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Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.

Develop a business plan and loan package that has a well developed strategic plan, which in turn relates to realistic and believable financials. Before you can finance a business, a project, an expansion or an acquisition, you must develop precisely what your finance needs are.

Finance your business from a position of strength. As a business owner you show your confidence in the business by investing up to ten percent of your finance needs from your own coffers. The remaining twenty to thirty percent of your cash needs can come from private investors or venture capital. Remember, sweat equity is expected, but it is not a replacement for cash.

Depending on the valuation of your business and the risk involved, the private equity component will want on average a thirty to forty percent equity stake in your company for three to five years. Giving up this equity position in your company, yet maintaining clear majority ownership, will give you leverage in the remaining sixty percent of your finance needs.

The remaining finance can come in the form of long term debt, short term working capital, equipment finance and inventory finance. By having a strong cash position in your company, a variety of lenders will be available to you. It is advisable to hire an experienced commercial loan broker to do the finance “shopping” for you and present you with a variety of options. It is important at this juncture that you obtain finance that fits your business needs and structures, instead of trying to force your structure into a financial instrument not ideally suited for your operations.

Having a strong cash position in your company, the additional debt financing will not put an undue strain on your cash flow. Sixty percent debt is a healthy. Debt finance can come in the form of unsecured finance, such as short-term debt, line of credit financing and long term debt. Unsecured debt is typically called cash flow finance and requires credit worthiness. Debt finance can also come in the form of secured or asset based finance, which can include accounts receivable, inventory, equipment, real estate, personal assets, letter of credit, and government guaranteed finance. A customized mix of unsecured and secured debt, designed specifically around your company’s financial needs, is the advantage of having a strong cash position.

The cash flow statement is an important financial in tracking the effects of certain types of finance. It is critical to have a firm handle on your monthly cash flow, along with the control and planning structure of a financial budget, to successfully plan and monitor your company’s finance.

Your finance plan is a result and part of your strategic planning process. You need to be careful in matching your cash needs with your cash goals. Using short term capital for long term growth and vice versa is a no-no. Violating the matching rule can bring about high risk levels in the interest rate, re-finance possibilities and operational independence. Some deviation from this age old rule is permissible. For instance, if you have a long term need for working capital, then a permanent capital need may be warranted. Another good finance strategy is having contingency capital on hand for freeing up your working capital needs and providing maximum flexibility. For example, you can use a line of credit to get into an opportunity that quickly arises and then arrange for cheaper, better suited, long term finance subsequently, planning all of this upfront with a lender.

Unfortunately finance is not typically addressed until a company is in crisis. Plan ahead with an effective business plan and loan package. Equity finance does not stress cash flow as debt can and gives lenders confidence to do business with your company. Good financial structuring reduces the costs of capital and the finance risks. Consider using a business consultant, finance professional or loan broker to help you with your finance plan.

A car auction may possibly take place just anywhere – in any city, town, and even other countries, also. If one takes the United States, for example, approximately each state possesses at least one car auction facility and possibly even more. General public, auto sales dealers and business owners, who are very much interested in purchases of cars, are all constant consumers of the car auctions. There are also special online auto auctions for the ease of the purchaser. Moreover, the types of car auctions are numerous too, for example, such as car salvage auctions, wrecked motorcycle auctions, repairable car auctions, and car parts auctions. In fact, there is a wide net of car auctions all over the USA. And what is more, American car auctions are held nearly each day. So, all individuals and businessmen will agree with the fact that the opportunities to buy vehicles by the use of auctions are multiple.

What is usually auctioned off at the car auction? Individuals can find practically all kinds of vehicles here. Cars are presented here by make, model, and year of production. Their condition may be very different as well – beginning from comparatively new and repossessed cars to wrecked vehicles. Insurance companies, city and state government organizations, and banks and other financial institutions have large possessions of cars for auctioning off. The price of storing these cars is nearly unaffordable; these institutions feel free to put these cars for auctions rather than to go on to lose cash on the storage. In taking part in a car auction, persons do not have to contact with sellers. Nevertheless, the consumers should be ready to check the desired car and set a price which they are able to pay for this car in order to place bids on it and to purchase the car. One more point the consumers should remember, if they are taking up at online auctions, they will be in charge of paying the supplementary transportation fees to ship the vehicles to their locations.

Auto auctions have a long history of existence. They give an option to standard ways of taking up a car. Instead of going to a car dealer and looking and driving a car, the buyer is expected to check the car himself. After that he waits for the auction to begin, and then places his bids on the car. The highest bidder gets the rights for the car and becomes the winner. Modern technology simplified the whole process of purchasing. Auto auctions online might be considered to be one of the most popular and common ways to acquire a car. The vast number of auction vehicles has been tested and are in running condition. Buyers can be assured that they will drive securely after purchasing an online vehicle, from a trustworthy company. The downside of an online auto auction is that a purchaser is not able to see the car in person. There are typically many photos of the car, as well as a good description. The vehicles in the auction have been road tested and mechanically sound to ensure that the customers drive safely, and are pleased with their purchase. Another major ground for choosing an online auction is the diversity of vehicles available. Buyers are able to place bids on cars that are all over the globe, not just in their neighborhood. Individuals can come across just about anything they desire online. The only drawback is that they must have the capability to pick up the car. In some cases the vehicles can be shipped to you locally, making it much easier and more convenient to buy a car on an auction.