The new posting which was required to be up by November 14, 2011 has been deferred until the end of January after lawsuits and complaints from employers. The posting is on an 11" by 17" paper. I recommend to my clients to download from the NLRB website or to ask your poster provider if it will be included in the poster package for 2012. Also, when ordering poster packages, make sure that you are ordering for your state and local needs as well as federal needs. Most poster providers offer local specific packages.
Here are some links to poster providers:
Free from the Department of Labor-
http://www.dol.gov/compliance/topics/posters.htm
You will also need the free posters from your own state.
Pay for posters which give you all in one or two packages:
http://www.postersolution.com
http://www.laborlawcc.com
http://offers.gneil.com/posterguard/90137_PosterGuard_LP/90137_PosterGuard_LP.html?lms=2627&gclid=CI-WouWX3qsCFQFS7AodqhrYNQ
I am not endorsing anyone of these and there are plenty of others. Just Google Employment Posters.
Call me if you need some help with this.
Monday, October 10, 2011
Sunday, September 11, 2011
The Flat Fee Lawyer - Legal Services without Fee Suprises: How Many Lawyers Does It Take To Close a Deal?
The Flat Fee Lawyer - Legal Services without Fee Suprises: How Many Lawyers Does It Take To Close a Deal?: It depends . I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. Th...
How Many Lawyers Does It Take To Close a Deal?
It depends.
I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. The question to ask, though, is on what it depends. Since I spent most of my career hiring lawyers and a very short amount of time in recent history offering legal services to others, I thought I would share with my followers some of the methods I have used in managing legal cost in business transactions.
First of all, every deal is different. I am closing a deal for a client tomorrow - the only lawyers involved are the attorney for the buyer and me. Our clients negotiated the business terms and the other lawyer and I negotiated legal terms. We were amicable, professional and very carefull to protect our respective client's interests. I offered comments that streamlined the closing to a sign and close and she, after consideratuon, recommended the process to her client. The streamlined process resulted in lower legal fees because my work was completed with a few calls over a few days and my client is pleased because he closes the deal and receives the purchase price just 3 days after hiring me.
Not all deals are that easy. Some deals are very complex and require post signing due dligence or escrows, government filings or other closing processes and services. In my career, I have closed some deals which were so complex that I worked with mutiple firms representing just my client. Teams of young lawyers producing schedules and closing documents may be necessary in multi-party deals, complex financing and restructuring transactions, but for most deals an experienced attorney negotiating with a paralegal or a young lawyer working on the documents will offer leverage on fees and the experience needed to do the job well.
At The Flat Fee Lawyer, I work with a team of affiliates or of counsel lawyers and paralegals to create the right team of experience and leverage. By offering a flat fee, my client is never surprised by the fee. In order to provide a flat fee quote, or if the client prefers hourly rates, in order to manage those lawyer hours, I work closely with the client to create a clear term sheet, identify open issues, identify who will negotiate the open terms, and how we will make sure the other side is on board for a collaborative process.
Flat fee pricing can be challenging when the parties are not collaborating well or are inclined to make the process difficult. Similarly, counsel has the potential to expand the work or streamline when appropriate. To ensure that you are getting quality representation at an affordable price, you can take the following actions:
1. Interview your lawyer before you hire;
2. Ask questions about specific experience of the team, including who will coordinate due diligence, schedules and agreements;
3. Ask what work you and your team can do to assist in the work such as creating schedules;
4. Go over the termsheet and make sure you and your lawyer understand the scope and detail of the deal;
5. Ask your lawyer at the start how many hours are involved, or what the fee will be- some firms, like mine will provide a flat fee quote or cap;
6. Talk to the other party and ask how his team will be staffed and agree to a collaborative tone, even when negotiating the toughest points;
7. Stay involved and informed on progress as well as accumulated fees - ask attorneys to submit time weekly and report total cost to you so that you will not be surprised.
Remember, excellent legal work is not determined by size of team or weight of paper. Creative and thoughtful drafting of a clearly defined transaction is an art in and of itself.
I am not trying to be funny nor am I suggesting that this is an easy question to answer. The answer really is, it depends. The question to ask, though, is on what it depends. Since I spent most of my career hiring lawyers and a very short amount of time in recent history offering legal services to others, I thought I would share with my followers some of the methods I have used in managing legal cost in business transactions.
First of all, every deal is different. I am closing a deal for a client tomorrow - the only lawyers involved are the attorney for the buyer and me. Our clients negotiated the business terms and the other lawyer and I negotiated legal terms. We were amicable, professional and very carefull to protect our respective client's interests. I offered comments that streamlined the closing to a sign and close and she, after consideratuon, recommended the process to her client. The streamlined process resulted in lower legal fees because my work was completed with a few calls over a few days and my client is pleased because he closes the deal and receives the purchase price just 3 days after hiring me.
Not all deals are that easy. Some deals are very complex and require post signing due dligence or escrows, government filings or other closing processes and services. In my career, I have closed some deals which were so complex that I worked with mutiple firms representing just my client. Teams of young lawyers producing schedules and closing documents may be necessary in multi-party deals, complex financing and restructuring transactions, but for most deals an experienced attorney negotiating with a paralegal or a young lawyer working on the documents will offer leverage on fees and the experience needed to do the job well.
At The Flat Fee Lawyer, I work with a team of affiliates or of counsel lawyers and paralegals to create the right team of experience and leverage. By offering a flat fee, my client is never surprised by the fee. In order to provide a flat fee quote, or if the client prefers hourly rates, in order to manage those lawyer hours, I work closely with the client to create a clear term sheet, identify open issues, identify who will negotiate the open terms, and how we will make sure the other side is on board for a collaborative process.
Flat fee pricing can be challenging when the parties are not collaborating well or are inclined to make the process difficult. Similarly, counsel has the potential to expand the work or streamline when appropriate. To ensure that you are getting quality representation at an affordable price, you can take the following actions:
1. Interview your lawyer before you hire;
2. Ask questions about specific experience of the team, including who will coordinate due diligence, schedules and agreements;
3. Ask what work you and your team can do to assist in the work such as creating schedules;
4. Go over the termsheet and make sure you and your lawyer understand the scope and detail of the deal;
5. Ask your lawyer at the start how many hours are involved, or what the fee will be- some firms, like mine will provide a flat fee quote or cap;
6. Talk to the other party and ask how his team will be staffed and agree to a collaborative tone, even when negotiating the toughest points;
7. Stay involved and informed on progress as well as accumulated fees - ask attorneys to submit time weekly and report total cost to you so that you will not be surprised.
Remember, excellent legal work is not determined by size of team or weight of paper. Creative and thoughtful drafting of a clearly defined transaction is an art in and of itself.
Friday, August 26, 2011
The Battle of Legal Fees - Part 2: So How Does a Lawyer Make Money with a Flat Fee Service?
The short answer is that it is not that hard. Good Lawyers who provide good advice get repeat business because their clients value their services. My clients pay me for my counsel and work with me because I offer more than document drafting services when I counsel them.
With 25 years of business and legal experience, I am able to guide a client through the process of getting a business started, navigating the difficult situations, permitting and licensing requirements, the practical realities of employment matters and even books and records. Much of what I offer is a road map to success.
As they say on TV, forming an LLC - $250; helping clients make money - PRICELESS!
Repeat business, word of mouth and experience are the key to making a FLAT FEE LEGAL SERVICE profitable.
At The Flat Fee Lawyer, we start with the premise that our clients need assistance thinking through a business plan more than they need assistance completing forms. We charge for the value our clients receive in counsel not for the time spent completing tasks. Our best client is the one who calls when s/he has a question, before it is a problem or lawsuit. We enable that by offering service without fear of the fee for each phone call. Our clients are not charged for phone calls and time, but instead for access to our firm resources. We customize our General Counsel service to meet the client's needs and expectations. We adjust as the Client's business needs change. Check us out to see how we work. www.TheFlatFeeLawyer.com
With 25 years of business and legal experience, I am able to guide a client through the process of getting a business started, navigating the difficult situations, permitting and licensing requirements, the practical realities of employment matters and even books and records. Much of what I offer is a road map to success.
As they say on TV, forming an LLC - $250; helping clients make money - PRICELESS!
Repeat business, word of mouth and experience are the key to making a FLAT FEE LEGAL SERVICE profitable.
At The Flat Fee Lawyer, we start with the premise that our clients need assistance thinking through a business plan more than they need assistance completing forms. We charge for the value our clients receive in counsel not for the time spent completing tasks. Our best client is the one who calls when s/he has a question, before it is a problem or lawsuit. We enable that by offering service without fear of the fee for each phone call. Our clients are not charged for phone calls and time, but instead for access to our firm resources. We customize our General Counsel service to meet the client's needs and expectations. We adjust as the Client's business needs change. Check us out to see how we work. www.TheFlatFeeLawyer.com
Sunday, August 21, 2011
The Battle of Legal Fees- Why is a Flat Fee Better for the Client and the Attorney
Since launching my new Flat Fee Lawyer concept, I have been inundated with questions. Lawyers want to know how I make money and warn me that I need to be clear with clients about what is and is not included. Potential clients wonder if the quality of work delivered will be as good as it would be if I charged an hourly rate and whetherthe price is fair. Current clients say Thank you and continue to give me business on a regular basis.
Today, and over the next few weeks, I am going to address the questions some of you have and I invite you to join the conversation through Tweets, email, Facebook and Linked In.
Why It Works For My Clients
I spent most of my career as a lawyer, but also a client. I purchased outside legal services and hired in house lawyers. At times, I worked with young law firm lawyers who did not understand the transaction, and as the client, I had to train them and pay them to learn on my time and nickel. At other times I had the privilege of working with lawyers charging $1,200 per hour and I marveled at how quickly they came to a brillant legal and strategic solution....true elegance. The bottom line is, that like all products and services, when purchasing legal services you should get what you pay for and very often you do.
The problem is in the incentives offered by many firms. At most firms, the more hours a lawyer bills, the better. If a young lawyer is being trained, a mentor and the young lawyer may bill time into the file. For young associates, training is imperative and I willingly train young lawyers and interns. I just do not think my clients should pay my hourly rate plus the associate's hourly rate for training. Even when I need to learn new areas which expand my practice, my client should not pay for my time learning, if there are other lawyers who can perform appropriately and are already trained.
Similarly, in order to pay an associate or partner more money, since there really are a limited number of biilable hours in a year (you can laugh now), the hourly rate is increased. This of course makes sense in that the more experienced the lawyer, the greater the skill, the greater the value delivered. But this is where the model breaks down. If the rate goes up and the team of lawyers in the meeting or working on the project expands, I question whether the client receives additional value.
Flat Fee Billings Are Client Centric Instead of Law Firm Centric
When I set a fee, I do not look at the amount of time it takes to do the work, nor the person or team performing the services (I work with independent contractors rather than employees), but rather the value of the work delivered to the client. I always set a fee that the client can budget, without surprises, and I target a fee consistent with the project. It is not hard to set a fee because I know the type of work I handle and I know both what it takes to do the work right, and what it is worth to the client to have the right work delivered. I also pride myself on setting a time for completion of the work and delivering on time every time.
When a new client contacts me, I am very clear about the type of work I do. For instance, I was asked to write an appeal last week. I am not a litigator and I would not take the project. The client was dissappointed, but after 25 years with a preeminent (AV) rating from Martindale-Hubbell, I am not about to venture into unchartered territory. I gladly referred her to another attorney.
To conclude this section, my clients are happy because they do not wonder what the ultimate fee will be and they are confident that this AV lawyer is committed to delivering the highest quality work.
More to come on the questions lawyers ask..... How do I make money.
Today, and over the next few weeks, I am going to address the questions some of you have and I invite you to join the conversation through Tweets, email, Facebook and Linked In.
Why It Works For My Clients
I spent most of my career as a lawyer, but also a client. I purchased outside legal services and hired in house lawyers. At times, I worked with young law firm lawyers who did not understand the transaction, and as the client, I had to train them and pay them to learn on my time and nickel. At other times I had the privilege of working with lawyers charging $1,200 per hour and I marveled at how quickly they came to a brillant legal and strategic solution....true elegance. The bottom line is, that like all products and services, when purchasing legal services you should get what you pay for and very often you do.
The problem is in the incentives offered by many firms. At most firms, the more hours a lawyer bills, the better. If a young lawyer is being trained, a mentor and the young lawyer may bill time into the file. For young associates, training is imperative and I willingly train young lawyers and interns. I just do not think my clients should pay my hourly rate plus the associate's hourly rate for training. Even when I need to learn new areas which expand my practice, my client should not pay for my time learning, if there are other lawyers who can perform appropriately and are already trained.
Similarly, in order to pay an associate or partner more money, since there really are a limited number of biilable hours in a year (you can laugh now), the hourly rate is increased. This of course makes sense in that the more experienced the lawyer, the greater the skill, the greater the value delivered. But this is where the model breaks down. If the rate goes up and the team of lawyers in the meeting or working on the project expands, I question whether the client receives additional value.
Flat Fee Billings Are Client Centric Instead of Law Firm Centric
When I set a fee, I do not look at the amount of time it takes to do the work, nor the person or team performing the services (I work with independent contractors rather than employees), but rather the value of the work delivered to the client. I always set a fee that the client can budget, without surprises, and I target a fee consistent with the project. It is not hard to set a fee because I know the type of work I handle and I know both what it takes to do the work right, and what it is worth to the client to have the right work delivered. I also pride myself on setting a time for completion of the work and delivering on time every time.
When a new client contacts me, I am very clear about the type of work I do. For instance, I was asked to write an appeal last week. I am not a litigator and I would not take the project. The client was dissappointed, but after 25 years with a preeminent (AV) rating from Martindale-Hubbell, I am not about to venture into unchartered territory. I gladly referred her to another attorney.
To conclude this section, my clients are happy because they do not wonder what the ultimate fee will be and they are confident that this AV lawyer is committed to delivering the highest quality work.
More to come on the questions lawyers ask..... How do I make money.
Monday, August 15, 2011
PRO Masterminds: The State of the Mortgage Foreclosure Mediation Program from the Mediator's Point of View
I had the opportunity to speak with the Masterminds group of the Pinellas Realtors' Organiztion ("PRO") this morning. I was delighted to have a lively and very engaged, larger than expected crowd. My topic was "The State of Residential Mortgage Foreclosure Mediation from the Mediator's Point of View," and I quickly learned that the professional realtors have limited knowledge of the mediation process but loads of experience in dealing with the banks on short sales. I am very sure I learned as much from them today about the realty of the short sale market as they did from me on mediation.
Some of the topics we discussed:
Some of the topics we discussed:
- The difference between arbitration and mediation
- Pre-suit v. Post Suit mediation
- The need to provide current (within 60 days) documentation --- the more thorough and complete, the more likely there will be a mediation resolution
- Short Sales, Short Sales, Short Sales
- Short sales need to be approved by the bank in order for the deficiency to be waived
- The banks expect the property to be marketed for 90 days before considering a short sale
- A licensed Realtor must be engaged to market the property and that realtor needs to work closely with the bank to ensure the necessary information is in the bank's hand when the bank considers a short sale
- Short sales, like other modifications and forgiveness programs, are designed to address hardship. Homeowners are not entitled to a short sale simply because they want to sell below mortgage amount
- Multiple liens complicate any modification or short sale and the borrower must be actively engaged in the discussion with second and more junior lien holders to facilitate a solution
Unfortunately, time was short and we did not get to discuss tenants in foreclosed properties or other opportunities for realtors and investors in this less than orderly residential real estate market.
I agreed to chat with the group again in a couple of months.
Many thanks to Linda Goldfarb of LSG Consulting Services for arranging the event this morning. She has a mastermind meeting each month. The 35+ attendees were from both sides of the bay ---- a wonderful knowledge sharing opportunity for all.
Wednesday, August 10, 2011
Florida Attorney Rochelle Friedman Walk Admitted to Martindale-Hubbell Bar Register of Preeminent Women Lawyers™
Walk is now among the less than 5% of women lawyers
that have been recognized with an AV Preeminent rating.
that have been recognized with an AV Preeminent rating.
Tampa, FLA, August 5, 2011: Rochelle Friedman Walk, an experienced, thoughtful and strategic attorney, business executive and neutral mediator licensed to practice in both Florida and Ohio, was recently selected for the inaugural edition of the Martindale-Hubbell Bar Register of Preeminent Women Lawyers™. The Register is exclusively for women attorneys who have received the highest possible rating in both legal ability and ethical standards from their peers.
For over 90 years, the Bar Register has been a unique guide to the legal community's most eminent professionals. It includes only those select law practices that have earned the highest rating in the Martindale-Hubbell Law Directory and have been designated by their colleagues as preeminent in their field. Walk is now among the less than 5% of women lawyers that have been recognized with an AV Preeminent rating.
In her more than twenty-five years of business and legal experience, Walk has served as the chief restructuring officer, chief administrative officer, chief legal officer and Business Unit Manager to several national and multi-national business organizations. As an attorney, she has represented plaintiffs and defendants in a wide range of legal transactions and disputes including complex commercial, insurance coverage, real estate, construction, financial restructuring and employment matters. She has served as an ombudsman in employment, elder care, NAACP, creditor and shareholder matters and has worked with a number of different international unions to resolve concerns.
The Flat Fee Lawyer recognizes that clients have long been frustrated by the inability of a law firm or attorney to provide a firm fee quote and agreement on legal services. Admittedly, not all legal services are suitable for a flat fee, but many, particularly basic business services, can be delivered on a flat-rate basis. We provide these legal services to our clients both virtually and through our more traditional law office. For those services that do not allow for a flat-fee billing rate, we will work with you to deliver a value-based fee solution to meet your needs at the best rate possible.
Corporate Governance Solutions offers neutral and independent third party services for your most difficult situations. The firm capitalizes on its extensive business and legal experience to provide clients with thoughtful and productive legal services. Their mediation style is to leverage their experiences in business and the courtroom to enable all parties to evaluate and assess their positions and likely outcomes. They are firm and direct and ensure integrity in the process.
Attorney Rochelle Friedman Walk admitted to The Florida Bar and U.S. District Court for the Middle District of Florida
Tampa, Fla (July 7, 2011) – Attorney Rochelle Friedman Walk, a full-time neutral mediator, arbitrator and receiver, has recently been admitted to The Florida Bar and the United States District Court for the Middle District of Florida.. Walk, was first admitted to practice in the State of Ohio twenty-five years ago is also admitted to the United States District Court for the Northern District of Ohio. She currently heads Corporate Governance Solutions, PLLC and The Flat Fee Lawyer in Tampa, Florida.
Walk is highly known for her negotiating skills and the ability to bring parties together in win-win, creative solutions. During her career, she has served as the restructuring officer, chief administrative officer, chief legal officer, and Business Unit Manager to several national and multi-national business organizations. As an attorney, she has represented plaintiffs and defendants in a wide arrange of legal transactions and disputes including complex commercial, insurance coverage, real estate, construction, financial restructuring and employment matters. She has served as an ombudsman in employment, elder care, NAACP, creditor and shareholder matters and has worked with a number of different international unions to resolve concerns. These bar admissions enhance Walk’s capability of servicing clients in Central Florida.
“One of my goals is to offer my services as a mediator in financial restructuring cases,” states Walk. “Having served as a receiver, the restructuring officer in two Chapter 11 cases, and as a member and chair of numerous creditors’ committees, I offer hands on debtor and creditor experience to the cases I mediate. My admission to the Middle District makes it possible for me to be included on the mediator panel for the Bankruptcy Court as well as the District Court.”
Walk’s practice focuses on neutral services in restructuring, business and licensing cases. A graduate of Case Western Reserve University School of Law, she has served as General Counsel to both public and private enterprises, and has represented both individuals and businesses in employment disputes. Admission to the Florida State and Middle District bars allows Walk to serve as mediator and receiver for both state and federal court appointed cases.
About Corporate Governance Solutions, PLLCCorporate Governance Solutions (CGS) offers neutral and independent third party services for your most difficult situations. CGS capitalizes on its extensive business and legal experience to provide clients with thoughtful and productive legal services. The practice offers mediation, arbitration, receivership, ombudsman and other legal services for clients large and small.
About The Flat Fee LawyerThe Flat Fee Lawyer recognizes that clients have long been frustrated by the inability of a law firm or attorney to provide a firm fee quote and agreement on legal services. Admittedly, not all legal services are suitable for a flat fee, but many, particularly basic business services, can be delivered on a flat-rate basis. We provide these legal services to our clients both virtually and through our more traditional law office. For those services that do not allow for a flat-fee billing rate, we will work with you to deliver a value-based fee solution to meet your needs at the best rate possible.
Walk is highly known for her negotiating skills and the ability to bring parties together in win-win, creative solutions. During her career, she has served as the restructuring officer, chief administrative officer, chief legal officer, and Business Unit Manager to several national and multi-national business organizations. As an attorney, she has represented plaintiffs and defendants in a wide arrange of legal transactions and disputes including complex commercial, insurance coverage, real estate, construction, financial restructuring and employment matters. She has served as an ombudsman in employment, elder care, NAACP, creditor and shareholder matters and has worked with a number of different international unions to resolve concerns. These bar admissions enhance Walk’s capability of servicing clients in Central Florida.
“One of my goals is to offer my services as a mediator in financial restructuring cases,” states Walk. “Having served as a receiver, the restructuring officer in two Chapter 11 cases, and as a member and chair of numerous creditors’ committees, I offer hands on debtor and creditor experience to the cases I mediate. My admission to the Middle District makes it possible for me to be included on the mediator panel for the Bankruptcy Court as well as the District Court.”
Walk’s practice focuses on neutral services in restructuring, business and licensing cases. A graduate of Case Western Reserve University School of Law, she has served as General Counsel to both public and private enterprises, and has represented both individuals and businesses in employment disputes. Admission to the Florida State and Middle District bars allows Walk to serve as mediator and receiver for both state and federal court appointed cases.
About Corporate Governance Solutions, PLLCCorporate Governance Solutions (CGS) offers neutral and independent third party services for your most difficult situations. CGS capitalizes on its extensive business and legal experience to provide clients with thoughtful and productive legal services. The practice offers mediation, arbitration, receivership, ombudsman and other legal services for clients large and small.
About The Flat Fee LawyerThe Flat Fee Lawyer recognizes that clients have long been frustrated by the inability of a law firm or attorney to provide a firm fee quote and agreement on legal services. Admittedly, not all legal services are suitable for a flat fee, but many, particularly basic business services, can be delivered on a flat-rate basis. We provide these legal services to our clients both virtually and through our more traditional law office. For those services that do not allow for a flat-fee billing rate, we will work with you to deliver a value-based fee solution to meet your needs at the best rate possible.
Saturday, July 30, 2011
Rochelle Friedman Walk Admitted To Florida Bar
Rochelle Friedman Walk has been admitted to practice in the State of Florida. She was first admitted in Ohio in 1986 and joined the Florida Bar in April, 2011.
Attorney Rochelle Friedman Walk Offers Fixed Fee Legal Services
Rochelle Friedman Walk, an attorney in Tampa, FL, announced today that she has established a fixed fee legal services practice. She will accept clients through her firm, Corporate Governance Solutions, PLLC, on a fixed fee or project basis. Noting her more than twenty-five years of experience handling corporate and transactional work, primarily as General Counsel to public and private companies, and her frustration at the inability of a law firm to provide a firm quote on transactional legal services, she is determined to provide her private clients the same services and skills she offered to he large corporate clients as General Counsel for a fixed fee.
"I have provided transactional legal services for my corporate clients for 25 years. I know how long it takes to perform certain services and, provided my client and I are clear about expectations and communicate all facts up front, I can offer a fixed or project fee for transactional work," stated Ms. Walk.
She continued, "I have long been an advocate of transparency on legal costs. I h.ope to offer clients the opportunity to plan and budget for legal expenses just like they due for accounting and other professional service fees."
Working With Social Media
I have been experimenting with Social Media, Blogs, RSS Feeds, Twitter, Linked In and Facebook Pages to see if clients follow their lawyers this way. If you think that my efforts are worthwhile and you would like to continue to see me active in Social Media, let me know by liking my page on Facebook, or following me on Twitter and Linked In.
My goal is to spread the word about alternative fee arrangements.
Contract and Supplier Financing - Money is Available for Your Business
A Friend and former banker just launched his new business. He is arranging financing for business and tells me that there is money available for all sizes of transactions. Check out his new website and see what you think. www.SupplierFunding.com/home-2
Online Copyright Law ---- Fair Use when Sharing News Articles Through Online Forums!!!!!!
A judge ruled on Monday that republishing an article on the web was "Fair Use" in the Righthaven v. Hoehn. In that case Righthaven LLC, a Las Vegas company associated with Las Vegas Review-Journal, filed a copyright infringement lawsuit against Wayne Hoehn alleging that Mr. Hoehn copied an article from the Las Vegas Review-Journal without permission and posted it to online forums. The Judge for the US District Court located in Nevada ordered dismissal of the case based upon standing as well as in favor of the Fair Use of the Work. More to come on internet and copyright, I am sure.
Flat Fee Legal Services for Loan Modifications
In a difficult economy, it is often hard to decide if it is better to modify a loan agreement or simply stop paying. For a homeowner underwater, as so many are today, the choice seems to be in favor of stop paying. The problem, however, and often to the homeowner's surprise, is that as the failure to pay gives freedom from immediate debt, the unpaid balance or deficiency accumulates. When a later loan modification is sought, the lender adds the deficiency to the loan balance, along with fees and costs,making the new monthly payment even more than the one the homeowner had before.
This is not only a residential loan problem. It happens whenever interest "PIKs" (PIK Interest stands for Paid in Kind and it occurs whenever interest accumulates to add to the principal balance as opposed to being paid in cash) and when covenants are missed and waiver fees are added to the loan balance.It happens when there is an early buy-out of equipment leases, including car leases. What sometimes looks like a great deal is often a future financial hardship coming in the form of increased monthly payments or large balloons or residuals.
I am often asked what options a person or business may have when facing a loan payment which is beyond the Borrower's ability to pay. Loan modifications are clearly one of the best ways to work-out the problem, especially if a package and picture is presented to the Lender which makes good business sense for both the Borrower and the Lender. I have negotiated both commercial and residential modifications in the most difficult financial markets. The right story and the presentation makes the difference. Can we help you consider your options?
Monday, July 25, 2011
Factoring as a Way to Get Financing
Cheryl Gowen, a broker ho helps business find appropriate alternative financing has provided this insight regarding factoring on her blog. I thought my clients might be interested.
Understanding Receivables Factoring to improve Cash Flow
There is nothing more frustrating to a business owner then having to turn away sales because they lack the cash flow to support them. For companies that sell products, this means not being able to replenish inventory in time to capitalize new opportunities. For companies in the service industry, this means not being able to pay the additional employees (or hours) to cover additional service requests. This problem is fairly common, especially for small and midsize businesses.
There are many things that can cause cash flow problems. The most common problem is a simple one: timing. The timing of the revenues does not match the timing of expenses. For many companies, expenses come before revenues. For example: a product supplier buys inventory (an expense), sells it on net 30 terms and then collects revenues 30 days later. Likewise, a staffing agency can place employees, who must be paid weekly but then bills the client on net 30 terms. Again, they wait 30 days before being able to collect the revenue. Unless the company has a capital reserve to operate the company and grow while waiting to be paid, it will run into problems.
If you are not able to get approved for bank financing, there is an alternative solution that can work better than a small business loan- especially if your challenge is that you cannot wait 30 days to 60 days to get paid by clients. It’s called factoring.
Factoring is very different from conventional business loans. With factoring, you get an advance for your outstanding invoices. This is the equivalent of a quick pay. This helps correct the timing problem between expenses and revenues and provides your business with the cash flow to support existing operations and new sales.
Most factoring companies don’t lend money; rather they buy the financial rights to your invoices. Their most important consideration is your clients’ ability to pay the invoices in a timely fashion. This makes invoice factoring accessible to companies who don’t have substantial assets but do have great clients. However, the credit quality of your invoices is not the only qualifying consideration of a factoring company. Your business must also be free of judgments, lawsuits and liens.
Factoring transactions tend to be structured as a sale with two installment payments. The first installment is usually 80% of the invoice value and is given to you as soon as the invoice is sold to the factoring company. The second installment, usually 20% less the financing fee, is given as soon as your client pays for the invoice. Financing fees are usually 1.5-3% of the invoice amount per month that it is outstanding.
Factoring is designed to solve the cash flow restrains generated the timing discrepancy between expenses and revenues.
Here is the link if you would like to go to her site. http://alternativefunding.wordpress.com/
There are many things that can cause cash flow problems. The most common problem is a simple one: timing. The timing of the revenues does not match the timing of expenses. For many companies, expenses come before revenues. For example: a product supplier buys inventory (an expense), sells it on net 30 terms and then collects revenues 30 days later. Likewise, a staffing agency can place employees, who must be paid weekly but then bills the client on net 30 terms. Again, they wait 30 days before being able to collect the revenue. Unless the company has a capital reserve to operate the company and grow while waiting to be paid, it will run into problems.
If you are not able to get approved for bank financing, there is an alternative solution that can work better than a small business loan- especially if your challenge is that you cannot wait 30 days to 60 days to get paid by clients. It’s called factoring.
Factoring is very different from conventional business loans. With factoring, you get an advance for your outstanding invoices. This is the equivalent of a quick pay. This helps correct the timing problem between expenses and revenues and provides your business with the cash flow to support existing operations and new sales.
Most factoring companies don’t lend money; rather they buy the financial rights to your invoices. Their most important consideration is your clients’ ability to pay the invoices in a timely fashion. This makes invoice factoring accessible to companies who don’t have substantial assets but do have great clients. However, the credit quality of your invoices is not the only qualifying consideration of a factoring company. Your business must also be free of judgments, lawsuits and liens.
Factoring transactions tend to be structured as a sale with two installment payments. The first installment is usually 80% of the invoice value and is given to you as soon as the invoice is sold to the factoring company. The second installment, usually 20% less the financing fee, is given as soon as your client pays for the invoice. Financing fees are usually 1.5-3% of the invoice amount per month that it is outstanding.
Factoring is designed to solve the cash flow restrains generated the timing discrepancy between expenses and revenues.
Here is the link if you would like to go to her site. http://alternativefunding.wordpress.com/
Subscribe to:
Posts (Atom)