Within this age of falling economic indicators and ever escalating credit card bills for the average American consumer, debt management has become something of a hot topic everywhere from water coolers to bar stools, but there are a host of different methods surrounding debt management. Everything from bankruptcy to home mortgage refinancing to payday loans could reasonably be considered a form of debt management, but, within the scope of our current essay, we shall concentrate upon those types of debt management that consolidate unsecured (meaning, those loans without property attached) revolving debts through a series of negotiations with the lenders by a third party debt specialist. Credit card representatives are surprisingly open to bartering when properly cajoled by experienced debt management professionals, and, depending upon which program you choose, your interest rates and sometimes even your actual balances may be reduced significantly through these negotiations. The principal forms of this sort of debt management are Consumer Credit Counseling and Debt Settlement. Both strategies consolidate existing loans while attempting to decrease the overall money that is owed – though, to tell the truth, Debt Settlement (not accepting funds from credit card companies, unlike the lender subsidized Credit Card Counseling industry) has a far better success rate for actually diminishing the financial obligations.To a point, consumers can endeavor to attempt this sort of thing themselves. Certainly, representatives of the unsecured creditors will be open to conversation about the consumers’ renewed attention toward paying off their debts and will often shrug away interest rate reductions or waivers of past fees. However, unless you include a certified debt management company, it’s unlikely that you shall be able to truly lower the amount of the burdens. This is the importance of the consolidation effect. Debt management companies – Debt Settlement companies, particularly – can wield their leverage so effectively primarily because, since they’ve already consolidated all the various debts from the borrowers, each lender knows that they will be surrendering no more than their competitors. It’s not exactly that lenders do not care about retaining the rights to whatever money’s owed at whatever interest rate was originally agreed upon, but those lenders also understand that – however weakened after the legislation of past year – Chapter 7 bankruptcy debt elimination does still exist. As long as there is some semblance of bankruptcy protection, however unlikely the chance or unpalatable the option, each borrower has the potential of declaring bankruptcy protection and legally abandoning all credit card accounts. The credit card companies are under no obligation to make such offers, of course, and a few lenders yet refuse to negotiate with Debt Settlement counselors nor decrease current credit accounts regardless of the threat.Since debt management remains such a relatively young field, many consumers are rightly concerned about how to go about selecting a company to work with. It’s not like you can just ask your grandfather for advice on debt management the same way you’d expect him to have knowledge of loan officers or accountants. To a certain point, one has to trust instinct when choosing the firm and the counselor with whom you’re – in a very real way – entrusting your family’s financial future, but there are ways to verify the company’s qualifications before starting the process. The Better Business Bureau and several federal agencies maintain records of prior clients’ disapproval. The internet tends to highlight negative features of virtually every enterprise. Consumer Credit Counseling agencies, the past three years, have become an essential part of the bankruptcy declaration – pointless courses are now required before and after Chapter 7 debt elimination – and, through this unexpected turn of events, the more legitimate Consumer Credit Counseling firms must now undergo Justice Department scrutiny and approval in order to be considered for this (highly profitable) secondary purpose. Consumer Credit Counseling companies that do not bother to request government certification likely either have something to hide or display a laziness that in itself should be a warning sign. Debt Settlement companies, while they are not subject to the same governmental scrutiny, maintain their own national organization which subjects members to a rigorous bout of testing before certification would be awarded.In the most basic possible explanation, the Debt Settlement approach attempts to negotiate lower balances from the creditors in exchange for a heightened payment schedule (and hefty tax write off for the lender, naturally). While the Debt Settlement method does carry alongside a deleterious effect as regards credit reports and FICO scores, the worsened credit rating is still relatively minimal compared to most other debt management solutions. Many of the unsecured lenders – we’re largely talking, once again, about credit card accounts – try to woo problem spenders and delinquent borrowers through offers of one-time lump sum payments that greatly diminish overall balances but those balance are not then reported as ‘satisfied’ to the credit bureaus, Indeed, while these sorts of shenanigans may technically be considered debt management, they are often falsely named debt consolidation when in fact the practice actually resembles a last ditch scheme of desperation on the part of the borrower and the lender. This sort of debt management approach is thought to be the last refuge of the wicked, and your credit report shall reflect this.As long as you do not overly upset the household budget nor forget to save some additional funds for medical emergencies and the like, each borrower should do what it takes to pay off their loans as swiftly as possible with the worst interest rates tackled first. While tax liens and court mandated burdens cannot be avoided – after all, the ultimate consequence for ignoring those debts is rather more severe than purely lowered FICO scores – there’s also little reason to pay much more than the minimum. Governmental debts generally feature very low interest and court representatives are surprisingly willing to extend terms and lower payments so as to not too greatly inconvenience the debtor, and the same can be said for most (typically community or state monitored) utility companies. Utilities, it should be said, also tend to forget to report late payments to the three credit bureaus, but the same cannot be said for real estate loans or other secured debts. You need to make sure your mortgage, especially considering the current boom market for foreclosures, is paid precisely on time (mortgage lenders, already tending toward the predatory, love nothing more than to ruin their borrowers’ credit scores so as to prevent future refinancing), but, even so, you shouldn’t concern yourself with getting rid of secured loans too quickly. They look the best upon credit reports, they appreciate in value (apart from automobiles, of course) and they tend to have the best interest rates.Credit cards should be the primary focus of proper debt management, and, to really strike a blow against the various lenders, you should probably consider one of the debt consolidation techniques that are increasingly popular for Americans of all walks of life. To be sure, you can talk to credit card companies on your own, but, as we said earlier, they are far less likely to treat settlement negotiations with amateurs as seriously as they would an experienced (and, with regards to the new debt settlement industry, certified) debt management profession. Even so, you have to remember that there are many different forms of consolidation out there and an equal number of possible results to be had from your efforts. So many consumers walk blindly into Consumer Credit Counseling offices after being pummeled by the endless succession of advertisements and are immediately talked into signing on in order to receive the lower interest rates (and, more importantly, the vastly lowered payments made available) without actually thinking over whether or not the program is right for them. There are FICO score issues to be discussed – Consumer Credit Counseling actually shows up worse than bankruptcy protection when written upon credit reports – and the question of whether or not such a program would actually aid your finances in the long view.Remember, while interest rates will almost assuredly be lowered well below what the credit card companies charge, there are fees involved with Consumer Credit Counseling (apart from whatever they charge the credit card companies; yes, it’s a very profitable enterprise) that do not always make up for the comparatively lessened interest rates. At the same time, while the payments will almost always be substantially lower through any Consumer Credit Counseling consolidation program, that’s often because the terms are extended to such a degree that – even if the interest has been dramatically shaved – the borrower will still end up paying more money over the course over the loan. Particularly for debtors that already have demonstrated problems with their buying habits, lower monthly minimums are not necessarily in the debtors’ best interests. Consumers prone to purchasing binges should not always have more spending money made available to them when they have not addressed the underlying causes that first landed them in the predicament of needing debt management assistance. Much of the time, you would be better suited by merely taking care of the bills at hand – with credit card remaining the priority – rather than paying additional money for one company to artificially lengthen the repayment process. At the very least, take care to investigate the Debt Settlement approach and indulge a free initial consultation to distinguish their possibilities when compared to Consumer Credit Counseling.Even after the approach has been decided upon and the company of choice has been, as they say, vetted, there are, still, several things to watch out for regardless of the business’ standing within the community or their previous dealings with friends and family. Remember, no matter how legitimate the company, you are personally dealing with a debt specialist working for that company, and, regardless of the organizational guidelines, even the best firms may sometimes hire counselors that are striving to get ahead above and beyond the purposes of their client. Once again, you must get everything – EVERY LAST DETAIL – written down and fully documented to prevent potential abuse from less than competent assistance. Ensure, through recorded agreements, that the creditors shall be paid each month on time as promised so that the debt management company knows that they themselves will be held liable for any potential slip ups. If the debt management firm says that the creditors insist upon an initial payment toward said debt management firm prior to negotiation (which does occasionally happen), ask to see the paperwork – or, better, talk to the lender yourself and verify precisely what they want.Do not agree to any program necessitating stipends that you believe your household cannot regularly meet. It is the responsibility of the debt management company to calculate a budget that recognizes the day to day expenses their clients of yet and does not stipulate a monthly payment that overly restricts the availability of their funds. So much of debt management revolves around proper budgeting, and the counselor has to be considerate of their clients’ needs. While you should not thoroughly respect any program that allows overly lax terms (minimizing payments without touching the balances of your credit card debts, after all, only increases the eventual sums to be paid once compound interest continually adds up), you have to make sure that the payments are still comfortable for the household throughout the year. As well, you should know that most of the more effective debt management solutions force their clients to refrain from additional borrowing over the course of the program. Once again, this philosophy changes alongside the debt relief approach that you choose, but you’d probably better assume that, while within the debt management proceedings, you will not be allowed to take out further loans.If anything we have written sticks with you, it should be this: document on paper ever single element of debt management. Even prior to accepting one program or another, you should receive a written estimate that details every single fee the debt management company may charge. However comfortable and friendly the debt counselor that you plan to work with may seem, do remember that the most successful financial professionals essentially ask for as much as they think the borrower is willing (or able) to pay. No matter your relationship with the debt management specialist handling your case, demand a legal documentation of everything discussed. It’s just common sense, really. Even if your counselor genuinely is legitimate and beyond reproach, the debt management company itself may have institutional guidelines that attempt to slip in unnecessary charges hidden in the fine print. The eventual quote can’t be analyzed too closely. If you aren’t sufficiently familiar with the verbiage or concepts surrounding the debt management contract, ask friends or even acquaintances for assistance. Make absolutely sure that this is the program that you want to join and that this is the company you wish to work with for a number of years. Once you sign up for a debt management program, it’s not exactly a life partnership, but the repercussions shall be felt for years to come should things go poorly.
Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?
There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.
In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.
But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.
Different Types of Financing
One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.
Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.
But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.
Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.
Alternative Financing Solutions
But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:
1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.
2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.
3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.
In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:
It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.
A Precious Commodity
Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).
Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.
Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?
Traveling To America? New ESTA Registration Mandated January 2009
For years, visitors from certain foreign countries have been able to travel to America without first getting a formal Visa sticker placed in their passport. Implemented in 1998, the “Visa Waiver Program” (VWP) has allowed for visitors of several countries to come to America for tourism or business purposes for up to 90 days without getting a Visa put in their passport. During 2007, more than 15 million visitors from VWP countries arrived in the United States.As of January 12, 2009 America’s new ESTA program requires Visa Waiver Program visitors coming to the U.S. for tourist or business purposes via a plane or ship to “register” online before entering the United States to see if they pose a law enforcement or security risk to the U.S. ESTA is not required for land crossings. Officials are asking that the ESTA registration be done at least 72 hours prior to leaving, but theoretically it is possible to register at the last minute. An ESTA Travel Authorization is free, valid for 2 years, and valid for multiple entries.Here are some Frequently Asked Questions (FAQs) for ESTA Travel Authorization:What Countries Are in the Visa Waiver Program?Andorra, Austria, Australia, Belgium, Brunei, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Monaco, The Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, and the United Kingdom.Where Do I Apply for an ESTA Travel Authorization?A website, operated by the American government, is where you register for ESTA: esta.cbp.dhs.gov. The ESTA information you submit via the computer is compared with certain American law enforcement databases and then either approved or denied. Foreign travelers will not be able to submit ESTA applications at American airports after arriving or at a U.S. Embassy in their country.What if I Don’t Have Plans to Travel to the U.S. Yet?VWP travelers are not required to have specific plans to travel to the United States before they apply for an ESTA Travel Authorization. As soon as VWP travelers begin to plan a trip to visit the U.S., they are encouraged to apply for travel authorization through the ESTA website. Applicants are not required to update their destination addresses or itineraries if they change after their ESTA Travel Authorization has been granted.Does the ESTA Travel Authorization Guarantee Entry to the U.S.?An ESTA Travel Authorization only authorizes a traveler to board an airline or ship for travel to the U.S. under the Visa Waiver Program. After they arrive, travelers who obtained an ESTA Travel Authorization may still be denied entry (also called “admission”) at a U.S. port of entry, such as an American airport. An approved ESTA is not a guarantee of admissibility at an American airport. In all cases, the American airport officers make the final determination whether a foreign traveler can enter the U.S. or not. You still have to establish to the satisfaction of the inspecting officer that you are entitled to be admitted to the U.S. under the Visa Waiver Program.Can I Change My Travel Itinerary?It is possible to change an itinerary on an existing ESTA Travel Authorization; ESTA is designed so that you can update parts of it at any time. Travelers who did not get an ESTA approval may be denied boarding by the airlines, experience delayed processing, or be denied admission to the U.S. at the American airport.What If I Already Have a Valid B1/B2 Visitor Visa?While the ESTA Travel Authorization is completed online with no interview, there are Visas that require a U.S. Embassy interview. The Visa process has separate procedures, which generally require an appointment, travel to a U.S. Embassy, an interview with a Consular Officer, processing time, and the payment of an application fee. If a foreign national already went to the U.S. Embassy and has a valid B1/B2 Visitor Visa pasted in their passport it is not necessary to get an ESTA Travel Authorization because the traveler will be entering with a B1/B2 Visitor Visa and not through the Visa Waiver Program. Keep in mind that an approved ESTA Travel Authorization is not a Visa.Can I Re-Apply for an ESTA Travel Authorization if Denied?Yes, but you must wait at least 10 days to reapply and your circumstances must have changed. Unless there is a change in a substantive fact, re-application will not change the result. Keep in mind that applying for an ESTA Travel Authorization with false information can cause a foreign national to be permanently barred from ever entering America. The ESTA system is designed to try to prevent individuals from changing and manipulating an ESTA entry until they receive an approval.What If I am Denied an ESTA Travel Authorization and Have No Changed Circumstances?There are three types of responses to an ESTA application; approved, pending or travel not authorized (denied). Applicants who receive a “pending” response are advised to check the website 72 hours later. Applicants who are denied will be required to go to a U.S. Embassy to apply for a formal nonimmigrant visa, such as a B1/B2 Visa, which may take months.Can a Traveler Find Out the Reason Why an ESTA Application was Denied?The U.S. Dept. of Homeland Security has stated that travelers may contact the DHS Travel Redress Inquiry Program (DHS TRIP at dhs.gov) but there are no guarantees that information about a denial will be divulged. U.S. Embassies and Consulates are not required to provide details about an ESTA denial nor resolve the issue that caused the ESTA denial.What If I Have a Criminal Record?Only those qualified to travel under the VWP are eligible to pre-register through ESTA. Persons who have been arrested and/or convicted are generally not eligible for VWP and probably require a formal Visa, such as a B1/B2 Visa, to travel to America. If a foreign national has received tickets for speeding (which don’t usually result in an arrest or conviction) they are probably still eligible for the VWP and ESTA. If a foreign traveler has been denied entry into or deported from the U.S., they require a formal Visa.Do Any Other Countries Have a Similar Program?Australia has a program called the Electronic Travel Authority (ETA) that mandates travelers to submit an ETA application electronically through a website requesting permission to travel to Australia. Airlines may refuse to accept passengers who do not have either an approved ETA or Visa to enter Australia.How Long Will the ESTA Application Data be Stored? Who Can Access It?The ESTA Travel Authorization is valid for two years or until the traveler’s passport expires, whichever comes first. The American government will maintain the information for at least 15 years to allow retrieval of the information for law enforcement, national security, or investigatory purposes. Information submitted through ESTA can also be shared with any U.S. government organization.What Information Does the Airlines Get?Airlines will receive confirmation of a passenger’s ESTA status visa the “Advance Passenger Information System” (APIS) which shows whether the ESTA authorization has been granted for a Visa Waiver Program traveler. It is recommended that the traveler print out the ESTA application approval in order to maintain a record of their ESTA application number and to have confirmation of their ESTA status.What About Children?Accompanied and unaccompanied children, regardless of age, are required to obtain an independent ESTA Travel Authorization.What if a Mistake was Made on the ESTA Application?The ESTA website will ask applicants to review their application before submitting it. Also, there is an update function for certain information such as email address, telephone number, or flight information. If an applicant makes a mistake that cannot be “updated,” he will need to submit a new ESTA application.What if I Only Have a Connecting Flight Through the U.S.?Visa Waiver Program visitors who have a connecting flight in the U.S. are required to either have ESTA Travel Authorization or a Visa from a U.S. Embassy in their passport to travel through the U.S. even for a one hour stop. If a traveler is only planning to stop in the U.S. en route to another country, the traveler should enter the words “In Transit” and his final destination in the address lines under the heading “Address While In The United States” on the ESTA application.What Are the Questions on the ESTA Travel Authorization Application?The traveler must provide (in English) biographical data including name, birth date, country of citizenship, country of residence, email address, sex, telephone number, passport information, destination address in the U.S., travel information (round trip airline ticket, flight number and city where you are boarding) as well as questions regarding communicable diseases (chancroid, gonorrhea, granuloma inquinale, HIV, leprosy, lymphogranuloma venereum, syphilis [active], tuberculosis [active], and others), physical or mental disorders, drug addiction problems, arrests, convictions, past history of visa cancellation or denial, and prior deportations from the U.S. The traveler will also be asked whether they are seeking work in the U.S., have ever been deported or tried to get a visa by fraud or misrepresentation. The traveler will be asked if they have ever detained a child of a U.S. Citizen granted custody of the child, and whether they have ever asserted immunity from prosecution.Do I Select “Business” or “Pleasure (Tourist) at the Airport Port of Entry?After the ESTA Travel Authorization is granted, the foreign traveler will be interviewed by government officers at the first American airport they land. The officer will ask what the foreign traveler will be doing in America and the questioning can take up to four hours in a detained setting called “secondary inspection.” The officer may ask the traveler “what else are you doing in America?” repeatedly to try to get “the real” answer. If the traveler is only going to be a tourist, they are not allowed to do any business, including meeting with any attorneys, applying for a bank account, meeting with real estate agents, or other business consulting activities. Even though the traveler is going to conduct just one business meeting while in America, they are required to report it and enter as a business visitor. The business visitor is allowed to participate in tourist activities, but the tourist visitor is not allowed to participate in any business activities. Therefore, if any business might be conducted while in America, it is best to tell the government officers about it at the airport to avoid being accused of lying, put immediately on a plane back to your home country, and barred from America for life.What Else Do Can the Airport Officers Make Me Prove After I Land?The airport officers will ask the traveler proof of a foreign residence (address on foreign driver’s license), whether their intention is to depart at the end of the visit (round trip airline ticket), whether the traveler has a job (letter, paystub, business card) and family in their home country, (marriage certificate, childrens’ birth certificates), and whether the traveler has the money to travel around America (bank statement or credit cards with bank letter showing credit limit). The airport officers are also required to ask where the traveler will stay in America (hotel reservations or friends/relatives’ homes) and have been known to pick up the phone to verify all of the aforementioned information.Can I Be Searched in the American Airport? Am I Entitled to Legal Representation?While being interviewed at the American airport, all luggage (even locked bags) can be searched, as well as the traveler’s body and his/her cell phone (including text messages and phone numbers) and laptop (including hard drive). The officers may “google” a traveler’s name and check out their myspace, Facebook or hyves pages. The traveler is not allowed to be represented by an attorney or even call their attorney while in “secondary inspection.” Bathroom visits, water and food may be limited, so it is best to prepare for such an occasion while still on the plane before landing.Do I Still Have to Go Through the “US-VISIT” Program at the American Airport?Foreign travelers arriving at American airports and seaports must still be photographed and fingerprinted every time they enter the U.S.Who Should I Ask For Help to Fill Out the ESTA Application?The information a traveler provides on the ESTA application can remain in their file with U.S. authorities for a minimum of 15 years – probably longer. If a foreign traveler has some questions about how to answer the questions so as not to be permanently barred from America, it would be prudent to them to pay for a legal consultation with an American Immigration Attorney who is a member of the American Immigration Lawyers Association (AILA). Beware of unauthorized private websites that offer ESTA application assistance for $49.99 – they are usually not authorized to practice immigration law and are asking travelers to pay for a copy of the application questions, which are free on the dhs.gov website.If I Am Denied the ESTA Travel Authorization Will it Effect My Ability to Obtain a Visa at the U.S. Embassy?When the ESTA Travel Authorization is denied, the foreign traveler must make an appointment at a U.S. Embassy in their country to apply for a formal Visa. The U.S. Embassy is operated by the U.S. Department of State and there are no expedited procedures for those who have been denied ESTA Travel Authorization. Because the ESTA program is so new, it is impossible to predict how badly a denial of the ESTA Travel Authorization will impact a traveler’s application for a Visa at a U.S. Embassy or impact their future travel to America in general. American Immigration Attorneys are in close contact with their foreign clients and will share the denial information with each other starting in January 2009. Currently there are no government policies regulating this area of the law, or opportunities to appeal a denial.When Is the a “New” ESTA Travel Authorization Required?A new ESTA Travel Authorization is required during the two years if (1) the traveler is issued a new passport (2) the traveler changes his name (3) the traveler changes his or her gender (4) the traveler’s country of citizenship changes or (5) the circumstances underlying the traveler’s previous responses to any of the ESTA application questions requiring a “yes” or “no” response have changed (such as a new arrest).Can an American Immigration Attorney, Travel Agent or Employer Fill Out the ESTA Application?A third party, such as a relative, travel agent or American Immigration Attorney, is permitted to submit an ESTA application on behalf of a VWP traveler. Be aware that the traveler is still responsible under the law for the answers submitted on his or her behalf by a third party.Over 68,000 travelers have already voluntarily registered by using the ESTA online system in the last few months. Applicants are reminded to obtain a new “e-passport” which has an integrated computer chip capable of storing biographic information from the data page, as well as other biometric information, when registering with ESTA.