Category Archives: Uncategorized

Are State Pensions in Trouble?


At a funding level of only 31%, Kentucky’s pension is in trouble. Only New Jersey, with a similar level of funding, can match it in the race to the bottom. Despite being fully funded in 2000, years of shorting pension contributions to patch holes in their budget, coupled with risky hedge fund investments that went sour, has left Kentucky’s state employees and retirees worrying that their retirement security is at risk.

And while Kentucky and New Jersey may be the worst, there are many other states that are not far behind. As of 2016, the funding gap in state pension systems between assets and promised benefits was $1.4 Trillion.This is the result of most states, like Kentucky, failing to contribute enough to their plans annually. In 2002, pension contributions accounted for about 2.3% of state and local spending. While that has grown to 4.7%, that is still not enough for some of these pensions to close the gap.

States are starting to take action, mostly to the detriment of new hires, but some attempts have been make to cut benefits promised to retirees and current employees. While these have mostly either not been signed into law or have been rejected by the courts, it is a worrying trend for current or retired state employees.

New hires and some current employees do face pension changes in an increasing number of states.   Some states now have various hybrid plans that combine the traditional defined benefits of pensions with defined contributions plans similar to 401Ks. This means that more of the investment risk is being handed off to the employee.  States are changing benefits in other ways, too. Contributions by employees are increasing without a commensurate increase in benefits, benefits are being calculated based on salary history rather than the usually higher salary at retirement, and in some cases, payouts can be partially based on investment performance.

All of this means less financial security for state employees. As many state employees have limited access to Social Security, there is no fall back for retirees if a state pension manages to drastically cut its benefits. For current and new employees, benefits upon retirement date may be a fraction of what was guaranteed to past generations of employees. With all of the changes and uncertainty around state pensions, planning and saving for retirement becomes increasingly important, even for those promised lifetime benefits upon retirement.

Specialize for new technologies


New information and communication technologies are constantly reinventing the corporate world. This is why business schools are adapting by offering specialized courses in the fields of new technologies and in startups.

The truths, methods, knowledge and techniques of yesterday can be anachronistic, even counterproductive.

How to learn to unlearn and forget?

Technological changes are such that every professional is now condemned to continually update skills, or even to develop new ones. Too slow, our companies cannot sufficiently support us. The training is struggling to keep pace. What was true yesterday will be false tomorrow. The key skills of the day before yesterday will be obsolete the day after tomorrow. It is therefore in autodidacts that we must now transform ourselves. However, self-taught people suffer from their own misfortune: having the greatest difficulty in accepting, admitting, recognizing that they have learned the wrong way or that what they have learned is no longer of value. Why ? No doubt because the investment made makes such an admission difficult.

New technologies: essential skills for the business world

French and international companies have not hesitated to renew their working methods and tools by leading their digital transformation. Now, in the majority of them, all the processes related to production, but also to human resources, management or marketing are digitalized.

Result: the data is organized in complex information systems, the management of which requires specific skills. The major business and management schools have therefore adapted to the new needs and uses of businesses, by adapting their courses to new information and communication technologies. These courses, which continue until the master level, are accessible to preparatory students as well as through parallel admissions such as those organized by the Passerelle Grande Ecole Program competition.

Opt for parallel admissions to business schools

If you did not join a preparatory class for the Grandes Écoles after obtaining your baccalaureate, they will not be closed to you. Your initial training can even be an asset in the context of parallel admissions.

This is the case, for example, for candidates in the Passerelle Grande École Program competition, which differs from other common test banks in many respects. Indeed, this competition adapts to the profile of all students, whether they have a higher technician certificate a university technology diploma or a license.

The proof bank is also intended for students in scientific preparatory classes. It consists of two main parts: the written tests and the oral interview. During the written tests, candidates can select a multiple choice from a wide range of subjects, such as calculation and reasoning, management and accounting or even economics.

The oral interview, on the other hand, is only intended for candidates who are eligible for the written tests. They can then present their professional project to the schools they wish to integrate.

Uncle Sam’s Nasty Surprise for Non-U.S. Citizen Spouses

Are you a U.S. citizen married to a non-U.S. citizen?Or, are you and your spouse both green card and/or U.S. visa holders living in the United States?

If so, then you’ll want to be aware of U.S. estate-tax rules that, without proper planning, can result in an outsized tax bill.

Recently, we started working with an American client who has a significant estate and lives and works in the United States. His wife is a Canadian citizen and U.S. green card holder, but not a U.S. citizen. The couple does not have kids.

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In a recent tax-planning session, our American client was shocked to learn that any gifts between he and his wife may be subject to tax rates as high as 40%. The same high tax rate may apply to any inheritance left by a deceased spouse to the surviving spouse.Our client’s surprise was understandable, because the rules are very different for couples who are both U.S. citizens.

Most Americans leave the bulk of their estate to their surviving spouse, because most of it can be transferred without tax consequences. In particular, under the “unlimited marital deduction,” if a person leaves his or her estate to a spouse, there is no estate tax on the transferred property, regardless of the size of the estate.

Simply put, the IRSis willing to wait until the second spouse dies before levying an estate tax. Similarly, married couples are free to make unlimited inter-spousal gifts without incurring gift taxes.

By the way, because of the U.S. Supreme Court’srecent DOMA decision, same-sex couples can now join heterosexual couples in transferring as much of their estate as they like to their spouse, free of gift or estate taxes. The catch is that both spouses must be U.S. citizens.

The IRS sees things differently when it comes to transfers in which one spouse is not a U.S. citizen. The “unlimited marital deduction” treatment does not apply to a foreign spouse because the IRS is afraid the non-citizen spouse will move to another country, thus avoiding U.S. gift and estate taxes altogether.

Without the availability of the marital deduction, current law permits the first $5,430,000 (adjusted for inflation) of assets to be transferred tax-free.In other words, an inheritance left to a non-citizen spouse is subject to a 40% estate tax after the $5,430,000 lifetime exemption is used up.

So what should you do if you are married to a non-citizen and your estate is above the exemption threshold?

Let’s use our clients as an example. Thewife could become a U.S. citizen prior to the husband’s death. Or they could establish a qualified domestic trust (QDOT). A QDOT defers the estate tax until the death of the foreign spouse, and allows for an annual income stream to be paid to her. Moreover, it can buy time for the surviving spouse to acquire U.S. citizenship.

Gifting strategies can also be used to transfer a certain amount of assets to the non-citizen spouse each year (the 2015 limit is $147,000). This will gradually reduce the size of the U.S. citizen’s taxable estate while protecting them from federal gift-tax liability.

Alternatively, if certain conditions are met, our clients can take advantage of the marital credit under the Canada-U.S. tax treaty. This option, however, can’t be used in conjunction with the QDOT deferral.

As our clients learned, there are certain planning strategies and legal structures that, if set up in advance, can help cross-border couples avoid losing up to 40% of their wealth through unnecessary taxes.

If you would like more information about this topic, or to discuss your own unique situation, please contact us today for a confidential consultation.

Tags: Canadians living in Texas, Canadians living in Florida

Is your product ready for a big box grocery store?


You’ve spent hundreds of hours, thousands of dollars and have exerted blood, sweat, and tears into making your food product a success. You’ve got your product into local mom and pop stores, sell online and maybe even at a local specialty store. Now you’re ready to go big and have your eyes set on acquiring distribution with the idea that once you sign a deal, all you need to do is focus on making more product(s).

A common misconception by new food manufacturers is that a food distributor will find retail outlets for their product and all they need to do is to produce the product, hand it off to the distributor and wait for the money to roll in. The reality is that a distributor only moves your product from the loading dock to the stores you instruct them to deliver to — the rest is entirely up to you. A distributor is not the marketing solution for a new manufacturer; it is a logistics solution.


This is where representation from an independent manufacturer representative can become a real value-add for your business. A seasoned in-store retail sales merchandiser typically has dozens, in some cases hundreds of relationships with grocery chains in multiple regions. For instance, FreshSource has an army of field merchandisers who have established relationships with grocery department managers across the west coast and many parts of the U.S. When we take a food product to market we are able to influence where the product is sold, it’s position in-store and other factors that are conducive to sales and success.

Keep in mind that new food products have to compete with other proven products that are already on the shelf. Thus it is imperative that your product is able to stand out, rise above and win at the register. It’s also important to understand the requirements of stores you hope to sell in – as specific locations such as Wholefoods and other natural food stores have ingredient standards that must be adhered to.

At the end of the day experience and relationships can make or break the success of your product in-store. Working with a proven in-store merchandising partner can help you both gain access to a network of stores and grow your brand. A successful food broker will provide you with honest feedback and market insights that can propel your brand to new heights. If you’re ready to push your product to the next level, you may want to consider requesting an initial product review and assessment from a food broker.


Trusted and professional adword service


Google Adwords Advertising for Professionals 94% of people enter their queries on the Google search engine Ensure optimal visibility to customers as they search for the services you offer on Google which is more Trusted adwords service ever. Your ads appear on Google’s search results page when your prospects search for your services. you only pay if someone interacts with your ad, for example if someone visits your website or calls your business. This means that you get traffic to your website with people who are actively looking for a health professional like you.

Google Adwords is based on bidding to better position its ads on the search network or the display network and have immediate visibility.

Only many advertisers launch campaigns that, if incorrectly set, are doomed to fail. As an Adwords consultant, They help you to set up your campaigns and tell you the process or train you to continue managing campaigns, or manage your campaigns on a monthly package according to your goals.

A Google AdWords consultant is an expert in paid search engine optimization on the Google search engine. His goal will be to generate qualified traffic on his client’s website. He usually works for e-merchants or lead generators who have a complete web marketing strategy and want to set up or optimize Google Adwords campaigns. Its goal will be to achieve the best return on investment (ROI) for its customers with Professional adwords services and manage system.


Here are some examples of problematic situations

Increased visibility

Google Adwords campaigns are an excellent advertising tool to quickly publicize your business and your products / services on the internet, even with a limited advertising budget.

Increase in readership

An Adwords campaign can generate additional and qualified traffic in just a few hours.

Qualified Visitors

An Adwords campaign allows you to show your ads to customers interested in your products / services at the exact moment when they are looking for what you offer them.

Certified Google Adwords Specialist

A part of Google AdWords Accredited Specialist who carefully designs your AdWords campaign to get the most out of your ad budget and gives you insightful tips to increase the visibility of your new online ad on Google.

Additional income

An Adwords campaign can attract new customers quickly and generate additional revenue.

Peace of mind

Eliminate the stress of managing your AdWords campaign. The Vertigo Media team of professionals will take care of the creation and the management of your campaign and You, you will be able to concentrate to welcome your new customers.

Measurement of results

You’ll have access to a simple dashboard, telling you how many people are watching your ads and how many of them are clicking on your website or just calling.


Expert in sponsored links, Traffic Manager, Freelance Adwords, Google Adwords Agency etc. The specialists working for Google are located in Dublin and also offer free accompaniments for their customers; This will allow a client wishing to train at the same time and become autonomous to keep an accompaniment on good practices.

Cross Border Retirement Income: Canada Pension Plans, Canadian Old Age Security, U.S. Social Security and the Windfall Elimination Provision


Calling all eligible benefit holders of the Canada Pension Plan (CPP), Canadian Old Age Security (OAS) and U.S. Social Security (SS)……….

Does your or your spouse’s story narrate a history of employment in both Canada and the U.S.? If so, you may have the privilege of drawing from SS, OAS and CPP. The confusion lies amidst the qualifications and how these benefits interact with one another given the Windfall Elimination Provision (WEP).

Let’s break it down……

Social Security (SS)

To qualify for retirement benefits under U.S. Social Security, you must have 40 credits of covered work.  Each credit represents a quarter (i.e. 3 months) of full-time employment.  Thus, generally speaking, you must have 10 years of full time employment in order to qualify for retirement benefits.

All monthly benefits are based on your Primary Insurance Amount (PIA), which is the amount you would receive if you retired at your full retirement age (FRA). The FRA is age 65 for people born before 1938, gradually increasing to age 67 for those born in 1960 and later. You can choose to take it as early as age 62, resulting in a 25% reduction in benefits. At a more granular level, the monthly PIA is reduced by 5/9ths of 1% for each of the first 36 months before your FRA. You can also choose to earn delayed retirement credits (DRCs) for any month from FRA up to age 70. DRCs increase the benefit for the retired worker but not the spouse (if utilizing the spousal benefit). If you were born in 1943 or later, you earn 8% DRCs for each full year (prorated for months) up to age 70 for a maximum increase of 32%.

Individuals have the opportunity to take a SS benefit on the greater of their own record or 50% of their spouse’s SS benefit.

Canadian Old Age Security (OAS)

The rules to qualify for full OAS benefits under the Canadian system are centered on residency in Canada beyond the age of 18, not employment history. A full benefit is received when an individual has accumulated a Canadian residence history of 40 years. The pension can commence as early as the month following one’s 65th birthday or be delayed as late as age 70. By deferring one’s OAS, the benefit increases by 0.6% per month/7.2% per year, which equals a 36% increase if OAS is deferred to age 70. Partial OAS benefits may be available in certain situations. Let’s review a few scenarios:

Let’s assume you’ve lived in Canada less than 40 years and you are currently residing in Canada. As long as you are 65 years or older, a legal resident of Canada or Canadian citizen, and have lived in Canada at least 10 years since the age of 18, you are eligible for a prorated OAS benefit.

To take it a step further, let’s assume the same scenario with a bit of a twist. Instead of currently residing in Canada, you are now living in the U.S. These circumstances dictate you must have resided in Canada for a minimum of 20 years since the age of 18 in order to receive a partial benefit.

If neither of these examples apply to you, there may still be an opportunity to collect on the benefit if the country in which you currently reside has a social security agreement with Canada.

One final item on OAS; if one were to reside in Canada at the time of receipt of the OAS benefit, the individual may be subject to the OAS clawback. This would be created when your income exceeds certain threshold levels. For the 2019 tax year, the OAS clawback kicks in when income exceeds, $77,580. On the other hand, if OAS payments are made to a physical resident of the U.S. – and not a Canadian physical or tax resident – the clawback provisions are eliminated, and the entire benefit is paid to the recipient. No OAS clawback would apply.

Canada Pension Plan (CPP)

Unlike Old Age Security, CPP is based upon your pension contributions through your employment record, subject to certain maximums. As long as you’ve made at least one contribution to the plan, you are entitled to receive a CPP benefit. This benefit is available at age 65, but one can opt for a reduced benefit as early as age 60 (reduced by 7.2% annually) or a delayed benefit as late as age 70 (increased by 8.4% annually). In addition, the CPP benefit is not subject to any clawbacks.

How then do these benefits tie in with the Windfall Elimination Provision (WEP)?

Understanding the Windfall Elimination Provision

Under Title II of the Social Security Act, the Windfall Elimination Provision was born. It authorized the Social Security Administration to reduce an individual’s Social Security benefit in the event the recipient was also receiving a foreign pension (e.g. CPP). To understand the “why” behind the WEP, it’s important to comprehend how the SS benefit is calculated, specifically the Primary Insurance Amount (PIA).

A worker’s PIA is based off their average monthly earnings separated into three amounts. These values are then multiplied utilizing three distinct factors. Here’s an example:

For a worker who turns 62 in 2018, the first $895 of average monthly earnings is multiplied by 90%, earnings between $895 and $5,397 by 32%, and the balance by 15%. The sum of these three amounts equals the PIA, which is then either increased or decreased depending on when a worker decides to draw SS. This is how the monthly payment is determined.

Social security was meant to replace part of an individual’s pre-retirement earnings. With the previous calculation in mind, one can conclude that workers with lower average monthly earnings have a higher percentage of their pre-retirement earnings replaced via Social Security than those with higher average monthly earnings. For example, a 62 year old worker with average earnings per month of $3,000 could receive a benefit at FRA of $1,479 (49 percent of their pre-retirement earnings), increased by cost of living adjustments. For a worker with $8,000 of average earnings per month, the benefit starting at FRA could be $2,636 (32 percent of their pre-retirement earnings) plus cost of living adjustments.

For those individuals whose primary job wasn’t covered by Social Security, yet had their benefits calculated as if they were a long term, low-wage worker, they would end up receiving a benefit that would cover a higher percentage of their earnings, plus a pension from a job for which they didn’t pay Social Security taxes. This is true for someone who spent time working for an employer in Canada, earning CPP credits.

Under the Windfall Elimination Provision (WEP) the calculation for a worker’s Social Security benefit needs to account for the CPP payment. The 90% factor on the first $895 of monthly average earnings (when estimating PIA), could be reduced depending on the number of years of U.S. earnings history. The WEP is eliminated once a worker has 30 or more years of substantial earnings in the U.S.

The U.S. Social Security Administration has an Online WEP Calculator that is available via:

Despite the current provisions of WEP, a U.S. Class Action lawsuit has been filed on behalf of Canadians who receive SS benefits and have been impacted by WEP.  The suit was recently filed in the State of Indiana against the SSA. The crux of the lawsuit is whether the application of WEP against individuals who also receive the same benefits in Canada is lawful.  The Plaintiffs in the Class Action are claiming that the application of WEP to U.S. benefit recipients is unlawful and presents a violation of the plain meaning of the U.S. Social Security Act, U.S. Social Security Act Regulations and the Social Security Agreement (1983-1984) between United States and Canada (the “Social Security Agreement”). The Plaintiffs are seeking retroactive payment of the amounts that have been deducted through the application of WEP and the ending of the application of WEP moving forward.  The claim has been certified but has yet to move forward at the trial court level.

In Summary: Although a worker’s Social Security is potentially reduced by CPP, the good news is that OAS does not factor into the WEP calculation. Whether the WEP impacts your Social Security depends on the uniqueness of your individual circumstances and the potential result of the Class Action Lawsuit. If you think you might be impacted by WEP, we recommend you have a cross border financial planner such as Cardinal Point analyze your situation.

Tags: Cross Border Retirement Planning, Cross Border Financial Planning

An Abusive Relationship Can Creep Up on You

Imagine you went on a first date with someone who was sarcastic, nasty, disparaging towards you. It’s hard to believe that you would agree to a second date. Yet an abusive relationship can creep up on us and have us gradually accepting that behaviour, justifying it, perhaps even feeling that we are in some way responsible for it happening.

The abuser often couches their behaviour subtly; they may claim they are trying to help us improve, are encouraging us to remedy a perceived failing or flaw.

It is often sexual abuse that gains the most media coverage but abuse also covers physical, emotional and mental cruelty and can be experienced by people of either gender, age, in any strata of society. It’s important for us to become aware if escalating patterns of unacceptable, sustained bad treatment start to appear.

- Abuse is often about control. The abuser may be insecure, afraid of losing you, fearful that you’ll find someone better, so they try to hold onto the relationship by increasingly checking where you’re going, what you’re doing, how you’re spending your money, how you dress.

Often an abuser will try to make you increasingly dependent and reliant on them. They may discourage you from working; they earn enough, why not take a break, why not take time to think about doing something else? It can be a seductive, attractive process where you feel cared for, loved, supported but over time you gradually lose your financial independence, career, friends, even family.

- Emotional abuse often starts by establishing a cosy ‘us against the world’ scenario where you’re assured that you’re all they have/need/want. At first you feel loved and secure, safe in the loving bubble of warmth and protection. Gradually you’ll find you spend less time with friends, especially if it becomes an increasing hassle to make arrangements, they are regarded as a bad influence or your family is accused of being unfriendly or interfering.

Over time it becomes harder to make plans to see ‘outsiders’. You may find that when you try to make plans they often clash with ‘special’ or ‘important’ functions you’re required to attend, or there is an insistence in dropping you off and picking you up, where they return earlier than agreed. This in itself may be fine. You justify the behaviour as friendly, sociable, helpful, but combined with negative remarks about your clothes, hair, makeup you may gradually start to lose any confidence in yourself.

Some abusers become so controlling that they methodically check every financial transaction and request for money, query every call or text on the itemized phone bill, undertake daily mileage checks on your car, phone or return home at unexpected times to see what you’re doing. If you try to challenge their behaviour they will justify themselves logically and reasonably, even making you feel guilty, apologetic at having questioned their motives.

- Physical abuse often starts with a tap, a push, an angry slap. Sometimes alcohol is involved. The perpetrator is often seriously contrite afterwards, promising never to repeat their behaviour. It’s important to be firm with them, discuss what’s happened and insist that thy seek help, perhaps to specifically deal with anger or alcohol related issues. Keep a diary of abusive behaviour, try to save money in a secret account and have a safe place where you know you can escape to if you become afraid.

- Sexual abuse can involve gradual but increasing degradation; the pressure to do things, engage in practices you find off-putting, unpleasant, painful or humiliating. You may be accused of being frigid, a prude, old-fashioned but whilst it can be fun to experiment and explore sex together, a relationship should be about both parties feeling comfortable and moving at a pace that is fine for them both.

Start as you mean to go on is an important message for new relationships. Keep regular channels of communication open between you and be sure to discuss any areas you feel unhappy about. Be firm and refuse to be bullied into doing things you don’t want to do. You’re allowed to change your mind even if you’ve gone along with things previously.

If you’re beginning to feel uneasy in your relationship find an ally, a friend, a therapist with whom you can confidentially discuss matters. It may be that you’re being over-sensitive, feeling vulnerable, or past experiences have made you ultra-cautious. Even so, you’re entitled to consideration and respect, to have your concerns listened to. Is there a place you could go to de-stress, to take a break, giving you both time to reflect on your relationship? Might you benefit from outside help from a counsellor, a mediator, priest, family friend?

Take time to explore what the triggers are, what happens to spark off the abusive behaviour. Look for help for either or both of you to deal with those issues. It’s important to protect yourself and your self-esteem, and perhaps help your abuser too.

Susan Leigh, Altrincham, Cheshire, South Manchester counsellor, hypnotherapist, relationship counsellor, writer & media contributor offers help with relationship issues, stress management, assertiveness and confidence. She works with individual clients, couples and provides corporate workshops and support.

How To Deal With Your Small Business Finance Needs

One of the most challenging and time-consuming tasks for any business owner is to finance even a small business. While it is considered an essential part of running and expanding a business, it should be done properly and carefully so that it won’t hinder the establishment of the business as a whole. Small business finance is basically the connection between cash, value, and risk. Maintaining the balance of these three factors will ensure the good financial health of your business.

The first step that a business owner needs to take is to come up with a business plan as well as a loan system which comes with a well structured strategic plan. Doing this will certainly result to concrete and sound finances. It is of necessity that prior to your financing a business, you figure out what exactly your needs are in terms of small business finance.

In trying to determine your business’ financing requirements, keep in mind that you have to have a positive mindset. As the owner of the business, you should be confident enough in your own business that you will be willing to invest as much as 10% of your small business finance needs from your own pocket. The other 30% of the financing can be from venture capital or other private investors.

In terms of the private equity aspect of your business, you would want it to be around 30 to 40 percent equity share in your company for a period of at least three years and a maximum of five years. But of course, this will still be dependent on the value of your small business along with the risk involved. Maintaining this equity component in your company will assure you majority ownership of the business. As a result, you will be able to leverage the other 60 percent of your small business finance needs.

It will also be easier to satisfy the remaining financing needs of your growing business. You may opt to get the rest from a long-term debt, inventory finance, short-term working capital, and equipment finance. Remember also that as long as you have a steady cash position in the business, many financial institutions will be more than willing to lend you money. In this respect also, it is recommended that you get an expert commercial loan broker who will do the selection of your financing options. This is also a crucial stage as you would want to find the most appropriate financing offer to meet all your small business finance requirements.

These are just some of the important considerations that need to be taken when financing a small business. There are, however, so many business owners who do not pay enough attention to these things unless their business is in crisis. As a business owner, what you should keep in mind always is how you can grow and expand. Therefore, have a small business finance plan as early as possible so that you can make sure that every financial aspect of your business is in good condition.

Small Business Finance Success Improves With Realistic Options

The goal of being realistic when seeking new commercial loans and working capital financing will help commercial borrowers avoid a number of commercial finance problems. With proper preparation business owners should be in a better position to obtain new financing despite the difficult challenges impacting most working capital loans and small business financing. Nevertheless it should be anticipated that terms of financing will be different from prior commercial financing. Because of recent commercial lending difficulties, business owners actively assessing the most effective options for their small business finance decisions are likely to find the smoothest path to business loan success.

In view of volatile conditions which have recently impacted credit markets, this will not be a simple task. A very common example of the problem is illustrated by how much misinformation and confusion there has been about business financing and working capital availability. Getting more accurate information about what is realistically possible can be one of the most difficult challenges for commercial borrowers.

When seeking to identify realistic choices in a confusing working capital management climate, a number of harsh realities must be confronted by all small business owners. For most current commercial financing decisions by business owners, there are several major factors to anticipate. In the first example, additional small business loan collateral is being requested by most commercial lenders. Second, many regional and local banks have discontinued lending for business financing and working capital. In a third example, businesses which are not currently profitable or not current in their debt payments will have extensive difficulties. Fourth, business construction funding currently is very limited in most areas. In a fifth example, lenders are eliminating unsecured business lines of credit for most small business owners.

Despite the new business financing limitations just noted, there are practical working capital options for small business owners to consider. An increasingly effective commercial financing option in the midst of an uncertain economy is a merchant cash advance program based on credit card processing activity. Even though this commercial funding option has been available for a few years, it has not been used by most small businesses. For most businesses which accept credit cards, merchant cash advances should be evaluated as an important tool for improving business cash flow. Small business owners wanting to pursue this financing option should consult a business financing expert who is knowledgeable about this working capital management approach as well as other small business loans.

Even though working capital loans are not as widely available as they were just a few months ago, this kind of small business financing is still in fact obtainable. Since some of the largest providers have stopped making these business loans, the main change for business borrowers is the likelihood that they will be dealing with a different commercial lender. Small business owners will benefit from finding an experienced and candid business financing expert to assist in evaluating realistic options because the most effective working capital financing providers are not aggressively marketing this capability.

As stressed above, when making commercial financing decisions it is becoming increasingly important for business owners to first determine their effective business finance funding options. Because of recent volatility in financial markets, this task is likely to be much more difficult than most commercial borrowers realize. It is advisable to explore commercial finance options that might be necessary if economic conditions change even further even for business owners who are satisfied with their current working capital financing arrangements. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.

Changes For Business Finance and Working Capital Loan Programs

As business owners develop their small business loan plans for future financing and refinancing throughout the United States, there is an increasing awareness that there have been significant business finance changes that cannot be ignored. Some of these measures are likely to end up being permanent, and even the temporary commercial mortgage loan and working capital loan changes are expected to be in place for an extended time due to the severity of the current financial climate.

A reduction in commercial lenders as well as stricter standards for acquiring commercial loans and commercial mortgages has been the net result from business finance changes. Unfortunately there has also been no shortage of misinformation about the availability of commercial funding.

A significant reduction in business lending activity overall is perhaps the most dramatic change. This has been due to several events occurring almost simultaneously. Several major commercial lenders have gone out of business altogether. Many banks have stopped commercial finance lending while continuing consumer lending. Numerous business lenders have enacted stricter standards for the commercial financing transactions they are still willing to consider.

It remains to be seen how many changes will be permanent or temporary. But from a practical perspective, commercial borrowers are left with no choice but to adapt to the changing business finance environment. Business owners must be prepared to operate within a more complicated climate for commercial mortgage loans and small business loans regardless of how long the changes might be kept in place.

What should borrowers do about this? A primary option that business owners should explore involves looking beyond their local market area for help with commercial loans. To accomplish this, it should be helpful to contact a commercial financing expert operating throughout the United States.

In addition to fewer business lenders to choose from, there are two other significant changes which must be anticipated by business owners before seeking new commercial loans. First, more collateral for virtually all business finance funding is being demanded by many commercial lenders. Second, most lenders have cancelled or are about to eliminate unsecured lines of credit (usually called working capital loans) for many businesses.

One effective commercial financing strategy for overcoming the combined obstacles of more collateral, fewer lenders and reduced unsecured credit lines is to consider business cash advance programs based on future credit card processing transactions. This is proving to be one of the few sources of business funding that has not been adversely impacted by recent events. To learn more, it will be advisable to discuss the potential with a business finance expert who can provide advice about business cash advances as well as other small business financing solutions.

It is increasingly obvious that many banks will continue to modify their business lending programs in response to changing conditions. This means that another key change issue for working capital financing and commercial mortgages is the likelihood that more changes will be forthcoming in the near future.

To adequately prepare for future commercial finance changes that might (or might not) occur is a daunting task for a business owner. A commercial financing expert familiar with Plan B contingency financing for small business loans will prove to be a valuable resource for any borrower wanting to seriously deal with both current and future changes impacting the financial health of their business. By having a candid conversation with a commercial loan expert, business owners should be more capable of implementing an appropriate strategy for the vast changes which have recently occurred or are about to become effective for most business financing and working capital finance funding.