In today’s tough economy, the availability of business credit remains tight. Financial institutions are cautious and highly skeptical of new lending requests. In addition to increased scrutiny regarding new relationships, bankers are also increasingly turning their focus to existing customers. With little or no notice, lenders are closing business credit lines or reducing the amount of  Continue Reading »

Suppose you’ve been doing business with a company that owes your Maine-based business money or has been late in paying for services you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed for bankruptcy. Filler & Associates has come up with some  Continue Reading »

In re Residential Capital, LLC, 2013 Bankr. LEXIS 4844 (Nov. 15, 2013) A recent ruling in the multifaceted Chapter 11 bankruptcy litigation of Residential Capital (ResCap) contains a noteworthy analysis of the alleged diminution in value of the collateral of junior secured noteholders (JSNs). Bankruptcy experts have observed that only a few decisions have tried  Continue Reading »

Many small business owners would like to expand, in order to generate higher sales and increase profits. But before making moves to buy new equipment, expand your plant or implement a new business idea, you need to fully understand how the profit angle works. Many times an expansion plan boosts sales but not profits. You  Continue Reading »

When signing a contract, make sure to check the “notice” clause or provision. It lays out how you and the other party will communicate during the term of the contract. It states who the notice should be sent to, how it should be sent and delivered, and when it was deemed to be received. It  Continue Reading »

Employers can see advantages from hiring independent contractors for their Maine-based small businesses. They can be hired on a per-project basis and then let go when the project is completed. Also, independent contractors tend to be more experienced workers and therefore don’t require the supervision that can be necessary with employees. And you don’t have  Continue Reading »

Most lenders require the individual owner of a Maine-based small business to personally guarantee loans made to their business. This shows the owners’ commitment and helps ensure that the loan obligation is fulfilled. The problem is that the personal guarantee means personal assets are available as collateral. It opens an individual, or a husband and  Continue Reading »

There are instances when you can write off interest on personal loans used for your small business. Just keep in mind that interest expenses must be classified into one of four categories: business, passive, investment or personal. Different tax rules apply to each type of interest. Read our post on the interest categories for more  Continue Reading »

The tax rules for interest deductions depend on which category the expenses are in. Here are the categories that apply to expenses that individuals can incur: 1. Business Interest. This is fully deductible. You can deduct business interest on money spent for expenses or supplies and equipment, as long as you materially participate in the operations  Continue Reading »

Most business owners want a retirement plan that meets the following criteria: Current tax benefit on contributions. Ability to minimize or avoid contributions when cash flow is tight. Only cover full time, long term employees. High percentage (70 percent or more) of every dollar goes toward owner’s retirement. Maine-based small business owners have some new choices  Continue Reading »