Your Financing Strategy
Ask questions from your bankers which of one these will benefits you most and which one could be costly to you. You can also get free checks when you open your account, you do not need to pay for checks. All checks are processed the same way that is up to you and how you manage your money.
-Savings Accounts: Custom Savings, Money Market Account Checking Accounts: Economy Checking, Express Checking, -Regular Checking, Senior Checking, Student checking
-Your Debit/Visa Card to use for shopping could be free when you open your account, make sure you ask for it, at times they will ask you if you want one or not. Where you use your Debit/Visa Card to withdraw money matters to your bank, it could cost you for using it at the wrong places, ask your banker for information where you could use your card without paying extra charges...
Some banks charges between $1.00 up to $3.00 if you use their card to withdraw money from another bank that they do not do business with. It is your money...
Each one of the above has advantages and dis-advantages, be careful when you are opening your accounts; you could loose money to the bank right away. You also need to know if your monthly statements are going to be free or not, when you make inquiries, the bank could be charging you for too many inquiries. Some things are free from the big banks and something's are cheaper from the community banks.
Basic Requirements for lending you money:
· Savings and Checking Account
· (2) Good Credit or No Credit it depends where you are getting the money.
· (3) Collateral such as your House, Car, Boat, Gold/diamond or any valuable assets they can hold on
· Driver's License,
· Social Security numbers
· Good Employment, at least for six months.
Lenders Information:
Big Bank requirements-
Can be very tough to meet because they have to abide by the 'Federal Reserve Bank or Federal Deposit Insurance Corporation (FDIC)' regulations. They got their money from the Federal Reserve Bank at a lower rate, however, they could turn around and loan it to the smaller banks at a higher rate, and the smaller banks loan it at higher quote rate to the public.
Community Bank requirements/Credit Union:
Well, the community bank is no different either, they turn to the big banks to borrow money at a lower rate so that they can loan it to their customers/clients at a higher rate to make some profit to stay in business.
Private Capital market requirement:
This is where the business gets tougher. The Capital Market enterprise is a big boy on the Wall Street, where they can finance just about anything they like, because they are not being regulated by the government, it is an individual rich businessmen that have money to loan out at a higher rate. They are not required to follow financing rule rigidly as the bank does, but they still have follow the consumer law that protect all of us from being taken advantage of.
Family friends requirement:
This one is your best source of financing, if you could find a rich friend or family friends that can loan you money without any attachment or collateral. They may ask you to pay them some small interest, or none it all depends what you are using the money for, at they would like to get a piece of the apple when they know you are going to make a lot profit.
Collateralization:
There some companies out there that would loan you money to meet your emergency needs, but becareful, they may ask you to give them your house, car, motor cycle or any of your valuables for collateral just in case you were unable to pay them back, but, they are very quick to take your valuables and you may not have any re-course to take them to court for doing so. I would stay away from such financing unless you have to...
There is going to be a time when we are going to need finance or re-finance our mortgages, car, motorcycle, big boat, air-planes etc., that we cannot come up with up-front lump sum money to pay for it This force us to turn to our bank, family friends, private capital market, small loan companies to loan us that money. This is where we are being taken advantage of by offering us some sort of un-affordable rates. At first you would think this a great opportunity that it will not be problem, you could afford that payment being offered to you by your lender, you better think again before you sign that dotted line. They could be collecting interest from you money for long time without any of it going to your principle.
Pay attention to dotted Line and Small print in the loan documents:
The loan documents can be very tricky to read when you are not an attorney, the small fine prints areas are very important areas to pay attention to, because this is where they hid rates, timeline, and warrante, but if you don't pay attention to the rates they quote or offer to you in the loan document that you are going to sign you could be losing a lot of money. You probably better off to take to your attorney before you sign the dotted line.
In the fine print of the loan documents is where they hid most important information that your lender did not want you to know about, especially mortgage and credit card documents. It sounds strange, but it is true, If you don't believe what I said here in this document, go to your loan documents and read the small prints in there you may find out something that you would not like to see or hear about, or if don't believe what I said here, ask yourself a question of why didn't they just print the whole loan documents in a readable format with nice fonts that an average third grader can read and understand it without having to scratch their head or look up words in the webster dictionary for interpretation of words, after all you are the consumer paying them for this services and they will be collecting interest from your financing for such a long time. 95% of mortgage homeowner never gets to the point of paying principle or their mortgage finance off before being taken away from them, but the bank or private investor already started to benefit. Yes, I understand they took the risk to finance us.
I think what is fair is fair, they should make the loan documents more readable for us, and there should be no small prints that is had to read on any loan documents. They should be in a readable format that average Joe can understand; my question all the years was why are they making it so complicated to read if they do not have anything to hide? I also think the loan documents should not have so many pages when we are talking about saving the threes... Not too many consumers read all these pages, it has no value to have so many pages when no one really reads it, of course the attorney will not be making money if they these document could be reduced to minimum.
My solution to this big fat loan documents should be to reduce them to minimum, all it should it be contain is, who own the house, the rate, how long is going to be paid, warranty, borrower's and co-borrower, and all other very valuable information it should not be more than 10 pages long.
Info Lengkap Penyakit Gangguan Mental ‘Narcissistic Personality Disorder’
Make Your Financing Pitch Sizzle
If you're a SouthPark fan, you'll remember the episode called the "Underpants Gnomes," in which gnomes have built a business based on stealing underpants from the residents of South Park. When the kids finally catch them and ask why they are doing this, the gnomes say it's all part of their business plan. "What's your plan, exactly?" the kids ask. One of the gnomes fires up a PowerPoint presentation to outline their three-phase approach. Slide No. 1 says "Steal Underpants." Slide No. 2 is blank. Slide No. 3 says "Profit!" I cannot stress how many business pitches I've seen like this, where Phase One is "create widget," Phase Three is "profit!" and the crucial Phase Two is a complete unknown. See the info on my pitch critique worksheet at the end of this column to make sure your pitch is complete. Let's say you have a capital acquisition strategy (see BusinessWeek.com, 1/22/07, "Rules for Raising Capital") and an advisory board (see BusinessWeek.com, 2/1/07, "Don't Go It Alone: Create an Advisory Board") to boost your credibility. You need two more things: a sizzling pitch and a variety of funding sources. In this column we'll nail your financing pitch, and I'll address financing sources down the road. Roping Them In: I'm assuming you've already created a killer business plan, which will yield your executive summary and financing pitch. Your business plan will be about 20 pages, covering all aspects of your business. Put in the hours to make it perfect, because you'll be repurposing the business plan's content in sales presentations, marketing collateral and white papers, recruiting pitches, and your Web site. Your executive summary is a two-to-five-page bottom-line version of your business plan, a riveting bulletin from the front line that primes investors to read on. Few people will want to pore over the whole plan-this is why you've got to rope them in with those first pages and establish that you're a savvy, trustworthy person with a substantial idea before you lay out all the details. The financing pitch is 10 to 15 PowerPoint slides extracted from the executive summary. This is the distillation of your business, which you'll design to deliver in about 20 minutes for attention-span-challenged people (see BusinessWeek.com, 9/12/06, "Grab Your Audience Fast") and (see BusinessWeek.com, 12/5/06, "Presentations with Something for Everyone"). You'll likely need the pitch in document form, too. As a former venture capitalist, I've read tottering towers of financing pitches and project proposals. Often the pitches were for products or services that no one truly needed, or projects that weren't cost-justified, or worse yet, fabulous ideas presented poorly. To stand out, your pitch needs to be concise, compelling, and complete. 1. Be Concise! A concise pitch provides a simple explanation for why your business or project is a great idea, and how you'll execute the steps to pull it off. The pitch must explain your company in such a crisp way that the money contingent won't be able to put it down. You must convince them that you have a sound execution strategy and pragmatic tactics for making your vision a reality. The key questions financiers want you to answer are: * Have you hired the right people? * Can you build/deliver your product or service? Will it fly? * Are you chasing big enough markets and can you reach them? * How much will it cost us to build this business? You won't be able to eliminate the financial risk completely, so focus on showing how solid your people are, how exceptional your product or service is (and why), and how huge the markets are that you're going after (plus how you'll capture them). You must define your current and potential competitors, too, in honest, realistic terms. Remember: Your pitch needs to reduce the financier's fear of risk and increase their greed for gain. That's what it's all about. 2. Be Compelling! A compelling opportunity is the one that has the right deal, with the right price, at the right time, with the right product/service, and the right team. Compelling deals always get financed with favorable terms. To uncover your "compelling quotient," answer the following questions: 1. What exactly is compelling about your business (your products/services, team, unique approach, intellectual property, etc.)? 2. Does your product or service clearly define and address a painful problem (or, in some cases, a key social trend)? 3. Has your team had prior startup success so investors know they're betting on a proven pony? 4. Do you have high-profile advisory board members? 5. Have you already attracted customers, either paying ones or those who've signed on for a free trial? 6. Are your financial projections aggressive but realistic? 7. Are your target markets tangible and accessible? 8. Could your product or service lead to an expanded line of additional offerings? 9. Have you built solid strategic partnerships? 10. Do you have diverse and low-cost sales channels? 11. Does your product or service have the kind of sex appeal that will make everyone in your target market want it? 3. Be Complete! You must have a trusted third-party review your pitch to ensure it addresses the high-level issues a financier might have. "Friendly fire" feedback is essential before you pitch to the potentially less friendly financiers. Ask anyone who can help-your startup-savvy attorney, advisory board, mentors, friends who have expertise in the specific market you are addressing or in business overall-to punch holes in your pitch. Give them a list of questions to answer, such as: What business do you think we're in? Is it interesting to you-why or why not? Were you to consider investing in it, what additional information would you need? This is a time to lay bare any wobbly aspects of your pitch, when you've got time to fix them. If you charge ahead with an incomplete pitch, such as one that lacks financials, or a marketing or sales strategy, you'll look either unprofessional, fly-by-night, or both. Be complete-it will help you gain the trust of all you pitch to. Finally, whatever you do, just be sure to do it NOW. There is NO time like the present to seize your awesome, rockin' success and GO FOR IT. Here's to your phenomenal future!
