While many people envy CEOs and corporate heads, it’s worth pointing out that these high-level executives tend to age fast and die earlier. If the success of your company seems to rely on the talent of a few talented people then you might want to consider getting key person insurance (also known as key man insurance).

This is a kind of life insurance policy that’s used by big and small businesses.

But what is key person insurance? And what should you look for when choosing a policy? Keep on reading and we’ll take you through everything that you’re going to want to know!

What Is Key Person Insurance?

Key person insurance is a business insurance policy that’s bought by a company to insure the life of one of the company’s workers. It’s meant to help the business recover from the death of a worker who contributes greatly to the company.

An employer might choose to insure highly visible workers, executives, and top salespeople.

Similar to other life insurance policies, key person insurance has three main players. First, the owner is the person or company who buys the policy and pays the premiums. This entity has the ability to change, sell, or transfer the policy.

The insured is the person upon whose death the policy would pay out the benefit.

Lastly, there is the beneficiary. This is the person or company who received the benefit if the insured person dies while they are being covered.

As you might be able to tell, the company is both the owner and beneficiary when it comes to key person insurance. Of course, the owner needs to tell the insured that they’ll be taking out a policy in their name and get their permission to buy the policy.

Look for the Types of Key Person Life Insurance Available

Any kind of life insurance policy can be structured to fit a key person life insurance policy. This includes either of the two main categories for life insurance.

You can get key person life insurance as a form of permanent life insurance or term life insurance.

When it comes to term life insurance, you are going to get coverage for a certain amount of time, such as ten or twenty years. This is going to cost you a lot less than permanent life insurance.

If the employee is old or has a set retirement date then you can use this kind of policy and set an expiration date.

If you have a young executive who intends to stay with the company indefinitely then you might want to take out permanent life insurance. You’ll get coverage for life and a cash value amount that will grow as time goes on.

The cash value is an asset that the business can use as collateral for a loan. If you go with a mutual insurer then the company might be able to get dividends too.

A permanent key person life insurance policy will gain in value over time. You can sell the policy in a life insurance settlement if the company decides that they don’t want the coverage anymore.

Look for How Much Insurance Coverage You Can Get

If the company is borrowing money then the lender might want a certain amount of key person coverage. Otherwise, the amount of coverage that you’re going to want to get is going to depend on your business and the specific key person.

You want to buy enough insurance so that the value of losing the employee will be close to zero. To do this, you’ll have to consider the profit and revenue that is due to that employee. You’ll also need to think about the cost to replace that worker, the company’s cost structure, and the soft skills that you’re losing when the employee dies.

Depending on which person you want to cover, the calculation for how much coverage you need is going to vary greatly. It might be fairly easy to figure out how much coverage you need for a salesperson but likely much harder for a popular CEO.

Evaluate the Costs

When you’re shopping for insurance providers, you want to go with a company that is affordable and reliable, such as Shelter Bay Financial Corp (https://shelterbay.ca/key-person-insurance/).

Some factors that might affect the cost of your insurance policy will depend on the health and lifestyle of the employee, the policy death benefit, and the kind of policy.

If you are insurance a worker who’s not healthy or old, then you’re going to pay a relatively high amount for the policy. You might not even be able to find coverage at all if the person is really unhealthy.

If this is the case, then you’ll have to look into other alternatives, such as a loan. It’s also important that your company has a succession plan in place if you have key employees with serious health problems.

Find the Key Person Insurance Policy That Works for You

You wouldn’t run a company without having the proper business insurance place. And you likely don’t want to run a company that could lose a significant amount of value if one of your key employees dies.

After reading the above article, you should now have a better idea of what to look for in a key person insurance policy so that your company can stay protected.

Are you looking for other useful articles like this? Check out the rest of our blog today for more!

The worldwide ERP software market is estimated to be worth over $48 billion by 2022.

You’ve heard that ERP software can help your business, but you’re not sure where to start or what to do.

Implementing ERP software is a huge project and it’s easy to make mistakes. If you don’t choose the right ERP or if the rollout isn’t smooth, you could end up with a lot of wasted time and money.

But don’t worry. Keep reading because this guide will teach you everything you need to know about ERP implementation, from choosing the right software to a successful rollout. We’ll also provide tips and advice from experts who have been through the process before.

What Is ERP Software?

ERP (enterprise resource planning) software is a comprehensive business management solution that helps organizations manage their finances, operations, and customer relationships. It typically includes modules for accounting, inventory management, purchasing, order fulfillment, HR, and customer relationship management (CRM).

IFS ERP (Industrial and financial systems) software is designed to streamline business processes and improve efficiency by providing a single system that automates all of the various tasks and processes that are necessary for running a business.

It can also help businesses make better decisions by providing insight into important metrics such as sales data, inventory levels, and financial performance.

Who Needs ERP Software?

ERP software is most commonly used by larger businesses with complex operations. However, it can be beneficial for businesses of all sizes. A study found that companies with ERP software achieve an average of 24% higher revenue growth. And 16% higher profitability than companies without ERP.

No matter how small or large your business is, ERP software can help. It will help you run it more efficiently and make better decisions.

How Does ERP Software Work?

ERP software is typically installed on-premises in a company’s data center. It connects to the various systems within the organization. This includes accounting software, inventory management systems, and CRM systems. It provides a single view of all the data that’s relevant to the business. This allows employees to access the information they need to make informed decisions.

ERP software can also be cloud-based, which means that it’s hosted by a third-party provider and accessed over the internet. This option is becoming more popular due to its flexibility and scalability.

Choosing the Right ERP Software

There are many different ERP software solutions on the market, so how do you choose the right one for your business? The first step is to assess your needs and identify the specific features that you require. Then, compare different solutions to find one that meets your requirements.

Get ERP Implementation Help Today

Implementing ERP software can be a daunting task, but it doesn’t have to be. By following the tips in this guide, you’ll be able to choose the right software, roll out smoothly, and get the most out of your ERP system.

If you’re looking for more advice and tips on ERP implementation, make sure to check out our blog. We have tons of articles that will help you make the best decision for your business. Thanks for reading!

Over 4.7 million people work from home at least half of the time. Are you one of them?

If so, do you have a designated workspace? Whether you have a family, share your space with a roommate, or live alone, work organization is absolutely crucial, especially if you’re trying to prove to your boss that you can do your job- and do it well- remotely.

Does this scenario sound familiar to you? Work organization at home is a necessity, from keeping files organized to creating a functional dedicated space for your work while you stay free from distractions. Keep reading to learn some tips for working from home effectively.

1. Create a Separate Workspace, Even if Simplistic

It’s easy to believe that you can still be productive if you work from the same space as where you eat and live, but that’s not the case. You NEED to create a separate work desk for yourself, even if it’s just a nook under the stairs or a little table in the corner of your studio bedroom apartment.

And this work desk needs to be used ONLY for work, not to eat your meals, not to have conversations with your relatives, and not to help your little ones do their homework. This kind of strict delineation might seem unnecessary, but it will help you work more efficiently. Your brain will know that it’s work time every time you come to your desk and it will rapidly get into work mode.

If you mix your work desk with too many other tasks, your brain, and nervous system will be confused about it all and this can build up your anxiety levels pretty fast. Even if you have very little space in your apartment or home, there are many desks for sale nowadays meant for smaller spaces, so take advantage of them.

There are even work desks that you can stow away after usage, so you can use that space for something else when you are not ‘at work’. As long as you don’t use your work desk for something else as well, it will help you stay organized, both mentally and physically.

2. Use Vertical Storage to Save on Space

Another thing to remember when thinking about work from home organization is to use vertical space as much as possible. If you don’t have the space for traditional bookshelves or storage, why not add vertical bookshelves above your desk? This is a great way to maximize space in your work area and also be creative about your storage space.

You could opt for unconventional and functional storage solutions like using hanging clipboards, corkboards, and whiteboards, to pin papers and other valuable information without taking up desk space. You could also use hanging baskets, and mount shelves on the walls, to store items that you can’t do without when working.

3. Keep Your Personal Time Separate from Work Time

This is a big one for all remote workers. It’s too easy to mix your precious personal time with your work time when there are no clear demarcation points like commute time.

In a traditional workday, you leave your home to go to work and leave work to come home. This tells you clearly when you need to start personal time, vs. when you start work time.

But when you are working from home, you need to make those demarcation points yourself. You can do this by putting away your work phone in a box once you are done with work, so you don’t check it while having dinner with the family (or put it on airplane mode if you have that option).

And you can also ensure that you time block your day, so you know clearly when you are starting work and ending it, and when you need to spend quality time with loved ones.

4. Do Not Forget to Keep Your Desk Clean

Work from home productivity depends highly on how organized you stay and this means keeping your desk as clean as possible. It might be easy to let things go, especially since you don’t have peer pressure from coworkers forcing you to keep things tidy. Maybe you are taking this opportunity to let yourself go, cleanliness-wise.

But that’s going to increase your stress levels fast, if you can’t find important papers, or if you are having a hard time getting anything done because your workspace is so distractingly messy.

Make a rule for yourself that you will clean up your desk at the end of each workday, so you can come to a fresh and clean desk the next day. This should help boost your productivity quite a bit.

5. Organize Yourself Using Workspace Apps

Due to the surge in remote workers, there are many workspace organising apps that are popping up nowadays. If you haven’t used one of these yet, you are missing out. They use scientific research and other valuable data to give you feedback on organizing your workspace at home.

This way you don’t have to waste your time by reinventing the wheel. You can focus on getting your work done fast in a workspace that works for you, and then get back to fun family time.

Work Organization at Home Requires a Bit of Creativity

When you go to work in a traditional office, there are many other smart people taking care of work organization, so you don’t have to. But when you work from home, all that responsibility falls upon your inexperienced shoulders.

Use the tips for working from home mentioned above to start with. And then as you get more experienced working from home, you will have your own tips to add to the list.

Keep reading through our website for more tips on organization at home.

With the many choices available for financial management software online, how do you choose the right one for your business? Specific software exists for taxes, budgeting, analysis, and beyond.

To find the right financial management platform for your business, you need to define what you are looking to prioritize.

Once you better understand your specific business needs, you can choose a suitable platform to tackle your top financial priorities. Keep reading to better define which of those priorities the right financial management software can help you with.

1. Financial Revenue Forecasting

If your business can gather valuable historical data, it can predict future trends. Some of these trends may include future income, revenue, and spending. This data is invaluable for business strategists.

A financial management platform not only tracks financial data but can be used to compare your business alongside outside market trends. Some of these market trends may include mergers and acquisitions.

2. Cash Flow Tracking and Management

The right financial management software can help you track money throughout your business. You can check how and where cash is spent and set limits on spending with corporate cards here.

You will have access to real-time cash flow data and transaction statuses. This real-time data helps you with budgets, allocations, consolidations, and other cash management.

3. Advanced Analysis and Assessment

Your accounting department can use financial management software for multi-department financial analysis. As a result, your accountants can generate accurate, detailed reports with ease.

This includes balance sheets, budget allocation, profit and loss, and other valuable reports.

Once your accounting team pulls the reports, they can further customize them ad hoc style. This is a great addition to heightening your business management.

4. Automated Financial Processes

By automating specific processes within the financial management software, you can stay more consistent with government and industry regulations. In addition, your new software platform can produce and maintain regular, detailed records of your business’s financial dealings whenever needed.

Creating individual reports each time you process a transaction can be labor intensive and diminish your accounting team’s productivity.

5. Ease of Use and Accessibility

Accessibility and usability of financial management software can is customizable, too. For example, you can choose how many employees have access to specific information.

In addition, you can choose to install the software. You choose to install it directly or keep it in the cloud to free up valuable server space in your network.

If you want to access certain information on the go – ask about a mobile app. A cloud-based software solution will be best for accessing the information on the go.

The Right Financial Management Software for Your Business

Defining which financial management software will suit your business is not easy. However, we hope this concise guide gives you better insight into the possibilities offered.

That said, don’t be afraid to take the time you need to do more research. Also, take the time to negotiate a risk-free trial period with the financial platform you intend to use for your accounting needs.

If you found this article helpful, let us know in the comments below. See you back at the blog.

A multifamily bridge loan is financing obtained by commercial property owners to cover when they receive the loan and the moment they utilize the property as initially planned. Commercial real estate and multifamily bridge loans are issued for repayment within three months to three years, but most land at 12-24 months.

Uses of Bridge Loans

Multifamily bridge loans are mostly used to quickly buy a property when there is no option for cash. The main advantage of multifamily bridge financing is that they close quickly and are issued based on the property’s value. Other loan types often rely on the income generated by the property and some heavy analysis. Due to the lack of analysis, multifamily bridge loans close much quicker than conventional loans. But, this comes at a cost. Multifamily bridge loans lenders charge high-interest rates for the loan, which can be as high as triple or quadruple the market rate for traditional financing.

You could also approach multifamily bridge lenders for a loan to rehabilitate or stabilize a property as you wait to obtain conventional financing. The multifamily bridge financing obtained keeps the property on schedule while completing necessary upgrades and then leasing the property. This also applies to other types of properties such as office and retail.

Advantages of Bridge Loans

• Speed of closing: You can obtain multifamily bridge financing within a few weeks.
• Underwrite the property: A hard money lender underwrites properties instead of individual borrowers. The loan is evaluated based on the eventual sale price of the property.
• Interest-only payments: Sometimes, multifamily bridge loans lenders offer investors a specific period where they only pay the loan interest, not the principal. This provides an investor with maximum flexibility and cash flow during uncertain times.

Disadvantages of Bridge Loans

• Variance in interest rate: When you obtain a loan from a hard money lender, you receive a fixed interest rate; however, you don’t lock in a longstanding interest rate.
• Bridge loans are short-term as they usually last for a period not exceeding 24 months.

In Closing

Bridge loans are essential in various commercial real estate areas, such as multifamily. Property owners sometimes require a temporary loan to keep going while waiting for a mortgage. A hard money lender helps many investors avoid foreclosure through bridge loans. If you want to know more about bridge loans, i Fund Cities is here to help. Visit our website or talk to any of our loan officers.