Are you stuck in your loan with excessive exit fees and high interest rates?

Are you on your knees because of what your lender has done to you?

I have something very exciting to share with you. I have joined forces with Dominique Grubisa to bring you a very special webinar on Wednesday night. Please read this email right to the end as it could change your whole financial future.

Reserve your seat at Wednesday’s webinar to learn how you could:

5. Get your break costs waived (or if you’ve paid them, get them back).

Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/990848907

Dominique Grubisa has practised as a barrister for 14 years, is an entrepreneur, writer and speaker. She recently appeared on Channel 9’s ACA where she showcased her commercial and legal debt management skills in successfully reducing a viewer’s debt down from payments in excess of $20K per month to $642 per month. A frequent speaker and seminar leader, Dominique speaks nationwide on the topic of “Thriving, Not Just Surviving in the Recession”.

It has come to Dominique’s attention through working with clients having problems with lenders that a large majority of them have complaints.

Dominique has attempted to enter negotiations with lenders like these on behalf of various clients and has found them to be heavy handed, bloody minded, arrogant and offensive and basically very difficult to deal with.

They have engaged in conduct which would see them paying out big claims for damages if anyone ever took them on but they see themselves as bulletproof which they are because they have reduced all her clients to their knees by their conduct and they know that no-one has the funds to ever take them on because they have effectively put all their customers into a position whereby they have their backs to the wall.

Whilst ever we are in damage control mode over these lenders’ high interest rates, excessive fees and charges, prohibitive break costs and other unconscionable conduct, we are unable to launch an attack.

Well enough is enough, we have a good case and they must be stopped.

Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/990848907

Register now for Dominique’s webinar where she will show you:

3. How to regain control of your assets and investments without your lender holding a gun to your head.

Interest rates are going up and these lenders are just going to jack them up even more and widen their profit margin further after feathering their nest during the last year or so of record low rates by maintaining higher rates than most other lenders charge for credit cards! They have already breached their contracts with brokers and abolished their trail commissions. This means they have more funds than ever before but are still going to hold us to ransom, because they can.

These lenders got you all in with big promises and by meeting the market and then rewrote the rules and are now holding you hostage.

The good news is that what they have done and are continuing to do is in breach of Federal laws in Australia. They are arguably liable, not only for what they have charged you, but the flow on effect of what this has cost you as they set the dominoes in motion.

This webinar is a f*r*ee online meeting where you can see Dominique’s screen and hear her voice as she talks you through the law and your rights. You can’t afford to miss this as it could change your whole financial future.

Go and register now and I’ll talk to you on Wednesday night.

Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/990848907

Regards

Lee Sutherland

P.S. You can’t afford to miss this as it could change your whole financial future.
Space is limited.
Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/990848907

Wall Street posted its strongest gains for the year after Citigroup
announced it had been operating at a profit for the
first 2 months of the year
• Dow Jones +379.44 pts, S&P500 +43.07 pts and Nasdaq
+89.64 points
• Citigroup jumped 38% after it wrote in an internal memo it
had posted a profit in the first 2 months of 2009
• JP Morgan Chase also climbed 23% and Bank of America
climbed 28%

Isn’t it amazing how starved we are of good news. A simple Citbank internal memo stating that they had made a profit in the first two months of 2009 has seen the market rally and banks sky rocket.

It just goes to show how fast things could turn around if we get some more good news.

Here’s to some more good news!
Lee Sutherland

By Ben Fewtrell

Recently I was presenting to a group of business owners about understanding business financials, after I had stated that you can go broke making a profit, an audience member challenged me and asked how it is possible. So I thought it would be a good idea to cover the topic in this issue.

Firstly, we need to understand the basic fundamentals of business. You need to sell a product or service, and make a profit. A business is a ‘commercial, profitable enterprise that works without you’. You have probably heard the saying ‘Profit is king’ and also that ‘Cash flow is king’, so which one is true?

Well both are, here is a simple formula for business failure – No Profit x No Cash flow = No Business. To succeed in business you need to make sure you are making a profit and you also maintain a healthy, positive cash flow.

Secondly, we need to understand what going ‘broke’ means. In business being ‘broke’ is known as being ‘insolvent’. There are several definitions for this, here are some definitions I found after I Googled the term; ‘Not having sufficient financial resources to meet financial obligations’, ‘When liabilities are greater than assets’, ‘When a company cannot pay its debts when they are due’. Basically, when you can no longer pay your debts, you are insolvent!

Finally, you need to understand that some things you pay for end up on your ‘profit and loss’ statement and others end up on your ‘balance sheet’. An expense like rent will be entered as an expense on your profit and loss statement, but when you buy equipment that will last you several years, it gets entered as an ‘asset’ on your balance sheet, then each year you will claim depreciation as an expense, and if you took a loan out to buy the equipment, the loan will be entered as a ‘liability’ on your balance sheet. I’ll kick off with a simple example to make sure understand the concept.

Let’s say you own a coffee shop, and your fixed costs (rent, wages, electricity etc.) are $2000 per week, and you have a 50% gross profit margin (this is calculated by deducting your cost of sales from the sales amount). In this example you need $4000 in sales to ‘break even’, that is, pay your fixed costs of $2000 and the $2000 cost of getting the sales, your profit is zero. What if you were also repaying a loan for buying the business, the only part of this that will show on your profit and loss is the interest on the loan, the rest of the payment is reducing your liability on the balance sheet. All of a sudden, you are in a negative cash flow situation.

So how do you make sure you do not follow the many that have already mistakenly gone broke, whilst making a profit? The simplest way is to make sure you manage your money well, it is one of the resources you must have control of, or you may end up in trouble.

Here are some ways to make sure you manage to keep your cash flow positive…

1. You need to have a cash flow forecast for at least 3 months in advance, this way you can identify problems before they occur.

2. If you have customers that have ‘accounts’ with you, make sure you collect your money by the due date, don’t let customers drag out their payments to 60, 90 or even 120 days. You can even make special offers to customers that pay quickly. Sometimes it may be worthwhile considering ‘factoring’ your debts if your clients have a valid reason for taking a long time to pay.

3. If possible, get your clients to pay a deposit upfront.

4. Reduce your stock turn, this way you can make sure you are selling your stock before you have to pay your suppliers for it.

5. Negotiate longer payment terms with your suppliers.

6. Keep your costs to a minimum; avoid wasting money on things that are not necessary.
Set a budget, and stick to it!

7. Never borrow money just to ‘get out of trouble’, in most cases I have seen, this just makes the situation worse!

I would suggest that if numbers is not your strong point; get your bookkeeper or accountant to help you. Finally, if you do end up in situation where you cannot pay your bill(s), talk to your creditor(s) and make an arrangement, most people will understand and will let you pay it off, and if this fails you might need to get some professional help.

These are some great pointers from Ben.

Until next time, may you have all the cashflow you need!