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Sunday, December 6, 2015

Axis Capital Business Funding Review, How to Avoid Debts

Jakarta, Indonesia - Being a small business owner is hard. The responsibility of keeping your company stable, managing your employees, and keeping up with your competitors are hard enough to tackle. Dealing with your customers is another thing and perhaps the most challenging. Since you are just a start up, clients are important since they can give either good or bad review about your company that can greatly impact your business. If you are still not experiencing some kind of issue with your customers, it is better for you be prepared than be sorry later on. To prevent being drowned in debts, you can review the following steps:

1. Verify Customer’s Information

It is always better to verify anything first before plunging into a business deal. Just because you are in need of customer, it does not mean that you are to grab every possible sale. You also have to see their capability to pay especially if your services and/or products are on installment basis. It is also best to keep tabs with businesses of the same field. This way, you are able to know if a certain customer is in a habit of making non- or late payments.

2. Put Everything in Black and White

Documenting everything is vital in every transaction in case worse comes to worst. With the verified information including your client’s identity and their compliance and agreement, you can be rest assured that you are covered by that single piece of paper in case complaints would pour in or if needed for proof of fraud.

3. Draw up terms and conditions

Aside from the agreement in a written paper, you also have to have a foundation of your business regulations through a policy. These terms and conditions should be transparent to both parties. Any alterations, adjustments or changes can be done after the client have known and have been educated of the rule of the trade.

4. Keep open any communication

Any changes and alterations after the agreement and terms and conditions have been signed should be known by both parties. Or in case of unpaid charges, it may be that the customer had just forgotten. It is your right to follow up on them and their responsibility to give you active contact information.

5. Have a Plan B

Many businesses experience customers who – for one reason or another – may have delayed payments. You could consider putting the customer’s credit facility on hold preventing any further credit sales until the account is cleared or find any other alternative to resolve the issue. 

Thursday, November 19, 2015


Small Business Loans Options

We are often confused between loan and debts. For common people, it may be the same. However, for businesses, it is completely different. See, when an individual want to set up a business and does not have enough money to finance it, he would ask for a loan. On the other hand, a debt is described as borrowing money for any other purposes. Besides, it makes it less embarrassing when you are tagged as someone having ample amounts of loan other than someone who has a lot of debts.

Axis Capital Business Funding, credit source for small business owners in the United States, had summarized solutions to assist entrepreneurs in acquiring financial assistance to start and maintain a business. This article is centered on loan options and what you need to qualify.

Before getting into the business proper, you should have already considered the following factors:

Time In Business
Personal Credit Scores
Business Revenues/profits
Collateral, if you have any to back up the loan

Generally, basic rule in business indicates that the longer you are in the business industry, the more you have collateral in possession and the lower your interest will be. However, this rule does not apply to all especially to start ups.

The financing option that can be open to you also depends on the urgency of need, the nature of the business, the location and on how you are going to be paid whether through invoices, credit cards, cash or any other means.

Loans are mostly backed up by banks and can allow you to loan between $5 thousand to $5 million. Certain qualifications, however, are required. Minimum business experience should be 2 years in the United States. This rule is stricter to that of developing cities Singapore, Hong Kong, Jakarta, Indonesia and Kuala Lumpur, Malaysia since bank rules follow stricter and detailed protocols. You may also need to create a detailed proposal and feasible report. The process may even last for weeks to month before approval since most bank conduct strenuous reviews, charges or complaints against you or any other loan records.

Credit score is also a vital factor in bank loans. Your digits should not be less than 600. For independent loan companies, however, credit scores is a requirement but no exact cap is being implemented. You can also loan short-term assistance which can be paid back within 2-3 months and borrow up to $250,000. This is most suitable for owners with lower credit scores. 

Tuesday, November 17, 2015


How to Find a New Business to Invest In

Startup investing can be challenging in a way if you do not know which business to venture into. A lot of individuals have been carelessly getting into businesses when any opportunity shows only to realize in the end that they have been scammed.

We all have that same fear within us. Getting into a business and risking ample amount of money, time and effort is not something one can easily get into and get out of once it fails. There are millions of businesses worldwide and with each- not counting the fraudulent ones- we do not know which would succeed. Yet, as many experts and professionals say, risks are and will always be a part of entrepreneurial life. Any investment, if pursued diligently, doubles a capital. Although challenging, many investors have been able to surpass.

Axis Capital Business Funding, one of the leading sources of credit loan for small business owners across the United States has the privilege to interview some of the most successful business owners and investors for some tips on how to find the most suitable business to invest into:

Explore in a Familiar Ground

If you are just starting to invest, it is best to put your bet into something which is already comfortable to you. This way, you can reduce the risk since you are already wading into a familiar wave. The ins and outs that you know of the business can provide you with a good projection on what to expect and assuring your venture.

Research and Review the Legitimacy of the Company

Before showing up at the door and offering them your ideas and willingness to invest, make sure you know the real nature of the business, the number of years of operation and the people behind it. As quoted from a finance investor in Jakarta, Indonesia, “investing is like going into a boxing match. You have to know things about your opponent: learn their moves and know how to knock them down”. Although investment is not a bloody fight just like boxing is and the company is not an opponent but more of an opportunity, being informed and educated about them can be very beneficial.

Examine the way of the market

It is absolutely critical to see what competition the startup has and what kind of competitive advantage they have been able to put in place in order to beat everyone else in the race. The competition could acquire the startup instead of cloning their work, so investigating the appetite in the market could be beneficial.

Monday, November 16, 2015


Axis Capital Business Finding Review: Realities of Business and Economics for Startups

Axis Capital Group Business Funding - When we are thinking of successful enterprises, the first thing that comes to mind is the big companies like Google, Nestle, Goodyear, Apple etcetera. We instantly inspire ourselves to follow their lead. What new entrepreneurs do not actually understand is that these companies have been in the industry for a long time, sometimes, experiencing more downfall than we could imagine.

We recognize the penetration of small businesses in today’s market but we are often unaware of the struggles they go through to integrate their service and products to follow the demands of the complicated customers. What these entrepreneurs often thought of as a smooth flow after surpassing pre-business stage to the first two years is a reality of continuous challenges and hindrances that should be defeated even in the long run.

Analysts estimate the time needed to create visible revenue would only be after five years. Some small business startups do not have the perseverance and resources to withstand for that long time. Those who manage can even barely get through and maintain.

It gets more challenging in developing countries where competition is fierce and the market is elusive. Most of the time, external forces affect economic sustainability of a business. The changes of government regulations, complaints and lawsuits, constant evolution of new technology and global recession can hit any startup companies.

Jake had just started his business of clothing retail in northern Jakarta in Indonesia when the recession hit the world in 2008. Moreover, clothing line and related business also started to boom, adding to the competition. With the expensive cost of branded clothing and the economic status affecting almost every household, customers tend to buy fraudulent designs from fly-by-night markets which also began increasing in Jakarta during that time. With a huge amount of debt and a family to feed, Jake had almost lost his mind. The imagination which he pictured would be perfect business stability with little challenges he could handle was like a bubble burst by the realities for startup companies.

Jake’s was only a small business using small capital. Imagine how it is for startups who invested big amount of money, loaned and in the expense of a house or a car. Since these challenges may seem severe, it is high time for new entrepreneurs to steel themselves for the inevitable potholes. Managing startup companies means not only managing expansion but also understanding how to manage downturns so as to increase the likelihood that the company will return to the growth path.

Monday, October 19, 2015


How to Plan a Business Event for Small Business Owners

54 small business owners attended the 3rd BtoB Convention held by Axis Capital Business Funding last September 15, 2015 at the Grand Indonesia Hotel, Jakarta.

At the end of the seminar, Kara Parker, event specialist, shared how she was approached by a young man in his early 20s who introduced himself as Kajar Serman, a small upcylcing business owner in North Jakarta. Kajar, as Kara later learned had been pursuing his unique passion for recycling unused stuff and making them into a whole new usable material since his college days. Now that he has already graduated, he is already able to loan small amount of capital from Axis and have rented a small shop in Kota. Later on, he was also able to get a small stand in Plaza Indonesia mall, a few blocks away from their house. He says that the business had been growing and managing it is a great challenge but like many small business owners, he is already happy with what he has achieved. He later confessed that he thought of holding a small event for small business owners like himself and is attending the convention to learn how to do it.

Just like Kajar, small business owners also dream of holding their own seminars and conventions. Not only does this expand your network but it is also a great source of new ideas and business strategies from competitors and other industries. It also comes with a few challenges.

Small business owners, compared to large businesses, have lower assurance of attendees and are operating in a tight budget. Yet, there are some ways to address these issues such as the following:

Know your objective

Have a concrete idea on the theme of your event and pattern your program on it. You have to have a specific idea on the possible overall outcome that you are targeting to keep you on the right track. Review all the probable topics related to the nature of your business and focus on the most impacting one.

Discuss the Budget

The planning of your event, no matter how grand it is, cannot be achieved if you are under budget. It also does not make any sense if you spend before you accounting all your expenses. It is important to keep the project on budget or you’ll end up with more complaints than gain.

Schedule the Event

Find some time which is mostly convenient for your guests. Pick a date which is not a busy one for your attendees. Research is the key
Be Confident

You are the expert in your business and treat the audience as students who need to learn from you.

Thursday, October 15, 2015

Ways to Avoid Over Budgeting In Your Business

Axis Capital Business Funding Group in Jakarta Review - Jakarta, Indonesia - You have finally been granted a loan for your dream business. Having that ample amount of money gives you a lot of ideas and makes you plan exciting concepts. The opportunities are limitless.  The only problem is you don’t know where to start. You may deem yourself capable and expert when it comes to the nature of your business, the ins and outs in the market and what niche and audience to target but bookkeeping is something you are not trained for. The good thing is, you have already been able to estimate the cost and inclusions, the liabilities and possible profits. The only issue is to maintain the cash flow and regulate it, be able to pay off loans and still get a good ROI.

According to Axis Capital Business Funding, a credit loan source for small business owners in America, most businesses suffer bankruptcy because of improper handling of budget. As there are more pressure for start-ups and small companies, management administration is a big factor in determining the success of the business. Monthly statements come afterwards that is why some business owners have no idea that they have already spent more than what the budget provided for.

With the business up and running, you may already have the idea on the trend in your profit by reviewing the consistent operational system. For start-ups, the assumptions can be based on the trends through geographical location, average competition costs and revenues and ratio of the market to the local businesses.

Planning the budget ahead of its execution is to prevent over spending. Here are some of things you can do:

1.         Learn about the Industry standards

Although businesses are different in nature, they are still bound by some similarities. Do some research on local industries on similar fields. Ask around for the average revenue expected and their allocations on cost groupings. The information may give you a general idea and will be able to keep you up with expenses.

2.         Create a spreadsheet

Spreadsheets are oftentimes considered tedious. With the operation continuously running everyday, updating it can also be tiresome. Yet, having a spreadsheet for the expenditures and revenues can help you monitor the finances.

3.         Consider Cost Cutting

Some factors which contribute to over budgeting is allocating on projects when you shouldn’t be. Know what is not needed and cut it out. While doing this, expect to hear complaints and experience frustrations and prepare yourself for it.

Tuesday, July 7, 2015


Axis Capital Funding: Improvement in Credit Scores

Since the global economic downfall in 2008 which caused many stocks to plummet and left many individuals in debts, the world has known its lesson. Thanks to the efforts of many people, nations are slowly regaining its former glory.

The country to be most affected is the United States of America. The great recession which started in December 2007 to June 2009 of almost 19 months has affected countries of as far Indonesia and Africa.

According to Axis Capital Business Funding Group, a source of credit loans for small business owners in USA, this downturn in economic activity served as a lesson for current trend in credit ratings of individuals.

As credit scores improve, the flow of credit to consumers will increase. In the first three months of 2015, credit card balances increased by over $20 billion and this trend is expected to accelerate. People are applying for more credit, and banks are more willing to lend.

In many cities, individual credit scores also increased in percentage as many people are becoming aware of its importance. In Jakarta, scams and fraudsters who greatly affect the city’s economy are slowly decreasing in number. In Singapore, certain limitations are being set for loans and cautious computation is being sought after.

After the crisis, we learned our lesson and went through a period of difficult de-leveraging and responsible budgeting. Banks also learned their lessons, and are now only making loans to creditworthy borrowers with stable jobs and good income. However, this convenient narrative ignores two simple facts. First, a big part of the de-leveraging resulted from banks writing off bad debt. And second, most negative information disappears from your credit report in 7 years, including home foreclosures. Even Chapter 7 bankruptcy, which is the ultimate negative mark, is gone after 10 years.

The Great Recession happened 7 years ago. Over the next few years, the negative marks of the Great Recession will disappear completely from the nation’s credit reports. Scores will increase. And banks will start lending to the same people, again.

When a bank makes a lending decision, it is based upon information available in credit reports. The credit scoring models can only use data available on credit reports. And almost all negative information is gone in 7 years. According to FICO, “it’s a common misconception that a foreclosure will ruin your score for a very long time. In fact, if you keep all of your other credit obligations in good standing, your FICO can rebound in as little as 2 years.”

Because most banks tightened credit after the 2008 crisis, it became almost impossible to get new credit. And, as a result, it became very difficult for people to borrow too much because the credit just wasn’t available. But now it is.

Our credit scoring system is built to have an automatic credit score jubilee. Mistakes and negative events in the past will be forgotten. Over time, our scores will improve so long as we don’t get drunk on credit too quickly.