Car Finance – The Business Funding Kind When Buying Any Car

Presently there is a business funding alternative that significantly rewards car purchasers. This kind of sort associated with business finance is referred to as the car finance. Not simply is it advantageous for these customers who would like to obtain automobiles, but in addition, it advantages many finance organizations and even the vehicle producers and dealers.

Through vehicle finance, the latter are provided the possibility of having more clients buying their cars. In the situation of financing companies, they tend to be able to make significantly more in revenue by acting as middlemen in between the auto manufacturers and the customers.

There are generally 3 alternatives that a consumer may consider when purchasing by means of car financing. A prospective customer has to discuss to a funding manager whom will explain to him all the available car financing options and aid him in choosing the most suitable choice for his automobile purchasing desires.

Auto rental is the very first automobile finance choice, wherein the funding supervisor and customer agree to the terms and conditions within the deal for instance just how to utilize the automobile. With this type of alternative, the financing supervisor would be the someone to purchase the car, which means it will likely be below his name. The agreement stipulates how the purchaser is provided the total rights on the use of the car for that decided period of time, during which, he can pay the necessary vehicle rent on a monthly basis.

Second vehicle funding option is the hire purchase deal, wherein that the buyer must pay for the decided monthly installments along with other active costs and charges. The name of the purchaser will probably be placed within the title, but simply after he has settled entirely for the automobile, including all corresponding expenses. The purchaser should be aware that during the time period that he is still paying for the monthly fees, the automobile business funding company will have the ownership of the vehicle.

Finally, the 3rd alternative is the Chattel mortgage. Using this type of vehicle funding, the customer has to produce collateral to be able to have the correct quantity of loan for that vehicle of his choice. The guarantee must be movable such as bank notes, jewelry pieces along with other related non-permanent properties. Providing guarantee ensures the funding manager that the customer is not going to renege on his payments and that he will pay until total amount of the car has been given. When the consumer has fully paid, the guarantee will be provided back to him.

Consider Government ‘Indonesia Investment Fund’

JAKARTA – The government is considering the establishment of an investment fund. With the investment fund, the state-owned company to acquire a company.

Coordinating Minister for the Economy Hatta Rajasa said the investment fund is a good idea. He considers Indonesia also needs to implement the investment fund. He explained that, in the presence of state-owned investment as it can directly perform the takeover.

“There is no need of government. SOEs we can also do that. Entrepreneurs private. Kadin there was some sort of holding, she was investment as fund so that he could acquire a profitable company. Idea that,” he said at the Shangri-La Hotel, Jakarta.

On the same occasion, the Chairman of Kadin Suryo Bambang Sulisto revealed, the economic relations between countries, in the era of globalization is basically the principle of two-way or two-way-traffic both in trade, tourism, as well as in investment.

“To support the implementation of the strategic investment overseas, the Chamber of Commerce and submit a proposal for the government to establish an institution in charge of managing what we refer to as” Indonesian Investment Fund “(as in Malaysia Khazanah and Temasek in Singapore),” he said.

According to him, Indonesia should not be spectators while similar institutions overseas acquisition of assets in the country of the best such as banking, telecommunications, mining, plantations, and even aviation.

“For example, the use of Indonesian Investment Fund we are proposing is whether the harm if the Government through such Bulog acquired or acquires Soybean Sugar Plantations in Brazil or Pertamina to buy oil refinery or smelter Antam take to process the results of our mines,” he said.

3 Sources of Funds You Can Exploit to Finance Your Business

One situation that gives entrepreneurs sleepless nights seems to be the issue of raising funds for their business. Sometimes, entrepreneurs may have viable ideas, expansion plan and other projects that will increase the profitability of his business but lack of funds may be a major set back for him.

Imagine you were promised a million dollars as a loan to finance your business, I am sure you will tabulate how this money will be of great leverage to you. I am about to share with you three sources of funds.

Each of these sources has its own strength and weakness, its own procedure and process. Having said enough, let’s proceed with the main issue on board.

Three Source of Funds You Can Access To Finance Your Business

1) Family and friends: This is always the first point of call for any entrepreneur seeking funds. It is so because family and friends will always be willing to help those who they have personal relationship with. Family and friends will always give you money blindly if you are trustworthy.

2) Private individual investors (Angels): Approaching private investors otherwise known as angels is an option you might want to consider when raising fund to finance your business. Angels are rich individuals that use their wealth to encourage young entrepreneurs with viable business ideas in their community. If you have an angel in your community, you can consider taking your business idea to them. Example of such is Bill W. Gates encouraging young entrepreneurs in Seattle.

3) Government Grants: In some states and countries of the world, the government of that region maps out a certain amount of money to encourage the development of small and medium scale enterprises. This money is given out as grants to those it may concern. Governments grants can be a source of fund for you if you are a citizen of that region and you are able to fulfill the stipulated requirements.

In conclusion, I want to state categorically that lack of funds should not be an obstacle to achieving your dream of building a successful business. You can utilize one or more avenues of funds listed in this article to finance your business.

Why Finance Companies Are Your Best Bet For Leasing Equipment Via a Capital Lease

Looking to improve? Aren’t we all! Improving your business with respect to the acquisition of new business assets is a major decision for Canadian business. What is the current state of the leasing equipment market in Canada, and what finance companies are your best bet and why?

Even though you’re taking on additional debt when you acquire a capital lease option the committing of your cash resources can still be properly managed using an equipment financing strategy. You’re making the decision because you want to utilize the asset to improve productivity and profits.

We can certainly help our clients finance the asset, but it’s up to you to ensure you choose the right asset, negotiate a best sale price, and ensure the business asset meets your needs. The reality is of course that your leasing equipment decision is an important one – its an alternative to paying cash outright, or drawing down on credit lines you might have in place – and most of our clients agree that the ability to secure business credit for working capital is a large challenge these days, so using those funds outright for an equipment purchase doesn’t seem to make sense.

You have chosen a capital lease, or a lease to own option. The alternative was an operating lease, or a use and return of the asset and that hasn’t made sense this time around. Finance companies in Canada can structure payments that make sense for your firm. Typically clients have budget constraints, have some seasonality in their business… etc. This is typically when leasing makes more sense than a loan, because it’s so flexible and tailored to meet your specific financing needs.

In the current Canadian leasing equipment landscape and environment of 2010 /2011 you may well be expected to make some sort of down payment, but again, this is negotiable. Talking to your accountant might bring up further reasons why the tax advantages of lease financing might make you decision to finance an even easier one.

Finance companies recognize that you are in many cases using a leasing equipment strategy simply because you can obtain assets you might not be able to afford. These firms have only one mandate… approve and fund your leases! Consequently their credit people are experts in looking at your overall picture, which includes your firm’s financials, the value of the asset itself, which is of course the collateral, and your projected profits via use of the equipment.

Your decision to enter into a capital lease should be relatively straight forward; the challenge is often picking the right partner. The Canadian landscape is made up of hundreds of firms who have specialization, only regional representation, or in some cases your transaction will be viewed as too large, or too small. Navigating that maze is a challenge, so see the service of a trusted, credible and experienced business financing advisor who will help you get approved and negotiate the best terms possible. That added value along can improve your overall return on investment and make your decision to finance a solid one.

Quick Guide On Financing Your Business

Even the most attractive and lucrative business opportunity can be unsuccessful if you have insufficient business financing to continue on with the deal. This is really important in business acquisition since unique opportunities do not come very often. Therefore, finding business purchase financing on time is the key to scoring on such business deals. It is important to be adequately prepared when planning to buy a business establishment.

Finding funding for your prospect business Business acquisition financing generally comes in two methods:

1. Debt financing – You will rely on an outside source to acquire financing for your business.

2. Equity financing – You will sell shares or stocks of your business to some investors.

It is difficult to get approved on business acquisition financing through either method because credit market conditions are tight and investors are wary about providing financing. However, if you were a knowledgeable entrepreneur, it would be a lot easier for you to get past this ordeal.

There are few key aspects that you need to know if you want to use the first method to borrow a certain amount of money. In this approach, you will demonstrate your business skills and knowledge to prospective banks and lenders. The bank or the lender will most likely ask for detailed information on the business you intend to purchase, your collateral for the loan, and the means for you to pay the money back.

In securing business acquisition financing, there are some things you need to remember. One is to have a backup plan. It is better if you get approved by as many banks and lenders as possible, for these will be handy in situations when one backs out. Another consideration is to acquire adequate business purchase financing that covers operating costs. It is highly recommended to have a plan B in case the profit decreases. Lastly, see to it that you have a detailed business plan. Remember that this is one of the many bases of banks and lenders in approving your business financing loan.

The second option is equity financing, wherein you would agree to sell shares of your business to other investors. In choosing this option, you don’t have to worry about the risks in repaying debt, but you would be giving up partial ownership and control of your business.

Keys to successful business acquisition financing The most helpful way to secure business financing is to become inventive. You may try the easiest approach of all, which is to secure seller financing. In this deal, the seller will have to wait for a certain period of time to be fully paid off. The seller will also most likely offer assistance in ensuring your business’s profitability. However, not all sellers are willing to offer this type of setup. Even if you do find a willing seller, the asking price can go as high as 5 to 25 percent.

If a bank denies your loan request, you can try to apply for a small business administration loan or SBA loan. This type of loan offers good terms and requirements, but you won’t be getting additional funds from any other source.

There are many other possibilities to explore in securing financing for your business. Try asking for help from your family and friends to fund your business. You may also opt to draw money from your 401(k) plan. Contacting franchise financing companies is also another possible option. With a lot of choices available for you, acquiring financing for business is not difficult after all, don’t you agree?

When to Use Personal Finance Services and How to Find Them

Becoming efficient and wealthy will require the use of personal finance services and professional help to manage your finances effectively at some stage in your life. Managing your savings and Investment plans, debt management, taxes and money are all part of financial administration that can be overwhelming. There are times when using services rather than managing your finances on your own is a wise idea.

There are situations when people get occupied with mountain debt and finance problems that could not be remedied in the course of cost cutting and extra jobs, but require you to use a service or agency to help you manage what you have. Such scenarios like divorce, a long-lasting period of unemployment, unexpectedly huge medical bills, mortgage companies threatening to foreclose on your home etc will require expert help to not only navigate you out of trouble but also take some stress out of your life.

These are horrible problems no one liked to get involved with and regardless of how hard you have tried, you have made little development in looking to find better solution to it. Before you get stressed out, a personal finance service can lend a helping hand to you.

There are financial help services capable of working with your creditors and get them to reduce interest, cycle accounts to get them current, and amazingly get your payments reduced. The approachable staff at these relevant agencies is knowledgeable in all areas of finance, and they can possibly find better solutions to your debt problems that are 99% does not engage in bankruptcy.

Below are lists on how to find personal finance services at your best.

First, get in touch with a company through a professional relief network. All the firms which have delivered state of the art results are listed with these networks. Thus, stop wasting time in searching on the internet. Personal finance companies capitalize on the recession conditions. To compare debt settlement companies it would be sensible to visit a free debt relief network which will locate the best performing companies in your area for free.

Second, look at the advantages and disadvantages of each one of them and see which one will help you the most. So how can you ensure yourself from legal and illegal firm? The focus here is on the word legal. If the firm which you have chosen is not listed with a particular network, it is illegal. This is a very important way to identify scams and it will save a lot of money as well.

Third, If none of these agencies suites your taste in managing your personal finance, it may be time to consult with a professional personal finance expert. He or she offers a free initial consultation. However, as a client you need to bring relevant resources and information and remember not to hide any debts record. The personal finance expert will review your information and advise you on how to best proceed.

You might wonder what to do and where to begin. If you decide to seek financial, it is essential to so your research on the various options. And of course the internet is always a place to start. As a general rule of thumb seek out 10 companies or websites to view, interview or research each one to narrow down to three services then seek references or testimonials from the three personal finance services you have chosen.

Getting the Most Out of Equipment Financing

There are many equipment financing companies in the business world anxious to gain a new client who is looking to buy or lease machinery for construction, transportation or the office. Consumers need to be cautious and be sure they are getting the best deal for their needs and that they are working with a proven company.

One of the first things to consider is the reliability of the equipment financing organization. There will be several in the client’s location who have been in business for many years and who are well established. They should be happy to supply names of customers who will give a testimonial of their satisfaction. The company should have a comprehensive website where rates can be computed and full disclosure of the merits of leasing versus buying is discussed. And sales associates, when contacted, should be patient and helpful, answering questions fully without pressuring the client to make a decision.

Potential clients should also ask the equipment financing company if it will consider used equipment, as huge savings can be realized if pre-owned machinery is purchased. And it is also important to find out what the timeframe for approval is. Many financers can offer a one-day turnaround, making for a quick and efficient process, since if the price is good, the unit may not be available for long.

In addition to the company from which the equipment is being purchased, there are many institutions which offer equipment financing. Conventional banks usually offer the lowest available interest rates, and clients who have a good relationship with their bank and who use it regularly for doing their business as well as investments, may get a very good deal. Banks tend to be territorial, however, and may not be open to financing equipment that is going to be used to expand a business to another city. Other options for equipment financing include independent borrowers, where the interest rate may be higher, but they are often more flexible.

Whether to purchase or lease is another factor which should be contemplated before signing any agreement for equipment financing. Often a lease is very reasonable on a monthly basis, but once its term is up, the ownership does not belong to the lessee; there is a residual buyout which must be purchased. This most often applies to vehicles, but may also be in effect for other equipment. The worst case would be paying for equipment long after the need for it has passed, so buyers would be wise to examine any agreement carefully and be sure they are aware of all the terms. Leasing does allow the consumer to trade up to the latest technology easily and this is a positive reason to consider it.

Most large machinery and equipment, including construction, automobiles, semi-tractor units or airplanes, is purchased by using the services of an equipment financing service. There is a considerable capital outlay when purchasing semi-trailer units or aircraft as well as road construction pieces, and few companies can or want to pay cash. Leasing it rather than owning it is a very common practice that often makes good business sense.

Whatever option is chosen for equipment financing, it is good to have two or three agreements to consider and compare before making a final decision.

Lawsuit Financing Companies

Attorneys, law firms, lawyers, beneficiaries or clients usually form lawsuit-financing companies. Lawsuit financing companies can also provide appeal finance, firm finance, custom finance or estate finance.

Many lawyers and attorneys create lawsuit financing companies based on their experience and the types of cases they encounter the most. Attorneys and lawyers with expertise in personal injury lawsuits or patent lawsuits help by providing cash advances and support in their fields.

Lawsuit financing companies provide many financing options. With a significant monthly fee, a few lawsuit financing companies may help to settle the case faster. Though a large variety of options are available, the plaintiff has to discuss with the attorney which option is best suited to him.

The lawsuit financing company and the plaintiff can make an agreement of the amount of share the lawsuit financers would obtain after the settlement or the verdict is known. This is called “flat fee”. Apart from the flat fees, the plaintiff has to pay a minimum fee every month, called “recurring fees”, to the lawsuit financing company. This recurring fee can be as low as 2.9% in the case of a few lawsuit financing companies, or could be as high as 15% with other companies.

It is the financing company’s decision as to how much to pay as the cash advance. Lawsuit financing companies pay from $1000 to about a million dollars depending on the case.

Every lawsuit financing company would have a team of lawyers to assess the strength of the case. The key is to avoid funding frivolous complaints. Thus the financing companies will scrutinize the complaint and decide the chances of success of the case.

Lawsuit financing companies do not term their cash advances as loans but as investments. The applicant has to repay after the verdict. Usually the monetary settlement that is obtained after the settlement by the court is larger than the company’s advance. The lawsuit financing company should be paid the principal and the predetermined share of the monetary verdict.

Increasing Credit Union Revenue by Increasing Member Awareness of Investments and Insurance Sales

“Plans are only good intentions unless they immediately degenerate into hard work.” — Peter Drucker

Peter Drucker, the management guru, passed away in 2005. With his passing we lost a unique individual who made a significant impact on not just the American business landscape because the impact of his knowledge of business management was felt worldwide. He was known as the “Uber Mentor”

Drucker was not a big fan of planning for planning sake. He counseled his clients to get busy and implement the plan as the lead quote above indicates. He was also an advocate for learning from mistakes. He used to tell even the largest corporate titan, “What makes you think you’re exempt from the normal bumps and bruises of life? The question isn’t, do you make mistakes? It’s, do you learn from them?”

As we approach the second half of 2009 our focus will gradually shift to looking at next year and the upcoming planning process associated with 2010. We are working hard to make 2009 a successful year but simultaneously learning from the mistakes and successes of 2009 so we can finish this year in a strong fashion while laying the groundwork for a successful 2010. I am going to focus on a key strategic concept that I believe will play a big role in the growth of our credit union partners in 2009 and beyond. This concept concerns the credit union membership participation in the investment services program.

 

One of my favorite Peter Drucker quotes is as follows, “Innovation requires us to systematically identify changes that have already occurred in a business — in demographics, in values, in technology or sciences – and then to look at them as opportunities. It also requires something that is most difficult for existing companies to do: abandon rather than defend yesterday.”

One such opportunity involves looking at how we can expand the awareness of the investment and insurance sales programs (program) within our credit unions and thereby help more of our members achieve their financial dreams. Let’s look at the membership penetration opportunity.

According to the 2007 Callahan & Associates Credit Union Retail Investment Program Benchmarking Report the average financial consultant gross commission (GDC) was $268,296. The aggregate GDC per million dollars of share deposits was $888.00. The average number of accounts per financial advisor was 760. So from an industry perspective we could use such data to gauge our progress and to forecast our expectations for next year. The danger of course is that while benchmarking data is useful an aggregate approach takes into account programs that do not look like yours and therefore tends to skew the results toward those higher performing programs. So at face value you may determine that you are either above or below the credit union averages. At least it’s a good place to start. In addition we should factor in economic data into this “top down approach”. We need to have an opinion of how the economy will impact our members’ ability to achieve their financial goals. In addition your broker dealer should factor in how the economy will impact their ability to deliver the products and services to help your financial advisors solve your credit union members’ financial problems.

One such “bottom up” approach is to set a penetration or participation target. For example, if your credit union currently has a participation rate of 2% and your membership is 40,000 then you have 800 investment accounts. Last year your program generated $365,000 in gross dealer concession (GDC). If last year your penetration was 1.5% you moved the needle from 600 to 800 net new accounts. If you have 3 advisors on your team that equates to an average of 67 net new accounts per advisor. That is a pretty good increase. We would than take a look at how we did that and hopefully repeat it next year. Or better yet, now that our team is a little more seasoned, let’s move the needle higher say to 3.0% in 2010. That will be a net increase of another 400 accounts (assuming your membership numbers are static which I hope they are not and continue to increase).

These are net numbers so I am also assuming that we are doing a great job of retaining our existing investment clients. If not, the gross number of new investment clients needed will be correspondingly higher. We can then take the expected net new member client number, in this case 400, and multiply it by the average investment account balance for our credit union. Let’s assume it is $30,000. Let’s also assume an average commission paid on an investment account is 4%. So, $30,000 times 400 = $12 million in new investment dollars. Multiplied times 4% gives us $480,000, the projected revenue from new member clients.

In addition to the new member forecasted number, let’s assume you have an existing investment book of $50 million. What can you expect to generate from that book. Well, credit union programs don’t operate like a wire-house such as Merrill Lynch where the advisors are much more transactional because of the individual equity trading so as a result they might turnover their book at a rate of 1% each year. Our members typically have mutual funds and annuities in their portfolios which are “buy and hold” investments and should not be churned unnecessarily. Nonetheless, there is still a need to meet with our members on a regular basis and adjust their portfolios based on life changes or add new assets. Many of these activities will not incur commissions but some will. So conservatively if we estimate that each of the existing members that have investment accounts were to invest an average of $10,000 additional dollars that would account for $8 million in new investment dollars from the existing book equating to $320,000 in revenue.

The turnover needle can also be moved higher as we become more proficient at managing our book of clients through regularly scheduled meetings and marketing initiatives. Does an advisor have too many clients? Is an advisor losing as many clients as he/she is bringing in the door? Are we contacting our clients often enough? With the increased effort to promote the program comes a commitment to improve the skills of your advisor team. The two efforts must go hand in hand. The last thing you want to achieve is an increase in referral activity only to have your members walk away in disappointment from their experience at the investment desk.

So our sample credit union investment team might forecast a minimum goal of $800,000 based on $480,000 in new member client revenue and $320,000 in existing client revenue. If they have 3 advisors they could divide the goal evenly or if there is a disparity in the size of the advisors book and/or experience one might carry a larger goal say $300,000 and the other two would have a goal of $250,000 each.

Such an approach to revenue forecasting is not an exact science. Factors such as the composition of the investment book, experience of financial advisors, referral program success, management support, marketing initiatives and member retention are just a few of the factors that will determine the ability to increase membership penetration and increase revenue from the existing book of business. But it is this kind of close examination of our business and partnering in the goal setting process that will afford all parties involved; the financial advisor, the credit union and the broker dealer the opportunity to achieve your goals. Ultimately it is the credit union member who wins as you increase their awareness of your ability to help them reach their financial goals. Isn’t that why our doors are open in the first place?

The Different Shades of a Personal Loan

Personal Loans are loans that are easily available and help you fulfill a number of needs. Personal loans are not taken out for a specific purpose. You may take out a personal loan to fulfill all your big and small needs. You may avail a personal loan to consolidate your debt. A cheap personal loan can be used to pay high rate credit card dues. Moreover, you will need to repay the loan to just one lender.

A personal loan may also be used to improve your credit score. If you have a bad credit history, take out a Bad Credit Personal Loan and repay the loan as per the loan terms. This will help you improve your credit score. This article explains various types of personal loans. Personal loans are broadly classified as secured and Unsecured Loans.

Secured Personal Loans

Secured personal loans require collateral and carry low rates of interest. Secured personal loans offer flexible repayment terms. The amount of monthly payments is small in case of secured personal loans.

Unsecured Personal Loans

There is no need to offer your property as a security in case of an unsecured personal loan. The rates of interest on unsecured personal loans are higher than the rates on secured personal loans.

Based on the rate of interest, personal loans can be classified as fixed rate personal loans and adjustable rate personal loans.

Fixed Rate Personal Loans

In case of fixed rate personal loans, the rate of interest and the amount of monthly payments remain the same throughout the loan period.

Adjustable Rate Personal Loans

The rate of interest on an adjustable rate personal loan keeps on changing as the average rate prevalent in the market changes. Consequently, the amount of monthly payments also fluctuates throughout the loan period.

Based on the mode of repayment, there are three types of personal loans – installment loan, balloon loan and single payment loan.

Installment Loans

In case of this type of personal loan, the loan amount, along with its interest, is repaid in the form of monthly installments until the loan period expires.

Balloon Loans

Only the interest is paid at regular intervals and the entire principal amount is repaid at the end of the loan period.

Single Payment Loans

The entire principal amount as well as its interest is repaid at the end of the loan period.