Archive for: ‘November 2014’

Looking For Motor Car Financing On The Internet

November 9, 2014 Posted by admin

When it comes to taking out motor car finance the easiest and quickest way to search the whole of the marketplace for the cheapest deals is with a specialist car loans website. A website such as this will not only know where to look to get the most suitable loan for your circumstances but they will also offer advice, hints and tips on knowing which is the right car finance deal for your particular needs.

There are many different types of motor car finance and your circumstances will dictate which type will be most suitable for you needs. The number one factor which goes a long way to you deciding which type of loan you need is your credit rating, this is the first thing that is taken into account when you apply for a loan and not only will it depend on the type of loan you get but also the rate of interest you will pay.

For those with a very poor credit rating the best choice and perhaps only choice when it comes to motor car finance will be a bad credit car loan. A bad credit car loan will mean that you have to pay a higher rate of interest for your loan but it will at least be a way of getting approved for credit to buy your car. By going with a specialist website and allowing them to get quotes on your behalf you will get the cheapest rates and best deals available for your circumstances.

If your credit rating is excellent then you will have access to a wider range of choices for motor car finance along with the lowest interest rates. If you are buying a brand new model and want to spread the cost of borrowing a large amount of money over several years, then a secured loan might be the best way to go. However the biggest disadvantage of taking out a secured loan is that you will have to put something of substantial value against the loan and this is usually the roof over your head. Another downside to taking out a loan over many years is the amount of interest that will be added onto the cost of the loan, you also have to remember that a cars value will depreciate and take this into account when deciding how long to take the loan over.

When getting the cheapest motor car finance deal there is more to take into consideration than just the rate of interest that is advertised. You also have to be sure that the rates you are comparing are the same, some lenders will advertise low interest rates but when you look at them they are quoted on weekly or monthly terms not the year. This is another advantage of going with a specialist website, the quotes should all show yearly APR rates which makes comparing easier. The quotes should also come with the key facts attached and this is where you are able to find such things as any hidden costs, the total amount of the loan and the amount of interest that you will pay over the term of the loan.

A specialist car finance website should also be able to give you help and advice freely and information so when it comes to comparing and choosing motor car finance you have knowledge regarding what you are looking for. Loans are not the easiest thing to tackle on your own so it is imperative that you go into it with as much information as possible before signing on the dotted line.

Personal Finance Industry

November 9, 2014 Posted by admin

Cash back credit cards are one of the latest crazes to sweep the personal finance industry. In addition to that, it also provides some host tools for the management. The group attributed much of the growth in popularity to inflated demands arising from recent energy price hikes and the increases in the average costs of food. Checking your credit report annually can help you catch mistakes and fraud before they wreak havoc. The claim can be sought resulting in mortgage claims, credit agreement claims, secured loan claims. When it comes to the best management, what is noticeable in the beginning is not a guarantee for the safety and stability of your future. Learning at a young age is important.

You will know that you are benefiting from truly cheap credit cards if you check the way in which everything is going to look once the standard rate starts rolling the ball. The issue of preliminary rates practiced with quite a number of offers of cheap credit cards may be rather confusing. If you are need in some professional advice for your situation, then you can go ahead and search for consulting experts. We have access to multiple subjects and we are sure to find some of the best experts to provide us with the much needed assistance, imparting valuable knowledge. The advent of the World Wide Web has brought numerous advantages. As you can see, the range of subjects covered is incredibly diverse and you can resolve more than one problem by using such a website.

Today, many years after the Internet was introduced, we have the liberty to do our shopping online, inquire about banking services and get assistance. Since unsecured loans are based on your credit and repayment history, you will have to convince lenders that you can handle in an organized fashion. A current account mortgage can, therefore, provide a borrower with many features and paying off their mortgage as soon as possible. It is a sensitive subject for many people so advisors often visit people in their homes. The second most popular category is news, followed by health care and medical information, religious and spiritual material, games, business and personal finance information and sports hobbies. in that order. Loan Offers For those in needs, the site suggests some great loan offers that are available at different amounts and different rates of interest.

There are other areas of personal finances that are just as important like investing and building your personal wealth, but those are topics that you can concentrate on when you have the basics covered. But insurance policies are the only real way to make sure that your loved ones and your personal finances will be protected in the face of the worst problems. Instead, it really is all up to the individual and their own personal finance skills in terms of what makes them better or worse than the next person. In terms of managing money, there is really no adequate set of rules that determines what gender is better at managing their personal finances. Sometimes, our ignorance about the world of personal finance leads us to obtain loans that are a costly proposition. Although financing a home can be supported by your personal finances, sometimes it does make sense to finance the project especially if your home itself can finance the renovation. Too often potential home buyers will spend more time telling everyone what type of house they plan to buy and in what area, but not enough time researching their personal finances, the cost to buy, the location or the real estate market.

The more confident consumers are about the economy, the more likely they are to spend. I know of one personal finance professor who teaches his class using just the book The Millionaire Next Door, a cheap book you can buy for under $10 used any day on Amazon. There are computer programs available which can help you manage. The high interest rates on personal loans at a finance company might get people to thinking. But if it helps to expand your knowledge, or if provides you with just one tip to go out and improve your knowledge, these articles may indeed proved a worthy aim. If you are operating a business under your name, and have not filed any official paperwork with the government or with lawyers and accountants.

All About Residual Car Finance

November 8, 2014 Posted by admin

Are you searching for a residual car finance company? These days this particular method has grown pretty popular among many customers and buyers who prefer the options it offers. It certainly reduces too much headache from the buyers perspective. Basically, the buyer of a vehicle can make a lump sum payment at the end of certain time instead of having to make a down payment, as is normally done.

Since many people look for this type of an offer from their financer, there are numerous companies out there offering these deals. However, you must know what kind of offers is available and the conditions required to be fulfilled in order to make avail such offers.

Easy payment:

Residual finance options offer an easy payment option to the buyer of a vehicle. You can make a loan arrangement with a financing company and will only have to make payments at the end of a certain term. That way you can avoid a down payment which can be a big sum of money and all the more, something that might affect you financially. Also these payments that you will make can be worked out in a way that they are affordable for you and not problematic. Interest rates are lowered and hence your monthly payments also reduce. So this is a very good option to go for.


However, there are certain criteria for which residual finance options are offered:

1. Credit record must not comprise of defaults/judgments.

2. A valid driving license of South Africa.

3. A bar coded RSA identity that must be valid.

4. Vehicles should not be ones before 2003.

5. The vehicles must not be stolen, recovered or accidentally damaged.

6. Vehicles must be registered in South Africa.

7. Minimum monthly income of buyer should be R6500.

If you fulfill the above mentioned criteria, you are well eligible for a residual refinance option.


A lot of customers bear testimony to the fact that this refinancing option has helped them in a big way. Financial matters become easier to take care of and that too within their working budget. Thereby, this kind of financing has become largely popular too.

If you are having problems meeting your obligations pertaining to financing matters of any vehicle, you should be considering residual refinance. It will go a long way in helping you out mostly by easing off a major headache with your finances. Get in touch and get figure out the best plan for you.

Save Tax With Mutual Funds

November 7, 2014 Posted by admin

In the story about the ant and the grasshopper, the ant was considered smart because he saved all his sugar for a rainy day, while the grasshopper paid the price for squandering away his time. Unfortunately even amongst the most diligent of us humans, whether your personality is like the ant’s or grasshopper’s, if you are earning an income, you’re going to have to save a portion of it for the state as tax. This can get rather, taxing over the long run, so it’s always good to look for ways to park your funds in order to get a tax break. One of the easiest and safest methods is with mutual funds. A mutual fund is an investment product created by a fund company. Investors buy units or shares of a fund and the money collected goes into buying securities. There are various kinds of mutual funds like stock, equity, bond and hybrid funds based on what it is invested in. A fund has a net asset value or NAV which is the rate of a unit share of the mutual fund in the market. Investors generally pay a premium amount at regular intervals till the term of the fund matures. When the return of it is higher than the amount it was bought at, this is referred to as the capital gain which is usually taxed in investments.

Usually capital gains are what are taxable for investors. However with it, there are exceptions. A short-term debt fund that is redeemed within a year is taxable. However if held for longer than a year, the capital gains tax is significantly reduced. Similarly, an equity fund held for more than a year, the tax is seriously reduced and in some cases may be negligible. On the other hand, dividends from both equity and debt funds are bereft of taxation.

Some things to look out for when you want to make sure you’re investing in a tax saving fund is to look at the kind of fund you are investing in i.e. whether it’s equity or debt, the term you plan to hold the fund i.e short-term or more than a year, whether the income is dividend or capital gains. Some capital gains may be reinvested to save on tax, so make sure to check on this. It’s worthwhile to do some research on the top mutual funds to invest in and have a look into the fine print. The tax benefits will usually be mentioned so make sure to compare them to arrive at what suits you best.

Home Equity Financing —Home Equity Spree Turns Into Billions in Debt

November 5, 2014 Posted by admin

Thirty years ago, home equity was just a quiet wealth accumulation device, humming in the background and adding a little something to the nest egg every year. But about twelve years ago, the California home appreciation phenomenon started to appear in other areas of the country and Home Equity [] became a mainstream option. In 2001, it really took off.

There have been three home equity financing waves since 1993, according to real estate analysts. The first two pale in comparison to what has occurred since 2001. According to the Federal mortgage agency Fannie Mae, American homeowners cashed out an estimated $480 billion in home equity during the refinancing craze that began in 2001 and tapered off in 2005. That’s more than 250% of the equity taken out from 1003 to 2000.

Part of the temptation has been record low mortgage and home equity loan rates. The result has been that almost three quarters of these homeowners – 74% to be exact – ended up with an average of six more years on their mortgages. Just seventeen percent of those taking advantage of the home equity financing opportunity chose to shorten the mortgage term, usually opting to convert to a fifteen year mortgage.

The home equity loan rates drew millions of converts and as a result, the homeowners in the United States owed more than twice as much on home equity financing and lines of credit by mid-2004 than they did in 1998; this according to the Fed.

Just as the 100 percent home buying spree occurred with millions of buyers looking only at near term results, home equity financing seems to be a process that also has “no tomorrow.” Commented on real estate analyst, “Someone in their 40s who has refinanced into a new, 30-year term has realistically signed themselves on for a mortgage until they are actuarially (likely to be) dead. It’s the mortgage in perpetuity.”

The impact on national statistics is interesting. Today, a little over 69% of American households own their own homes. That’s an impressive number, one that has climbed steadily for one hundred years. However due to home equity financing these same home owners own significantly less of their homes today than in recent decades. According to the Federal Reserve Board the average household debt is about 45 percent of the value of the home, up from 32 percent in 1973.

Average mortgage debt is expected to continue rising, in part because many first-time buyers are opting for interest-only loans. With these loans, they don’t start paying on the loan principal for three to 10 years. People who engage in 100 percent financing or who use the dual mortgage, piggyback loan approach to home financing are facing not only a primary mortgage payment, but also a secondary loan priced at home equity loan rates.

The degree to which new home sales and home equity financing is based on interest only loans has alarmed the mortgage reinsurance industry, which has called for a curb on some of the more onerous loan terms available today as adjustable rate financing. Nevertheless, ratio of debt to home value is going to increase for the foreseeable future.

Mutual Fund Basics

November 3, 2014 Posted by admin

Mutual Funds

What is as Asset Management Company (AMC)?

An asset management company is an investment management firm that invests the pooled funds of retail investors in securities in line with the stated investment objectives. For a fee, the investment company provides more diversification, liquidity, and professional management consulting service than is normally available to individual investors.

The diversification of portfolio is done by investing in such securities which are inversely correlated to each other. They collect money from investors by way of floating various mutual fund schemes.

What Does Open-End Mutual Fund Mean?

A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are.
Open-end funds also buy back shares when investors wish to sell.

What Does Closed-End Mutual Fund Mean?

A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.

What is the difference between an open ended and close ended scheme?

Open ended funds can issue and redeem units any time during the life of the scheme while close ended funds can not issue new units except in case of bonus or rights issue. Hence, unit capital of open ended funds can fluctuate on daily basis while that is not the case for close ended schemes. Other way of explaining the difference is that new investors can join the scheme by directly applying to the mutual fund at applicable net asset value related prices in case of open ended schemes while that is not the case in case of close ended schemes. New investors can buy the units from secondary market only.

What does Net Asset Value (NAV) of a scheme signify and what is the basis of its calculation?

Net asset value on a particular date reflects the realizable value that the investor will get for each unit that he his holding if the scheme is liquidated on that date. It is calculated by deducting all liabilities (except unit capital) of the fund from the realisable value of all assets and dividing by number of units outstanding.

Why the need of Diversification?

Diversification in finance is a risk management technique, related to hedging, that mixes a wide variety of investments within a portfolio. It is the spreading out investments to reduce risks. Because the fluctuations of a single security have less impact on a diverse portfolio, diversification minimizes the risk from any one investment.

A simple example of diversification is the following:

On a particular island the entire economy consists of two companies: one that sells umbrellas and another that sells sunscreen. If a portfolio is completely invested in the company that sells umbrellas, it will have strong performance during the rainy season, but poor performance when the weather is sunny. The reverse occurs if the portfolio is only invested in the sunscreen company, the alternative investment: the portfolio will be high performance when the sun is out, but will tank when clouds roll in. To minimize the weather-dependent risk in the example portfolio, the investment should be split between the companies. With this diversified portfolio, returns are decent no matter the weather, rather than alternating between excellent and terrible.

Purchase Order Financing – A Brief And Practical Insight

November 2, 2014 Posted by admin

Purchase order financing is a special kind of tool that lets you finance your large orders. It offers the needed funding to carry out the orders that somehow you could not be able to deliver because of fund crunch. Unlike traditional banking finance, PO financing is easy to qualify for and can be set up pretty quickly. What is so good about it is that it doesn’t depend upon your company’s financial power; rather it ropes upon the customer’s financial strength. Hence, if you vend your products to big firms or to government entities, PO financing can undoubtedly be the best bet to get those sales financed. However, it should be kept in mind that PO financing doesn’t work for every company until and unless you have at least 20% of good paying customers.

Advantages of purchase order financing

Purchase order financing is a special type of financing choice that lets you receive the purchase orders irrespective of the availability of the current capital. It serves as a perfect tool for those companies or organizations that have worn out their accessible funds or banking options.

Purchase order financing allows you to fund almost maximum of your supplier costs, letting you to offer extra orders. Moreover PO financing has got no such arbitrary limits such as bank funding and this gets directly attached to your sales. It shows that in order to get additional financing all one needs to do is to receive orders from good business or government clients.

PO funding seems to be the perfect tool for organizations that vend 3rd party products which includes resellers, distributors and wholesalers.

Purchase Order Financing- Necessary Qualification Criteria

In order to get qualified for purchase order financing, a company has to meet up certain criterion. To qualify a company has to be a re-seller of product or distributor who will only buy the products from supplying agent followed by transporting the same to the customers or clients. The company must have commercial or government clients and should have a minimum of $50,000 in monthly sales. Apart from this, a company’s gross transaction must bear a gross profit of 20%

Qualifying for PO funding is simple and quick

Purchasing order financing is straightforward and easy to use. In order to qualify for the same one needs to sell the products to other businesses like government agencies who meet the payment procedure in 3 months or less. The financing company purchases the products straight from the suppliers against your name, by a letter of credit. It then assures that the products are rightly delivered to your customers. So, once the order gets approved and delivered by your clients, the funds against the letter of credit are given to the supplier. The moment an invoice is rewarded, the transaction between the parties gets settled. It is natural to merge PO financing with accounts receivable financing as this lets you reduce the entire transaction cost easily.

Reliance Regular Savings Fund – Debt Option Mutual Fund

November 2, 2014 Posted by admin

Fund Snap Shot & Benefits
The primary investment objective of this option is to generate optimal returns consistent with moderate stage of risk. This income may be balance by capital appreciation of the selection. Consequently investments shall principally be made in Debt & Money Market Instruments.

Investment Option
It is an Open-Ended scheme the minimum investment is Rs. 5,00
Invest in Monthly Dividend, Dividend Re-Investment Option need to Invest Minimum Rs. 25,000/-, Quarterly Dividend Option Plan Need Rs. 10,000/-,Half yearly Dividend Option Investment Option required Rs. 5,000/-

Load Structure
Entry load – Nil
Exit Load 1.00%, if redeemed/switched out on or before completion of 1 year from the date of allotment

Funding Structure:
Reliance Regular Savings Fund-Debt Option will keep the investment maximum safe for long term. The investment amount will be distributed 50-100 percent in debt option and remaining if any will be invested according to the situation in the money plans maximum 50%.Totally if we calculate 72.18% will be invested in cooperate bonds,16.75% in zero coupon bands,3.16% in certificate of deposits and remaining 6.71% in other money funds. According to the category if we notice the fund maximum will be invested in Finance session that is around 35.69% in the finance dealing companies,29.73% in moderate companies,3.10% in Capital Goods,3.10% in power sectors,1.93% in pharmacy companies 3.16% in banks and remaining 3.31% in automobile companies. This will be invested as cooperate bonds in that particular companies details as per fund fact sheet as on 31 Dec’2013.

Fund Returns
This fund is purely Open Ended fund and losses will be less as profit gaining through this funds is less.The profit gained will be less in this type of funds when we compare this with equity shares.But most important thing to be noted is in such type of funds the investment will be always safe. In the past 5 years 7.75 %,8.71% in 3 years income had been acquired, yearly around 8.00% can been achieved. Those who are near to IT slab opting to see to invest in Fixed Deposits they can invest in this type of funds. If they can invest more than a year the opt profit treated as long term debt interest imps maximum 10 percent. If we can take economic rate as consideration then the tax will be null. Investors who are in Future planning in 2-3 years for buying house and their children’s education or marriage they can choose this type of Debt funds.

Fund Details
Date of Announce: 10 May’2005
Fund Manager: Mr. Prasanth Pimple
Nav: Growth Option: Rs. 16.75
Quarterly Dividend Option: Rs. 12.54
Fund Type: Open-Ended
Bench Mark: Crisil Composite Bond Fund
Amount in Funding: Rs. 3,309.96 Crores as on 30 Sep’2013
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