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Holiday Small Business Financing

Posted by daniela in Max Advance - (0 Comments)

business financingTypically the holidays are a period of positivity and joy. This affects the day -to- day results of the markets during the few weeks leading up to New Year’s, when everyone is really going to stick to their resolutions and the markets bounce upwards. But behind this seasonal optimism are over-bullish expectations, since credit is still tight and there are signs around the world (particularly in Europe) of an oncoming recession. While there is a 30% chance, according to John Hussman, that these gains will continue, it seems more likely that these upward-pointing sessions will find their lows within the coming weeks.

Does that mean that now is the right time for small business financing? Yes. With everyone in a good mood as prospects for the New Year are riding the holiday bump, now is a great time for business financing, if you’re small business needs it. If it doesn’t, you may want to wait a few weeks to see if these marketplace trends will continue before reinvesting in your growth for the new year. While the U.S. likely won’t suffer as much as Europe, chances are it will likely experience anemic growth. So take advantage while you can; you’ll be glad you did.

 

 

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Small Business Financing For The Euro

Posted by daniela in Small Business Financing - (0 Comments)

business financingIt seems that the world is entering another recession due to Europe’s troubles. The recession will likely be mild, however, largely because the Euro, the world’s strongest currency, will likely decrease in value (it’s already at an 11-month low). And as confidence  continues to decrease in the Euro, it will drop further, boosting exports and encouraging trade.

The fudging has been relatively continuous, but last week was pivotal. Britain’s veto at the EU summit means that the EU could very well become even more conservative and that its financial capital could move to Brussels, Paris, Frankfurt, or even Vienna. Unfortunately for the EU, its intentions are to punish profligacy and excess, and as a result austerity is on everyone’s minds. But what the economies of these countries need is more business working capital, which was in effect promised by the ECB. But it’s not enough — banks are scared of taking losses on goverment debt. There are murmurs across Europe that Germany is making good on everyone else’s losses, but Mario Draghi insists that the ECB will not print any more Euros.

Small business financing is still a good idea. Take a lesson from Europe’s mistakes. Re-invest in your small business and save austerity for when you need to.

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European Countries Repaying Debt Should Be Akin to Business Financing

Posted by daniela in Small Business Financing - (0 Comments)

business financingThe Euro Zone is worrying the rest of the world into recession. Alas, with so much debt, and Mario Draghi’s refusal to print more Euros, there aren’t many options analogous to business financing for countries teetering on insolvency. But one possible solution involves making debt yields credible on conversion.

If instead of default, conversion back to pre-Euro currency, such as the drachma or lira, became an option, there would still be premiums to pay, but they wouldn’t be as high. Moreover, the country itself would be responsibly for adopting a more credible fiscal policy, which in turn would prevent expectations that bigger more solvent countries could bail out the weaker ones. Thus, the while the country would stay in the Euro Zone and have an incentive to follow stricter fiscal policy. If a country were following an unsound fiscal policy, conversion premiums would rise and depreciation would ensue.

And since Euro bonds have a maturity of about seven years, such a tactic would allow enough time for individual countries to reassess their current track. Thus, the analogy allows countries to repay their debt much in the same way business cash advances are repaid, with possible discretion affecting future credit in terms of pre-Euro currency. Here’s hoping it all works out.

 

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Business Financing In Greece Is Bad

Posted by daniela in Max Advance | Small Business Financing - (0 Comments)

business financingAll signs point to a recession. Despite positive numbers from the United States last week, Europe already has shown signs that is heading towards negative growth. This week when European leaders meet to decide how to improve consumer’s faith in the euro, they will discuss formal treaty changes, which would allow austerity and fiscal discipline measures to kick in for profligate countries. Germany is set on seeing that this never happens again. But the problem is not resolved. Business financing in Greece remains a mess. Greek bond yields have reached record highs and Germany, right now at least, absolutely refuses to print new Euros. It’s a liquidity problem at this point, not a fiscal one. The world refuses to believe that a European country could default and revert back to their pre-Euro currency and instead of taking preparatory actions, are continuing to kick the can down the road.

The good news is that the United States will somewhat return to its pre-recession state of power. Dollars will be more easily loaned to struggling European countries, which means that there will be more demand for them. This will make it an even better time to consider business cash advances in the U.S. and to travel to Europe!

 

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Africa and Business Financing

Posted by daniela in Max Advance - (0 Comments)

business financingAround the world people are worried about Europe, but there are hopeful signs — especially in Africa.

Although most of the continent doesn’t have the option of working capital for business, since many of their farms are communal and it’s difficult for individuals to get credit, they still have shown enormous development. Part of this is due to decreasing birth rates, which are still far and away higher than those now falling off in Latin America and Asia. Coupled with more productivity, coming mostly in the form of manufacturing and commodities, largely from investors in China, that means that more people are entering the work force with fewer dependents, which means more growth. The rising of this ratio of workers to dependents began some three decades ago in Asia and is now trailing off. In Africa it is just starting.

Although many African nations are still embroiled in governmental corruption and election based imbroglios, the continent as a whole is expected to grow at 6% over the next two years, about as much as China. If political leaders begin to honor Western notions of democratic elections, business financing and working capital for business will soon be available for the middle class.

Meanwhile, the American economy is chugging along and is expected to grow 2% in 2012. Which is good news if you want business financing.

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Small Business Financing Is Okay for the U.S., But Europe…

Posted by daniela in Small Business Financing - (0 Comments)

business financingLate last week the ECB began aggressively buying Italian debt in the hopes that Italian business financing and reduction of debt will become more feasible. However, if this strategy continues among more signs of a weakening global economy, it seems unlikely that buying debt and printing more money will please more financially solvent countries, such as Germany. Severe Euro inflation is a good way to prevent weak economies defaulting but it also punishes stronger countries who can still obtain working capital for business fairly easily.

While the possible solutions include a stronger union among E.U. members, this may become more difficult if economic conditions continue to lag. What is more likely is that weaker countries will default and return to their respective pre-Euro currencies. This sounds catastrophic now, but in the wake of another recession it will begin to make more sense. Part of the reason there are no good options is that it is impossible to have a monetary union without a political union, or at least a way to control fiscal policy.

It will be a few months before the world as a whole begins to recognize this. In the meanwhile, small business financing in the United States won’t be a problem. Our growth will only be impeded by the global economy.

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Bad News for Italian Business Financing

Posted by daniela in Small Business Financing - (0 Comments)

small business financingItaly’s bond yields moved past 7.5% last week and it has frightened investors so much that they worry about the future of the Euro. Borrowing costs for Italian small business financing are much higher than they were before the crisis. If Italy is shut off from the bond markets it will mean the beginning of the end for the Euro as we know it.

Weak political leadership, as demonstrated first by Greece and now by Italy’s Berlusconi, shows that these countries are unable to deal with their debts and reform their economies. If Italy can’t finance itself and the rest of the Euro can’t or won’t, it will make EU membership that much less appealing. If Italy is forced to default, why not just back out and return to the lira?

Technically, it wouldn’t be so bad. The social and financial chaos is the messy part. Business financing in euros would be the best option but  those that couldn’t afford it would go under. Other countries would scramble to avoid the massively deflated lira and ripples would be felt around the world. There has already been talk about two Euro Zones: one core of ten countries with France and Germany heading them, and another slower-pace for other countries who don’t fit the mold.

Right now, there’s no telling what can happen.

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Greece, Layoffs and Business Financing

Posted by daniela in Max Advance - (0 Comments)

business financingWhat exactly is the deal in Greece? Well their new government isn’t as bad as it sounds, which is why markets remain uncertain and not necessarily bearish.

Greece has a long history of political dichotomy. In fact, it led to civil war in the ’40s. The result is akin to contemporary American politics in that it makes it difficult to implement political decisions without meeting great resistance.

The new government will be headed by a former governor of the Bank of Greece and former vice president of the European Central Bank, Lucas Papademos. He’s also an MIT alum who currently teaches at the Kennedy School of Government at Harvard. He’ll likely work to strengthen small business financing while restructuring governmental pensions and laying off many workers. But his success lies largely in how the unions react.

As yields on Italian bonds rose today to their highest levels in over ten years, there is still much wariness in global markets. After Italy, there are Portugal, Ireland, Spain and France.

Here the economy is fragile too, doing slightly worse than expected in most figures relating to business growth. Despite this, there are strong spots. Business financing is one, so is the home rental market. For now we’ll have to wait.

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Greece Can’t Have Small Business Financing

Posted by daniela in Small Business Financing - (0 Comments)

business cash advanceToday, markets learned that the birthplace of democracy will hold a referendum on whether or not to accept German aid. It will take place sometime in January, with a yes vote meaning greater austerity, and a no vote meaning that they will default on their debt and leave the E.U., returning to the drachma, and imposing even harsher fiscal austerity upon themselves. That means no small business financing for any Greek businesses and across the board belt-tightening.

If the Greeks had it their way, they’d push for no austerity and acceptance of the E.U.-lent monies. But German voters want them to suffer a little bit.

Luckily we live in the United States. We don’t have inter-state bailouts, thankfully. And with news last week that the economy grew over 2% in the third quarter, American confidence in the economy is relatively high, with little sign of a double-dip recession, although manufacturing slowed slightly in October. That allows us to continue  opting for small business financing and business cash advances when necessary.

If you’re thinking about a merchant cash advance, go ahead and do it! What happens in Greece isn’t going to affect what you do in your business’ investments. The time is now!

 

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The Euro Zone Could Still Use More Business Financing

Posted by daniela in Small Business Financing - (0 Comments)

business financingThe 1% may have been getting richer these past few decades, but there’s more to the global outrage than that. Take, for example, the new European debt rescue plan. Everyone’s excited, but the fact is that it’s not a panacea for Europe’s problems. They could still use a round of business financing from Germany…

The best news is that Greek’s debt has been written down. But the possibility for other solvent countries, such as Italy, to find themselves in a similar situation in the near future still runs high. The problem remains that northern creditor countries, such as Germany, are reluctant to put more money in the pot for fear that it will bubble over, and leave them burned. Since the Greek writedown is voluntary, there is no guarantee that Euro zone debt will be insured in the future. Ultimately, this is a step in the right direction, but it still leaves a lot unsaid, and offers a lot of time for things to go wrong.

Meanwhile protests continue on Wall Street and around the world. Most people are still frustrated, although new figures show that the economy grew 2.5% in the third quarter, which is reassuring, especially for those considering working capital for business. There’s still uncertainty in the air, but that shouldn’t prevent you from expanding your business with business financing.

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