Posted by admin on Feb 20, 2011 in
Finance Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.
Develop a business plan and loan package that has a well developed strategic plan, which in turn relates to realistic and believable financials. Before you can finance a business, a project, an expansion or an acquisition, you must develop precisely what your finance needs are.
Finance your business from a position of strength. As a business owner you show your confidence in the business by investing up to ten percent of your finance needs from your own coffers. The remaining twenty to thirty percent of your cash needs can come from private investors or venture capital. Remember, sweat equity is expected, but it is not a replacement for cash.
Depending on the valuation of your business and the risk involved, the private equity component will want on average a thirty to forty percent equity stake in your company for three to five years. Giving up this equity position in your company, yet maintaining clear majority ownership, will give you leverage in the remaining sixty percent of your finance needs.             Â
The remaining finance can come in the form of long term debt, short term working capital, equipment finance and inventory finance. By having a strong cash position in your company, a variety of lenders will be available to you. It is advisable to hire an experienced commercial loan broker to do the finance “shopping†for you and present you with a variety of options. It is important at this juncture that you obtain finance that fits your business needs and structures, instead of trying to force your structure into a financial instrument not ideally suited for your operations.    Read more...
Tags: Business, Debt, Equity, Finance, Finding, Right, Small
Posted by admin on May 17, 2010 in
Finance Automobile financing can be complicated when you do not know where to look. There are so many options and you want something that is affordable. You can spend a great deal of time looking for affordable financing, simply because you are not looking in the right places. That is why you need to go to the best places to find your automobile financing.
First, never get your financing from the dealership. Dealership use inflated rates and put confusing words in their agreements so you think you are going to get a better deal than you actually are. You will almost never get the kind of financing you want at a dealership unless they are offering 0% financing. Remember, though, that you will have to repay the loan in three years in order for that to work.
You really want to look outside the dealership for financing. You will be able to get better terms, which will make the vehicle much more affordable.
Your bank or credit union is a good place to start for vehicle financing. Often, you will be able to get great rates through your own financial institution. On top of that, they can automatically deduct your payments so you will never be late on a payment.
When you choose your bank, it is easy to get a prime rate. That means you will save a great deal on interest.
If you are not pleased with the rate offered by your bank, you can then go on the internet and browse financing options. Your best bet is to use a site that offers comparisons. You can then search for the lowest interest rate. Read more...
Tags: Automobile, Best, Financing, Finding, Rates
Posted by admin on Feb 14, 2010 in
Credit Tips
If you are thinking about finding financing for a new vehicle, but your credit has suffered in the past, you may think that all bad credit lenders are the same.
Fortunately, there are companies that are willing to issue automobile loans for bad credit without unnecessary hassles or harsh contract terms.
Hector Milla Editor of the “Direct Auto Loan Lenders” website — http://www.DirectAutoLoanLenders.com — pointed out;
“…When you are looking for a bad credit lender, focus on choosing a lender that specializes in helping consumers with poor credit scores. These lenders understand that financing a vehicle with bad credit can be a challenge, so they will do everything possible to make the loan application process easy and painless. Specialty lenders have the expertise and experience to help you get into the car you want, without all the hassles of traditional financing…â€
A good lender will also be able to get your loan approved regardless of your financial history. There are auto lenders than can even finance consumers who have declared bankruptcy or had a vehicle repossessed in the past. They understand your desire to rebuild your credit, and view vehicle financing as a means to help you get your credit back on track.
You should also look for a lender that will be willing to explain the terms and conditions of your contract. Some bad credit lenders gloss over important terms that can cost you time and money down the road. A good lender will make sure you understand what will be expected of you, and what you can expect during the life of the loan. If there are prepayment fees or other potential charges, your lender should tell you about these terms up front. Read more...
Tags: Automobile, Credit, Finding, Good, Lender, Loans, Tips
