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Showing posts from December, 2019

Taking the Leap – Making Bold Moves toward New Horizons

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It goes against my grain to stand on a soapbox and ask everyone to look at me.  I have to remember that what I have to offer is really quite good.  The people that need my software are going to be very happy they found it.  It’s worth being a little pushy for us both to benefit.  Many of the people that call with questions before deciding to buy my system say the had searched the internet at great length before they finally found me.  Anything I can do to make that search quicker is just a smart move. I was buying something at a local music store and casually asked if they do in-house financing , in hopes that I might be able to buy some loans at a discount.   The person I was talking to said they did zero-interest-for-a-full-year on any purchase, which didn’t sound too appealing.   I groaned that I really want to make some loans, and the person that had helped me with my purchase asked if I would consider making a loan to an individual .   I said “of course!” and they mentione

The Secret Sauce to Make Any Business Work

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I’ve read a lot of business books.   Books on management, leadership, advertising, marketing, internal processes, hiring, motivational and inspirational books.   I link to think I’m somewhat well read on the subject.   If all these authors were my patient teachers, I don’t doubt I would hear a great collective sigh of relief that I am finally beginning to understand. Moneylender is the primary product that my company produces.   It’s not surprising that the vast majority of my time is spent on Moneylender-related activities.   For fifteen years, I worked almost every day to build the best solution to the problem of managing loans that I could conceive.   I’m pretty happy with the result, now manifest in Moneylender 3. That’s great, really it is.   Having a product that holds my complete confidence is a very important part of being a successful business.   But I missed the point.   Sometimes narrowly, sometimes entirely, but I definitely didn’t quite get the reality of the s

The Five Keys to Accounting for Loans at Tax Time

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It might seem daunting to try to make sense of your loans when it’s time to do quarterly assessments or annual tax returns.   Business finances from loans are actually not too hard to manage, as long as you keep in mind two or three key ideas. Interest, Fees and Points – This Is Your Profit All the interest you receive, the fees you collect, and the points you were paid when the loan began – thee things are your profit.   They’re income, and taxable in most situations.   You don’t need to separate these numbers.   Their total is how much revenue you brought in from lending.   In some places, you can’t report the points or origination fees as profit all at once, you have to report them over the scheduled life of the loan.   In most other places, you report the fees and points as profit as soon as they’re received. Charge Offs – These Are Your Losses If you have given up on collecting a loan and have to take a loss, you write-off the unpaid principal balance.   You’re