“I pay for everything in cash, I never finance anything” or “I’ve never had to take out a loan, I don’t believe in it”. Every so often, I encounter this type of feedback from a business owner. The attitude usually goes along with a strong, hands-on work ethic for an owner which has built their business from the ground up. They have worked long hours, suffered through the ups and downs and sacrificed family time and vacations to make their business survive. Their belief is, if they cannot pay for something with cash then they do not need it.
I respect the energy and devotion but I also take note that the strategy seems to apply to small, family owned businesses with a small number of employees which have remained flat in their growth and have stopped expanding years ago. Expansion and reaching new markets are not typically part of their business plan and they are happy with a fixed income often servicing the same clientele they have for years.
The downside of never financing anything is the limited amount of expansion which can occur. In essence, they cannot grow beyond what is in their bank account at any moment in time. For example, a small business with $100,000 of capital desires to purchase a new $40,000 machine which will speed up production or bring them into a new market or simply replace an old machine; if they decide to pay cash that will leave them with $60,000 in cash reserves. If they encounter an emergency which requires $30,000 then that will leave them with little cash cushion in their account. They have also limited themselves in the case if another opportunity should surface at the same time they would not be able to take advantage of it like paying early for inventory to get a good discount.
The other negative of never borrowing is that your business will not have any established comparable credit so in the case when you do decide to finance anything, the likelihood of getting approved is marginal. A lender will not be able to assess your ability to pay back debt since you have never had any. Some business owners feel it should be viewed positively that you have never had to borrow but in the finance world it is not a positive. No credit history equals no loan.
The mantra in financing is ‘it is easier to finance equipment than it is money’ which is primarily true. Yes, you can get low cost capital from your bank if you have an established credit line but that line will have a limit. It is not a good move to use your credit line to finance an asset or equipment because that line should be used as either a last emergency resort or for short term borrowing. Finance rates are now in the 4-6% which can be stretched out to 5 years and sometimes longer. Many times, when expanding in a careful and planned manner, the finance payment will be less than the added revenue of your new equipment. This is true of energy and cost efficient industrial machines, solar systems and LED lighting.
Financing equipment for your business offers you the opportunity to expand, create more profit and reach new markets and clients. For those that want to know the benefits of never financing anything it is this; you will never owe anybody anything, no monthly payments, no interest and no chance of borrowing more than you can pay back but in that perceived safety there is also some risk and missed opportunity.
There was a time, not too many years ago, when relationship articles were the hot topic. They still are, but they’re not the hottest topic anymore. In its place is now money and security.
One of my publishers, whose opinions I greatly respect, was talking to me about the kinds of articles that most people are reading these days and we thought that with people so concerned about wanting to meet and marry their soul mate, that they were the articles most people gravitate toward. We were wrong.
I was looking over the stats of the articles that I’ve written over the last four years (over 900 articles) and what I discovered is that relationships, which used to be the prime focus of people, has been steadily losing ground to articles about money.
People are now more concerned about financial security than meeting their soul mate. There is more of a here today, gone tomorrow, way of looking at their lives. And business articles, which used to be a big drawing card, don’t seem to have the same impact that they used to.
Today’s hot topics center around getting money for nothing. People have always been attracted to articles about getting a lot of money without having to work for it, but lately, it’s been almost a mania, as evidenced by all the people who set up gofundme websites. This concept is now called crowdsourcing. I call it panhandling or standing there with a begging bowl in your hands asking strangers for money.
I had heard a story about a lazy, spoiled, twenty-one-year-old girl, who is in excellent health, setting up a gofundme website asking people to donate money so that she can go to Japan on a two-week vacation. The hands out, begging bowl concept, annoyed me so much that I wrote an article about it. And, wouldn’t you know it, but the number of people who read that one article climbed much higher and much faster than most of my other articles.
People take a look at Bill Gates and Warren Buffett and all they can see is the billions of dollars they have and they want to have what those two men have. They don’t see all the hard work that went into accumulating that wealth, nor do they see the kind of hard work they do to sustain their wealth. They just see a lot of money and they think they are entitled to the same riches.
Sad to say, but we’re living in a lazy, selfish, society these days and we’ve lost our moral compass along the way. We need to get back to the things that are really important before our whole society comes crumbling down around us.
There are literally hundreds of article and books devoted on budgeting money carefully. I will write on two methods that help me budget money carefully in hopes that others may be able to use this knowledge to help them in their future endeavors.
Method #1: If You Use A Credit Card, Always Check Your Statement Online At Least Once A Week
Most Americans probably own and use a credit card whenever they make purchases, either because it’s convenient and/or because they can get reward points for it. Most Americans are probably aware of the countless stories and articles about credit card debt. However, most credit card debt could be avoided if one pays attention every week to their credit card statements every week.
Whenever I look at my credit card statement every week, I can see how much my balance is as well as what I am spending my money on. When you take a look at what you are spending money on, you can see what expenses you are acquiring that are not always necessary such as eating out or buying things you might not need. It is always important to keep track of your purchases so you can understand where your money is going and if you are making purchases that you can try and trim down a little. The main takeaway from this method is always be aware of how much you are spending.
Method #2: Always Be Aware Of How Much Money Is In Your Bank Account
Most banks will allow you to see your statement online. This is very useful as it allows you to access how much money you have in your account at all times. You should always be aware of how much money you have so that you know how much you can spend. Financial problems often occur when people spend money and are not aware of how much they are spending and how much money they actually have to spend. The main takeaway from this method is always be aware of how much you have available to spend.
THE FIRST THING TO DO
The first thing to do is to get a free copy of your credit report. By law you’re allowed annually one free copy of your credit report from the three major credit agencies: Experian, Equifax and TransUnion. It’s important to get all three reports from all three agencies to compare and contrast any discrepancies such as late payments, charge offs or delinquencies.
SET ASIDE SOME TIME TO REVIEW
Now that you’ve gathered all the information from the credit agencies, set aside some time to figure out where you went wrong with your credit and prepare to fix it. If there are any items on your credit report that are wrong or don’t look familiar, file a dispute in writing. Even errors such as misspelling of your name, social security number or address could mean your personal information is mixed up with someone else. The credit agencies are obligated to remove any errors in personal information, which will help increase your score. The most highly used credit score scale used by the largest banks and lenders is the FICO score and generally a score of 720 and above is considered good.
MONITOR YOUR CREDIT REPORT
One important factor to raising your credit score is to make sure you pay your bills on time. While this may not seem important, 35% of your FICO score is determined by your history of payments made – whether you were late or current with your obligations. During this time of repairing your credit, you should prohibit yourself from applying for any additional credit, which may lower your score. If you have any other credit cards you don’t use as frequently, use them to make small purchases every few months to help grow your score and pay the bill off in full. If there are any outstanding balances from other cards stop using these cards until you pay them off even if it’s the minimum amount.
SEEK A CREDIT REPAIR COMPANY
If you don’t want to repair your credit on your own, you can go through a company that specializes taking care of that task for you. Many companies advertise that they’re the best and can help you clean up your credit within a short period of time. It’s very important to do your research on various credit repair companies to avoid getting scammed. Ask friends or family about a reputable credit repair company they may have used. Be prepared to pay associated fees with such a company.
If you’re afraid to delve into the credit game after getting your credit score on the right path, obtaining some type of credit is key to rebuilding and keeping your good score intact. Look into getting a secured credit card, which is fairly easy to apply for. The good thing about a secured card is you put down a security deposit and whatever purchase is made will directly debit from the card. Managing the account properly and having this card reported to the three credit agencies will help maintain a good credit rating.
Once you get the secured card, don’t go on a spending spree and reach your card’s limit. You may have the idea in your head that swiping the card as much as possible will improve your credit score but it may look as if you’re about to max out to the credit agencies. You will want to use about 10-25% of available credit from the card to have a favorable score.
Commercial vehicles are a great support system and are a life line of a business. Any business just can not do without it as it facilitates the transportation of produced goods so to a great extent it is an important part of a business. Trucks, buses and vans used for business purpose are termed as commercial vehicles. They are the lifeline of a business but their substantial prices might not allow you to own them. Surmounting financial difficulties becomes much easier if you have a strong financial support. Thus to let your easily own a commercial vehicle for business needs commercial truck finance is offered in the market. This loan enables you to overcome all financial barriers to fulfill your needs.
Through this financing option you can buy any type of commercial vehicle conveniently. One can own food trucks, lunch wagons which will facilitate easy transportation of food items. The truck can facilitate you in your construction business, mini trucks and many more. In mobile business, commercial recreational vehicles that can be modified into saloons, classrooms etc are also important. They effectively cater to unique requirements of business but you might not necessarily get approval for it.
One can grab these loans in secured and unsecured form. For secured loans you must place any of your valuable assets as security. In this case generally the vehicle itself acts as collateral and by doing so you can raise a huge loan amount easily. The loan amount will vary from 60-80% of the value of your truck and will not go higher than that. The rate of interest offered is low.
On the contrary, if you dont wish to risk your asset then unsecured loan option would be a feasible one. In the absence of security you will be bale to raise a smaller loan amount at slightly higher rates of interest. The finances through unsecured loan can be used to buy an old or less costly vehicle. In case of old vehicle, the truck that you intend to borrow should not be older than 5 years.
The term of repayment of commercial truck finance varies from 5-7 years. You can schedule the installments suiting your repaying ability and strength.
If you are looking for a profitable deal with flexible terms then online is the best place to search for it. You can apply by filling a simple form and without facing hassles. There are many lenders available and a through market research can definitely fetch you a good deal.
Holiday’s don’t have to cost a fortune to those of us who are taking the time to buy green. What does buying green mean you may ask? Well, simple. Take the time to shop gently used items instead of purchasing new. These used items, will not only saves you money, but it also helps our planet as those things won’t end up in a landfill somewhere when they could find new life in someone else’s home. There is a new wave that is leaning towards this kind of more responsible shopping and anyone can jump on this bandwagon.
What are some things that you may be able to find when buying green? Great question. The list is so long that it would take tons of time to list all the items that a person can find that are gently-used and just waiting for someone to re-purpose, so for the purpose of this article we’ll stick to only the ones that pertain to this topic.
Three Ideas For “Green” Holiday Purchases
1. Holiday Decorations: Many families have wonderful gently-used holiday decorations that for whatever reason they’ve decided to part with. They could be choosing to do this as they wish to change their holiday color scheme, down-size their load of holiday decorations or–like a lot of people I know–have always purchased more than they can reasonably use and only find this out close to the holidays. So help a family out by purchasing their still very good condition decorations instead of brand new.
2. Games, Toys: There are an incredible amount of games and toys out there that only get used one or two seasons and then are stored. Someone could be choosing to sell a used holiday item because of lack of interest on the child’s part of merely because children regularly change their interests. But should all those items end up in landfills? No. They could make beautiful gifts for another child and have a new life as a re-purposed item.
3. Clothing: Who out there doesn’t buy clothing in some way shape or form for their children for the holiday? Why buy brand new when there are so many families whose children outgrow them in a matter of months? These items are still in great shape. They still have those beautiful, expensive, brand-name labels as your kids are looking for, but they come with a price tag that won’t make you feel that you have to take out a loan to pay for them.
When you’re thinking about your holiday shopping this year, why not take a step to buy green? You will love it. Your wallet will love it, and the planet will love it as it will be one more item that isn’t sent to the landfills. If you are someone who finds that they have an overabundance of any of the items listed above, why not resell them. It takes the whole world to take care of a planet. You can do your part by keeping those gently-used items out of the landfills.
Money Matters Financial Services Ltd. is one of the fastest growing financial companies in India. Money Matters Financial services Ltd. is a Non Banking Financial Company and is categorized as a Non-deposit taking systemically important (ND-SI) Non Banking Financial Company (NBFC) by Reserve Bank of India (RBI). Money Matters Financial Services Ltd. is among the leading institutional debt market firm in our country which provides advisory, consultancy and other financial services to corporate and institutional clients.
Money Matters Financial Services Ltd. along with its group companies has set out to become the leading institutional debt market company in India. Money Matters Financial Services Ltd. intend to grow services related to its core debt market practice while scaling other businesses like investment banking and asset financing to support this practice. Money Matters Financial Services Ltd. punctual and dedicated services have given them a growing list of reputed corporate clients. Money Matters Financial Services Ltd. also provides merchant banking and broking services through its subsidiaries, and had about 100 employees as of June 30, 2010 at their Mumbai and Delhi offices.
Mr. Rajesh Sharma is a founder of Money Matters Financial Services Ltd. In the year 1997 with the help of couple of employees Rajesh Sharma started the small office of Money Matters at Fort area in Mumbai.
Excellency, passion, distinctiveness, integrity, knowledge are the core value of Money Matters which helps them build strong long-term relationship with their clients and that helped them to be one of the leading Financial Company in India.
The key to the success of Money Matters Financial Services Ltd. is based on experienced management, innovative structuring, strong relationship capital, effective execution, and diverse client base. Money Matters work closely with clients to understand their needs and they always provide customized solutions to the various financial needs of their clients.
ABOUT RAJESH SHARMA:
Mr. Rajesh Sharma, Chairman and Managing director of Money Matters Financial Service Ltd. has more than 17 years of experience in capital market and financial advisory services.
Money Matters Financial Services Ltd. is expert in debt syndication, debt placement, financial restructuring, Financial Turnaround Advisory and Private Equity/M&A (mergers and acquisition) Advisory. Money Matters Financial Services Ltd. also gratifies other financial services (along with subsidiaries) like investment banking and corporate finance advisory and private equity funding. Money Matters Financial Services Ltd. has been serving various corporate sectors such as Real Estate, Power, Telecom, Hospitality, Retail and Financial services. Money Matters Financial Services Ltd. is full service investment bank which offers advisory services that are relevant across life cycle of a corporate.
Money Matters also provides asset financing which aims to accomplish short-term and long-term financing needs of corporate house which helps in asset financing, prompter funding, structured debt finance, and stressed asset funding and margin finance and debt syndication services like Project Finance: to increase the existing capacity or to set up a green field project.
Structured Finance: to increase the scope of financing by customizing financing structures as per business needs.
Working Capital Finance: short term finance to fill up the gap in operating cycle.
Acquisition Financing: finance to domestics or international acquisitions.
External commercial borrowing: Cost-effective long-term finance, denominated in foreign currency, to fund capital expenditure in Manufacturing and Infrastructure space.
Mezzanine Finance: High-yield debt with equity option for special business needs in the form of last-mile funding.
Debt Capital Market includes services like Long term corporate finance and Short term corporate finance. Money Matters Financial Services Ltd. provides complete investment solution in Equities, Derivatives, Debt Market Segment, IPO and Depository Services.
Money Matters Financial Services Ltd. has been servicing various corporate sectors such as Real Estate, Power, Telecom, Hospitality, Retail and Financial services.
In 2010, Money Matters Financial Services Ltd. was honored with Amity HR Excellence award for performance Management 2010 at global HR summit of Amity International.
By completing Qualified Institutional Placement (QIP) Last year in October 2010 Rajesh Sharmas Money Matters Financial Services Ltd. raised Rs. 445 crores to meet the funding requirement and capital. Expenditure for proposed asset financing business to house products such as Bridge financing, corporate loan/ Project financing structured product funding, Pre- IPO financing etc. to corporate. Money Matters Financial Services Ltd has a corporate lending book of Rs.257 Crore as on Nov 2011.
Net profit of Money Matters Financial Services Ltd. rose from Rs.9.92 crore in Dec 2010 to Rs.12.39 crore in Dec 2011 (by 24.90%), and sales rose from Rs.51.87 crore in Dec 2010 to 149.04 crore in Dec 2011(187.0%). Net worth of Money Matters Financial Services Ltd. is Rs.750 till this date.
Money Matters Financial Services Ltd. supports NGOs like Atma Mumbai, which works in the field of education and children, to bring positive change in the lives of thousands of poor and needy children in Mumbai.
Money Matters has over 70 employees working for them and have offices in Mumbai and Delhi
Taking CFP Online courses is only one a player in the arrangement. The greatest obstacle one could confront subsequent to taking the course is taking and in the long run passing the CFP examination. In any case, CFP exam prepare involves more than simply sitting, listening to the educator or perusing the materials for study. There are different things that should be considered to guarantee you pass this troublesome street and make it until the end. You can just traverse things on the off chance that you have the right arrangement of brain, fixation and center about the things that you do. Most importantly, you need to adore the course that you are taking. On the off chance that you are not sincerely and rationally appended to it, you can pass the exam yes yet you won’t have fulfillment.
Budgetary arranging is a profession that is quickly sprouting nowadays. This is because of the way that many individuals require help for their budgetary circumstances. They don’t know how to contribute and spare their cash for future utilize, they spend left and right and then some. In any case, with the help of ensured monetary organizers, hurrying up things will be ceased and they can inevitably pick the best venture choices that will profit develop all the more. When they resign from their work, they as of now have enough to purchase their fantasy houses, go to relaxes and even send their kids to school. That is the manner by which imperative arranging is.
Taking a CFP Online courses isn’t a simple occupation obviously. You need to have characteristic abilities to stay aware of the pace. Much the same as playing b-ball, in case you’re building isn’t for the diversion, it is better not to do it since you’ll wind up having a hard time. Contingent upon the individual’s state of mind he can endure however for the regular people, they need to truly be cautious about their moves. CFP exam prepare is more than simply retaining the ideas and wordings, it’s likewise a greater amount of preparing your psyche to break down the circumstances, the variables that are encompassing it and settle a few computations.
This involves a decent examining abilities and an ability in math too. In the event that you have both of these things at an abnormal state, then it’s simple for you to pass. Hone makes changeless. This implies you need to frequently answer test inquiries or test addresses consistently while taking in the course. This will build your risk of passing the examination. It makes your psyche get to be adapted to the exams that will take after later which implies that when you’re going to take it, you are quite prepared than at any other time.