Home equity is a financial term often used by our Loan Officers when customers are applying for certain types of loans. If you’re thinking about exploring loan options, you might be wondering what home equity means, and more importantly, how to build it.

Home equity refers to the amount of your home that you actually own, free of debt. If you take out a mortgage, your home equity would be the value of your house, minus the amount that you owe on it (principal plus interest). It typically takes between five to seven years to build up, depending on how fast you are paying down your principal amount.

So why do loan officers ask about equity? Because in some instances, you can use it as an asset to borrow additional money (through a home equity line of credit, or HELOC) when you may need to put a down payment on a new home, or conduct home renovations or repairs.

Generally the more equity you have, the better off you are. If your property values increase, and your debts decrease, it increases your options for borrowing, should you need it.

There are several ways to build home equity, eight of which we’ve listed below:

Make a larger initial down payment

When buying a home, the larger the down payment that you can make immediately means the larger amount of the home you will own debt-free. This gives you some home equity right away, and reduces the overall amount of debt that you’ll be paying interest on. A larger down payment can also lower your monthly payments and reduce your loan term.

A larger down payment can also cut down on mortgage insurance costs, which many lenders charge if the down payment is less than 20%. Read more about questions you should ask your mortgage lender.

Pay Extra Each Mortgage Payment

Over time, the more you pay on your mortgage, the more money starts going toward the principal amount, which decreases your debt. When you pay a bit extra on your mortgage payments each month, the amount of interest you are paying goes down, and a larger amount begins to go toward the principal amount.

Make Savvy Home Improvements

Helping to increase the overall property value (fair market value) to your home is also a great way to build home equity. Renovations such as building a privacy fence, adding a deck, or finishing a previously unfinished interior space are great ways to do just that. Be mindful of how much it costs you to complete the improvements and approximately how long it will take you to see the rise in value. The one thing you don’t want to do is to invest your money into something that won’t benefit you in the long run!

Invest in Landscaping

Updating the curb appeal of your home can even have an impact on home equity. Things such as building a retaining wall, or adding attractive landscaping features around the perimeter of your property are inexpensive ways to help increase the property value of your home.

Keep Up On Home Maintenance

Making sure that the items inside your home, such as pipes, electricity, and even flooring are kept up-to-date with maintenance will also keep your property values high. When there are a number of items that need fixed all at the same time, you could be losing money by trying to fix them all at once.

Select a Shorter Mortgage Term

When you are obtaining your loan for the first time, selecting a shorter loan will also mean that you are paying larger amounts on your home faster so that you are able to put more into your pocket.

Avoid Refinancing

In certain instances if you can save by refinancing, it’s definitely something to talk to your local mortgage officer about. However most of the time in the early life of the loan you are paying mostly interest, which cuts out of making those larger principal payments. Refinancing is essentially starting over toward building home equity.

Appreciation

Appreciation is when the house property value rises naturally on its own, without you having to make improvements. This is the best type of way to build home equity because it doesn’t cost you a dime. Perhaps your neighborhood values are increasing, or you live in an area where the town is expanding and other people want to buy homes, the appreciation of your home could help put extra money in your pocket.

If you have questions regarding home equity, or what a home equity line of credit could do for you, reach out to one of the bankers at Guaranty Bank today!

When you’re in the market for buying a home and are ready to discuss home loan options, your local mortgage lender will be your go-to person. But, if you’ve never taken out a mortgage loan before, you’ll probably have several questions to ask them regarding the loan process.

The Guaranty Bank Mortgage team is here to work their hardest for you, so the more information that you come equipped with, the easier it is for them to find the best mortgage that works for your needs. Below we’ve come up with 5 important questions for you to discuss with your mortgage lender in order to get the process started.

Will You Need to Pull My Credit Score?

When you are first searching for a home and discussing loan options, your loan officer will need to do a hard pull of your credit score to obtain your interest rate. However, it’s important to discuss with them when they will do this because it will show up on your credit report. If you are shopping multiple lenders and comparing their services, you’ll want to discuss this with them to minimize the risk to your credit. Credit scores used to determine mortgage loan decisions can range anywhere from 300 – 900, with the higher numbers being more attractive to financial institutions. Your credit score will show the lender your history of making payments on time, which will help them determine the types of loans that you can qualify for.

Will I Need to Make a Down Payment?

A down payment is a payment that is made on the loan before the loan begins. A larger down payment helps minimize the total amount borrowed and can thus lower your monthly payments. In an ideal situation, this would be 20% of the home price. However, you have plenty of options. Some loan programs don’t require a down payment, and others require a much smaller down payment. You can also speak with your loan officer about borrowing for the payment using another asset you own as collateral.

Note: Sometimes the amount that you use for a down payment will also affect if you need to pay mortgage insurance or not. Be sure to check with the loan officer so that you are prepared for any mortgage insurance fees up front!

What is the Interest Rate?

Interest rates fluctuate based upon several economic factors. Depending on what type of loan you are looking at, your payments could stay at a fixed rate, or an adjustable rate over time. It’s necessary to understand this so that there are no surprises. In a fixed rate mortgage, the interest rate stays fixed at what you start at over the entire life of your loan. However, in an adjustable rate mortgage (ARM) the interest rate could fluctuate up or down based upon what the interest rate is at the end of a certain period of time. When you speak to your loan officer about locking in an interest rate, please note that Guaranty Bank charges no fees for locking the rate for you, and the rate can stay locked for up to 45 days.

If you’d like a ballpark range of what you interest rate would be, use our form to check your interest rate and get a quote online!

What Will My Monthly Mortgage Payment Be?

One of the most important pieces of information you need to know is how much you’ll be paying each month so that you can ensure it fits within your budget. Visit our mortgage monthly payment calculator (where you are also able to add taxes and insurance) to get a better understanding of how much you can expect to pay each month. This tool will also show you the principal and interest broken down based upon the current interest rates.

Alongside monthly payments, many loan applicants ask about prepayment fees for paying off your loan before it’s due. Guaranty Bank never charges a fee for paying your loan off early.

What About Additional Home Loan Fees and Closing Costs?

A home loan is comprised of many fees. Often you will have the home appraisal fee, titling fees, title insurance, and depending on where you live flood certification fees to pay at the time of closing. These fees are collected by the bank on behalf of third-parties that assist in the home buying process.

State and local taxes are a part of the fees that you will also see in your final loan amount, as well as if you select to pay your home insurance and taxes through your monthly loan payments (escrow). To read more about the final fees you need to consider when buying a home, visit our mortgage frequently asked questions page. Closing costs are something that your loan officer will explain in full to you.

At Guaranty Bank, we are happy to always answer any questions that you may have about buying a new home and taking out a mortgage. Contact one of our Mortgage Loan Officers to schedule an appointment!

Sometimes, saving money can seem impossible. You work hard and often have grand ideas to put more into your savings account each year, but don’t always meet your goals. Whether you are saving for a down payment on a new home, education, or a dream vacation, if dropping more money into your savings account is a goal, we have some ideas for how you can get started.

Choose the Right Type of Savings Account For Your Goals

Did you know that certain types of savings accounts can help you more than others? From accounts that yield high interest, to investment accounts, having a conversation with your local banker will help you select an account that can help you maximize your savings over time! Who doesn’t want a little extra money for (literally) doing no additional work?

Do a Subscription Check

In today’s digital age, it’s easy to subscribe to things using your debit card online or by using a service such as Paypal to have those monthly fees deducted straight from your checking account. Did you subscribe to a television station just to watch your favorite show and are still paying for it after the season ended? Did you buy an app on your phone last year only to forget that it was a yearly subscription cost and renews on a certain date? Doing a subscription check can really help you save money. Many services will even allow you to pay a reduced fee throughout the time that you don’t use their service if you choose not to cancel, or offer you a few months free, so it definitely pays to do your research.

Pay Off High-Interest Debt

Paying off a debt that is costing you more money in interest is a great way to be able to toss extra money toward your savings. Speaking to your local banker about moving credit card debt and other debt into lower interest loans with more manageable payments could be a great option for you!

Budget

Creating a budget might seem daunting at first, but there are many apps now (such as Every Dollar, or YNAB) that will help you track and assign each dollar. You could also use tools such as an Excel spreadsheet, or a simple notebook to help you track monthly expenses. Using tools that allow you to visually see what you are spending will show you that if you didn’t use your total budgeted amount, how much you could put toward your savings account! For instance, if you have $250 allocated for your electric bill and it was only $195 this month, that’s an extra $55 you can put in savings!

Set up an Auto Debit to your Savings Account

Trying to save up money, but don’t have much time? Use online banking to set up a recurring auto debit from your checking to your savings account each month. This recurring transaction can help you mindlessly save money, and can add up rather quickly depending on how much you transfer!

Switch to Cash for Impulse Purchases

If you withdraw a certain amount each month to spend solely on impulse purchases (things you didn’t originally budget for or plan on spending), having cash will often make you think twice about if you really need it or not. At the end of the month, whatever you don’t spend, save toward your next month. Eventually, you will start to see the savings pile up and you’ll be able to make a deposit into your account that you feel proud of.

De-stash for Cash

Have a bunch of unused items sitting around your house? Get rid of them for extra money! Many apps, such as Decluttr, Let Go, Mercari, Facebook Marketplace, and even eBay can help you get rid of unwanted items around your home, and put extra money in your pocket. Have kids that grow out of clothes quickly? Tech that expires every few years? Books? A simple Google search online can show you the places where you could earn some extra bucks for selling your stuff and save that money for a rainy day!

Revisit Your Monthly Payments

Have you been paying for a service for years and just let it go on autopilot? If so, contact the company to see if there are any updated and cheaper plans available to you! Often cell phone, internet, and cable providers come out with new services or bundles that could save you money each month. Also, check in with your insurance agent to re-evaluate your coverage and plans yearly. Every bit of savings starts to add up!

We hope that you were able to pick up a few tips on saving some extra money. Which appeal to you most? If you’d like to discuss our savings account options, please contact your local branch and we would be more than happy to help set you up for success with your savings goals!

Have you ever gotten a phone call, or an email, requesting information from you that you question?

If someone calls you on the phone and asks you for personal information, or money for that matter, you should definitely have questions. A recent string of gift card scams involve the caller pretending to be someone that you do business with, such as a utility company, debt collector, or hospital, and requesting that you make your payment using gift cards.

We’ve put together some simple ways for our customers to identify scams, and how to protect yourself to ensure that you are speaking with the correct person.

No business or government agency will ever call you and request payment using a gift card. This scam appears to be happening with Apple iTunes and Store gift cards, where the caller will request that you buy the codes and send them as your payment. The caller expresses urgency and leaves the consumer scared and confused. Here’s how to protect yourself if you receive a call that you might suspect is a scam.

1. Hang up the phone and call the company back at the customer service phone number listed directly on your monthly bill (not on the caller ID). Explain to them that you received a call and give them as much information as you can, so that they can tell you if a representative from their company called you or not. They will have the records. If you try to end the call with the scammer, and they are insistent that you remain on the line, don’t be afraid to just cut them off and hang up. The most important thing is to protect yourself and your personal information.
2. Do not ever give your personal or bank information over the phone unless you are positive that you are speaking with the company you do business with. One way to protect yourself in this situation is to ask them questions as well. Places that you do business with will have ways to verify that they are speaking with the correct individual. If you ever suspect you are speaking with someone that is trying to scam you, tell them that you need to go retrieve your information and will call them back. If they give you a phone number, call the corporate line and verify that the individual works there. You can never be too careful with your personal information.
3. If you receive a pop-up on your cell phone, or a message on one of your social media accounts or via email that you suspect is a scam, never give out your information and never click on any of the links within the message. Always back out of the screen, or close it entirely. Report the message to your social media or email provider. Also, if you think you are being scammed online, don’t be afraid to go to snopes.com to verify if something is a scam, or visit the company’s website and do a search to see if they are aware and have more information about it.

Remember, none of the businesses that you pay will ask for your payment to be made with a gift card, especially one such as an iTunes gift card which can only be used at the Apple store. Protect your personal and bank information, and your identity by always questioning who you are speaking with on the phone and verifying facts online.

If you suspect that you are the target of a scam, please note that you should contact your local police department, or the Federal Trade Commission at https://ftccomplaintassistant.gov.

In an effort to notify our customers of the upcoming IRA changes for 2019, we’d like to share some highlights from the press release published by the Internal Revenue Service. All changes have taken effect for the 2019 tax year.

IRA Contribution Limits

For employees that participate in 401(k), 403(b), some of the 457 plans, and the Thrift Savings Plan with the federal government, the contribution limit has increased from $18,500 to $19,000.

If annual contributions are made to an Individual Retirement Arrangements (IRA) account, the limit on that contribution has increased from $5,500 to $6,000 per year. This is the first increase seen since 2013. In addition to this, the catch-up contribution limit for those aged 50 and older remains at $1,000 per calendar year and isn’t limited to an annual cost of living adjustment.

Deductible Contributions

Eligibility requirements for income ranges have been updated for taxpayers making deductible contributions to traditional IRAs, Roth IRAs, and the ability to claim the saver’s credit.

If certain conditions are met, taxpayers can deduct contributions to a traditional IRA. Depending on filing status or income, If the taxpayer or spouse was covered by a retirement plan at work during the year, the deduction may be decreased until phased out or eliminated. This doesn’t apply for those taxpayers and spouses not covered by a retirement plan at work.

Following are the phase-out ranges for 2019:

• Single taxpayers covered by a retirement plan at their workplace is now $64,000 to $74,000 (an increase of $1,000).
• Taxpayers filing as married jointly, where the IRA contribution is covered by a workplace retirement plan, the phase out range is now $103,000 to $123,000 (an increase of $2,000).
• IRA contributor not covered by their workplace retirement plan, but married to someone who is, the deduction will be phased out if the total family income is between $193,000 and $203,000 (an increase from the range of $189,000 to $199,000)
• Married taxpayer filing an individual return covered by a workplace retirement plan, the range for phase-out isn’t subject to the annual cost-of-living adjustment and remains the same at $0 to $10,000.

Additional Limitations

Limitations on defined benefit plans under Section 415(b)(1)(A) has increased from $220,000 to $225,000 effective at the beginning of the 2019 tax year. For participants separating from service before the end of the tax year (before January 1, 2019), the benefit will be computed by multiplying the 2018 adjusted compensation limitation by 1.0264.

Limitations for defined contribution plans under Section 415(c)(1)(A) has increased from $55,000 to $56,000 in 2019.

The Code provides additional dollar amounts that are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). The limitations rules, after the rounding adjustments are applied, for 2019 are listed as follows:

• Exclusion for elective deferrals described in Section 402(g)(3) has increased from $18,500 to $19,000.
• Annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) has increased from $275,000 to $280,000.
• The limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan has increased from $175,000 to $180,000.
• Amount under Section 409(o)(1)(C)(ii) for determining the max account balance in an employee stock ownership plan subject to a five year distribution period has increased from $1,105,000 to $1,130,000, while the amount used to determine the lengthening of the five year distribution period has increased from $220,000 to $225,000.

For more information on these changes, and a detailed account of unchanged limitations, please visit the IRS news release.

Authored By Diédre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank.

The price of higher education has never been higher, and the average cost for just one year of tuition, room, and board at a public in-state school is over $20,000. At the same time the U.S. Department of Education reports that a college education is a “necessity for individual economic opportunity.” Knowing how essential it is – but how expensive it is – saving for college is a must. Here’s how to start a college fund and still keep up with your other expenses.

First things first

The best way to begin saving for college is simply to begin. It’s easy to get caught up in everyday expenses and emergencies and to keep putting college savings off. It’s also easy to rationalize that college could still be years and years away. But, those years will go by quickly.

To be ready, first make sure you’re in the best position to save. Pay off any outstanding debt first, and aim to have an emergency fund of three to six months to cover any unexpected costs. By doing this you won’t be tempted to “borrow” from a future college fund going forward. After this is set, then get in the habit of putting some amount of money away every month, even if it’s just a small deposit. It will add up over time!

Set up the right account

In addition to traditional savings accounts, there are accounts specifically designed to save for college.

• Education savings account. One popular savings mechanism is an Education Savings Account. This plan allows families to contribute up to $2,000 per year on behalf of an eligible student under the age of 18. The advantage of this account is that it grows tax-free. You put away up to $2,000 per year, per child, after taxes. That money is invested through the account to grow more aggressively than with a traditional savings account. Then the money can be withdrawn tax free to pay for qualified education expenses. Another advantage of the ESA is that funds can be used for education expenses before college, such as for K-12 private school.
• 529 Plan. Another option is a 529 Plan. This account lets you save up to $300,000. This option also lets you grow your balance tax free, and quality 529 accounts will give you the option to transfer the funds to another child or beneficiary in the event your child chooses not to go to school.

529 Plans are typically College Savings Plans that function like a Roth IRA. They work by investing your after-tax contribution in mutual funds or similar investments. Much like other investment accounts, the value of your 529 will go up or down depending on the account’s performance.

529 Plans can also be Prepaid Tuition Plans, which allow you to pay the tuition of a participating in-state public college in advance. The benefit of these plans is that you can “lock in” at the current tuition rate. The downside is that most prepaid tuition plans only cover tuition, and not room and board.

• UGMA or UTMA. The Uniform Gifts to Minors Act (UGMA) and Uniform Transfer to Minors Act (UTMA) provide the ability to create a “general” savings account for minors. Then when they reach a certain age, they can withdraw the funds to be used for college education, or for other pursuits such as a down-payment for a house. The benefit of these accounts is that they are not limited to a college fund. Another benefit is that invested funds are not taxed at the parent’s income level. A portion is not taxed at all, and subsequent funds are typically taxed at a lower rate for minors.

Get the kids involved

Finally, remember that kids and teens can be empowered to start planning for college financially, as well. Savings accounts can be opened at any age. Students can also take Advanced Placement (AP) courses that can earn college credit before they graduate high school. They can also aggressively pursue scholarships and grants to help bring costs down.

It’s never too early to start saving for a college education. To learn more about savings options and opportunities, contact your local branch.

Whether you’ve been in business for years, or you’re about to launch a start-up, you must:

• Know your market size
• Identify your ideal customer
• Study your competition

Knowing these three key factors, will help you determine where you stand today, and what strategies you’ll need to implement to keep moving forward tomorrow. Here’s what you need to know when it comes to carving out your place in the market.

Estimate the market size

Your business may be a great idea, delivering a great product or service, but it’s important to know how many people out there are ready, able and willing to purchase your product or service. If the market is too small, your business won’t have enough customers or clients to draw from, and if your market has too many products or services to choose from, yours may not stand out.

To assess the size of the market, look at the total market for your product or service, and then establish a realistic estimate for your share. Next, determine where you’ll sell your products or services, how many locations will stock them, and how many comparable products or services will sell. This amount should be 1% to 5% of the overall addressable market.

Another thing to consider is your penetration rate. You may have a high penetration rate if, for example, you’re selling a product or service that is critical to the work of your customer – such as software, computers, or even office paper. On the flip side, you may have a low penetration rate is you’re selling something that has a specialized purpose that many customers are not ready for or do not have the means to purchase.

Considering these influences together can help you determine how much of a market share you might be able to claim and your projections and strategies for growth.

Identify your customer

In evaluating your market, you also want to factor in who your customers are, how well you can service them, and how you can service more of them. This adds to your knowledge of the market and whether you’re ideally placed to reach these customers and keep their business. To do this, consider your product or service from the customer’s point of view. Think of what problem your product solves or how your service improves the customer’s life.

Consider who your customers are – where they live and shop and what their budgets are. Know their buying strategies and how often they’re apt to purchase your product or service or those of your competitors.

Do a competitive analysis

Speaking of competitors, it is essential to have a firm handle on who else is selling to your market. What do they do – and whether it’s a better or worse value than your product or service – can have a direct effect on the size of the market you’ll be able to secure.

Take a realistic assessment of who your competitors are and their:

• Products and services
• Market share
• Past and current sales strategies
• Marketing and advertising strategies
• Strengths and weaknesses

Asses each competitor’s price point, value proposition, method of distribution and business practices. This can help you determine where you differ, and what opportunities you can take advantage of. For example, if you have a comparable product or service, but at less cost with quicker delivery, you could anticipate seeking a greater share of the market. If another company is delivering “more” than you are, how are they doing it? And is it paying off?

Determine next steps

Knowing where you stand now – and where you could stand – boils down to a realistic understanding of your product or services, the value you provide and just who will pay for them. Many businesses fail by not understanding the market space, their customers, or their competition. Once you’ve honed in on these details, you can better determine your next steps and how you need to distinguish yourself. From there, you can revisit your analysis regularly to make sure you’re evolving and recasting as needed.

Authored By Diédre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank.

Just like a checking account, a savings account is one of the first and simplest tools of personal finance. It often goes hand-in-hand with a checking account, and marks the beginning of a relationship with your bank. But with the many financial and savings options out there, it can be easy to overlook this resource and not maximize it as much as possible. Here are six strategies to get your savings account to do more.

1. Do your research

There are many savings account products out there, and they vary based on their key perks, minimum opening deposit, and minimum balance and pricing options. They also vary in their interest rates, meaning the amount of interest you’ll earn for every dollar you keep in savings. Unlike with loans, with savings accounts the higher the rate the better. Shop around and choose a competitive option.

2. Be realistic

As you look at the different savings accounts, the ones with the more competitive interest rates and monthly compounded interest deposits are definitely appealing. But it’s important to be realistic about how many withdrawals you might make, and how much of a minimum balance you can maintain. Not meeting the account requirements can prevent you from being eligible for the savings account, or could result in monthly service charges. You want to ensure your account is a good match for your income, lifestyle, and goals.

3. Start as soon as possible

Once you know which savings account is best for you, open it as soon as possible! Benefits of saving start immediately. You can set up an account for a young child and use it as a tool to teach money management and savings. Teens can have accounts to save for first cars or college. Newlyweds can open one to save for a down-payment on a home or prepare for rainy days. Bottom line: It’s a good financial habit, and the earlier you start, the more you can save. It’s never too soon!

4. Save automatically

Another way to get the most out of your savings account is to make regular deposits. This can be challenging unless saving money is a natural part of your lifestyle.  One helpful took is to automatically transfer your money to your savings account from your checking account, or having a certain amount allocated immediately to savings after your paycheck is directly deposited. This forces you to only operate out of your checking account funds while the savings automatically happens without you even realizing it. You won’t spend what you don’t know you have!

5. Set goals

Just like with most things in life, setting a goal for your savings can help you achieve it. A goal provides additional motivation and accountability. Set an exact dollar amount and a timeline for reaching it. The goal can be anything: A down-payment for a house, a car, or a retirement account. Set both monthly and short-term goals to stay on track. If you have a savings account for emergency funds, you may want to open another one for your long-term dreams. Your bank can help you determine options and strategies.

6. Explore other savings options

These conversations with your bank may lead to an interest in other savings vehicles beyond traditional savings accounts.  Such as:

• Certificates of Deposits (CDs) feature more competitive rates until maturity. You can purchase a CD with terms to not withdraw the money for 6 months to 5 years. If you don’t need immediate access to funds, CDs can be a great investment.
• Individual Retirement Accounts or IRAs. These accounts help you save for retirement by providing specific tax benefits based on whether they are Traditional IRAs or Roth IRAs.

If you’re looking for savings options with greater returns, CDs or IRAs are a more aggressive option and may be worth looking into.  Savings accounts are a basic tool, in your arsenal of financial management.  They are an effective means of saving money for things you want – or need – down the road. Contact us for more information on selecting the savings account that fits your financial needs.

Achieving work-life balance is the Holy Grail for many of us. For women, the goal can be even more elusive especially if we work in a male-dominated field or if we’re the primary child caregivers. The challenge is further daunting when we consider the need to “lean in” and not step away from the table at critical points in our careers. Based on this, the keys to work-life balance go deeper than creating a flexible schedule or planning for regular downtime. They start with figuring out what that balance is and putting core structures in place to achieve it.

Values

Work-life balance is different for everyone, and what one woman needs could be entirely different from someone else. You have to dig deeper and make sure your life is in line with what you value. Is it financial freedom? Is it being at home for your family? Or maybe not having to travel with your job? And do you find that your work fulfills you as much as other areas of your life? Analyzing these key aspects about yourself can give you a baseline for what you’re doing and what you wish you were doing more of. Be sure to read the blog I wrote about finding your path.

Talents

Another thing people focus on when trying to achieve work-life balance is finding the “ideal” job that has a schedule and deadlines that best fit their lives.  According to How High-Powered Women Achieve Work-Life Balance in Forbes, is to develop a valuable skill set. Focus on doing something you love and will make you valuable in the eyes of an employer. This shifts the dynamic from being a worker who must fit into someone else’s schedule, to being a resource that has something that employers want and will pursue.

Mentors

As you drill down to your values and build your talents, it’s essential to invest in a network of people who know what you do and know your career goals. They will be your partners, advocates, and mentors in identifying opportunities. They will also be a support system once you are in your position to help you juggle priorities, further your career, and build on your success. It takes a village and the value of relationships and allies is priceless!

Organization

Laying this groundwork will make it easier to have the work life you want and the home life you want, without feeling like you’re compromising or – worse – failing. Once you’re positioned to achieve balance, you’ll be better able to focus on the tactical, tangible things that can make the balance even more manageable. This means good old-fashioned systems of organization, delegation, expectations, and boundaries. For example, it is reasonable to not schedule meetings before 8:00 a.m., or step away from your iPhone after 8:00 pm, or schedule a yoga class during your lunch hour. Work-life balance involves creating solutions for work and life that leave you refreshed enough to do both jobs well. This can mean enlisting the help of others, doing less, or just saying no.

Having a career and a life outside the office is achievable. A career is meant to be rewarding, fulfilling, and an essential part of our identities. And having families, interests, hobbies, and roles in your personal life is just as important. There are ways to do both and to do both well, and with the right foundation and organization; you really can have it all!

Authored By Diedre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank

Whether it’s to get established, grow, explore new markets, or just improve the bottom line, businesses typically feel the need to borrow money at some point – or several points – throughout their lifecycle. While it can seem intimidating, taking on a business loan or “debt financing” can be use just what your business needs to:

• Purchase real estate
• Expand operations
• Gain inventory
• Increase working capital

Knowing this, most banks offer a range of business loan products to help entrepreneurs get their feet off their ground and keep reaching their objectives. The question for business owners then is how to choose the right business loan for what they’re trying to achieve.

The following are some of the common products offered and what they can do for you.

Line of credit

Unlike a loan, a business line of credit gives you the flexibility to borrow as you need to, over time. There is not one lump sum to borrow or terms of repayment. You simply pay it back as you use it. Business owners like this option because it lets them budget for inventory, working capital and business cycle needs. It is also backup protection for unexpected expenses and emergencies. Although lines of credit are available in various credit limits, often from $5,000 up to $150,000, they are generally used for basic operating expenses and not large capital expenses, real estate or equipment.

Credit cards

An option many business owners don’t think of as a business loan is a credit card. Just as they are for household spending, credits cards designed for business are convenient and effective. They can be used to track expenses, manage finances online, and easily pay for supplies, equipment and travel. They do come with a credit limit, and there are annual fees and interest payments. And, just like with personal credit cards, business owners should be diligent about not charging more than they can pay off in a timely manner.

Small Business or SBA Loans

Small Business Administration or SBA loans are loans for set amounts for things like land or buildings, new construction, equipment, furniture, or supplies or for funds to purchase an existing business. They are secured, meaning they are linked to your company or business assets as collateral. But they are also government-backed, which can give banks more flexibility in their lending.

This does not mean the Small Business Administration makes the loan. Instead, it provides a guarantee to banks or lenders that they will be paid back in the event of a default.

Some SBA loans offer lower down payments and longer repayment terms than conventional loans, which can help when you’re trying to maintain cash flow and manage debt.

Letter of credit

Another type of business loan is not a loan specifically, but a promise that future loans from other vendors will be paid back. As a business owner, you can apply for a letter of credit, which is basically a letter from the bank guaranteeing that the amount you borrow from other lenders will be paid back on time and in the right amount.

Having a letter of credit in place can give you more borrowing power with potential lenders, especially if you’re dealing in overseas transactions with creditors, wholesalers or service providers that are not familiar with your company.

Business loans

If a line of credit or an SBA loan is not preferred, most banks offer a range of loans specifically for businesses. Loans can be devised in varying interest rates, amounts and repayment terms, and can be used for the broader business needs that may not be covered with other loans, such as:

• Agricultural needs related to farming operations or real estate or equipment purchases
• Construction and development needs related to constructing commercial projects, such as a new office building or retail center
• Real estate needs for commercial properties or investment properties, and
• Equipment needs, which can be financed through loans and leases, leaving you more working capital for operating expenses or inventory costs.

Business loans can be an effective way to finance debt so you can keep moving forward. In the meantime, they can help you establish credit for even more strategic steps down the road. To learn more about the business loans available at Guaranty Bank and the application process, contact us.