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Tuesday, April 12, 2011

Success Stories!

Building your own business and/or maintaining a franchise is a lot of work. The good news is that with some hard work, determination, and the right type of funding plan for you as an individual, success is within reach! Here are some of our favorite success stories that Capital Edge Funding has enabled:

Nationwide Franchise: A national franchise wanted to roll out some equipment for each franchisee that cost approximately $25,000 to install. They called us because they wanted to get this done quickly and give the franchisees an opportunity to get on board with the new breakfast campaign. We provided a factor for the credit card payments of all franchisees above a 650 credit score and all below a 650 credit score. In addition, we will be administering the finances to these 500 locations who choose to finance the new equipment with us. It will make the financing part the quickest and easiest portion of the project for the franchisee.

Hotel Owner, Ohio: This franchisee was mandated to perform $300,000 in renovations. He had two other hotels with an average monthly credit card volume of $100,000 each. The bank offered to extend his 21 year loan for an additional three years at his current terms. The problem was that the 7.1% loan was only guaranteed for six years and he would have points, appraisal fees and financials to submit on top of paying the additional three years at about $19,000 a month. That was over $700,000 for the 7.1% loan and it would be on his credit report for over two decades. He had very good credit and was able to negotiate a total payment of $372,000 for his $300,000 which he would pay back over the next 12 months from about 10% of his daily credit card receivables from the three hotels. This solution was much less expensive, much less time consuming without disturbing his current lender position and it was complete in a relatively short period so there was no uncertainty beyond the 12 months. In future years he is leaving his bank position in place unburdened with maximum flexibility.


Thursday, December 30, 2010

New Year's Financial Resolutions

To make a resolution and stick to it, the first thing is to prioritize your goals. Select topics from our list below which are the most pertinent to you and your business to get started on making 2011 a better year all around!

1. Create a monthly Budget
Catagorize your monthly expenses, then add them together for a total sum. By catagorizing these expenses, you may see areas where you can afford to make small cutbacks, therefore having extra money for other expenses such as marketing, or for a 'financial emergency fund' (extra money you should always have set aside for your business should something unexpected arise). If you're always on the go, Mint.com is a free online record-keeping and budgeting tool that can help you as well.

2. Eliminate Credit Card Debt
You've heard it time and time again, but that's because it's true: Pay down your credit card debt as quickly as possible to avoid high interest rates and improve your credi score. It will also help you get approved for future loans. Remember, Capital Edge Funding is here to help you find the best rate on your business loan!

3. Know and Improve your Credit Score
There are several ways to find out your credit score for free, the most popular of which are to Equifax, TransUnion, and Experian since they are required to give consumers one free credit report every 12 months. To formally request your free credit report go to AnnualCreditReport.com (you may order three credit reports at the same time, or at different times throughout the year from each company - just make sure you go through AnnualCreditReport.com for each request). Getting rid of credit card debt and making consistent monthly payments on any other loans, is the most obvious way to increase your credit score. Also be wary of any "credit card reward" programs as they are most often found to lead to increased debt (as reported by Consumer Affairs), and try to use 20% or less of your available credit.


4. Insurance
Make sure you and your business are properly insured - enough said! Check out Insure.com for quotes.

5. Do your Taxes Early
Why wait? Get a jump start while everyone else is sleeping off their holiday feasting and New Year's celebrations. Spring is the busiest time of year for most businesses, plus early filers also receive their refunds faster. Get your taxes together by February and you'll have more time and energy to put into your business when things get busy! IRS.gov

Wednesday, December 15, 2010

Know your EBITDA & why it's so important

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization.

It is a word frequently used when companies are trying to assess their true value and just for the purposes of comparing apples to apples.

This measure of earnings is also of interest to a company's creditors, since EBITDA is essentially the income that a company has free for interest payments. Head to InvestorWords.com to read a more elaborate description on EBITDA.


Tuesday, December 14, 2010

Keeping (& Funding!) a Business Home-Base

Whether the business you run is a corporation, restaurant, or even a virtual market, having a home base office-wise increases productivity, which ultimately saves both time and money. With the ease of virtual communication today, it can be easy to waive the option of having a specific physical space from which to operate your business. Even for those who are frequently traveling, having some office space which can act as a home base will keep the details and efficiency of your business streamlined towards success. Conducting meetings in person with employees and customers gives your company a personable quality; for remote conference meetings, the office is still the best place for group conference calls (you can read reviews of a variety of conference call systems here).

Even for restaurant owners, keeping a separate office space - within or outside the restaurant - can help immensely in organizing all the bookkeeping, receipts, etc. Plus, the complicated employee hierarchy along with the typically high turn-over rate within a restaurant means extra paperwork and files as well. Best to keep all of this in a space separate from the bar/kitchen area!

Just remember that whatever your business is, and however frequently you travel, that without an office home base, it is like constantly living in different hotels. Running a 'constantly remote' office with no home base, can increase your overall expenses and make your business suffer.

Let Capital Edge Funding help you begin your venture, and/or expand as your company grows. Our interest is your company's successful future!

Wednesday, December 8, 2010

Building your Business

Whether a start-up company or a well known franchise, every business spends time, money, and effort building it's brand. First, keep in mind that a company's brand and reputation are interchangeable assets, and now a flood of social media has opened more doors than ever to make valuable impressions.

The Business Marketing Association of Phoenix explores what media outlets are doing to adjust to this change - significant steps other businesses can mirror as well. The Forrester Research Community has some interesting views, as does About.com's Marketing section. As important as online marketing and ads are, big companies with long track records still have a touch that keeps it personal (and for whatever it means to your company - that most people still like the feel of turning a page in a book). Successful branding rides a fine line between keeping a feeling of uniqueness alive in your product, being able to satisfy customers, and growing your business simultaneously. Innovation and brand marketing are two key strategies straight from the list of a certain ubiquitous coffee house that escalated it's commercial rise over the past 30 years. When it comes to branding, the new wave of social media is a significant one to learn how to ride, but don't forget that strategy is the core of any successful enterprise.

Friday, December 3, 2010

History of Franchising & More:


Interestingly enough, the etymology of the actual word "franchise" stems from French origins, wherein it was defined as holding particular privileges. In the middle ages, these privileges were bestowed upon select members of society to run certain fairs, markets, and industries. See a more detailed history of franchise development here.

Moving foward with buying a franchise is a great investment that can provide one with much greater security than a single small business start-up. Read more about your options in buying a franchise here.

Tuesday, November 30, 2010

Know your Bank Terms

Yes, actually the terms - words - themselves!

It pays to know all those abbreviations and previously unfamiliar merchant/bank terms whether you are looking for a loan, thinking of investing, or just getting into the funding business yourself. Here's a great glossary for the most commonly referred to terms in all that fine print.