Archive for: ‘May 2015’

Mezzanine Finance

May 7, 2015 Posted by admin

Mezzanine finance is very similar to a second mortgage. You will use the stock in your company to secure the financing instead of opting for a different type of collateral like your home or a piece of real estate. Since you are offering the lender stock in your company, you need to be very diligent in making your monthly payments. If you fail to make the payments, the lender has the option to foreclose on the stick, which causes you to lose complete control of your business. If you default, the lender can call in the stock in just a few days instead of a few months.

Stock is considered personal property so it is much easier for a lender to seize it compared to a foreclosure on a loan or another type of financing. When a company seeks mezzanine financing, you are usually talking about some pretty large numbers. For the most part you will deal with numbers upwards of $2 million. It’s rare to acquire a loan for less than $2 million with a mezzanine loan. Because of this, lenders expect a lot from you. They want to see everything you plan to do with the money. How much money are you going to generate from your target audience with this loan? Provide them with a detailed list as to how much money you plan to invest into a number of different things like new equipment, etc. As you do this, they will be able to see you as a credible business venture and will have an easier time offering you the financing.

Your business credit will be taken into consideration with mezzanine financing. Lenders need to see that you have paid your debts on time and that you aren’t taking on more debt than you can reasonably afford to repay.

Search around for the right mezzanine lender. Some lenders will lend you $5 million at once while others will lend a lower amount. They often see some type of potential with your business when they loan this amount of money. Generally they will push you to get some tenants in vacant office space that can generate decent profits for your business.

New construction is another part of mezzanine finance. Lenders need you to develop land to construct new hotels, shopping centers, and other things. By doing so you will generate profits upwards of 70% of their investment; leaving them with a huge payday from your business.

Save Your Tax with Wise Investment Choices

May 6, 2015 Posted by admin

Most of us tend to spend a lot of time in planning our finances and investments and at the end think about tax savings. When so much emphasis is laid on finding the right investment options then why not look out for investments that can be tax saving too. Some of the most promising tax saving options are discussed below.

ELKS investments: Equity linked Investments or ELKS are dependent upon the performance of the equities these hold. If the performance is good, during the payout returns would be distributed accordingly. In case the returns are marginal, there is an assured percentage of return that the investors are promised. As per Section 80C a person can claim a considerable amount of exemptions in taxes by investing in ELKS and ULIPs. These tax savings mutual funds are ideal for people who want to diversify their investments.

Medical Insurance: Your mediclaim can make you eligible for tax savings of up to Rs15,000. This applies to medical insurance of you, your spouse, children and even parents. In a way you are making arrangements to tackle medical emergencies which in turn are also helping you save taxes.

PPF: Public provident funds are amongst the oldest and most trusted form of tax saving funds. This scheme is government run and comes with some attractive interest options. People investing their money in PPF are sure to get good returns and would not be eligible to pay any tax on the interest amount earned. A PPF account enables individuals to keep adding their funds at any point of time in their account (with a minimum and maximum yearly limit specified). This has to be done for a period of 15 years after which the account holder is entitled to receive the matured amount. This in a way acts as a fixed deposit account without the condition of paying the entire amount once.

Fixed deposits: Almost every person thinks about fixed deposits when it comes to investments and these too can help you reduce your tax amount. These are the safest and no-risk involved tax saving tools.

Individuals wanting to multiply their money keeping in mind tax exemptions can opt for any of the above mentioned investments. Fixed deposits, PPFs and insurance are good opportunities for people who wish to take a safe route. On the other side there are people who do not find the fixed interest returns luring and they wish to go a step ahead. There are certainly no limits for them too as mutual funds, ULIPs and ELKS have expanded. The best part of choosing these is that the government has made provisions for tax exemptions in such investments. Tax saver mutual funds especially have been successful in attracting investors.

Some investments are safe while some are subjected to market risks, if selected smartly they can help investors save substantial amount of taxes.

Can you find a Christian Mutual Fund

May 5, 2015 Posted by admin

With so many different investment opportunities out there, it should really come as no surprise that those who want to invest their money in a Christian way could find a Christian mutual fund [http://www.amerisraelfund.com]to take care of that. More and more these days, investors are looking into not only the potential returns on their investments, but also the way that prospective companies operate. Some Christian people want their investments to support their own moral and Biblical goals, so that leads them to use companies that provide this type of foundation. What exactly is a Christian mutual fund? The simple answer is that it is a fund that offers extensive screening to make sure that companies fall under the proper moral and ethical boundaries.

Does a Christian mutual fund offer competitive returns?
Even when investing based upon their principles, people who make these choices want to know that their money is going to grow at an acceptable rate. The nice thing is that you should not have much trouble finding a Christian mutual fund that provides nice returns. There are so many companies and so many stocks out there today that plenty of good ones are left once you exclude the companies that don’t operate in a biblical sense. The returns on a Christian mutual fund will be competitive when compared to other mutual funds out there, with the added bonus of being able to feel good about where the money is going and what it is going to support.

How does a Christian mutual fund select stocks?
For the most part, a Christian mutual fund will use a screening process to make sure that various companies do things the “right” way. This might mean a background check into the history of the people who run the company or a check on how the products that they sell. It could also mean checking to see what sort of advertising practices a company uses. What the Christian mutual fund will do is make sure that the prospective company does things that are morally responsible. They don’t only invest in companies that share similar religious beliefs at the core, but they do want to make sure that each stock is from a company that doesn’t break these biblical codes.

Investing in a Christian mutual fund is a really good way to grow money for people who want to balance their religious needs with their financial needs. So many good funds exist that you will not have to sacrifice any financial viability to attain these moral and ethical boundaries. A Christian mutual fund will keep an investor’s money away from companies that handle their business the wrong way and it can really help Christian people sleep well at night. With the Bible offering many different verses and examples of how to manage money, this is a very important concern for lots of folks.