Stanton Financing Guide

Essentials

So what are you going to need in order to get into this real estate game that just seems to keep getting better as the market continues to raise the value of homes month after month? Well, there are a couple of routes that you can go and the equipment, skills, and resources required for each of them is different.

If you are looking to enter into the rental property game, then you will need some hand tools and equipment in order to make repairs and improvements to the property. Now you can outsource this work to professionals but that will definitely eat into your potential profits.

For those more interested in buying a property and then turning it around for a quick profit after making some minor improvements, great credit is probably more important than your skills with a hammer. Of course you will also need good credit to get into the rental property game, but it is not quite as important.

In either event, anyone entering into the real estate investment business will need to do a lot of homework and familiarize themselves with the vast number of real estate loans available on the market today. One of the most important loans to consider using for those looking to quickly turn around a property is the interest-only loan. This means that you only have to pay the interest on the loan for a certain period of time, usually 3, 5, 7, or 10 years. This loan will put more money in your pockets and allow you to make any necessary improvements.

Another tool in your arsenal is called the rebate option. Now in return for accepting a higher interest rate on your loan, a lender will give you a rebate that often is thousands of dollars. Although it would be a terrible option if you were wanting to keep the home, it is a great tool as it puts cash in your pockets that you can use to improve the home and then sell it for a profit.

An interest-only loan is not a good idea if you want to get into rental properties. Here, you want a fixed-rate loan with a large down payment. The more equity you build in your rental property, the quicker you can buy another. An adjustable-rate-mortgage may seem tempting, but this can really hurt you in the future should rates climb. You want to keep rent at a price above the mortgage payment amount so that you are always paying off your principal loan amount so an adjustable rate mortgage could really compromise your ability to do this: remember, you can’t raise rent until a lease has expired!

A real estate investment business can certainly be a path to financial security and that lifestyle you have always dreamed of, but you had better know everything there is to know about mortgage loans and how they work if you plan on being successful. The wrong loan for the wrong reasons can actually bankrupt you so be sure to do your homework before getting into the real estate investment business.

Chris Navi I am a true freelance internet advertiser who dabbles in website design. You can check out resources for having a profitable travel cruise business at my website http://www.getpaid2workfromhome.com/real-estate-investing/. Also check out the 10 best places to advertise online that are completely FREE at: http://www.advertisesmallbusiness.com//free-online-ads

Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:

DEAR LoanResources.Net:

I was very impressed with your article entitled “8 Point Checklist, Evaluating Online Lenders.”

I have tried several sources to refinance my auto. I only have 2 more years to pay $245.04 a month. I owe 4,414.00 on the car loan.

This may not seem like a lot of money but I would like a lower interest rate on my car loan which is now $16.4% APR.

I want to still pay it off in 24 months but at a lower rate so that I can use the money saved to help pay off other bills.

In my internet searches, the auto refinance loans required that you borrow more money than I need. I tried to search for unsecured personal loans on your website and they also required that I borrow more money.

I have a very good credit record and I am working to get some of my bills paid off.

Is there anything you can suggest so that I can get a lower rate auto loan for under $5,000? Any assistance will be appreciated.

Thanks. Geraldine W.

DEAR Geraldine:

Sorry I have not gotten back to you sooner. I took a couple weeks off to be with family…Thanks for the compliment on the article!

Anyway, I read your email and I do indeed have a suggestion or two that I’m happy to share.

A COUPLE THINGS INITIALLY:

1. First, you’re paying a very high interest rate at 16.4% APR for an auto loan! I’m going to assume that your statement as to your good credit is accurate. If that’s true, then you do indeed need to fix this.

2. Since you only need $5000, with the intention of paying it off in 2 years or less, I don’t think you should look for a refinance auto loan or a refinance on your home. Indeed, the bank is going to want to loan you much more money, usually at least $25,000. While a refinance or equity loan on your home does offer tax benefits, we’re only talking about interest on $5,000 over the course of 2 years. I have another idea you may not have considered.

HAVE YOU CONSIDERED?

Have you considered just putting the balance of your car loan on a credit card that has a lower interest rate?

1. Credit Cards are, indeed, unsecured lines of credit with financial institutions.

2. They are the perfect financial vehicle for a $5,000 transfer of debt, with added flexibility, and you should be able to find an interest rate between 9 to 11%, and better, on average.

3. IN ADDITION! Once approved, the bank will usually give you blank checks for balance transfers (sometimes they’ll just do it for you right over the phone)…,

4. AND GUESS WHAT? The majority of the time, the incentive interest rates on the balance transfers are EXTREMELY low; sometimes zero percent for up to 6 months to a year.

5. IN ADDITION! you can apply for incentive cards that provide rewards for your spending….free airline miles, cash back programs, etc. I use the American Express Blue, and I get cash back of up to 3% on everything I spend. So, for $5,000, 3% cash back, AMEX

Litigation is a very costly affair. An individual involved in litigation needs good financial backing to work out the case, hire a lawyer, and settle court dues and other small and big expenses. Most people fighting lawsuits may face financial hardships. They may not even go in for a fair settlement. At such a time, the Litigation Financing comes in handy.

Companies offer Litigation Financing to those persons, attorneys or companies awaiting a fair settlement. This is the fund given as advance or pre-settlement charges. Litigation Financing is a non-recourse settlement that helps the individual financially in times of litigation. No matter how meritorious his or her claim for redress of grievances is, they may not succeed in litigation all alone. Hence, they hire an attorney who has specialized in the kind of case the individual is involved in.

For instance, a veterinarian will approach a specialist attorney in veterinary malpractice cases. After building up and filing a case, the individual avails himself of Litigation Financing from a Litigation Financing Company, through the attorney. The company, based on its evaluation of the case worthiness, fixes the fund. The Litigation Financing is often non-recourse in nature. The individual or company needs to clear its dues according to the agreement signed with the company. That is, the company buys a portion of the settlement charges as recovery. The payment is made only if the case is won. Litigation Financing is thus a pre-settlement charge given as an advance to the client approaching a Litigation Financing company. The company recovers the ‘financial help’ if and only if the client wins the case. Of course the individual has to make an initial fee payment. Litigation Financing is offered for personal injury, accidents, malpractice, wall collapse and other such cases.

Litigation Financing provides detailed information about litigation financing, commercial litigation financing, litigation cash advances, litigation financing companies and more. Litigation Financing is the sister site of Lawsuit Funding Companies.

I don’t know about you, but hardly a day goes by I don’t receive spam emails about grants. Spam that absolutely promises me I can buy a book and get a $30,000 grant, just for being alive on the planet. Spam that assures me there are grants available to pay my credit card bills, start any kind of business, or buy a shiny new car.

To some degree, those spam emails are why I established a website devoted to grants. Because I have been a grants consultant for thirty years, I know the truth about grants, and I want to share that truth with you.

The truth about grants is a good news/bad news proposition. Let’s get the bad news out of the way first:

Nobody is going to award you a grant of $20,000 or $30,000 to spend at Saks, or pay your bills. Nobody is going to give you cash to start a network marketing business. Nobody is going to buy you a new Mercedes to drive around the neighborhood.

But really, in your heart of hearts, you already knew that – right?

Now for the good news about grantsand there is some very, very good news indeed:

Every year in the United States alone, $360 billion is available in grant funding for individuals, businesses, and non-profit organizations. This is the real thing, money that is genuinely available from solid, dependable funding organizations.

There are grants for college, grants to pay for medical care and drugs, and grants to support research and study projects. There are some government grants available to certain established businesses, and a very limited number of grants to start new businesses.

There are grants for women and for minorities, grants to buy homes, grants to acquire and repair rental properties, and grants to develop new products that will help the environment. There are grants to fund a virtually unlimited number of community projects. If you have a project that offers some social value, there is probably a funder who has a grant for which you can apply.

Government agencies, foundations, and corporations all make grants. Almost universally, grants do not need to be repaid, and grants are tax-free.

Are you beginning to see the scope of this?

To help people understand just how much potential there is in grants, I often describe grants funding as a “parallel economy”. There is the standard economy, where goods and services are bought and sold, and taxes paid. Then there is the parallel economy of grants, where gifts are requested and received.

Not just a few gifts. Three hundred sixty billion dollars in gifts.

So is there a trick involved in getting grants? No. But, as is true in any situation in life, there is a framework within which the successful grantseeker must operate. If you want to profit from grants, you must put forth the time and effort to learn how this parallel economy operates, and how to play by its rules.

First, grants are all about purpose. Every grant is offered and awarded in order to accomplish a specific purpose. Every funding agency has a mission it wants to carry out, and grants are given to further that mission. So if you want to start a children’s orchestra in your town, you must find the funder who considers musical programs for children part of its mission. If you have invented a better trash compactor, then you are looking for a funder with an environmental mission.

Second, there are a host of resources for finding and identifying grants. You must learn about the types of grants, who is making them, and how to locate them. You must learn how to tailor your project to potential funders.

Third, there is a specific format for requesting grants, called a grant proposal. Although there are many different types of grants, the basic grant proposal format can be adapted to all of them. You must learn how to write a good proposal, and assemble all the information a funder will want to see.

This all sounds a bit more complicated than just buying a book, right? So the question becomes, is it worth the effort?

Well, I’ve raised millions of dollars in grant funds for my clients, and for myself. I bought an apartment complex free and clear, without a penny of my own money, with a grant. I absolutely believe it’s worth the time and effort involved. Where else but in the parallel economy of grants, can you ask for what you need, and receive it as a gift?

2003 – 2005 (c) Jillian Coleman Wheeler

Jillian Coleman Wheeler is a Grants and Business Consultant. Her website, http://www.GrantMeRich.com, is a resource site for entrepreneurs, grant writers and consultants, and offers online training for grants consultants. She is also author of The New American Land Rush: How to Buy Real Estate with Government Money. For information: http://www.NewAmericanLandRush.com You may reprint this article, if you credit the author and include this
resource box. Please notify the author of publication information: jillian@grantmerich.com

Should you decide to buy an existing business, several factors enter into consideration of how to finance it. Let us discuss the most important of these factors.

The amount of capital required.

Nearly all sales of small businesses are, strictly speaking, merely sales of the assets of the business. The buyer does not want to purchase “the business” because that would include liabilities, including unpaid taxes, exposure to law suits under the prior ownership, etc. This is not to say, however, that the amount agreed upon is all the buyer needs.

Buyers commonly underestimate the amount of capital required to purchase a business. Capital must be available not only to pay the purchase price but also for:

funds to operate until the business is generating cash,

funds to meet unexpected expenses, and

funds as a reserve to allow for errors in expectations.

A buyer must think beyond the purchase price to determine the amount of capital needed. Here are some questions that must be asked:

Do I have enough capital to pay the purchase price?

Do I have enough capital to support 1 to 3 months’ operations–such as payroll and other cash expenses–while the business reaches a self-supporting stage?

Do I have some extra capital to cover needs I may have overlooked (perhaps 10 to 15 percent of the purchase price?

The type of capital required.

The buyer must decide how much of the selling price will be covered by equity capital, i.e. investment in the business by the owner or owners, and debt capital, borrowing that must be repaid.

If a combination is to be used, the equity capital provides a margin of safety for a lender. The greater the amount of equity capital, other things being equal, the easier it is to get debt capital.

In purchases of small businesses, the primary source of equity capital is generally the personal savings of the buyer of the business. Few buyers, however, have enough personal savings to finance the purchase of a small business without any debt financing.

The sources of available capital.

An individual may borrow money for the purchase of a business by obtaining a personal loan, by borrowing against insurance policies, or by refinancing a home mortgage. These debts are not direct debts of the business, but the debts of a small business and the personal debts of the owner cannot be completely separated. Banks are the principal institutional source of debt capital for small businesses.

The seller will sometimes finance part of the cost of the sale directly. Sometimes this can make the buyer wonder whether the seller is too interested in getting out from under the business, or if the business is as good as it looks.

The length of time needed to pay back the capital source from the business operation.

No matter where debt originates, a critical question is whether the business can support the debt payments in addition to all the other costs of doing business.

Due diligence: Evidence of ownership

The buyer should get from the seller a certified abstract of title for each parcel of real estate involved in the transaction. The abstract should be examined by the buyer’s attorney. In addition to disclosing any defects in the title, examination of the abstract and the abstractor’s certificate will usually show whether there are any unreleased mortgages, judgment liens, mechanics’ liens, tax liens, or unpaid real-estate taxes and special assessments.

The seller should be asked to show evidence of ownership of principal items of personal property in the form of bills of sales, receipts, assignments, motor-vehicle title certificates, and so on. Such evidence will not prove that there are no recorded liens against the property, but lack of it should alert the buyer to the possibility that personal property in the physical possession of the seller is rented, leased, borrowed, or delivered on consignment.

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

Do you sell to the government or to large companies? Do you regularly get purchase orders that stretch your company’s ability to deliver? Lastly, if you had financing to cover all your supplier costs, could you sell more? Much more?

If you answered yes to any of these questions, then purchase order financing could help your business grow.

Purchase order financing is a way of financing sales that has been gaining popularity with US and Canadian businesses. It offers a very simple proposition. If you have an order from a large credit worthy business (or government agency), then the financing company will provide you with the necessary funding to fulfill your supplier payments and make the sale. Call it sales based financing. It works well for resellers, distributors and wholesalers, although it can also be used in other industries.

Here is how purchase order financing works. Let’s say that you own a company that has been getting progressively larger orders, tightening your cash flow. After setting up a purchase order financing agreement, this is how your sales financing would work:

1. You get an order from a client
2. The purchase order finance company handles up to 100% of your supplier payments (by direct payment or letter of credit)
3. The order is fulfilled and the goods are delivered
4. The transaction is settled, once the client pays their invoices

As you can see, purchase order financing allows you to leverage the resources of the financing company and allows you to increase your sales. With PO financing, lack of cash flow will never be a reason to lose a sale.

As opposed to a business loan from a bank, purchase order financing is very easy to obtain and can be set up in days. The main requirement is to have valid orders from good commercial or government clients. Most banks won’t offer this type of financing, but you can get it from a factoring company. As a matter of fact, purchase order financing and invoice factoring are frequently combined to help reduce the costs of the transaction.

So, if your purchase orders are piling up, be sure to consider financing with purchase order funding.

About Commercial Capital LLC
Interested in purchase order financing? We are purchase order finance experts can provide you with a purchase order financing proposal. For more information, call Marco Terry at (866) 730 1922 (toll free USA / Canada).

Businesses are something which have a tendency to change hands now and again over the entire life of the business. Whether it is a merger or an outright sale, there are certain factors which will affect the overall value of a business that is put up for sale by its current owner. The following paragraphs will highlight some of these factors and explain why the overall value of business can be altered from time to time.

Delaying the Sale

Selling one’s business is an extremely important decision for a business owner to make. The sale thereof is something which can either make or break the financial stability of an individual at times. A factor which tends to affect the overall value of a business is a delay with regard to deciding whether or not to sell the business. As there are times when the market would be most profitable for a business sales transaction, this time period can pass should an individual business owner wait too long to determine whether to sell or not.

Not only outside factors, such as the general market, will affect the sale of a business. Internal factors such as a decrease in sales, creditors and unrest amongst employees within the company may all affect the time period in which a business goes up for sale. With that said, it is important that individuals sell when the time is right for selling. Unreasonable delay in a sale of a business may have adverse effects on the overall value of the business.

Private Business Owners Lack the Resources

Another factor which affects the overall value of a business with regard to the sale thereof has a lot to do with the lack of resources that many business owners experience. Unlike their corporate counterparts, smaller business owners do not have attorneys, accountants and financial advisors at their beck and call who can aid them in the sale of their business. Due to the lack of these professionals, business owners tend to take longer selling their business and finding the best buyers which will affect the overall value of the business.

Lack of Appropriate Business Sale Knowledge

Much of the information which an individual can gain from outside media sources such as television, magazines and websites deals with selling larger companies. For those individuals who are looking to sell a smaller, privately owned business, they may find difficulty gaining valuable insight into how to sell their business so that it brings in the most profitable price. Not having the requisite business knowledge can hinder the overall value of one’s business, as they do not know how to sell the business in a way which brings in the best price.

Future Profitability

A buyer in a business purchase transaction wants to know that the business which they are purchasing is one that will see future profits. It is not only important for the business to be seen as doing well at that particular moment in time, but it is also vital that the business will continue to do well in the future. Therefore, future profitability is something which will drive up the value of a business. After all, who really wants to purchase a business that will go downhill soon thereafter. The answer to that question is probably no one. If a current business owner can show factors which relate to future profitability of the business, then their business may be one that is portrayed as having good value.

Position the Company for Sale

A business that is going to achieve the best price and be seen as having the best overall value is one which is properly positioned for sale. There are many aspects which can adequately position a business for sale such as showing unique qualities that the company maintains, the value of its employees and the profitability of the company as a whole. The company must be prepared in a nice, attractive package in order to have the best positive value. A company which is under great management, sees good profits on the market and is a good purchase opportunity overall will yield the best selling price. Positioning the company for sale is best left up to professionals who are in the market of handling situations such as these.

Summary

To conclude, the previously mentioned items are certain factors which can affect the overall value of a business that is being sold. In order to ensure that a current business owner receives the best value for their company it is important to take certain steps to avoid sale delays, obtain the necessary resources to help the sales process along and retain the help of knowledgeable professionals in areas where they are needed. By taking the aforementioned steps, the current owner of the business will be better able to get the best possible selling price for their business.

Aaron Muller is a partner of KRBrokers. Visit our website for Seattle business opportunities. Established in 1984 and located in Seattle, Bellevue and Redmond. KR Business Brokers has helped thousands of business buyers and sellers achieve and realize their financial independence and business ownership dreams.

Why bad credit happens:

Bad credit happens because credit cards are made available to people who are not emotionally mature or financially responsible enough to be able to understand the ramifications of using credit cards. Credit cards operate on the “buy now, pay later” plan but are backed by a guarantee that many people will not be able to “pay later”. Interest adds up and the credit card company is able to make a monthly profit as the person with bad credit struggles to maintain payments.

Bad credit does not make you a bad person. The most frequent cause of bad credit is youth. Every fall, when college students enter campuses across the country, they are met with credit card companies who offer them their very first credit card. Teens are generally impulsive and have trouble understanding the ramifications of credit card debt as well as the impact of interest on money owed. This often results in bad credit which feels overwhelming to repair and gets ignored throughout the college years while other issues take precedence.

The other main causes of bad credit are disorganization and desperation. Many people have the money to make their payments but are not organized enough to do in a timely manner. Late payments and going over your credit limit immediately lead to bad credit. Submitting frequent applications for credit cards and other loans also leads to bad credit.

Accidental bad credit

Bad credit can also occur purely by accident or intentionally by accident. Purely by accident means that the bad credit is an error in credit reporting or a computer error which leads to a report of bad credit which is incorrect. Intentionally by accident refers to bad credit resulting from identity theft problems, intentional on the part of the thief but accidental in terms of reporting and relationship to you.

Repairing bad credit

Luckily, it is relatively easy to repair bad credit. First, you should obtain a credit report in order to see that the information is correct. The credit report will also help you to keep everything organized so that you know how much money you owe to who and at what interest rate. This information will allow you to begin to repair bad credit. You will make and stick to a budget and create a reasonable repayment plan, repairing your bad credit. As you make payments, you should check with credit reporting agencies to see that your bad credit is being replaced with good credit on your credit report.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.

Direct Public Offerings, commonly known as Internet Offerings, are a development of the Internet and World Wide Web. Similar to SCOR offerings in the type of paperwork required, they remain an unknown as far as acceptance by the securities industry. Their primary setback at this time is that there are no acknowledged trading markets (like NASDAQ, NYSE, AMEX).

Test for a Direct Public Offering

Drew Field, on his web site (http://www.dfdpo.com/screen.htm) suggests the following test as to whether your venture is a candidate for a DPO:

1. The business would excite prospective investors, making them want to share its future.

Soon millions of Americans will become “securities analysts,” using computer-based tools for screening and selecting among thousands of companies to invest their retirement funds and savings. Until then, companies will have to attract us with a story close to our personal interests. We’re not ready for the “dull but good” businesses yet.

2. There is a history of profitable operations under the Company’s present management.

DPOs are sold when the prospectus is read, by cautious individuals spending their own money. With some exceptions, they want proof that management can turn a profit.

3. Company and management meet standards of honesty and social responsibility.

When people invest directly in share ownership of a company, after making their own decision and using their own money, they feel a sense of identity with that company. Polls consistently show that an overwhelming percentage of consumers prefer products from companies that aren’t causing harm. That carries over to buying shares as well.

4. The business can be understood by people who may have no experience investing.

Shares are sold in a DPO when someone reads the prospectus, and sales are lost when this prospectus is difficult to understand. Try describing your business in ten words or so. Also, try telling your whole story–what your business is, what you’re going to do with the public’s money and the particular risks of investing in your shares–in a one-page memo.

5. The Company has natural affinity groups, with cash to risk for long-term gain.

Affinity groups may be easier to explain your business to, but also need to be large enough to buy your entire offering. For instance, people in the same area of town may be likely investors, even if they aren’t also customers. Other groups may be interested in the particular technology or corporate mission of a business. Along with the number of potential investors, consider strength of the affinity (how loyal do they feel toward your company).

6. Those affinity groups will recognize the Company’s name and consider its offering.

DPOs for companies with consumer branded products should carry the logo, slogans and color identifications through into the share offering materials. Companies with names that are entirely different from their product names must transfer the feelings about the known name over to the new one. The greatest challenge is to create recognition for a company with no current identification among affinity groups.

7. Names, addresses, phone numbers and demographics are in the Company’s database.

There are ways to “profile” those customers and figure out how to reach them through selected media.

8. A Company employee is able to spend time as project manager, directed by the CEO.

There needs to be one person for whom the DPO is the top business priority. Experience has shown that anything less than that will lead to slippages in the schedule and a decline in enthusiasm for getting the job done. The ideal is someone earlier in their career who works directly under, and speaks with the authority of the CEO or CFO.

9. The Company has, or can obtain, audited financial statements for at least the last two fiscal years.

This is the requirement for the new securities law filing forms made available to small businesses (under $25 million annual revenue) by the federal Securities and Exchange Commission. Unless the company has been in business less than two years, we suggest that you not try to save accountants’ fees by using unaudited (even “reviewed”) numbers. In cases where prior years would be difficult or impossible to audit, or where accounting records need to be put in auditable shape, it may be best for the company to arrange some private financing until it is ready for public scrutiny.

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

One of the biggest thrills that you will get as a business owner is getting a large order from a great customer. The sort of order that lets you ring the cash register and take your business to the next level. Unless, of course, you can’t afford to pay your suppliers. Then you risk losing the client, the order and this big opportunity.

Going to the bank to try and get financing is often an exercise in futility. Unless your business has strong assets, three years of operating history and audited financials, there is little chance that a bank will provide financing such as a business loan, line of credit or letter of credit. However, there are other alternatives. If you own a company that is a distributor, reseller, importer or wholesaler you should consider purchase order financing.

Purchase order financing provides you with the necessary funding to pay your suppliers, deliver the products and ultimately make the sale. As opposed to most bank financing, it is relatively easy to qualify for. The main requirement is that you have purchase orders from good customers, make at least $50,000 a month in sales and have profit margins of 20% or more.

The transaction is relatively simple. Once you know you’ll get the purchase order, you set up an agreement with the financing company. Once the agreement is in place, the financing company will take care of paying your suppliers and ensuring proper product delivery. The transaction is settled once the customer pays for the product, usually 30 or 60 days after delivery.

Usually, purchase order financing is used in conjunction with invoice factoring. This enables you to streamline your cash flow and reduce your costs, since invoice factoring is cheaper than purchase order funding.

Purchase order funding lets you make sales that you cannot afford to make (or lose!) and provides you with the financial platform and backing to grow your company.

About Commercial Capital LLC

We are a business financing company that can provide you with purchase order funding, purchase order financing or a letter of credit.

Copyright (C) 2006 – Commercial Capital LLC – Article may be reprinted if it is not modified and if all links are kept intact.