Baylake Bank eNews. Member FDIC

Baylake Bank Offers Loan Tips for Small Business Owners
Five Tips to Increase Your Chance of Getting a Small Business Loan

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source: businessman
Despite what you may hear in the news, banks have the funds and want to make loans to small business owners who have the ability to thrive in our challenging economy---and today’s low interest rates make this an especially good time to apply. Before you do, Baylake Bank advises small business owners to review the following checklist:
 

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source:
1. Have you developed and maintained an ongoing business relationship with your banker? Relationships count in the banking world. To effectively serve customers, bankers need to understand their goals, anticipated financial needs and current financial situation. This level of understanding can only come from a continuous dialogue between the banker and the customer.

Many times, the advice a banker gives is far more important than the product or service they offer. Your banker’s advice can be more targeted and focused on your business’s needs if they know your current financial situation and plans for the future.

2. Does your business need a loan—or an equity infusion? It’s important to understand the difference between loans and equity. Loans need to be repaid over a defined time period. Equity investments are permanent funds that serve as “shock absorbers” so businesses can weather both good times and bad. Banks are in business to make loans. Equity funds should come from the business owner.

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source:
3. Can you clearly explain your firm’s “value proposition”? You should be able to explain why customers should do business with you and how you’ll compete effectively in your chosen target market segments.

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source:
4. Do you have a business plan that covers best, most likely, and worst case scenarios? We all know that things in life don’t always work as planned. Your banker should understand all three scenarios since you’re asking for the bank’s support through good times and bad. Developing alternative business plans shows your banker that you understand both the risks and opportunities of operating in your industry.

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source:
5. Have you developed at least two ways to repay the loan? Bankers look for both a primary and secondary source of loan repayment. Primary sources of repayment relate to how much cash your business or investment is capable of generating. Secondary repayment sources could include pledging business or personal collateral, or a loan guarantee by the firm’s owners, suppliers or customers.

The more certainty that the banker has that the loan will be paid “as agreed” the more likely that you will not only receive a favorable loan decision, but also the best interest rate.

Ready or not, it’s time for year-end processing activities to add to your already busy days – and the perfect time to ensure that your business is taking advantage of potential tax savings.

According to the Small Business Administration (SBA), this is definitely the year to take advantage of the Section 179 deduction, which allows businesses to deduct expenses for a variety of capital equipment purchases including computers, furniture, certain business software, vehicles, manufacturing equipment, and more. Even if you don’t think you need to make new purchases, review your inventory and equipment and use this time to replace obsolete or aging assets.

The SBA also points out several key items that it may be advantageous for your business:

• If you have hired a returning or disabled veteran, “Returning Heroes and Wounded Warrior” tax credits may be available to your business.
• If you think you will be in the same or lower tax bracket next year, deferring income might make sense for you (more income next year could push you into a higher tax bracket and a bigger tax bill).
• Certain credits for research and development are available not only to high tech or bio tech companies, but also for certain companies that employ engineers, outsource product testing, or are seeking to diversify a product line.
• Be sure to max out your pre-tax contributions to your traditional IRA, 401k, or 403b, and get a tax deduction to lower your taxable income; check with your plan administrator for limits and deadlines for different types of plans.
• With the holiday season upon us, now is an especially good time to make a business charitable contribution, including cash and/or usable items such as clothing, toys, and other goods. Be sure to get proper documentation or a receipt for your records.
• Take time now to make sure your paperwork is up-to-date and accurate so that you maximize deductions and save your accountant time and billable hours when tax season rolls around.

Source:
Baylake Bank offers a number of small business loan products to fit many borrower’s needs. Baylake Bank has been serving northeast Wisconsin for more than 135 years as a commercial bank and is also a Small Business Administration Preferred Lender.

“Small business loans are the key to keeping communities growing and people working,” said Paul Northway, Market President for Baylake Bank’s Bay Region. “Baylake wants to lend to business and we can help you prepare even before applying.”

A complete business education center is available online as well as preliminary application information available at
https://www.baylake.com/business/application.htm.
 

 


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