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A LendingTree lawsuit against a separate technology provider claims that it has learned Google plans to launch such a service later this month or in early September. The lawsuit claims that LendingTree has received screen shots _ pictures of a computer screen _ showing a trial version of Google’s service that indicate Google will give customers loan offers and contact information for lenders.
Google Inc. issued a written statement Wednesday saying it is “working on a small ad unit test” involving a limited number of mortgage-related searches.
“We have a number of experiments going on at any one time, but we don’t speculate on future product development,” the company said.
Google has made several moves that lead it away from its core business of selling ads alongside Internet search results. Last month it altered its popular Google Maps page to highlight its real estate search tools.
Other experiments have included an operating system for mobile devices, and Google Voice, which gives people an additional phone number that’s not tied to any one phone line. Earlier this year it unveiled a PowerMeter that homeowners can use to track energy use.
A Google move into the lending referral business would be one more step away from its core business, said Rob Enderle, an analyst for the Enderle Group.
“It could represent a solid threat to LendingTree, and a distraction for Google,” Enderle said.
LendingTree, a unit of Tree.com Inc., announced the lawsuit on Wednesday, a day after it was filed in U.S. District Court in Charlotte, N.C., where the company is based.
This is not a rhetorical question. Startups and small business will drive us out of this recession with the new jobs they will create. Their new jobs replace the hundreds of thousands eliminated at the large global brands whose solutions fell behind. And without access to financing, these new jobs with small business and startups will not be created. So, no this is not a rhetorical question.
And, its answer addresses all of our lives.
So. Where do startups and small business find their financing?
Credit Cards?
Most of the startups dont have a business plan and think that they might only need ’some’ cash to start off and don’t see any problem in using their credit cards. But the problem is the startup money is not usually enough to keep the business running and they keep on using their credit cards.
Startups that lean too much on credit cards are more likely to fail, according to a new report (PDF) from the Kauffman Foundation. The study found that every $1,000 of credit card debt increases the probability that a new firm will close by 2.2%.
Credit cards have increasingly replaced traditional loans, and this study suggests that taking on credit card debt is one factor that contributes to business failure.
The report notes that “with the recent contraction of credit markets, many new businesses will face difficulties in accessing traditional forms of credit, which likely will create greater demand for credit cards.” - BusinessWeek, Credit Card Debt Hurts Startups.
When there is an option to go for a Government Guaranteed Loan for Startups (which BPF is an expert on), why do you have to max up your credit cards? . This not only eats up a large share of your profits by paying high interests but also reduces your chance of getting a loan by affecting your credit score.
Names of competitors: List all of your current competitors and research any that might enter the market during the next year.
Summary of each competitor’s products: This should include location, quality, advertising, staff, distribution methods, promotional strategies, customer service, etc.
Competitors’ strengths and weaknesses: List their strengths and weaknesses from the customer’s viewpoint. State how you will capitalize on their weaknesses and meet the challenges represented by their strengths.
Competitors’ strategies and objectives: This information might be easily obtained by getting a copy of their annual report. It might take the analysis of many information sources to understand competitors’ strategies and objectives.
Strength of the market: Is the market for your product growing sufficiently so there are enough customers for all players?
The first quarter of 2009 saw the largest quarterly increase in loan volumes in the history of the BDC, with the total amount of accepted loans increasing 37 percent from the same period last year – a jump from $738 million in 2008 to more than $1 billion in 2009.
Vancity had sent letters to 18,000 members asking them to agree allow to the credit union to hike the interest rates unilaterally on loan agreements that had already been signed.
The credit union wanted the right to raise rates by one percentage point now, plus make future adjustments without having to ask for customers’ consent. If customers did not agree, Vancity had warned, it “may take further action” on their accounts.
Now, anyone who agreed to any changes based on the proposed hike will be allowed to return to their original agreements and will be reimbursed for any additional interest.
Read more here on CBC news
John Baird, Canada’s Transport and Infrastructure Minister, and George Smitherman, Ontario’s Deputy Premier and Minister of Energy and Infrastructure, invited Not-for-Profit organizations in Ontario to submit applications by August 18, 2009.
“Under the strong leadership of Prime Minister Stephen Harper, our Government is taking action to put shovels in the ground and create jobs in communities across Ontario,” said Minister Baird. “Not-for-Profit organizations will now have the opportunity to get shovels in the ground and upgrade their local facilities.”
“With this additional stimulus funding, Ontarians will benefit from stronger communities by enjoying enhanced services, facilities and places to celebrate our cultural identity,” said Minister Smitherman. “Whether visiting a local museum, making use of employment counseling or taking advantage of an emergency shelter, this funding will improve quality of life for all Ontarians.”
Canada’s Economic Action Plan established a new national $4-billion Infrastructure Stimulus Fund to provide funding to provincial, territorial and municipal construction-ready infrastructure projects. Ontario’s share is about $1.5 billion, which is then being matched by the Government of Ontario. This initiative is designed to flow funding quickly for shovel-ready projects – already more than $2 billion in funding has been committed in Ontario – that can be built during the 2009 and 2010 construction seasons.
BPF Capital has services available in case you need to file for these kind of grants. Please call 416.222.2909 for more details
Consider this latest trend in business loans. Lenders typically tie corporate credit lines to short-term interest rates. But now Citi, JPMorgan Chase, and BofA, among others, are linking credit lines both to short-term rates and credit default swaps (CDSs), the volatile and complicated derivatives that are supposed to act as “insurance” by paying off the owners if a company defaults on its debt. JPMorgan, BofA, and Citi declined to comment.
In these new arrangements, when the price of the CDS rises—generally a sign the market thinks the company’s health is deteriorating—the cost of the loan increases, too. The result: The weaker the company, the higher the interest rates it must pay, which hurts the company further.
The banks stress that the new products give them extra protection against default. But for companies, the opposite may be true. Managers now must deal with two layers of volatility—both short-term interest rates and credit default swaps, whose prices can spike for reasons outside their control.
- There is very little collateral or equipment for banks to attach in order to protect themselves.
- The restaurant industry is an industry with very high turn over and very few survive beyond 5 years. As a result, bankers require the restaurant owner to personally guarantee any loan and will often require assets equivalent to double or triple the loan amount.
- Unless you have a very unique menu, ambience or fantastic service and relationship with your customers, it is hard to stop new and existing competition from taking your customers away.
- The current economic times force customers to eat from home more and also eat out at fast food places like MacDonald’s
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