Categories
Manage Finance

Quick Guide On Financing Your Business

Even the most attractive and lucrative business opportunity can be unsuccessful if you have insufficient business financing to continue on with the deal. This is really important in business acquisition since unique opportunities do not come very often. Therefore, finding business purchase financing on time is the key to scoring on such business deals. It is important to be adequately prepared when planning to buy a business establishment.

Finding funding for your prospect business Business acquisition financing generally comes in two methods:

1. Debt financing – You will rely on an outside source to acquire financing for your business.

2. Equity financing – You will sell shares or stocks of your business to some investors.

It is difficult to get approved on business acquisition financing through either method because credit market conditions are tight and investors are wary about providing financing. However, if you were a knowledgeable entrepreneur, it would be a lot easier for you to get past this ordeal.

There are few key aspects that you need to know if you want to use the first method to borrow a certain amount of money. In this approach, you will demonstrate your business skills and knowledge to prospective banks and lenders. The bank or the lender will most likely ask for detailed information on the business you intend to purchase, your collateral for the loan, and the means for you to pay the money back.

In securing business acquisition financing, there are some things you need to remember. One is to have a backup plan. It is better if you get approved by as many banks and lenders as possible, for these will be handy in situations when one backs out. Another consideration is to acquire adequate business purchase financing that covers operating costs. It is highly recommended to have a plan B in case the profit decreases. Lastly, see to it that you have a detailed business plan. Remember that this is one of the many bases of banks and lenders in approving your business financing loan.

The second option is equity financing, wherein you would agree to sell shares of your business to other investors. In choosing this option, you don’t have to worry about the risks in repaying debt, but you would be giving up partial ownership and control of your business.

Keys to successful business acquisition financing The most helpful way to secure business financing is to become inventive. You may try the easiest approach of all, which is to secure seller financing. In this deal, the seller will have to wait for a certain period of time to be fully paid off. The seller will also most likely offer assistance in ensuring your business’s profitability. However, not all sellers are willing to offer this type of setup. Even if you do find a willing seller, the asking price can go as high as 5 to 25 percent.

If a bank denies your loan request, you can try to apply for a small business administration loan or SBA loan. This type of loan offers good terms and requirements, but you won’t be getting additional funds from any other source.

There are many other possibilities to explore in securing financing for your business. Try asking for help from your family and friends to fund your business. You may also opt to draw money from your 401(k) plan. Contacting franchise financing companies is also another possible option. With a lot of choices available for you, acquiring financing for business is not difficult after all, don’t you agree?

Categories
Franchises

Puspita Martha prettiest

Puspita Martha provides franchise in Indonesia in International Beauty School Industry. They already partnered with Pivot Point international, Cidesco International, and CIBTAC.

Now Pivot Point that headquarter in Chicago USA, Cidesco in Zurich, Zwitzerland and CIBTAC di London, already come to Indonesia from Puspita Martha.

You can open business in beauty school industry with them. You also have an opportunity to develop the distribution channel for Pivot Point international products and other Martha Tilaar Group Products.

Address : Jl. KH Wahid Hasyim 19-21, Jakarta, Indonesia

Estimated Investment : Above Rp. 1 Billion

Categories
Entrepreneurs

History of BI (Bank Indonesia)

Institutional

Institutional History of Bank Indonesia began the enforcement of Law (UU) No.. 11/1953 on the Determination of the Basic Law of Bank Indonesia on July 1, 1953. In performing his duties as a central bank, Bank Indonesia is led by the Monetary Board, the Board of Directors and Advisory Board. In the hands of the Monetary Board is, monetary policy is set, although responsibility rests with the government. After being merged into a single bank, in the early days of the new order, the basis of Bank Indonesia changed through Law no. 13/1968 on the Central Bank. Since then, Bank Indonesia serves as the central bank and also assist the government in development with a policy established by the government with the help of the Monetary Board. Thus, Bank Indonesia is no longer led by the Monetary Board. Once the order has passed, Bank Indonesia can achieve independence through Law no. 23/1999 on Bank Indonesia as amended by Law no. 3/2004. Since then, Bank Indonesia has a special position in the structure of the state as an independent state institution and freedom from government interference and / or other parties. However, in conducting monetary policy in a sustainable, consistent, and transparent, Bank Indonesia must also consider the general policy of the government in the economy.

Monetary

After the founding of Bank Indonesia, Indonesia’s monetary policy is generally determined by the Monetary Board and the government responsible for it. Given the poor post-war economy, which was first adopted in the monetary sector are efforts to improve foreign exchange reserves through export and import activities. In the period of guided economy, deficit financing of public finance spending continues to increase, primarily to finance the government’s political project. The rate of inflation continued to soar that monetary tightening was conducted twice, namely in 1959 and 1965. Regardless of the period, the government entered a period of economic recovery through stabilization and rehabilitation program which is then forwarded to the deregulation of financial and monetary fields in the early 1980′s. Amid the ebb and flow of the economy, was born the various economic policy package that aims to strengthen the structure of the Indonesian economy.

Starting mid-1997, the monetary crisis hit Indonesia. The rupiah weakened, threatened jammed payment system, and a lot of foreign debt unresolved. Various steps taken, ranging from monetary tightening to some IMF recovery program obtained through a few of the Letter of Intent (LoI) in 1998. But ultimately bleak future can be reached. The economy is getting better as a stable political conditions at the time of reform. Accordingly, the year 1999 was a milestone for the issuance of Bank Indonesia Law. 23/1999 on Bank Indonesia as amended by Law No.. 3/2004. In this law, Bank Indonesia established as an independent state higher institutions in carrying out duties and responsibilities. As per the law, Bank Indonesia is required to set the inflation target to be achieved as a basis for planning and monetary control. In addition, successful foreign debt rescheduled and cooperation with the IMF ended through Post Program Monitoring (PPM) in 2004.

Banking

When he returned to the Unitary State of the Republic of Indonesia (Republic of Indonesia) on August 17, 1950, Indonesia’s economic structure is still dominated by the colonial structure. Foreign banks still dominate the activities of national banks, while the role of the national banks in the country are still too small. Until the eve of the birth of Bank Indonesia in 1953, the supervision and guidance of the banks have not been established. De Javasche Bank was the first foreign bank was nationalized and later transformed into BI as the central bank of Indonesia. A few years later, along with the warming relations between Indonesia and the Netherlands, carried out the nationalization of the banks owned by the Dutch. Next, guided economic system has brought state-owned banks to a single bank systems do not last long. The new order came with a change in banking with the issuance of Law No.. 14/1967 on the Principles of Banking. From then on, the banking system is in system integrity and unity of the leadership, through supervision and guidance of Bank Indonesia. Bank Indonesia with government support, in the period 1971-1972 implement policies curbing private banks with the goal of reducing the number of private banks, because there are too many and mostly consists of small banks were very weak in capital and management. In addition, Bank Indonesia also provide substantial funds through Bank Indonesia Liquidity Credit (KLBI) programs for Small Investment Credit (KIK) / Permanent Working Capital (KMKP), Credit Investment (KI), Student Loans Indonesia (KMI) , Credit Cooperatives (Kakop), Teacher Professional Credit (KPG), and so on. With this move, the central bank has taken the position as the largest provider of funds for economic development outside the state budget.

Indonesia’s banking industry has been the industry’s nearly all aspects of its activities regulated by the government and central bank. Regulation is causing the lack of banking initiatives. Year 1983 is the starting point BI gives freedom to banks to set interest rates, both credit and savings and deposits. The goal is to establish a sound banking system, efficient, and resilient. The next policy is the turning point of the government’s policy in curbing banking in 1971-1972 with the issuance of Banking Deregulation Policy Package 1988 (Pakto 88), the ease of granting new bank licenses, permits the opening of a branch office, and the establishment of rural banks (BPR).

In the next period, national banks began to face the growing problem of bad credit. This is in line with the increase in lending by banks, especially for the property sector. Economic conditions began to heat up and the inflation rate began to rise.

When the financial crisis struck in 1997, the structure of the Indonesian banking mess. On 1 November 1997, liquidating government policy issued 16 private banks. This has led to panic in the community. Therefore, Bank Indonesia fell to resolve the situation with the Bank Indonesia Liquidity Assistance (BLBI) based on policies set by the government. In addition, the restructuring measures implemented by Bank Indonesia and the government.

Payment System

The payment system in Indonesia is divided into two, namely the system of cash and non-cash payments. In Law (UU) No.. 11/1953 stipulated that the Bank Indonesia (BI) only issue banknotes to the value of five dollars to the top, while the government is authorized to issue banknotes and coins in denominations under five dollars. The first paper money was issued by BI in 1952 marked bills in seven fractions. Furthermore, based on Law no. 13/1968, BI has the sole right to issue banknotes and coins as legal tender in all the fractions. Since then, the government no longer issue paper money and coins. The first coins issued by the Bank are emissions in 1970. In the era of the 1990s, the central bank issued money in large denominations of Rp 20,000 (1992), Rp 50,000 (1993) and $ 100,000 (1999). This was done in order to meet the needs of large denomination along with ongoing economic development at that time.

Meanwhile, in the field of non-cash payments, the central bank has initiated steps to establish itself as the central office of the calculation of the end of 1954. As the central bank, since the beginning of BI has been working hard in the monitoring and restructuring the payment system demand deposits. BI also keep trying to perfect giral various payment system within the country and abroad. In the period from 1980 to the 1990s, economic growth is improving and the volume of non-cash payment transactions have also increased. Therefore, the Bank began to use the system more effective and sophisticated in the settlement of non-cash payment transactions. Various systems such as Semi Automated Clearing Local (SOKL) on the basis of personal computers and the Inter Funds Transfer System and the Integrated Automated Office (MIRACULOUS) with a paperless transaction system to be developed and refined. Finally, BI systems have created a variety of electronic devices such as BI-LINE, Jakarta Electronic Clearing System (SKEJ), Real Time Gross Settlement (RTGS), Information Systems Clearing Distance (SIKJJ), clearing slips between the working area (Intercity clearing), and scriptless Securities Settlement System (S4), which further facilitate the implementation of non-cash payments in Indonesia.

Governor of Bank Indonesia (1953 – present)
Mr. Sjafruddin Prawiranegara Term of Office: 1953 – 1958
Mr. Judge Loekman Term of Office: 1958 – 1959
Mr. Soetikno Slamet Term of Office: 1959 – 1960
Mr. Soemarno Term of Office: 1960 – 1963
T. Joseph Young In Term: 1963 – 1966
Prawiro Term of Office: 1966 – 1973
Rachmat Saleh Term of Office: 1973 – 1983
Arifin Siregar Term of Office: 1983 – 1988
Adrianus Mooy Term of Office: 1988 – 1993
J. Soedradjad Djiwandono Term of Office: 1993 – 1998
Sjahril Sabirin Term of Office: 1998 – 2003
Burhanuddin Abdullah Term of Office: 2003 – present

Categories
Franchises

Plains and Prints

Plains and Prints offers Franchise / business opportunity in Indonesia in Retail Industry, especially in Women’s Apparel Products. Plains & Prints is an apparel boutique carrying casual to smart casual apparel and accessories for women. Has 31 company-owned and 23 franchised stores in the Philippines. Awarded Outstanding Filipino Retailer in 2007 and 2008.

Plains ad Prints is operated under Raffco International Trading Corp, headed by the husband and wife team, Erickson and Roxanne Farillas. The first Plains and Prints outlet was a mere 11 square meter space in Greenhills, Ortigas, a big gamble for both of the owners as they take their first step into the retail industry fresh from college.

With Plains and Prints core values to adhere and provide only the best fabrics, high quality products, and stylish designs, resulted to the growing clientele and patronage of the brand.

Plains and Prints specialized in woven tops and dresses that utilize embellishments such as embroidery, ruffles, smocking, pleats, applique, die-cutting, laser printing and crochet. Plains and Prints looking for franchisees in Singapore, Thailand, Malaysia, and Indonesia.

Market share comprises mostly of young professional women ages 22 and above, fashionably hip moms, and stylish women who love to wear clothes with a statement.

Franchise Investment
– Initial Investment : Rp. 1 – 1.6 Billion+
– Franchise Fee : Rp. 200 Million+

Categories
Finance Services

Wade Cook – Feds Finally Nail Financial Guru and His Wife on IRS Tax Evasion Charges

It came as absolutely no surprise to me that so-called financial guru Wade Cook and his wife Laura were recently convicted of income tax evasion and sentenced to jail, according to an Associated Press report.

Wade Cook became really annoying some years ago by seeking to peddle his financial advice on his theory and accompanying books, tapes, seminars and associated crap to me and a lot of other unsuspecting potential investors.

Crap is the right choice of word as his financial advice has proven worthless. I never bought his stuff but thousands of other investors did.

Cook was nothing more or less than a cab driver who decided to get rich by preying on people looking for an easy solution to becoming rich.

 

He wrote three get-rich-quick books on his “meter-drop” theory of investing: Wall Street Money Machine, Wealth 101 and Business by the Bible. Is it not amazing how hucksters always want God to endorse their business, products and shenanigans?

Cook conducted hundreds of seminars in the 1990s on asset protection, stock market investing, real estate acquisition and avoidance of income tax.

He was so good at the avoidance of income tax issue that he will now spend more than 7 years in prison for income tax evasion by defrauding the Internal Revenue Service.

U. S. District Judge Thomas Zilly of the federal court in Seattle ordered Cook to pay $3.75 million in back taxes on roughly $9.5 million of underreported income generated by sales of Cook’s financial advice books, tapes and seminars.

It is one thing to render a financial judgment and another to collect it. It was not reported whether Cook ponied up the $3.75 million.

I do not know if Cook is penniless today, filed for personal bankruptcy, buried what money he had, placed his stash in a Swiss bank account or has millions in a petty cash account to pay his $3.75 million judgment for tax evasion.

I do know that he and his wife are dishonest, not to be trusted, will knowingly lie, cheat and steal to get ahead in this world, and know little about any kind of investing worth talking about. I knew all of that in the early 1990s when they started.

They apparently made millions selling their story to unsuspecting buyers and then not paying taxes on some of their revenue. Some pundits estimated Cook’s net worth at more than $200 million when he was flying high.

He was convicted in February 2007 for tax evasion, filing false returns and obstructing justice. The jury was deadlocked on all counts against his wife Laura who kept his books.

In May 2007 she pleaded guilty to obstruction of justice rather than face a new trial. She was sentenced to 1.5 years in prison. Laura Cook admitted that she created documents to evade taxes on income she and her husband received between 1998 and 2000.

The Associated Press reported that the Cooks said that they had loaned themselves money from a trust that was supposed to become a gift to the Church of Jesus Christ of Latter-day Saints.

Government lawyers said that the couple never intended to repay the money, thus it was taxable income rather than loans.

Cook’s lawyers argued that they were unable to repay the loans mostly because of the stock market collapse in 2001. Cook was apparently such a brilliant financial guru that he lost his fortune in a stock market collapse.

So much for Wade Cook’s theories on investing for profit and becoming rich in the process.

Cook shut down his operations in February 2003, a month after his publicly traded company-Wade Cook Financial Corporation of Tukwila (WA)-sought Chapter 11 bankruptcy protection.

Wade Cook and his wife Laura are only one of hundreds of hucksters who have traveled the country selling their crap (get-rich books, tapes and seminars) to unsuspecting investors.

Categories
Business Benefits

Finance and Business Benefits For a Limited Partner

You might want to invest in a business but do not want to deal with the daily business management that comes along with owning a company. You might want to consider investing in a company as a limited partner. In this way the general partner will deal with the daily running of the company and you do not have to, while you will enjoy the benefits of the profits.

Explanation of a Limited Partnership

A limited partnership is when somebody provides the capitol that a business needs but has limited control. The amount of control the limited partner has is decided upon either by a contract or the limited partnerships general rules. They can’t be held liable personally for any transaction that take place within the business. They also can’t lose any personal property by law if the corporation needs funds.

The limited partner usually gets to vote at different types of business meetings, and also has the right to vote a general partner out if the majority votes to as well. Even if the partnerships general partners change the limited partnership stays. Usually all profits are divided equally between all partners unless stipulated otherwise. All losses or profits must be reported on their tax returns, whether its a personal or company return. Limited partnerships are non tax entities, so before the income reaches the limited partner it is only taxed one time.

Limited Partnership Could be the Right Choice for You

When dealing in finance and business this could be a right choice for you if you want the convenience of not dealing with the daily running of a company and still have an income coming in with your investment.

If you have a partner that wants to go into business but that does not want the responsibilities of the day-to-day business dealings, this could be right for you and them. As long as the company is effectively managed then the limited partners funds should not be in jeopardy. The limited partnership stays in place as long as there is a general partner.

Categories
Investments

Beware the Latest Investing and Trading Traps

While most of us, concerned investors that is, have been glued to CNBC and other screens for information and explanation on what is happening with the markets, our 401(k) and IRA, there has been a surge in activity on the part of the brokerage houses promoting trading tools and new offerings. Investors BEWARE! In a bear market like this one, brokerages are naturally playing the investors’ fear and disappointment by offering “better” and “more sophisticated” tools, concealing their intent for more risky and expensive trades. Most of those tools are either screening, back testing tools or more advance trading methods, via futures and options. Don’t fall for the trap and do your homework first!

Let me start with the screening. After checking over ten paid and free screening tools I can summaries that they give you so many options that will definitely confuse you more than help. And what good does it do if you have the tools but do not have the knowledge on how and what to search on? The search education offered is rudimentary teaching you to execute a search on low P/E, good dividend yielding, high growth companies. So the screener pulls two unknown firms that fit the screen. Would you invest in them without spending time to read the financials, annual report, message boards and the info on the internet? Well, no, so then you are back to square zero. With or without a screener you are doing the homework. However, if you invest blindly and get lucky, do it a second time, lose your investment in its entirety, you will forget about the screener forever.

What about the back testing programs? All sounds good, until you realize that the past does not predicts the future. Imagine that you are sitting comfortably in front of your computer in August 2008. You know that there has been this financial crisis looming, but the Fed is dealing with it. Cool! You decide to back test some strategy, be it in options, futures or any other instrument. Most probably you will be seeing a bull bias depending on how far back you go to source your data in the back tester. Well, guess what? The back tester did not hold information with such dare consequences that would come in the two months ahead and you will make information based on the wrong inputs. The back testers and statistics behind such programs have played a nasty trick to all these sophisticated investors as well, including financial PhD trying to outsmart the market via statistical arbitrage, black box, algorithmic trading and so on and so forth. What the back testing will do to an investor is set him her for a “Black Swan” event, that is unknown unknown, to lose trillions of dollars as is happening right now.

 

And last, beware the newly pitched products. Options and futures I mean. The majority of the marketed products and brokerage houses offer you many and better ways to LOSE big! And they charge way too much for what they offer. I have signed up and used over five brokerage houses to find out that just one of them that I have been customer of does bring value. Not only in fair and disclosed commissions, but also in education and care of their customer base they provide. Others make you feel comfortable and cozy and charge four times what you expected to pay. Creative marketing and presentation I call this.

This post is not to bash the brokerages direct, but to point out more about the traps they are setting up to the regular and scared investor. Do not fall for them! Do your homework, ask questions and start small to figure out where the trick is. Good trading and investing and wish all the best!

Categories
Manage Finance

Financing Your Business When You Are Out of Options

One of the worst nightmares for a business owner is not being able to get the financing they need for their business. For many owners, the need for financing occurs when they have a cash flow emergency. Unfortunately, trying to get business financing during a cash flow emergency is very difficult.

Most cash flow emergencies happen due to the difference in timing between income and expenses. Often, expenses happen first. Income then follows. Due to this, companies need to have a cash reserve to handle expenses. However, business owners sometimes overextend themselves and get into trouble.

For example, most companies sell their products/services to other businesses on credit because large clients demand it. So companies give their client 30, 40 or 60 days to pay their invoices. However, the company itself must still meet its obligations while it waits to get paid. It has to pay suppliers. It has to pay rent. And most importantly, it must meet payroll. Sooner or later, the company may face an unexpected expense and run into trouble. It won’t be able to wait until an invoice gets paid. That is when the problems start.

Asking clients to pay sooner seldom works. Few, if any, will agree. Most clients pay their invoices in 30 to 60 days because that is how they keep their own cash flow healthy. An alternative is to look for business financing. Most business owners will focus on trying to get a business loan. The problem is that business loans are hard to get – especially if the business is in trouble. The lending institution will usually need to see audited financial statements, strong assets and excellent growth prospects. Few companies with cash flow problems meet this criteria.

A better alternative may be invoice financing. Invoice financing is specifically designed to strengthen cash flow by providing interim financing until invoices are paid. It provides the financing quickly, usually a few days after invoicing, enabling you to cover your operating expenses.

One important advantage of invoice financing is that the financing company uses the commercial credit of your client (who is paying the invoice) as part of their decision process. This makes it a viable solution for companies whose major strength is that they work with creditworthy clients. Additionally, most invoice financing lines can be setup in around a week, making it an ideal situation for companies that need funding quickly to cover an emergency.

Categories
Franchises

Ayam Bakar Wong Solo

Ayam Bakar Wong Solo provides Franchise in Restaurant industry, especially at Chicken Restaurant. They already have many outlets / branches around many cities in Indonesia.

You can contact them about detailed franchise opportunities they provided. They have good choice of franchise plan that you can choose.

Wong Solo give Franchise license for 10 years with the package :
1. Package A Rp. 1 billion with 200 seats capacity
2. Package B Rp. 800 Million with 150 seats capacity
3. Package C Rp. 600 Million with 125 seats capacity
4. Package D Rp. 400 Million with around 80 seats capacity
5. Package E Rp. 50 Million (small outlet)

Categories
Manage Finance

Is The Wrong Type of Equipment Finance Company Bad For (Business) Health?

They are all the same, aren’t they? Absolutely, positively… not! We are of course talking about the equipment finance company industry in Canada and how your selection of the right partner can determine which advantages and disadvantages you can enjoy… or suffer with. We prefer positive advantages that your business can benefit with, not Canadian business financing decisions that you will suffer via the wrong choice of a lease partner for your specific needs.

Ok, so what in the heck are we talking about? Essentially there are four types of asset finance partners in the equipment leasing industry in Canada. And you thought that a lease finance company was a lease finance company!

The first type of partner is the ‘captive’ – no you are not the captive! The term refers simply to finance companies that are owned and literally situated within various manufacturing firms. When clients ask us about lease finance options and they mention specific equipment we are always reminding them to ensure they determine if the manufacturer captive finance firm offers asset financing. If they do we can assure you it is probably the best financial terms you will be able to come up with, as well as a better chance for overall approval re rate, structure and other general terms. Why is that?

It’s to do with motivation – the captive finance firm is motivated to finance and promote the sale of products using financial options such as leasing to get the products out to the marketplace. Want to know a secret that should surprise most business owners and financial managers? It’s simply that captive finance firms in a competing industry will finance their competitor’s products, often at better rates, terms and structures. That is simply because the financial transaction will probably give the competing mfr a foothold into your business to promote and sell their own products. So don’t think that a great firm such as IBM CREDIT CORP. is the only firm that will finance your products you purchase through them. Others will also!

The second main group of asset finance firms in Canada is our chartered banks – Two major banks have leasing arms that are very significant, others employ lease finance to varying degrees. Our real only comment here is that the credit bar is high and more often than not you have to be a customer of the bank to enjoy the great lease and finance structures they offer.

The third main category of the Canadian equipment leasing company market is actually the largest and most robust. It also requires the maximum amount of knowledge and navigation by Canadian business owners and financial managers. This is the Independent lease finance market, where there are tens of firms that offer lease financing based on various criteria of asset size, credit quality, geographical preference, industry specialization, etc, etc, etc.

You have a great choice with our category 3 partners, the independent finance companies. You can spend tens or hundreds of hours determining their credit criteria, additional collateral they require, the size of deals they do, the different lease structures they offer, or… alternatively.. use our final category for lease provider, the independent lease finance advisor who are knowledgeable intermediaries who know the market, have a strong reputation with lease providers, and can match the advantages you seek in an equipment finance transaction to the right provider. Subtle nuances in your overall lease structure, depending on the size of your transaction, can save you thousands of dollars and untold grief at the end of the term of your lease.

So that’s your Canadian lease market overview. Speak to a trusted, credible and experienced Canadian business financing advisor who can successful guide you through the asset finance maze.