How to Finance a Business Purchase in Today’s Economy

Finance a Business Purchase in Today's Economy

You’ve come to the right place if you want to understand how to finance a business. Getting your business financed can be a piece of cake if you get a complete evaluation on all potential lenders, choose the right loan for you and discover how to structure your financing. Stay tuned to learn how you can make getting your business financed a breeze.

Our current economic situation leaves many people reluctant to spend any money. Many banks are hesitant to lend money in fear they will lose their investment or gain a business in foreclosure. Protect yourself and your business by requesting a background check before you decide on one particular lender. With many banks dropping like flies from day to day, it is important that you get the protection you need for your investment. Once you’ve mastered securing a stable and reliable lender for your new business, finding the right loan for you will be the icing on the cake.

Once I’ve made a list and checked it thoroughly to find a good lender, then what? How do I know what type of loan would be best for me and my business? Your loan should fit you like a well fitted glove. It’s important to choose a loan that won’t cause you to “live beyond your means”, your business will only last if you can afford it. Choosing the right loan is important, but a proper financing structure is the key part to the purchasing process.

I found the right lender and a loan that fits my requirements, what else do I need? What else would I need to do to make my business purchase? It is important to fully analyze your finances. You need to make sure that your finances are structured for success now and in the future. Understand that the research and planning you put in now will create the foundation for success for your business.

Did you realize all the thought and planning that goes into purchasing a business in today’s economy? Getting your business financed can be a piece of cake if you get a complete evaluation on all potential lenders, choose the right loan for you, and discover how to structure your financing. Now show the world that you aren’t going to let the current economic recession crush your dreams of owning your own business today.

 

How Do Divorcees Safeguard Their Finances?

Divorcees Safeguard

A divorce, in most cases, is brought about by marital conflicts and, despite the fact that it is the legal way of parting ways, it rarely ends in a friendly manner. It is never easy for the divorcees since it tends to create a painful semi-permanent scar due to the emotional trauma that is suffered. It also causes quite a huge financial impact especially to the economically disadvantaged partner. In most cases, it is the woman who has to sacrifice their careers to tend the family as a wife and mother. Even when undergoing tough emotional strains and stress, it is imperative for one to take financial matters seriously during this process of separation. With the right strategies in place, one can be able to achieve a smooth deal that ensures financial security afterwards.

To begin with, it is very important for one to hire a good attorney to represent them. This does not call for the most expensive ones but those who will have and keep the matter to their best interest. A good attorney should produce documents that cover all the necessary aspects such as the custody of the children, their maintenance or support, and possession of properties and assets. The attorney should be well vast with matters concerning family law and must be able to handle and take matters in the speed that is required. The more the case drags, the higher the costs of settling it and the nastier it gets.

Also, one requires to have a bank account in his/her own name for the sake of settling the normal basic expenses. The courts never bar one from operating such marital funds thus this provides a good support for any short notices.

One may need some credit cards under their name. It is usually advised to get this credit card before things get out of hand since after a divorce, it may turn to be very difficult to get one. Getting such as card is usually very easy for those whom are still married. This card helps one to overcome the stress caused by joint accounts since one partner may opt to close it down after a divorce leaving the other party in a financial crisis.

Having a record for the financial documentation makes the process of solving financial matters easy during a divorce. It might seem unnecessary to have the documents such as financial statements when in marriage but the ex may make it difficult to acquire these papers after separation and it is not be easy to have them once divorced. Some of the documents may, out of malice, disappear.

One must learn and cope up with an adjusted and more realistic budget. It is very important for one to assess and find out how much it will cost them and the children to live on only the available resources. The style one was accustomed to may change drastically.

Lastly, it is critical for one to focus on the future other than cry over the past. Life has to go on and if one had never worked before, they need to focus on what they can do and go for it. The child support or alimony one might receive out of a divorce will quite often not be enough. The healing process calls for starting a new life and realizing new goals or previously shunned potentials.

Bad Credit Affects More Than Just Finances

Bad Credit Affects More Than Just Finances

Bad Credit Affects More Than Just Finances – Most people realize that having bad credit can create a variety of financial problems. If you have poor credit, it is difficult to be approved for any new credit accounts. Having bad credit can result in less than ideal loan terms. You might very well struggle for approval on a loan for an automobile or a new house if you have poor credit. Unfortunately, a bad credit history can reach farther than your pocketbook.

If you are in the market for auto insurance, a poor credit rating can make it difficult for you to find affordable insurance. Many insurance companies charge higher premiums for people with poor credit. This might sound like a financial issue, but it is much more than that. If you cannot find affordable car insurance, you might not be able to drive! This might not be so bad if you live in an area with public transportation but does create problems if you live where there is no or minimal public transportation.

You probably do not give your credit history much thought when you are applying for a job, but you should. A poor credit history and credit score could prevent you from being hired from a job. There are employers that will request a credit check if they are giving consideration to hiring you. If you have poor credit, the employer might believe that you are not responsible enough for the job. They will probably overlook you for sure if you will be handling finances in your job because they believe you cannot handle your own finances. A poor credit score is not something to take lightly if you are hunting for a new job.

A poor credit history can make if difficult for you to rent a home. Most landlords will request permission to request a background check. If you have a poor credit history, they are not likely to approve you as a tenant. If you have no option other than renting an apartment or house, you could face an uphill battle if you have bad credit. If you are approved to rent a property, it will probably not live up to the same level of quality as a house or apartment you could have rented if you had good credit.

Having bad credit can affect the way you feel about yourself. You might feel as if you are failing your family or yourself if you have not been able to establish good credit. You might even feel embarrassed by your credit problems. This makes it difficult to stay positive and motivated enough to improve your credit rating.

A poor credit history can affect you if you have children who are ready to go to college. Most students do not receive enough scholarships or financial aid to cover their entire tuition and expenses. They might look to you to help them secure loans for college. If you have poor credit, this might not be possible.

Parents often like to help their children when they buy their first new car or their first home. Many parents do cosign for their adult children who need a significant loan. This is something that you will not be able to do if you have very poor credit when they need your help.

It is important to work to build good credit or to rebuild your credit if it is currently poor. Poor credit will have a negative impact on many aspects of your life. It will affect far more than just your pocketbook. Start making responsible financial choices today.

Eliminate Debt by Going on a Spending Fast

Eliminate Debt by Going on a Spending Fast

Consumer debt is at a all-time high. Families are living above their means and using credit to cover the expenses they can not afford. If you are reading this article, I will assume you are at a point where you are tired of debt running your life and ready to eliminate it.

Fasting is traditionally known as a time without food. People in the Bible used a Fast as a time with no food to seek direction through prayer from God. A spending fast can help your family seek direction on your finances by eliminating your current spending habits.

Here are 5 steps to complete a spending or financial fast to eliminate debt

  1. Pick an upcoming month to do the spending fast. Make sure you pick a month that you are able to complete it. Do not pick a month that you know you are going to have some issues with. If you make an exception for one item or event it will be too easy for you to slip off of the spending fast.
  2. Make a list of the expenditures that you truly need for a month and make a vow to not spend over this amount. For example you need gas for your car to get back and forth to work but you do not need gas for your car to travel for entertainment or other events. You need groceries but try to make a vow to only spend a certain amount per week. Attempt to make as many meals as you can out of your pantry. By separating your needs from wants before the month starts you have set the rules and groundwork for your spending fast.
  3. During your month long financial fast make some tough decisions. If a friend calls and asks you to go out to dinner, explain to them what you are doing and that you are attempting eliminate some debt. Ask the friends to come over after dinner to play cards. Cutting entertainment like going out to eat, movies, and even cable can save you lots of money that can be used at the end of the month to pay debt. If something in your house breaks that is not an emergency, try to find a solution to fixing it that is inexpensive. Be creative, look on line for some solutions to different household problems.
  4. Keep a journal. Write down those things that you did not miss and those that you did during the month. Maybe you did not miss going out to lunch at work but did miss taking your kids to a movie. These journals and note entries can be used later to reset your budget. If your spending fast can identify some areas that you spend money carelessly with no real gain then it will prove to be a life changing event.
  5. Track your savings each week and write a check to pay a debt at the end of each week. By using your surplus to eliminate debt weekly you will encourage yourself to continue and get the money out of your checkbook to not be tempted to spend more when the spending fast is completed.

A spending fast to eliminate debt can help a family to pay down debt during their spending fast month and also encourage new habits to be formed that can help them permanently change how they save money. A website with Christian roots that you can sign up for a 30 day spending fast is www.financialfast.com This Christian ministry will pray for you during the fast and send you some encouraging materials to help you along the way.

Good luck on your plans to eliminate debt and I hope a spending fast can get you their faster!

How to Use a Commercial Factoring Company to Finance a Business

Finance a Business

Factoring is designed to increase cash flow when funds are limited and accounts receivable are high. It is short-term financing to solve short-term cash flow bottlenecks. The cash-poor company sells its accounts receivable at a discount to a commercial finance company known as a factor. Cash is made available to the entrepreneur as soon as proof of shipment is provided or on the average due date of the invoice. Most factoring arrangements are made for one year.

Factors make their money by acquiring a company’s invoices and collecting on them, charging the business a fee. Unlike banks, factors buy, pay for, and own the receivables outright. If your creditors don’t pay, the factor may incur a loss. Some factors require that the entrepreneur establish a reserve for bad debt of approximately 5% of the account. If the account is not collected within 120 days, the factor will draw against the reserve. If the receivables eventually are collected, the factor’s return on investment exceeds that of conventional lenders.

Many business owners use factoring when their banker turns down a loan request that they had tried to guarantee with their accounts receivable as collateral. Under factoring, accounts receivable are not used as collateral against a loan but instead are sold directly, at a discounted value, to a factoring company. For example, if the factoring company uses a one-time charge and discounts 6%, then for every $1,000 in receivables, the seller receives $940.

Some factors discount according to a schedule, paying a smaller percentage up front and then paying an additional percentage depending on whether the receivables are collected within 30, 60, or 90 days.

The factor takes over the entire collection procedure, including mailing the invoices and doing the bookkeeping. Each of your customers is notified that the account is owned by and payable to the factor.

If you are a new business and your accounts receivable are evaluated as marginal credit risks, you may not be able to find a factor that will accept your accounts receivable. Let’s face it: although they take greater risks and are more liberal lenders than commercial banks, factors need to be assured that your customers will pay their bills. They will execute substantial credit checks on each debtor and carefully analyze the quality and value of the invoice before buying it; they look to the strengtMof the receivables and creditworthiness of the invoices that you are selling them. Factors will also establish credit limits for each customer.

Factoring is not the cheapest way to obtain money, but it does quickly turn receivables into cash. The advantages of factoring are receiving a cash injection quickly, paying bills in a more timely manner, obtaining more credit, and fostering better growth than traditional borrowing. Also, the fee is an expense and offsets taxable income. Essentially, the entrepreneur is buying insurance against bad debt.

The chief disadvantage of factoring is the high cost of money relative to traditional borrowing. Also, to many entrepreneurs, factors receive outrageously high returns. A business concerned with cash flow but not with collection might want to pursue the less costly route of using accounts receivable as collateral for a commercial bank loan.

Overall, factoring can be compared with using a credit card for your business. Factors work best with businesses that have cash flow problems because of long delays between making and selling goods and then collecting cash. Start-up ventures, emerging businesses, and service companies are prime candidates for factoring. For recommendations and references about which factoring companies to use, talk to your trade associations, to members of the infrastructure, and to other entrepreneurs in your industry.

 

Instant Loans – Funds by Applying Online and Gaining Quick Sanction

Funds by Applying Online

When you need to go to office everyday, you have very little time for other things in your life. This thing may also happen when you are facing the problem of credit scarcity. What can be done in such a situation? Such a person can apply for instant loans without any apprehensions. With the help of this fiscal service, the borrower would get hold of funds by applying online and would be gaining quick sanction.

The mode of financial transfer that is followed here is electronic wiring, this would make the documentation completely nil. One would not waste his time in any undesirable filling and faxing of papers in this process of money lending.

If you want to apply for instant loans, you can put into use the free of cost and no obligation application form that would be given on the website of the money lenders. You should fill this form with your authentic personal information. The borrower would get a rapid approval, as and when the process of verification would be over. In as quick as 24 hours, the money would get transferred into your bank account.

Depending on your settlement ability as well as monetary ability, you can grab small cash advance that falls in the range of £80 to £1500. You have to pay this credit aid back in the comfortable repayment tenure of 1 to 30 days. One can do a number tasks that hold importance for him. You can pay the credit card installments, can pay the household and utility bills, can get small house modifications done, can send the car for a repair job and so on.

There is no need for you to give credit confirmation. IVA, arrears, insolvency, bankruptcy, foreclosures, CCJs and so on are no-issues at all for the lenders.

Guide to Finding the Best Fixed Rate Cash ISA: How to Identify a Best Buy Cash ISA – Higher ISA Interest Rates

intrest

With the Bank of England holding base rates at their lowest level since 1694 (currently just 0.5%), achieving a decent return can represent something of a challenge. Barclays and Halifax cash ISA’s currently offer savers just 0.1%. Whilst many people settle for these rates, it is possible to perform a cash ISA transfer to a fixed rate cash ISA. This allows the saver to enjoy a better return in exchange for locking up their money for a specific period of time.

Fixed Rate Cash ISA

From April, it will be possible to invest up to £5,100 into a best buy cash ISA. The figure is currently capped at £3,600. The longer the fixed period, the higher the ISA interest rate banks will offer. This is because the likelihood of the Bank of England increasing base rates grows over time. Whilst there is a degree of risk involved for the saver in terms of rates increasing, it does allow someone who is retired to enjoy a more stable, dependable monthly income.

Perform a Cash ISA Comparison

An online comparison site, such as moneysupermarket.com, allows a saver to compare ISA interest rates. Whilst it is possible to visit each bank or website individually, this can prove an extremely time consuming process. All that the saver needs to do is specify their requirements (account type, amount of investment capital, required timeframe etc) and the market will be trawled for the best buy cash ISA.

Cash ISA Transfer

Once a cash ISA comparison has been performed, it is possible to transfer the proceeds. Whilst current guidelines state that this shouldn’t take more than 30 days, it can take longer towards the end of the tax year as business volumes are considerably higher. It is imperative that a saver checks to ensure that there isn’t a penalty for early withdrawal as this will erode the majority of the financial benefits.

Rachel Thrussell of Money Facts, stated that: “With rates so low it is even more important than ever that consumers check what rate they are being paid on their ISA, as many institutions offer several different ISA’s paying vastly different rates. One thing they need to watch out for is ‘transfer-out’ penalties, otherwise they could find out that any increase in interest is wiped out by this charge.”

A fixed rate cash ISA will provide a saver with a higher rate than can be achieved through an account offering a variable rate. It is important to be aware of any early withdrawal charges as these could undermine the benefits of a cash ISA transfer. Never lock away money that may be needed for an emergency. Those seeking a potentially higher return should consider a stocks and shares ISA.

How a Balance Transfer Could Lower a FICO Score: Interest-Free Credit Card Transfer without Hurting Your Credit Score

Balance

Consumer debt has risen sharply over the past decade. The Nilson Report showed that the median credit card debt stood at $10,679 at the end of 2016. Not surprisingly, this has led many U.S. consumers to turn to interest-free credit card transfers in order to reduce any outstanding personal debt.

A balance transfer performed incorrectly could damage a FICO score and make other borrowing sources, such as home equity loans, less affordable. It is important to establish the correct approach to reduce interest payments on credit card debt in order to protect a personal credit score.

What Does an Interest-Free Credit Card Transfer Involve?

After using a comparison site to trawl the market, select the best credit card deal. An interest-free credit card transfer or a transfer at a low rate for the life of the balance is most preferable. Select the right card, provide all the requested information, enter the balance transfer details and the FICO score will be checked by the lender. The new card provider will carry out the balance transfer. It will take a few weeks to take place and most lenders charge a transfer fee of approximately 3%.

How Not Making Interest Payments Helps to Clear Credit Card Debt

A consumer has $10,000 of credit card debt at 15% APR. An interest-free credit card transfer fee of $300 will be added to the amount owed. However, after a period of 12 months, the balance transfer will help save $1,200 in further interest payments. This gives a consumer the opportunity to reduce personal debt.

Why Does a Balance Transfer Reduce a FICO Score?

  • Each credit search is recorded and will cause a credit score to go down slightly.
  • A balance transfer from a card with a high credit limit to one with a low limit will negatively affect a FICO score. Provided that the consumer pays-down the level of credit card debt, a FICO score will recover within a few months.

Interest Free Credit Card Transfers May Soon End

President Obama changed the law with regard to the application of card fees and charges. Credit card debt is no longer the cash cow it once was which means that balance transfer deals will shortly become fewer in number. Providers have traditionally banked on the fact that they were able to apply fees and charges to client balances for making late payment. They have enjoyed the complete freedom to increase the rate of APR on a balance at any time. Neither of these will be possible from February 2018.

* Legal changes were introduced by the Credit Card Accountability, Responsibility and Disclosure Act.

It is sensible to take advantage of interest-free credit card transfer whilst they are still available to consumers. Always pay-down the debt if transferring from a card with a high to a low credit limit in order to ensure that a FICO score isn’t negatively affected. Balance transfers normally involve a fee of 3% which will increase the level of personal debt in the short term.

Consumer Credit and Debt Counseling: Receive Financial Help and Learn Essential Economic Instruction

help

In the current economy, more and more people are facing debt issues. Debt is piling up and many people no longer have the appropriate means to handle the situation. Many consumers are reluctant to ask for professional financial help, and insist on handling the situation by making private financial adjustments.

Sadly, if an individual is in moderate or severe debt, imposing personal economic restriction rarely succeeds. Due to this issue, when a consumer finally turns for professional help to address debt concerns, the problem has become critical and paramount.

When fiscal hardships can no longer be handled in a proper fashion, consumer credit and debt counseling can provide relief as well as essential financial education.

Credit Counseling

The job and objective of a credit counselor is to look over an individual’s entire financial history. Credit counselors not only review debt, but income, expenses, and personal finances as well. Using the entire financial picture, counselors are able to determine the proper credit solution for an individual’s situation.

Credit counselors will also discuss the consumer’s credit debt with that individual’s credit card company. This process allows the credit card companies to possibly lower the interest rates so the individual in question can pay off debt in a sensible fashion.

Debt Management Programs

When a consumer becomes enrolled in a debt management program, all of that individual’s debt is entered into the program and all credit is halted. The individual is also forbidden from applying for additional credit. This process allows the “brakes” to be applied and the consumer can focus on paying off the mature debt rather than accumulating new financial difficulties.

In the debt management agenda, the consumer makes a monthly payment to the debt management counseling service. The counseling service will then compensate the creditors.

Debt Settlement Plan

When an individual doesn’t qualify for a debt management program, debt consolidation is always a recommended option as well as the idea of debt settlement. In the debt settlement process the counseling service will consult with the individual’s creditors for a reduced balance.

Debt settlement allows the individual to pay the reduced balance instead of the original balance. Debt settlement is usually the last debt counseling option and is usually reserved for those in very large debt.

Live Debt Free

When a consumer takes advantage of these debt recovery options he or she can regain financial stability. Through the consumer credit and debt counseling process an individual can learn better spending habits and money management skills.

How to Pay off Your Debts: What to Do in Order to Become Debt-Free

pay

The following is a guest post from Brabble Director of Business Development Patrick Mackaronis.

There is no magical way to get out of debt. It requires careful planning, sticking to a budget, consolidation of debts, and then calculating the best order in which to pay them off.

Controlling Expenses by Sticking to a Budget

In order to control expenses, one must first know what they are. So the first step is to record everything that is being spent. This is difficult to do, but quite possible. The individual should then work out where money can be saved, perhaps on food by shopping at cheaper supermarkets, or on fuel bills by changing supplier. Money can be saved on things like car insurance and home insurance by shopping around, and every little bit saved can go towards making you debt-free.

Consolidating Debts

All debts have different interest rates. Many people have a great deal of credit card debts at a high rate of interest, because over-spending on credit cards is so easy. Bank loans, on the other hand, have a much lower rate of interest. If possible, get a relatively low interest loan, and use it to pay off the credit card and other high interest debts.

What Order to Pay off Debts – the ‘Debt Snowball’

The ‘Debt Snowball’ is the tried and tested way of paying off debts – and it works.

Basically one pays off the debts with the highest interest rate first. The individual first needs to list all their debts in descending order of interest rate, regardless of the balance. Determine the most money you can make available from your budget to pay off debts, and apply that to the debt with the highest interest rate. As soon as one does that, the amount owing will be reduced. The next month, the individual pays off the same amount of the debt with the highest interest rate. On all other debts, continue to make the minimum payment.

When the first debt is paid off, continue the process with the debt with the next highest interest rate. At all times, stick to your budget, and continue to pay off the same amount each month.

As the individual continues to do this, the amount of interest gradually reduces, and more money is being used to pay off the actual debt, ie the process ‘snowballs’.

Various websites provide online Snowball calculators so that the individual can see for himself how the process would work for him.

If a person follows the above process, he or she can become debt-free in a surprisingly short time. It is not easy, but the main things that are required are planning, self-discipline, and organization. It can be done!