Archive for: ‘April 2015’

All About Commercial Business financing in the UK

April 14, 2015 Posted by admin

Good news for all the UK borrowers… Now commercial business financing for them has become so easier. Why? Obviously, for commercial business financing loans that are specially tailored only for the UK borrowers. If you are a UK borrower, thinking about financing in your business then grab the chance, avail commercial business financing loans.

Commercial business financing loans are mainly used for business or commercial purposes in the UK. Whether it is related to buy any new business premise, commercial building or any business assets, commercial business financing loan is the apt one that assists all the UK borrowers to meet their needs.

A UK borrower can execute commercial business financing either in secured or in unsecured way. For financing in secured way, obviously a security is required. Any worthwhile collateral can be used as security, like home or other real estate, automobile etc. Oppositely, if any UK borrower wants to finance in his business in unsecured way, then he does not need to pledge any security against the loan amount. However, generally for financing, a borrower can borrow anything between � 5000 to �100000 where the repayment period varies from 3 to 25 years.

In the UK, Commercial business financing loan [] are available both with fixed and variable rate option. In case of fixed rate, borrowers need to pay same amount every month. While in case of variable rate, the interest rate changes according to the changes of loan market.

Nevertheless, some documentation is required while submitting the loan application. These are as follows:

*A UK borrower has to attach a loan request while applying for a commercial business financing loan. In this request, the borrower should mention that what type of loan he wants to borrow, how much he needs for funding in his business etc.

*Mentioning the business plan is vital, if the applicant heads for a new venture. At the same time, it is also necessary to reveal the guess estimation regarding yearly turnover. Do remember that all information should be concise and proper.

*If the purpose of commercial business financing is related to business expansion, then the borrower has to comprise a brief of his business profile and all financial statement including tax returns, balance sheet, profit and loss statement etc.

Generally, the decision of commercial business financing takes 1-4 days. By that time, a borrower may be asked to provide some more information. In such cases, a borrower can take help of loan broker. There are numerous brokers in the UK, who help borrowers to submit their loan application to various lenders for approval. And needless to say, all borrowers should try to make some effort to find out a good deal.

Commercial business financing loans are giving all the UK borrowers a rewarding opportunity for financing in their own business. Such kind of loans can be used for all sorts of business- new or existing. With lots of facilities these loans are truly a benediction for the UK business people.

Advice For Personal Finances That Will Help You Stop Treading Water

April 12, 2015 Posted by admin

Life can be very difficult if your financial situation is not in order. If you want your financial situation to look brighter, here are some ideas to try.

It is always a good idea to make sure not to spend more money than you earn. Individuals who spend their entire paycheck or overspend and take out loans will never be able to save a dime. Know how much income you are bringing in and stick to a budget that is less than that figure.

Open a flexible spending account and use it. Using the flexible spending account to pay down medical bills or daycare can actually help you save money in the long run. You can set aside established amounts of money before taxes so that you will be able to manage this sort of expense. However, as there are tricks to using this type of account, it is best to seek clarification from an accountant before entering into one.

Small steps can help you get your personal finances in the right shape. Opt to brew your own coffee instead of purchasing from the coffee shop every morning. That will net you a cool 25 dollars if you do it all week. Try using the bus versus your car. The savings here could easily be several hundred dollars every month. This money adds up and can be used toward your retirement, or that big investment item you are interested in. Those things are more important than an expensive cup of morning coffee.

Think carefully about your feelings toward money. If you want your personal finance to improve, you have to take into account how you’re spending your money first. List your beliefs about material things and money, then pinpoint problem areas and reasons why you believed them. You’ll then be able to trade in those feelings for healthier ones.

Instead of only using card that is about to be maxed out you can use two or so credit cards. Interest on multiple cards with lower balances should be lower than the interest on a maxed-out card. And besides, this will not damage your credit score as much, and even help you build it if you can manage wisely your two credit cards.

Keep an up to date filing system, saving all necessary financial documents that you need for filing income taxes. You can easily access receipts, healthcare statements, insurance papers, etc. by grouping them together for when taxes are near.

Start saving now! Saving money is one the keys to financial security, as well as a happy life. You have to understand that saving money is essential. If you treat putting money into savings as another bill, it will help you save the money you want. Think of it as “paying your future,” and when the future becomes the present, you’ll have a lot of money.

There are ways to negotiate with debt collectors. Chances are that they bought your debt for a low price. So, even if you can only pay them a small piece of what you originally owed, they will probably still make a profit. Take advantage of this to get rid of any old debt at a low price.

Set up monthly bill payments via your bank to make sure your pay your credit cards on time. Even if you cannot pay credit cards off completely, paying them on time establishes a positive payment history. If you schedule an automatic bill payment, then you never need to think about your bills or worry about being charged a late fee. Additional payments can still be made with that tax return or Christmas bonus.

Taking the time to manage your finances will bring stability to your life, and help you achieve more things. Having your finances in order alleviates stress and can let you see the bigger picture and work on other things that need attention.

Choosing Mutual Fund Companies

April 11, 2015 Posted by admin

Securing your financial future is a smart idea and one that can be relatively easy to do if you know how and where to make the right investments. A financial adviser will be able to help you put your money into secure deposits in order to secure your future. For instance, investing in the best ira funds will allow you to have money when you retire. All IRA funds are put in place to provide money and security to people who are looking to retire. By putting money into that fund, you will have more when you choose to retire at a later age.

Before opening one of these funds, it’s a good idea to educate yourself on its pros and cons. For example, you will not be able to take any money out of the fund until you retire. If you do, you will have to pay a tax and a penalty on it. When retiring, you will more than likely not have to pay a tax on the money inside of the fund. This waiver depends on the particular IRA you have opened. Only a professional will be able to advise you on which fund to open for your particular needs.

Likewise, mutual fund companies are put in place to help you choose where to invest your money. The mutual company will enable you to place your money into stocks and bonds that are of good quality. A lot of people who are looking to invest into stocks will first look into mutual fund companies in order to decipher if they need to look around first before putting money into a particular company or product stock. If you have ever thought of an investment, be sure to look into mutual companies to know what to do with that money and any future investments.

The benefits of financial security through a specialty fund are almost limitless. Just imagine how hopeful you will feel when you retire and have all of that money waiting for you from your IRA fund and anything that you had invested years before in order to gain interest on.

Simple Steps to Picking the Right Mutual Funds

April 9, 2015 Posted by admin

Things are getting costlier and life is getting difficult. At such a point, you need to make sure that you find ways to ensure that you can survive in the future – which is undoubtedly only going to get costlier. But how do you do this when you find that a single income isn’t enough today, let alone enough to save for tomorrow? The answer to that question is rather simple. Instead of allowing the money you’ve managed to save up lie in your house gather dust or in a bank getting a pittance as interest – you could grow it manifold. One of the easiest ways to do this is by investing in a mutual fund. But before you can do this, there are some things that you need to do. The first of those some things, is to take a review of your finances. Consider your income and your expenditure and then tally how much you can save up and invest each month.

Then, look at your goals. Generally, it’s best to divide your objectives into short and long-term goals. This makes it easier to decide where you want to invest. Another thing you should do is get an idea of when you’ll want total of money. Mutual funds are usually about allowing your money to grow as much as possible. And this is possible when you allow them enough time to grow. Generally, when you need money around five years down the line, it’s a short-term goal and anything around 15 or 20 years is a long-term goal. You will need to decide your investment strategy depending on these factors – so pay close attention to this. If you don’t have the right strategy, not even one of the top mutual funds can help you out. Once you know your goals, you can decide the strategy.

If you have more short-term goals, then stick primarily to debt funds. This will ensure that you don’t have to face unnecessary risks to your capital. On the other hand when you need to fulfill long-term goals, go for equity diversified funds. This is because there are higher chances of volatility paying off in the long run. Diversification is an important step, as well. Your losses in one sector will be compensated by the profits in another sector. Remember that you need to research before you start investing. These are simple basics that you need to do to set up a foundation – but the structure still needs to be built. And that’s done by thorough research and careful investment.

Mutual Funds and Long-Term Investing

April 5, 2015 Posted by admin

There was a time when you invested your money in Certificates of Deposit at your local bank and left the money there until your retirement. Banks offered safety and a minimal return on investments.

Then, along came mutual funds…

During the go-go 1990s, mutual funds were the rage, and returns of 25% per year were not uncommon. Without any real knowledge of how mutual funds worked, employees plowed billions of dollars into their 401(k) plans and funded those plans with mutual funds. At the time, many funds were springing up and specialized in a variety of investing disciplines. It wasn’t long before funds that specialized in narrowly focused industries were common and many fared very well. Of course, during a spectacular bull run investors became accustomed, if not spoiled, with the fantastic returns they received. Who can forget Peter Lynch and the fantastic returns on the Fidelity Magellan Fund?

Somewhere along the line people forgot that the market does not stay in a perpetual bullish state. In my opinion, most unsuspecting investors can be forgiven for this oversight. Our last bull market was one of the longest in recent history, though it was funded by deficit spending at a national and personal level. Like all good things, it came to an untimely end as in recent years stock prices have skidded and home values have plummeted precipitously.

But a lot of folks stuck with their funds and their 401(k) plans…

The problem with most open ended funds is that they can only buy stocks, and cannot sell short. The end result for the investor is that unless the market goes up he or she does not make money. As I mentioned earlier, many funds evolved with tightly focused investment objectives and if the particular sector in which a given mutual fund was forced to invest did not do well, there was nothing that the fund manager could do besides mitigate the level of overall loss. Investing in perpetually long positions definitely has its disadvantages. Of course, during a recession the market as a whole tends to decline, so it does not particularly matter what investment sector you invested in, the results will be disappointing. This makes investing over the long term, or using the “buy and hold” strategy difficult to implement.

So now the mutual fund industry finds itself in a bit of a quandary. During the rip roaring bull market of the last decade mutual funds were the investment of choice, especially for the uninitiated. Now that the market has cooled off some, which is an understatement, the allure of funds have waned. Worse yet, there are millions of investors with money in their 401(k) plans invested solely in mutual funds. Though we have had a nice run up in the last year, the long-term prospects, at the present, are not so encouraging. Worse yet, many employees jumped out of their funds, especially in 401(k) plans, at or near the bottom of the last market correction. They stand little chance of returning to the original high account balances they once enjoyed. The lesson is a simple one, during bull markets mutual funds are a wonderful investment and very profitable. When the market is correcting, however, funds can be a distinct liability because they are, by law, required to invest in only long positions. If you are holding funds during a market correction your options are very limited; you can stay in the fund or you can opt out. There are no provisions in fund investing that allow you to effectively take advantage of a correcting market.

In my opinion, the recent volatility in the markets negates the old adage, “buy and hold investments.” I suppose over a 50 year time frame this investment strategy may pay dividends, but currently the average holding time in mutual funds is just under three years. Needless to say, a great many people have been burned of late in mutual funds. Absent a rip roaring bull market, the mutual fund industry must develop a mechanism to protect investors in down markets. If not, they risk losing a great number of investors. Already the number of mutual fund investors has declined nearly 40%. The industry needs to become more nimble to survive in volatile market conditions which punish investors severely.

Know More about Sector Funds

April 4, 2015 Posted by admin

Sector funds are mutual funds that focus on a particular sector. This simply means such type of funds focus on a particular sector giving the investors the choice of a single sector to put their capital in. These are broadly divided into eight categories namely; health-care, communications, consumer discretionary, consumer staples, equity energy, financial, industrial, natural resources, metals, real estate, technology, and utilities. Many investors prefer these funds because of their knowledge of a particular business and its scope for profits.

How does one choose to invest in sector funds?

As the entire concentration in case of these funds is on a specific industry you need to be careful while picking your option. You can also look at the duration of your investments and then take the final call. For instance if you wish to see your money grow in the long run and are in no hurry to get the returns, sectors like pharmaceuticals and metals are ideal for you. Metal prices rise over the years and the fall in their market value is minimal, many people invest heavily in the metal sector as they believe these are the sure, earners in this sector. The pharmaceuticals industry too on the other hand is forever growing with new advancements and technological developments and wisely investing in this sector can be beneficial for your financial portfolio. When someone invest in mutual funds he seeks advice from financial experts, doing the same for these funds will be helpful.

Sector funds mean putting all your eggs in one basket?

Yes to some extent sector funds focus on a particular industry and restrict diversification. However as you begin investing and understanding how sector funds work your perceptions will surely change. Any financial portfolio is not totally dependent on a particular investment option, for instance you will not put all your money in the stock market, the same way investments in these funds should be a part of your investment portfolio. As discussed earlier in the article there are 8 vast sectors investors can choose from in sector funds, so you can make your choices smartly and wisely.

Investing in mutual funds on the whole gives you a lot of options and sector funds are one of the many. As these funds focus on just one specific industry the market watchers can actually earn good returns on their money by investing in the booming sectors. Risk factors are never nil in any market investment but if you invest your money by studying the market trends; you can be on the safer side. Just like other emerging investment options, it can also help you to multiply your money and be a strong part of your investment portfolio.

Is Owner Financing A Good Decision

April 1, 2015 Posted by admin

With owner financing, the seller will take on the role of the lending institution, and take on the task of financing the property to the buyer. The seller will receive payments on a monthly basis from the buyer just like the buyer is making the payments to a bank. The buyer is the owner of the house. The buyer will take on all the responsibilities of a home owner. They will be responsible for the insurance, taxes, upkeep, and all bills associated with owning the property. The buyer is most times allowed to do about anything they want to the house as long as it does not take away from the value of the house.

Buyers want to do this because they obviously can’t get the financing they need from a lending institution because of bad credit, less than desired income, or unsteady work history. The buyers are much higher risks, so owner financing doesn’t give the them good interest rates at all. However, many people believe owner financing is better than simply renting an apartment or house.

Good things and bad things are plentiful to both the seller and buyer. Owner financing a house gives the buyer the ability to buy and own a home, when they could not any other way. It allows the buyers to build equity in their house, instead of tossing it out the window paying rent. Unlike renting, with owner financing, there are little to few guidelines and rules for the buyer to follow.

The main problem of buying a house through owner financing is that the equity in the house is forfeited if the buyer defaults or decides to move out. The buyers cannot sell the house for themselves, and keep the equity. The house then goes immediately back to the seller. The buyer also receives a higher interest rate, usually around 10 percent. While none of that is pleasant, people seeking to own a house who can’t get a loan, do not have much negotiating room.

With the pluses and minuses of owner financing for the buyer, there are also as many advantages and disadvantages for the seller. Selling real estate with owner financing will give the seller the ability to create a long term income that could last indefinitely? How is that? If buyers pay a down payment, reside in the house for a few years, then default or have to move, the house goes right back to the seller, and that can happen again, and again. Owner financing allows the owner to make money on the property, even if they over spent and couldn’t make money on the house selling it outright. There is also a huge market of great people with poor credit who will do anything to purchase a house. Owner financing is uncomplicated to do. All that is needed is a valid contract.

Having to wait on the long term money is often a downfall to the seller. Instead of buying and selling the property for quick cash to reinvest, the seller will have to wait many years to make the money they want. As a cardinal rule, the down payment should be able to cover the needed repairs after the house is returned to them. Nearly every time a buyer moves out, the house will need new flooring and new paint at a minimum. The seller also needs to be ready to fix holes in the sheet rock, replace inoperable appliances, broken windows, etc.

Owner financing can work out good for both parties. Yes, there are disadvantages to each, they both share one common thing. The buyer wants a house, and the seller wants to sell a house. As with most things, if something is wanted enough, ground can and will be given on both sides.