Where you need to expand your business or need extra cash to grow your inventory, a business will always encounter times where a loan would be necessary. Cash is an important part of business growth.
And to make more money, you will need money to spend first to create an additional source of income. To make more sales, you will need to spend on additional materials to increase your inventory. To tap a market outside your local area, you will need to put up an office in a new location.
But not every time we apply for a loan, it is granted. It takes a borrower’s convincing powers to make a lender agree that they are qualified for a loan. In the financial world, there are 5 C’s that are being considered by the lender before granting a loan. Knowing about these 5 C’s will help you prepare well to get that loan you are applying for a grant.
It is important that we are aware of character. When a lender makes a credit investigation, they identify the character of the business or individual. If you are a business, they identify how long you have been operating and for an individual how long have you been working. They would also want to know how you deal with your suppliers and customers as they would foresee how well you would work with them. Understanding you as an entity or as a person gives the borrower an idea of what to expect when dealing with you.
This is where the lender would evaluate your capacity to pay. Identifying how much cash and how much you earn. Knowing what your expenses are and what existing loans you may have. Understanding your financials allows the lender to identify if you can pay the loan at a given term.
Another aspect that a lender check is your capital or your net worth. This shows the lender an idea to recover the loss in case of insolvency, death or even disability. This is your total assets less your total liabilities.
It is the security which you can offer to make sure that the lender recovers the loan amount in case of unexpected circumstances. This gives the lender the capability to sell the asset in case of default on payment whatever the reason may be. Some lenders even go to the extent of requiring a guarantor or co-signor.
Conditions refer to the outside aspects that may affect the repayment of the loan. It can be an economic difficulty for those applying for a business loan or critical illness for an individual.
It is perfectly legal to deduct your next vacation. Here’s how to do it.
To qualify for this deduction, you must meet the following two criteria:
1. You are self-employed or own a small business
2. On your next trip, you combine business with pleasure.
The first requirement is pretty cut and dried.
The second requirement is somewhat trickier and will be the focus of this article.
To deduct any U.S. trip, you can combine business and pleasure, but the primary purpose of the trip must be business.
And here’s how the IRS defines a trip taken primarily for business purposes: the number of “business days” is greater than the number of “personal days”. To complete the definition, travel days are considered “business days”.
Here’s an example to clarify the rules:
You take a 10-day “vacation” to Orlando. You spend one day getting there and one day getting back. You spend 4 days attending a seminar. The other 4 days are spent with Mickey Mouse & Company.
Let’s tally up the days: Business Days = 6 (2 travel days + 4 seminar days) Personal Days = 4 (doing theme parks)
So, are the number of business days greater than 50% of the total days? Yes. So here’s what you get to deduct:
— 100% of your transportation expenses (even though 40% of your days were personal days)
— 100% of your “on-the-road” expenses for the 6 business days, including hotel bills, cab fares, rental car, seminar fees, dry cleaning, laundry and meals. (Although the meal expenses are still subject to the 50% rule.)
The on-the-road expenses for the 4 personal days are not deductible. But you’re still getting a great tax break here.
Assuming you spend $1,000 for transportation and the 6 business days, a sole proprietor in the 35% tax bracket (15% federal tax + 15% self-employment tax + 5% state tax) saves $350.
Why Pinch Your Pennies When You Can Stretch Your Dollars by Eliminating Your Income Tax Liability Legally
St. Louis, Missouri November, 24, 2003 – Hannah and Associates is revealing closely guarded banking and tax secrets for the first time. With this information you may never have to pay income tax again.
Sound too good to be true? Let Hannah and Associates prove to you that this isn’t a hoax.
The US Constitution (Article 1, Section 9, Paragraph 4) actually forbids income taxes. The only lawful taxes in the United States are excise taxes. These excise taxes primarily fund government services. Not a dime of income taxes goes to pay for government services!
What is even worse is that the IRS keeps files on every US citizen. These files are called “IMF,” or Individual Master Files. These files were begun as soon as you started your first job and filled out a W4 form. Fraud can be found in 95+% of these IMF file. It is this fraud that holds you accountable for income tax.
Hannah and Associates can get you the information you need to reduce, and possibly eliminate your income tax liability. Tax reduction is just one of many debt relief services provided by this company.
Hannah and Associates was founded in 2003. The company’s main goal is to help clients obtain levels of financial freedom only dreamed about by most people. We treat each client with respect and dignity by providing them information to make informed decisions about their own financial situations.
Mary Heather Hannah, President
Hannah and Associates