Posts Tagged ‘Small’

Small Business Startup Loans – How Does One Acquire Finance For His Or Her Business?

It is inevitable that every business owner will need finance to properly run his business. The question that is always at the mind of every business owner is how will finances be pumped into the business to make it profitable? This is true for every business owner, be it on a large or small scale or on an international or local scale. There will be so many responses to the above question. The responses will depend on the person providing answers to the question as well as it may also depend on the particular period in business at which such as question is being tendered. Despite the varying responses that may be put, all these ideas about getting a business being financed will turn to a single direction. The following lines are meant for those coming into businesses, who want to identify the various options of financing their business and who will want to determine which of these options is the most appropriate for their businesses.

Individual Finances

There are so many business owners who will individually and single-handedly provide the money that is needed by their businesses. The sources of such type of capital may spring from their personal savings and other forms of capital which solely belong to them. However, these sources of finances are really workable if the business owner has substantially built up a good amount of money. If the capital is in the form of assets, it will be easy to dispose these to get some cash for the running of the business. If you intend to make use of capital through the credit card as a means of financing your business, you must take some reasonable precautions. You must be aware that this source of capital is usually best for interim financial provisions.

Angel Financing

This is yet another good way to oil the machinery of your business. When we make reference to this type of financing, we are referring to that type of financing that is often provided to new businesses. This is commonly found in the United States and most upcoming markets. In this type of financing, a group of affiliates belonging to the informal risk sector combine their resources to finance a business. What is usually done is that a business suggestion is proposed to a business owner and if the business owner finds the suggestion interesting, he will be given the option to get the business financed by the group of financiers. This group will also have the option to ether finance the business and take part in running its daily affairs or to stay aloof from the day to day running of the business.

Venture Capital

This is another way of making finances available to a business. In such a case, the business owner will approach a proficient financier and this must be a financier will is willing and capable to venture his or her money into businesses that are not only at the inception, but equally to businesses that have future prospects of expansion. Another form of financing related to this is the corporate venture capital. This is an idea often used by corporations to endow capital in some relatively young but vibrant businesses that may have some relation with these big corporations.

Credit from Banks

This is a source of finance that is commonly sought for. In most cases, either secured or unsecured loans may be provided to business owners. However, lending institutions will warrant that you provide some form of credit worthiness which will have to be carefully scrutinized ahead of making a decision if the loan will be given or not. It is sometimes easier for an unsecured loan to be given to experienced or well established businesses than new ones. But a secured loan will be provided for all types of businesses.

If You Want To Get The Financing You Are Seeking For:

Make sure you find out what the financing is all about, opt for a proficient group, set an objective, make sure your business is properly registered, investigate what type of financing will be suitable for your business and make sure that you have established the necessary connections.

John McGowan Presents Bob Chapman. Mr. Chapman is the publisher, editor and writer of The International Forecaster. This is the program from 8 January 2010. Mr. Chapman is 74 years old. He was born in Boston, MA and attended Northeastern University majoring in business management. He spent three years in the US Army Counterintelligence, mostly in Europe. He speaks German and French and is conversant in Spanish. He lived in Europe for six years, off and on, three years in Africa, a year in Canada and a year in the Bahamas. Mr. Chapman became a stockbroker in 1960 and retired in 1988. For 18 of those years he owned his own brokerage firm. He was probably the largest gold and silver stockbroker in the world during that period. When he retired he had over 6000 clients. Starting in 1967 Mr. Chapman began writing articles on business, finance, economics and politics having been printed and reprinted over the years in over 200 publications. He owned and wrote the Gary Allen Report, which had 30000 subscribers. He currently is owner and editor of The International Forecaster, a compendium of information on business, finance, economics and social and political issues worldwide, which reaches 10000 investors and brokers monthly directly, and parts of his publication are picked up by 60 different websites weekly exposing his ideas to over 10 million investors a week. In June of 1991, at the request of business associates, and due to retirement boredom, he began writing the …

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The Benefits Of Human Resource (HR) Duty For Your Small Business

While most small companies don’t even consider using human resource function, it is not uncommon to find larger companies ignoring this potentially beneficial area as well. Human resources can be a very useful way to improve your business. If properly implemented, it would keep your employees happy and productive while making your business run smoothly.

 

Why Use Human Resources (HR) ?

 

The main reason for using HR is to provide significant support and advice to management.

 

Its main duty is to assess the need of the company in terms of recruiting, preservation of top-caliber people and providing employee benefits, training and other similar packages that would motivate personnels to work with the company rather than for the company.

 

Happy staffs mean loyal staffs and if you give them a good reason to stay loyal, you can avoid the turnaround that many businesses are experiencing these days.

 

 

 

Uses of Human Resource Office

 

 

 

The most valuable resources of a firm are its personnels. They play a crucial role in the attainment of the company’s mission and vision and the bottom line of the firm as a whole. There are numerous benefits of Human Resources. Outlined below are some of the most important ones.

 

 

 

1. Recruitment and Training – This is one of the most important responsibilities of the human resource management department. The human resource managers work out plans and strategies of recruiting the correct kind of people. They design the criteria suitable for a specific job description. Their responsibilities also include formulating the obligations of an employee and the scope of tasks assigned to him. Based on these two factors, the contract of an staff with the firm is developed. When required, they also provide training to the staffs according to the needs of the organization. An organization cannot build a effective group of working professionals without the assistance of a good human resource management department.

 

 

 

2. Performance Appraisals – Human resource management encourages every individual in the organization, to work according to his potential and also helps him increase his potential. The management core communicates with the staff, all the necessary information regarding their performances and also defines their respective roles from time to time. This helps the employee to form an outline of their anticipated goals in much clearer terms and thereby, helps them execute the goals with best possible efforts. Performance appraisals taken from time to time also help in motivating the employees.

 

 

 

3. Maintaining Work Atmosphere – The performance of an individual in an organization is largely driven by the work atmosphere or work culture that prevails at the workplace. A good environment can bring out the best in an employee. A congenial atmosphere gives staffs job satisfaction as well. A good work environment is one of the benefits staffs can get from human resource management.

 

 

 

4. Managing Disputes – There are several issues on which disputes may arise between the employees and the section heads in an organization. In such a scenario, it is the human resource department, which acts as a consultant and mediator to sort out the issues in an effective manner.

 

 

 

5. Developing Public Relations – The management of establishing good public relations lies with the human resource management to a great extent. They organize business meetings, seminars and various official gatherings on behalf of the firm in order to establish relationships with other business sectors. Sometimes, the human resource department plays an active role in preparing the business and marketing plans for the organization too.

 

 

 

Any firm, without a proper setup for human resource management is bound to suffer from serious problems while managing its regular activities. For this reason, a lot of stress is given these days for the setup of an effective human resource management system.

 

 

 

To ensure that small and medium firms improve their business performance and suffer lesser stress, take advantage of the Staff Value Program (SVP) offered by Accelerated Outcomes Pty Ltd (http://acceleratedoutcomes.net) based in Brisbane, Queensland, Australia. This staff retention strategy has been created as a simple program that, as soon as implemented; most companies can ‘self manage’. Invariably each client will ‘add to’ and enhance their SVP over time. The SVP is a framework that systematically guides Participants through a comprehensive series of topics so that they can check their key employee-management issues and design a program that effectively suits their needs and lifestyle.

Ann Weiser, Chief Human Resources Officer for Activision Blizzard, Inc., shares her insights and experiences from a successful career in human resources to an audience at the Graziadio School of Business and Management on Drescher Campus. (Part 1 of 2) The Dean’s Executive Leadership Series invites top business practitioners and thought leaders to share their views on the real world of business. Brought to you by the Graziadio School of Business and Management at Pepperdine University, this series offers in-depth interviews and insight on the challenges and opportunities facing today’s business community. To subscribe to the Dean’s Executive Leadership Podcast please visit bschool.pepperdine.edu

Tips for small Business Finances in the New Year

One recent poll asked entrepreneurs what they personally believe affects the success or failure of a startup company. The 549 founders came from all kinds of industries: computing, electronics, health care, aerospace and defense.

The top most critical success factors included learning from their mistakes and their successes, previous work experience, a good strong management team and good luck. 98 percent said prior work experience was a very important factor.

Some of the most common questions asked on the government’s Small Business Administration (SBA) website are: How do I get a small business loan … or grant? How do I get started in a business? How do I find an investor for my business? What are the interest rates, and terms or fees that the SBA requires on its Guarantee Loan program?

As small business entrepreneurs head into 2010, following are some real tried and true financial aids that can help any business grow.

Do not waste money anymore. By using good financial strategies, you can stick to the plan to help lower operating expenses. Review your expenses to make sure you are not paying double for anything. Just like public companies, review the year in quarters (Q1: January through March)and then set aside time each quarter to review your financials. You will most certainly find areas to cut back.

For example: Do you rent or lease a car or truck? Did you know that a company vehicle is best purchased because they can be depreciated on your company tax returns. Plus you’ll get a higher return on your investment after the vehicle has been paid off, than leasing. However, think about leasing your computers, which is usually a tax deduction, so that you can always trade them in for newer technology when the time comes.

Now more popular than ever before, another financial business strategy is to begin factoring your outstanding invoices. An invoice that won’t be paid for 60 to 90 days isn’t doing your company any good today. However if you find a factoring company to factor one or more of your outstanding invoices, you can use the money wisely to invest in your business and grow faster. Many factors today do what is called “single invoice factoring” where they will spot one invoice at a time.

Accounts receivable factoring is particularly helpful if you need cash in a hurry because once a factor receives your application and reviews your invoices, you can receive payment within as little as 24 to 48 hours after they have pre-qualified the vendor that owes you the money. Remember your credit isn’t checked, but the vendor that owers you the money will be pre-qualified by the factor.

Factoring companies, just like a bank or any commercial financial institution, charges a fee for its services. A factoring company will first examine your invoices and check the creditworthiness of your customers. You should be prepared to show the factor these following: 1) A current financial statement; 2) An accounts receivable aging report; 3) A certificate of incorporation or partnership; agreement; 4) Proof of insurance; and 5) Your company’s outstanding invoices and other business documents.

A factor will take charge of collecting your receivables, so they will want to make sure your customers pay their invoices on time. Once you have selected which invoices the factor will purchase, they will typically pay you an advance; for example, the factor might pay you 80 percent of the total amount of your invoices and then reimburse you the other 20 percent once your customers pays the invoices.

Factors get anywhere from 3 percent to 7 percent or more of the total they collect. Factors’ fees vary depending on the size of your invoices, your customers’ creditworthiness and the number of days (30/60/90) until the invoice is due.

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Make Business Financing Easy With Small Business Loans

Small business is one that is organized for profit and also contributes to the economy by way of paying taxes and employment opportunities. A small business may be defined as a business with a small number of employees. The legal definition of small business often varies by country and industry, but is generally under 100 employees. These businesses are normally privately owned corporations, partnerships, or sole proprietorships.

Whether the business is small or big, it needs fund to carry on its operation, because the returns in business are not stable. Sometimes the company or a firm can have huge profits; at times, it can have losses too. Nevertheless, in the period of financial depression, every business needs a financial help to support in its working.

On comparing small business with big business we find that the need of funds more often arises in the former case as the returns are not constant. Financial crisis in the company can affect the working adversely. Therefore, to stop the effect of this financial crisis a small business can rely on loan for assisting them in need of funds. Small business loan helps them to come out of this situation of crisis. Small business loan can also be used for starting a new venture.

Although small business firms are considered backbone of the economy, but getting a loan for small business firm is not an easy task. Lenders think number of times before lending a loan to the borrower as risk involved in small business is huge. It involves numerous formalities such as giving proof of income that depicts your creditability. Your credit history also plays a crucial role in it. The person with good credit history is always benefited in applying for a loan.

The most important factor that the small business owner should consider before going for a loan is flexibility in repayment. As most small businesses would experience irregular income for some period, so the flexible payment will help in making those repayments easier.

There is also an increase in the number of sources available for funding the small business. Traditional lenders like banks and financial institution also provide loans. In addition to that, loan can also be applied online, which also provides you three benefits

•Fast : you have to just fill a form and get an instant match

•Easier : it makes comparison easier between various lenders available in the market

•Flexible: choose the lender which suits your needs.

The rate of interest charged in small business loans is generally higher since there is threat to the lender about non-payment of installment on time. Therefore, one can trust small business loans for their dream project.

7 Ways to Get Small Business Financing

Money is always an issue for small businesses, especially when starting out.  However, the need for cash injections can continue long after you get that first dollar.  Even same industry businesses can differ greatly, but they all have in common the need for money as well as the places they can go to get it.  Here is a look at seven opportunities to get cash for your small business.

 

Small Business Loan

Probably the most known source for small business cash is the small business loan.  This most often comes from a bank or the SBA; for startup capital or an expansion.  The lender looking at your proposal needs to feel that you are a good investment and you can help them decide in your favor.  Wherever you go to get the loan, there are several things you will need in order to give your business its best chance to get that loan.

Your business plan will tell the lender about your business and you.  They will see how much planning you have done, your grasp of the industry, and how effective the loan will be.

A good cash flow projection tells the lender not only how you will pay them back, but when.  Your best bet is to show hard, but honest numbers.

Your personal financial statement helps the lender to understand where you are coming from and where exactly your business is at.  After all, you’re tied to your business at the hip.

Bring past business tax returns if you have them.  It will show the lender how your business has done and how you have managed money in the past.

Your credit rating is key for establishing trust.  The lender may be giving money to your business, but they are forming a pact with you.  A credit report will fill in the rest of the details of who they are about to trust with their money.

 

Microloans

From the SBA, the microloan program may be a perfect fit for your current financial needs.  With a maximum of ,000, a microloan can be less daunting to acquire, if not a little easier than a small business loan.  The most common use for a microloan is short-term working capital and equipment purchases.  Since most microloans require collateral of some kind, the best use is probably equipment, since the equipment can then be the collateral.

 

Supplier Credit

While this source of income may not work with all businesses, it is ideal for manufacturers and retailers.  A supplier makes money by you buying their products, but if you can’t first buy their products to make yours, they lose a sale.  If you cannot be billed – net 30 days – or if it may take longer to receive your money, it is possible to work out a deal with your suppliers.  An ideal situation is to procure credit out to sixty days.  If that isn’t possible, maybe they will take a percentage of the sales of the end product on top of the cost of the supplies.  This temporary solution could generate higher interest than a loan, but in some situations, it could be your only choice. 

 

Angel Investors

Best in times of growth, angel investors can be a boon to help a small business get over the hump to where they need to be.  Angel investor loans fill the space left after you’ve gotten your small business loan and other capital.  Unfortunately, they are few and far between and spending too much time looking for them can be even more detrimental to your business than cash problems.  The best time to look for an angel investor is when you already have growth, you’re approaching the breakeven point, or you’re expanding.  The worst time is when you’re hemorrhaging money.  Take care, you still have your business to run.  Plan to spend four to six months looking for an angel investor, but use only a quarter of your time.  Like getting a small business loan, be ready with all that proof that you are worthy of an angel’s blessing.

 

Credit Cards

It’s a source of quick, red-tape free cash, but credit card cash advances can eventually kill your business if you’re not careful.  Always keep in mind the high interest charges when you are looking at credit cards as a cash source.  Use them, but only for quick-turnaround, time-sensitive, and/or small scale solutions.  Treat credit card advances like you would a fire; it’s great for quick warm ups, but really hurts if you leave your hand in there too long.

 

Home Equity Loans

Like credit card advances, a home equity loan for your business is a personal risk solution.  They are more attractive however, because of their lower interest rates.  The catch is that if things go south, you lose your home.  Depending on how personally invested you are in your business, this may not be such a different outcome from credit card advances, or even small business loans if calamity strikes.  The main thing to remember when considering the bad side of a home equity loan is that due to consumer protection laws, it’s a much longer process to seize your house than it is from a normal bank loan. 

 

Family or Friends

Nothing ruins a friendship or splits a family faster than money problems.  When you are considering approaching the people you are closest to, you must know the best way to handle the situation, as well as the potential pitfalls.  Some common relationship killers due to business loans is the recipient squanders the money, doesn’t use the money as indicated, doesn’t pay the money back, or doesn’t pay it back in a timely or agreed upon manner.  If you can avoid those situations, you’re way ahead of the game.  The best course for loans with friends and family is to handle it as professionally as a bank loan, or even more so.  Make sure there is a formal agreement with signed paperwork stipulating how much is to be loaned, collateral, interest rate, how it is to be repaid, and what happens if it cannot be repaid.  If you spell out everything on paper, there is no room for disaster due to misunderstandings.  Remember always:  these people trust and believe in you… don’t make them regret it!

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Business Factoring- a Popular Choice for Small Business Financing Today

Does your business need money now? If you are a small or medium sized business, it’s likely you are looking in different places besides banks for quick cash. Besides small business loans and credit lines, venture capitalists also offer <a title=Business factoring at Innuity Funding! rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=http://innuityfunding.com/page/1ny5k/Resources/Business_Factoring.html>business factoring</a> options, so you can keep your business running smooth.

What is <a title=Business factoring at Innuity Funding! rel=”nofollow” onclick=”javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link']);” href=http://innuityfunding.com/page/1ny5k/Resources/Business_Factoring.html>business factoring</a>?

Factoring and discounting, otherwise known as receivables finance, where small businesses sell their invoices upfront at a discount, is the most popular of all the quick cash alternatives out there.

Business factoring is not considered a loan. It is the purchase of a financial asset i.e. a receivable, a financial transaction whereby a business sells its accounts receivables, often their invoices at a discount. Factoring is the sale of receivables differing from invoice discounting-which is considered borrowing, and the receivable is used as collateral.

Business factoring differs from a bank loan because the emphasis is on the value of the receivables- the financial asset, not the firm’s credit worthiness. Also a bank loan involves two parties whereas factoring involves three. The three people are: The Seller of the receivables, the Debtor and the Factor. The factor usually charges the seller a service charge, as well as interest based on how long the factor must wait to receive payments from the debtor.

Different Types of Factoring

Accounts receivable factoring Invoice factoring Domestic factoring Trade factoring Purchase order factoring

Factoring refers to a practice whereby you sell your receivables for a discount before they are due. Today, entrepreneurial companies offering factoring options are willing to buy creditworthy receivables from a variety of resources. Factoring isn’t cheap, you are paying for the cost of the capital, the extra risk including bad debt, and the paperwork factoring requires. But often times for businesses looking for cash, it’s becoming more of an attractive option.

Small businesses are seeking alternative routes to funding for the first time, and entrepreneurs are ready to offer them.

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Small Business Loans: A Nice Business Financing Option For Small Cash Requirements

Get an instant cash advance for your numerous business requirements are now possible with small business loans. With assist of this cash facility people can easily avail the required funds without facing constraint of the lender. They can provide a very supple solution to any type of funding requirements. You can choose any lender as per your requirements but proper research work should be done carefully. Plus, its entire proceedings can be completed online.

If you need instant capital to grow your business or start a new one then small business loans is a great financing alternative.  With support of this finance you can avail funds ranging from £1000 to £25000 for the fixed term period of 1-10 years. You can choose funds range as per your need and requirements.

The interest amount charges on you can be slightly higher as compared to regular loans. But, this is not the subject of getting tensed as competitive research of online market will solve this problem within a less span of time. Though, you have to be sure that the lender you have selected should be good and have excellent reputation in the market.

The approved cash can be utilized to fulfill numerous requirements such as:

Ø Office renovation

Ø Purchase inventory

Ø Buy new equipments

Ø Pay off the wages & salary of the employees

Ø Advertising and marketing expenses

Ø Buy a new land for office premises, etc.

The online application facility removes the rest hurdles in the way to get approved for business loans for women. Filling out an easy application form is enough to fetch swift funds for your pending needs. After submission of application your approved amount will get transit in your mentioned bank account.

The key features of these loans are as follows:

Ø Cash for your business, generally unsecured

Ø You can decide your loan repayments as per your requirements

Ø Easy and flexible repayment tenure

Ø The complete application process can be handled online

Ø All credit borrowers are OK!

Ø No credit check process followed here

Ø You can utilized the funds as per your requirements

Ø Interest rates can be negotiable.

So, handling business expenses is become much simpler and faster with assist of these loans.

How To Garner Small Business Financing In A Dour Economic Climate

These are, without question, the worst economic times the country has faced in a very long time. And, especially given that the nature of this “Great Recession” was fueled in large part by a runaway credit bubble that eventually collapsed in on itself, it is little surprise that many people and businesses with good credit are finding it difficult to obtain financing for a variety of reasons. Whether your revenues are up or down, a loan at the right time can be just want your small business needs to take advantage of a growth opportunity, or to weather the current fiscal storm that is ravaging so much of the world’s economy.

One of the problems stems from the fact that banks and lenders are sitting on liquid money because they are deathly afraid of further economic contraction, coupled with the fact that there may still be a glut of foreclosures in the offing. Remember, all of those five year ARMs are one of the root causes of this bubble, and the peak year for signing ARMs by suspect home buyers was 2006. And those buyers in 2006 were among the shadiest, and the no look loans that they took out were among the worst both structurally and documentation wise. And then, of course, add five years to 2006 and what do you get?

That’s right, a fairly bleak home market and lending forecast for the year 2011.

With that said, though, there are a number of ways to obtain financing, but be forewarned that it will cost borrowers, even those with great credit, substantially more in interest than it ordinarily would. Also, there are number of government loan programs available, but depending upon your situation, that may be a worse proposition than taking out a high interest private small business loan.

And, remember that in hard economic times like this, do not take out financing to meet basic operating expenses such as payroll, operation costs or production costs. Use financing for expansion purposes, to purchase new equipment that will streamline the operations of your business, or if you can find a low enough interest rate, to transfer existing debt.

If you find that you need a loan to cover operating costs, strongly consider slashing your operating costs instead. Because, if business does not pick up, and I point to the 2006-2011 ARMs point referenced above, you will not only be stuck with the same bad financial situation that you are in now, but you will have the added costs of servicing the loan.

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Some Ways To Small Business Financing

In as much as small business do not require a large capital base to start off, these funds may not always be readily available. Business owners are therefore forced to look for other strategies through which they can finance their ventures. It is worth noting that one source of finance may be better suited for a given enterprise but not another, especially considering the repayment plan.

One of the most convenient ways of financing a small enterprise is to use ones own savings. This is because, you will be left to repay yourself at your own convenient schedule and even if the venture happens to fail, then you can just let it go without being harassed from left, right and center to repay that money. You might lose your investment, but nobody will be on your neck.

Government grants and loans are also another source of funds. They are cost effective and reliable. The government has established the Small Business Administration agency that assist small enterprises raise funds with which to set up the ventures. The repayment plans are quite pocket friendly and the interest rates are quite affordable even to the smallest venture in terms of turnover.

Another way to finance your venture is to borrow from private lenders. Although their interest rates may be higher than those of the government, they are less likely to reject your loan application on the basis of your financial background, be it good or bad. If this borrowing fails, or does not play music to your ears, then you can consider financing your venture through partnerships, where you and your partners bring in a given amount into the venture, which will be repaid after your enterprise has realized profits.

Some Small Business Finance Options

Financing a small business is mostly done through applying for loans, which are readily available if one has the required documents. Sufficient finances see to it that an enterprise grows, expands and is sustained as long as it possibly can. Knowing what your business is worth is also key in determining just how much finances it can fetch. Grants are also another source of finance for small enterprises, but they are not as reliable.

If you opt for the loan option, there are tips that are essential during the process of application. Knowledge, as it is said, is power. Before approaching commercial lenders, one could consider other options of acquiring finance, which includes personal savings or borrowing from friends and relatives. If this option fails then one can approach private as well as public financiers.

The loans can be applied for online, but one can also go in person to the lenders and present his case. Having all documents in place puts you at a higher probability of getting financed. Other than the loans, there are other ways of getting finance and they include lease financing, which mostly applies to business equipment. Instead of paying cash and buying the items, one simply hires the equipment on a contract for a given period of time.

Venture capital is another source, which is best described as the firms which fund proposals presented to them by enterprises. The limitation is that, they only finance just a few ventures. The other option is to go public, or in other words to sell stock or debt to the general public. This is however not very common with small enterprises because the process is highly complex and demanding.

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