On Wall Street, you often hear the big money guys talking about "bullet-proofing" their portfolios.

In other words, designing your investment portfolio in such a way that even if your portfolio takes a body blow, it's easily absorbed with minimal damage to your investment assets. No investment plan is immune to losses – the idea is to limit those losses so they don't destroy your financial future.

Make no mistake, protecting your portfolio should be job one for investors, if only for good peace of mind. Research indicates that a loss causes about twice as much pain as a gain causes pleasure. During periods of market volatility, investors experience the sense of loss more acutely. For anyone with short memories, the bear market of 2000-2 is a vivid example of that.

One example of bulletproofing your portfolio comes in the form of "Hurricane-Resistant" investment portfolios.

Remember Katrina? We all do. It wreaked billions of dollars of damage along the U.S. Gulf Coast in August 2005. But some saw opportunity in tragedy. Writes Adam Shell, in a USA Today piece shortly after hurricanes Katrina and Rita hit, "ever since Hurricane Katrina crashed into the Gulf Coast, nimble traders and money managers have been reshaping their portfolios in an attempt to sidestep — and profit from — the potentially devastating one-two punch packed by Katrina and Rita."

The key in building hurricane-proof portfolios is to pick the sectors – and the companies within those sectors – that are poised to profit from natural disasters. Obviously, construction and home repair providers – think Lowes or Home Depot – might be a natural for a disaster-proof stock portfolio. Energy and utility companies can fill a niche, too.

Even clothing retailers tend to do well in natural disasters. Companies like Abercrombie & Fitch and The Gap are often the first places shoppers go to replace – what else? – their clothing lost to a hurricane or other natural disaster.

While no actual hurricane mutual fund exists today, it's highly possible to cherry pick the companies you think will grow and prosper even as most others wither on the vine after a natural disaster like Katrina or Rita.

Remember, there's really no avoiding the ebbs and flows of stock market performance. Hits are inevitable and typically occur because of a bear market, a recession, inflation fears or a currency problem. That's why the goal is to build-in protection for your capital, maybe even make a profit even when traditional portfolios are spiraling downward and still be able to beat or keep up with the markets when they are rallying.

That's why bulletproofing your portfolio is so critical – it protects you and your money and creates more opportunities to grow your investment portfolio.

Even after a hurricane.

What do the decision-makers – the banks, the credit lenders, the Small Business Administration and other financial organizations – look for when deciding whether or not to lend you money?



Actually, it's not all that complicated. The information below will give you a heads up on what more traditional financial institutions will ask for when you apply for lines of credit or loans through the Small Business Administration. The SBA, by the way, has an excellent checklist of documents needed for its loan process. 

For both types of common loans (short- and long-term), your business (or business-to-be) requires the following documentation before your loan request can be evaluated:

• A business profile. This is a written statement.  A document describing the type of business you own, and includes details, such as annual sales, number of employees, length of time in business and specifics of ownership.

• Loan request. This is a description of how you want the loan funds to be used. This statement should include purpose, amount and type of loan.

• Collateral. This gives the lender a description of the collateral you’re offering to secure the loan, including equity in the business, borrowed funds and available cash.

• Business financial statements. These are complete financial statements for the past three years as well as well as current interim financial statements.

• Personal financial statements. These are statements of all the owners, partners, officers and stockholders who owning 20 percent or more of the business.

Be sure that your financial statements are carefully prepared and up-to-date! The strength and accuracy of your financial statements will be the primary basis for the lending decision to go in your favor, so be sure that yours are carefully prepared and up-to-date.  

The most important documents in your financial statements are:

• Balance sheets from the last three fiscal year-ends.

• Income statements revealing your business profits or losses for the last three years.

• Cash flow projections indicating how much cash you expect to generate to repay the loan.

• Accounts receivable and “payable aging,” breaking your receivables and payables in to 30-, 60-, 90- and past 90-day old categories.

• Your personal financial statements from you along with statements from your business partners listing all personal assets, liabilities and monthly payments, as well as your personal tax returns for the past three years.

What to include a loan proposal…in a nutshell:

• Business name and address

• Names of principals and their Social Security numbers

• Purpose of the loan – be as specific as possible about what it will be used for?(salaries, equipment, etc.).

• Exact mount of money you need.

Business description:

What kinds of business?

History?

How many employees and current business assets do you have?

What's your ownership and legal structure?

Management:



Offer a short description on each principal…including background and education, experience, skills and accomplishments.


Market:  Demonstrate knowledge over your product(s) and where it fits in the market(s). Competition and role in the overall marketplace.
Sketch customer profile and how you business can fulfill customer needs.



How will banks review your loan proposal (in a nutshell)?

1. First and foremost, they want to see proof they will be repaid.

2. That means they'll investigate your credit.

3. Outside sources of funding (at least 25 to 50 percent) will strengthen your case.

4. Sufficient experience to pursue business enterprise.

5. Suitable cash flow for business to run.

The key? Be prepared and have both your documents and financial story in order. If so, the road to solid financing is wide open.

Let's clear up what might be a common misconception: There’s a difference between online lenders and payday lenders, and America One Unsecured is neither of these. An online lender is any institution that accepts loan applications online. Technically, if your local bank allows you to submit an online loan application, they’re also online lenders. Generally, online lenders cater to lower income borrowers or borrowers with bad credit.

Payday lenders offer small, short-term loans that may also be called payday or paycheck advances. Loans are typically made for $100 to $500 and are due within two weeks. The loan includes a fee ranging from $15 to $30 per $100.

Payday lenders – whether they operate from an actual walk-in storefront, or do business only online – are roundly criticized for charging high interest rates. Example: For a $100 loan with a $15 fee and a two-week term, the interest rate amounts to 390 percent APR (26 x 15 percent = 390 percent).

Contributing to the confusion between online lenders and payday lenders is the name of the trade organization that represents payday lenders who operate on the Internet: The Online Lenders Alliance. The association’s name implies that any lender that accepts applications online might be among its members. In fact, the Online Lenders Alliance represents only payday lenders.

America One Unsecured is a loan consulting firm. They’ve created relationships with a number of banks and lending institutions so that when you – as a prospective borrower – submit an application to America One Unsecured, they can quickly run it by those lenders to see who can offer you the best deal.

In fact, since its inception in 1999, America One Unsecured has consulted with more than 3 million consumers and small business owners and helped them obtain hundreds of millions of dollars in loans.

Millions of Americans have already been hit with increased credit card interest rates, but if your rates haven’t gone up yet, keep your eyes open; there’s probably a rate increase notice in the mail right now. It’s time to look into a debt consolidation loan.

Robert Manning, of the Washington Post, described credit cards as “yuppie food stamps;” a way of making ends meet. Right now, there are more than 700 million general purpose credit cards in use, and another 500 million retail store credit cards. Moreover, the average American household carries more than $10,000 in credit card debt. If a household happens to have credit cards at 18 percent, and makes minimum payments, it will take roughly 48 years to pay off the debts. Makes a debt consolidation loan sound sensible, right?

In the most recent Federal Reserve survey,
•    54 percent  of senior bank loan officers said they had or would soon increase interest rates on credit cards held by consumers with good credit;
•    74 percent said they had, or will, increase rates for consumers with bad credit;
•    50 percent have or will but credit card limits; and,
•    40 percent said they have or will increase fees.

In a flash of creativity, they’ve even introduced a new fee – an inactivity fee for cardholders who pay off their accounts every month, or don’t use the card at all.

With a debt consolidation loan consumers have:
•    Lower interest rates – as low as 6.99 percent with good credit
•    Fixed interest rates
•    Consistent monthly payments
•    Faster payoff with savings of thousands in interest charges.

If you’re thinking about a debt consolidation loan, consider working with America One Unsecured, a loan consulting firm. They can help you learn more about your debt management options, and help you get the best rate a debt consolidation loan.

Running a successful business is never easy. Business owners must be able to handle at least a dozen things at once, all while jumping through hoops and over obstacles that would make the average Joe cringe in fear.

One of those hurdles is finding financing to expand or improve your business. Entrepreneurs frequently encounter difficulties managing their cash flow as a result of seasonal credit demands and time gaps between capital needs and revenue realization. This is especially true of startups during their early stages of development when they have not diversified enough to generate a positive cash flow.

Many business owners opt for unsecured business loans, which require no collateral, have very little documentation, and for most, no annual fee. Loans can be procured for up to 84 months, or you can get a revolving line of credit.

A revolving line of credit can be an excellent method for financing your business. With such a line of credit, you can get a specific amount, and after it has been repaid, you can borrow that amount again. This can give business owners peace of mind, knowing that the additional capital is there if it is needed.

By contrast, line of credit is a standard service offered by many banks that serve small businesses. Getting the loan approved depends on the business owners ability to repay and/or the personal assets of the owner.

Banks will extend a secured line of credit to most startup ventures, and will require guarantee of repayment if your first source of repayment does not come through. Banks do not approve lines of credit for use in managing cash flow.

Unsecured loans, however, do not require business owners to jump through as many hoops as banks, and are therefor much easier to attain. And rates can be as low as 7.93 percent.

Startup loans with America One are available from $10,000 to $5 million, and are at historically low rates currently. You can go online at www.americaoneunsecured.com and apply online.

One of the ways to measure your financial success is to look at your salary. But that doesn't give you the complete image of your financial situation. This is because your salary isn't an accurate account of your discretionary income.

Disposable income is what you bring home for saving or spending after taxes. Discretionary income is what's left after you've paid the bills and put some money into your savings and retirement. It's the money you can spend as you wish on things your enjoy, rather than what you must.

There are factors that influence your discretionary income. What you have left over from your salary to use as you wish depends on your cost of housing, cost of transportation, how much debt you have, the cost of food in your area and the expense of your utilities. These items can vary, depending on where you live. Phil moved from a large city in California to a small town in Idaho, and was unhappy that his salary was smaller.

In California, his salary was higher, but Phil spent more than half of his income on the rent of his apartment, utilities and groceries, as well as transportation, which was considerable, since he lived a considerable distance from his office. But in Idaho, he lives in a larger home, but it costs less than a third of what he paid in California. He also lives closer to work, so he's cut down on transportation costs. The cost of food and utilities are also less.

So even though Phil's salary is less, after taking a look at the big picture, he realizes that in California, though his salary was higher, he spent nearly half of his income on the basics of survival. In Idaho, although his salary is smaller, he is spending less on survival and therefore has more discretionary income. He and his family can now afford to go out to dinner or a movie occasionally.

So before you go off chasing a higher salary, consider the area. You may be able to enjoy a better quality of life with a lower salary. Salary isn't the end-all, be-all of income.

In response to a sleepy economy and job loss or reductions in hours, more and more Americans have incurred additional debt in the past couple of years. Many consumers are now opting for debt consolidation in order to solve their debt problems, a solution that combines all of a person's debts into one single loan.

There are many financial organizations that offer debt consolidation loans, and the biggest challenge is often finding a legitimate source amidst all of the scams out there. There are easy and effective ways to avoid debt consolidation scams.

• Refuse to pay any up-front fees. Genuine companies would never charge you an up-front fee, and the fraudulent ones who do will often disappear once the fee is paid.

• Watch out for hidden fees. The bad guys will charge hidden fees in the middle of the term.

• Refuse to reveal confidential details. You must know that the counselors of the financial organization you're dealing with will only ask you to give the details of your creditors. You will have to provide your loan details as well. But if a company asks for your Social Security number, be very careful.

• Do your homework. You should find out if a company is legitimate or not. When you have picked a company, check with your State Attorney's Office, the Better Business Bureau and the Federal Trade Commission. Check to see if there are any complaints registered against the company.

• Don't agree to a verbal agreement. You should always ask for a written agreement Verbal agreements are not legally binding. You should be sure to read the terms and conditions of the contract carefully. Read the fine print section carefully to be sure there are no hidden fees.

You should also ask your creditors before selecting a debt consolidation company. They will likely know who the fraudulent companies are. But some may still ask if debt consolidation is for them. One of the chief signs that it is right for you is that you just can't seem to get ahead with your bills. If you pay your bills each month and still can't seem to pay down your debt, it may be time to consider loan consolidation.

But before you sign on the dotted line, do your homework. It will pay off – with interest.

With most of the eastern United States baking in the summer sun, people are looking to cool down without paying a fortune in utilities costs. There are ways to cool your home without breaking the bank.

Search your home for sources of heat. Replace any incandescent bulbs with compact fluorescent bulbs, which produce the same amount of light but use a fraction of the heat and energy.

Avoid using your dishwasher whenever possible, as well as you oven and clothes dryer, during the day. Wash only full loads of clothes and dishes. You may even want to consider using a clothesline. Using small appliances like microwaves and toaster ovens will save energy and keep the heat in the kitchen to a minimum.

Don't put lamps or televisions near your air conditioning thermostat. The heat from these appliances will make the air conditioner run longer.

During the day, close your curtains or blinds to keep out the sun. Place your air conditioner in shaded areas, since it will have to work harder if located in the sun to cool your home.

Think about taking advantage of the shade producing trees in your yard. They can help save up to 8 percent on cooling costs. If you don't have shade trees in your yard, consider planting some.

Another way you can bring in some extra cash this summer is with the government's Cash for Appliances program, which can mean rebates from $50 to $500 by swapping energy-guzzling appliances for more efficient models.

But the incentives are administered on the state level and are on a first-come, first-served basis, and in many places, the money is already gone. You should check with your state to see if the programs are still in place.

Even if you don't qualify for one of those rebates, you can still get cash back from the more than 600 programs run by utilities and over 100 state programs that offer incentives to boost your home's energy efficiency. And through the end of this year, you can claim a $1,500 federal tax credit up to 30 percent of the cost of many energy-related improvements.

There's also the Cash for Caulkers bill, which may soon become law. It will give homeowners hefty rebates on a variety of energy saving projects.

You may also wish to consider a comprehensive home energy audit, which will pinpoint your leaks. The audit runs about $400, but some states and utilities companies will conduct basic audits for free, or will reimburse some of the cost.

Dressing for success is crucial for all business people, but it becomes even more crucial for women seeking to start and run their own businesses. Dressing the right way can be the difference in being perceived as professional or not.

You should always dress appropriate for your work environment, and keep your clients, investors and customers in mind. A woman's professional appearance should always support her professional accomplishments and goals. If you are a florist, that will dictate that you dress more casually, but if you work in the legal profession, you'll need to dress more professionally. If your business attire is distracting because it is too sexy, drab or colorful, your business contacts may focus on how you look, not on your business skills.

If you must dress in a more professional manner, keep in mind the first impression others have of you shouldn't be about your scent preferences. Many women favor perfume, cologne or bath sprays, but in the workplace those can trigger asthma, overpower a room and are often more offensive than pleasing to others. You shouldn't smoke in your car or other closed-in places, because your clothing will pick up the odor.

Women often use their hands to talk, so their hands become a focal point. It is important to make sure your hands and fingernails look professional. Nails should be clean, trimmed or sculpted. Avoid wearing unusual or shocking nail colors. Nail art and nail jewels are not acceptable for business meetings, or even for everyday office wear.

Your hairstyle should be neat and conservative, and preferably off the face. With few exceptions, hair color should not be shocking or unusual. Hair sprays and gels that have a strong scent or odor should be avoided.

As for your makeup, keep it simple and appropriate for daytime. Wearing no makeup at all is almost as bad as wearing too much makeup.

Jewelry should not be noisy or too large, nor should it be costume jewelry. Keep earrings small, simple and above the earlobe. It's better to wear no jewelry at all than to wear too much. But a conservative wristwatch is recommended.

Demonstrating that you care about your appearance communicates to the person you're doing business with that they are important to you. Paying attention to the details of your appearance sends the message to others that you will also pay close attention to the needs of your customers and clients.

There is a double-edged sword for small businesses: online banking. It offers convenience, but it can make you more vulnerable to theft. And not every business person can afford to hire IT folks to guide him or her through the maze of protective software.

Cybercriminals have a myriad of tools at their disposal to hack into your business accounts and steal sensitive information. Phishing is a common scam that uses e-mails that look like the real thing to lead Internet users to Web sites where they are asked to enter sensitive information such as user names, passwords, or credit card or bank account numbers. Once a criminal has the information he needs, he can then bleed a business owner dry, emptying business and personal accounts. Criminals can also sell your sensitive information online to anyone with the best offer.

There are some practices that business owners should adopt to secure online banking.

• Train your employees to never trust e-mails requesting personal information, such as user names or passwords. If there is no one in your office qualified to provide this type of training, find an IT professional to educate your employees.

• Ensure that your business systems, including computers, file and mail servers, are protected by trustworthy security software.

• Designate one computer to use as your business' online account machine. This machine should be used for online banking and not for other activities such as e-mailing, web browsing or file sharing.

• Discuss with your bank the type of security they have in place, and as for recommendations as to what will work best in your office as a complement. Familiarize yourself with the protection and processes the bank's security provides to businesses in the event of a loss.

You should also familiarize yourself with the various ways criminals can do harm to your online efforts.

• Programs that perform malicious actions but have no replication abilities are called trojans. These may arrive as harmless files or applications, but they actually have malicious intent written into their code. Banking trojans are specifically designed to gain control and compromise online accounts.

• Phishing is a form of identity theft in which a scammer uses a seemingly authentic e-mail to trick recipients into providing sensitive information.

• Site spoofing involves Web sites that look and appear professionally designed and legitimate. They are designed to get the recipient to submit personal information such as credit card and bank account numbers, Social Security numbers and birth dates.

Once you've learned the ling and what not to do, you'll be able to breathe easier as you conduct business online.