11 ideas when negotiating a business loan
Article Abstract:
A business owner can have an effective dealing with a specific lender depending on the corporation's present balance sheet, historical and current income statements, collateral and the amount that is needed in financing. Since the specific capital source has its own terms and conditions, business owners are advised to follow some negotiating tips that can benefit them and what to prevent. The terms and conditions to prevent include pledge of stock, restrictions on payments to owners and prepayment of the loan.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
11 ideas when negotiating a business loan
Article Abstract:
Business owners must follow certain guidelines when getting loans. They must not pledge their stock in the company as collateral, secure their right to pay off the loan without penalty if the negative covenants limit the management prerogatives in important areas, avail of 'exception periods' and trade off a debt-to-net worth test for another test. Business owners must also maintain a basic net working capital level and define what 'substantial' means in the contract.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
How to use discounts to lower value of your business
Article Abstract:
Business owners can use discounts to lower the value of their business stocks so that they will pay lower taxes. Discounts are given because ownership is illiquid, carries no dividend, can be restricted from sale, has greater risks compared to other stocks and may present a minority position. A $1 million business with an 80% ownership position could be discounted by as much as $240,000 at a 30% discount.
Publication Name: The Business Owner
Subject: Business, general
ISSN: 0190-4914
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Intuitive decision making. How to resolve board disputes more effectively
- Abstracts: Channel coordination and quantity discounts. Managing supply chain demand variability with scheduled ordering policies
- Abstracts: How to plan for business succession, move assets to family, lower taxes. Your family: How to plan wisely, save taxes, and protect the assets you give them
- Abstracts: Sparks fly at falling Marks. Lend Lease wants to be top of the shops. A beauty business with more hope than hype
- Abstracts: Identifying the vital few using the European Foundation for Quality Management model. Quality management in real estate