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by Esthr

Dan Gilmartin on the Michigan Prosperity Agenda Radio Show on the Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Think of business insurance as the copper solder that fuses a plumbing joint together; if the joint leaks, there can be major ramifications. The same holds true with business insurance; if you don’t have the coverage that a backflow prevention contractor business really needs – you’ll watch those profits flow right down the drain. You personally cannot control or eliminate every potential risk that threatens your livelihood, but business insurance can provide the added protection against these risks … if you carry the right kinds.

Choosing the right policy with all of the appropriate coverages can be a challenge when you are a backflow contractor/technician. Bob Smart, commercial lines director of Compass Insurance in Highlands Ranch, Colorado, states: “Everybody wants to lump each backflow contractor/tester/tech into the plumbing category, when in fact they are not all plumbers; that was my point of contention with the insurance carriers. I explained to Hartford [insurance carrier] that the backflow techs test the backflow apparatus – then they make a report on the valve they tested or they repair or replace the valve. They are not going in and tearing out water lines or sewer lines.

“What Hartford did…was to cover these backflow techs under an engineering class because it’s obviously more about reports and paperwork,” he continues. “I had over 30 backflow techs insured through Hartford under this engineering class and never had one claim.” Hartford has since modified this particular class of coverage with regards to backflow techs and currently does not cover backflow techs that work on fire lines, i.e., sprinkler systems, suppression systems; supplementary coverage is required or a different class should be selected.

Find an agent who understands your business.

A key component in selecting insurance coverage for a backflow contractor/technician/tester is to make sure that your agent fully understands what it is that you do and don’t do in the course of your work day. “If one agent wants to place you in the plumber class – which can cost upwards of five times the annual premium of let’s say an engineer class – find an agent who is willing to listen and really understand your business, “ says Smart. “If all you do is test backflow apparatus, then you shouldn’t be placed in a plumber class.”

Regrettably, insuring your business is not as simple as insuring your car. Because this business is unique, you’ll need to draft a package of insurance that meets your business needs and provides the level of protection you’re comfortable with.

Your first decision is to decide which types of insurance your business needs. Two types that all businesses need are property and liability insurance.

Property and Casualty Coverage

Property insurance protects the assets your business owns, including the building and equipment, from destruction or damage. Even if you run your business out of your home, you’ll need to protect your business assets with separate property insurance; your homeowner’s policy will not cover business equipment. There are two general types of property and casualty coverage: All Risk Coverage and Named Perils Coverage. As the names imply, “All Risk” will cover you for almost any type of loss whereas “named peril” coverage will only cover you for specific named causes of loss, such as fire. You need all perils coverage. Even with so called all peril coverage there will be exclusions. Make sure and review the exclusions in the policy. If there are exclusions in the policy that are important to you, you may want to try another insurance company or purchase specific coverage for the excluded situations.

Property insurance is also written as either replacement cost or actual cash value. The first will cover the actual cost necessary to replace the lost property (less the deductible). The actual cash value policy will only pay you the depreciated value of the property — almost never enough to replace what you have lost. Unless the cost is prohibitive, you should purchase replacement cost coverage. Even with replacement cost coverage you will need to make sure you have purchased a high enough limit. If your building and contents are worth .5 million and you only have million in insurance, a total loss would still leave you 0 thousand in the hole.

To determine how much property insurance you’ll need, create an itemized list of your business’ assets and their individual dollar values. Then decide which assets you actually want to insure and for what value, which will determine the insurance premium. In some cases, you may decide against insuring a particular asset, because it just doesn’t warrant the cost of the premium. In other cases, the premium may be well worth paying.

General Liability

Liability insurance is the other kind of insurance no business should be without. General liability is just that — very general in nature and protects your business from liability arising from negligence on your part that may cause injury to others, such as a customer or employee. It also protects your company if someone is injured as a result of using your service. When you consider that the legal expenses, settlement or judgment expenses of a single lawsuit could drive your business into bankruptcy, you’ll see why this kind of insurance is considered a “must-have”. Also check whether or not your general liability insurance policy also covers product liability for the valves you may be replacing. If not, you’ll want to add this type of specific liability insurance to your package. You should include “Errors and Omissions” coverage which protects you in the event you are sued as a result of a mistake in your work.

What limits of General Liability should you purchase? According to the Insurance Industry at-large, the absolute minimum in this day and age should be million; most businesses should consider increasing this to or million. The good news is that insurance is not priced on a straight line basis. Since smaller claims are much more likely than large ones, the first million in coverage will cost the most; an additional to million will not cost double or triple the amount.

Different types of liability coverage have developed over the years do address specific business needs. When buying a liability policy, you should be aware that there are two types of coverage, occurrence coverage and claims-made coverage. Occurrence coverage is more expensive but covers you based on when the loss happened, even if it was many years ago. Claims-made coverage only covers you while the policy is in force and the claim is made. With occurrence coverage, as long as you always have some policy in force, you will not have gaps in coverage. With a claims-made policy, it is possible to have gaps when you have not coverage in force.

Commercial Auto Coverage

If you use any vehicles in your business, you need commercial auto coverage. Personal auto policies generally exclude coverage if the vehicle is used in business; be sure to read your policy or ask your agent. Otherwise, vehicles used in business need business auto coverage. The good news is that commercial auto coverage is usually very competitive and can even be cheaper in some cases than personal auto coverage. As is the case with General Liability, you should purchase at least million in limits.

Worker’s Compensation

If you are a backflow contractor that employs other backflow techs in your business, Worker’s Compensation is insurance you will want to carry. It is surprising that this is often the most misunderstood business insurance coverage since it covers exactly what it says. This coverage reimburses workers who are injured on the job for lost wages, medical and rehabilitation costs. It is required by law in virtually every state. Generally, there are two aspects of this coverage: the first covers the lost wages and medical costs of the injured employee; the second covers the employer’s liability should the injured employee or his family decide to sue. In most states the worker’s compensation system is the sole remedy for an injured worker. As a small business owner you will likely have the option of excluding yourself from worker’s compensation coverage in exchange for a reduction in your premium. Weigh this option carefully in light of your personal medical insurance, which may have an exclusion for job-related injuries.

Business Interruption Insurance

Additionally there is insurance business owners may also want to purchase to protect their businesses from incurring the kinds of losses that can close their doors: Hurricane Katrina is just one example of an unforeseen natural disaster that could force you to suspend your business operations; floods, tornadoes, and wild fires are other examples. Or, on a more commonplace level, your business could be the victim of vandalism or theft. Business Interruption insurance protects you from the loss of revenue incurred when you’re forced to close down. It usually has an interesting deductible based on the number of days you are out of business rather than a dollar amount and will generally only kick in after your business has been down X number of days. The premium for this coverage will be based on your business income and reimbursement will be made according to your average of income.

Umbrella Insurance

Is it actually possible for you to buy an insurance policy that can save you money on other insurance policies? It is and an umbrella policy is a great example. An umbrella policy is a type of liability coverage that protects you if there is a judgment against you that is larger than your limits of coverage in your General Liability or Commercial Auto policy. The good news is that since the umbrella policy is secondary, the premium can be very inexpensive. What is even better, it may be possible for you to lower your limits on your General Liability or auto policy to something less than million, purchase a to million umbrella policy and save money overall.

Disability Insurance

Since you’re a business owner, you should also carry some kind of disability insurance. There are various kinds of disability insurance available that are tailored to the needs of business owners. All of them involve paying premiums now to cover your lost income if you become disabled or unable to carry on your business. If your business is dependent upon the expertise or knowledge of particular people in your company, you should also consider key person insurance. This type of plan helps to compensate a business for financial losses due to the death or long term disability of a key person. The insurance provides additional funds to the business until the key person can be replaced, or until he or she returns to work.

Business Owner’s Policy

Properly covering your business is a complex task, involving multiple policies each of which has its own limits and exclusions. Many small business owners can satisfy many of these through a package policy known as a Business Owner’s Policy or BOP. Often the BOP policy is priced very competitively and allows some level of customization through purchasing of additional limits and coverages. It is only available for businesses up to a certain size – ideal for a small backflow contractor — and varies from carrier to carrier. You should ask your agent.

Reading an insurance policy contract can be a daunting task. Their structure can be very confusing and they are loaded with special definitions. Despite this, it is critical that you understand your coverages; your agent can help. However, when all is said and done, just like everything else in your business, the final responsibility rests with you, the owner.

Being a successful business person means being able to anticipate events and plan for the future. Business insurance is one way of ensuring that you’re in control of your future rather than being controlled by it. Unfortunately, there is no generic plan that will meet every small business person’s needs. You’ll need to shop around, just as you would for any product, to get the business insurance that’s most suited to you as a backflow contractor.

Disclaimer

This article is intended to provide general information on commercial insurance for educational purposes only. The material here is not intended to provide specific recommendations for any individual business or type of business. Insurance is regulated in each state by that state’s Department of Insurance. Only a licensed Insurance Agent or Insurance Broker in your state is qualified to provide you with advice on your specific business insurance needs.

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Joe Borgstrom on the Michigan Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

According to the latest Insolvency Service figures for England and Wales published on 1st May 09, nearly 5000 companies went into liquidation in the first quarter of 2009. This figure is over 50% higher than the same quarter of 2008. Clearly the global recession together with the lack of available credit due to the credit crunch, is having a significant downward effect on business activity. Many analysts believe that the recession will continue until the end of 2009 at least and that its effects will continue to be felt well into 2010.

With increasing numbers of businesses finding themselves in serious trouble, more and more company directors and shareholders are faced with a decision whether to invest more of their own funds into the business to allow trading to continue. Even if such funds can be made available, they are best spend helping to develop and improve the current business model – e.g. on advertising, marketing, investment in plant etc. However, all too often the money is likely to be swallowed up paying for legacy debts. With this reality, potential investors are all the more likely to decide that the further investment is not sensible and the better option is to call it a day and allow the business to be wound up.

Clearly in the current economic climate, the focus from Government down is to promote trade and growth rather than business failure. As such, it is important to consider how businesses can be preserved and new investment can be focused on giving a troubled business a new lease of life. The process of business Phoenixing is widely regarded as a practical method of achieving this goal.

Phoenixing (also known as Pre-Packing) is the process by which the sound elements of a failing business can be packaged up and purchased by a new company. The new company then starts to trade in the same business space but without the burden of legacy debts and onerous or unwanted property or leases. As a result, investment funds are targeted specifically at investing in the growth of the business giving it the best chance of success.

The Phoenix process is relatively straight forward. Firstly the assets of a business including any good will are properly valued. A new company is formed and investment funds are deposited within the new business. A Sale and Purchase agreement is then drawn up detailing the assets of the old business and the amount required to purchase them based on the valuation. The old company is then liquidated. Immediately or shortly after the liquidation, the Administrator then effects the sale of the business assets to the new company as per the Sale and Purchase agreement. The proceeds of the sale are distributed to the old company’s creditors.

Much media comment has been focused on the Phoenix process particularly in the first quarter of 2009. One of the concerns raised is that the creditors of the old failed business are left with little hope of full repayment. Unfortunately this is often the reality. However, it is important to recognise that this situation is a direct result of the failure of the old business. Where a business is struggling, if additional investment is not forthcoming then it will fail and face liquidation. In this situation, it is highly likely that creditors will not be paid in full. As such, even if a Phoenix business is started, the position that creditors find themselves in is due to the old company failure and not a direct result of the Phoenix process itself.

In fact, the pre-packed sale of the old business assets to the Phoenix company may often get the best possible return for creditors. This is because the value of the business which may largely be made up of current contracts and good will, is often far higher if it can be sold as a package to a new Phoenix business. If the failed business is liquidated or put into administration, the subsequent value of simply selling any physical assets and distressed stock will almost certainly be lower thus getting a far worse return for creditors.

In addition to improved creditor returns, the Phoenix process offers other significant advantages. In particular, a new trading company is formed which has the ability and capacity to continue to trade with suppliers and customers this preserving future revenue streams for them despite their potential losses suffered from the previous failed business. Often the new Phoenix company will occupy the same premises as the old business thus protecting landlord’s rents. In addition, employment is protected as the new business will want to take many of the old employees whose employment will be protected under TUPE (Transfer of Undertaking and Protection of Employment) rules.

Given the significant advantages, directors and shareholders would do well to consider the Phoenix process while deciding how to resolve the problem of a failing businesses. Clearly, Phoenixing is not right for all situations and independent advice must be sought from a business insolvency advisor. However, in these troubled economic times, all options for preserving business and employment must be investigated and Phoenixing is certainly able to aid this process.

If youve been following the problems encountered by the banks, youve probably come across the phrase toxic assets. Theyve poisoned banks balance sheets and brought them to the brink of failure. But what is a toxic asset, exactly? Marketplace Senior Editor Paddy Hirsch explains.

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by Herve Boinay

Dan Gilmartin on the Michigan Prosperity Agenda Radio Show on the Prosperity Agenda Radio Show


Image by Michigan Municipal League (MML)
The Michigan Prosperity Agenda is a monthly radio show that challenges listeners to help make Michigan a better place to live, work and play by creating vibrant and prosperous local communities. It will air on News/Talk 760 WJR at 7 p.m. on the fourth Wednesday of each month throughout 2010. The hour-long radio program is hosted by Dan Gilmartin, CEO of the Michigan Municipal League (the League). The show is sponsored by the League and the Michigan State Housing Development Authority (MSHDA). During our January, 2010, show, The Prosperity Agenda looked at why having better communities can help make a better Michigan. Gilmartin was joined by co-host Mary Kramer, publisher of Crain’s Detroit Business. Other guests were Peter Kageyama, founder of the Creative Cities Summit; David Egner, executive director of the New Economy Initiative and CEO of the Hudson-Webber Foundation; Joe Borgstrom of MSHDA, and Sean Mann of the Let’s Save Michigan effort (www.letssavemichigan.com). This show aired in Jan. 27, 2010, but you can listen any time here (http://www.mml.org/radioshow/prosperity-agenda.html) and here (http://www.prosperity-agenda.com) or by going to www.mml.org and clicking on the orange Prosperity Agenda logo on the right side of thepage. For details about the Michigan Municipal League and its eight assets for vibrant communities go to www.mml.org.

Are you searching for information related to Asset Protection Group or other information somehow related to fixed assets, or pos systems? If yes, this article will give you helpful insights related to Asset Protection Group and even somehow related to cheap stock trading and asset management system pdf that you might not have been aware of.

There are no internal subject matter experts, the task is overwhelming, and there are too few external experts, road maps or models for reference. A general lack of understanding of the pertinent regulatory and compliance issues further complicates an already daunting challenge. With an estimated 10,000 regulation and laws surrounding IT, this is certainly understandable.

The strategy of asset management depends on financial aspects of ownership such as calculating the entire cost of ownership, depreciation, licensing, maintenance and insurance. Asset management can be in different spheres. For instance, asset management in the field of property is known as property asset management, asset management in IT, in finance or investment asset management and asset management in inventory and physical stock.

Optimize asset use and manage all maintenance efforts involved by making assets as accurate, reliable, and efficient as possible. Reducing the demand for new assets and thus save money by using demand management techniques and maintaining current assets.

Many people forget that they can get more information about any subject matter, be it Asset Protection Group information or any other on any of the major search engines. If you need more information about Asset Protection Group, and be more informed.

The term asset management usually refers to the management of an investment portfolio. However, for a business, assets may include real estate, plant and machinery, vehicles, furniture, computer hardware and software besides financial assets.

Companies often use asset management as a method to track their fixed assets. Asset management allows companies to control assets from procurement, daily operation and maintenance and even disposal. Assets include desks, chairs, computers, factory equipment and even buildings.

Although asset management advisors may manage assets manually, this may only be limited to small industries having only minimal assets. However, for larger companies with bigger assets and for small companies whose assets are steadily increasing, asset management advisors employ asset management software or other PC-enabled tools that make the tedious job of asset management more efficient and less time consuming.

We were thrilled to know that many people found this article about Asset Protection Group and other asset protection techniques, managed futures, and even asset fund management helpful and information rich.

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The Beth Chatto Gardens – How Green is My Valley!


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One of the greats of British gardening, Beth Chatto OBE has entered the realm of national treasuredom. Plants-woman, designer, author, 10-time gold-medal winner at Chelsea, holder of the Royal Horticultural Society’s Victoria Medal of Honour and, of course, the owner of the celebrated Beth Chatto Gardens at Elmstead Market, near Colchester, in Essex – her horticultural skills seem boundless. With the concept of “right plant, right place” – in other words, put a plant in conditions close to its natural habitat and it will thrive without help – running as a thread throughout her career, she has inspired a generation of gardeners to take their lead from nature.

The garden has been the inspiration for many of her influential books, including The Dry Garden (1978), The Damp Garden (1992) and Beth Chatto’s Gravel Garden (2000). It was created on land that was previously part of a fruit farm, owned by her late husband, Andrew, 14 years her senior, whom she married in 1943. “We met during the war,” she says. “I was a schoolgirl of about 17, considering going to college.”

A scholarly man, who died in 1999 after suffering from emphysema for 25 years, Andrew devoted much of his life to research into plant habitats. Chatto says it was he who inspired her interest in gardening and refers to him frequently, modestly deferring to his superior knowledge. “He’s such an important influence in my life,” she says. “My parents were keen, but they had a conventional garden, using mostly cultivars.”

The couple lived initially in his parents’ in Colchester, but in the late 1950s moved to a modernist house they’d built on the edge of the farm – where Chatto still lives today. Even inside, the garden is a constant presence. Large windows frame views and vignettes of the planting on every side and invite a tapestry of textures, colours and shapes into the house.

Chatto credits her husband almost entirely for her success. “My two daughters were teenagers before I began to think about making a business,” she says. “Andrew had looked after us and given me the security and freedom to experiment.” Her husband’s failing health and the trials of running a fruit farm concentrated her mind on developing the garden commercially, though what we see today took time to emerge.

“For the first seven or eight years, much of the land was a wilderness,” she recalls. Yet there were assets, too, not least a rare natural water source in the drought-prone east of Essex, where rainfall can be as little as 20in a year. “There were a few fine 300-year-old oaks and a spring-fed ditch ran through the hollow.” Today, the ornamental gardens cover about five acres; a further 10 are occupied by the nursery, which opened in 1967, and working areas.

Finding water was not the only challenge. “There was land that was so dry, the native weeds curled up and died. That eventually became my gravel garden,” she says. This she created in 1991, on the site of a car park. Apart from watering in the young, drought-tolerant plants during the first year, she has never artificially irrigated it.

Chatto has a knack for turning problem areas into an asset, and there are several distinct areas in the garden, each requiring a different approach. The large water gardens are dominated by a series of ponds surrounded by bog plants and swathes of lush grass. A long, shady walk runs parallel to one of the boundaries. Here, shade-tolerant planting – including ferns, tiarella and pulmonaria – carpet the ground beneath oaks and other specimen trees added by Chatto. By contrast, the gravel area is a mass of sun-loving perennials, with asters, rudbeckias and sedums glowing through hazy grasses.

The garden may have started out to give pleasure to a family, but it has developed into a self-contained horticultural powerhouse, attracting visitors from all over the world – about 40,000 a year. “It’s like sowing an acorn, which is my symbol,” says Chatto. “I have an acorn and an oak tree on a weather vane, which was a wonderful present from my staff.” Incredibly, it is tended by only one full-time and four part-time gardeners and volunteers – many of whom are foreign students. Chatto remains resolutely hands-on and is keen to pass on the knowledge she has gained through experience.

Chatto uses grasses brilliantly, and was doing so long before it became fashionable. She creates seemingly effortless but thoroughly satisfying combinations. Therein lies her genius – there may be others out there with an equal understanding of plants, but nobody else has her eye. Shape, scale, proportion, texture, colour – all are balanced with the skill of a plate-spinner.

She also factors in horticultural considerations – how big a plant will get, how fast or slowly it will grow, what conditions it needs to thrive and how it is maintained. The result is a garden that works on every level – practical, horticultural and aesthetic – with layer upon layer of carefully placed plants, as enticing asmillefeuillepastry. It all seems entirely uncontrived, but, on closer inspection, one notices geometric lines and angles. The big picture is built up gradually, with small groupings of three or more plants forming a satisfying melange of verticals and horizontals, and fluffy and solid plants. “I need the trees and shrubs to form a background, to paint the sky and lead the eye upwards towards the clouds,” Chatto explains. “Then one adds the embroidery, which I enjoy so much.” Nothing is allowed to get out of hand, but stagnation is not an option, either. “A garden is not a picture hanging on a wall,” she says. “It changes not only from hour to hour, week to week or month to month, but from year to year.”

Chatto has certainly noticed the effects of climate change. Drought is nothing new in her part of the world, where (the past two years aside) there is sometimes no rain for up to 10 weeks in the summer. “The most interesting change is the lack of cold weather,” she says. “Only 10 years ago, we had icicles hanging down, and when the children were little, they used to skate. Now we hardly have enough ice to bear a duck.” From an article by Rachel de Thame

Please visit www.bethchatto.co.uk/ for further information about this inspirational gardener and garden.

Major Challenges To Securing A Business Acquisition Loan

Qualifying for a small business acquisition loan can be quite an ordeal to say the least.

If the business being sold is very profitable, the selling price will likely reflect a significant amount of goodwill which can be very difficult to finance.

If the business being sold is not making money, lenders can be difficult to find even if the underlying assets being acquired are worth substantially more than the purchase price.

Business acquisition loans, or change of control financing situations, can be extremely varied from case to case.

That being said, here are the major challenges you’ll typically have to overcome to secure a small business acquisition loan.

>>> Financing Goodwill

The definition of goodwill is the sale price minus the resale or liquidation value of business assets after any debts owing on the assets are paid off. It represents the future profit the business is expected to generate beyond the current value of the assets.

Most lenders have no interest in financing goodwill.

This effectively increases the amount of the down payment required to complete the sale and/or the acquisition of some financing from the vendor in the form of a vendor loan.

Vendor support and Vendor loans are a very common elements in the sale of a small business.

If they are not initially present in the conditions of sale, you may want to ask the vendor if they would consider providing support and financing.

There are some excellent reasons why asking the question could be well worth your time.

In order to receive the maximum possible sale price, which likely involves some amount of goodwill, the vendor will agree to finance part of the sale by allowing the buyer to pay a portion of the sale price over a defined period of time within a structured payment schedule.

The vendor may also offer transition assistance for a period of time to make sure the transition period is seamless.

The combination of support and financing by the vendor creates a positive vested interest whereby it is in the vendor’s best interest to help the buyer successfully transition all aspects of ownership and operations.  

Failure to do so could result in the vendor not getting all the proceeds of sale in the future in the event the business were to suffer or fail under new ownership.

This is usually a very appealing aspect to potential lenders as the risk of loss due to transition is greatly reduced.

This speaks directly to the next financing challenge.

>>> Business Transition Risk

Will the new owner be able to run the business as well as the previous owner?  Will the customers still do business with the new owner? Did the previous owner possess a specific skill set that will be difficult to replicate or replace? Will the key employees remain with the company after the sale?

A lender must be confident that the business can successfully continue at no worse than the current level of performance. There usually needs to be a buffer built into the financial projections for changeover lags that can occur.

At the same time, many buyers will purchase a business because they believe there is substantial growth available which they think they can take advantage of.

The key is convincing the lender of the growth potential and your ability to achieve superior results.

>>> Asset Sale Versus Share Sale

For tax purposes, many sellers want to sell the shares of their business.

However, by doing so, any outstanding and potential future liability related to the going concern business will fall at the feet of the buyer unless othewise indicated in the purchase and sale agreement.

Because potential business liability is a difficult thing to evaluate, there can be a higher perceived risk when considering a small business acquisition loan application related to a share purchase.

>>> Market Risk

Is the business in a growing, mature, or declining market segment?  How does the business fit into the competitive dynamics of the market and will a change in control strengthen or weaken its competitive position?

A lender needs to be confident that the business can be successful for at least the period the business acquisition loan will be outstanding.

This is important for two reasons.  First, a sustained cash flow will obviously allow a smoother process of repayment.  Second, a strong going concern business has a higher probability of resale.

If an unforeseen event causes the owner to no longer be able to carry on the business, the lender will have confidence that the business can still generate enough profit from resale to retire the outstanding debt.

Localized markets are much easier for a lender or investor to assess than a business selling to a broader geographic reach.  Area based lenders may also have some working knowledge of the particular business and how prominent it is in the local market.

>>> Personal Net Worth

Most business acquisition loans require the buyer to be able to invest at least a third of the total purchase price in cash with a remaining tangible net worth at least equal to the remaining value of the loan.

Statistics show that over leveraged companies are more prone to suffer financial duress and default on their business acquisition loan commitments.

The larger the amount of the business acquisition loan required, the more likely the probability of default.

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by Herve Boinay

The Beth Chatto Gardens – Weeping Willow or Sweeping Willow?


Image by antonychammond
One of the greats of British gardening, Beth Chatto OBE has entered the realm of national treasuredom. Plants-woman, designer, author, 10-time gold-medal winner at Chelsea, holder of the Royal Horticultural Society’s Victoria Medal of Honour and, of course, the owner of the celebrated Beth Chatto Gardens at Elmstead Market, near Colchester, in Essex – her horticultural skills seem boundless. With the concept of “right plant, right place” – in other words, put a plant in conditions close to its natural habitat and it will thrive without help – running as a thread throughout her career, she has inspired a generation of gardeners to take their lead from nature.

The garden has been the inspiration for many of her influential books, including The Dry Garden (1978), The Damp Garden (1992) and Beth Chatto’s Gravel Garden (2000). It was created on land that was previously part of a fruit farm, owned by her late husband, Andrew, 14 years her senior, whom she married in 1943. “We met during the war,” she says. “I was a schoolgirl of about 17, considering going to college.”

A scholarly man, who died in 1999 after suffering from emphysema for 25 years, Andrew devoted much of his life to research into plant habitats. Chatto says it was he who inspired her interest in gardening and refers to him frequently, modestly deferring to his superior knowledge. “He’s such an important influence in my life,” she says. “My parents were keen, but they had a conventional garden, using mostly cultivars.”

The couple lived initially in his parents’ in Colchester, but in the late 1950s moved to a modernist house they’d built on the edge of the farm – where Chatto still lives today. Even inside, the garden is a constant presence. Large windows frame views and vignettes of the planting on every side and invite a tapestry of textures, colours and shapes into the house.

Chatto credits her husband almost entirely for her success. “My two daughters were teenagers before I began to think about making a business,” she says. “Andrew had looked after us and given me the security and freedom to experiment.” Her husband’s failing health and the trials of running a fruit farm concentrated her mind on developing the garden commercially, though what we see today took time to emerge.

“For the first seven or eight years, much of the land was a wilderness,” she recalls. Yet there were assets, too, not least a rare natural water source in the drought-prone east of Essex, where rainfall can be as little as 20in a year. “There were a few fine 300-year-old oaks and a spring-fed ditch ran through the hollow.” Today, the ornamental gardens cover about five acres; a further 10 are occupied by the nursery, which opened in 1967, and working areas.

Finding water was not the only challenge. “There was land that was so dry, the native weeds curled up and died. That eventually became my gravel garden,” she says. This she created in 1991, on the site of a car park. Apart from watering in the young, drought-tolerant plants during the first year, she has never artificially irrigated it.

Chatto has a knack for turning problem areas into an asset, and there are several distinct areas in the garden, each requiring a different approach. The large water gardens are dominated by a series of ponds surrounded by bog plants and swathes of lush grass. A long, shady walk runs parallel to one of the boundaries. Here, shade-tolerant planting – including ferns, tiarella and pulmonaria – carpet the ground beneath oaks and other specimen trees added by Chatto. By contrast, the gravel area is a mass of sun-loving perennials, with asters, rudbeckias and sedums glowing through hazy grasses.

The garden may have started out to give pleasure to a family, but it has developed into a self-contained horticultural powerhouse, attracting visitors from all over the world – about 40,000 a year. “It’s like sowing an acorn, which is my symbol,” says Chatto. “I have an acorn and an oak tree on a weather vane, which was a wonderful present from my staff.” Incredibly, it is tended by only one full-time and four part-time gardeners and volunteers – many of whom are foreign students. Chatto remains resolutely hands-on and is keen to pass on the knowledge she has gained through experience.

Chatto uses grasses brilliantly, and was doing so long before it became fashionable. She creates seemingly effortless but thoroughly satisfying combinations. Therein lies her genius – there may be others out there with an equal understanding of plants, but nobody else has her eye. Shape, scale, proportion, texture, colour – all are balanced with the skill of a plate-spinner.

She also factors in horticultural considerations – how big a plant will get, how fast or slowly it will grow, what conditions it needs to thrive and how it is maintained. The result is a garden that works on every level – practical, horticultural and aesthetic – with layer upon layer of carefully placed plants, as enticing asmillefeuillepastry. It all seems entirely uncontrived, but, on closer inspection, one notices geometric lines and angles. The big picture is built up gradually, with small groupings of three or more plants forming a satisfying melange of verticals and horizontals, and fluffy and solid plants. “I need the trees and shrubs to form a background, to paint the sky and lead the eye upwards towards the clouds,” Chatto explains. “Then one adds the embroidery, which I enjoy so much.” Nothing is allowed to get out of hand, but stagnation is not an option, either. “A garden is not a picture hanging on a wall,” she says. “It changes not only from hour to hour, week to week or month to month, but from year to year.”

Chatto has certainly noticed the effects of climate change. Drought is nothing new in her part of the world, where (the past two years aside) there is sometimes no rain for up to 10 weeks in the summer. “The most interesting change is the lack of cold weather,” she says. “Only 10 years ago, we had icicles hanging down, and when the children were little, they used to skate. Now we hardly have enough ice to bear a duck.” From an article by Rachel de Thame

Please visit www.bethchatto.co.uk/ for further information about this inspirational gardener and garden.

Running an Internet business can earn you thousands or millions of dollars. Earning this money and being successful is addictive. You feel on top of the world as your Internet business brings in higher profits each day. However, don’t spend too much time in the clouds because your Internet business can be shutdown in the next 15 minutes if you aren’t careful.

What could stop your Internet business so quickly? Lawsuits! Lawsuits have become common place in today’s world. Your Internet business could be a potential target, especially if you have become very successful. Your deep pockets become very attractive to lawsuit happy people.

It is critical that you protect yourself and your business. One way to bullet proof your Internet business is to structure it in such a way that nobody can access your assets even if they tried to. This is known as entity structuring.

By having the proper entity structuring you will avoid a lawsuit in the first place. Essentially, you’ll learn how to discourage people from suing you. Why? They would be worse off even if they beat you in court.

There are different structures you can have for your Internet business. For example, you could have a sole proprietorship. This is a very bad choice. If you make a mistake you can be sued for it.

Another structure option is to have a General Partnership structure. However, this is even worse then a sole proprietorship. Why? You might be doing business legally and correctly, but your partner does something illegal. Guess what – when your partner is sued, you are sued as well. It is crucial that you never have business assets in your name.

While running a business can be exciting, it also contains a risk. Not only are your business assets at risk, but your personal assets are also exposed. For example, let’s say you write a book and a customer reads it. This customer then misuses the information and gets in trouble. This customer then sues you. Your business AND personal assets are at risk.

If you have a business then you must have business liability insurance. Be prepared because your insurance company will not want to pay your claims. It can be a hassle. So insurance should NOT be your sole source of your action protection strategy.

Structure your business in a way so that your assets are protected. You can learn how to have lawyers and lawsuits run away from you.

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by Herve Boinay

Worktopia creatr John Arena


Image by Esthr
you saw the site (previous photo); now here’s the guy who built the company.

Founder John Arenas previously started another office-space company, called Stratis Business Centers, back in 1997. In the 80’s he had started off working for Turner Construction and then for Citigroup’s workout loan group, so he had a good understanding of real estate, and specifically of office space, from a practical and a financial/valuation point of view. His initial idea was to create a network of office space facilities that would license short-term space (hourly, monthly and annually) to customers nationwide as an alternative to conventional long-term lease commitments. In order to grow without much capital (since such an ambitious idea was tough to fund), he created a franchise network. And in order to offer something special, Stratis developed the technology to control the office space and equipment centrally, including interfaces with Nortel phone systems, Pitney Bowes meters and Konica copiers as well as aits own proprietary meeting room reservation system. He ended up selling Stratis to Regus, the temporary-space giant, and left to start Worktopia in early 2004.
….
In essence, just as eBay allowed people to turn stuff collecting dust in attics into valuable inventory , Worktopia is allowing not just unused office space, but the chunks of time that any particular piece of office space is unused, to be turned into valuable inventory. Industries such as airlines – notably! – and hotels, where fixed costs were higher, got into this early on; they couldn’t afford to hold airplane seats or rooms and not use them. Whereas most companies treat real estate as an unoptimized asset, and only recently started thinking about it strategically. How can we get revenue out of that fancy training center the chairman ordered, but that we use only a few times a year? What about the fourth floor, that we have been going to expand into every year since 2001? Or alternatively, should we really lease that new building, when we can place our salespeople in a temporary office and adjust the space to match our pace?

Despite his familiarity with the market, Arenas commissioned a study to figure out exactly how people procure short-term space and how they want to. In short, says Arenas, “They want a sense of control. They want real-time information to compare alternatives, from a trusted, unbiased source. Typically, they’re buying with a leadtime of weeks – not two years like for a convention – and they don’t have time to do a lot of research.” Until now, there was no marketplace where they could find this. Many of them resort to calling hotels directly – hardly an unbiased source – or rely on local colleagues.

Enter Worktopia – which opened to the public last June. So far it is handling about 12,00 searches – resulting in million in transactions – per month. Its revenues include 8 to 10 percent commissions on temporary office space (payable by the supplier). Hotels and other meeting-room marketers can also subscribe for 00 to 00 per hotel per year for a meeting room marketing service, which allows the hotels to offer the rooms commission-free (and overcomes the touchy issue that hotels make much of their money not on the meeting rooms but on the ancillary services and accommodations).

Its users are grateful; much of the challenge is at the other hand. Even among big suppliers such as hotel chains, only Hyatt and Hilton have central databases of availability. Worktopia is currently developing a variety of analytical tools for its users, along with hosted services powered by Worktopia for big providers of office space and ultimately other kinds of short-term business resources.

Finding the long tail of customers is relatively easy compared with finding the long tail of suppliers – and certifying quality. For now, Worktopia is building out a supplier base through industry contacts, but eventually it will probably use customer feedback to create a reputation system, following the lead of many other marketplaces.

Given the number of lawyers [including me] and lawsuits in the country, most business owners know it is wise to open a business entity to protect their personal assets from lawsuits. By definition, businesses offer something to the public be it services or goods. Inevitably, a problem arises. The problem can turn into a full blown dispute and then lawsuits are filed. If your business is not protected by a business entity, this can result in a judgment that can be collected both from business assets and your personal assets. In short, a disaster. Forming a business entity creates a shield that protects your personal assets from such judgments so long as you stay away from general partnerships.

While you probably already know you need a business entity, you probably do not know there are pitfalls to avoid when forming them. Knowledge is the key and knowledge I will give you. Here we go…

1. Equal Equity – In many situations, a business is owned by two people. When they go to form an entity, they often each take a 50 percent share. This is a mistake. Why? If a dispute arises, how are you going to solve it? Each party has 50 percent of the voting shares, to wit, a decision cannot be made. In a worse case scenario, a judge may resolve such a dispute by dissolving the business and distributing half of the assets to each. So much for your future business plans. If nothing else, you are looking at total deadlock in the business.

2. How Many Businesses? – Another major problem I see with businesses is they often come up with multiple ideas that work, but put them all at risk by using the same business entity. If you have multiple business lines, form a distinct business entity for each one. If one gets sued, the others will not be impacted or face the risk of a judgment.

3. Equity is Gold – The equity in a business entity, such as shares in a corporation, should be treated as gold coins. Would you haphazardly give out gold coins? Of course, not. Yet many businesses will trade large amounts of ownership equity for relatively small sums. This often occurs at the outset of the business when money can be tight. If the business takes off, keep in mind it will grow in value. As it grows, you will really regret giving away 10 percent of the ownership for ,000 to loan shark Lou. If you need cash, try to get loans from people secured by stock in the business.

Once you make the decision to form a business entity, you need to take the time to think through what you are doing. How will problems be resolved? How will ownership be handled? How much money will you need and where will it come from? All of these questions must be addressed or you could really regret the decisions you made down the line.

Protect your business and personal assets from lawsuits, malpractice, and legal predators.
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by jajacks62

Revitalization ‘Blooms’ Near Metro Stops in Southern PG


Image by University of Maryland Press Releases
University of Maryland’s Small Business Development Center Leads Full-Team Press

COLLEGE PARK, Md. – The Maryland Small Business Development Center (SBDC) at the University of Maryland, is launching Branch Avenue in Bloom, an innovative, multi-partner program to revitalize the area around the Naylor Road Metro station and the St. Barnabas Road commercial corridor in Prince George’s county.

Branch Avenue in Bloom combines outside planning resources with community assets to stimulate investor interest in development around the Metro stations in that part of the county. The program managers believe it may be the first effort of its kind in Prince George’s.

"The Metro stations offer prime opportunities for commercial development, and by working with area businesses we can help create an economically viable environment and showcase Prince George’s County as a great investment opportunity," said Lester ‘Casey’ Willson, the SBDC’s retail and sustainability manager. "With a team approach, we can make the most of limited resources and help these areas bloom."

Based in part on the National Historic Trust’s program for revitalizing Main Street America, Branch Avenue in Bloom seeks to increase community pride, enliven the area, and attract new businesses and shoppers.

The Maryland-National Capital Park and Planning Commission is funding the project. Counselors from the SBDC are working with area businesses. Community based action committees have been organized to work on various projects including: a community garden, street and landscaping and a farmer’s market which builds on the "buy local" concept of sustainability. Sam’s Car Wash, a local institution, has donated a storefront which will serve as project headquarters.

"The secret ingredient here is the passion and expertise of community volunteers," said Jennifer Funn, the SBDC’s project coordinator. "Grassroots involvement plus planning expertise and dollars will allow us to realize the community and economic potential here."

Area leaders have caught the spirit and promised help. "I want to extend my strong and sincere support for the initiative," said Karen Toles, member of the County Council for the 7th district. "I will work toward ensuring that you have the resources required to achieve success."

The Maryland Small Business Development Center – a collaboration between the University of Maryland and the U.S. Small Business Administration – links private enterprise, government, higher education and local economic development organizations to provide management, training and technical assistance to Maryland’s small businesses.

The University of Maryland, the region’s largest public research university, provides education and research services statewide, supporting Maryland’s economic and social well-being.

MEDIA CONTACTS

Jennifer Funn
Project Coordinator
301-403-2080 (office)
301-339-3545 (cell)
jfunn@mdsbdc.umd.edu

Glenna Cush
Maryland Small Business Development Center
301-403-8300 ext. 34
gcush@mdsbdc.umd.edu

Neil Tickner
University of Maryland Communications
301-405-4622
ntickner@umd.edu

With the increased development of GPS systems it is unsurprising that a wide variety of asset and vehicle tracking applications have been developed. With efficient asset tracking systems it is possible to secure your business assets and equipment, not only can this give you real time information on the whereabouts of an asset but in the event of theft it means that the asset, through GPS tracking can be found in good time and returned to its rightful owner. Many industries have chosen to utilise asset tracking systems; one of the most important of these to make use of this technology is the medical profession.

Tracking the movement of assets such as medical supplies, devices and various other objects can be invaluable to doctors. For instance, having real time information on the movement of a transplant organ or a dialysis machine could provide doctors with the information that can save peoples lives. Once again it seems as if technology is bettering the world greatly. Not all doctors are advocating the use of asset systems just yet however; many want to see further development in the technology before it can be relied upon. This is a fair response in a profession where having the wrong information can harm people’s health and even risk their lives.

It is not just the medical profession however that is utilising asset tracking systems. The military applications for this technology are also being realised. Naturally the technology used by the military is far more developed than that available on the market, but with development the benefits can only filter down into the public sphere. The military has used asset tracking technology to give the whereabouts of units across the battlefield allowing commanders a real time projection in a virtual battlefield.

This kind of information allows for more efficient orders and greater chances of success. Individual troops also carry personal GPS tracking devices to give their location and give the commander ultimate intelligence, creating the best chance of each soldier getting the job done with the minimum of casualties.

The benefits of asset tracking systems are there for all business types; not just the military and medical profession. Construction companies are now installing the GPS tracking devices to many types of asset such as diggers and trucks. This not only gives the manager peace of mind for the location of their equipment but in creating this peace of mind allows them to focus their attention to the job in hand, hence improving productivity. This reduces the workload of the manger and reduces stress in the workplace, creating a situation more conducive to high production.

The law enforcement sector has benefited greatly from the introduction and development of asset tracking systems. By giving information on any stolen equipment there job is made easier and increases theirchances of returning stolen items more rapidly. One thing seems certain, thieves will be increasingly frustrated to find ways to sidestep these advance tracking systems.

The logistics industry will probably benefit the most from the development of asset tracking systems. It is already viable to track the whereabouts of a package in real time to give the consumer ultimate control over their deliveries. This will reduce the headaches for logistics managers as complaints about late deliveries should at least in theory become a thing of the past. Naturally the human element may still make mistakes but with evermore development in asset tracking technology, the blame for the artificial side should be negated.

With increasing developments in the world of GPS tracking it is unsurprising that these developments have made life easier in many industries. With the higher levels of efficiency that accompany these developments the benefits are clearly there for those who choose to utilise these new technologies.

posted by Admin on

by Herve Boinay

Rosebud business solutions is a boost for businesses


Image by Lancashire County Council
LANCASHIRE County Council has unveiled its refreshed Rosebud business solutions package to support local business in today’s economic climate.

Rosebud business solutions aims to be a catalyst to unlock high value enterprise in Lancashire, creating longer term sustainable employment.

In particular, Rosebud wants to support companies from high growth sectors such as advanced manufacturing, innovation and intellectual property, creative industries including design and digital technology, low carbon energy management and other environmental based industries.

The county council’s economic strategy for the next ten years includes an ambitious target of generating new economic activity (GVA) valued at £3bn, underpinned by a private investment plan worth around £4bn; and the creation of nearly 40,000 new jobs – with more than 15,000 new jobs in higher-value sectors.

County Councillor Michael Welsh, chair of Lancashire County Developments Limited (LCDL), said: "Rosebud has an excellent track record with active investments ranging from £1.2 million to under £10,000 in 140 Lancashire based businesses.

"However like any business we must constantly raise our game and adjust our products to a changing economic environment. Without excluding any worthwhile prospects, we want in particular to focus on supporting a number of key sectors where we believe Lancashire has particular advantages so that we can develop local centres of excellence which will attract private sector investment.

"We offer a complete package including loan finance, equity investment, premises, networking and business support and advice for entrepreneurs who want to build a stake in Lancashire’s growing economy.

"The Waste Recovery Park at Leyland is a good example of a major asset which has the potential to stimulate a cluster of innovative, research based companies in a growth area; we need to use Rosebud to help the private sector exploit this kind of opportunity."

Created by Lancashire County Council’s economic development company (LCDL) and managed by Enterprise Ventures on behalf of LCDL, Rosebud addresses business needs for new start-ups, expansions or relocations to the county.

Rosebud business solutions combines business finance with customised development support including finance to develop skills that underpin business growth and access to specialist networks.

Combining a range of competitive finance products, with loan and equity products from £2,000 to over £1 million with customised business support.

Over the last 25 years, Rosebud has invested in more than 1,000 Lancashire businesses across all sectors, creating wealth and employment. Any profits from Rosebud are reinvested back into further business development.

Phil Halsall, chief executive of the county council, said: "This is about establishing a new business generation in Lancashire. With the right infrastructure, we can unlock the potential in the county’s economy for the benefit of the people we serve."

For more information about Rosebud business solutions, visit www.lancashire.gov.uk/rosebud , call 01772 536652 or email rosebud@lancashire.gov.uk

Anyone who has any personal assets or even business assets should consider a legal method to protect those assets. One of these methods is the living trust. This is one of the most effective methods to protect your assets and to eliminate the expense and burden of probate court. Because this concept makes us face our mortality and eventual death, it is difficult for most of us to discuss the topic.However, since it is inevitable for all of us, the sooner we protect ourselves, the better for us and our descendents. Porbate is a legal term that most of us don’t understand.It is this legal term that is used to complete an individual’s legal and financial affairs after his or her death. Through this process, debts are paid , taxes are filed and administrative [attorney's'] fees are paid And when all of those responsibilities have been met, the remaining assets are distributed to the beneficiaries of the estate according to state law. It is expensive using up to ten percent of the total assets and may take over a year to accomplish it.

Privacy is another concern as everyone and his brother can obtain the record of the probate. They then will know the assets,property and money involved in the estate. To prevent all these potential headaches, you should consider developing a living trust.

To create a living trust your assets are transferred in to a trust and a trustee is named to oversee the management of the trust.The advantage of the trust is that the trustee can be the same person that creates the trust . At the time of death, the management of the trust is transferred to a predesignated individual and thus avoding probate court.

Ther are many reasons that you can benefit from a livng trust including : estate tax saving, estate planning, transferring of family businesses from one generation to another.

Since life seems to march by quickly, creating a living trust seems to be a common sense idea to prevent problems for the next generation.

http://www.astewart37.com

Word derivation for the day: Blind justice or why is justice blind?

 Justice is depicted in Greek statues as a woman blindfolded with a pair of scales in her hand. She is blinfdolded so that she can’t see the bribes that are being offered to her. The Egyptians carried the idea even further in that they conducted their heariings in a darkened chamber so that the judges couldn’t see the defendent, the prosecutor or the witnesses..

posted by Admin on

by Herve Boinay

Market Street Railway


Image by Jamison Wieser
Double-ended streetcar model painted in the proposed color scheme the original Market Street Railway would have used. The company had been struggling by the end of the 40′s and went out of business, selling their assets to the San Francisco Municipal Railway (Muni) before purchasing any PCC streetcars.

A solid marital property agreement is powerful and simple. Such an agreement can be entered into either before or after the marriage and can be modified at any time by written agreement. As a married person your assets and wealth are not adequately addressed or insulated for the protection of your business or your family until you have this agreement in place. If you are single, you should study and understand marital property issues before considering or discussing marriage with your loved one. 

Marital property agreements have an unwarranted and unjustified negative stigma that this article will hopefully debunk. Many people consider them to be a divorce planning device and therefore view them negatively or emotionally. Although they do accomplish the division of property and assets in the event of a divorce, they provide a more important layer of protection to the business owner and his or her family. The smart entrepreneur will recognize the primary worth of this contractual device to be asset protection, family protection and lending protection.

The most common form of marital property contract is often called a “prenuptial agreement.” This contract recognizes and separates ownership interests in both the property owned before marriage as well as the property which will be acquired post marriage. This feature is important because it can shelter the non-business owner’s separate property from creditors and liability of the business owner spouse. Future income can also be addressed in these agreements.

Post marital agreements can achieve the same kind of separation of assets and income after the marriage is entered should the parties agree to the property separation. The major benefit of post marital property agreements is the insulation of property and assets from any liability that may flow from either spouse’s activities or businesses. However, another important advantage of post marital agreements is that lending capacity can be increased. For example, if you own a business that borrows a great deal of money for a large expansion or acquisition, the lender may restrict your future borrowing capacity until the large loans are paid down. As a result, your spouse may not be able to obtain a loan for a separate line of credit or other capital requirements for his or her business because of the restrictions. With a marital property agreement in place defining separate property issues of the two independent businesses, these lending restrictions could likely be avoided.

Even though marital property agreements should be regarded first as responsible business planning tools instead of divorce planners, they do serve the added purpose of insulating business assets and operations from the claims of divorcing spouses. No one plans or expects to divorce when deciding to marry. However, marriage is a leap of faith that sometimes meets with a disastrous landing as proven by our country’s divorce rate. Thus, responsible business planning benefits from the marital agreement’s divorce consequences.

Marital property laws vary from state to state. But regardless of where you live, your spouse could end up as the sole owner of the business or as a partner depending on certain circumstances and legal consequences. Certainly, in most cases this would be unthinkable if not merely unworkable. Having an insurance policy in the form of a marital property agreement against an unexpected divorce and subsequent property division can definitely be advantageous.

Pre-marital agreements are technical and have state specific legal requirements and procedures which impact their enforceability; therefore, a family law specialist or a contract lawyer with experience in drafting enforceable premarital agreements in your state of residence or domicile should be consulted and retained if you decide to enter into a proper marital property agreement.

With adequate planning and the right marital agreement, you can protect yourself, your spouse, your family and your business from unexpected liability and unintended circumstances arising from any business, professional or personal legal disaster. It is simply a smart business practice to use these powerful legal protection tools.

posted by Admin on

by Herve Boinay

DEMO Fall 2010 – Registration and Orientation


Image by The DEMO Conference
Demonstrator, BDNA IT Genome Center gives customers the power to explore and manage their IT Genome through deep visibility.

DEMO Fall 2010 is taking place at the Hyatt in Silicon Valley, CA. Companies both large and small come to DEMO to launch their products to the Technology world. DEMO offers the access, interaction, and validation of the new emerging technologies.

For more information:
DEMO Fall 2010 Website

Social Media presented by New Media Synergy

Photos by Stephen Brashear
Stephen Brashear Photography

Adapting to the credit crunch

For many years banks and lending institutions have dominated control over business/Asset Finance.  Over recent times new choices have become readily available which have never existed before; one of those is the availability of money through non-traditional sources.

Banks and conventional lending institutions lend on specific criteria. The variation cost fluctuates from one lender to another on a daily basis and more recently due to the credit crunch lenders are differentiating themselves by wanting to operate in different marketplaces and by funding various types of equipment and funding structures.

The majority of businesses require finance for a wide range of assets from traditional wheeled assets, machinery and IT equipment to warehouse racking, mezzanine floors and office furniture but to name a few.  In this current economic climate it is crucial for a business to arm themselves with a wide range of asset finance credit lines that can be drawdown as and when they require.

The role of a Asset Finance broker is becoming ever more apparent and is a valuable tool for businesses in this current climate to acquire competitive rates and lending terms. Companies do not have the time available to research and present financial proposals to source additional lines of credit.

A good finance broker will save you both time and money. Consider the huge amount of time alone that would be spent researching and presenting your financial proposals. Many Asset Finance proposals are turned down because they are packaged and presented in the wrong way, and even presented to the wrong lending organisation.  

Yellow Note Asset Finance Limited