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.
Tak Perlu Cara Mahal, Guna Cara Ini Sahaja Untuk Hilangkan Pecah-pecah Tumit Kaki
Five Tips You Must Consider Before Seeking Finance
The internet and self-help books, banks and consultants are all full of the normal, by which I mean conventional tips, that one should consider before starting a business. There is little benefit in analysing those because by and large they make sense. In many cases common sense, although not always. So I want to focus here on other aspects which are not often brought up during the debate, sometimes an internal debate or one with friends, or family, but important nonetheless. Top of my list is to ask yourself a question and get a sincere answer. And the answer to this is, in my view, absolutely crucial to whether you should proceed or not. Before mentioning the question I have to say that in recovery analysis where I have been involved in looking at failed organisations and trying to analyse what lessons can be learned, it has become increasingly apparent that this particular question was rarely asked, and if it was asked it was rarely answered with any conviction. Self-delusion and reckless optimism are not a substitute for a sensible answer. 1. The question is this - can I pay all my domestic bills and protect my family for at least 12 months without drawing a penny from the new business? It doesn't take a lot of thought to consider the consequences of what might happen if you engage in a business and you are not absolutely certain that the answer is yes. I'm not talking here about coping with unforeseen circumstances, but the plain fact of the matter is that it is very rare for a business in its first year to be able to offer substantial drawings or indeed sometimes only modest drawings to the entrepreneur. It is worth remembering that if investors put money into the business predominantly to accelerate the business, by which I mean providing working capital for capital expenditure, marketing promotion and so on. They are not unrealistic and do not expect that the entrepreneur should work for nothing. However, they are not in the business of funding the entrepreneur's drawings and would in all likelihood set a particular cap on the amount of drawing that could be made in the first year. This might be minimal and of course the consequences on one's family need to be carefully considered. 2. The next question - are you truly devoid of self-delusion? Now you may indeed answer yes, but then this begs a second question - how do you know? Only you can answer this! 3. A crucial element that people overlook. It's one regarding true motivation, or if you prefer the catalyst towards that motivation. You must ask yourself - if you ere running towards starting a business or are you running away from something you don't like, i.e. a job you hate, or something similar. This is not two sides of the same coin. It is, if you stop to consider it, opposite sides of the coin. In my experience, and those of many of my peers and colleagues, it would appear that the probability of success is weighted in favour of those people who are running towards starting a business because they truly want to start the business and considerably less for those people who are running away from a situation that is uncomfortable for them at that point. 4. Beware of mutual agreement. You, your friends and family may all agree on the same thing. But you can all be agreeing on the same mistake and being in complete ignorance of the reality of the situation. This isn't always the case but it is a common factor in some of the business failures. Inevitably people involved with you, such as friends and family, like to hold back on the negative and wish to emphasise the positive. There is nothing wrong with this, but you cannot rely exclusively on their good wishes or indeed rely on their good judgement. For people who have not been involved in business, certainly those who have never been self-employed, on the face of it it does seem a very attractive proposition and for quite a few people it certainly is! However, because of their lack of experience they do not necessarily understand not appreciate, simply because they haven't experienced it themselves, the strains, stresses, and pain of trying to get a business off the ground, especially when things don't go according to plan. This is why, and it's often overlooked, the advice and guidance of a bank can be very useful. Banks have no emotional interest in your business. It is for them, purely and only a business transaction. They make money from you and that's the end of it. There's nothing wrong with this, and in fact in some cases it is quite useful. Thus it seems sensible and indeed logical to accept free advice from the bank irrespective of whether you like it or not because they will be offering a disinterested, i.e. unemotionally involved perspective on your chances. Even if they are negative it doesn't necessarily mean that they are right or wrong. The point being that you should use whatever comments they have to balance the inevitably favourable ones from friends and family. 5. And finally within this cluster of ideas and tips, you really must ask yourself if you are a leader or a manager. You have to be certain in this. This requires a high degree of introspection and probably dialogues with other people and the occasional psychometric test. Whatever the outcome, be you a manager without leadership capabilities or a leader without management capabilities, it would stand you in very good stead to tell the potential investor this. They will respect you considerably more by being so candid. Moreover it is highly unlikely that this will put them off making the investment because of course from their perspective once they are aware of the lack of expertise in a particular area, then if they like and trust you (not necessarily in that order) then they can parachute in at their expense the missing skill involved. It is tempting to speculate from an investor's stand point which is more attractive, leadership or management. Having been a business angel myself, my own perspective is that I would prefer to see outstanding leadership and poor management than vice versa. This is simply because outstanding leadership is a very rare commodity, whereas getting decent management in, albeit without much in the way of leadership or initiative or imagination is comparatively easy. I have very rarely discovered in business a single individual who combines both outstanding leadership and management qualities. Don't delude yourself that you might be that person. You might be, but it is highly unlikely! Author: Howard Popeck, Entrepreneur, Investor and experienced business man and long time author.
