Some Tips On How To Finance Your Business Venture

One of the best things about being human is that you can make the choice to be involved in a business to increase your income. There is no limit as to the type of businesses you can be involved in and you are free to venture into any field provided you meet the requirements of the said field. In addition, you do not have to quit your regular job as you can always employ someone to handle your business for you. The most important thing that you have to consider is the capital for the venture.

Here are some ideas on how to raise the money.

1. Doing a partnership

This is one of the oldest ways to raise capital for any business. Long before the laws of partnerships were drawn, individuals would make an agreement and start a business together. The most common agreements were those that gave the partners equal ownership of the business. This meant that they both contributed the same amount of money from the start. However, as time passed on, the type of agreements changed and one could contribute according to their strength financially. If you are having a hard time getting the cash to start on your own, you can enter into a partnership with someone you trust and this will make the starting easier.

2. Selling some personal stuff

If you are not one to enter into partnerships, you can consider selling some stuff that you no longer need to raise the money. You might be shocked to learn that you have so much junk in your basement and bank yard that adds no value to you but would be valuable to someone else. If this is the case, you can spend a weekend indoors as you select all that you consider and make plans on how to sell it. Getting buyers is not a hard thing as you can always research online. It is important to mention that should find that most of the things you want to sell are in good condition, selling them by auction would be the best option. To get the best prices, clean and repair them and have a moderately good opening price for the auction and you will find yourself with some good cash at the end of the auction.

3. Saving from your salary

This is another option that you can use if you feel that you have the ability to arrive at the needed capital figure within a year. You can opt to cut down on all unnecessary spending and save as much as you can. To achieve this, you will need to have a plan so as to have a target. Once you have a list of what you are to do and what you are to avoid, stick to it. Be aware that this options demands that you have a lot of self-discipline for it to work. It helps to have a savings account with strict withdrawing restrictions to make sure the money stays in the account.

4. Getting a loan

Loans have been used since time immemorial by those who want to start businesses but have not the funds. There are many lending institutions that give the loans and all one has to do is identify one and begin the process. In most cases, the loans will vary in terms and conditions. You will find that secured loans have their own terms and conditions which is the same case with the unsecured loans. As you get the loan, make sure that the institution is credible enough to avoid being duped.

Nicasio is a financial consultant and is widely knowledgeable on all matter finance. He has helped many California personal loans applicants through his timeless advice that is available on his blog. He also lectures college students in the field of business entrepreneurship.

Financing a car loan effectively - 5 tips to point you to the right direction

When it comes to buying a car, the most automatic thought that runs through every potential buyer is how to get the cheapest price on the car that they want to have. When looking to buy a car and thereby secure a comfortable payment plan, it is important to consider that the entire venture should not cause significant damage to the buyer's general upkeep.

There are certain considerations that can go a long way in obtaining the best car deal.

1. Source independently

One of the common approaches to buying a car is that people tend to look for both the vehicle and the loan financier all under the same roof. This is not always prudent because there is a tendency to get cornered into a certain deal that may result in unfriendly monthly payments. It is best to source for the financier independently and seek to have a variety to compare among before settling on the best fit. These could vary from banks and credit unions to even well acclaimed online lenders.

2. Reverse the order

Another approach that is often taken is that people tend to seek for the car before finalizing how they are going to pay for it in the first place! To avoid placing the cart before the horse, the primary action should be seeking to get the car loan applications underway before beginning the task of negotiating with the car dealer. In some instances, there could be the proposed advantage of going to the car dealer with a blank cheque from the financier and once the deal is sealed, the buyer is able to access the financing they need to own the car.

3. Think holistically

It is important to consider more than just the monthly payments that will be incurred when buying the car; many times people let the amount they will be milked monthly be the main focus as they juggle between deals. This may not always be the best approach when seeking financing because the lower the monthly rate, the greater the extension on the repayment period.

Therefore an individual will have to drive the vehicle for a longer period of time before considering selling it. This is usually the catch for many lenders as it guarantees them returns on interest paid for a longer period of time.

4. Catch the disclaimer

If there is one trap that many buyers often fall into, it is missing out on the fine print. In a moment of excitement, they seek to sign and commit to an agreement that they have not fully understood. It is always wise to postpone or delay the signing until the document can be well studied, and preferably by engaging the services of a lawyer.
Given the nature of the contract and how binding the implications are, it is important to make a well informed decision. There are several things to take into account like default payment penalties and even binding attribution that may strip the buyer of the right to address any dissatisfaction in court.

5. Know your partner

In real sense, by entering into a financial agreement with the financier, the resultant association is actually a partnership. There is therefore great need to know as much as possible before entering into the agreement. From looking them up in court records to reviews on line on their services, any avenue that can provide the information should be explored fully.

Rarely do the car buyers think past the wonderful idea of owning a vehicle, to the kind of payment plan they might have in place to secure the vehicle. This is why it is important when they go shopping, they settling not for the payment option that is proposed by the seller, which may or may not be in the buyer's best financial interests, but for their well researched and thought out financial approach to the buy.

Advantages and Disadvantages to an IVA

Image Source: flickr

The Individual Voluntary Agreement, or IVA, has just reached its twenty-fifth birthday, after being introduced in 1986 as a type of debt management solution. Available to people in England, Wales and Northern Ireland, IVAs can help debtors escape insolvency. They are designed to assist people with unaffordable, out-of-control debts by arranging a reduced monthly payment plan with creditors.

More details about IVAs

IVAs are legally binding, but they are generally considered to be a more attractive insolvency scheme than bankruptcy. If followed properly, IVAs can support you in clearing your unsecured debts by providing you with the opportunity to make lower monthly payments into the managed IVA scheme, for an agreed period of time, which is usually five years.

Provided that you stick to the arrangement, which typically means honouring a reduced-rate monthly repayment plan, the remainder of the original debt will be written off at the end of the term and you'll be free from unsecured debt. The scheme is designed to assist people who owe significant levels of unsecured debt to a number of lenders who they cannot afford to repay. It's essential that you are still able to meet the new, reduced payments each month and commit to the scheme for five years. The agreement is legally binding and will be managed by an insolvency practitioner.

What are the benefits of an IVA?

There are several key benefits. An IVA can freeze the interest on your debts, which can otherwise mount up. It also protects you from further action or legal intervention from your lenders. This can greatly relieve pressure. It also allows you to avoid experiencing some of the more challenging aspects of bankruptcy, which can include the repossession of your property. It also means that you have a clear date for becoming debt free, which is usually a five-year period and you only need to deal with one scheme and one IVA company, rather than an array of lenders.

Are there downsides to an IVA?

With all insolvency schemes there are important points to consider. First, you may find that you're obliged to release equity from your property in month 54 of the IVA arrangement. You will also be prevented from taking out additional credit during the IVA period. You'll be forced to enter bankruptcy if you fail to adhere to the agreed conditions and terms of the arrangement, in which case your IVA will fail. Your IVA will also stay on your credit record for a year after it has finished, which can make it difficult for you to obtain credit.

If you feel that this scheme is appropriate for your requirements, you can find a company who provide IVAs pretty easily, as there are plenty of online and high-street firms offering such services. It's worth asking at your citizen's advice bureau for advice before entering into an IVA.

What next?

As with any kind of debt solution, it's essential that you get advice that is relevant to your situation. Speak to a qualified debt adviser and find out whether you meet the terms and conditions of the scheme. Check too that you understand the full implications of taking out an IVA and seek a reputable organisation with good feedback to manage the scheme for you.

Written by writer of a company who provide IVA's.

Important Things You Need To Know About Manhattan Beach Mortgage Loans

Manhattan Beach is a beautiful city located in Los Angeles, California. The city is highly appealing and there might be no individual who would not like to have a home here. A home is the most valuable asset possessed by an individual and hence for purchasing, one requires to consider various factors. Most of the individuals do not have enough funds to pay for the property they are willing to purchase and here arises the need for taking a loan. It is the best way of raising funds in a short time period and paying it back in a long term as per the rules and regulations of the institute offering it. It is necessary to consult an experienced mortgage professional in order to get a mortgage that best meets your requirements.

There are various organizations that offer financial mortgages to the needy individuals but it is your duty to find a mortgage that meets your needs and requirements. Evaluating your long term goals is the best way of determining the type of loan required by you. Mortgage loans serve as an ideal tool for those who are looking forward to purchase a property in Manhattan Beach but are not able to do so due to lack of monetary resources.

Essentials of Mortgage Loan

The first necessary thing that you need to know is which type of loan suits you and how you can avail the same. The Manhattan Beach mortgage loans are offered to individuals who are willing to purchase a real estate property in Manhattan. These loans are provided at specific rates of interest and are to be paid back within a certain time period as decided by the financing company. A simple research will let you come across some of the best financial institutions and companies that offer this mortgage loan to the individuals at competitive interest rates.

Different companies offering this type of loan have different terms and conditions but the most common situation is that if the borrower is not able to pay back the loan amount within the estimated time, the lender then has the right to sell off your property. The property is kept as collateral against the loan and is sold in order to recover the funds in case the borrower is not able to pay it back.

Type of Mortgage Loan

The most common type of loan offered for purchasing a real estate property is fixed rate mortgage loan. As the name goes by, this type of loan is presented at a fixed rate of interest and is to be paid off within a fixed period. The monthly payable of the mortgage are fixed and are not altered until you pay the mortgage completely.

Essential Documents for Getting a Mortgage

In order to get a mortgage loan, you need to arrange all your necessary documents. Maintain all the required documents like income proof, your job, identity proof, bank accounts etc in order to avoid any kind of delay in the process. Consult a professional mortgage loan agent in order to get the best loan according to your needs and requirements. A good consultation not only lets you find a proper means to your wants but also saves you from any unnecessary hassles that may arise during the sanction process or your reimbursement ways.

All said than done, loan is such a thing that is sure to bring you more or less woes in your daily life. Irrespective of the type of loan you take, you must make a good and final estimate of the amount that you need to take loan for and better ask yourself whether you really need the loan badly or not.

Author: Hervey Allen is a loan advisor on real estate properties and he can direct you correctly on the suitable type of loan to meet your needs. May it be Manhattan Beach mortgage loans or any other type; you can always reach him through his blogs.

The many flavor of online loans

Getting a loan online is now easier than ever: there are many lenders offering instant approval, so that you can get the money in your account on the same day. However, there are also many risks associated with taking loans online. The first of them is that your personal data may fall into the wrong hands, and therefore you should always verify all the companies, before registering with them or sending them any applications. 

Understanding the Different Types of Lenders

One of the main advantages of searching for a loan online is that you can use more than the traditional brick and mortar bank as a lender. If your credit union has a good online presence, you can also apply there for a loan – and, even if credit unions were a bit slow to adjust to the digital age, things are starting to change, and many of them now provide online services.

Also, you can find peer to peer lending sites, where the investors are people just like you, who try to diversify their investment portfolio and make some profit by lending money to others. The procedures and requirements vary drastically from one lender to another. Even if you were rejected by many banks before, you may be able to obtain a good deal online, if you use your negotiation skills and you present a strong case for yourself.

How to Compare Online Loans

Most of the loans that you can obtain online are unsecured bad credit loans, allowing you to borrow small amounts for a short period of time, usually with a relatively high interest rates and quite pricey transaction fees. As such, it's not wise to abuse these loans, even if they're very accessible and easy to take, but remember they can also bury you in debt in no time, if you're not careful. (Of course, this doesn't apply if you're just using an online platform to access services provided by your bank, such as revolving credit lines or pre-approved loans.)

The competition among lenders is also high, which means they will try to grab your attention with a lot of advertising and hype. Avoid the temptation of borrowing too much, just because you found a good deal – there will be other good deals in the future as well, so only take what you need for the moment. Also, do not let yourself pressured into renewing your loan, if you don't need to.

When you compare loans from multiple vendors, always check the total amount to be repaid, which will give you a better view than comparing just the interest rates. Of course, interest rates matter as well, but, because these loans are for such short term, the closing fees and other associated costs can be much higher than the actual rates.

Take advantage of the possibility to compare loans and lenders with a couple of clicks, and select the best offer for your needs, taking all factors into account. Most of these loans have very high penalties for even one day of delay, so always take the appropriate measures to repay them on the due date, without failure.

Benefits of a Turnkey Development

A turnkey development is when the building contract includes all the finishing items. This would include fencing, landscaping, floor coverings, window coverings, wall painting, light fittings and more. The idea is to have the finished house handed over so it is ready to live in. Turnkey developments remove any input required by the owner once construction starts, as all the items and colours have been selected at the beginning, meaning you can get on with your own business and leave the building up to the builder.  This product allows you to take out one easy loan that will fund the land, construction, and all the finishing items.

The Details

A turnkey development is where the home is ready to move into the day the construction is completed. There are builders who specialize in turnkey packages, and you can rely on their extensive network of developers to bring you the very best opportunities in the market.  Because these builders work in volume, they receive discounts on the materials and labor that are used to construct the house, therefore making the package more affordable to you.

The Benefits

The greatest benefit is that the home is completely ready to move into, and everything in the home is brand new and in the colors you have chosen. When keys change hands, you just move in. If the turnkey property is an investment property, it is ready for tenants right away. This saves time and money, and also means you will not be spending money on maintenance in the near future. In addition new homes generally are more attractive for your future tenants and often get a premium on the rent.

Banks like turnkey properties. When it comes to the bank, approving the loan as a package with all items included reduces the amount of work required by the bank in approving the loan. Knowing that the property is ready to live in or rent as soon as constructed means the risk for the bank is reduced as the borrower does not have to find funds from another source to complete the project.

Investment

Turnkey developments are fantastic for the new property investor, as the whole project is efficient, and you will only have to deal with one contact for the development instead of scheduling meetings with designers, builders and councils. Investing in property in Western Australia is historically a strong investment as new housing is always welcome in the increasing population. Increasing your equity and your future wealth is a goal that most investors share, and a turnkey property development can take your investment plans into reality with ease.

Whether you are new to property investment or are an experienced property mogul; investing in a house and land turnkey property is sure to make your project easier and smoother to complete, from build to occupy. Perth duplex developer experts Ventura ID can help you get your property investment project off the ground.

Home Insurance and its Advantages

Insurance Companies are sprouting in the business industry nowadays. This just proves to show that the call for the insurances (future security) is getting louder and louder, which was indeed heard by many business owners. Indeed having a security over any property against other possible damages in the future is not just merely a fancy but a necessity because investments are rightfully protected. This is the reason why most businesses nowadays revolve around insurances, because they can see the different probabilities that might come their way in the battlefield of all odds.

Owning your own house is also yet, and probably the greatest investment you had ever made. Which would just then connote that protection of it is a thing that you should heavily consider. Home Insurance policy is the type of policy that would get you covered when your home happened to have experienced an unexpected loss. Such examples of these losses may be, thieves, calamities, Fire and many more. Your investments or properties might be covered when it comes to financial assets (when you really have a stable job), but it is indeed not secured from all other perks that might come your way. In fact, statistically, most people would purchase a home insurance policy because of the natural calamities that are occurring nowadays. Especially, in this generation that no one can truly predict when it will happen; even the safest thought geographic locations are not secured. Calamities like earthquakes, tsunamis, avalanches and many more are some of the unexpected situations that may occur. More and more of these occurrences are indeed showing up and they do not choose a certain place to attack. Therefore, true enough that these peoples' decisions in purchasing a home insurance is but a wise decision.

In addition, having a house is stressful but overwhelming. These types of emotions could not truly escape from the property holder at the first place. Thus, its security is nothing but also a protection from all the hassles the property owner has gone through just so he/she could provide himself/herself a house. Thus, in looking for insurance companies, a person must research about the company's credibility and reliability. Because of the various companies that are mushrooming in this industry, it is truly important to distinguish the ones that are dedicated in service, from the ones that are just there to get the money of the clients.

Don Bullard is one of the most known insurance companies there are. That not only they have been popular in this industry because of their number of years in experience, but because of their excellent customer care and services offered. True enough that Don Bullard Insurance Company (started in 1972) have grown over the years and their policies have gotten even better and client-friendly. They also render such services like combined policies which would give the clients the benefits in choosing their own insurance policies under one general policy. Minding not only the financial restrictions but also the preferences of the clients, Don Bullard is the company to be for ideal home insurances indeed.

About the author: Madeline Smith is a top-notch agent for a insurance company for 5 years. Insipred by  one of the  leading insurance company; Don Bullard Insurance; she help her clients narrow down their choices so it will be easy for them to pick the kind of insurance that suits them. 

Car Title Loans: Precautionary Measures that Lending Companies Make

Many people who experience financial difficulties turn to car title loans because of the fact that they can obtain instant cash even if a vast majority of lending programs do not allow them to. Despite this advantage, it should be remembered that the said loans are quite tricky and there are things that need to be considered before applying.

Since car title loans are short term financial tools, they have higher interest rates compared to conventional ones. Notwithstanding the said aspect, car title loans are exceptional financial options for those who need cover emergency expenses and other important matters.

Lending companies are legally permitted to charge appropriately high interest rates because they need to recover their investment. Such strategy is employed by a vast majority of lending institutions across the US, including Dallas loans companies and other reputable institutions.

Clients should rest assured though that as long as they choose reputable companies, the chances of losing their prized possession can be close to impossible. Other reasons why lending companies charge high rates are explained below.

Many companies require borrowers to settle their loan interests before paying up their principal loans. For this reason, those who will apply for car title loans need to have a stable source of income. Lending companies do not usually check the credit history of their borrowers but they make sure that they have stable sources of income.

Since lending companies shell out huge sums of money, they make sure that they make the necessary steps to make sure that their risk will not go to waste. In case borrowers fail to settle their loans, lenders are backed up by law to gain total possession of the car that is used as collateral.

Some companies even install GPS tracking equipment to cars that are used as collateral and even allow them to disable their engine from a remote location. However, companies such as Quick Cash Fundingdo not exercise such strategy and individuals who want to maintain their privacy should opt for their services.

When loan term is over, borrowers are mandated to settle the outstanding payable in one payment. If they cannot settle the whole amount, then interested individuals out to apply for other programs.

Conclusion

Car title loans are pretty complicated compared to other loans, but the advantages that they bring are immeasurable. Also, it should be remembered that losing one’s car through these loans is close to impossible as long as concrete repayment strategies are developed before applications are sent. Overall, car title loans are essential financial tools that should not be a cause of concern. 

Choosing Someone To Do Tax Preparation

For most people, the tax season is a headache-inducing time of the year. Aside from the tons of computation that one has to do, an individual would also have to make sure that they fill their forms properly and have the needed attachment in place. Although this might be of little concern to people who are extremely organized with their records, the same cannot be said for majority of the people. This is where the help of a tax preparer such as the Karliner Tax Services provider comes into play.

When seeking the help of a tax preparer, a person has to consider a number of factors in mind, one of which is the preparer’s qualifications. With the release of the recent guidelines from the IRS, one has to keep in mind that they should only get a preparer who has been issued a Preparer Tax Identification Number, or PTIN. It is also a good idea to consider only a tax preparer who is affiliated with a relative professional organization and who makes sure that he or she does continued education. The last one is particularly important, as the preparer has to be aware of the different updates in the guidelines when it comes to tax preparation.

Once an individual has made a shortlist of possible tax preparer to hire, experts such as the Karliner Tax Services recommend checking into the person’s history. If possible, one should get a tax preparer who has not had any negative records at the Better Business Bureau. Aside from this, one should also look into the person’s licensure status as well as the presence of any disciplinary action. This can easily be coordinated with the state board of accountancy as well as state associations.

Everyone should be wary of tax preparers who claim to be able to help people take home a larger amount of refund. In the same manner, people should also stay away from tax preparers who charge fees based on how much refund a person is able to get. Under no circumstance should a tax preparer have the refund deposited to his or her account as the whole refund should go directly to the person.

If possible, one should go for a tax preparer who makes use of electronic filing. Aside from being a sign that the tax preparer is someone who is trusted by many, the use of electronic filing also lessens the probability of errors caused by human intervention. Electronic filing has also been proven to be one of the most secure ways of processing tax returns. 

In order to ensure that the tax preparer is able to do a good job of filing the tax returns properly, the client concerned would have to make sure that the tax preparer has the entire document he or she needs. This would include receipts, pay stubs, and W-2. One has to be wary of tax preparers who are willing to push through with the filing even before the client has received his or her copy of the W-2.

About the author: Laura Hoover is a former tax advisor who now takes various home-based gigs such as tax computation and consultation. She is currently thinking of getting back into the industry and get a job at a tax servicing company like Karliner Tax Sevices. 

7 Crucial Aspects to Remember While Positioning Your Firm for Debt Financing

Few years ago, the only way to raise capital for your business was by visiting a bank and requesting for a loan. Today, on the other hand, times have changed with the massive explosion of equity investments. The changes are not limited to just that, as most of the guidelines followed for running an organization have also see a revolutionary change; having said that, these big changes are only meant for big organizations that have the power to accelerate their return earnings and investors hardly hesitate to invest in such organizations.

For the rest of the small businesses, medium sized businesses and even start ups, going the old school way is still the only choice. Even though it is often an expensive affair, many companies can’t help but seek loan from financial organizations.

By understanding what big financial organizations look for, you can prepare your business to be a much credible and attractive prospect.

1. Creditworthiness: Having a list of credit worthy customers can be a big asset. Remember, this is a very challenging task as you would be lending your money to a company, which could potentially never get a proper loan from a good financial organization. So you need to be doubly sure about what you are doing.

2. Taxes: You don’t want the government to be on the driver’s seat through a process like this. So pay the taxes on time to keep off any kind of government intervention. If the latter happens you would hardly be left with any collateral to back up your outstanding money to the business.

3. Applications: Every financial institution performs its due diligence in its own way following its own guidelines. Don’t be threatened; in fact make them feel as comfortable as you can. All the company wants to do is become comfortable with you before going ahead. So give all the information through the applications and be as transparent as you can.

4. Usage of Money: While it sounds very obvious to use the money for right purposes, it becomes quite relevant at times. Sometimes the financial companies are also inclined towards a particular kind of business because of the history they have with people working in that business. This is when raising capital for a start-up becomes a problem.

5. Be Courteous and Professional: This is extremely important. Answer their calls, give information as and when they want and show up when they request you to. This can be a game changer. You would be surprised to see how friendly these financial companies can get just with the help of good gesture.

6. Avoid Concentration: Don’t keep all your eggs in the same basket. You making a big sale to a customer and then sitting happy not trying to push further to other customers will land you in trouble. There are always chances of your original customer not willing to avail your service or product anymore for any reason. This could give you a big blow.

7. In-House Book Keeping: Many organizations choose to outsource book keeping work but having a competent in-house book keeper is a great asset as you would always be ready with your financial snapshots, which would further show your sophistication and competency.

The aforementioned points are broad guidelines and should be followed diligently to be able to appear competent as and when needed. Preparing your firm for debt financing may not be the easiest job but a lot of pressure goes off with an organized and planned approach.

Criss Derek is an investment banker who advises the business owners to streamline their billing and invoicing process, in order to improve cash-flow, and maximize profits.

Facts to Know About Binary Brokers

In the age of globalization where everyone is finding new ways of multiplying their money the trading industry is obviously not very far away from this competitive market. There are different ways in which the people are investing money but things have become less tedious and hence they are going for binary options trading, an online way of multiplying money in the trading industry. Here comes the role of brokers.

The Need of A Binary Broker

It must be remembered that since financial status and monetary issues in the trading industry is always fluctuating one always needs to have a great experience, knowledge and intellect to handle decisions under its purview. That is why it is often said that those who do not have a hardcore business mindset and experience should not put their hands into it amateurishly.

But it is also true that even experienced people may fail in this platform as it is a huge domain when it comes to the trading industry where the chances of getting lost is more. Binary trading option is that platform that can create this confusion as it is often called all-or-nothing options. For instance utilizing a binary option, you are investing in a company. You find out that the stock is of $400 and the fixed payoff out of it would be $900.

On the day you stock gets matured, if the stock value goes above $400 then you are assured that you would receive $900. But in case the stock falls below $400 you end up getting nothing at all. This is how binary option trading is generally run and as obvious it comes with its own risks. But this risk can be handled properly if you go for a binary broker. They will guide you so that you invest in the right company and do not end up getting nothing.

Choosing a Binary Broker

Since many people are in a need to choose the right broker for investment, it is difficult to find a binary broker. There are several websites from where you can get information but there should fixed yardsticks that you should consider while choosing a binary broker. These following yardsticks are as follows:

• Go for those kinds of brokers who have the largest number of contact avenues. This is a sign of his professionalism and the way to reach out to people in the trading industry.

• Those binary option brokers who set the least withdraw amounts should not be chosen. In is applicable for those you are not going for larger investments.

• Try to go for those brokers who have no problem in the way of your payments which should generally be through credit cards, Xoom, Paypal and other online money transferring ways.

• It is advisable not to change brokers at regular intervals or put two different brokers for two separate investments specially in case of small scale investments.

So now that you know all the facts it should not be tough for you to choose the right binary broker.

This is a guest post by Jerry Smith, a blogger and financial analyst with expertise on topics like binary brokers, forex and stock investing.

Need A Investor? Here's How To Get One

If you expect investors to revel at your super cool business ideas that's not going to happen and you know that - the reason is simple; the economic recession many people have become jobless and since many of them have turned to businesses, the investors have become more choosy. You’d get the real picture if you visit a financial institution or a bank looking for funding for your business. You would definitely find people assuring you that they are going to approve loans for you, but no one knows for sure when that is exactly going to happen and if at all it is going to happen. So, the bottom line is - if you want to start a business you have to have money of your own! But, isn't there any other way out?

Luckily for you, there is an alternative solution. We are talking about crowd funding. Crowd funding is comparatively new concept and has been devised keeping in mind the funding needs of small business owners. If you have a small business that needs an investor, you might not get funding from one particular source, but what if you get funding from several sources clubbed together? That is exactly how crowd funding works. Several investors would share the funding responsibly of your business and in return they are going to ask for a percentage of the profit or rewards. Sounds good? But how to get to these investors? Let's find out.

• The first thing you need to have is a business brochure that clearly outlines your business plan and also highlights the investment risks. The brochure should look professional and should have every minor detail that an investor might be interested in.

• Once you have a professional looking business brochure, you need to select a crowd funding platform that you think would be best suitable for your business. If you are not sure about which platform to choose you could try talking to a crowd funding expert and he would be able to help you out. You should also keep in mind that the business plan you have should be able to bring you at least 20% return on investment because otherwise investors might not be very much interested in your project. In any case, if I start a business does not make more than 20% return on investment, maybe it's not worth it after all.

• Once you have all of the above things in place, you get a little bit of marketing to reach out to potential investors. A tricky way of doing that is by offering juicy rewards. Of course your investors are going to have a share of your profits, but who doesn't love a bonus? The bonus you offered them could be in cash or kind. The basic idea here is to gravitate into your business and not let them be taken away by your competitors.

This post has been written by Jessica who is an expert in crowd funding studies and has assisted in the preparation of several business plans for angel investors.

How to Encourage Your Family Member to Get a Personal Loan (Instead of Borrowing From You)

Being constantly approached by a family for a loan can be very annoying, and also a source of embarrassment because you want to say no, but find it difficult to do so. There are many downsides to lending or getting a loan from someone you know. This is applicable to even your own kids. It may be more beneficial for them to get the loan from a lender, and you want to advise them to do so, but do not know how. Here are some tips to help you encourage your family member to get a personal loan, but first let us look at why it may be a bad idea for you to supply the loan.

The Downsides of Social Lending Between Relatives

1. If a lender refused to give a loan chances are you should too. In many instances family members who had been turned down by a loan institution do end up defaulting on loans raised from family members. This means it may take forever or never get back your money.

2. A default on a family loan could cause to you to have to sue your own in order to recover your funds. This could lead to a huge financial and emotional strain on you and your family.

3. The family member may start showing signs of irresponsibility by going on spending sprees or taking out a new car instead of honoring the loan payment.

4. There may have been insufficient attention to making the agreement legitimate by asking the relative to sign off on an agreement. This could leave you in a bad spot without any proof it was a loan.

5. You may not have known the individuals money management style before, and was therefore unable to adequately assess your risk.

6. You may find you have breached tax laws because you chose to forgive balances or payments or charged too little on the interest rate.

Tips on Encouraging a Family Member to Get a Personal Loan

1. It may not be easy, but it is time to be brutally honest. It is time to assist your family by giving them advice rather than money. Firstly declare to the individual that you will not be able to assist with another loan. This will remove from his/her mind any thoughts of trying to be more persuasive.

2. Let the family member know that in any case you would opt to use the services of a social lending company so you would not have to deal with the hassle of recollection. This would further serve to let them know they will not be getting a direct loan from you again.

3. Now offer them some advice on the benefits of getting a personal loan as opposed to borrowing from you. Their credit score can be improved in a very short time and the loans are short term loans.

4. They will also benefit from advice and assistance from a professional financial adviser, and finally learn to take control of their own finances. This would allow them to become financially independent and no longer have to bother family or friends for a loan.

5. Personal loans are another variety of loan that helps to boost credit history once it properly managed.

Constantly helping out a family member in financial crisis will never help them to grow financially. Giving them advice that leads to financial freedom is of more value than providing them with instant cash.

Peter Coppola is a personal finance and insurance expert. He mainly writes for personal finance and insurance blogs. Visit EasyFinance to learn more about short term finance options.
References:

http://www.moneycrashers.com/why-you-should-not-lend-money-to-friends-and-family/

http://www.justmommies.com/family-life/family-finances/the-family-bum-how-to-deal-with-family-members-who-constantly-ask-for-mo?page=0,1

How to Get a Car Loan with Bad Credit

Bad credit is an issue for many people. Since the recession, families have struggled to stay on top of their debts, due to rising costs and high unemployment. This has led to missing payments on loans and some having to file for bankruptcy. Bad credit makes it hard to gain any form of credit in the future but the good news is that you can gain a car loan with a few steps.

Why is Your Credit Poor?

Take some time to look into your credit report and find out why your credit is poor. Do you have outstanding balances on debts? Have you filed for bankruptcy? Have you got a few overdue bills? By knowing your problem, you will be able to take the steps to improve your credit rating and will increase your chances of gaining that finance deal.

Bear in mind that most accounts will stay on your credit file for two years after being closed so can affect your credit for that time. Bankruptcy will stay on your file for six to seven years and will affect you for that term.  While this is the case, it is worth taking the steps to repair your credit rating by paying off debts and unpaid bills. This will help you in the future.

Ask for a Smaller Loan

You will have more chance gaining a financing deal if you ask for a smaller amount with a shorter term. This means that the lenders suffer a smaller risk by accepting you. However, this will not guarantee approval. It is also important to look at the different types of loans to find those who are more likely to accept you.

Prove Your Ability

Another option is to prove that you can make the payments. This requires proof of income and all outgoings, such as bank statements and payslips. You will be able to show the amount of disposable income you have available and that you are not overstretching your finances. Again, this will not guarantee acceptance, but lenders are able to see that you can make repayments to the financial agreements.

Research Lenders Most Likely to Lend to You

Some lenders specifically cater for those with a bad credit rating so it is worth researching into these. The one thing to note is that you will usually have a higher rate of interest to counter the risk that the lender is taken. The higher interest rate will mean that you will pay more in the long term but may be worth it if you really need the finance. On the plus side, having the credit agreement and sticking to it for one or two years will help prove that you are a sensible borrower and will mean you may be eligible for a refinancing deal at a better rate.

Refinancing in the future means that you could gain a lower interest rate. This will help you pay off less in the long term for the car loan. However, you will need to prove that you are a good borrower and sensible with your money and make sure other areas are perfect to gain the best refinancing deals.

Get a Co-Signer

If you are still struggling, you may benefit from having a co-signer. This will be someone with a better credit rating to you who will be able to sign against the loan. The creditor will be able to gain the money from the co-signer if you fail to stick to the agreement.

While this is beneficial to you, it may be difficult to find someone who is willing to do this. The problem for the co-signer is that they will be stuck with your debt if you fail to keep up with repayments. They may insist that there is a legal agreement in place between the two of you should that happen. Their credit rating will also be affected by having the loan on their report, especially if you fail to meet the repayments.

Take the time to shop around and find the best option for your loan. Getting a car loan with bad credit is possible but it is also difficult. You will need to prove that you are sensible with your money and show that you are not the risk your credit file makes you out to be.

Tim is a full time writer but has worked in the finance industry for many years. He predominately writes on topics about financing, such as getting bad credit car loans Massachusetts.

Payday Loan Companies Mock at the Law

For the working class, the ability to pay off monthly bills, and having just enough at the end of the month is bliss. More and more families are having a difficult time just making ends meet, and not having any debts poured over from the previous month is a normal target. The problem is, not every day is perfect. There are those days when their card needs repairing, or when a credit card bill is forgotten. During those circumstances where time is of the essence, payday loans are often the quick and easy solution.

Payday loans online is almost an immediate answer to emergency money needs. If you have a computer, a stable job and a bank account, your request may be approved in a matter of minutes. However, this easy and fast approval is also the very reason why it can be easily abused by loaning companies.

More and more people are highly reliant on payday loans in order to survive their finances. And because of the high and growing demand, there are many in the industry who present terms that are opaque and vague. One of the reasons to be blamed for the constant trespass of these companies is the lack of regulation from the government. Yes, there are certain efforts to create a system, but many of the legitimate companies have also complained that the proposed terms are damaging to the industry, and lacked the proper consultation with the existing legal players. Because their existing market is often those who are in a vulnerable state, a swift but well thought of measure should be followed.

Tightening the credit industry’s code of practice will only mark a huge dent on those who rely on legal payday loan firms. When other credit options have a very strict requirement list and government assistance is an impossible feat that would lead to individuals falling into the mercy of loan sharks and illegal payday loan companies.

There are certain factors to look for when weeding out the illegal credit companies from your list. Payday loans always have a higher interest rate compared to other loans because of the fast processing and the maximum risk for the lender. Because of this, you shouldn’t compare payday loans and regular loans based on the APR’s (Annual Percentage Rate). The payday loans are often limited to just one month, therefore, you can expect that the projected APR is leagues higher compared to the others. What you do have to look for though is transparency. Legal credit companies will specify exactly how much percentage you have to pay on your due date, and the additional charges should you miss the payment. This may be on a monthly or daily calculation, but you should be provided the information freely.

Illegal companies that offer payday loans online often have the same easy and fast processing, but only inform you of the interest you build up on your due date. The additional charges you incur for missed payments are often very vague or even missing altogether. If you miss fully comprehending the terms they provide, or agreed to the loan even with the missing information, they can get away with overcharging you and you are legally obligated to pay for those fees.

So now you know that payday loans have a higher interest rate than your usual bank credit. How do you know if you’re in a desperate position where the loan can alleviate your finances, or just dig your financial grave even deeper?

Only take on a payday loan if:
1. You issued a cheque that is about to bounce.
2. Your alternative loan is long term, and you have the ability to pay in a few weeks.
3. You have an incoming bill that will lead to your credit going over the limit and charging you with a huge overdraft.
4. You are unable to convince your bank to authorize a cheaper overdraft.

Those given above are the usual scenarios where payday loans are the practical choice. You should remember that there are some loan firms that simply take advantage of the fact that you are overly reliant on loans. If you just happen to be short on your day to day expenses, or if you need a loan that could take you months to pay, look for other options. Cut your expenses or go to the bank for a better deal. Payday loan companies may be able to go around the law, but if you’re careful and properly advised, you’ll be able to stay off their list.

Mackenzie Salis is a finance writer for 3 years. She is the author of the site: http://www.onlinepaydayloansguide.com that can provide all valuable information about loans and warn you against fraud and swindle.

Why your firm needs a facilities management expert

Think facilities management is all about getting blocked toilets unblocked and ensuring each employee has their chair set right? Well you’re wrong. It’s about a whole lot more than that. Here’s a quick guide on why your company needs a facilities management expert.

Reducing risk and accommodating change

FM experts can reduce the overall risks your workplace presents. You’ve probably never thought twice about that slightly loose material on the stairs, or the wonky toilet seat. As soon as employee has an accident and takes legal action against you, it’ll be all you can think about. This sounds trivial, but someone who is constantly looking out for the welfare of your workforce is a true asset. Plus, if anything changes space-wise (i.e. you switch your offices about, you move building or you simply change your desks) your FM expert will be on it before you can blink. They’ll have a new risk management plan drawn up; rolling with the changes like nothing ever happened. You won’t even notice it’s happening... but that’s the beauty of a true FM professional.

Managing your environmental impact

FM professionals are trained in identifying and reducing your environmental impact. With the rise of global warming, businesses can’t afford to be too careful when it comes to their emissions and waste. Hiring an FM expert could help you improve your contribution to the world by reducing your overall impact; this can lead to heightened corporate social responsibility and even gain you a few awards which you can shout about from the rooftops. If it’ll improve your reputation, what’s not to like?

Streamlining your processes

A qualified, experienced FM professional will be able to take one look at an existing process and streamline it. It’s a real gift and one that could save your business a whole lot of money, not to mention time and effort. Most FM divisions will take care of your central processes and procedures; be they health and safety-related or not. This means you can rely on them to make the processes as time and cost-effective as possible. Plus, they’ll be able to keep your bids team updated on the company’s latest updates. Need a comprehensive business continuity policy? Ask your FM expert. Worried about the gifts and bribery policy? Your FM specialist is there to help. Above all, they can ensure you’re fully compliant with the law (with the help of your legal team, of course). This could save you a lot of worry and money in the future, too.

You can’t really afford to be without a facilities management team. It really is as clear-cut as that. Your facilities management specialists will do so much without you even noticing. Isn’t that what great employees are made of? Come the time when you do need some help, you’ll be so glad you have them... so appreciate them as much as you can. As with all employees, their contribution helps the business run and when the business runs, you make a profit - it's simple!

Forex Trading Basics

Forex trading is the buying and selling of currencies that takes place in the foreign exchange market. Up until a few years ago trading in currencies was not open to the general public and only a fee large financial institutions and banks were allowed to trade in currencies. Ever since the markets have opened up, anyone can trade in currencies by using various forex trading platforms that are available with forex brokers.

The forex market is the world’s largest trading arena. Daily volumes go as high as trillions of dollars. These volumes are higher than all the stock exchanges of the world put together. The popularity of the forex markets is increasing every day and the market is growing at a rapid pace too.

Key Characteristics of Forex Trading

Forex trading involves the selling and buying currencies. This is why it is one of the most liquid investments that one can think of, making it extremely different from the real estate market or the stock market too. All trading is carried out over the counter and there is no central marketplace like there is in the case of stocks. This decentralization means that traders can choose to purchase from various dealers that are present in the open market and ensure that they get the best rate that is possible. It allows for higher levels of competition and comparison of prices. The same decentralization also indicates that there is no central regulating or controlling body in the case of forex trading. Another aspect that differentiates the forex markets from others is that it is open 24 hours a day for 5 days in a week.

Basics of Forex Trading

When you buy a currency you also sell another currency at the same time. One of the currencies is called the base currency and the other is called the counter currency. The value of the currency that you are buying is determined by the amount of the other currency that you need to pay in order to buy it. The currency that you buy is called the base currency and the one that you are selling is called the counter currency. Since two currencies are involved in each trade, currencies are almost always quoted as pairs. The four major currency pairs that are traded in the markets are EUR/USD, USD/JPY, GBP/USD and USD/CHF.

Forex Trading Platform

The trading platform is the most important tool for a forex trader. This is why forex brokers ensure that provide an opportunity to the new trader to test out the trading platform by using their demo account. But remember, the best forex broker isn't necessarily the broker that gives you the best forex platform.  Not only does this demo account give an opportunity to the trader to test out the specific trading platform, it also allows for newcomers to trade in a virtual environment that simulates real life scenarios. Everything in the demo account is exactly how it will be in the real forex market except for the fact that real monies are not involved. You can choose currencies to deal in, decide the level of risk that you will take, track rates, place trades and decide stop loss too.

How to Use Leverage Trading Currency Pairs

One of the top reasons you might have entered the world of forex instead of sticking with stocks and bonds is the concept of leverage. Through leverage, you can trade large amounts of money and either earn enough to trade without leverage (or even retire), or lose so much money that you immediately wipe out your trading account. You have to understand leverage trading before you try to participate in it, or else you're going to set yourself up to go bust.

The basics of leverage

If you trade in standard units of 100,000 units of currency and have a 1% margin, you need $1,000. Your leverage will be 100:1, which you can calculate by dividing the units of currency by the amount you are depositing (100,000 divided by 1,000 is 100, so the leverage is 100:1). Another example: if you were depositing $2,000 for the same trade, you would have 50:1 leverage.

Leverage is higher in the forex market than other markets, which is probably one reason you're trading in this market. The reason is because currency pairs are often more stable than company stocks or other forms of investments and don't rapidly appreciate or depreciate, allowing your broker to lend you the appropriate amount without undue risk to either you or the broker.

Risk and margin

Of course, the higher the leverage or the smaller your margin, the higher the risk. If you bought one standard unit with a $1,000 deposit and it increased in value by $1,000, you would have a 100% return (your initial $1,000 deposit divided by the $1,000 gain, then multiplied by 100 to get the percentage). Similarly, if the value decreased by $1,000 instead, you would have a -100% return and would quickly be broke.

The amount you deposit is the margin. If you deposit $2,000 on a $100,000 currency position, your margin is 2%. Margin generally varies depending on the broker, and can be anywhere from 0.25% to 5%. If your margin is 0.25% and you deposit $250 on that same $100,000, the tiniest change in the market can deplete your funds instantly.

Decide on your real leverage

The margin-based leverage on your account is less important than your real leverage – the 50:1 or 100:1 number, for instance. If you invest $1,000 in shorting $10,000, you will lose much less money if you lose pips on a currency rising in value unexpectedly than if you short $100,000. Instead of risking as much as you can, try to keep your investing goals in mind.

If you have spare money and you don't mind risk, by all means, get 50:1 or even 100:1 leverage and enjoy the potential profits – just be prepared to lose your investment quickly, too. For beginners or intermediate traders, it usually makes more sense to avoid highly-leveraged trades and stick to more reasonable leverage like 5:1, 10:1, or 20:1.

Now that you have a basic understanding of leverage, try leverage trading currency pairs as a potentially lucrative investment, and revel in not having to come up with the full amount to trade the market. Just don't be too hasty and rush into a trade without taking a good look at the leverage you're applying to the trade.

Resources:
http://www.investopedia.com/ask/answers/06/forexleverage.asp#axzz2ALj3MXN0
http://www.babypips.com/school/undergraduate/discovering-your-trading-profile/the-number-1-cause-of-death-of-forex-traders/
http://www.investopedia.com/articles/forex/07/forex_leverage.asp#axzz2ALj3MXN0

This Guest post is contributed by Stacy Pruitt, a freelance forex strategy and finance writer. Stacy writes about advanced trading and forex indicators. Click here for advanced videos on forex trading.

Payday Loans vs. Cash Loans: How to Know Which is Right For You

It happens to everybody at one time or another. They get just a little short on their monthly bills or they just don't quite have enough cash to make it until the next payday. Many struggle with what they should do in these situations; should they take out a long term loan from the bank or should they consider a short term payday loan. The answer lies with a few personal situations that will determine which option is best for them.

Qualifying for a Bank Loan vs. Payday Loan

Bad credit seems to be a fact of life for many consumers. This prevents them from getting a traditional bank loan to help them through rough financial times. To qualify for a traditional bank loan, you typically need a high credit score as well as a certain debt to income ratio on top of verifiable income. All of these things together prevent many people from being able to qualify for a bank loan.

Qualifying for a payday loan is much easier. Most companies do not even run a credit check; they simply verify the applicant's income and bank accounts. This is often referred to as a no credit check loan since they simply require a job to qualify for the loan. To apply for a payday loan, the applicant often can fill out a simple application online, wait a couple hours for the verification process and then have their cash deposited into their bank account the following business day.

Repayment

Traditional bank loans require that borrowers repay the loan and the interest over a period of time, often 12-18 months. This does bring down the monthly payment that is required although when only a couple hundred dollars are needed, the longer repayment plan can be harder financially than paying off the loan in one lump sum. The average payment for a small, personal loan from a bank is around $100 per month.

The payday loan repayment method is different from traditional banks. The payday loan is paid off in one lump sum through EFT on an agreed upon date, from the bank account that was used for the initial loan. With this plan, the borrower simply pays the loan off in one shot. There is no worrying about making a monthly payment, it is just done. The way the plan works is that the Annual Percentage Rate is much higher than banks, but since it is paid off in one payment, it is usually only about $60, much less than the total interest paid for any bank loan.

For those consumers who need just a small boost until their next payday, a short term payday loan could be the perfect answer. It is a loan that is easy to qualify for and is paid off right away. There is no more worrying about adding a new expense to the budget because it only requires one payment. If you just need a boost until your next payday, look into your options for a payday loan to see how it can help you.

Guest post contributed by Ted Kingman on behalf of SaveMyBacon.co.nz – Ted is an freelance personal finance writer. His articles mainly appear on personal finance blogs. To find out more about SaveMyBacon cash loans, visit their website.

Things to Consider Before You Invest Overseas

Today many entrepreneurs hope to invest in an overseas property portfolio, and why not when there is a lot of money to be made within this sector? This being said, making a profit is not always an easy feat. It is vital that prospective investors practice caution before purchasing an overseas investment property. Here are five important things to consider before taking the plunge.

1. Why do you want to invest overseas?

It is imperative that you consider your motives for wanting to invest abroad. Are you hoping to invest because you have seen upbeat market trends? In what country would you like to invest and why? Is it more cost effective to own the property than to rent it? You will need to ask yourselves these questions before investing.

2. Reflect upon travel costs when visiting and maintaining the property

Unfortunately, air travel has become more expensive in recent years and therefore, you will have to take into consideration this important aspect before buying a property abroad. It is likely that you will need to visit the property in order to carry out maintenance, with this in mind, having a caretaker may be more cost effective. You must carefully consider these additional costs before investing overseas.

3. Don't get carried away by overseas investment property hype

Today magazines continue to push overseas property investment. Nonetheless, you must keep your feet on the ground and carry out the necessary research concerning the location in which you hope to invest in a new property. Speak to the locals as well as to business owners to find out more about your desired city and get legal advice before signing contracts in order to ensure that you understand any clauses that may even be written in a foreign language.

4. Check the market viability

Before signing any contracts you will need to find out how simple or difficult it is to rent a property in the particular location that interests you. Do a little research to find out if there are many empty properties in the area? Contact property agents in order to ensure that you fully understand the local market before taking the investment plunge.

5. How much potential does the property have?

You will need to consider how much money making potential the property that interests you really has. If you want to enter into this market simply to earn a profit, think about how you can keep maintenance to a minimum. Make sure that you do your research and math to ensure that an overseas property is genuinely worth your investment money.

Before investing in a property overseas, it is crucial that you make good use of your common sense and do not buy a property unless you are 100% sure that you can cover its costs should the investment not work out. If you are already looking to invest, why not consider to buy real estate through a free classifieds website?

Five Tips on How to Refinance Your Car Loan

With interest rates at record lows, many people have turned to a mortgage refinance in an attempt to secure lower rates and save money over the life of their loans. However, what many fail to realise is that car loans can also be refinanced; and the process is both easier and quicker than for a home mortgage. The five tips below will help you decide whether refinancing your car loan is the right move for you, and how to go about doing so.

1. Understand your current loan

Before proceeding with a car loan refinance, it is important to be clear about how much you still owe on your current loan, the loan term and the interest rates you are currently paying. You should not refinance for more than the amount you currently owe, nor should you do so if the loan term is nearing the end as you are likely to increase your costs by extending the term. Moreover, if your current loan involves hefty pre-payment penalties, consider whether the savings from refinancing will cover those costs.

2. Know your credit

Knowing your credit will help you obtain the fairest rates possible, allowing you to avoid being duped by resolute salesmen. If your credit score has improved since you took out your original loan, refinancing could be truly beneficial. On the other hand, if your credit has worsened, it is worth considering whether refinancing is the best option.

3. Shop around

As with almost everything, shopping around is essential for finding the best deal available. Make sure you get quotes from multiple lenders, using free online services where possible, in order to compare rates, terms and conditions and select the most advantageous deal.

4. Look beyond low interest rates

Low interest rates can be particularly alluring for those seeking to save during an otherwise challenging financial period. Though low rates may save you money, do not overlook other important factors that will affect how much you pay overall. Transfer costs, processing fees and pre-payment conditions will eat into your savings if you have not taken them into account. In short: read the fine print.

6. Calculate your savings

Once armed with information regarding your previous loan and having identified the best refinancing deal available, take the time to do the maths. There are several car loan calculators available online, which can be used to check that refinancing will truly save you money.

Car loan refinancing can be an excellent way of saving money, particularly if your credit score has improved and interest rates haven fallen. It is however worth taking the time to calculate your potential savings and expenses accurately, while always keeping an eye on the small print. If you are just about to buy a car, check this useful page to find great deals on second-hand Chevrolet cars.

5 Loan Terms That Small Business Owners Must Know

Most small businesses are financed using a combination of personal resources and borrowed funds, meaning that understanding the mechanics behind loans should be a priority for entrepreneurs. This is particularly true because the implications of finance and financial terms tend to be opaque even when they aren't being obscured behind dense language and byzantine rules.


Here are five loan terms that small business owners must know before taking out loans:

Debt to Income Ratio

As its name indicates, the debt to income ratio is the percentage of the business's gross income that goes towards paying its short-term debt obligations. For obvious reasons, a ratio of one or higher is somewhere between disastrous and catastrophic because it indicates that the business is not earning enough money to even cover the minimum payments on its debts, much less its other operating and miscellaneous expenses. In general, lenders prefer businesses with smaller debt to income ratios over businesses with simply high incomes because the latter is less useful as a measurement of the business's ability to repay its debts.

Loan Structure

The structure of a loan is composed of the rules by which that loan operates and is repaid. Structure has significant influence in the risk of the loan and thus the interest rates that lenders will charge businesses. For example, a secured loan usually charges less interest than an unsecured loan because loans are secured by designating certain assets as collateral to be seized should the borrower default on the loan. The lender can afford to charge lower interest rates because its losses are diminished compared to the unsecured loan in case of default.

Interest Rate

Interest rate is the percentage of the principal that is charged as interest in each time period. Although most interest rates tend to be quoted on an annual basis, those rates can be misleading because they tend to be nominal rates rather than effective rates. For example, an 8% interest rate compounded on a semi-annual basis means that the principal is charged interest at 4% every six months, meaning that the effective annual interest rate is actually 8.16%. Businesses must carefully read the conditions on their loans and then run their own calculations to figure the actual amounts that they'll be paying each period for the privilege of borrowing money.

Principal

The principal is the sum that the business borrows from its lenders. It is one of the two figures that is used to calculate the loan's periodic interest. Most loans calculate interest based on the current amount of principal rather than the original amount, meaning that the repayment of the loan speeds up as time passes. This is because a larger portion of the earlier periodic payment goes towards satisfying interest instead of principal compared to later payments.

Solvency

Solvency is the ability of the business to meet its short-term debt obligations as they become due. It is important to remember that solvency is not the same as profitability. A business can produce a profit by earning more revenues than expenses incurred, but that means little for their solvency unless those revenues are collected in cash. This is because most businesses permit the recording of most revenues and expenses before the corresponding cash transactions have taken place. As a result, the solvency of most businesses is more easily gauged using their cash flow statement than their income statement.

This guest post was contributed by Darren Bechard, a freelance writer and business finance researcher. He mainly writes about business finance and enjoys sharing his tips and insights on numerous blogs. Visit Wongaforbusiness.com for more business finance options.

5 Golden Rules of Taking Out Short-Term and Payday Loans

Many individuals and families are living paycheck to paycheck in the current economy. Unfortunately for these people, there is no extra cash for unexpected emergencies. When emergencies arise, they have to look for alternative ways to manage their finances and weather their cash flow crisis. For this reason, many people turn to short-term and payday loans when they are in a financial crunch. Even though these loans come with strict repayment policies and high APRs, sometimes these loans are a struggling individuals only alternative source of income. Below individuals will find tips to help them utilize a short-term or payday loan successfully.

Rule 1: Read all the Paperwork

While the loan process for a short-term or payday loan is relatively easy, there is a great deal of paperwork involved. For a borrower to truly understand the loan they are agreeing to, it is necessary to read all the paperwork involved in obtaining the loan. Information that the borrower will want to pay close attention to include the APR (annual percentage rate) associated with the loan, and loan origination or membership fees required for the loan, the expected repayment date of the loan, and penalties associated with the loan if the borrower were to default on the loan.

Rule 2: Borrowers Should Only Borrow an Amount They Can Pay Back

When applying for a payday or short-term loan, resist the urge to over borrow. Borrowers should think about their current situation before agreeing to a loan amount. How much is needed to cover the current emergency cash flow problems? Is the repayment date and amount truly possible to do? If the borrower fears they cannot pay back the entire loan amount by the repayment date, they may need to consider borrowing a smaller amount.

Rule 3: Abide by all Loan Requirements

Once a payday or short-term loan is acquired, it is imperative to make sure to abide by the loan requirements. This includes making scheduled payments in full and on time. It is crucial to remember that a failure to make payments on time can lead to massive increases in the amount of money owed on the loan.

Rule 4: Try to Avoid Revising the Repayment Date

If the repayment date on the short-term or payday loan is approaching, and the borrower does not think they can pay the loan off in time, it may be necessary to renegotiate the repayment date. However, it is important to realize that not every establishment will offer this service, and in some cases, a renegotiated repayment date can change the terms of the loan. If at all possible, borrowers should make every effort not to change the repayment date on a short-term or payday loan.

Rule 5: Not a Long-Term Solution

Short-term and payday loans are not meant to be long-term cash flow solutions for borrowers. The fees associated with these loans are much higher than traditional loans, and can cause greater financial hardship than they ease if they are turned into a long-term solution. For this reason, borrowers should only turn to these types of loans in a true financial emergency. For long-term solutions to cash flow problems, borrowers may need to rethink their monthly living expenses and make budget cuts to make sure they are living within their means.

While it is entirely possible to borrow with a short-term or payday loan successfully, it does require substantial attention to detail from the borrower. Following these 5 tips for borrowing a short-term or payday loans above will help borrowers borrow successfully:

http://www.loansafe.org/how-much-money-can-i-borrow-from-a-payday-loan
http://www.pbs.org/wnet/need-to-know/five-things/payday-lending/13852/

Darren Bechard is an independent finance researcher. He has been following consumer trends with regards to short term finance and reporting his findings on various personal finance blogs. Find out more about Wonga.com short term loans.

An Introduction to Forex Trading

The foreign exchange market, also known as the FX or Forex market, is one of the largest and most traded markets in the world. It is a type of global, foreign-exchange trading dealing with international currencies. The Forex market is the only one that is open 24 hours a day and that operates in all time zones.

Forex trading is different from other markets, such as the stock market. In these markets, when shares are bought or sold, that is the only action taken. With the Forex market, however, things work differently. Each sale within Forex results in a simultaneous purchase and vice-versa; this is where the “exchange” in “foreign exchange” comes into play.

Currencies are all traded in pairs. There are two types of currency pairs: major pairs and cross-currency pairs. All major currency pairs involve the US dollar. Examples include the Euro-dollar pair and the dollar-yen pair. Cross-currency pairs are alternative ways of trading that do not necessarily involve the US dollar; cross-currency pairs are also known as cross pairs for short. Examples of cross pairs include the Euro-Swiss pair and the Euro-yen pair.

The way in which success is measured in Forex trading is by the profit and loss of the pair, also known as P&L. It is vital to understand how P&L works when dealing with online margin trading; the amount of margin available to work with is directly affected by your P&L.

Your opening margin balance is your initial margin deposit. This is the amount of collateral that you put up when creating your trading account to support the margin requirements of your broker. It is important to note that, unlike other markets, forex trading does not deal with margin calls. Rather, a ratio of margin balances to open positions must be maintained.

An example of how margin ratios work will explain this concept further. Suppose your broker requires that you maintain, at all times, a margin of 100%. Also suppose you have an account with a 100:1 leverage ratio. This means you can control $100 for every $1 of margin in your account. This means that to control $10,000, you will need $100 in your account. This is because $10,000 divided by your leverage ratio of 100 gives you $100.

If your margin balance ends up at less than the broker's required amount, due to losses you've incurred, the broker can terminate your account. This is why it is crucial that you keep an eye on your margin balance. Should this happen, any losses you've experienced will usually be locked in. There is a lot that can be said about margins and margin balances, but this is usually covered in the fine print for the account you create and can vary a lot from one broker to another, making it very important to read over everything ahead of time.

There is much to know about the Forex market and trading within it, but this article represents the most fundamental and important information needed to understand the deeper aspects. The Forex market really isn't as complicated as it seems, and once you understand these basics, you'll have a much easier time not only learning more, but you'll have a much easier time being successful in trading as well.

This article was provided by the leading financial trading education site - FinancialTrading.com.

Small Loans Show Growth Potential

For those of us who have been around for a few years, it’s pretty clear that banking is one industry that has been through some significant changes, especially when it comes to personal loan applications. Gone are the days when you would approach the bank manager directly and plead your case to improve your cash flow situation. These days the bank manager has nothing to do with the final decision and banks are only really interested in a minimum of $5,000 if you want to borrow.

The argument against small loans it that the average $3,300 loan taken over a year racks up an additional $462 in admin fees plus an establishment fee so it doesn’t make good business sense for banks to go to the trouble of offering the service. For consumers who have overextended their credit cards and have a bad credit rating the current lending climate is a pretty aggressive place and going through the banks could be a futile endeavour so it is just as well that there are more accessible options opening up for loans, such as the ones at Bankwest.com.au (http://www.bankwest.com.au/personal/personal-loans/personal-loans-overview), which our research led us to.

What is more, Cash Converters’ personal loan growth of 31 per cent to $62.1-million is also worth a mention because the model it was built on was geared towards market needs. Its core business is extending $1,000 loans on a shorter term of seven months, accumulating $490 in interest and a $250 establishment fee. Australia’s short term small amount market is estimated to be generating more than $1-billion and, for those who are running out of viable loan options it provides a suitable channel.

Things are looking up for the cash-strapped consumer though as legislation has also recently been passed that restricts the interest and charges that can be applied to small, short term loans. Loans under $2,000 have been capped at 20 per cent of the credit amount to be charged upfront and 4 per cent on a monthly basis for the term of the loan.

Other developments in the arena of personal loan financing have seen the emergence of a new peer-to-peer platform released by SocietyOne. It is a loan management program called ClearMatch which caters to a changing world with a dynamic online solution and a secure framework through which borrowers’ and investors’ interests can be satisfied.

The new platform promises a more efficient personal loan process by taking the middle man, the bank, out of the borrower-investor relationship. It has also been claimed that the operating platform’s technology is more efficient than can be expected at a bank and other financial lending institutions.

The news of the software’s Australian debut comes in the wake of its success in the United Kingdom, and SocietyOne feels it is likely to have the same degree of impact down under. The software creates a mutually beneficial framework, as borrowers pay lower fees and interest and lenders can access an asset class that has kept the banks running for many years.

In its favour is fixed rate monthly interest and repayments. There is also no monthly charge and no fees apply for early repayment. The funds are provided by independent investors who invest small amounts into different accounts to create a diverse portfolio under the management of SocietyOne. Borrowers can access to up $30,000, on what has been coined a responsible borrowing option.

So if there wasn’t already enough pressure on the banks the introduction of more direct borrowing alternatives poses a threat to their precarious profit margins. The country’s big four have come under a lot of fire recently, monopolizing the market and charging Australians significantly higher interest rates and fees than their financial counterparts in the rest of the developed world.