Political Risk Insurance for Exporters – Making no Mistake About It!

Probably, the biggest blunder an exporter can make is to invest in an overseas market without first carrying out a political risk assessment. It’s true, coups, civil strife, and acts of terrorism do not occur every other day, but the possibility that these unpredictable events can affect a multi-billion export business and bring it to its knees is scary enough to warrant the deployment of some of kind of a safety net. But what exactly should be on your mind as you consider Polical Risk Insurance by Niche Trade Credit for the protection of your business?

Polical Risk Insurance by Niche Trade Credit
Polical Risk Insurance by Niche Trade Credit

Understand the Risks Involved

To reap real benefits of political insurance, you really need to understand the nature and extent of risks involved in the overseas market you’re targeting.  Think about the chances that some buyers may fail to compensate you for a shipment that’s already been delivered. Is the market stable enough, and are you looking at macro or micro political risks? You may need to research your target market thoroughly prior to making any significant move.

So, what if a political assessment reveals real risks? Does that mean you don’t invest, or you focus on less risky areas? Far from it! The purpose of studying political risks prior to investing in an overseas market is to give you an insider perspective of issues that can affect your business there, and that helps you identify aspects of your investment that you need protected, for example by polical risk insurance by Niche Trade Credit. Proven risks need not scare you out of business!

Custom Protection

True, political risks in a specified market will affect all multinationals operating there, but that does not mean every policy offered is ideal for every type of business. So, anyone promising protection against political risks should be able to provide a custom solution that addresses the exact risks and negative issues your business is going to face, both in the short-term and long-term.

It’s essential that you find out what exact issues are covered under a particular insurance coverage. This is an important safeguard, as your business may be significantly hit if a certain event that’s not covered under your policy occurs. For example, is the policy helpful in case default results from government interference, such as the cancellation of a contract? What’s the deal when a foreign buyer goes bankrupt and they just can’t repay for goods or services already delivered?

Reaching an Understanding

You should not make the mistake of assuming compensation will be immediate and automatic once a risk covered under a policy has come to pass. It, thus, makes sense to have candid conversation with your prospective insurer and discuss issues such as the circumstances under which compensation will be available. In most cases, certain conditions have to be met, and you may even be required to exhaust other avenues for recourse before you can be paid anything for your losses.

Protection, such as polical risk insurance by Niche Trade Credit, can save the day when you’re operating in an uncertain, overseas climate. To be on the safe side, ensure that you know the political risks your business will face, and understand what benefits a specific cover provides.

How to Get Ready for a Business Tax Audit

While it is true that mistakes are inevitable, many businesses dread a tax audit and would do everything to avoid it. However, new solutions such as audit shield now exist to help businesses protect themselves from the effects of tax audits. In the first place, you need to remember that you are human first and then a business owner. Simply try to be as accurate and complete as possible to avoid common mistakes in your tax returns, which may call for a tax audit.

Types of tax audits

Tax audits exist in three different forms:

·         Through correspondence: in this form of audit, the IRS may ask for a confirmation, correction, or more records

·         Office audits: in this situation, you visit the IRS offices with specific documents

·         Field audit: in this case, tax officials come to your business premises. It is more comprehensive. The officials will ask for specific documents and reports

Know the limits on collections and audits

It is important to know the limits regarding audits and tax collections. Your accountant is in the best position to give you more information about this. For example, business audits and personal tax returns can take place after three years of filing. Accounting firms have access to audit insurance solutions such as audit shield, which is helpful for businesses. The solution can protect your business from the cost of a tax audit activity.

Preparing for a business tax audit

When you receive a request for a tax audit, the first step to take is to inform your tax accountant or advisor. Tax audit issues are tricky and even a simple letter asking for a particular document can signal a big problem. Fortunately, various solutions exist for businesses to protect themselves from the effect of a tax audit. An example of such solutions is the audit shield. The following steps are necessary:

·         Concentrate on lost or damaged records. Have a proper explanation or documentary of your efforts to recover the lost or damaged information.

·          Understand planned and unintentional failures: for instance, the tax department can be lenient if the failure was accidental, but they impose heavy fines on intentional failures.

·         Separate personal expenses from business records. Rely on your accountant or tax advisor to help you go about this, such as bank accounts, credit cards, or travel expenses.

What the tax officials focus on

 The tax officials focus more on their businesses and their activities. For example, if you operate a cash business, you are more likely to receive tax audit requests. It is difficult to prove the income of a cash business without conducting a tax audit.

In that case, you should be ready to show appropriate documents for travel, entertainment, and meals for your business. The tax department targets such expenses. Be ready to explain the business purpose of the mentioned expenses. Besides, the records must have details including time, date, and the people involved. In essence, it must have a business purpose.

Overall, it is advisable to cooperate with your tax advisor throughout the entire process.

What You Need to Know About Hard Money Loans

Hard money loan is a short-term loan that is secured by real estate, and funded by private reliable investors such as Hard money Loans with Evoque Lending. This loan requires only interest and some principal with a balloon payment at the end of the term. In addition, the amount you can get from a hard moneylender is majorly based on the value of the property. The property can be the one that you already own and wishes to use as collateral. On the same note, it is important to note that the lenders are much concerned with the value of the property, as compared to credit history of a borrower.

Therefore, reliable experts for hard money loans with Evoque Lending recommend that, borrowers who cannot get conventional financing due to recent foreclosure, or short-term sale, are still able to get hard money loans if they have sufficient equity in the property they use as collateral. Therefore, before you apply for a hard money loan, you should know the following about it.

Property types for hard money loans

In this case, a borrower can get a hard money loan on almost any type of property – from single family residential, multifamily residential, to commercial, land, and industrial. However, some lenders may specialize in one type of property such as industrial, and may not be able to offer land loans because they have no experience in that field. Therefore, different lenders have a specific niche of loans that they offer comfortably, so a borrower should ask his or her preferred lender about which loan they are willing to offer.

In addition, hard moneylenders cannot lend owner-occupied residential properties, because of some rules and regulations that do not permit them to do so, but some are willing to wade through the paperwork with a borrower.

What are the benefits of hard money loans?

Today, many real estate investors chose to use hard money for many different reasons. However, the main reason is the ability of the private loan lender to offer them this loan as quickly as possible. In many situations, a hard money loan can be funded within approximately one week. In addition, the application for a hard money loan can take about a day or two days in some cases, and the loan can be approved on the same day a borrower applies for it.

For that reason, the ability to obtain funding at a faster rate as compared to bank loan is a great advantage to real estate investors. Therefore, when an investor tries to acquire a property with many competing bids, a quick close to hard money loan can attract seller’s attention, and set apart from buyers who offer slow conventional financing.

Another reason why a borrower may choose to use hard money loan is, if a conventional bank rejects his loan request due to short sales, foreclosures, or credit issues. However, hard moneylenders can look past these issues. As long as the loan can be repaid, and the borrower has enough equity invested in the property he uses as collateral, he can get a hard money loan.

For more information on hardmoney loands with Evoque Lending, visit http://evoquelending.com/