Top 10 Bankruptcies Of The 20th Century By Iain Mackintosh

Celebrity bankruptcy has become so common that many now hire financial advisors to keep an eye on their bank accounts and stop them from overindulging on wild extravagances and unworkable business ventures. Nobody, no matter how famous or rich, is immune to the perils of debt. In that way the celebs are just like the rest of us, but they’re playing with much higher stakes.

Donald Trump: billionaire entrepreneur

Trump, currently worth approximately $3 billion, has certainly had his fair share of financial disasters. In 1992 the three casinos he then owned - the Taj Mahal, Castle and Plaza - went bankrupt, burdened by more than $1 billion in debt following the 1990-91 recession. But he climbed back from the brink of personal bankruptcy and chronicled his return to billionaire status in the 1997 book ‘Trump: The Art of the Comeback.’ Trump's casino empire went bankrupt again in 2004.

Meat Loaf: rock star

Meat Loaf spawned some of the largest selling albums of all time, but things turned nasty for him when, in 1981, he changed managers after discovering that his were stealing his money. They had all of Meat Loaf’s assets frozen and sued him for breach of contract. They also spread rumours that he was violent and had threatened people with guns, and a battle-worn Meat Loaf ended up declaring bankruptcy. In 1986, Meat Loaf found a new writer, John Parr, and started recording a new album. Unfortunately, the producer put a dance beat underneath every song, which proved to be a huge mistake, and Meat Loaf ended up going bankrupt for a second time.

Anna Nicole Smith: Model/Actress and 1993 Playboy magazine ‘Playmate of the Year’

Tragic Anna Nicole Smith entered the limelight in 1994 when, at the age of 26, she married 89-year-old oil business executive and billionaire J Howard Marshall. In 1996, Smith filed for bankruptcy in California as a result of a $850,000 judgment against her for sexual harassment of an employee. The former model died from a drug overdose in February 2007, five months after the death of her son Daniel, aged 20, who had also overdosed on drugs.

M.C. Hammer rock star

M.C. Hammer of parachute pants and ‘Hammertime’ fame filed for personal bankruptcy in April 1996 as a result of dwindling album sales and a lavish lifestyle. He was $13 million in debt. After this rapid fall from grace, MC Hammer spent most of the late 1990s as a punch line in the music business. Nelly, in his year 2000 breakthrough hit ‘Country Grammar’, announced his intention to ‘blow 30 mill like I'm Hammer’

George Best: Manchester United Footballer

Manchester United football legend George Best will always be remembered for his dazzling skill on the pitch, but it was the accompanying champagne and playboy lifestyle which ultimately led him to an early grave. Best’s partying and decadence degenerated tragically into alcoholism, bankruptcy, a prison sentence and, eventually, a liver transplant. Following his death in November 2005 the News of the World published a picture of Best at his own request, showing him in his hospital bed, along with what was reported to be his final message: ‘Don't die like me’.

Walt Disney: Oscar - winning film producer, animation & theme park pioneer

Disney did not lose his riches once he had found them, but it was a major struggle to get there in the first place. As a young entrepreneur Walt Disney formed his first animation company in Kansas City in 1921 and made a deal with a distribution company in New York. Flushed with success, Disney began to experiment with new storytelling techniques, but his costs went up and then the distributor went bankrupt. He was also forced to declare bankruptcy in 1923 and at one point could not pay his rent and was surviving on dog food.

Gary Glitter: Glam Rock star

Gary Glitter, the King of Glam Rock, has had an unusual life. After excessive drinking and drug taking in his earlier musical career, he was declared bankrupt in1980. However, Glitter, aka Paul Francis Gadd, says he was only declared bankrupt because ‘somebody didn't fill in the right forms.’ Just as he had begun to turn his life around, Glitter was confronted with allegations of paedophilia, and in 1999 he was convicted for downloading 4,000 child pornography pictures and was listed as a sex offender. Glitter’s reputation was further tarnished when he was permanently evicted from Cambodia in 2002 for suspected child sexual abuse offences.

Oskar Schindler: activist who saved over 1000 Jews from the Nazis

In the 1930s, a young Oskar Schindler changed jobs several times. He also tried various business ventures, but soon went bankrupt because of the Great Depression.

By the end of the war, Schindler had spent his entire fortune on bribes and black-market supplies for his Jewish workers. Virtually destitute, Schindler did not prosper in post-war Germany, and eventually he emigrated to Argentina in 1948, where he went bankrupt again. Returning to Germany in 1958, Schindler had a series of unsuccessful business ventures. He then settled down in West Germany and tried again - with help from a Jewish organisation - to establish a cement factory. This, too, went bankrupt in 1961.

TLC: R&B/Hip-Hop/Pop group

In 1994, not long before the release of the trio’s second album ‘CrazySexyCool’ (which was to sell over 11 million copies) band member Lisa Lopes was arrested on arson charges. In an alcohol-fuelled fit of rage, Lopes vented all the frustrations from her often-stormy relationship with Andre Rison, burning his Atlanta mansion to the ground and vandalizing several of his cars. In 1995, TLC filed for bankruptcy, claiming debts of over 3.5 million dollars, in part stemming from Lopes' insurance payments over the arson incident.

Kim Basinger: Oscar - winning actress

Extravagant Basinger found herself into trouble when she bought the town of Braselton, Georgia for $20 million. It was around the same time that she dropped out of the movie ‘Boxing Helena’ after expressing concern over nude scenes. Main Line Pictures sued the star of Batman and 9 1/2 Weeks for breach of contract, and the ensuing court case was of Hollywood proportions. The producers' lawyers even tried to stop Basinger having children - as this would diminish the sum they might reclaim. Basinger filed for personal bankruptcy in 1993 and was forced to sell the town of Braselton.

Resource: http://www.isnare.com/?aid=216072&ca=Finances

What Are Certificates Of Deposts? By Peter Kenny

Many consumers have found that putting money into CD's (certificate of deposit) accounts is a good way to earn additional interest over regular savings accounts. Just like the regular savings account that most of us are familiar with, money that you put into a CD will earn interest, and usually it will earn more interest than a simple savings account.

One major difference between a regular savings account and a CD is that the money that you put into a CD has to remain in the bank or credit union for a specified amount of time in order to earn the full amount of interest. You can take the money out of a CD but you will have to pay a penalty.

The basic rule of thumb for CD's is to not use money that you believe you will need to use before the maturity date. In other words, you should only buy into a CD if you can afford to leave the money alone for the amount of time required.

All certificates of deposit will have a maturity date. This is the date when you can withdraw the money without having to pay a penalty. The length of time for CD's varies, so make sure you understand what you are buying.

In the event you should need to cash out the CD before it matures, most banks will charge an early-withdrawal fee. These fees are usually equal to about three to six month's of interest but, again, this can vary, so check with the bank.

Generally, most CD's mature in three months to five years, although 10- and 20-year CD's are also available. The amount of interest offered will vary depending on the length of time of the CD.

Consumers should know that CD's are protected under the Federal Deposit Insurance Corporation (FDIC) as long as they were issued through a bank. This protects consumers from loss should the bank go out of business.

Most certificates of deposit will earn compounded interest. Compounded interest means that the interest your money earns is added to the total amount of the CD so that the next time interest is calculated and added, you will earn even more.

For those who have extra cash and can afford to invest it and leave it alone until maturity date arrives, certificates of deposit are a good idea. They are a safe and effective means of earning interest on your money. They may not be as exciting as some other forms of investments, but they allow the owner to sleep at night, knowing their investment is not going to vanish overnight.

CD's can be great gift ideas for grandchildren and other members of the family. If they are bought early enough, they can be used to help fund future education needs as well. Because they can be purchased for relatively small amounts of cash, they are often affordable to many families that otherwise might not be able to invest. Most banks and credit unions will have literature that you can read to learn much more about CD's and how they work.

Resource: http://www.isnare.com/?aid=215174&ca=Finances

Accountants: More Than Just Bookkeepers

For many people, the job titles of accountant and bookkeeper are interchangeable. After all, doesn’t a bookkeeper maintain the accounts of a business by tracking accounts receivable, accounts payable, rent expense, payroll, etc.? The answer is yes, a bookkeeper does perform all of these accounting functions. So why does an accountant get paid so much more than a bookkeeper? Aren’t they one in the same?

To answer this question, we can first think back to geometry. To say that a bookkeeper is equivalent to an accountant is like saying a square is equivalent to a quadrilateral. Both are shapes with four sides. But a square is a specific type of quadrilateral with all four sides equal in length and four right angles. A quadrilateral, on the other hand, is more encompassing. A rectangle, a square and a trapezoid all are quadrilaterals. All have four sides, but it is the length of those sides and the angles between them that differentiate these shapes. The same holds true for accounting. Bookkeeping is a very specific part of accounting which looks at the tracking of money being spent and earned. We all do bookkeeping by (hopefully) balancing our checkbooks. But accounting, like a quadrilateral, is much more encompassing. Accountants use a technique called matching, which goes way beyond standard bookkeeping. Beyond basic bookkeeping, accountants must make decisions regarding the “how, when and why” of documenting a businesses finances. Matching is a principle used to allocate debits and credits to certain accounting periods and reconcile across types of financial statements. Although there are strict laws governing accounting, there is a certain amount of flexibility that allows accountants to have some control over the outcomes of their financial statements.

As a more specific example, let’s compare straight-line and double-declining balance depreciation. To oversimplify, in straight-line depreciation the cost of the equipment is divided by the number of years of its “useful life” (less the salvage cost, or final “worth,” of the equipment once it has reached the end of its useful life). This gives a depreciation amount that is the same year one as it is year ten. It is a very neat and reliable method to use, as there is no variation in the fixed amount.



With the double-declining balance method, however, the amount of the depreciation is much more the first year than it is the tenth year. Think of the interest on your mortgage. During the early years, the majority of your mortgage payment is interest, compared to the final years when almost the entire amount paid goes to principle. We all know that the tax advantage of a mortgage is that you can deduct the interest paid. Your tax deduction, much like the tax deduction using double-declining balance depreciation, is more the first year than the tenth year, since you pay more interest early on. Using the same principle and accountant can elect to have a greater deduction for depreciation, or a greater offset to the revenues generated, by choosing the double-declining balance method. This is not as neat, but it allows for more cash to be reinvested in the company during the first few years, when it may be more needed.



As you can see, accountants have a lot more responsibility for the financial success of a business, both on paper and in the eyes of potential investors, than do bookkeepers. Although bookkeepers do perform some basic accounting functions, please do not confuse them with accountants.

Accounts Receivable Financing- be Inspired!

Benjamin Zander and his wife wrote a book entitled: “The Art of Possibility; Transforming Professional and Personal Life”. Their idea is that “you can create a passionate energy permeating The Art of Possibility that will be a true force in your life. You can make your own rules.” Their book is inspirational. You will be inspired if you buy and read it. The question is: how does this pertain to accounts receivable financing?It’s all about attitude, enthusiasm and point of view regarding how to conduct your business. Can you make your own rules regarding how banks, commercial finance companies and other financial entities operate? Of course not. Can you make your own rules regarding how you utilize the financial recourses that are available to finance your business? Absolutely!Here are three examples how to harness the power of accounts receivable financing sometimes with other types of financing to grow your B2B business.Case Study One:A Solar Energy Company that designed and supervised the installation of renewable energy systems was unable to obtain bank financing. They were one of the area’s lowest cost providers of solar panels, system design and supervision. One of their biggest assets was State Solar Tax Credits that are paid to homeowners who install the solar energy systems. An obligation from a State to a consumer is not within the definition of an account receivable. In other words, it could not be financed because it was not an obligation to a business. Using the art of possibility, the homeowners were persuaded to assign their solar tax credits to the Solar Energy Company. This transformed a consumer receivable into a commercial accounts receivable. Voila! The Solar Energy Company received accounts receivable financing it needed to grow.Case Study Two:An individual purchased an Importing Company that had been financed with a bank’s SBA loan. As collateral for the loan, the bank placed a UCC1 filing on the accounts receivable and inventory of the business. UCC refers to the Uniform Commercial Code in effect throughout the United States of America. In some respects, it simplifies the process of lending, selling and borrowing nationally. In other ways it is very complex. A UCC1 filing by a bank usually prevents any further financing because there is no collateral left to be financed. It is similar to a first mortgage loan on a house. If you have a 95% loan on your house, no other financing is available on the house because there is no equity to lend on. Using the art of possibility, the Importing Company was successful in convincing the bank to subordinate their UCC1 filing to another commercial lender’s UCC1. The Importing Company convinced the bank that it would be mutually beneficial to lower the bank’s UCC1 lien to a secondary position to allow a commercial finance company to offer new accounts receivable financing and inventory financing. Voila! The Importing business has a new credit line available for growth. It is now more profitable and the bank is more likely to be repaid. This is a win-win situation.Case Study Three: A start-up Clothing Company involved in manufacturing, distributing and designing T-shirts landed a substantial purchase order for their product. The product was to be made in China, and the Clothing Company lacked sufficient funds to pay for the costs of manufacture and distribution. Using the art of possibility, the Clothing Company obtained a letter of credit to guarantee the Chinese factory of payment, purchase order financing to pay for the T- shirts upon delivery, and accounts receivable financing to pay the purchase order company upon delivery of the goods to the customer in the US. Accounts receivable financing can help your B2B business realize the art of possibility for growth and profits. Voila!Copyright © 2007 Gregg Financial Serviceswww.greggfinancialservices.com

How to Finance Your Franchise Business Opportunity

You have found the best franchise for you and are really excited about its future and your new business. However, how are you going to pay for it? Many franchises require a significant investment and a large amount of liquid money that many individuals don't have. Fortunately, there are a lot of financing options available to help you finance your franchise business opportunity
.Please keep in mind, however, that you should consider financing your franchise before you actually get your heart set on a particular franchise. The reason why is that financing can be a challenge and is the most important thing you should consider before actually opening a franchise. So, spend some time researching how to finance your franchise business opportunity to get a better understanding of how the entire process works.Your FinancesFirst, you need to determine your financial situation. If you are not in a situation where you can afford to embark on a new business opportunity that may have cash flow issues in the beginning, then you should reconsider buying a franchise at this time. If you are current on all of your bills, have more holdings than debt, and make enough money to live on comfortably while saving then you may be prepared financially for a franchise. If not, then you might want to get your finances in order first. If you are doing well, and have some savings to invest, then a franchise may be a great opportunity for you.FinancingThere is a lot of information that you will need to provide in order to get financing. This includes your financial records from loans and debt payments to account balances and tax returns. Make sure all of this information is up to date and well organized before submitting it for financing approval. The more financial information you provide the easier it will be for lenders to determine your financial situation and subsequent financing options.Financing by FranchisorWhen you buy a franchise many times the franchisor will offer some percentage of financing to help you get started. The franchisor you are working with will heavily influence the financing options. Keep in mind, however, that just because you are buying a franchise and decide to go with franchisor financing the application process will not be any easier or more lenient. Also, you will need to invest some of your own money in the franchise because 100% franchise financing is highly uncommon.Additional FinancingA Small Business Administration loan is a great option for additional financing for a franchise. Also, most banks are willing to finance successful franchises because they have a proven business model. Private investors may also be another option for financing your franchise opportunity.