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Real Estate Home Foreclosure Legal Notice And Keys
Many strategies to pay off debt fail because there’s no real enthusiasm behind them. You may start out fully motivated to become debt free, but you can easily become disheartened at the time and lose the effort it takes to see your plan all the way through. If you want to keep momentum in your debt payoff, you have to repeatedly remind yourself of the motives you have to get out of debt by inspecting your bookkeeping records in detail.

Secured Loans

A secured debt is one that is backed by some sort of collateral or asset.  This mainly means that the creditor will “hold” the collateral until you pay off the loan.  While the asset is held as insurance or security for the loan, you cannot deal with the asset in any way without the moneylender’s consent. If for any purpose you default on the debt, the financier has the right to take proprietorship of the asset and sell it to repay the debt. This is also recognized as “foreclosure” or a “mortgagee sale”. Typically, secured loans draw a lower rate of interest.  That is because the risk involved for the lender is a little less. The creditor will not usually lend 100% of the value of the asset because the lender is decreasing its risks of sustaining a loss in the event of foreclosure.

Many businesses owe secured debts—companies usually pledge collateral for credit lines and business holders often pledge their personal property for corporate debts.

Repossessions

For instance, if you miss a payment or two on your car loan, the creditor has the legal right to physically repossess the car and sell it to recover the money you owe plus the costs of the sale and attorney’s fees. To do this, the investor does not have to get consent or a court judgment. Under the terms of the agreement you signed with the lender, a repo man can regain the lender’s property. When all is said and finished, you will still owe the difference between what the creditors sell the car for and what you owed on the loan, called a “deficiency”. Also, the repossession will appear on your credit report for seven years.

Cars are the most commonly repossessed type of property, but if you  have borrowed money to buy business equipment or machines and used the purchased equipment as security, the creditor will have the same repossession privileges.

Foreclosures

If you have a mortgage, deed of trust in your house, or an open home equity line of credit, you must make payments on time to keep the house. If you don’t, the creditor can and possibly will foreclose on your house because it is collateral for your debt. But foreclosures are not as swift as vehicle repossessions. Likewise, if you pledge your home as collateral for a corporate loan or line of credit and you default on that loan, the lender can foreclose on your house. To avoid having the lender foreclose, you must either repay the debtor, if the debt is more than your equity in the house, or at least pay the moneylender that sum so that it no longer has a reason to foreclose.

The foreclosure procedure works differently in different countries. A judicial foreclosure normally takes a few months longer than a non-judicial foreclosure, giving you time to save some cash and, if required, find a new place to live.

Avoiding Foreclosure

If you’re behind on your debt, you might be able to negotiate a loan modification with your creditor. Your other options are selling your home for less than you owe (called a short sale) or returning the deed to the lender (called a deed in lieu of foreclosure).

Final Note

Defaulting on a personal loan will bring numerous consequences depending on how the loan agreement was initially attained and how were your bookkeeping records defined. Defaulting on any type of debt, large or small, will have universal financial consequences.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Protecting Assets From Domino Effect. Stop Loss Concept For Stock Exchange Market.
A lot of business owners have misconceptions regarding the law concerning the relationship between the proprietorship and the owner. Because of that, they usually go for expensive plans for protection of their assets. These plans don’t usually work out in the end. Furthermore, some people avoid these plans hoping that their venture won’t face any kind of lawsuit or accident.

It is essential for one to protect their personal assets from the threats that might be posed by the liabilities of a business.

Below is a guide on a few ways to ensure that, if something goes wrong with your business, your assets are safe from the horrors of being seized or confiscated.

The Entity of Your Business

Many businesspersons set up a sole proprietorship when starting out with their business. However, this option is not the safest one when we are talking in regards to protection of personal assets. This is because, being a sole proprietorship, the owner and the business are considered the same entity and both kinds of assets (work related and personal) come under the same category, exposing your own wealth to the threat of a lawsuit. In that case, your firm isn’t able to pay off its liabilities on its own and you’ll have to pay for them yourself out of your own pocket.

In order to set up the business as an entity, which is separate from the owner, it must be registered as a limited liability company or a corporation. You can even go for a two-layer protection, such as having the assets under an LLC and operations under the name of a corporation. Such mixture of multiple entities make it difficult for any kind of lawsuit to affect you personally.

Segregate Work and Personal Finances

You may think that only setting up your business as a separate entity will not provide adequate protection of your personal wealth. You can start this by separating financial documents, operating the company with checkbooks and other documents issued in the company’s name. All property and assets registered in the name of your company will strengthen the protection.

You need to make sure that you follow all regulations that corporations and limited liability companies are required to follow, paying the proper fees and maintaining all documents as demanded by the regulations. If all documentation is properly insured, the business will be saved from a lot of hassle in recreating documents when it comes to a lawsuit. It will also save you, as an owner, from being personally liable for what may have caused the lawsuit.

Take all Possible Precautions to Prevent Lawsuits

This won’t only keep lawsuits away from you but will also help a lot if you ever face one. This also means that you can’t sit back and relax if you’ve registered your business as a separate entity and have ensured the protection of your assets through separating them from the business entirely. You still need to take measures, such as putting up signs where there are safety hazards and ensuring that the quality of your product isn’t questionable and doesn’t violate any set standards required by the law. If you operate with negligence, the lawsuit can attack your personal assets.

Asset Protection vs. Insurance

There are multiple “asset protection” companies that advise methods to avoid insurance by hiding your personal wealth. You shouldn’t fall into such schemes because it is essential for your business to have proper insurance. They help take the bullet shot by creditors and suing individuals and can usually handle incidents in which the safety of assets (business or personal) is under threat.

However, it is integral that you get the correct policy, the kind of which varies with each and every specification. You can even have separate insurance companies provide protection for the entity and the assets of your business. You can get a review of your company from the insurance agent in order to know what the right policies for your business might be. It might sound confusing at first but once you get to know the basics, you’ll be able to streamline your insurance policy to suit each and every need of your business.

Conclusion

If you really want to protect your personal assets from the liabilities at the workplace, you can start by applying what is mentioned in this guide. It is recommended that you consult a licensed attorney with relevant experience. Once you’re done following the outlined steps, the risk to your personal wealth will be minimal and you can operate your business with peace of mind.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

risk management concept
These days, everyone is excited to be an entrepreneur and the thought of starting one’s own business sounds more attractive than ever. It is a fact that risks are abundant in the world of entrepreneurship, the main reason why many people don’t work on their ideas. However, if one understands these risks properly, a start-up strategy can become pretty successful.

Make an in-depth analysis of current businesses that are new in the market. There are five main risks in the beginning of any kind of business. Identifying these early and making up a strategy to handle them can prove to be highly beneficial for your start-up.

Product Risk

One of the primary decisions you will make in your start-up venture is deciding what you want to sell. Which is, of course, the easy part. However, in order to sell your product, you will have to describe the need for it. This can be done by showcasing the problems that your product solves or explaining the reasons why people should purchase your product. If you’re unable to attract attention to your product, it is probable that your business might in disaster.

Market Risk

It is essential for any business to know about the market it is going to tap into. This ranges from the demands of the customers to whatever is offered by your business competitors. A thorough analysis of this risk is considered crucial for entrepreneurial success. Once the entire statistics are properly researched and all problems are properly identified, you can build your strategy. Getting into the market at the right time ensures the success of your idea.

Financial Risk

Financing an idea may be one of the biggest reasons why people hold back on their start-up. However, these days, there are many ways to raise money for your project. Tools like Indiegogo and Kickstarter are great sources of crowdfunding. Moreover, budding entrepreneurs also have the option of getting investments from other sources such as family, friends, angel investors and VCs.  

However, in order to be funded, any business must set its goals in a clear and comprehensive way. Setting up a proper strategy not only attracts the trust of investors but also helps your company get momentum in the direction that will lead it to major milestones. However, without proper evaluation and effort, a business plan might not be able to gain the confidence of leading investors. This causes risks of financial failure.

Team Risk

What one person can’t achieve, a team surely can. This is the reason why it is extremely important to have a group of people and a mentor or confidante to aid in preparation of all the challenges involved. Your team can help you increase the reach of your product which will assist in your business’s start-up growth.

As an entrepreneur, you are a leader and you need to have the best team on board. Invite people in who you can trust because the people in your business will be the ones working to propel your company to success.

Execution Risk

Sometimes, start-up founders get into the tiniest of details which causes them to be distracted from the important task of planning and strategy building. At other times, they are much more focused on the high levels so they ignore the small things which hampers their company’s productivity and/or efficiency.

There needs to be a proper focus on the entire spectrum for proper business execution as it ensures success in the long run. Once you’ve understood the risks in execution, you can find a proper blend of the attention you give to the specifics and to the bigger tasks.

Conclusion

In the end, there are some risks that you have control of and others depend upon your long-term and short-term thoughtfulness. Whatever it may be, properly evaluating each risk and participating in business execution can help your start-up avoid these risks. Making the changes that you deem necessary can surely help in steering your business towards success.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.