Finance::Business

Last Chance to Minimize Interest Expense!

Want to improve cash flow and enhance profitability over the next 5, 10, even 20 years? Convert variable-rate debt to fixed? Look into refinancing fixed-rate debt that’s currently higher than 7 percent or so.

Have a line of credit that is never fully paid off? Consider taking out a term loan and using the proceeds to pay off the portion that doesn’t “revolve.” You may want to consider doing the same with credit card debt.*

Book Review: “A Colossal Failure of Common Sense”, Lawrence G. McDonald

More than an insider’s account of events that led to the collapse of Lehman Brothers, it’s also a truly amazing story of a young man’s ”by hook or by crook” determination to break into the ultra-exclusive club that is Wall Street. Although the story could have been told in fewer pages, it’s chock-full of tales of hustle, determination, greed, ego, intelligence, big bets and the chase for big bonuses. It also reveals the complexity of the world’s economic system and financial markets; how relationships and power struggles at this level can swing billions, if not trillions; and how even the smartest people can, and often do, get it wrong.

Q&A: The New SBA Loan Programs

Tanner Eckler, assistant vice president for Bank of Oklahoma, answers some key questions about the SBA’s new loan programs.

Credit Cards More Expensive, Riskier as Source of Funds

Credit cards are a significant source of capital for small businesses. In fact, The National Small Business Association (NSBA) recently surveyed 288 small businesses and found 86 percent use credit cards as either their primary or sole source of funds! Nearly a quarter reported juggling more than four credit cards used for business purposes.

Pretty shocking, given the punishingly high cost. And since respondents reported using their credit cards as sources of funding, we can safely assume they carry balances. Add to this the turmoil in the credit card market today and we have at hand a real challenge for small companies.

Need to Refinance? Simply Incredible New SBA Programs

The U.S. Small Business Administration is trying to make it easier on small businesses with loan programs that go beyond the norm. The SBA has hiked the guarantee percentage to lenders and waived the annual fees. In addition, the SBA has started an interest-free, 100 percent loan guarantee program that benefits business owners and lenders.

Know Your Net Worth

Certain terms are important to know when calculating your net worth. The terms will help you better understand your overall financial picture as you push forward with your business.

Harvest Cash by Reducing Inventory

Need cash? Have a sale.

S&P 500 Annual Rate of Return (1929 to Present)

Ask the Editor: Auto Lease Assumptions

Dear Editor: A friend recently told me that great car lease deals are available at www.LeaseTrader.com, which facilitates transfer of leased autos and trucks to new owners/lessees. My friend also said that auto lease expenses are 100% deductible as a business expense if the lease is taken out by the business itself. Is this true?