Home Based Travel Agent - October 2008 - (Page 14)

YOUR Lifeline Continued from page 12 sba.gov) does offer SBA loan programs available through financial institutions; in essence, the SBA puts its backing behind a certain percentage of the loan, making banks more willing to lend. But you must show you can’t get traditional financing at a reasonable rate, personally guarantee the loan, and demonstrate adequate cash flow. Talk to your bank. I Home Equity Loans: Yes, banks are still making these if you have adequate equity in your residence. Lived there just a few years? Then you may not have enough equity, particularly if you carry a hefty mortgage and you live in an area where in six months or a year, leaving you with soaring interest. I Pawn Shops: Need quick cash? Pawn shops now attract many small-business operators as clients. If you have unwanted gold jewelry, electronics, copiers, computers, electric tools and other goods, you might sell them outright or, alternatively, pawn them. With a pawn, the shop will hold your goods in a secure area, you’ll get cash and at a specified time (usually within a month), you will return, pay the pawn amount plus interest and retrieve your goods. It’s an easy way to secure quick cash. But if you opt to simply “extend” the loan for another month, you’ll pay high interest. I Equipment Leasing and Vendor FOR THE AGENT website (www.score.org) offers several articles on financing your business, and 60second guides (a short grouping of how-to tips on financial subjects). Online at the SCORE site, you may put in a specific request for assistance from a SCORE expert and you’ll hear back in 48 hours. Or use the group’s online search to find a SCORE office near you. Get the expert free advice that could help expand your business or improve your cash flow. —Susan J.Young ONLINE HELP SCORE’s website offers several helpful resources to evaluate the stability of your business, including quizzes on everything from business planning and e-commerce to human resources, legal issues and financing. Here are some key questions to help home-based agents determine whether they are qualified for a line of credit: 1) Do you have at least two years of experience in your industry? 2) Can you provide at least 25 percent of your business start-up costs or major expenditures? 3) Do you have a well-thoughtout business plan? 4) Do you have a clean personal For better cash flow, also consider leasing a computer, copier or other business equipment. Ask your suppliers or local trade association about any vendor financing options for supplies and equipment. SCORE says several major suppliers own financing companies that may help, such as GE Small Business Solutions (www. Financing: real estate has tanked. But if you’ve been in your home 15 years and haven’t taken out additional loans against the property, you may qualify. I Credit Cards: Using a credit card is a quick, easy way to obtain immediate cash. Borrowing on a card is fine for the short term, but interest can be high over the long term. Shop for a good credit card rate, but beware of teaser rates that vanish 14 gemoney.com) or IBM’s Global Financing (www.ibm.com/financing). Elsewhere, the American Society of Travel Agents (www.asta.org) has a slew of online financial tools to help member travel agencies develop the paperwork needed in the borrowing process, such as generation of a profit-and-loss statement. Another good resource is the Small Business Association at www.sba.gov. SCORE’s credit history? 5) Can you secure your loan to recoup possible losses if you cannot meet your payments? For more information on financing your business, visit www.score.org. Home-BasedTravelAgent O CTOBE R 2008 PHOTO BY DANA ROTHSTEIN/BIGSTOCKPHOTO.COM http://www.score.org http://www.sba.gov http://www.gemoney.com http://www.gemoney.com http://www.ibm.com/financing http://www.asta.org http://www.score.org http://www.sba.gov

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Home Based Travel Agent - October 2008 Contents Editor’s Note Publisher’s Note Your Lifeline Agent Profile New Technology Industry News Hot Deals Charging Fees Cover Story: Divers’ Destinations For the Traveler - Cruise - Groups For the Agent - Cruise - Groups Top Hotels in Italy For the Traveler - Destinations - China For the Agent - Destinations - China For the Traveler - Destinations - Caribbean For the Agent - Destinations - Caribbean For the Traveler - Destinations -Las Vegas For the Agent - Destinations - Las Vegas Home-Based Agent Expo New Products

Home Based Travel Agent - October 2008

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