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It wasn’t too many years ago when the hot trend in the physician world was the purchase of medical practices by hospitals. The theory was that not only would the hospitals benefit by an influx of referrals, the physicians would not have the headache of managing their practice and therefore earn more and work less.

Unfortunately, this rosy scenario has not always worked out and, as a result, many doctors are terminating their contracts with the hospitals. This has forced the physicians to re-establish their practices. For most doctors, maintaining their customer base isn’t a problem, as most patients will follow them back into private practice. The main issue is practice management in general, and financing in particular.

Although the physician may have no trouble getting financing for capital expenditures, a more ongoing problem is how to pay expenses and overhead incurred during the 60 to 90 days it takes to get paid from third party payors. As doctors and other providers are getting financially squeezed because of pressures reduce costs, the need for funding becomes greater. Even the most efficiently run practices need short term working capital as their businesses grow, and as a result of this need, healthcare financing companies have sprung up to provide medical receivables funding.

Even though the largest asset of most providers is their accounts receivable, most banks won’t lend money on that asset. Loan officers often lack the specialized knowledge of the healthcare claim billing and collection process. Because there can be a significant difference between the expected amount to be paid versus the face amount of the billings, banks are leery of using it as collateral. In a medical factoring situation, the funding company purchases the outstanding receivables of the practice, thereby assuming an ownership position in the receivables. Because the ownership of the receivable has changed, the practice also passes along the credit risk to the funding source.

ADVANTAGES OF RECEIVABLES FUNDING

* There is no monthly debt service because the funding is not a loan.

* It is an off-balance sheet transaction since the client is selling an asset.

* The client can receive fresh cash weekly, thus providing a manageable flow of funds.

* Because the only asset that is encumbered is the receivables, the healthcare firm can pursue other types of financing concurrent to this program.

* Factor fees tend to be much less than paying a billing company.

* No personal guarantees are required. The factoring company is more interested in the Read more…

If you are in debt, then you know the feeling, the stress, the anxiety, and the calls from creditors and letters from banks. If you are in debt then the first thing you would like to do is run. However, you don?t have to run away from your debt, here are some tips for getting out of debt.

Many people don?t realize that they are going into debt, they realize once they are in debt. If you realize that you are in debt don?t panic, first it is necessary to understand your expenses and your income. Create a budget to know exactly how much can be spent each month and how much money you have to pay back creditors.

1. Contact your creditors. It is highly advisable to contact your creditors and tell them that you are having financial difficulties. They are more than likely to work with you instead of bark at you for their money. If you are willing to work with them they see it as that you?re more reliable to pay them back.

2. Create a budget that is realistic. Stick to your budget.

3. Pay Read more…

In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead. But that*s not the only reason. Here are the seven most common mistakes FSBOs make when selling their home.

1. Failure to price a property at what market conditions will bear.

The number one reason that most FSBOs don*t sell their homes is that they price it too high. Many start counting the money they*re saving on commissions and how much their sale will net. If your house is priced higher than other comparable houses in your market, you will not get the offers you need to sell!

2. Underestimating the time, energy, know how, ability and effort needed to sell a house.

One of the keys to selling your home effectively and profitably is complete accessibility. Many homes sit on the market much longer than necessary because the owner isn*t available to show the property. Realize that a certain amount of time each day is necessary to sell your home.

3. Not being prepared to deal with an onslaught of buyers who perceive FSBOs as targets for *low balling*.

Another challenge of selling a home is screening unqualified prospects and dealing with low-ballers. It often goes unnoticed that much time, effort and expertise is required to spot these people quickly. Settling for a low-ball bid is usually worse than paying any type of professional fee or commission.

4. Lack of knowledge about financing options for the buyer.

Are you prepared to answer questions about financing? One of the keys to selling is having all the necessary information the prospective buyer needs and to offer the buyer options. Think about the last time you purchased something of value, did you make a decision before you had all your ducks in a row? By offering financing options, you give the homebuyer the ability to work on their terms. You*ll open up the possibility of selling your home quicker and more profitably. It*s critical that you locate and establish relationships with a network of financing experts that will help you accomplish your goal profitably.

5. Not fully understanding the legal ramifications and all the necessary steps required in selling a home.

Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your state*s disclosure laws. Are you completely informed of all the Read more…

Financing is one of the most important functions of any enterprise. For carrying out any operation, finance is required. Thus, finance must be raised, allocated and controlled for the effective execution of any function. Finance function is superimposed on all other functions. That is, all the other functions in a business enterprise depend on the financing, and the success or failure of the firm, as such, depends on how effectively the finance function is undertaken.

Financing is an essential but distinct segment of the overall managerial function. It is closely related to various managerial functions such as production, personnel and distribution. The finance function comprises of determining and raising the necessary funds from appropriate sources, and their proper allocation and control with the aim of attaining the enterprise objective of wealth maximization. The wealth or the value of the firm is at the maximum when the return or profit is also at maximum. But with the increase in return, the risk also increases.

Financing function aims at reaching a trade-off between risk and return, and between profitability and liquidity, with the ultimate objective of maximizing the value of the firm. Some experts have defined financing as the task of providing the funds required by an enterprise on the terms most favorable to it, in light of the objectives of the business.

Money management, accounting, control and Read more…

The term financing is commonly used to explain the acquisition of loans from banks or other financial institutions. Financing is usually provided to business owners, either to be utilized as start-up capital or to support an on-going business. Some businesses may require financing to help them through a rough patch, or simply to provide some liquidity until more current assets are turned into cash. Additionally, financing is also given to companies who are expanding their businesses rapidly and require the money to support their new operations and facilities.

Due the high interests and high risks that come with financing, small business owners are often compelled to evaluate their situation from all angles before making a financing decision. This is because there is a full range of loan types available in the market, each of them for different purposes and with different interest rates, repayment terms and loan terms. Apart from that, business owners do not want to miscalculate their loan amounts, as obtaining a greater loan value will mean a higher liability to the company, while getting a smaller loan will produce a situation of inadequate financing.

Inversely, banks or financing institutions function to provide financing facilities in order to make profits from the interest payable by the borrowers. In return, they obtain a monthly repayment amount from the company, including interests. Banks usually provide loans through the pledge of fixed assets to the banks as collateral. In the event of payment default, the lender will sell the assets to recover your debt to them. However, there may be cases that lenders provide loans without the need for collateral, but with a higher interest and more stringent qualifying procedures.

Apart from obtaining financing from lenders, small business owners are also eligible for loans from government fund agencies such as the U.S. Small Business Administration (SBA) or the local state governments. These agencies provide financing to help spur the growth of small businesses in the country, and usually impose criteria that are more flexible as compared to banks. In the Small Business Loan program run by the SBA, they act as a guarantor for the borrower in order for them to obtain loans of a longer term from SBA’s lending partners.

All the financing sources mentioned thus far are generally known as debt financing. This type of financing would be ideal for companies that have a high equity to debt ratio, which means that the owners of the company has invested more capital as compared to the amount of debt obtained. However, in cases where the equity to debt ratio is low, it may be difficult for a company to obtain debt financing. Therefore, the alterative to this Read more…

Starting a business requires funding in the form of start-up capital and initial operating costs. Although personal savings and loans may be adequate to start a small business along with a great idea, some businesses require a lot more capital that can be borne by savings alone. Of course, with greater capital required comes a higher risk level as more sales and revenue would need to be generated by the business in order to support the repayment amount as well as to produce a healthy return on investment percentage.

The second option to obtaining capital would be from people that you know, such as friends, family and relatives. Equity financing could be obtained from there sources, or just as a low-cost loan payable over a certain period of time. This will be a great benefit to you as you won’t have to adhere to conditions and the higher interest rates imposed by financing intuitions or other stakeholders.

The most common source of financing would be from lenders such as banks and credit unions. These organizations are in the business of providing financing and will impose a particular interest rate on your loan. Apart from that, they may impose restrictions on conditions on repayments and even on limitations on the usage of funds provided to you. This type of loans are normally known as debt financing, as obtaining capital from these sources increases the debt of your company.

Equity financing can be obtained by other shareholders or venture capitalists. Capital obtained from venture capitalists are regarded as an investment into the company and not as a loan. As venture capitalists are very selective in the projects that they fund, as they want to ensure that their investments pay off multiple-fold. Therefore, venture capitalist funded projects are subjected to scrutiny from venture capitalists in terms of management, decision making and accounting procedures.

The U.S. government has realized that the importance of funding to fuel the growth of small businesses and thus have launched the Small Business Administration organization for this purpose. There are various loans offered based on the nature of the business, the amount of financing required as well as the repayment period. Apart from that, certain types of loans are funded by lending partners of the SBA, with the SBA acting as a guarantor for the loan. This way, a longer loan repayment period can be obtained, with a lower risk on the lender.

There are also many other capital sources that can be obtained by a small business. This would be a loan from a credit card, employee stock ownership, home loan refinancing or even purchase order financing. All of these are just glimpses of the various ways in which money can be obtained to start a business, each of them with varying cost levels. Therefore, it Read more…

The dollar bill in use today was designed in 1957. This ?paper money? is made from a blend of cotton and linen. Look closely and you?ll see that it also contains red and blue fibers made of silk as an anti-counterfeit measure.

The Seal of the United States Treasury is on the front. The top features scales representing justice and the center shows a chevron with 13 stars representing the 13 colonies. The key acts as a symbol of authority.

The Great Seal of the United States is shown with both the obverse and the reverse on the back of the dollar bill. The back of the seal sits on the left side and contains a Pyramid. The front of the pyramid is lit but the western side is dark, which some have suggested demonstrates that we had not yet begun to explore the West.

The Pyramid is uncapped, again possibly signifying that we were not yet finished with our task of exploring the continenant. Charles Thompson, Secretary of Congress in 1782, told Congress that the pyramid represented ?Strength and Duration.?

An eye sits inside the capstone, as an ancient symbol for divinity and long used by Masons. Franklin was a Mason, but Adams and Jefferson weren?t. Above that is the Latin phrase ANNUIT COEPTIS, which means, ?God has favored our undertaking.? Below is the phrase NOVUS ORDO SECLORUM, which means ?a new order for the ages.? At the base of the pyramid is the year 1776 in Roman numerals.

The obverse (front) of the Seal can be found at national cemeteries. It also serves as the basis for Seal of the President of the United States. Over Franklin?s objections (he wanted the turkey), the Bald Eagle was chosen as our nation?s symbol for victory. The eagle fears no storm, being strong and smart enough to soar above it, and he has no crown ? important symbolism considering we had just won our war against King George.

The shield on the eagle?s chest represents Congress consisting of red and white stripes Read more…

When it comes to making a car purchase, paying for it is a big part of the battle. Even mid level new cars run into the $20,000 range. Because of these prices, few people pay cash for cars anymore and statistically about 7 out of every 10 people use car finance to pay for their new vehicle. In order to get the best car finance possible, you need to understand how the whole process work.

First, you want to figure out where you are going to get your car finance. There are a number of institutions that can get you financing. Banks, credit unions, the dealership, or even auto manufacturers can provide financing for your new or used vehicle.

Second, with a car finance, you need to realize that whether you buy a new or used vehicle will affect your financing. As a general rule, interest rates will be lower on new cars than on used ones. Also, new cars can often qualify for financing over a longer period of time than can used cars.

Next, when it comes to our car finance, don?t believe everything you see or read. Commercials for special financing for those who are first time buyer or have bad credit abound in papers and on the television. These are usually a little too good to come true and come attached with requirements such as extra high down payments and extremely high interest rates. In some cases, both apply to the loan.

Before you go to get your loan, make sure you know about your own credit history. Get a copy of your credit report and go over it with a fine toothed comb. Look at the score as well as the payment histories on it. If anything at all looks incorrect, make sure you get it cleared up. When a lender looks at how much money to give you, they will check out your debt ratios, how long you have been at your job, your history with similar loans, and your credit report as a whole.

Once you are armed and ready to consider your car finance, shop around. It is usually a good idea to look for the financing before you buy the car. You will better know what you qualify for that way. Also, you Read more…

Many investors skip straight to the financial section of the business plan. It is critical that the assumptions and projections in this section be realistic. Plans that show penetration, operating margin and revenues per employee figures that are poorly reasoned, internally inconsistent or simply unrealistic greatly damage the credibility of the entire business plan. In contrast, sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility.

For instance, if the company is categorized as a networking infrastructure firm, and the business plan projects 80% operating margins, investors will raise a red flag. This is because investors can readily access the operating margins of publicly-traded networking infrastructure firms and find that none have operating margins this high.

As much as possible, the financial assumptions should be based on actual results from your firm or other firms. As the example above indicates, it is fairly easy to look at a public company?s operating margins and use these margins to approximate your own. Likewise, the business plan should base revenue growth on other firms. Many firms find this impossible, since they believe they have a break-through product in their market, and no other company compares. In such a case, base revenue growth on companies in other industries that have had break-through products. If you expect to grow even faster than they did (maybe because of Read more…

If you have applied for a mortgage in the past five years, you?ve probably heard of credit scoring by now. Perhaps you were told that your credit scoring was wonderful, or needed work. Or maybe your mortgage would have been lowered by several points, if you had better credit scoring.

Credit scoring models, as the industry calls them, started to become widely used around 1994. Two secondary market players, Fannie Mae and Freebie Mac, started creating automated underwriting programs around this time, and this is how credit scoring came to be the way it is today. Both auto lenders and credit card issuers have used these types of systems for years ? well before the mortgage brokers did.

The aforementioned companies that started to use these processes about 10 years ago now thought it was strange that someone could walk into an auto dealership, and two hours later drive away with a $100,000 car ? but a potential homeowner couldn?t do the same thing. Which made no sense, because cars depreciate over time, and can get lost or stolen ? but houses usually appreciate, and are fixed in location. So, using this logic, the industry movers and shakers decided that if the car buying process was this easy, then home buying should be as well.

Although in theory this sounds quite amazing, it?s only been recently that this has actually been the reality of the process. This is partially because the credit scoring models have become more refined over the years. And now, almost all mortgages are determined using some sort of credit scoring process.

These mortgage brokers usually use some sort of credit reporting agency to get information about someone who has applied for financing, or credit scoring, Read more…