• 03Feb
    Business growth

    So you are just about to start your very own business. Being your own boss. Couldn’t get any better than this. Well have you made any money, have plenty of clients, and are you getting the word out about your business? Sure you may have made some money and slowing are getting the word out but, what if you were able to know wholeheartedly that you are taking all the correct steps to set your business up for success. Many people have started business and only last so long before throwing in the towel. It’s not easy and not for everyone. You may not know where to start and could just be winging it. If so, good luck to you is all I have to say. You may want to read this little bit of information to give your business and extra leg to stand on. This information may even help you avoid failure. The five things listed below will help guide to the path of financial success.

     

    What’s Your Business Idea?

    Is your business unique? Will it attract a wide variety of people? Do you know who your customers are? Can I afford this? Will I make money? These are questions you should ask yourself before doing anything. You need to sell something that people want and, that would make their lives easier. You want to be able to also expand and grow as a business. Hopefully you answered yes to the question above because if so then you have something to offer people and a good idea. Now that you have decided what you are selling then it’s time to create a business plan. Organize and plan out what you need to do to get started. There are even online platforms that can be used as a guide to help you plan.

     

    How To Keep Your Savings and Get Your Business Started

    Tapping into your savings account just to start your business is a big no no. That is the worst thing you can do. Either you have money to start or you need to figure out a way to get some money. Think about how you are going to market your business. Use Social Media to get what is called crowdfunding. Another thing to remember is that profits are what keep your business going. Profits are not something that should be in your personal bank account. Make another account just for your business. That way you will never take advantage of those earnings and know what is yours personally and what is the business’s.

     

    Know You Might Fail

    Accepting the fact that many people are going to tell you no. Time and time again. You must believe in your business and have full faith in the fact you are going to be a success. No matter how many times you hear the word no. Someone will say yes. Investors want to work will someone that is fully invested into their company with confidence. Learn from each time someone says no. Move on and improve your tactics.

     

    Fake It Till You Make It

    What I mean by this doesn’t actually have to do with lying at all. That will get you nowhere and lead to a bad rep. You never want a bad rep. Think about words you can use when marketing your business. Think innovatively and make people understand why your product is the best.

     

    You Will Need Help

    Being a business owner completely on your own can run you down. You may get confused and overwhelmed. Think about like minded people you know that could potentially help you with success. Keep the jobs you want and are good at. Give the rest of the other jobs out to the people you have so carefully picked.

     

    So use these tips, get out there. Be a successful business owner and live up to your full potentional.

     

  • 01Feb
    Categories: Lending Comments: 0
    payday loans

    When you need a quick loan, the easiest way to get it if you have less than perfect credit, is to take out a payday or car title loan. In order to obtain a payday loan, you show the lender your most recent pay stub. Based on how much you make per week or per month and how much you need to borrow, is calculated to give you a loan amount with interest. Similarly, car title loans allow you to receive a loan, by giving the lender the title to your vehicle, assuming you own the car. Because these types of lenders do not tend to look at credit and focus more on current income and property, it is a popular choice for those who might need some quick cash. Many believe it is a trap for low income individuals and  for this reason, the Arlington City Council in Texas has voted to restrict where payday and car title lenders can do business.

     

    Vote in Arlington

    Arlington City Council officials will have to take a second vote to finalize the new restriction. The measure would create a land-use designation, in which new lender businesses would have to stay a certain distance from residents, highways, and other lenders. In doing this, lenders who are involved in shady business practices and offer clients high-cost refinancing options will not be as widely available to the lower income populations. These new zoning requirements would completely separate payday and car title loan lenders from more reputable loan sources, such as banks, credit unions, and other financial institutions. New restrictions would also only apply to new businesses being opened in the Arlington area. Existing lenders would be considered grandfathered in, except in certain situations. For example, if a fire were to cause more than 50% damage to a lender’s location, they would be unable to rebuild in that exact location if it does not meet the specific zoning requirements.

     

    Recent changes to how lenders do business

    Arlington City Council members met on November 18th of last year to develop new ways in which payday lenders can do business. These new laws went into effect on January 1st, and are very similar to how car title loans work in San Antonio, Texas. Now in both Arlington and San Antonio, payday loans are limited to 20% of a borrower’s gross monthly income, loans are limited to no more than four equal installments during the payback of the loans, and it is forbidden to either renew or refinance installment loans. Auto title loans are limited to whichever is lesser, 3 percent of the borrower’s gross annual income or 70 percent of the vehicle value. Payday lenders are also required to keep loan records saved for three years minimum, and provide any customer who receives a loan a list of nonprofit, credit counseling providers.

     

    How new zoning helps borrowers

    Council member Jimmy Bennett said that he believes payday and car title lenders were dealt with fairly. People in the area would take out a loan without thinking about the amount they would need to pay back, including interest, and fail to pay back their loans on time. This helps regulate loan amounts and locations, which can be a benefit for poorer communities.

  • 21Jan
    Summer woman driving a convertible car

    Have you had to take a long journey away from home and you just don’t want to add mileage to your own vehicle and now decided to rent a car instead? There are many people like you who have made that choice. Does it really save you though? If you were to hire a car during your vacation or hire one to travel to another city to do business, you may find it very costly, unless you check out the advantages first.

    Seeking Solutions

    When you are seeking solutions for an affordable rental car, there are essential factors to consider. The first thing you should pay attention to is the hidden fees associated with renting a vehicle. Yes, there are hidden fees that many car rental companies charge. In addition, there are many times when you are not aware of the fees because they don’t tell you. You would be shocked if you spent some time to ask questions and thoroughly assess your final invoice.  

    The Mileage

    One way that the rental car company can get you to pay more is not to offer unlimited mileage option. Some rental car companies will even charge you additional for each mile you travelled. That means you have to pay for fuel and for the time that you drive. Before you book a rental car, be sure to question their fees and request a final dollar amount. You don’t want any surprises when your trip ends.

    Advance Booking

    Sometimes, when you book the vehicle in advance, you will be offered a discount. This can add to your savings. Once you know the date of travel, go on the Internet and begin the search for the right rental vehicle for hire. You have a better chance of getting it at a discounted price with advance booking. If you wait until the day of your travel, it will cost you more since vehicles are always in high demand.

    Vehicle Size

    The size of the vehicle also dictates the price. Try to choose hybrid vehicles or economy or compact vehicles. You will be able to drive for longer distances on the fuel that you have to pay for. In other words, smaller vehicles save more on gas.

    Added Services

    Be sure you understand and establish any added services that the rental car company wants to put on your bill. This could include theft insurance, car insurance or risk insurance. The company may offer unlimited mileage or a GPS feature, which cost more. Yes, you want the perfect deal, but at the lowest price.

    Leverage the Internet

    If you don’t already know, most rental car companies have “Internet Only” deals. So before you call, conduct an online search to see what is available. Afterwards, you can call the rental car company to compare the price. You will be surprised with the difference in savings.

    Prior to choosing a specific rental car company, it is best to make sure that you are doing business with a reputable company that offers reliable and trustworthy service. You should be able to choose the vehicle you want and the amount that you are willing to pay.

  • 14Jan
    saving money

    Everyone knows that it’s important to save money and to do so regularly. However, for many people, that’s something that is easier said than done. If you’re like so many others who find the prospect of saving money to be a little (or a lot) daunting, don’t worry. There are many super simple but effective strategies you can use to save money quickly…almost without noticing you’re doing it!

    A Dollar a Day

    Most people like the idea of having a lot of money saved up. What they don’t like, however, is the idea of having to part with a lot of money all at once. To solve this conundrum, just save a little bit every day.

    A dollar a day is an excellent way to give yourself thirty extra dollars per month (plus interest). If you’re not ready to commit to that much, though, every little bit, even if it’s just a quarter or fifty cents per day counts for something. You can stash the money in a jar and then deposit it in the bank once per month or so.

    No matter how you do it, you’ll get into the habit of saving, which is the most important thing of all!

    Stick to a Budget

    If you really want to get serious about saving, go ahead and draw up a monthly or weekly budget based on your income. Plan the budget to include all the things you have to pay, like bills and basic necessities. When you’re done, you’ll know exactly how much disposal income you have to work with, and you can aim to save half of that disposable income (or whatever amount works for you) per month.

    Ditch a Bad Habit

    There are very few perfect people in the world, so there’s a pretty good chance that you have some kind of bad or unhealthy habit. There’s also a good chance that, whatever your bad habit is, it’s also a costly one.

    A smart thing you can do, though, is to ditch the bad habit, whether it’s smoking, drinking soda, or anything in between and to put all the money you save directly into savings. So, if you quit smoking and you smoked a pack a day, you’d figure out the cost of a pack per day and then deposit that amount in your savings.

    You’ll get rid of a bad habit and save money too; what could be better?

    Profit from a Hobby

    Finally, if you have a potentially profitable hobby, why not turn it into a money-making venture? You could sell your arts and crafts or go into professional cake making, for example. It doesn’t matter what the hobby is. If you can turn it into a way to make a profit, you can stash that money straight into your savings account.

    As you can see, saving doesn’t have to be super difficult, not if you’re creative and willing to find simple but effective ways to save that work for you.

     

  • 29Dec
    Categories: Lending Comments: 0
    Handshake with the transfer of money

    Is peer lending the right thing for you? Many consumers are choosing peer lending as a viable solution to handle their borrowing needs. This is as a direct relation to the decisions being made by the credit card and banking procedures. Many consumers are being faced with the ongoing challenges of tough lending practices.

     

    Saving Money

    Some consumers are not able to get a personal loan or when they can get a personal loan, it is only those with high interest rates. There are many peer lending services that offer lower rates (as low as 7%) and so that is why consumers are switching to save money on lower interest rates compared to what the credit card and banks would charge. For that reason, peer lending companies have the ability to compete with financial institutions and credit card companies. With no overhead costs or operating costs, peer lending companies can offer lower interest rates.

     

    Specific Requirements

    For consumers with better credit scores, peer lending services offer the ability to borrow larger amounts at a fairly low interest rate. However, despite this, not all consumers will get one of these loans. There are still specific requirements that have to be met by borrows prior to receiving one of these loans. There are a wide range of different requirements as it relates to the different companies. It could be the borrower’s credit score. It could be a threshold of debt to income ratio. It could be the number of delinquencies, credit inquiries and how credit has been utilized by the borrower on other credit cards. Most lenders still prefer to have a screening process to limit the borrowing risks.

     

    The Process

    You may be wondering how the peer lending process works. It is similar to the business model where the lender and the borrower directly work out an agreement without having a third party lender involved. Peer lending uses an online platform where the borrower lists their loan requests, which includes the amount, the terms of the loan and the interest rate. A number of lenders bid for the loan listing that fit their criteria. The lender also looks at the borrower’s profile, which should include the borrower’s monthly expenses, income, creditworthiness, credit scores and any other necessary information. These parameters are used to calculate the borrower’s debt to income ratio in order to determine qualification.

     

    The Borrower and Investor Relationship

    For borrowers, the goal is to get a higher loan amount than traditional banks offer. For the lender, there are risks associated with lending a higher amount, but they are willing to take that chance. In fact, most of these investors have calculated their risks and found ways to minimize those risks. On the other hand, some peer lending companies also have investor requirements of a specific net worth and yearly gross income. With these requirements, investors then prove that they can tolerate the financial risks that may be involved with the process.

     

    Closing

    The peer lending trend is one that is going nowhere as borrowers are tired of being turned down by financial institutions and credit card companies. Before you seek peer lending service, it is best to be aware of what is involved and understand your responsibility.

  • 18Dec

    businessman looking to graph

    Do you have a lot of debt? Have you borrowed a lot of money and are now having a hard time paying it back? If you answered yes to those questions, then know that you are not alone. Millions of Americans struggle with debt, but fortunately, there are ways to gain control over debt and to get back on the right track.

    One option that you have is to consolidate all of your loans so that you’re just making one payment instead of trying to juggle several at once. There are many advantages to going this route, and, while it may not be for everybody, it is a great choice for many people.

    Save Money

    To begin with, it’s important to understand how loan consolidation works. Basically, you take out a single loan, use it to pay off all your other loans, and then just focus on paying back the remaining loan.

    As long as you get a good interest rate on your consolidation loan, this strategy can end up saving you a lot of money, especially since most of the debts you were trying to pay off likely had high interest rates. When you’re just paying on a single low-interest loan instead of paying on several high-interest loans, you’ll save yourself a lot of money each month and in general as well, which can help you to get your credit back on track more quickly.

    Just Make One Payment

    When you have a lot of debt that you’re struggling to pay off, it’s easy to get overwhelmed. There are multiple due-dates to remember, multiple addresses to send the payments, and so many other details that it all gets confusing, and when people get confused, they often make costly mistakes or miss payments altogether.

    You can put an end to the madness (and the stress that goes along with it!) by consolidating your debt. Once you do that, you’ll only have one payment and one due date to keep track of, and that’s a WHOLE lot easier!

    Get Help for the Future

    If you go with the right debt consolidation firm, you may be provided with free credit counseling as part of your agreement. This counseling can be infinitely helpful for those who struggle with money, debt, and all things financial. With the right counselor, you could end up learning better habits that will help you in the future and creating detailed plans for how to get and stay out of debt for good. Imagine having that kind of financial freedom for good!

    Of course, not all loan consolidation firms offer this option, so check to be sure that yours does and that it’s just a good, reputable company in general. The firm you choose can make all the difference, but if you do choose carefully, you can enjoy all of the advantages discussed here and many more.

  • 14Dec

    Usually, a company will seek financing help in order to grow and maintain their business. These business owners will usually try to find financing from traditional sources such as unsecured bank loans. Why? This type of financing is thought to be less costly when it comes to borrowing a loan.

    Financing Issues

    However, for a lot of small business owners, financing is an issue because they may:

    •       Not have a long business track record
    •       Not have the credit rating required

    For this reason, many small business owners’ loan application from a traditional bank may be rejected. This has been the case in the most recent years after the economic crisis in the United States. Lenders were and still are cautious about approving these types of loans.

    Lines of Credit

    Oftentimes, there are some small businesses with lines of credit from traditional financial institutions, but still are unable to acquire additional funds since the extension of funds beyond the credit limit is a concern. For that reason and in such situations, the future growth of the business could not be based on a traditional bank loan.

    Based on Assets

    In this case, what should a business owner do when there are outstanding account receivables and because of this, the business is at a shortfall as it relates to working capital? In a situation like this, the business can look at a different form of financing such as asset-based lending. Now, what are some of the differences with traditional financing and asset-based financing? What are the advantages one has over the other? Let’s explore.

     

    1. The Differences

    Asset based lending allows the business owners additional flexibility for financing the existing operations and the business needs for further growth. In comparison, traditional lending from a bank requires the financial institution to lend on the premise that the business will have to be first assessed. It also involves a projection of the business’s future cash flow. Asset based lending is based on the company’s collateral and not on the success of the company’s operation.

     

    1. Accounts Receivables

    The typical asset based loan is made against the accounts receivables. In this case, the lender will advance a specific amount of money to the business in lieu of how much value is placed on the receivables provided to the lender. The rate of advance is usually between seventy percent and ninety percent. Instead of sending accounts receivable payments to the borrowing company, the creditors will send payment directly to the lender. The lender, in turn, will provide the appropriate balance to the borrowing business, subtracting any fees charged on the loan and any potential fee for the management of the collection process.

     

    1. Revolving Credit

    Asset based loans are considered revolving lines of credit, which means that when the accounts receivable balance goes down, it provides additional source of funds for the business owner. Even though lenders of asset based loans also consider other assets such as equipment, inventory and real estate, accounts receivables are usually the most frequently used collateral and this is largely due to the fact that it carries a significant amount of liquidity.

     

    1. The Loan Process

    Lenders of asset based loans place more emphasis on the quality of the business’s collateral and not necessarily on the credit rating or cash flow of the borrowing business. The borrowing business’s ability to repay the loan is what is evaluated. The business’s track record of how previous payments have been made will establish their worthiness in being considered for additional credit. In the case of a traditional bank, the internal lending standards leave the lender to be more restrictive in the loan process.

     

    1. The Restrictions

    For instance, traditional financial institutions like banks won’t approve a loan for a company that has a debt-to-capital ratio of more than 4:1 or 5:1. In comparison, an independent lender of asset based loans will not be subject to these restrictions. For that reason asset based lenders are free to finance small businesses with low capital or those that have not met the internal lending standards of a traditional bank. Instead, the asset based lender looks at the long term prospect of the business.

    Conclusion

    Because the asset-based lender does not use the borrowing company’s performance as it relates to operation, but looks more at the quality of the accounts receivables, the business does not require as much financial covenants as a traditional loan requires.