Information About Getting Business Insurance Business Articles | May 12 Benoit Pouliot Youth Jersey , 2010
Business insurance is very important when owning and maintaining a business. Therefore, buying into the right insurance is crucial. That is why there are several different types of insurance a business owner has to choose from when deciding what insurance is best suited for his or her business.


Business insurance is very important when owning and maintaining a business. Therefore, buying into the right insurance is crucial. That is why there are several different types of insurance a business owner has to choose from when deciding what insurance is best suited for his or her business.

For starters there is general liability insurance. This insurance covers legal issues regarding accident and injuries. This type of insurance also covers medical expenses, property damage, libel Rasmus Ristolainen Youth Jersey , slander and several other issues.

There is also business insurance called product liability. It covers all things related to retail, shipping and receiving. If products are damaged, this insurance covers the damages items. This insurance also helps protect the business owner against financial loss if a product is broken or has a defect.

Professional liability is another type of insurance that some business owners choose to have. This insurance helps with malpractice and errors. Professional liability insurance is usually best suited for doctors who have their own practice.

Commercial property insurance is a type of business insurance that helps protect the business owner against the loss of property or damaged property. Commercial property insurance includes everything from the building the business is located in to the contents inside the building.

Home based business insurance is one of the last types of business insurance a business owner can obtain for his or her business. Homeowners insurance does not cover business related items unless a specific rider can be added on to cover business related risks. However, with home based business insurance it is good to pick up other insurances that will cover other problems if they should arise.

Article Tags: Business Insurance, Business Owner

>Finance Your Restaurant Business With Someone Else's Credit Card

Posted by nick_niesen on October 29th Robin Lehner Youth Jersey , 2010


If you are in the restaurant business, you certainly won't need me to tell you how tough it can be financially.


While you are building up the reputation of your establishment, money is often tight and one bad night can mean an unprofitable week. As for cash flow - well, the cash certainly flows, doesn't it? You just wish that more of it was flowing in than out. And what about those slow periods? What do you do if they last longer than you anticipated? How do you get the funds you need to get your restaurant business over that hump.


OK Zemgus Girgensons Youth Jersey , I'm painting a negative picture here, but funding can be a problem for even the most successful restaurant, especially if you wish to expand quickly. The question remains: what is the best way to get financing for your restaurant?


LOANS


A loan may be an obvious way to raise finance for your restaurant business, but look at it from the point of view of the lender.


The 2004 Restaurant Industry Operations Report published by Deloitte & Touche LLP indicates that average pre-tax profit margins range from 4-7%. This means that, from the lender's point of view Sam Reinhart Youth Jersey , even a profitable restaurant is a big risk. The bigger the risk, the bigger the interest payments - that is, if you even get approved for a loan at all. High interest rates, of course, can bring their own problems Johan Larsson Youth Jersey , particularly for a very low margin business such as the restaurant trade.


Lenders will, admittedly, look more favorably on you if you also own your premises. However, you need to be aware that funding your business using real estate as collateral means that it is the potential resale value of the property that lenders are looking at. The purpose of the property itself may actually reduce its resale value as there would be a smaller pool of potential purchasers. Thus, many lenders set very high minimum loan amounts Kyle Okposo Youth Jersey , which may not be suitable for your particular circumstances.


If you do decide to go the loan route, then speaking to a specialist lender with expertise in the restaurant industry is essential.


ACCOUNTS RECEIVABLE FACTORING


Factoring is a form of commercial finance where a business can accelerate its cashflow by selling its accounts receivable at a discount. This means that the business doesn't have to wait for outstanding invoices to be paid in order to receive the cash necessary to finance the business moving forward.


For many service based businesses, accounts receivable factoring is an extremely good way of quickly accessing cash. However, restaurants rarely have much business of this kind.


What they do have, however Jake McCabe Youth Jersey , is a high volume of credit card transactions. By leveraging these, budding restauranters can - literally - fund their restaurants with other people's credit cards.


CREDIT CARD CARD FACTORING


Essentially, restaurants can sell their future credit card transactions and receive an advance on that money - usually up to around $120,000. The money can be used for any purpose - from expanding premises to buying new equipment or whatever you want. This isn't a loan, so there is no personal guarantee needed. It's simply an advance against future credit card settlements.