Benefits Of Asset Based Lending

Category: Finance.

Simply put, asset based lending is a loan that is secured in exchange for the assets of the company like accounts receivable, inventory and other balance sheet asset items as collateral.

Most of the traditional bank loans are based on the balance sheet ratios and the cash flow predictions. Also known as asset based financing, it a straightforward concept which emphasizes on matching the company s assets to the borrowing needs. The assets of the organization are the major factors on which the loan is dependent, in asset based financing. The major advantage of such loans is the availability of cash for the routine requirements of the company. This leads to greater borrowing capacity than the traditional banking approach. The collateral would generally be the accounts receivables, machinery and equipment, inventories, real estate and other tangible assets. Low rate of Interest: Compared to the unsecured loans, the rate of interest of such asset based finance is much lower.

Benefits of Asset Based Lending. This is because the lenders money is safe with the availability of the collateral item on non- repayment of the loan. The assets are also available when the need arises for working capital loan, to bridge the financial gap in the business life cycle. Liquidity: This gives greater liquidity from a strong cash position. As the company grows, the financial needs grow. The loans are available regardless of the economic condition of the borrower. At the same time for the growth the liquidity is very relevant.

Profit and Loss and credit history: One major benefits of the asset based financing is that the asset value is of relevance to the financing company and not your credit history or the cash flow status. Thus, when there is an urgent need for finance to capitalize on a great business opportunity, it can be accessed with the help of the asset pledged. Quick Finance: The financing organization lends the amount required quickly with least hassles. It is thus useful to meet the seasonal need, acquisitions etc, rapid growth. Short- term asset based loans get paid off quickly from the accounts receivable and the inventory. Commitment: The asset- based loans have flexible repayments plans. Many companies provide customized lending, depending upon the needs of the organizations.

Financial discipline: The borrowing availability is dependent on the advance rates on the accounts receivables. Some companies also have expertise in specific industries that is beneficial to understand the finance needs of the company. This makes the borrowers collect the receivable amount in a more disciplined manner. Few financial covenants: The asset based loans require only a few covenants like debt service coverage and net worth as they are based on the collaterals. Moreover, as only the completed products are eligible for financing, the company improves on efficiency in the production process. In tough financial conditions, the lender shows the willingness to give more time to the borrower as he has the collateral to protect the loaned amount. Thus, these companies extend help to nearly all businesses.

Industry expertise: The financing companies have expertise in dealing with the retailers, distributors and importers, manufacturers within industries dealing with automotive parts, consumer products, apparel, food and beverages, steel and transportation. The asset based lending is useful when you have a requirement for working capital and funds for new acquisitions and major capital expenditures. It also fills in for the funds required restructuring the business and to take care of other finance needs.

Some People Weren T Taught To Use Money Reasonably

Category: Finance.

One of the most important constituents of a successful family life is household budget and other issues concerning it.

Although, more often than not the process of budgeting causes a struggle for power. It s a kind of a strategic game which both of the spouses participate in. Often both members of the family work somewhere and it becomes the reason for one of them to take over the control of their common means. If the spouses make their contribution on the development of their house and prosperity in general, then their family relations should be equal in rights so that husband and wife decide how to command their finance. It is an utter fallacy. It s a commonplace thing that those men whose spouses are housewives ignore their opinion( though it should be remembered that housekeeping is as hard as earning money in the office) . You should bear in mind the following.

But acting like this, men can lose good assistants, because women can take a wise approach to the financial issue and give a piece of good advice in case of need. Whatever income you have it is important to assign some means to each of you. Personal expenses are of importance, especially for housewives. There s no need to limit each other. Economy mustn t become the meaning of life. Everyone thinks that he knows how to spend money rationally.

Otherwise life may turn out to be tense and unattractive. But all these versions and ideas differ. There s no wonder, because they descend from the person s childhood. Some of them are better, some are worse. Some people weren t taught to use money reasonably. This problem can be solved by means of your help and desire to tackle this problem together. If that s the case you shouldn t take a jaundiced view of the spouse, or even show disrespect.

You should acknowledge your financial responsibility so that your marriage be full of common understanding. At first sight the matter of money seems to be unimportant, but in practice you ll be able to make sure that it isn t so. Neglecting it can cause grave consequences. Discussing and reconciling your financial goals will prevent from misunderstanding in your family.

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Disenchanted Customers - Erin Devault about Finance:

As mentioned in a previous article, there are a lot of troublesome issues a webmaster will inevitably face in the course of operating an adult pay site. Think about your hosting well.

People Pay For Services At Agencies That Accept Credit Cards Online - Cecelia Yule about Finance:

The computer geniuses that have developed computers and the internet have made life easier for anybody with a computer and a modem.

If They Say They Are Great, They Made Their Payments On Time

Category: Finance.

I ve sold cars for Dodge, Ford and GMC and all the places that I have been I ve ran into some of the same problems. Why do people try to finance a car if they do not pay their child support?

This one is the worst. Do people out there really think that a bank is willing to loan you money if you will not even pay for your children? Whatever it is, I made this article for all of the customers that have made me waist my time making a car deal just find out that they were behind on there child support. Or is it that you think that nobody will find out? This is for you, stop shopping! That s how you figure out whom you have in front of you, without being intrusive.

When you are is the car business they teach you to ask qualifying questions. Simple questions in conversation like, which lender is your current car financed through. How did you like them? If it is GMAC chances are that you have decent credit, or you did a few years back. If they say they are great, they made their payments on time. With that said I usually could feel a person out pretty well before we even sit down at the desk. If they say I hate them they won t stop calling me, then you probably have a problem.

I never found a way, without being rude to ask. I never knew how to address that question. Are you a deadbeat dad? Most times you don t even think of it because you will see it only about once a week. That is understandable but it is those people that say, "I have good credit I don t owe anybody. " Until you pull their credit and find out they should say, "I don t pay anybody. " Then they have the nerve to get mad at you when you can t sell them a car. Usually a person knows that their behind and they want to try to get approved over the phone, and you can tell them at home to stop shopping.

It s not the salesman s fault you can t finance a school lunch. That would be like calling a plumber out to fix a leak and him coming out just to say I don t fix leaks. They puff their chest out and poke their finger on the desk and say, " if yall don t wanna do it I ll take my business down the road. " Or they say, "This is the fourth dealership that I have been in today and everybody keeps telling me the same thing. " Salesmen don t get paid by the hour, why wouldn t I want you to leave in a new vehicle? It is not realistic to think a salesman wants to pass on a sale, or a bank will loan you money if you will not even pay for your own children. It is free and can save you a lot of time and maybe embarrassment. If your not sure what is on your credit report look. If bill collectors are calling you or your not paying for your children you re probably not going to get approved.

If you can t even afford to pay for your children it s not time to buy a new car. Most places wont even waist their time they send a manager to kick you out.

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You Are Not Required To Use Your Current Mortgage Lender For A Home Equity Loan - Finance Articles:

So if you want to be sure you are getting the lowest interest rate on your home equity loan, shop lenders.

Self Directed IRAs - Finance:

For people that have saved and worked hard, it has become clear that they have ample money to retire so long as they keep their retirement savings working. This is especially ideal for people that are 50- 55 years old and are being forced to exit the work place.

One Explanation Can Be The Fact That Some Of The Buyers Are Property Investors Capitalizing On The Lack Of Money Of The People - Finance Articles:

It is of public interest that The Royal Institute of Chartered Surveyors in association with the Ulster Bank Residential Property Division has recently released a report stating the success of the Northern Ireland residential property sector. The Royal Institute of Chartered Surveyors and the Ulster Bank Residential Property Division stated that almost all the surveyors working in the residential property sector thought the prices for property have gone higher this year.

So, What Exactly Are Finance Charges

Category: Finance.

Regardless of the type of credit card that you are using, chances are excellent that it carries with it some form of finance charge. Most accountants can probably figure it out, but average consumers often have a harder time with it.

Unfortunately, many credit card companies do not spend a lot of time explaining, just how these, in clear language finances charges affect your monthly bill. So, what exactly are finance charges? There are other monetary values on a statement as well such as the purchase amounts of things you charged during the billing period. A finance charge as it applies to a credit card is the amount of money that the card issuer is going to charge you when you use the card to make purchases. These other values are used when the company is calculating your finance charge for the monthly bill. You can eliminate finance charges altogether by simply paying your balance off each month within the grace period allowed by the company. One of the best tips for using credit cards is to either reduce or even eliminate the finance charges.

If you do not carry over a balance, you will not be charged interest. A good way to reduce the amount you have to pay on finance charges is to reduce the amount that you charge each month. It is only when you do not pay off the full amount and some( or all) of your purchases are carried over that you are charged the interest on the amount carried over. This is only common sense, but many consumers can save a lot of money each month by simply paying cash for many items, especially if they are in the habit of carrying over a balance. The APR is the Annual Percentage Rate. Finance charges are calculated by using the amount of your outstanding balance and the APR that applies to the card.

Consumers should understand that the ARP can vary from one company to the next, and it can even vary within the same company. In addition to using the cards with the lowest APR s you should also use the card that best suits your needs in terms of finance charge method. There are several ways that credit card companies can calculate the finance charges that they apply to consumer credit. Some companies will use one billing cycle for figuring out finance charges, others will use two. Still, some companies will either include or exclude new purchases on the current balance. Some companies may use the previous balance as the basis for finance charges while others may use the average daily balance. All of this makes a difference and consumers should investigate the method that their credit card uses as this can save money over the long run.

Much of this, depends on the, however balance and the time of the month that you make purchases and payments. You will normally find that you have a lower finance charge when the company uses what is known as one- cycle billing and uses the average daily balance method which excludes new purchases. The next lowest finance- charge method that some companies use is the adjusted balance, followed by the previous balance method. This information is written on the reverse of your statement. You can see which method the company is using by reading the bill that you receive. It is also important that you understand that some companies will have a minimum finance charge system. When a credit card company uses this system you will be charged that minimum amount even if your finance charge is less than that amount.

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It Can Be An Unsecured Personal Loan Or A Secured Personal Loan Depending On Your Circumstances - Zelma Smythe about Finance:

Personal Loans have become an easy option to take in todays financial market place because they provide a range of choices to people.

If You Are Not Sure Whether Credit Cards Are Really Necessary, Then Here Is Some Advice To Help You To Decide If You Need A Credit Card Or Not - Finance Articles:

If you don t have a credit card or have one that you don t use very much, you may be asking yourself: "why do I even need a credit card? " Many people are sceptical about the need to have a credit card, even though so many others have more than one. Do I need a card?

Determine The Length Of The Loan - Finance Articles:

There are many new types of loans available for financing your new home purchase. You have a few options such as 15 years, 20 years or 30 years.

The OIG Also Recognizes The Diversity Of Services Provided By These Medical Billing Services

Category: Finance.

The Federal Government s Health and Human Services Office of Inspector General( OIG) publishes the Compliance Program Guidance for Third- Party Medical Billing Companies. The OIG recognizes the diversity of organizations that comprise the third- party medical billing industry.

A set of voluntary guidelines for third- party medical billing services to formulate and implement internal programs intended to safeguard against fraud and abuse of government healthcare agencies. Medical billing services ranging from publicly traded multinational organizations to the medical billing service operated out of a basement corner. The OIG believes that, regardless of the size, resources and services rendered by third- party medical billing services, every organization will benefit from the principles espoused in the compliance program. The OIG also recognizes the diversity of services provided by these medical billing services. In order to be effective, the governing body of the billing service( Board of Directors, Partners, CEO, etc. ) is required to formally commit( document) to a compliance program that includes at least seven applicable elements. The OIG notes that these elements are based on the seven steps of the Federal Sentencing Guidelines. Before we get any further, a word about the seven elements.

If you have any question about The Federal Sentencing Guidelines, they are detailed policies and practices for the Federal criminal justice system that prescribe appropriate sanctions for offenders convicted of Federal crimes. Code manipulation and financial relationships with vendors; The designation of a chief compliance office( CCO) and other appropriate body, i. e. compliance committee, responsible for operating and monitoring the compliance program and who reports directly to the CEO and governing body; The development and implementation for education and training programs for all applicable employees; The implementation of a mechanism or process, i. e. a hotline, to receive complaints and fraud tips and procedures to maintain and protect the anonymity of the complainants; The development of a system to respond to allegations of improper/ illegal activities and the enforcement of appropriate disciplinary action against employees who have violated internal compliance policies, regulations or Federal, applicable statutes, State or private payer health care program requirements; The use of audits or evaluations to monitor compliance and assist in the reduction of identified problem areas. Again, a medical billing company s statement of compliance should contain the following seven elements: The development and distribution of a policy indicating the processes and procedures designed to insure a company s commitment to monitoring and addressing possible areas of fraud to include the claims submission process. And. I ll continue to talk about the OIG s Compliance Program Guidance for Third- Party Medical Billing Companies in future articles. The investigation and correction of identified systemic problems and the development of policies addressing the non- employment of sanctioned individuals. If formulated and documented properly, a medical billing service s compliance program will make up a significant portion of the company s policy and operating manual- particularly for smaller billing services.

A third- party medical billing service should consult with a lawyer or other professional when developing a compliance program. Disclaimer: This article is for informational purposes only and is not intended to be considered legal advice.

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To Qualify For A Reverse Mortgage, You Must Be At Least 62 Years Old - Finance Articles:

A California reverse mortgage is a helpful way for senior citizens to collect money on the equity of their home.

Low Rates Are Attributed To Loans That Carry Very Low Risk And For Larger Amounts Of Money Over Longer Terms - Alissa Casali about Finance:

Seems simple doesn t it?

Queue, Unsecured Loans For Tenants And Tenant Loans - Finance Articles:

Dreary weather, a job you can t stand, nothing on the telly- all good reasons for getting away from it all. Climbing up those stairs into the plane and waving old blighty goodbye for two weeks is just what the doctor ordered to get you back into the swing of things. .and when you arrive at the hotel, you check out the pool, the room and the bar, oh, and not forgetting how far it is to the beach and the town centre for the shopping.

Real Estate Bubble- What S In A Name

Category: Finance.

Real Estate Bubble- What s In A Name?

Others might not be quite so familiar with the term, but will understand that the selling and buying of any commodity goes through ups and downs. Most people have heard of a real estate bubble, or might be familiar with the idea that a rise in prices often bursts like a bubble. But just exactly what is a real estate bubble and how does it affect buyers and sellers of property? The result of this increase throughout the market is inflated prices that might be good for the seller but not so good for the buyer. The basic definition of real estate bubble includes reference to a quick rise in property values that often covers both residential and business property. Ultimately, the buyer is taking more risk when purchasing a home or building during this part of the cycle, because real estate values may go down, leaving the owner with property worth less than the purchase price.

There really isn t a number or price level that determines this. Some observers of the real estate scene have had heated debates about what makes a real estate bubble and what is really just a good home- buying market. Often the potential homebuyer or investor has to rely on the so- called" experts" to tell him or her where the hottest markets are and where a real estate bubble might exist. Over the past few years, a number of consultants and financing companies have prepared reports intended to identify where the best home- buying areas are. Bubbles in any industry carry risk and instability with them, while a" boom" or genuinely heated market may have less risk. In addition, these studies can show the buyer and seller where a true real estate bubble exists, helping these folks avoid some of the risks that come with a potential" bust" in prices of properties.

Simply put, equity is the amount of value the owner has in the home, as compared to the value still held by the bank or mortgage lender. One factor to understand when considering the idea of a real estate bubble or" up" market in real estate is equity. If the bank has a huge portion of the value in a home that is part of a true bubble, the homeowner could be at risk. As one expert noted years ago, the market in any commodity, will fluctuate, including real estate. The lender still expects you to pay based on the numbers in the loan agreement, while the market has dropped the street value below the loan amount. Prices will go up and down over a period of time.

That s why patience is a key to realizing profit from sale of a home, as well as in buying property. There may even be some eye- opening rises and drops in price. Catching real estate prices at a low point can be the start of a great property investment. It is always a good idea to be informed of the potential for profit and loss in an strong real estate market, a weak market or in a true real estate bubble.

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Ningbo Is One Of The Largest Ports In China - Finance:

This guide has been prepared by the Zetland Financial Group Limited and is intended for the information of clients or prospective clients. The information set out is not, nor is it intended to be, exhaustive.

So Check The Terms In Your Business Credit Card Agreement Beforehand - Finance Articles:

Virtually all the business credit card issuers provide free vehicle insurance cover for rental car vehicles that are paid with their business credit cards. In case an accident or theft occurs while you are driving the car, the business credit card issuer undertakes to reimburse you for the cost of repairing or replacing the vehicle.

Credit Cards Are Almost Essential In This Modern World - Finance Blog:

Many people have viewed the Capital One credit card advertisements on television. Capital One secured credit cards offer some special benefits for a group of people that would not receive a normal credit card.

Make Your Credit Card Bill Payments On Time And In Full

Category: Finance.

The majority of people who get into credit card debt have probably been guilty of irresponsible or indisciplined use of their credit card or have probably not made the payments as they are required to do so. For those of us who enjoy a reasonable to good credit rating, it is so easy these days to make an instant online credit card application and suddenly have money to spend!

Here we will look at a common- sense approach to paying off your credit card debt. But it is wise to regard a credit card simply as a facility that is convenient and easy to use and will save you needing to carry large amounts of cash around in your pocket. Your instant online credit card application should be made as part of your financial management not as a long term loan. A credit card should never be used to bolster ones financial image, purchasing items that you could not afford if you didnt have the card facility. However, finding yourself in a financial mess through over- use of your credit card is not the end of the world, and often the situation can be corrected with a little discipline and self commitment. There are a many ways to pay off or reduce your credit card debt and I don t mean by transferring the debt to another card. Making that instant online credit card application does not need to be an incident you regret.

That action may relieve your current financial stress, but it does not make your overall debt any less. Here is a simple way to clear your credit card debt and at the same time protect your credit rating. 1/ . Therefore your payments will still need to be found when the monthly statement arrives. Put your card away safely and do not use it to either pay bills or make any purchases. It will without doubt be tempting for you to continue using the card, but if you are to get your credit card account under control it is important that you enter a period of time when you do not use it for any transactions at all. 2/ . This is where the discipline comes in! Determine a period of time that you will take to pay off your credit card balance.

Now all you need to do is make those six payment and you will be without credit card debt once again. 3/ . Say for example over six months, then divide your balance by five allowing for your last payment to cover the interest accrued while you pay off the debt. Place your credit card debt at the top of your priority list when budgeting your monthly expenses. Once you have reduced your credit card debt down to zero again, and only then, then, can you begin to use your credit card. The interest you are charged on your card is at a higher rate than any other bills you may need to make, so be sure to make your credit card payment before you treat yourself to new clothes, shoes or other items you can manage without. 4/ . But this time, remember your self inflicted suffering while bringing your balance down to zero, use your cards wisely and make sure you do not get yourself into the same financial mess again.

Ok, you have done well so far, but you need to see the whole financial excercise through. It is never enough to simply pay off your credit card debt and be proud of your achievement. It is equally important for you to maintain a debt- free status even after you have paid off your credit card debt. Learn your lessons well and do not allow yourself to get into excessive credit card debt in the future. Only then will you be able to enjoy a stress- free life as far as your credit card is concerned. Remember the simple rules that you followed when you were trying to pay off credit card debt. Always keep within 70% of your credit limit.

Do not overspend. Make your credit card bill payments on time and in full. The pressures created by credit card debt can be enormous. Don t hold more than 2 credit card accounts( two are enough for anyone) . It can have an adverse effect not only on your health, but your relationships and your creditworthiness too, and you owe it to yourself to treat all threeof these with total respect. This way your credit card facility will often cost you zero. Try to simply use your card only for items you know you can afford to pay for when your card bill comes in at the end of each month.

Paying the minimum payment on a credit card is fraught with danger and will surely cost you dearly in the long run. Trevor Taylor Simply stick to these very basic guidelines and you will enjoy the facility that your credit card offers you.

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The Time To Start Planning For Retirement Is Now - Finance Blog:

More than 60 million women work in the United States, yet less than half participate in a retirement plan. On average, a women retiring at age 65, will live another 20 years or more!

Having A Credit Card For Emergencies Is Again A Sensible Idea, Unexpected Bills Such, Especially For Larger As Car Repairs - Maura Daffin about Finance:

The ability to manage your personal finance is key for successful long term financial health and stability.

The Story Is Really About Identity Theft - Finance Articles:

Since the beginning of the internet, " identity theft protect yourself" has been an issue for anyone who surfs for pleasure or business, and even those of us who don t go online for any reason. Everyone should know the most common tricks, so we all have at least a basic understanding about how identity theft works, both on and offline, in front of the computer, as well as in our everyday lives.