the local commercial real estate market, people have been building their portfolios with house flipping projects and multifamily rentals. Blanket loans cover the financial needs, without the hassle of the numerous terms and rates that come with individual loans.
Get The Best Blanket Loans For Your Commercial Properties
If you are trying to expand your commercial real estate portfolio in Carmel, IN, contact the experts at Liberty Commercial Capital, Inc. We offer the best blanket loans in the Carmel, IN area, as well as a wide array of commercial real estate financing programs.
If you’re interested in real estate investments, one of the first decisions you have to make is whether to invest in residential or commercial real estate. Any properties that generate income are considered commercial. Residential properties are typically purchased by people who intend to live there.
A lot of people let their instincts direct them toward investing in residential properties, because there’s an inherent familiarity—everyone has lived somewhere before, whereas leasing property for a business is a much less common experience. Rather than letting unfamiliarity direct you away from commercial real estate, take the time to consider what kind of property would genuinely suit your financial goals better.
One of the major differences between the two types of properties is in how their values are assessed. Residential properties are usually assessed based on comparable properties that have sold in the area. Often there are many “comps” to look at for any given residential property, which is why this easy method is used. Many people are already familiar and comfortable with this method of assessment; either they, or friends or relatives, have likely at least considered purchasing a home.
Commercial properties tend to have few, if any, comparable properties to look at. That’s why there’s a completely different method used to assess them. Commercial properties generate income every year, and that income is the basis of the property assessment. It’s a little more complicated than the comparison method but not hard to understand. It’s based mostly on the net operating income of a property—the income that it generates after expenses—and the price paid for that property. This gives an idea of the return on investment a piece of commercial real estate can offer. It’s affected by a number of other factors, too: what kind of tenants currently lease there (are they reliable, long-term tenants with good credit?), market conditions, the demand for that kind of property in the area, etc.
One effect of this difference in the way properties are assessed is that it’s easier to increase the value of commercial properties. If the neighbors are selling similar-sized homes for a certain amount, your property’s value may be pegged to theirs whether you’ve made lots of improvements or not. However, any method of increasing the net income generated by a commercial property can increase its value, regardless of what the neighbors are doing.
Unlike stock market investments, real estate has inherent, lasting value; that property still exists when the market crashes and has a better chance to recover value over time. Will you choose to buy residential or commercial real estate?
30 Mar / 2017
No matter what kind of business you own, you will need some kind of equipment. Conventional wisdom might have you believe that you should spend the money to buy brand new equipment, but it might be in your best interest to lease used equipment instead. Here are just some of the benefits of equipment leasing for your small business.
It Conserves Your Working Capital
The first reason why you should lease equipment for your business is because it conserves working capital that can be spent on your other day-to-day expenses. It also gives you a pre-determined expense every month, which will help you better plan your budget.
It Makes It Easier to Upgrade Outdated Equipment
Depending on your business, you might need to rely on the latest and most advanced equipment to stay ahead. This means having to upgrade your equipment periodically, something that is a lot easier to do when you lease what you need. Many leases will allow you to upgrade your equipment as needed, and even when they don’t it is usually cheaper to pay a monthly payment on something you won’t need for long than it is to buy equipment outright.
It Can Provide You with Tax Benefits
In many cases, equipment leasing provides businesses with a full deduction of payments against your earnings. It may also preserve working capital that you otherwise wouldn’t have access to if you purchased your own equipment.
It Gives You a More Attractive Balance Sheet
Finally, equipment leasing will give you a balance sheet that is more attractive and easier to follow. A lease is considered a business expense, while borrowing money to purchase money goes down as a long-term debt. You will want to avoid debt as much as possible, so that in itself could be considered a great argument for equipment leasing.
For more information about how equipment leasing can help your business, contact the experts at Liberty Commercial Capital today.
23 Mar / 2017
No matter the timeframe of your journey through owning a small business, surrounding yourself with a support group is always a good idea. There will always be those that laugh at your ideas for success, and the key to actually obtaining success it to keep your environment positive. To help you broaden your current circle, it is important to look beyond where you normally may look for support. Connect with groups you may have lost touch with, and see if they would be interested in supporting you and your business. We have compiled several possible groups to explore for your positivity needs:
If you do not have any hobbies, acquire some, and connect with the people that maintain similar interests as you. Explore various leisure activities, and bond with those you meet, as those with similar interests will be more likely to lend their support to you.
The people you spent your younger and more creative years are likely to offer their support in your endeavors. Reconnect with those you went to high school and college with, and let them know what you are currently doing, and your plans for the future. If you stayed in the same town as they may have, it is even more likely they will offer their support.
Social networking is a wonderful way to network with pretty much anyone, so utilize the Internet as much as possible. Social media and networking allows for businesses to interface and speak much more easily, so build as many connections as possible and meet new people that will offer fresh ideas.
Oftentimes, there are already established networks of people doing similar work as your business. Reach out to those in the network, especially professionals, and attend conferences or professional groups for an immediate support system of likeminded individuals.
Chamber of Commerce
Meeting and connecting with social leaders in the chamber of commerce is a great way to connect with people in higher up places. Becoming an active member can help spread your business, as well as introduce you to new businesses and industries that may be interested in collaborating.
Former coworkers often retain the same skill-set that you have, as you generally obtained them through the same training. Especially if you have worked with or shared similar ideas with a specific person, reach out to them to reconnect and see if they would be willing to provide insight or ideas for your business.
Meeting new people and reconnecting with old acquaintances is a great way to help build and spread your business. Find people that will support you and your business, and nurture the ideas that lead to its success.
16 Mar / 2017
One of the biggest problems faced by small businesses is maintaining a steady cash flow, since expenses such as payroll, vendor supplies, and building overhead simply do not wait until incoming revenue is available. It’s no exaggeration to say that cash flow can literally be the lifeblood of any small business, and when you don’t have it, your business will definitely suffer, and it may even fail as a result. One of the very best solutions for keeping cash flow consistent is to have an unsecured business line of credit, and the advantages it provides can be crucial to survival.
Fast access to cash, with high credit limit
With an unsecured business line of credit, you’ll have access to however much cash you need, at any time. Usually available through the use of a credit card, you can literally go just about anywhere and still have the access you need, and since these lines typically involve high credit limits, you can use the cash to cover any urgent expense.
As opposed to a traditional business loan which requires fixed monthly payments, you have a good deal more flexibility when making payments on however much of the credit line you’ve used. In difficult times, you can pay a minimal amount, and then when your finances are more robust, you can pay more to lower your outstanding balance. Many business credit cards offer very low interest rates, at least for the first year of usage, to encourage card holders to use their credit lines. However, you can also think of it as something similar to an insurance policy – an asset you have that you rarely need to actually use.
Segregation of personal and business finances
Although you do benefit from business credit reporting, you can still keep your business finances and your personal finances completely separate. This can be very useful for establishing credit history for the business, apart from your own personal credit history. It also protects your personal credit history from anything that might be happening in the business, so that you don’t necessarily become subject to the same downturns that your business might be undergoing.
To learn more about how an unsecured business line of credit can help your business, contact us today!
Running a small business by yourself can be very rewarding, but expanding without hiring additional help is a challenge. However, it is not impossible. If you want to expand your small business without taking on additional employees, consider these helpful tips.
Diversify your Small Business
Once you’ve gotten your small business off the ground, you should have an idea of what your customers expect from you. If you have the capital to do so, you can expand by offering other goods and services that your clients might need. It should tie into what you’ve been offering already since that will be easier to sell.
The right technology can help you optimize the many jobs and responsibilities that you have as a small business owner. There are thousands of programs on the market that will help you with this, and the right ones will free up at least some of your time so that you can focus on other aspects of expanding your business.
Finding New Markets
Branching off into a new market is always a risky venture, but it will help your small business grow. This is something you can do after you’ve already diversified your business, mostly because you will have a better understanding of what your clients need from your small business. A new market could also help you find new clients.
Outsource Your Work
If you don’t want to hire new employees but you have too many responsibilities to handle by yourself, you can always outsource your work to freelancers. You will have to work on your operations management skills in the short term to make sure that all of your work is being outsourced to the right experts, but you will be able to get more work done in the long term.
Finally, simply moving your business to a new location can be what you need to expand your operations and find more clients. You will have to do some research to find the best location, but it will be easier to pick up and move while your business is still a small one.
For more information on our financial services that can help you expand your small business, contact us at Liberty Commercial Capital.
28 Feb / 2017
While people not involved in the real estate business may never have heard of blanket loans, it’s a term well known among real estate professionals, the practice having been around for several decades. As the name suggests, blanket loans come into play in real estate transactions which involve multiple properties in a single loan.
One good example would be a new subdivision of homes, where financing must be arranged for a large number of houses. Having to do this for every single house would amount to a paperwork horror story, but managing it in one large mortgage loan makes the whole process much more efficient and less costly. It is also used in other contexts in the real estate industry, such as when blanket loans are provided to investors for the purpose of refinancing, remodeling, or expansion of entire portfolios of single-family rental properties.
When blanket loans are most beneficial
There are several specific instances when it can be highly advantageous for investors to apply for blanket loans, especially those investors having at least five rental properties or more. Money from a blanket loan can be used to refinance and make desirable improvements, as well as to take advantage of reduced interest rates which may be offered.
In other situations, blanket loans can be used to acquire additional properties whenever market prices make it beneficial to do so. Buy-to-rent loans are often set up for the specific purse purpose of purchasing a number of single-family homes, and then immediately renting them out, which provides security and certainty to the lender.
How to find a lender
It’s very important to find a lender who has had prior experience with arranging blanket loans, since that indicates a willingness to provide funding for single-family homes. Next, it’s a good idea to research a lender’s amortization schedules to find someone who offers lower payments, so that your cash flow can be maintained. It will also be advantageous if you can find a lender who allows for title holding, since that reduces your liability and maintains privacy. You should also check on any partial-release possibilities, in case you should want to sell individual units down the road.
Liberty Commercial Capital offers custom tailored blanket loans to meed the size and scope of your next real estate endeavor. Contact us to learn more today!
23 Feb / 2017
At the beginning of every new year, almost all small business owners take the time to meet with their tax accountants to review business performance of the prior year, and to anticipate any changes for the new year. Tax expectations for 2017 may hold more changes than most years, since a new administration has come into power and new policies are likely to be issued as a result.
New filing deadline
Deadlines for filing your tax returns are the first thing that have changed for 2017. Filing dates for C-Corp entities using form 1120 are being pushed back to April 15 from the previous deadline of March 15. Filing for S-Corp entities using form 1120–S, as well as Partnerships filing on form 1120, have been moved up to March 15 from the previous April 15.
Extensions on tax breaks
Some previously allowed tax breaks will be continued in the coming year, including several important deductions and credits that most businesses should take advantage of. For example, section 179 expensing of business equipment is broadened to include off-the-shelf computer software, and the existing deduction of $500,000 on equipment purchases of less than $2 million, has been made permanent.
Social Security taxes
The cap has been raised on taxable income from $118,500 to $127,200, so that the maximum amount of Social Security tax that any taxpayer would have to pay will rise to $7,886.40 in the coming year. Self-employed persons are still required to pay their normal taxpayer mount, in addition to a matching employer amount.
Corporate tax rate changes
One likely impact of the incoming administration will be to decrease the corporate tax rate, which is now at 35%, but is expected to be reduced to between 15 and 25% for C-Corporations. While this will not affect small businesses per se, it is expected to spur a shift from many small businesses over to the status of C-Corporations.
Affordable Care Act (ACA) changes
Another likely change might be the outright appeal of this act, which would have a significant impact on small business taxes. Because it is not yet clear what the new administration plans to do about the ACA, previous practices should remain in effect, although it is likely that business regulations will be significantly impacted in 2017.