How to Navigate the Waters of Small Business Lending

The small business loan industry is teetering toward inaction with little to offer lenders or owners. According to the Federal Reserve, large U.S. banks are softening loan terms for small companies 10 percent more than mid-sized and large businesses. The Wall Street Journal also reported banks and lenders' difficulties in stirring the market for small-business lending.

Entrepreneurs across the board are in need of useful tips and trustworthy advice. Much of the process hinges on thorough preparation and a clear understanding of lender expectations. For businesses that don't meet prerequisites for traditional commercial loans, low-interest loans can be negotiated through some nonprofits and local and state development agencies. This avenue can be even more worthwhile than navigating the hoops of typical lenders.

No small business should be afraid to utilize the U.S. Small Business Administration. It's a valuable and informative resource with details about the loan process, contracting, government relations and more. The SBA is a reliable tool to obtain basic answers. By becoming well acquainted with the administration, small-business owners can research what lenders are going to ask. Some questions may vary, but the gist will be the same. This includes inquiries like what assets must be bought? Who are your suppliers? Do you have other business debt? Who are your creditors? Who are the members of your management team? What can you offer as collateral?

Create a checklist of all necessary documentation. Loan applications require a host of documents—personal/criminal background checks, resumes, business plans, business and personal credit reports, financial and bank statements, income tax returns and business licenses. Having all the proper paperwork in order speeds up the procedure and smoothes any logistical wrinkles.

Finally, it's imperative that small businesses keep immaculate records of all accounts payable, client billings and collections, loan details and year-end reporting for tax preparation. Firms, like On Call Accountants, provide accounting services, financial reporting and business consulting, so pertinent information is organized and readily accessible. They also collaborate with banks for loan packages. More information is available atwww.oncallaccountants.com.

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Get the Most Out of Your Rental Property

Managing a rental property can be an excellent source of income in today's economy.

A third of the nation's households rent their residences, according to the 2010 U.S. Census Report, and that number rises as high as two-thirds in large metropolitan areas, such as New York and Los Angeles.

Given the steady demand for rental housing, it's no wonder that individuals are investing in real estate, but there are several things property managers should keep in mind if they hope to make a profit.

First, it is important that landlords screen all potential tenants to ensure that they have a reliable income and will pay their bills on time. This is a crucial step that will prevent conflicts down the line. Once you have secured tenants, keeping them happy, while still running a successful business, is your primary goal. Maintaining a clear, written record of any exchanges you have with tenants will make it easy to track any problems as they arise.

It is also essential that all properties satisfy basic living conditions, such as adequate weatherproofing, and that they adhere to state regulations for safe electrical wiring and ventilation. Landlords are also required to arrange for necessary repairs. It's a good idea to develop relationships with local contractors who will do the job quickly, so tenants remain satisfied, and the property stays in top shape.

Property management is expensive, even with the supplemental income rent provides, and many property managers lose a substantial amount of money each year by not taking advantages of the tax deductions available to them. Insurance costs, repairs and independent contractor wages are all fully deductible, but often go overlooked. A detailed record-keeping system is the best way for landlords to track their income and expenses, but many simply do not have the time.

One way to address this issue is to hire a bookkeeping firm to take over bookkeeping duties. One Call Accountants (www.oncallaccountants.com) is one such company located in Virginia Beach, Va., that specializes in outsourced accounting, financial reporting and consulting for small and mid-sized businesses. By handing this job over to the professionals, property managers can maximize profits with minimal headaches.

For more information about On Call Accountants, visit www.oncallaccountants.com.

About the Author

NewsUSA has created and placed over 15,000 editorially sound newspaper, radio and online features that educate and inform consumers about finance, health, safety and travel as well as home and holiday topics.