I’ve got to comment because this health care bill will shift the cost of a flawed plan to small business owners.

We are all quick to admit that “fixing heal care” is an enormous challenge facing our country and we will not solve this problem by asking the wrong set of questions.  To date, most of the political rhetoric has been focused on changes required of the medical, business and insurance community.  However, the real problems are the tort laws that impact health care.

Unfortunately for all tax payers,  over one third of Nancy Pelosi’ congress is part of the problem, not part of the solution.  162 members of the 441 (36%) members of the 111^th Congress are lawyers or have a law degree.  They support a tort industry that thrives on the huge contingency fees and damage awards of the tort industry.

It has gotten so bad that 30 states have limited awards on medial law suits.  Texas placed limits on malpractice awards in 2003 and has seen a 50% drop in malpractice premiums, few lawsuits and a surge of new doctors ready to serve those communities.  Alabama has seen hospitals actually close ER services because of a doctor shortage.

Now, back to speaker Pelosi.  Hidden in her 1,990 page health care bill is a provision that provides for incentive payments to states that develops an “alternative medial liability law”.  The state will only qualify for these “incentives” if they “do not limit attorneys’ fees or impose caps on damages.”

The deeper you dig, the sicker you will feel, trust me.

Any healthcare bill that does not resolve the economic issues around healthcare (frivolous lawsuits) will never have any meaningful impact on real reform.  Unfortunately, our leaders are more focused on protecting turf and political favors than improving health care.

There are 162 Reasons Why Healthcare Reform Will Never Happen is a post from: Business Cash Advance provider Instant Capital Solutions.

The internet has changed our thinking about a lot of things.  We should be able to search for almost everything, we should be able to access information from anywhere, we should be able to buy exactly what we want any time of day, and we should even be able to find our perfect soul mate. Perhaps most profound of these changes is our expectation of what we should be able to get for free, including tools to run out business.

All this free stuff is a distraction and causes us to ask the wrong question.  Here is a better question: What is better than free?

You see, as a business owner, I have money. I do not need everything for free, particularly if it helps me be better at my core business.  There are things I value more than a $0 price tag. What you may ask?

1) Being Findable. The online world is more crowded than ever, and I want my very best prospects to be able to find me online when they’re ready to buy. That is more valuable than free for most business owners.

2) Having something customized. Again, every business owner I know is busy. If I could have a custom item fit my needs exactly which makes me happier and more effective, that is more valuable then free.

3) ROI. Any return on free is infinite, I get that.  However, I’m happy to pay something to generate a greater return. After all, I get to keep all the profits.

You could probably contribute items that cost relatively little yet add a great deal to your personal and/or professional life. So, we very quickly validate the premise that there are things much better than free. Now how about some specific examples that are much better than free and will improve your life and effectiveness almost instantly?

HiriseHQ is the best, simplest (It is best because it is so simple and easy to use) client data management program I have ever used. If you are a small business and need to track customers, projects, prospects, and your thoughts, this is a great program. Their $24 – $49 program
will serve most of your needs.  It is the best organizational tool used in my business.  They will give you free 30 day trial.

CloudProfile.com is the easiest way to become alive online. If you do not have a web presence, you’ll have one instantly and if you have a web site that is not generating enough business or your are not easily found on Google and local business directories, this $49 per month will likely provide a great ROI in very short order.  You will love the way you look online and you’ll also get a free 30 day trial to fall in love with this program.

EVoice.com allows me to manage all my inbound calls, find me where ever I am, forward messages and give my company a professional feel from the very first call. $29.95 spend here is much better than the free voice mail that comes on your phone system.  30 day free trial here as well.

Google Apps Premier will provide an instant return on your $50 per year. Customers, vendors, prospects will all make an instant judgment based on your company URL. Google will allow you to establish an email account for $50 per year per user with full functionality. Much better than free.

These business tools help me run a very successful and profitable business and are all much better than free.

You must have some tools you really love…?

What are the Best Free Business Tools Online? is a post from: Business Cash Advance provider Instant Capital Solutions.

One of the most popular innovations in small business financing over the past 10 years has been the business cash advance (merchant cash advance) industry.  This industry has provided billions to cash starved small business owners of almost every credit profile over the past decade.

Like most industries, the business loan alternative industry has continued to mature and offer different financing potions that are less expensive and have different requirements for the borrower.  A “non-bank business loan” is one of the most recent innovations in this maturing industry designed to provide loan alternatives to small business owners.

What is a “non-bank loan”?

It is an evolution from a traditional business cash advance.  As the business cash advance industry continues to mature I anticipate additional funding companies will step in and fill gaps in the marketplace.  Initially, business owners who could not get a traditional bank loan for any of a dozen reasons had only business cash advance as an alternative.  Even with great credit and a willingness to sign a personal guarantee, these owners were stuck with higher priced capital and shorter repayment periods.

Over the last year, a couple innovative financial companies have developed programs that have begun to fill this niche.  The first program I call a “non-bank business loan”.  This is an actual loan (unlike a business cash advance) and requires a personal guarantee from the borrower.  However, it is preferred over a cash advance because it is much less costly and does not require any change to your merchant processing company as many (not all) business cash advance companies do.

These programs do not require a change of credit card processor, they simply divide your stated repayment amount by 250 (business days in a calendar year) and take that amount as a fixed daily payment.  Some owners prefer a consistent daily payment which has an even impact on cash flow rather than the variable repayment that cash advance offers.  However, some prefer payments that reduce when revenue slows and increases during strong cash flow periods.  The choice is now yours.

As the economy has worsened over the past year, these companies have continued to provide financing to business owners who qualify, though some have reduced the amount of financing they are willing to offer.  While this funding is very welcomed, the amount of financing is often a source of frustration for business owners with larger financial needs.

What is a “private” non-bank loan?

This business loan alternative is virtually the same but is financed by private investment funds.  They typically offers the same pricing but larger funding amounts, and will typically require more documentation (2 years tax returns) than other funding alternatives, but offer an excellent combination of pricing and lending amount.  Many of these funds will lend up to 6% for your total annual sales (averaged over your last 2 years).  So, if you have averaged $1.5 million over the last two years, you should expect financing up to $90,000 if you qualify.

I expect to see the business loan alternative industry continue to become more creative and innovative as traditional bank loans and SBA loans fail to meet the needs of small business owners in search of working capital, business loans and growth opportunity financing.

Business Loan Alternative: Part II is a post from: Business Cash Advance provider Instant Capital Solutions.

Mid Year 2009 – Business Cash Advance Update is a post from: Business Cash Advance provider Instant Capital Solutions.

“We can’t solve problems with the same kind of thinking we used when we created them.”
– Albert Einstein

I wish I could report that the legislation our law makers finally passed on Friday will have immediate impact on the economy and capital will begin to flow into small business lending quickly

However, it will likely take several weeks before the Treasury Department can create room on lenders’ balance sheets and impact underwriting decisions that make capital available to small business owners.

Essentially, traditional business lending sources will continue to limit or freeze their lending activity for weeks.

There are no shortage of articles about small business credit crunches, including Concerns about how franchise restaurants will remodel or expand in Entrepreneurs Scramble for financing Even my local and Tight credit forces stores, restaurants to be flexible .

While these stories reflect the world of traditional lending, it does not tell the entire story of small business financing and the business cash advance industry which has stepped in to fill this capital void for greatfull business owners.

Business Cash Advance Capital, Lending Programs are Available

Truth is, in the past few months, many of the companies we work with to arrange client financing have raised hundreds of million of dollars in new capital, created new lending programs and seen a significant increase in their small business financing.

We are clearly in difficult times, but there are financing alternatives for small business owners in almost any industry with almost any credit profile.

Stay positive.

Small Business Finance – Much Better than Press Reports is a post from: Business Cash Advance provider Instant Capital Solutions.

Earlier this week I read a very interesting, front page article in the Wall Street Journal that discuss how consumers are scrambling to raise cash now with the economy slowing. It is obvious to me that some of these decisions will very likely have a negative, long term impact on their financial health.

As business owners deal with this economic slow down, it is helpful to have simple criteria to help with your financial decision making. One helpful question: “Will this strategy harm my company by reducing its long term value”?

It is certainly more fun to manage your business in a time of economic growth. However, decision making during slow periods often have a more important impact on how well your business performs in the long run. Small business owners understand that during slow times there is less profit. It is the long term enterprise value of the company that you want to protect.

Here are some of the non-conventional alternatives that business owners could consider as they look for working capital to survive this slow economic period. I hope it helps you with your decision making and ask you to reply with other options you have considered for financing your company.

Negative Loss of Loss of Permanent Negative

Credit Asset Company Economic Tax

Option Impact Control Equity Loss Impact

This economy is providing a wonderful opportunity for the business cash advance industry to prove its value to the business community. So far they have met that challenge as several companies have raised new capital to lend and are setting records for advances they are providing to business owners managing this recession.

While the cost of capital is more than traditional financing, it is available now and, when used properly, helps a business owner maintain or even enhancing the long term value of your company.

Long Term Planning for Short Term Cash Needs is a post from: Business Cash Advance provider Instant Capital Solutions.

Yesterday I was reading an industry publication and the chairman of a fairly large Merchant Services company commented that merchant cash advance is “a great product for add-on sales because ti gives the sales rep the advantage of having another product line to sell.”

I absolutely hate that language. I hate the idea of someone, particularly an industry person, referring to merchant cash advance as a product. It reflects a lack of appreciation and understanding for what this financial tool can really do for business owners if designed properly.

Yes, there is an element of sales with merchant cash advance, but there is (should be) more craftsmanship and design than salesmanship. The language is a reflection of a dominate culture in many companies that are supposed to serve business owners, not sell to them.

Last week I spoke with a restaurant owner who did not take a business cash advance because they could not afford to give up 25% of their Visa/Mastercard sales for repayment. We designed a funding amount that only required a 14% repayment and they were able to put the new funds to work to improve and expand their summer dinning area.

A day spa owner did not take the working capital she was approved for because it required her to change her current credit card processor. We arranged funding with a company that allowed her to keep her processor and sales are up over 12% with the new equipment she has in her spa.

A vet with a very successful pet hospital in Illinois had excellent personal and business credit and also needed equipment for her clinic. She did not like the expense of traditional business cash advance but did like the significant discount we arranged for her because of her credit profile. New equipment arrives next week.

I offer these as examples of carefully designed solutions, not products. As long as sales people view merchant cash advance as a “product” to sell instead of a solution to design and customize, the marketplace will remain under served.

When a “Great Product” is a Bad Idea is a post from: Business Cash Advance provider Instant Capital Solutions.

Maureen Farrell is a staff writer at Forbes.com and I think I can tell from her recent article that she is an academic who never had to make payroll or struggle for capital. The tone of her article paints anyone who has taken a merchant cash advance as stupid or foolish. Are there really that many stupid small business owners out there?

Most business owners seem to be pleased to have the opportunity to make a choice between “expensive” capital and none at all. Without this type of financing, who would provide the money to grow thousands of small business…the bank? The mortgage industry? Forbes? (Which I love by the way).

What surprises me is that Forbes knows how the free markets work. Capital flows in because of demand and because these funding companies can make a profit to justify their risk without regulation created by beaurocrats to protect business owners from themselves. If there is a great demand for merchant cash advance, it is because there is a great need not being met.

She also makes it seem like this is a product newly popular because of the recent credit crunch. In fact the industry was been around for 10 years now and provided over $500 million of financing to small business owners of all credit profiles in 2007.

I am also a small business owner and collectively we are the largest employer in the Unites States. We have a long history of being the back bone of American business and the engine of creativity. I am surprised Ms. Farrell and Forbes would not give us credit for having the ability to make intelligent business decisions about capital and the growth of our businesses.

Don’t You Love the Ivory Tower… is a post from: Business Cash Advance provider Instant Capital Solutions.