A person seeking financial aid for business purposes may be overwhelmed by the options available for finance providers. It is natural for one to want time to choose the best amongst all the options because after all it is your business in question and you would want the best for it. Through this article I would like to assist you by helping you choose the best financing option which suits your financial goals the maximum. I have succeeded in categorizing the major financial lenders as
Once the categories have been identified the next step is to decide which of these suits your needs. I will discuss each of these two separately and will list out the conditions which make them best for opting.
1. Banks:
- One of the important criteria that banks look out for in a loan application is a good credit score. So if you are in possession of a credit score of about 720 or higher then you stand a good chance of getting you loan application approved.
- Also, banks are not comfortable in funding fresh new setups and ease out a bit if your business has been running for about 2-3 years. The uncertainty of the business to last which lingers off behind new setups act as the biggest deterrent for banking institutions.
- Since the process of getting your application approved and passed leading to the actual disbursement of funds is a long process therefore bank loans suits those who are not in immediate need for funds and can afford to wait for some time.
2. Business cash advance lenders:
- A merchant business thriving on regular credit card transactions is the best situation to work for merchants lending cash advances.
- Since credit history is not taken into consideration here therefore individuals with a bad credit history can approach these lenders for financing.
- Also, if banks have rejected your loan applications then approaching a merchant for business cash advances is the next expected step by the borrower.
- With a small application and review process, this option provides access to quick money therefore it is suited for all those businessmen looking out for urgent financial aid.
Tags: business cash advances, business loans, how to choose best loan option
There is no doubt in accepting the fact that credit cards have made life a lot more simpler, convenient and hassle free in comparison to the times when one had to roam around carrying bundles of currency notes. With moving times and increasing expectancies the credit cards are now coming packed with incredible offers and schemes aimed to provide you the best services. Therefore in such times it becomes necessary to learn and understand the procedures and tips which can help one in deriving maximum benefits from these plastic cash options.
- I would say the first and foremost way is to ensure that one maintains a good healthy credit rating by paying all dues and monthly installments on time. This can be insured by staying within your credit limits and not using too many cards at the same time to make payments. The credit score is important as it gives your future potential lenders an idea as to if you are in a position to repay the loan that you desire to avail at any point of time.
- The use of credit card as means of payment for big purchases gives the owner the opportunity to stop payment for the purchased good if it turns out to be defective or damaged. The customer can avail this right under the provision of the Fair Credit Billing Act. If your initial trials to sort out the matter with the goods dealer fails to work out then the credit card company can intervene and if it finds your claim justified then it can go ahead and the block payment for the goods on your behalf.
- Using credit cards for online purchases too is a safer option due to the various facilities and protections provided for the same under the Fair Credit Billing Act. One can avail the use of the ‘one time use’ account number provided by many credit card companies to carry out online purchases. These accounts provide the user the security it desires for online transactions.
- One also has the option of using the credit card as a mean to obtain low interest loans. Free from most of the application hassles these fixed rate loans offered on your credit card are at time better than those given by banks.
- Transactions made on credit cards can be converted to easy equated monthly installments - EMI
Tags: credit card tips, credit cards, credit score, online credit cards
Turmoil conditions affecting the equity markets has left everyone running for cover. The once sworn upon blue chip companies have lost their sheen and are now hovering near their all time low levels which has also eroded the value of investments. I classify an investor as a smart investor who knows the right time to select the right investment option. Even times as these when the markets are at their all time low there is opportunity lurking in every nook and corner to make some quick profit. The list of once existing trusty and ever profit bearing companies is now burned to its ashes. So where should one invest now?
The answer lies in the under performing industries which in recent times have started realizing their potential and value. With these industries the bottoms up approach is used to carry out the scrutiny and filtration process to decide the ones worth investing in. The foremost step after obtaining the list of selected probable’s would be to uncover and understand their relative strengths in their core fields. Various modes can be utilized to carry out this valuation like comparing the stock price with the companies earning or studying the relation between the price to its book value. In my personal opinion calculating the value to price ratio would be the best to enable a comprehensive overall picture of the health of the company. This ratio would help us to evaluate the company’s earnings, long term growth rates, interest rates and the overall risk involved with the company.
These parameters hold high importance as they give us the complete view of the company’s core fundamentals. Once this process lets us segregate industries of our interest the next step according to me would be to evaluate the quality of its management. Since at the end of the day the company is managed by decisions made by its management it is their competence which takes on utter importance. The market has plenty of such options which fit these mentioned categories. The market might look saturated by overvalued sectors but personally I agree that it is only certain sectors of real estate investment which are highly overvalued while the others provide ample investing opportunities. The only necessity is to look out for them.
Tags: industries, investment tips, Investments, underperforming stocks, which stocks to invest
The brand new pair of hot wheels that you have been eying since long but could not even dream of buying it because of its price can soon be snuggling in your garage! Yes, it is now incredibly easy to buy a car by availing the facility of auto loans which I am now going to discuss. The loan amount that one can avail from these auto loans depends on the price of the car and the down payment that the borrower can give in return to the loan. The down payment done by you has a significant impact on the rate of interest you will be charged.
The larger the down payment the smaller will be the rate charged and vice versa. But with good options in the repayment schedule available with the borrower the process of paying back the auto loan does not become all that tedious. The borrower can either opt for a short term scheme where the charges are a little on the higher side but if planned and scheduled properly one can pay it all off in the stipulated time period of the provided 3-5 years. The other scheme available is that of a long term scheme. Here the charges too are a little balanced and the repayment time too is stretched till up to 10-20 years. Choosing one of these auto loan schemes would be a purely personal decision. I would say a decision based on the individuals personal financial health, his financial goals and repayment capacity. Since these auto loans are secured loans where in the car being bought is treated as the collateral the borrower must be very sure of his repayment capacity lest he ends ups losing his car! To avail this auto loan facility the borrower is required to fulfill certain parameters:
- He ought to be a full time employee drawing a fixed salary,
- He should have a functional bank account details of which have to be furnished by him to the loaning authorities.
- Should have his documents in place with all the criteria’s filled being correct and genuine.
These auto loans are offered by banks, individual lenders as well as can be found online. I would suggest the borrower to carry out a detailed scrutiny of all the rates quoted by lenders and then zeroing on the best suited rate. Once the lender approves of all the documents and the borrower is through with all the preliminary requirements then the lender transfers the money to the borrower’s bank account which is now available for him to fund his dream machine!
Tags: auto loans, car loans
In an act of complete desperation, the US Federal Reserve department announced its decision to step in and come to the rescue of the bleeding insurance giant American International Inc. My personal opinion on this move is that by this step by the US Fed has lost whatever credibility it had earned by taking the hard stance a few days back by denying intervening to bail out Lehman Brothers. Seen as a measure to bring in a sense of calmness and respite after the turbulent days that the global market has witnessed the US Fed will be lending $US 85 billion to AIG to take stock and come out of its financial crisis.
This move has surely put the spotlight on the Federal department pertaining on its selection criteria for companies it plans to bail out. I would like to point out that in recent times the US Fed had intervened and bailed out various big names including the likes of JP Morgan, Freddie Mac and Fannie Mae and the Federal Housing society. By refusing aid to Lehman Brothers it had seemed like they had drawn the line in lieu of the help they could offer but this recent bailout of AIG has washed it all off. With the taxpayers presently on the hook for coughing out more than $US 900 billion it looks as if the present US economical situation seems to point out towards the time where the profits are privatized and the losses socialized. But when viewed in bright light it looks to me as if this act by the Feds was critically important to calm the concerns ruling the global market because if AIG had collapsed the repercussions would have been felt in thousands of countries world over and would have caused complete chaos in the world market of credit default swaps where it holds an important and a strategic position.
This agreement confirms the US government an equity stake of 79.9% of AIG. This 24 month line of credit to AIG comes along with an interest rate which is equivalent to the London inter-bank rate plus 850 additional base points. I would also like to add here that in lieu of the agreement the loan will be collateralized by taking in all the assets of AIG and also those from its primary non-regulated subsidiaries. The loan will facilitate AIG in selling off some of its businesses in an orderly manner without causing major disruptions to the overall economy. The proceeds from this sale will be used by AIG in repaying back the loan to the ES Federal Department.
Tags: aig
The world today is brimming with incredible business ideas all having the potential of being converted into successful business set-ups. The only major hurdle which can come in between you and your success is your poor credit history. A bad credit history has the potential of marring one’s idea of success completely and which I think is completely unjustified. And to my mighty relief I did find options present in the market which can help relieve the financial pressure off the shoulders of the aspiring entrepreneurs.
A bad credit history is the result of past unpaid loans and dues which have an effect on his personal credit history. Banks and other lending institutions generally refrain from providing financial assistance to an application having a bad credit history. But now assistance is provided to such cases in the form of bad credit business loans. I have divided this category of loans in the following 3 parts for easy understanding and ease.
- Collateral based loans: If the borrower provides the lender with some sort of collateral or asset in the form of security then the loan is called a secured bad credit business loan while if there is no deposition of any collateral or asset then the loan is categorized as an unsecured bad credit business loan. In my opinion a secured loan is a good option both for the lender as well as the borrower as it safeguards the lender by providing him the collateral and at the same time the rate of interest charged on the loaned amount is less thereby benefiting the borrower.
- Equipment leasing: A business owner has the option of approaching any equipment leasing company and can take the required equipment needed for his business in lease. In this type of bad credit business loan the equipment is bought by the leasing company but allows the business man to use it for his use against a monthly charge. Here I want to point out that the equipment leased is considered the collateral which the leasing company can take back if the business owner fails to pay the monthly lease charges.
- Business cash advance: A business cash advance is a type of bad credit business loan where money is provided to the borrower in the form of a purchase in advance for the businesses’ future expected card sales. The repayment mode in this type of bad credit business loan is based on the credit card sales that the business is expected to make once it starts its operations. I consider this option to be very beneficial as it not only provides financial relief but at the same time does so without the need of depositing any collateral nor requires the borrower to make any monthly installments.
Tags: bad credit, business loans, cash advance, equipment leasing
With the loan market brimming to top with various kinds of loan options and offers to lure customers, it becomes very difficult to select the best option amongst these all. There are various criteria’s which must be kept in mind and pondered upon while making the final decision. The individual’s own personal needs, his financial goals, his credit state and purpose of loan are some of the things which one has to think of when he goes on to decide the best loan option for himself. An exhaustive study of the lender, its rating and scrutiny of its past history will definitely help you in getting a clear picture about him and in turn will instill confidence in you regarding the genuineness of the lender. Comparing the pro’s and con’s of various loan options available is the next step. This would help you in isolating and pin pointing out the best loan option which suits your financial needs. In the midst of a huge sea of loan options the most important ones are as follows:
- Secured and Unsecured Loans: A secured loan comes with low rates of interest but it also makes you to offer some asset as collateral in return of the loaned amount. The value of the collateral depends on the amount desired as loan. People unsure of their repayment schedule should not opt for this scheme as they might end up loosing the deposited collateral. In the case of unsecured loans the interest rates are a bit on the higher side but at the same time it is free’s one from depositing any asset as a collateral. This loan is mostly taken by people having a bad credit history.
- Payday loans: A payday loan is the easiest way of getting access to quick cash to take care of emergency financial needs. This loan is effectively taken against your expected next paycheck and the process of applying for it is simple, hassle free and quick. The drawbacks of this kind of loan are that the amount which can be loaned here is quite small and limited and the rates of interest charged are on the steeper side.
- Credit card cash advance: Catching up quickly with the other kind of loans is this relatively new entrant-Credit card cash advance. This loan scheme does not need a good credit history and allows anyone with a credit card to have access to availing this loan. A credit card cash advance in simple terms allows you to have access to an amount as a loan which is a percentage to your allowed credit limit on your credit card. This cash advance scheme too is best suited for emergencies but at the same time comes with high interest rates and APR which can vary depending upon which company’s credit card you use.
If opting for a loan is the last option available to you then takes time to study the market and then choose wisely and sensibly.
Tags: Credit card cash advance, factors for taking loan, how to choose from various loan options, payday loans, secured loans, unsecured loans
In times as recent as last week, the shares of Lehman Brothers ( one of the largest investment banking entity) nosedived almost 77% to reach levels which posted its biggest ever loss in its 158 year investment history. In wake of Lehman’s acquisition by another firm leading to its loss of independent identity the list of potential losers is huge. Topping the list are the employees of Lehman Brothers. The last count of these employees’s stood at a mammoth figure of 25K. 30% of the companies stocks are owned by its own staff members who now have a sad story to share. The recent turmoil in Lehman has resulted in a severe shrinkage of wealth of its staff members and the loss is being pegged at $15 billion of the total net worth of shares owned by its staff members.
Now this loss of personal wealth is further aggravated by the prospect of them losing their jobs as well. The news is equally grim for its horde of other shareholders. Anticipating a rebound in the economy in the near future propelled many of Lehman’s big investors to double their stakes. Amongst the list of its famous shareholders suffering huge losses now is Lehman’s number one share holder Alliance Brenstein LP hailing from New York who increased its stake by a huge 43% this year to reach 65.7 million shares. Even seasoned hedge fund managers of the likes of George Soros have not been spared from bearing the brunt. George doubled the size of his firm’s stake in Lehman Brothers to reach 9 million in the 3 month period ending 30th June. The damage does not end here and goes on to take a more vicious turn. Standing on the brink of suffering huge losses are the privately negotiated derivative contracts in tune of almost $44 billion signed by customers with Lehman who now only has $28 billion with him to offer in return.
But one’s misery is often the source of another’s joy. Travelling on same lines here are the other investment firms and individuals who hope to draw out maximum benefit from Lehman’s messy situation. The revenue of almost $59 billion posted by Lehman Brother’s last year will be up for grabs by these competitors with Morgan Stanley, Goldman Sachs and Merrill Lynch taking in the lion’s share. Also up for grabs will be the best parts of Lehman and will be eyed constantly by major investors or group of investors in wait for acquiring it at throw away prices.
Tags: Alliance Brenstein LP, George Soros, investment banking, lehman brothers, Lehman’s acquisition, share price of lehman borthers
Bank of America, the second largest bank in America in accordance to its asset size in a major development is all set to buy Merrill Lynch in a deal that has valued Merrill Lynch at a figure of US$ 29 per share. This deal has valued Merrill at US$ 44 billion which is almost half of the value that the investment firm was worth when it was at its peak performance last year. Through this deal Bank of America has added another feather to its hat which has lately been on a major acquisition drive. This particular corporate combination deal is been seen with much hope to find respite from the ongoing credit crisis. The bank was interested in this investment firm since long and was also speculated of showing interest in the investment firm of Lehman Brothers too. But the absence of a guarantee or a propped funding option on behalf of the US Federal regulators keeping in mind the risky state of assets Lehman Brothers has reached; the bank finally decided to pull back and not continue further with the Lehman option.
In other news, what is speculated to be fallout to this corporate inking, in the presence of limited options, Lehman Brothers have confirmed their intentions of filing for Bankruptcy. This filing will be carried out by the holding company without involving any of its several subsidiaries. Meanwhile the firm is still supposed to be on a look out for a deal regarding the sale of its broker-dealer operations as well as the sale options for its asset management unit. Lehman’s meltdown will mark the biggest implosion to hit the investment banking sector in nearly two decades and will take away nearly 25 thousand jobs in its fold. The US Securities and Exchange commission has given hope that it will work hard towards providing extensive protection to the customers of Lehman Brothers and will do whatever it can to minimize the impact or blow of this development on the customers of the company. These developments regarding Merrill and Lehman come only 6 months after JP Morgan was taken over by Bear Stearns. All these moves go on to suggest the volatile credit times hitting the investment sector at this point of time. The lack of confidence awakened by the financial crisis has lead to a drying up of liquidity which in turn has resulted in increasing borrowing costs and a subsequent tighter credit environment.
Tags: Bank of America, bankruptcy, lehman brothers, merger and acquisitions, Merrill Lynch
The worst scenario which everyone dreads to be in is the one where you get entangled in a bad debt situation and have to think of ways to repay the debt and somehow find a way to come out of it. A personal loan meant for individuals with bad credit comes as a sigh of relief as these loans do not require many approvals and can be approved in a short span of time. These personal loans can aid immensely those people having a bad credit history and are unable to obtain bad credit loans, to their name by serving two important purposes:
1. By making use of this personal loan, you have the opportunity to wipe clean your other debts. Be providing various benefits like those of debt consolidation such personal loans helping the individual to unify all his debts and then pay them off together in equated monthly installments (EMIs). These consolidated loans also provide the benefit of providing a lower rate of interest by subsequently increasing the repayment tenure thereby do not result in over burdening your pockets too.
2. The other benefit that these personal loans provide to people with bad credit is the opportunity to better their credit record. Since by availing this personal loan you are able to restart and regularly maintain your monthly installments meant to clear your debts, you actually land up with a good credit score. Your efforts to timely pay your installments are regularly recorded in your credit report and at the end shows the effort you have put in towards the betterment of your credit score card.
These personal loans when combined with a security to make them secured loans make the deal less risk free for the lender. The only major drawback of these bad credit loans are its high charges. Since the risks involved with this genre of borrowers s high therefore the lenders lend money at high rates. The only sensible solution here is to compare all the rates available in the market and then opt for a secured personal loan. The collateral in the form of the asset deposited by the borrower ensures the repayment of the loan to the lender. A secured personal loan hence provides you with the opportunity to get financial aid at lower interest rates in comparison to the rates charged from an unsecured personal loan. It should be mentioned that secured personal loans do come with the risk of possession of collateral by the lender in absence of regular repayments by the borrower. The safest and best approach in such scenarios for people with bad credit should be to opt for secured personal loans and then maintain a regular flawless pattern in its repayment schedule.
Tags: bad credit loans, bad debt personal loans, credit record, Debt consolidation, monthly installments, personal loans, secured personal loans