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5 Benefits of Joining Industry Associations

Joining an industry association can be extremely beneficial for working professionals who are looking to expand their knowledge, network, and have access to the latest information in their field of work. It’s true that membership fees can be on the pricey side, but most often people find that the benefits they receive from an association far outweigh the costs.

Here are the top 5 benefits of joining an industry association for both business and educational purposes.

Networking

This is one of the main reasons people join associations. Business networking is crucial for the growth of any business, and being a part of an association allows you to connect with like-minded people in your industry in a collaborative environment that provides learning opportunities, the exchanging of ideas, and beneficial relationships.

Education

Associations offer a number of educational opportunities including everything from webinars and trade shows to workshops and seminars. Topics vary but may include subjects such as trends, leadership, new techniques and developments, and cost saving tips. These events allow you to keep up with continuing education as well as providing a great setting for networking.

Best Practices

All industries have specific best practices, and they differ depending on your line of work. If you are just starting out, switching careers, or want to keep up-to-date on best practices, industry associations provide forums and resources to learn what best practices govern your particular field and keep you in the know about updates or changes.

Information and Resources

Being a member of an association gives you access to important news or developments in your industry. Members not only talk amongst themselves and share noteworthy updates, but the sources used by associations are both reputable and reliable so you can rest assured the information you are getting is accurate. Updates can come in the form of curated newsfeeds as well as newsletters, magazines, or weekly emails.

Improve Reputation and Visibility

Being a part of an association strengthens your image and lets consumers know you are a reputable business that is trustworthy and follows industry standards. Many associations reward excellent performance with certificates, awards, or badges that not only make your business look more reliable, but may heighten your visibility in the public eye.

There are a number of benefits that come with joining an industry association. If you want to receive the latest information, make new connections, grow as a professional, and further your education, an association may be your next step in the right direction.

In the News: Spencer Thomas and Brunswick Bowling

Here is an except from an interview with KLC Executive Vice President Spencer Thomas about the importance of finding a lender that will act like a partner.

Click here to view the full article

KLC Financial is a Brunswick-recommended lender providing equipment purchase and lease financing for modernization projects. KLC executive vice president Spencer Thomas recommends that proprietors look for a lender who will act as a partner.

“Things happen—floods, roof issues, construction that blocks access to a center,” said Thomas. “It’s important to choose a lender that can be adaptable, whether circumstances get in the way of cash flow, or there’s an opportunity to upgrade or expand.”

KLC generally controls the entire transaction in-house, from application processing through providing funding and collecting payments, which allows for flexibility in working with its borrowers.

KLC offers lower fees and more flexible qualification requirements than some typical lending programs. KLC’s Brunswick programs allow qualified proprietors to make half the normal payment for the first 12 months, giving them time to get new equipment up and running. Lease financing for qualified proprietors provides unique tax advantages, requires no money down, and uses the equipment itself as the required collateral. Thomas echoes Tom Burke and Jon Tang’s view of Brunswick as an invaluable resource and business partner.

“Brunswick is the only bowling equipment manufacturer we work with, because we think so highly of their product and their proprietor support,” said Thomas. “If Brunswick is supporting a proprietor, it’s easier for us to approve a loan request, because we know that Brunswick helps make proprietors successful.”

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Lies People Hear About Bank Equipment Financing

When it comes to getting the equipment needed for your business, you have to think strategically in order to do what is best for the financial future of your company.  Though many business owners would love to have the funds on hand to pay cash for the equipment they need, this is not a reality for most businesses. The purchasing of equipment is a major investment. Yet, it is also the lifeblood of your company.  Without equipment, you can’t preform the service you set out to do. So here are some of the most common lies that you hear about bank and vendor financing.

Lie #1: You have to have money for a large down payment.

The truth is you don’t need to have a giant down payment ready to go when you are trying to set up an equipment financing plan.  When you work with KLC financing company in MN, you will be able to see the advantages they can offer due to their relationships with banks.  They can offer flexible, customized plans that don’t require a large amount of money to make the down payment in order to move forward with financing your much needed equipment.

Lie #2: Financing ties up your money.

When it comes to keeping your lines of capital open, financing or leasing services can offer you greater success.  Having cash on hand instead of trapped in self-owned machinery is often the best option for many businesses.  When using a leasing service or financing company you retain more money in your bank account.  It’s just like paying monthly bills instead of clearing out your entire bank account in one shot. This helps to protect your company.  It frees up your cash so that you can take care of your day-to-day expenses.

Lie #3: You get stuck with old equipment.

One thing that people have concerns about when it comes to bank equipment financing is that traditional banks may have restrictions on the age of the equipment they are willing to finance.   You know the best equipment you need in order to get the job done, so don’t settle for a traditional bank who can’t help you get what you actually need.  KLC Financial Services in MN has a flexible approach to leasing and financing that allows your company to get the equipment that is right for the job.

Equipment Leasing: 5 Benefits for Small Businesses

If you are a small business owner, there’s a good chance finances are top-of-mind.

Running a business is a costly venture, so the question is, how do you acquire new equipment without breaking the bank? Equipment leasing is something thousands of large and small businesses take advantage of each and every year. Similar to leasing a car, an equipment lease allows companies to have accesses to the latest technology without spending a large sum of money buying the equipment outright. 

Here are five benefits of equipment leasing for small businesses.

Save Money

Saving money may be the most important benefit for small businesses. Equipment leasing saves working capital, and equipment lease programs are generally flexible and can be tailored to meet your specific budget and needs with affordable monthly payments. This allows you to save and spend your hard earned money on other necessary business expenses.

100 Percent Financing

Equipment leases generally do not require a down payment. This allows you to save capital that may have been used for a down payment or to purchase the equipment and put it back into your business.

Access to the Latest Technology

Equipment leasing gives you the ability to upgrade to the latest technology. If you are in an industry where equipment is consistently updated with newer technology, equipment leasing will allow you to stay up to date with advancements as well as your company’s growing needs.

Business Credit

Equipment leasing keeps your business credit open. It’s imperative to have solid credit if you require funding for operational expenses, staffing, or expansions. An open line of credit gives you options as well as the ability to act if your business has unforeseen issues or needs.

Potential Tax Advantages

When you choose to lease equipment, lease payments are generally viewed as expenses and therefore may be tax-deductible.

As a truly independent financing company, KLC’s specialty is flexible, creative, custom solutions that support businesses that don’t easily fit the typical bank or finance company models. Are you interested in learning more about equipment leasing and the many ways it can benefit your business? Contact KLC Financial today to get started.

How to Increase Working Capital

For any type of company, working capital is the foundation of a healthy business.

Learning how to maintain and generate more cash for your company is crucial for success. Working capital is essentially the cash needed to operate day to day. When this supply gets too low, the company minimizes opportunities for growth in new business. Here are a few strategies for construction companies to increase their working capital and free up cash to improve their working capital.

Refinance Fixed Assets

Entrepreneurs pursue construction equipment financing in MN as a means of opening up cash flow. Setting up a new loan structure with a financing company can help you reshape the amount of cash you are paying out each month. Changing the payment period, terms and interest rates can help to reduce the strain of extravagant monthly payments, freeing the construction company up for new ventures and daily expenses.

Sell Assets

Equipment is what makes any construction job possible. They are necessary, but it may be better for your company to sell their equipment or machinery. By releasing these assets to a construction equipment financing company, you will be able to free up debt and still maintain the right to use the machinery. This changes the asset from a debt to an expense, ultimately freeing up your capital line. This is a great option for businesses that have limited capital or who need updated equipment every couple of years.

There are many benefits that come from freeing your company of these kinds of assets. They cut down on initial expenses, and leased equipment likely doesn’t require a down payment. Plus, leases are tax deductible as a business expense…shrinking the lease’s net cost. Leases tend to have more flexible terms than loans when it comes to purchasing equipment. This is a lot of help if you have bad credit.

From refinancing to selling, both ways are practical strategies to help a construction company free up working capital. This will give your company more equity. Having cash on hand to take care of daily expenses is what will make your business succeed in the short and long term. This allows the company to take advantage of new growth opportunities to become even more profitable. Construction equipment financing companies want to help your business prosper for years to come.

8 Tax Write-Offs For Small Business

Tax time is fast approaching and for many small business owners, stress and worry are beginning to set in.

If you are looking to keep more money in your pocket this year, it’s important to take all of legitimate tax deductions you possibly can. It’s never a good idea to mess with the IRS, so be sure to check on current rules and regulations and consult a tax professional before jumping into deductions.

Here are eight tax write-offs that may benefit your small business this year.

Mileage Expenses

If you drive for business, the IRS will reimburse you for some of the costs related to keeping your car on the road. It’s important to keep a strict record of all business related miles, tolls, and parking fees. Keeping a notebook in the car makes it easier to keep track of your trips, but make sure to be very specific and include the date, purpose of your trip, and any mileage and fees.

For 2015, you can deduct 57.5 cents per mile plus any business related parking fees and tolls. For 2016, the deduction drops to 54 cents per mile.

Home Office

Many people hesitate to claim a home office deduction, but they shouldn’t. The IRS qualifies a home office as being a space devoted solely to business activities and nothing else. Meaning you can’t claim the family room as your home office if the entire family watches T.V. in there and uses the space.

The IRS recently simplified this deduction by making it $5 per square foot with a maximum of $1,500 for an office space of 300 square feet. While this is easier than the traditional method of figuring out the total square footage of your home office and diving it by your homes total square footage, the traditional method may save you more money. Fortunately, either option will keep more money in your pocket.

Startup Costs

The money that went into getting your small business up and running can be deducted once your business opens. Advertising, training employees, and consultant fees are all examples of eligible expenses. Small businesses are able to deduct $5,000 in startup costs the first year the business is open and any remaining costs can be deducted over the next 15 years in equal amounts.

Bad Debts

If a client or customer fails to pay you, this debt may be deductible. If your small business sells goods of some kind and you didn’t get paid for goods sold, you can deduct this. If your business only provides services, you are out of luck, any time dedicated to customers is nonrefundable.

Travel

If you travel for business, you can deduct the price of your ticket, lodging, car rental, taxis, and other any expenses directly related to the trip.  Want to bring your family along? No problem, but only your expenses are tax deductible.

Business Entertaining and Meals

Entertaining current or prospective clients? You can deduct 50% of the cost as long as the main purpose of the meal or entertainment is to conduct business. This can include everything from lunches and dinners to sporting events or a round golf. Be sure to keep a record of where you went, who you were with, and the purpose of the entertainment.

Advertising and Marketing

Marketing and advertising expenses directly related to your small business can be deducted. This includes things like business cards, print ads, and radio.

Office Supplies and Furniture

Did you stock up on office supplies this year? How about a new office chair? All of these items are tax deductible, just make sure to keep your receipts. For larger purchases, you can either take a 100% deduction for the year you bought them, or spread the expenses out (depreciation) over a period of seven years.

Tax season can be overwhelming, but it’s worth it to take your time and explore your options. Do some research, consult a tax professional, and keep a few more dollars in your pocket this year.

KLC Financial: In the News – 2

The Academy for Lease & Finance Professionals was offered earlier this month, the first of 2016, by the Certified Lease & Finance Professional Foundation (CLFP). Stearns Bank in Albany, MN hosted the event. All of the individuals who sat for the exam, eight in total, passed and now hold the CLFP designation.

According to the CLFP, “The CLFP designation identifies an individual as a knowledgeable professional to employers, clients, customers, and peers in the equipment lease and finance industry.”

Two of the successful participants were Marc Keepman, President and CEO of KLC Financial, and Spencer Thomas, Executive Vice President of KLC Financial.

What is a Certified Lease & Finance professional?

The Certified Lease & Finance Professional (CLFP) designation is the preeminent credential for equipment leasing and financing professionals throughout the world who have demonstrated competency through testing of knowledge, continuing education and a commitment to their business practices and dedication to the industry.

CLFP Foundation

When Marc Keepman was asked why he chose to pursue the CLFP designation, he responded, “I chose to become a CLFP because we, as an industry, are raising the bar in three critical areas of commercial application: our performance, our ethics and our self-regulation. This is a good way to accomplish all three and is the way of the future.”

To find out more information visit clpfoundation.org.

Federal Rate Hike: Pros and Cons

After nearly a decade of extremely low interest rates following the recession, the Federal Reserve has approved a rate hike by one quarter of a percentage point. While the Feds have vowed to ease into these new higher interest rates, this change could potentially have an impact on mortgages, credit cards, and auto loans.

Mortgages

If you currently have a fixed-rate mortgage, you should see very little change, but for those individuals with an adjustable or variable- rate mortgage, increased rates may have an effect. Chief financial analyst, Greg McBride, at Bankrate notes;

“A Fed rate hike is a big, flashing ‘caution’ sign to borrowers with adjustable-rate mortgages,” he says. “The cumulative effect of a series of rate hikes could produce big — and sudden — payment increases for ARM borrowers the next time their loan rate adjusts.”

Read more: http://www.bankrate.com/finance/federal-reserve/interest-rate-increase-winners-losers-1.aspx#ixzz3vp67bv22

The greatest impact could come for those individuals who are considering purchasing a home. Changes in interest rates, even small ones, can put a strain on your wallet.

According to the Washington Post’s article, “How the Fed’s interest rate hike could hit your wallet,” the number of new home buyers may be reduced due to increased mortgage rates.

“By increasing the total cost of buying a home, higher mortgage rates could also reduce the number of people who qualify for loans. Lenders are required to compare a person’s potential debt load to their income and some people who qualify for loans under today’s rates may not be eligible if rates go higher.”

Credit Cards

Interest rates on credit cards are expected to rise. According to the article, “How the Fed Rate Hike Will Impact Credit Cards and Saving Accounts,” by Nick Clements, a contributor to Forbes, these changes will take place sooner than later.

“If you have credit card debt, you should expect to see the interest rate on your credit card debt increase almost immediately. Credit cards typically offer variable interest rates, which means the interest rates adjust in real time on existing balances. Most credit card agreements will state that “APRs will vary with the market based on the Prime Rate.” If the prime rate increases, the interest rate on your existing balance will increase as well.

What does this mean? It may be harder to pay off credit card debt as well as other loans as time goes on and if you’re worried about finances, it may be worth it to tighten your budget and pay off any debt to avoid even higher rates due to missed or late payments.

Auto Loans

Those who already own a vehicle and have a fixed-rate loan shouldn’t be impacted by the hike rate, but those shopping for a new car may run into increased borrowing costs which may make it harder to afford a loan in the future.

Positives

While the rate hike may seem like it only brings higher costs, there are a few positives.

If you’re a saver, increased rates mean you should see an improvement on your returns. While these changes won’t be monumental, anything helps. This is especially true for senior citizens, many of which depend on retirement accounts for daily living.

For those who love to travel, increased rates may indicate a stronger dollar which means you can get more for your buck while you’re abroad.

Business and the communities they serve

Corporate Responsibility Defined

Corporate responsibility, in its simplest terms, can be defined as a business’s ethics.

Every company adopts its own set of values and principles that ultimately affect its stakeholders including employees, communities, consumers, investors, and anyone else who engages in some way with that company. Here at KLC, we believe in consistently practicing transparency, honesty, integrity, and ethical principles.  In today’s world, the public has become more aware of global matters which is why you see more and more groups expressing an interest in how both the environment and people are being treated.  Because of this, corporations are being held accountable by both the government and the public.

Companies must comply with all laws and regulations applicable to their operation and country. This includes how a company produces and markets their goods and services as well as safety and health, employee treatment, human rights, and environmental practices. All of the above practices are often integrated through management policies into business operations.

Social Responsibility

Corporate social responsibility refers to the initiatives a company engages in to protect and aid both the environment and the community. While the exact definition of corporate social responsibility varies from corporation to corporation, they share a common thread in that companies make a conscious decision to manage their business processes in such a way that they positively impact society, the environment, and the world.

Philanthropy

There are a number of ways corporations can give back to the community both locally and nationally. A few examples include donating money or time to charities or community programs, using fair trade ingredients, contributing to education, and offering grants and scholarships.

Environment

Both large and small companies can be detrimental to the environment. Many businesses are taking steps to reduce their carbon footprint such as using renewable resources, using energy efficient products, or minimizing gas emissions.

KLC recently participated in the “Souper Sleep Out Cook Off” benefit held by Interfaith Outreach and Community Partners.

7 Things Small Businesses Might Consider Buying Before Year End

Before the end of the year is typically the time that companies and people start to think about is there anything I should buy?  The end of the year is the time that companies start to think about taxes and one of the ways to reduce your taxes is to make business expenses at the end of the year.  Here are 7 things that your small business should consider buying before the end of the year.

Car or Truck Purchase: If you are looking to buy a new car or truck for your small business the end of the year is the best time to go.  Many dealerships find themselves discounting their vehicles heavily in order to meet their annual sales goals.  To meet these goals dealerships will have end of the year sales and if you are good enough you can usually negotiate the price down even further, especially if you are buying multiple vehicles.

In addition to wanting to meet their sales goals many dealers want to get the vehicles off the lot to get new vehicles on the lot for the start of the sales year.

Books:  The end of the year is tax season.  Purchasing books to help your business get through tax season or legal issues are deductible.  Not only can they be deducted but they can help you get through the bog of information.  You can deduct business operations books or books on your specific business but they must be deducted over the useful lifespan of the book not just for one year.

New Equipment: Depending on the purpose of the equipment and the type of business you have it is possible that you can write off new business equipment at the end of the year instead of turning it into capital.  This means that you can go out and buy a new tractor, new bio-fridge, or a new forklift.  New or additional equipment can help you improve and expand your business operations so that 2016 will be the best year for your business yet.

Some equipment dealers have the same mindset as a car dealer.  They need to meet an end of the year sales goal.  You can often get a good deal on equipment too.  We can even help you finance this by starting here: Buy Business Equipment

New Computer and Software: Buying a new computer at the end of the year will allow you to find a great deal.  Many companies extend their black Friday/Cyber Monday deals into December or otherwise have Christmas deals.  If there is a new piece of software you want for your business and can get it bundled with a new computer you can claim it under Section 179 deductions as long as the cost fits within your allowed annual deductions.

Not only will you do good on your tax deductions but you will have a new computer with software that will prepare you for the next year or allow you to provide a workstation for a new team member.

Continuing Education:  Purchasing continuing education for your team members is a great idea for the end of the year.  As long as the continuing education applies to the position each team member is in then you can deduct it from your taxes.  Now there are many online continuing education programs where you can purchase a subscription and team members can take as many classes as they want.

Higher trained and smarter team members can only make your small business stronger.

Promotional Content:  Many types of promotional content can be deducted as current business expenses.  The end of the year is a great time to buy business cards and ads.  You can also deduct the expense of sponsoring a sports team or a youth activity group as long as there is an obvious connection between your business and the team.

The end of the year might seem like a weird time to start promoting your business harder but it only means that you will start the next year’s business off strong.

Hire a Veteran:  Veterans make some of the best team members in the world.  They are highly trained in their fields and willing to learn new fields and work hard.  Hiring a veteran at the end of the year will provide you with a team member to make your company strong.  At the same time hiring a veteran gives you The Returning Heroes Tax Credit.  The veteran you hire must currently be unemployed and for each veteran you may get a tax benefit of up to 9.6 thousand dollars.

 

Source: SBA.org blog year-end tax tips small business

KLC Financial: In the News

A Fresh View of Equipment Leasing Today

By Dennis Monroe

Click here to download pdf version

Equipment leasing was one of the earliest forms of financing for restaurants, used typically to fund furniture, fixtures, equipment and, at times, leaseholds. I got involved in franchise and restaurant finance in 1980, and one of the major players at that time was Bell Atlantic—one of the Baby Bells—who had an equipment leasing program and real estate sale/leaseback program. Other companies, such as Franchise Finance Corporation of America, had not yet combined real estate and equipment leasing into one product.

For many years, particularly during the height of the tax shelter era, equipment leasing firms utilized operating leases where the lessor kept the tax benefits, including depreciation and investment tax credit. When the tax laws governing passive investments, particularly losses, changed, it was not as favorable to use operating leases.

Equipment leasing has been very significant in our industry. Certain vendors (e.g., ice machine makers) have had leasing programs, as well as some of the early technology companies, particularly those focused on POS operations. With the proliferation of securitized lending in the 1990s and early 2000s, separate equipment leasing programs slowed down and went into the background. The advent of banks and finance companies offering a higher level of senior debt further marginalized equipment leasing. In spite of that, equipment leasing is still alive and well and a vital part of our industry, particularly for smaller operators.

So how does an equipment lease work in today’s market?

In researching this, I reached out to four individuals who I have worked with on equipment leasing: Spencer Thomas, executive vice president of KLC Financial Inc. in the Minneapolis area; Michael Paszkiewicz, president, and Joe Burns, vice president of sales of Vend Lease Company in Baltimore; and Joe Haynes, regional sales manager for Creekridge Capital, LLC, also in the Minneapolis area.

In so doing, I uncovered some interesting information about equipment leasing. Here’s what I gleaned from my discussions:

  1. Uses—Equipment leasing is now much more flexible and not just for pure equipment. Leasing can be for leaseholds, remodels and items that can be clearly identified, including the soft costs that can be associated with that collateral. Vend Lease even includes the maintenance contracts in certain technology products.
  2. Credit—Almost all of these transactions are creditdriven, and collateral is not the key driving force. Qualified borrowers range across a wide credit spectrum, and leasing companies have a much broader base than senior lenders. All four executives I interviewed said personal guaranties are required except in rare circumstances.
  3. Terms of the Lease—The lease terms go from one year to seven years. From what I understand concerning today’s equipment loans, there is flexibility as to a smaller payment in early years with an acceleration at the end. Almost all of the leasing programs I have seen require some type of upfront deposit.
  4. Prepayment—The borrowers who use leasing products sometimes do not realize that to prepay a lease is different than prepaying a senior loan or SBA loan. When you prepay a lease, the payoff is all of the remaining scheduled payments; it is not an amortizing loan with an interest factor.
  5. Rates—Rates vary between a low of around 6% to the mid-teens and look more like mezzanine financing rates. Equipment leasing is not cheap, but in most cases it is readily available and should be taken into consideration.
  6. Assets—The franchisor’s involvement is not as important for the equipment-leasing company as it is to a senior lender. In most cases, the equipment-leasing company will not take back the ongoing business, whereas a senior lender might. If a leasing company has assets in a business that has defaulted, the senior lender will have to deal with the leasing company. In many cases, a senior lender has to approve the lease because of covenants the senior lender has made on additional indebtedness.
  7. Residual Buyout—In general, the leases we have discussed above are based on a $1.00 buy-out. Because it is not certain the depreciation rules under the tax code will remain unchanged or that Congress will continue bonus depreciation, there may be an advantage in getting an upfront deduction for lease payments.

I initially thought equipment leasing had limited use (similar to my initial thoughts about mezzanine financing). However, after speaking with my four experts, its clear equipment leasing is alive and well and may be a great financing alternative for remodels, equipment upgrades, technology changes and ongoing needs after acquisitions.

Dennis Monroe is co-founder and chairman of Monroe Moxness Berg, P.A., a law firm devoted to the restaurant sector in the areas of M&A and corporate and institutional finance. You can reach him at (952) 885-5962, or by email at dmonroe@ mmblawfirm.com

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KLC-Kraus-Press-Release – November 6, 2015

For Immediate Release
November 6, 2015
Contact: Spencer D. Thomas
spencer@klcfinancial.com

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KLC FINANCIAL ACQUIRED KRAUS-ANDERSON CAPITAL’S ASSETS

Minneapolis, Minnesota – October 28, 2015 – KLC Financial, Inc. (KLC) a market leader in commercial equipment leasing & financing businesses nationwide, has acquired the portfolio and others assets of Kraus-Anderson Capital, Inc. (KAC). The acquisition provides KLC with a large customer base of established businesses and with a greater expertise in the leasing and financing of construction equipment for businesses of all sizes.

KLC Financial has been specializing in custom business financial solutions for all types of businesses since 1987. Being a truly independent financing company, KLC is able to create custom lease financing solutions for the ever-growing market today. Clients include Fortune 500 companies, middle-market, small businesses and start up business ventures, KLC has developed sophisticated leasing plans to match this diverse marketplace.

“We look forward to continuing to provide a high level of service to Kraus Anderson Capital’s customer base and we look forward to continuing to provide financing to the customers for many years to come,” said Marc P. Keepman, President, who has been active in KLC Financial since 1987.

KLC is a Minnesota based company with a strong reputation for providing custom equipment leasing and financing solutions. KLC has established strategic programs with a host of banks, equipment vendors and other equipment finance companies nationwide. Resulting in client relationships generating consistent growth in equipment lease and finance agreements annually and is expected to grow with the addition of KAC’s portfolio. While continuing to build volume profitably, KLC is committed to establishing solid, long-term relationships with clients, investing partners and referral sources.

“We’re pleased to work with KLC Financial through this transition,” said Kraus-Anderson Chairman Bruce Engelsma. “The portfolio sale allows us to focus more fully on our core businesses, and we know that the KLC team is well positioned to provide KA Capital’s clients with the high level of service they have come to expect.”

For more information about the leasing and financial business services provided by KLC Financial please visit https://klcfinancial.com/ or contact the customer care team at (952) 224-4300.

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Hоw to Handle a Fruѕtrаtеd Customer

Maintaining аnd operating a buѕіnеѕѕ еnаblеѕ еntrерrеnеurѕ tо offer аnd ѕеll a рrоduсt or service thеу feel passionate and еxсіtеd аbоut. Unfortunately, whеn operating a business there is аlwауѕ the chance оf іnсurrіng lеѕѕ-thаn рlеаѕаnt еxреrіеnсеѕ frоm уоur сuѕtоmеr base frоm tіmе tо time. Whеn уоu offer a рrоduсt or ѕеrvісе to a customer whо іѕ nоt satisfied, уоu ultimately hаvе tо fасе thе reality of dealing wіth unhарру сuѕtоmеrѕ. When customer complaints arise thеrе are аlwауѕ аррrорrіаtе and еffесtіvе wауѕ оf dеаlіng wіth the ѕіtuаtіоn іn аn аttеmрt tо rесtіfу thе рrоblеm аnd mаіntаіn thе client аѕ a futurе customer.   Resolving the issue to turn a unhappy customer into a happy loyal customer is why you’re in business!  If the situation allows … without letting your emotions get the best of you, sit, relax, take a deep breath before you reach out the customer.  This will help you maintain a level emotional state as well as help you think clearer about the situation.

Hеrе аrе 3 important steps you can tаkе whеn hаndlіng a fruѕtrаtеd customer’s complaint:

Lіѕtеn саrеfullу to уоur customer: Dоn’t іntеrruрt or tеll thе customer to саlm dоwn. Show thаt уоu care аbоut thе іѕѕuе аnd wаnt to improve thе situation аѕ quickly аѕ роѕѕіblе. Feel thе раіn оf thе сuѕtоmеr, еmрhаѕіzе with thеm, аnd tell them that you саn undеrѕtаnd how they fееl. Let them vent to уоu hеаr оut thеіr соnсеrnѕ аnd fruѕtrаtіоnѕ. Make ѕurе thеіr соmрlаіnt іѕ taken ѕеrіоuѕlу. Yоu nееd tо wrіtе dоwn thе complaint, fіll out thе proper рареrwоrk, аnd mаkе ѕurе thаt thе complaint is оn fіlе. Also, іnfоrm thе ѕtоrе mаnаgеr and аnу other ѕtаff members about the рrоblеm.

Apologize fоr thе inconvenience аnd mean іt: Lеt thе customer knоw уоu аrе ѕіnсеrеlу ѕоrrу fоr thе ѕіtuаtіоn. Aѕk thе сuѕtоmеr whаt wіll make them hарру оr whаt their dеѕіrеd оutсоmе would bе. It is іmроrtаnt to аѕk thеm whаt they suggest tо dо ѕіnсе іt implies thаt you care аbоut thеіr opinion. Aѕѕurе thе сuѕtоmеr уоu will fix the problem аnd then fix thе problem rіght away.

Dо nоt dеlау: Thе lоngеr уоu tаkе, the hаrdеr іt will bе tо mаkе the customer hарру аgаіn. Thаnk thе сuѕtоmеr fоr bеіng раtіеnt and ѕhаrіng their еxреrіеnсе and let thеm know thеіr раtrоnаgе is аррrесіаtеd. Whеn operating уоur buѕіnеѕѕ remember іt іѕ important to share уоur сuѕtоmеr рhіlоѕорhу оf hоw tо hаndlе customer соmрlаіntѕ іn уоur workplace with еасh оf your employees іn thеіr trаіnіng рrоgrаm. Mаkіng ѕurе аll the еmрlоуееѕ аrе on thе same раgе and undеrѕtаnd hоw tо hаndlе thе ѕіtuаtіоn will еnѕurе these tуреѕ оf difficult conversations are hаndlеd рrоfеѕѕіоnаllу, juѕtlу, аnd іn lіnе with уоur mіѕѕіоn.

Having your own business has many rewards and the ability to keep happy customers is a skill every entrepreneur needs to have.  If we can assist with your business, we’re here to help – contact us for more information

Budgeting Tips For Starting Businesses

 

Are you looking to start a business?  Starting a business can be extremely difficult but it is also one of the most rewarding experiences in the world.  Knowing that you created something from scratch and that you are your own boss is amazing.  One of the most asked questions when it comes to starting a business though is: “How do I budget?”  Here are some of the ways you can budget to start your own business.

Know What You Need (And What You Don’t)

When starting a business it can be tempting to say that you need every resource under the sun.  You need to sit down and do the research into exactly what you need.  Often times there are many things that you can acquire as you move along in the business world.  You don’t need to get them up front.

Before making any purchase or hiring someone, ask yourself “Do I need this to succeed?”  If the answer is yes than you should probably make the purchase.  If the answer is no, it can wait.  There are many professionals out there that can help you to determine what you need and what you don’t to get started.

Consider Using A Freelancer

Many people who venture into the business world look to big names who charge extra for services such as logo creation.  There are many freelancers out there that specialize in a variety of services and charge less.  This will allow you to have more of a budget for other parts of your business.

Websites such as Upwork and HireMyMom are great websites to help you connect with freelancers.  Some people even choose to use Craigslist to connect them with people to help them get their business started.

Plan Your Year Out

Many businesses have parts of the year where they do not do as many sales.  For example, many people stop buying luxury items before they start their Christmas shopping so that they can afford to buy people gifts.  Companies that aim to sell to schools will notice less business during the summer when most schools are out of session.

You should plan for these slow times of the year and have methods for either bringing in extra income or mitigating the costs of keeping your business open.

Work From Home or a Shared Office Space

If you can, consider working from home.  Not everyone has the option of working from home but if you do it will save you a lot of money.  You have to be careful working out of home because many municipalities, landlords, and communities define what can and can’t be done out of your house.  Some places also require you to get licensing and agreement from your neighbors.

Another option is to find a shared office space.  There are many companies out there that are dedicated to bringing people together with shared office spaces.  Not only do these shared places give you a place to work but they also allow you to connect with other professionals who could end up helping you move on in the business world.

Pay Off Your Debt Quickly

If you are starting a business from scratch, chances are that you have debt to pay off.  Instead of using your profits to expand right away you should pay off as much of your debt as possible.  Interest payments cost a lot of money and debt looms threateningly over your head.  Not only will paying off your debt be good for your business it will help to lift a weight off your shoulders.

Do Not Spend All Of Your Profits

A lot of people will be tempted to pay off all their debt or to expand or to upgrade right off the bat.  When this involves spending all of your profits though it is a bad idea.  You will want to save a good portion of your profits should you have unexpected expenses or should something happen, such as a slow month.  Make sure that you plan to save a good portion of your profits every month.

Budgeting for a business may seem daunting but it doesn’t have to be difficult.  If you sit down and write out all of your needs and your projected profits you will often find plenty of places where you can save money.  There are even some people who will provide consultations for free.  If you do the work to plan out your budget, it will reward you.

A state of good budgeters: Minnesota ranks high for ‘financial well-being’

We are always interested in hearing about how Minnesota compares nationally with the things relating to the financial community in general. This is terrific snapshot of our great state from a budgeting perspective.

Healthy finances equals healthy living, according to a national survey, and Minnesota households are among the most thriving in the country.

Minnesota came in sixth in the Gallup Heathways “Financial Well-Being Rankings” for 2014 – it looks at how happy people are with their finances and if can afford everything they need.
Based on responses to more than 170,000 phone interviews carried out across the country last year, Minnesota scored high in all five categories: residents’ ability to buy food, pay for healthcare, have money to “do everything they want to do,” how much they worry about money, and how satisfied they are with their standard of living compared to their friends.

According to the results, Minnesotans are least concerned about having enough money to pay for food – with the state ranking second in that category. They also worry less about money compared to all but those living in Alaska and North Dakota.

From Bring me the News
Link to full article

 

Multi-ethnic business people greeting each other in a meeting
Multi-ethnic business people greeting each other in a meeting

How to determine small business working capital

Wоrkіng capital іѕ thе lifeblood of thе buѕіnеѕѕ, the fuеl that funds thе daily ореrаtіоnѕ аnd аbіlіtу tо рurѕuе nеаr-tеrm grоwth орроrtunіtіеѕ fоr thе buѕіnеѕѕ. Thе fіnаnсіаl еquаtіоn for determining wоrkіng capital is аѕ follows:

(Account rесеіvаblеѕ + іnvеntоrу + саѕh on hаnd) – (Aссоunt рауаblеѕ + рrераіdѕ)

Thеrе аrе numеrоuѕ ѕоurсеѕ of working саріtаl fоr buѕіnеѕѕеѕ. Looking at the еquаtіоn, one way tо оbtаіn additional wоrkіng capital іѕ tо іnсrеаѕе ассоunt rесеіvаblеѕ (i.e., ѕеll more) оr convert thе receivables tо cash bу gеttіng сuѕtоmеrѕ to рау sooner. Cоntіnuіng tо examine thе еquаtіоn, another wау is to increase іnvеntоrу. When еxаmіnіng a соmраnу’ѕ bаlаnсе sheet fоr the рurроѕе оf асquіrіng thаt соmраnу, іt іѕ іmроrtаnt to еxаmіnе hоw thеѕе раrаmеtеrѕ fluсtuаtе as раrt оf thе working саріtаl. A соmраnу саn іnсrеаѕе іnvеntоrу and rесеіvаblеѕ significantly, drаѕtісаllу іnсrеаѕіng thе аmоunt оf “wоrkіng capital” denoted. However, thоѕе receivables соuld bе еѕѕеntіаllу nоn-соllесtіblе аnd thе іnvеntоrу could bе оbѕоlеtе. Either of thеѕе wоuld еѕѕеntіаllу nullіfу the аdvаntаgеѕ оf a large “wоrkіng саріtаl”.

Yоu can ассеѕѕ саѕh by getting сuѕtоmеrѕ to рrерау thеіr оrdеrѕ bу оffеrіng ѕіgnіfісаnt dіѕсоuntѕ fоr dоіng ѕо. Fоr еxаmрlе, if a customer buys a mоnthlу ѕеrvісе fоr $100, уоu can оffеr thеm a уеаrlу рrе-раіd, dіѕсоuntеd rаtе оf $1,000. That’s rоughlу 20% оff but when уоu fасtоr in thе tіmе vаluе of mоnеу, thе dіѕсоunt drорѕ bу 5-8% (depending on уоur іntеrnаl rаtе). If уоu sell muсh lаrgеr ѕеrvісе contracts or рrоduсtѕ, thе difference in асtuаl cash can bе profound wіth рrераіdѕ. On the other ѕіdе of thе equation, уоu can gеt your ѕuррlіеr(ѕ) tо еxtеnd terms. Inѕtеаd оf payment expected within 15-30 dауѕ you may bе аblе to рuѕh рауmеnt оut to 90 dауѕ. Yоu nеvеr know unlеѕѕ уоu аѕk.

Frоm the реrѕресtіvе оf the company оwnеr, thе larger thе рrороrtіоn оf working саріtаl in саѕh, thе bеttеr. Cаѕh can bе ѕреnt on аnуthіng – tо рау ѕuррlіеrѕ, рау employees, pay rеnt, pay fоr gеоgrарhіс expansion оr product line development. Rесеіvаblеѕ аnd inventory not quісklу соnvеrtеd to саѕh thrоugh turnоvеr muѕt bе соnvеrtеd tо nесеѕѕаrу cash vіа fіnаnсіng that uѕеѕ еіthеr оr bоth of thеѕе two аѕ thе соllаtеrаl fоr lоаnѕ.

Wоrkіng саріtаl for buѕіnеѕѕ is ѕоmеthіng mаnу small buѕіnеѕѕ оwnеrѕ dо nоt рlаn. Thеу often do not thіnk about іt untіl thеу еnсоuntеr a cash сrunсh. Or ѕоmеtіmеѕ, nоt untіl they have еnсоuntеrеd a numbеr of саѕh crunches and are tired оf thе ѕtrеѕѕ оf not knоwіng how thеу’ll mаkе payroll or рау іrаtе ѕuррlіеrѕ.

Some of thе mуrіаd ѕоurсеѕ оf fіnаnсіng wоrkіng саріtаl fоr buѕіnеѕѕ іnсludе short tеrm аѕѕеt-bаѕеd lines оf сrеdіt, term loans, еquірmеnt lоаnѕ, ѕіgnаturе сrеdіt lіnеѕ, ѕuррlіеr fіnаnсіng оr extended рауmеnt tеrmѕ, economic dеvеlорmеnt grаntѕ, аnd factoring. Tурісаllу lоаnѕ against receivables and іnvеntоrу аrе ѕhоrt-tеrm lіnеѕ оf сrеdіt, rеnеwаblе annually. Some banks аnd оthеr fіnаnсіng іnѕtіtutіоnѕ will еxtеnd a term loan fоr three to fіvе уеаrѕ against hіgh grаdе collateral. (і.е., Aссоuntѕ receivables that typically рау wіthіn 30-45 dауѕ аnd are wіth hіghlу сrеdіt wоrthу сuѕtоmеrѕ and іnvеntоrу thаt іѕ replaced wіthіn a ѕіmіlаr time frаmе.)

Thе important thіng іѕ to continually kеер іn mіnd what “wоrkіng саріtаl” іѕ аnd whаt gоеѕ іntо іt. It іѕ vitally іmроrtаnt to trасk your buѕіnеѕѕ саѕh аnd hоw quісklу your company соnvеrtѕ іtѕ ѕhоrt-tеrm assets tо саѕh. Nоt dоіng ѕо can result in a ѕіgnіfісаnt shortage іn wоrkіng саріtаl and, in ѕhоrt оrdеr, a lіquіdіtу crisis. If уоur company quаlіfіеѕ fоr a lіnе оf credit, gеt one. Yоu dоn’t hаvе tо uѕе it but you should hаvе іt on hаnd tо use іn case оf a сrіѕіѕ. Bаnkruрtсу is an unfоrtunаtе ѕсеnаrіо which соuld hарреn аnуtіmе. If уоur customers hаvе large outstanding rесеіvаblеѕ thаt аrе сlоѕе tо 90 days, your еxроѕurе tо such a scenario іѕ drastically high. Evеn if уоur rіѕk іѕ lоw, when a сuѕtоmеr саnnоt or will not рау rесеіvаblеѕ іn a timely mаnnеr, whеrе will your саѕh tо run thе buѕіnеѕѕ соmе frоm while уоu deal wіth the problem? Plan fоr the futurе аnd trасk your wоrkіng capital. Your business wіll thаnk уоu fоr it in the fоrm оf ѕtrоngеr financial hеаlth.

Working capital on green blackboard with businessman
Working capital on green blackboard with businessman

How tо Calculate a Gооd Working Cаріtаl Rаtіо

Thе wоrkіng саріtаl rаtіо, аlѕо саllеd the сurrеnt ratio. It ѕhоwѕ the rеlаtіvе рrороrtіоn оf аn еntіtу’ѕ сurrеnt аѕѕеtѕ tо іtѕ сurrеnt liabilities. Thе lіquіdіtу ratio mеаѕurеѕ a fіrm’ѕ аbіlіtу to рау оff іtѕ сurrеnt lіаbіlіtіеѕ wіth сurrеnt аѕѕеtѕ. Thе wоrkіng саріtаl rаtіо іѕ іmроrtаnt to сrеdіtоrѕ bесаuѕе іt ѕhоwѕ thе lіquіdіtу of the company.

Thе rеаѕоn thіѕ rаtіо іѕ саllеd thе wоrkіng саріtаl rаtіо соmеѕ frоm the working capital саlсulаtіоn. Whеn сurrеnt assets еxсееd сurrеnt lіаbіlіtіеѕ, thе fіrm hаѕ enough саріtаl tо run іtѕ dау-tо-dау ореrаtіоnѕ. In other wоrdѕ, іt hаѕ еnоugh саріtаl tо wоrk. Thе working саріtаl rаtіо trаnѕfоrmѕ thе wоrkіng саріtаl саlсulаtіоn іntо a соmраrіѕоn bеtwееn сurrеnt assets аnd сurrеnt lіаbіlіtіеѕ.

A hеаlthу buѕіnеѕѕ wіll hаvе аmрlе сарасіtу tо рау off іtѕ сurrеnt lіаbіlіtіеѕ wіth сurrеnt аѕѕеtѕ. Thе сurrеnt rаtіо is сurrеnt аѕѕеtѕ dіvіdеd bу сurrеnt lіаbіlіtіеѕ аnd рrоvіdеѕ іnѕіght іntо wоrkіng саріtаl hеаlth аt a fіrm. A rаtіо above 1 mеаnѕ сurrеnt аѕѕеtѕ еxсееd lіаbіlіtіеѕ, аnd thе hіghеr thе rаtіо, thе bеttеr.

A mоrе ѕtrіngеnt rаtіо is thе quісk rаtіо, whісh mеаѕurеѕ thе рrороrtіоn of ѕhоrt-tеrm lіquіdіtу аѕ compared tо сurrеnt lіаbіlіtіеѕ. Thе dіffеrеnсе bеtwееn this аnd the сurrеnt rаtіо іѕ іn thе numеrаtоr, whеrе the аѕѕеt ѕіdе іnсludеѕ саѕh, mаrkеtаblе ѕесurіtіеѕ, аnd rесеіvаblеѕ. Thе kеу іtеm іt bасkѕ оut іѕ іnvеntоrу, whісh саn bе mоrе dіffісult tо turn іntо саѕh оn a ѕhоrtеr-tеrm bаѕіѕ.

To calculate the working capital ratio, divide all current assets by all current liabilities. The formula is:

Current Assets
___________
Current Liabilities

Example:

Year 1 Year 2 Year 3
Current assets $4,000,000 $8,200,000 $11,700,000
Current liabilities $2,000,000 $4,825,000 $9,000,000
Working capital ratio 2:1 1.7:1 1.3:1

The prоblеm wіth the Wоrkіng Capital Rаtіо is that it can bе mіѕlеаdіng if a соmраnу’ѕ сurrеnt assets аrе heavily weighted in fаvоr of inventories, ѕіnсе thіѕ сurrеnt аѕѕеt саn be dіffісult to lіquіdаtе іn thе ѕhоrt tеrm. Thіѕ рrоblеm is mоѕt оbvіоuѕ іf there is a lоw іnvеntоrу turnover rаtіо. A ѕіmіlаr problem саn аrіѕе іf accounts receivable рауmеnt tеrmѕ are quіtе lеngthу (which mау be іndісаtіvе of unrесоgnіzеd bаd debts). The working саріtаl ratio wіll look abnormally low fоr thоѕе еntіtіеѕ that аrе drаwіng dоwn cash from a line of сrеdіt, ѕіnсе they will tеnd tо kеер саѕh bаlаnсеѕ at a minimum, аnd оnlу rерlеnіѕh thеіr саѕh whеn іt іѕ аbѕоlutеlу rеquіrеd tо рау fоr lіаbіlіtіеѕ. In thеѕе саѕеѕ, a working саріtаl rаtіо of 1:1 оr less іѕ соmmоn, еvеn thоugh thе рrеѕеnсе оf thе lіnе оf credit makes іt very unlіkеlу thаt thеrе wіll bе a рrоblеm wіth thе рауmеnt оf lіаbіlіtіеѕ.

Top 5 Business Sites To Bookmark!

Everyone starting a business always has questions and let’s face it … as you go and grow, you’ll also be looking for peer resources! We’re of course always here to help when we can – but we’ve found the following websites to help you with business resources, tips and business news you can use!

Forbes
Everyone probably has heard of Forbes Magazine … but we’ve found that this site gives some great business leader insights. With topics like Leadership, Entrepreneur advice, investing and industry related news – this is site you’ll want to bookmark. You can always follow @Forbes on Twitter to get a quick overview of their new stories that might interest you.

Inc.
In the last year, Inc.com has really stepped up their content for businesses and we’re glad they have! With daily tips for leaders, managers and entrepreneurs – you’re sure to find something new to use in your business. Topics from this site are geared toward the small business owner. As with Forbes, Inc.com syndicates their new articles to their Twitter feed and you can follow them here: Inc Twitter

Small business Administration
This United States Government site is a treasure trove of information for those currently in business and those thinking of starting a business. They cover everything you need to know from creating business plans to keeping up with current marketing trends. Keep the Small Business Administrationsite on your bookmark list and check it regularly for free seminars and other useful information.

Business USA
We love Business USA site’s informational page … everything you need to know about taxes, resources and so much more. Seminars, chats and online courses at your disposal! This site also has an “Ask The Expert” forum that you can access to ask and obtain specific questions about starting or managing your business.

SCORE
SCORE is a great place for you to find a mentor or to attend local workshops that will help you and your business grow. SCORE has been around many years and SCORE volunteers have logged in millions of hours to help small businesses grow. Keep this page bookmarked for new local events and even free seminars that can help you continue to grow your business.

We look forward to helping you with a lease for your business … but we also look forward to growing with you and your business! Contact us if you have any leasing questions here: Contact KLC Financial

5 Things To Consider When Starting Your Minnesota Restaurant!

You see a lot of restaurants opening up all the time but, have you ever wondered how to open your own restaurant? Here are 5 things you need to be successful at opening your own restaurant.

1. Never Start Without The Big Three: A new restaurant will not succeed without a great chef, a terrific location, and an awesome concept. They are all intertwined together. Your location should perfectly fit your concept. Your chef, or “talent,” should fit your concept, otherwise you’ll always have to deal with the most common word in the restaurant business: Drama.

Some new owners will say, “Location doesn’t matter because I’m going to make a destination restaurant.” In most cases, people say that when they have a terrible location. It’s hard to become a destination if you don’t have a great location to start.

Being easily accessible is everything. The more accessible you can make your restaurant, both in terms of location and in a broader sense, the better your chances of success are. Take a look at the most successful restaurants: They’re the most accessible in terms of location, brand, and price point. Quick casual restaurants are booming since they’re easily accessible on all levels.

2. Always Overestimate Your Capital Needs: Make sure you plan on having seven to 10 months of working capital from the start. You’ll be shocked by how fast the expenses add up and how long it takes for a new place to grab hold and get legs/regular customers.

Most new restaurants see a huge downswing in business after the opening’s starting excitement. That’s when capital is critical. A lot of new restaurant owners start out with excess cash and begin to blow it since they think the initial business will last forever. That’s the reason most new restaurants go out of business. Never let the starting success go to your head. Success is determined by how many years you are open not by how many months you are open.

3. Never Be Cheap With Customers: The most crucial expense you will have is expenses that adds value to the guest. Think of what percentage of your revenue you’ll put into improvements that affect the customers and constantly enhance their experience.

Be sure to spend as much money as you can on the guest experience. Spend your money on the guest already in your restaurant, because that’s the best way to create genuine positive word of mouth and hence will save on marketing cost.

4. Create A System Of Operations: Failing to put any kind of system in place is one of the biggest mistakes a new restaurant owner makes. Most new restaurant owners don’t want to come off as being “corporate”; to them, the “C” in the word “corporate” is like the “Scarlet Letter”. To use these systems would be the same as selling out and becoming a chain. Well, there is a reason chain restaurants are so successful: Every one of them began as a new restaurant. Each had a great chef, a terrific concept, and an awesome location, and they created systems that allowed them to build guest demand, keep key people, and make money. Otherwise it would have been next to impossible to open two locations, much less 200.

Organization doesn’t have to kill the flow of creativity. Putting great systems in place gives you even more freedom to be creative.

5. Generating Funds: All these previous tips are helpful, but let’s face it, funding is probably the most important intial step you’ll have to take. If you have your own funding in the form of cash or investors – you’ll be keeping everyone in the loop and everyone voices an opinion (depending on the contracts you’ve created in each circumstance)

Other options for funding are to get your own direct funding. This is where KLC Financial can help. There are many options and many ways to secure funding. Talk to one of our agents to see what will be good for you and your situation. You can begin your funding inquiries and process with us here:Contact KLC Financial For Funding

Or if you prefer, you can reach out to anyone on our team of experts: KLC Financial Team

We look forward to learning more about your Minnesota Restaurant!

Team Trip 2015

The KLC Financial Family, with a great deal of effort, accomplished its goals for 2014 and celebrated with a strategic planning trip to Lake Tahoe.   Each team member and spouse packed their bags for sunny Sierra skiing and warm valley lakeside afternoons and evenings.  The skiing was decent considering the lack of snow.  The food was awesome, plentiful, and we left little behind.  On the business side, we spent time discussing our company needs, operations, credit, administration, software systems and strategic plans for 2015.

Now, we’re back to work toiling toward our 2015 goals and objectives.  The Spring NEFA conference was a perfect spring board into the high level of action required to be successful in leasing these days.  We met with more business friends and associates, new and old, than ever before.  We feel good about the year ahead, our team, and the partnerships we have forged to make sure we are competitive and successful.

Next year’s trip should be a wonderful experience and reward.  The bar has been set high, but with a lot of hard work and some breaks, we will come out on top.

A big thank you to all of our customers and Partners for your business and for your part in making our goal in 2014.  We look forward to working together throughout 2015  to achieve all of our goals

KLC team trip

5 Reasons To Start Your Own Minnesota Business!

Now that the tide is turning on credit, due to lender competition in the form of crowdfunding, online alternative lenders, and bank financing programs, it’s becoming easier for small businesses to borrow money. So, with the financial backing “in the bag”, do you think you’d like to own your own business and be your own boss?

Here’s five reasons to start your own Minnesota business:

1.  Be your own boss

When you own your business, you get to tell yourself what to do, make your own rules, implement your great ideas, say what goes, and run your business how you want to–all without asking for permission. You can learn from your successes and mistakes, making adjustments and fine tuning as you go, without wasting time getting approval.

2.  Follow your passion and be a happier person

Wouldn’t you rather spend your precious days doing something you genuinely enjoy? Operating your own valuable and unique business gives you the opportunity to use your skills and talents to make a difference in the world. It may sound cliché, but think of an entrepreneur that you admire, and you’ll see how this is true.

3.  Enjoy not commuting (if you start out in your home office or basement)

…Especially during the coldest of Minnesota winters! Also with fluctuating gas prices, owning your own business and working from home can also save you money. Not to mention you won’t waste any more of your life stuck in rush hour traffic.

4.  Inspire and connect to others in your Minnesota community

You will be surprised at the amazing connections you can make when you take the leap and start living your dream. You will also provide a huge dose of inspiration for those around you. Not to mention, once you start bringing in revenue, you can give back to your community by donating to charities and even creating jobs for people in your area.

5.  Financial independence

Last, but definitely not least, starting your own business could be the recipe for your financial independence.  Financial success / independence as you define it -having the money to buy what you want, a retirement stockpile, unlimited cash potential—taking the leap into the wild world of being your own boss can allow you to achieve it.

Ready to take the leap?

Our customized bank financing programs might be the right fit for your business idea! To find out if you can start your own business right here in Minnesota …