Finance/Capital Access

It’s important to make sure that you don’t miss any tax deductions that are available for the self-employed. Make sure you review these key tax breaks.

Do you have a home office?
If so, you may able to claim the home office deduction. You must meet certain requirements though. Specifically, the office must be allocated to the portion of the home that you regularly and exclusively use for your business (reference: IRS Publication 587). Generally, you can deduct the business portion of these expenses: real-estate taxes, qualified mortgage-insurance premiums, deductible mortgage interest, rent, casualty loss, utilities, insurance, depreciation, security systems, and repairs. You can also deduct expenses associated with a separate free-standing structure that you use exclusively and regularly for business (IRC Section 208A(c)(1) & IRS Publication 587).

It’s important to note that there is also a new method for the home office deduction. It is important to note though that businesses will only be able to use this option if their home office expenses does not exceed $1,500 or 300 square feet. In addition, small businesses that opt to use this method won’t be able to claim any depreciation expense as an itemized deduction, which is allowed under the regular method. (more…)

Although the structure of proprietary lending programs can vary, typically your funding partner will work with one or more banks to set aside a block of money to be used exclusively for your franchise concept by providing loans to your candidates.  Proprietary lending programs can simplify your funding issues, increase candidate’s confidence in your system, project a strong brand image and catapult your unit growth.

Having a program partner gives you much more control over the funding process.  Your concept is “underwritten” so that the lender becomes well educated regarding your franchise. The lender needs to understand the nuances contained in your concept: how it works, why it works, what makes a location successful and what obstacles need to be avoided or overcome.

A proprietary lending program will establish the appropriate “credit box” or set of criteria through which your clients will be analyzed to ensure the greatest likelihood of success for funding approval.  In addition, because your lending partner knows the credit requirements, prequalification’s are much quicker, which can save you from wasting your valuable time should a candidate be determined to be un-fundable. (more…)

Benetrends is proud to announce a new $100 Million franchise fund. The new franchise lending program was created to help International Franchise Association franchisor members provide qualified candidates with direct access to capital for new store development. Hand & Stone, a rapidly growing spa franchise, is the first franchisor selected by Benetrendsto participate in the new fund. Hand & Stone has been provided $10 million in initial capital to assist with its franchise growth.

“Benetrends is excited to now provide franchisors and their franchisees access to the critical funding needed to expand their current operations or purchase their first franchise,” said Rocco Fiorentino, president & CEO, Benetrends, Inc. “We’re pleased to award Hand & Stone the first $10 million from the new fund as they look to meet their future development needs following their record-setting growth in 2013.”

Franchisors and franchisees selected to participate in the program benefit from:

• Direct access to capital
• Simplified qualification process (more…)

Nearly every successful company has had to face difficult times with tight cash flow and burdening debts at one point or another. However, only the most dedicated and resourceful entrepreneurs and business managers are able to handle the pressure and make the necessary adjustments. Put yourself in the class with those who’ve struggled but come out on top using the following 5 tips to improve your cash flow to debt ratio:

1. Reduce Unnecessary Expenditures

First and foremost you’ll need to reduce your operating cost as much as possible without drastically affecting the quality or efficiency of your products or services. This could mean utilising energy-efficient equipment and becoming proficient at saving power, reducing supplier contract commitments, terminating some employees, and selling some equipment or inventory that is costing too much to maintain or store. Eliminating frivolous overhead is perhaps the most important step in freeing up cash for more important purposes like investments and debt repayments. (more…)