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Business Finance and Business Loans Versus Residential Loans
More residential real estate investors are exploring commercial real estate and business loan alternatives as a result of the increasingly chaotic investment environment for residential financing. In these circumstances prospective commercial property owners, business investors and business owners should educate themselves about choices for the business opportunity financing and commercial loan climate that currently prevails throughout the United States.Environmental requirements for business finance will be a complex issue for numerous business investments. Environmental issues involved in a business loan will primarily depend upon the commercial lender as well as the type of business. More extensive requirements can impact both the cost and timing for a commercial mortgage loan.Tax returns and financial statements for a business loan are likely to be a concern for all commercial borrowers. Whereas residential mortgage financing is likely to involve only personal tax returns, most business financing will include a review of business tax returns as well. Business financial statements and personal financial statements will be required for certain kinds of business opportunity financing and commercial real estate financing.Secondary financing will often be a means of acquiring desired commercial loans. The use of seller financing or secondary financing is a prudent business financing strategy to reduce capital requirements for the borrower. Secondary financing will not be accepted by all commercial lenders.An unexpected requirement for many commercial loans involves sourcing and seasoning of funds. When purchasing a business, some lenders will require that borrowers document where the down payment is coming from (sourcing) and how long the funds have been in that location (seasoning). If a borrower cannot adequately provide this documentation, the choice of commercial lenders will be more restricted.Collateral and cross-collateralization for business loans will be an insurmountable obstacle for some commercial borrowers. Collateral requirements for business financing will depend on many factors such as down payment, type of business, credit scores and the type of financing needed. Cross-collateralization refers to lender requirements involving personal collateral such as a home used as collateral for a business loan.Any requirement for a business plan when obtaining commercial mortgages is likely to be expensive and time-consuming. A business plan is not always required for a business loan, but when one is required this will add significantly to the cost and length of the loan process.An increasing problem for commercial borrowers seeking refinancing is an unreasonable limitation for getting cash out of the new loan. Commercial lenders differ significantly regarding restrictions imposed on the amount of cash out to the borrower when refinancing. Some lenders will not permit any cash out whatsoever while others will limit cash received by the borrower to a particular amount. The preferred approach is to use a lender that will allow cash to be paid out up to an agreed loan-to-value (frequently 75%).It is important to to thoroughly analyze business financing lockout penalties. A lockout penalty is much more severe than a prepayment penalty in that such penalties can effectively prevent a commercial borrower from selling or refinancing during a prescribed period (often two to five years).In addition to the issues noted above, numerous other key business finance and real estate mortgage issues will also be important to evaluate. Commercial mortgage requirements are very different from residential financing requirements in the United States. We have prepared several other business finance overviews addressing additional factors that will be significant for most commercial borrowers. Separate report topics include SBA loan refinancing, business opportunity financing, stated income business loans and commercial appraisals.
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Modern Trends in Sports Administration and Management
One of the major factors militating against the development of sports in Nigeria today is lack of effective management. A lot of solutions are being proffered by concerned and patriotic Nigerians daily to bail us out the quagmire. One of such solutions is this text entitled “Modern Trends in Sports Administration and Management”. It is written by Dr. Joseph Awoyinfa, a lecturer in the Department of Human Kinetics and Health Education, Faculty of Education, University of Lagos, Nigeria; a researcher and educational consultant. I was the person invited by the author and the university to review the book when it was presented to the public on December 4, 2008 in Nigeria.According to Awoyinfa, it is a truism all over the world that sport is now a reference issue which can no longer be ignored at various sectors of the economy and spheres of life. The author adds that this text thus takes a critical look at topical issues in sports administration and management, dwelling on theories and principles of modern trends in sports administration and management such as leadership, organisation, planning, motivation, etc.The text contains 16 chapters. Chapter one is christened “the concept of sports management”. Here, Awoyinfa says management is a concept that implies different things to different people at different times, thus leading to its multiplicity of definitions. He explains that management has been variously described as an art, a science, a person or people, a discipline and a process.This author expatiates that as an art, sports management is all about carrying out sports organisational functions and tasks through people; while as a science, sports management is about establishing sports philosophy, laws, theories, principles, processes and practices. As an organisation, according to him, sports management is defined as a means of creating formal structures and an establishment based on a mission, objectives, targets, functions and tasks.Awoyinfa says as a person or group of people, sports management may refer to the head alone or to all the senior staff, committee, etc.; while as a discipline, management is a field of study with various subjects and topics. The author illuminates that sports management as a process is about a systematic way of doing things. Awoyinfa highlights management functions in sports administration as planning, organising, staffing, directing/leading, controlling, coordination, budgeting and evaluation. On whom a sports manager is, this author educates that a sports manager is anyone at any level of sport organisation who directs
the efforts of other people towards the achievement of organisational goals sport-wise.Chapter two is based on the subject matter of evolution and trends of sports management thought. Here, Awoyinfa discloses that the development of thoughts on sports management dates back to the days when people first attempted to accomplish goals by working together in a group. In his words, “There was serious thinking and theorising about managing many years before the dawn of the twentieth (20th) century, which marked the beginning of modern sports management thought. Major efforts to develop theories and principles of sports management began from the early twentieth (20th) century with the work of Frederick Taylor and Henri Fayol. The industrial revolution of the nineteenth (19th) century probably provided the climate for this very serious theorising.”Awoyinfa adds that since the turn of the 20th century, writers on sports management and business theory have been propounding different theories about how to manage work and personnel more efficiently and effectively. This author educates that the three main schools of management thought are: the classical; the human-behavioural; and the integrative. Awoyinfa also highlights early sports management theorists; principles and characteristics of scientific management; appraisal of the scientific management theory, etc., in this chapter.Chapter three is thematically labelled “principles of sports management”. In this chapter, the educational consultant explains that sports principles are the basic laws on which the practice of sports management is built. He adds that management principles must therefore be based on general terms for them to be applicable within sport organisations of varying sizes and character. “Modern sports managers and administrators are expected to be able to identify and use appropriate principles that are relevant to particular situations. This is because no single principle can suit all administrative situations,” submits Awoyinfa.He says the fundamental principles of sports are those applicable to all sports organisations and as a result of their general acceptability, they are sometimes referred to as “universal principles of sports management”. This author expatiates that some of these principles are: responsibility; delegation of authority and communication. As regards humanitarian principles of sports management, Awoyinfa identifies these as democracy, justice, human relations, sympathy, empathy, consideration and humility.In chapter four based on the concept of behavioural and motivational theories in sports organisation, the author says human beings are unique creatures as they behave differently under different conditions and are mostly difficult to predict. Awoyinfa stresses that since human beings constitute the most important element in sports organisation, sports managers need some understanding of why people behave in one way or the other, so that they (sports managers) can influence people to perform exactly the way sports organisations find desirable.One potent instrument this author suggests that can be used to elicit performance in athletes is motivation. In his words, “Motivation is something needed in sports organisations to make employees perform.
However, it has been an important and a puzzling subject for sports managers.” Awoyinfa further discusses development of motivational concepts in sports organisation; application of motivational theories to sports management; methods of behaviour modification, etc., in this chapter.In chapters five to ten, the author beams his analytical searchlight on subject matters such as management techniques in sports organisation; the concept of sports organisation; setting design in sports organisation; the concept of planning in sports administration; making sports organisations more effective in Nigeria and staffing in sports organisations.Chapter 11 is based on communication strategies in sports organisation. According to Awoyinfa here, communication is a crucial factor in any organisational effectiveness because organisations cannot function effectively when communication skills are lacking among members. “Since communication is the moving spirit in an organisation, its absence may make organisations standstill,” asserts this author.
In chapters 12 to 16, Awoyinfa X-rays concepts such as organisational changes and development in sports administration; leadership in sports administration and management; administration and management of soccer as a coach; teaching human kinetics and health education in schools and colleges; and organisation and administration of schools at various levels of education.As regards mode of presentation, this text scores a pass mark. For instance, the language is comprehensible and the ideas are brilliantly articulated. The simplicity of the language is expected, given the author’s dual professional background as a lecturer and pastor. To ensure easy study of the text on readers’ part, Awoyinfa highlights the objectives of each chapter at the beginning and ends with review/revision questions.What’s more, he creatively embroiders the text with graphics (pages 50, 97, 317, 330, 338, 395, etc.) to enhance readers’ understanding through visual communication. Awoyinfa includes references at the end of each chapter to fulfil academic obligation of source disclosure and offer readers opportunities to read more. Inclusion of many references also confirms the depth of his research. His use of visual distinction for the phrase “Modern Trends” in the title is emphatically creative.If there are chapters that really make this text qualified as a compendium of modern solutions to the administrative and management problems plaguing our sports development in Nigeria, they are chapters four, eight, 11 and 13. This is because they discuss motivation, planning, communication and leadership respectively.Meanwhile, the thematically greatest chapter of all is chapter four. The fact that it is consciously or unconsciously taken to be the greatest chapter finds practical expression in the deeper communication and cohesion between its subject matter on the one hand and the outer front cover’s allegorical visuals or metaphorical images such as goal post, cyclists racing, a lawn tennis player poised for action with her bat, sprinters competing and footballers struggling for ball possession, on the other hand. These are images used for illustration in motivational discourse.However, some errors are noticed in this text. The errors are “Acknowledgement” (page iii), instead of “Acknowledgements”; non-paragraphing of the natural first few paragraphs of “Preface”; “Loosing” (pages 396 and 404), instead of “Losing”, etc. These errors need to be corrected in the next edition.On a note of analytical finality, this text is a compendium of irresistible sports management tips. It is a must-read for all stakeholders in the sports sector, especially managers and administrators. It is simply fascinating.GOKE ILESANMI, Editor-in-Chief/CEO of http://www.gokeilesanmi.com and Managing Consultant/CEO of Gokmar Communication Consulting, is a Certified Public Speaker/Emcee, (Business) Communication Specialist, Motivational Speaker, Career Management Coach, Renowned Book Reviewer, Corporate Leadership Expert and Editorial Consultant.
For business discussion, reach him on +234(0)8055068773; +234(0)8056030424
Email: [email protected]