Finance Roll

Many companies look to stay competitive in the world of today's business, many do so by unleashing the graces of cash flow. Accounts Receivable Factoring helps you do that. Factoring increases the cash flow by transferring the responsibility for the collection of your customer's debt and turning it into funds available for immediate use. The company will lend you money on your discounted accounts receivable and they will keep a percentage after they are collected.

Accounts Receivable Factoring is attractive for a series of reasons. The most popular benefit is the increment in working capital. You do not have just anyone looking after your accounts receivable, but you have professionals doing it. Their expertise guarantees that you collect your money faster that you would using your own resources.

If you are a small entrepreneur, you would be highly attracted to Accounts Receivable Factoring. It will enable you to have a greater liquidity to face go about the daily activities of your company. What once was in the hands of your customers, now turns into funds that you can use to pay your bills, your employees and use for investments. Having your people collecting that money and you paying for the costly process is not a profitable option.

When considering the benefits of Accounts Receivable Factoring, we suggest you study in detail what Factoring companies have to offer to you, what they ask in exchange and if it is an appealing path for your company to follow. Many companies have enjoyed the benefits of AR Factoring and yours could too.

Factoring is an investment that has a cost. The price tag on factoring services obeys to a series of considerations done by the company. Your business is appealing to them when the benefits are higher than the risks they are taking and the costs it implies. They generally charge you from 65% to 90% of the total amount of your accounts receivables. Any given amount is always the result of conversations with the Factor and agreed upon the basis of the interests of both parties.

When looking at your proposal, the factoring companies will look at the following information:

Financial stability of your clients. The factoring company takes higher risks when the ability of your customers to pay their credit is limited. In short, customers with bad credit require more investment from the Factoring Company to collect.

The dollar amount being factored plays a large roll in the fee for the service.

If your commitment with them is long or not. The longer the better. The factoring company will see positively the fact that you stay with them for longer rather than shorter time and therefore they reward you with attractive interest rates.

Make sure you study the pros and cons of factoring for your company, and when you decide to enjoy the benefits of Accounts Receivable Factoring do not forget to read the small print.

Sometimes it's a rude awakening. Imagine adding 5-10% to the cost of your home building project ... just for the cost of financing! Well, that's often the case. Money doesn't come cheap. Even when interest rates are relatively low.

Most of us have experienced the process of procuring a mortgage when either buying or refinancing a home. We know about interest rates, closing costs, and appraisals. When you are preparing to build a home things get a bit more involved.

Construction Loans: Your Bank Loves You, But ...

So often I hear people say they aren't concerned about the loan to build their home. They have a good relationship with their bank and they "know" that it's not an issue. Whoa, hang on a second. It pays to contact them early in your planning and get some specifics. Here are some of those specifics:

• Are you an owner builder or are you turning it over to a licensed contractor?
• Does your bank screen the contractors for approval?
• What kind of equity does the bank require you to have first?
• Do they use a "builder's control" system for paying bills?
• Will you be required to make construction loan payments?
• How many months is the construction loan term?
• Will the loan automatically roll over into a 30 year mortgage?

These are important questions to ask. You don't just want to ask if they do construction loans and leave it at that. It could seriously undermine your planning and preparations.

The Cost of Your Construction Loan is Another Story Entirely

Now that you have your answers and you are satisfied that you can get what you need, what's it going to cost you? Prepare to be impressed. And, not so much in a good way. Interest rates are only a part of the story.

The lender wants you to budget your project. But, you have to also budget in the cost of the lender! Let's take a look at why that can be a big chunk of change.

1) Points: Sometimes this can be confusing. What are points and why are they charged? You could look at points as a tax or a fee added on to the loan. It's really a way for the lender to charge for their services while still appearing to be competitive with their rates.

A single point is one percent of the amount of the loan. With construction loans, points are sometimes higher due to the added risk the lender is taking. To give you an idea, if a regular mortgage would require one point, a construction loan could be two or three.

2) Appraisals: Whenever you get a loan on real estate, it is a given that the lending institution will want to establish the value by ordering an appraisal. When you're applying for a construction loan there could be more than one appraisal required ... often there are several. At a minimum, they'll want the current land value, the current projected value of the home to be built and perhaps the value of the home once completed.

3) Administration fees: Putting together and managing a construction loan is more time consuming and costly than the regular mortgage that you might be accustomed to. This is something to discuss with your banking institution or mortgage broker.

4) Interest Reserve: There will be interest charges. Whether or not you have to make payments along the term of the loan, you'll need to incorporate these charges into the loan amount itself. So, if you do not make the payments along the way, you'll be including an interest reserve which simply adds to the amount you need to borrow. (On average, this could add $15-25,000 for a project)

5) Contingency Reserve: Oops! Another reserve? Quite often, yes. Many banks and lenders will require you to set aside an additional amount within the loan amount to cover the "what-ifs" of building. And most home building projects will have some of these. I believe it is wise to include them whether or not your lender requires it. (Many times it's wise or required to add $20-30,000 or 5-10% of the total cost of your project.)

What Does All This Mean?

Even if you don't end up using the contingency reserve fund, you still will have to figure it in to your planning and qualify for that additional amount in your loan. This could reduce the amount of funds available for building your home.

Certainly it's no fun thinking about the cost of borrowing money. Yet, it's the system we have and frankly, without it, how would we go about something as magnificent as building a home? The bottom line is that the system gives us an opportunity to create that dream home and make it happen now.

Learn all you can first. Prepare yourself well. Get a good coach to help you convert your ideas into practical steps and then get to stepping!

Need to meet payroll? Are suppliers demanding payment? Has the bank reduced or pulled your credit line? These are just a few of the challenges facing businesses in today's economy. In fact over one third of banks surveyed by the Federal Reserve in April 2009 have reported a decline in credit line and credit card limits for businesses.
 
Accounts receivable factoring supplies an alternative solution by providing a cash advance on outstanding invoices. Since it involves the sale of an asset at a discount rather than a loan, it can provide a viable financing option as banks continue to tighten their business lending.
 
Here are three ways to know if your company could benefit from discounting invoices to a Factor:
 
1. No Longer Have Enough Conventional Financing

Factoring is considered specialty financing making it generally more expensive than conventional bank loans. It might seem obvious but if a business has sufficient financing through traditional bank channels than selling invoices isn't really necessary. But when banks say no or existing credit lines dry up the only alternative might be the funding factoring provides.
 
2. Need Quick Short-Term Working Capital

When suppliers are demanding payment or payroll is looming, obtaining an advance on outstanding invoices can provide a quick infusion of cash. The initial application process can often be completed in under a week and once approved most factors can fund qualified invoices in 24 to 48 hours.
 
This makes it a common financing arrangement for some industries like manufacturing or temporary staffing. For instance, a staffing agency is often in the position of paying their temporary workers on a weekly basis but payment on the contracts could roll in two to four weeks later.
 
3. Potential Growth Profit Outweighs Cost

When a business has an opportunity to grow the cost to factor can make economic sense. For instance, ABC Widgets sells product at an 18 percent profit margin and has the opportunity but not the funding to expand business. Initially it might seem expensive for them to pay the 3 to 5 percent discount fee a factor charges. However, if ABC Widgets can now transact more business at the 18 percent profit margin they will still realize 13 to 15 percent in additional profits for the increased business.
 
The entrepreneurial spirit of the small business owner is a key component to paving the road to economic recovery. Factoring accounts receivable can offer an alternative cash flow solution providing the working capital it takes to get the job done. 

Your understanding and correct use of the available business tools will determine how far the business goes. Regardless of size, every business needs tools to setup, administer and properly run. Some of those tools are purely financial in nature. A fair understanding of finances is necessary for every leader regardless of profession. You ignore your financial performance at your own peril. You are able to make better, informed and calculated risks or decisions whenever you know the financial implications. Every decision you will ever make has a financial implication; it will either increase your financial position or reduce your financial balance. You should never be surprised why and how you seem not to have enough money for your needs when you are not able to monitor income and expenditure patterns. This article may not make you an accountant or finance manager but it is meant to give you a few tools that are pertinent in giving you some grounding on the subject of finances. Other business tools are covered which when made use of can maximize the potential of the business.

Business & Finance 101 - Vital Tools

1. Knowledge of Finance Basics - I will highlight the few financial tools. I also recommend such courses as Finance for Non-Financial Managers. The points below will give you a jump start and possibly give you enough appetite to go a little deeper.

• Income Statement - Sometimes referred to as Profit and Loss Statement - Profit is the money you remain with after trading or selling your merchandise. It is the sum up all your sales invoices (income) minus all costs involved in the sale. The balance is a gross profit. In situations where you find yourself without money enough to finance your costs, we say you made a loss. A loss making position will drive you out of the trading position sooner than later. Every wise CEO always endeavors to lower the costs of production as much as possible so as to make goods and services affordable and competitive in pricing. That way you are able to sell volumes which increase your profitability. A profit and loss statement will include Total Sales (T), Cost of Sales "direct" costs(C), Gross Profit (which is simply T minus C. You also have Operating Profit which is profit before interest and taxes (PBIT). When you have removed all the interest and taxes you come up with Net Profit or Net Loss.

• Cash Flow - Every business has a prerogative to generate cash. A cash flow statement will show clearly what happened to the cash you have been generating. Cash refers to "hard cash" which is Cash on Hand, petty cash, and cleared funds in the bank as well. I am saying cleared because you can not make a decision on money which is not yet reflecting as available. What if the cheque bounces, or transfer is reversed? I used to value the Profit and Loss statement more than this until I realized that this statement tells me whether I am generating cash or I am simply consuming it all up. It is important to note that even though you may be having a profitable position according to the Income Statement above, you may be using up all your cash and soon face the wrath of bankruptcy.

• Balance Sheet - This is the document that shows us our asset levels. Whenever you purchase assets for your organization, the value should be recorded as per invoice. Over a period of time the asset goes down in value (depreciates) or it may increase in value (appreciation). It is important to keep a track of this value as it helps you to know when to replace the asset. A balance sheet will inform you about the value of the business. It is tragic to judge a business by the bank balance as all that could be funds waiting to be paid out. A balance sheet includes fixed assets such as land, plant equipment, vehicles and current assets which include cash in bank, stock levels and what customers (debtors) owe. The two asset types added together give us total assets we have. It also includes the company's financial obligations (liabilities) which may be classified into long term liabilities (loans payable after long periods e.g. 5 year loan) and current liabilities (short term loans, what is owed to suppliers / creditors). In addition you need a record of all assets with their serial numbers and values in a book called Asset Register.

• Budget - This is a financial plan which shows a projection of where we expect to get funds from and where we also expect to spend. A budget is a wise inference made based on studying previous behavior. It helps the leaders to manage costs. In well managed businesses, they will not spend on what is not budgeted for. Where expenditure surpasses budget, the respective department has to answer questions such as why? How come? What can be done next time to stay within budget? A comparison of budgeted versus actual figures is always important at the end of each month. Since a budget is a forecast of future performance, there is need to know the historic performance of a company especially in the recent past with consideration of any changes in the environment. A budget can only be useful to the degree it is realistic and reflective of the economic environment the company operates in. The budget tool is a useful tool for every leader. Get everyone section, division or department come up with their own budget which you consolidate to the main corporate budget.

2. Strategic Plan and Business Plan - A strategic plan a mandatory document for the growth and development of the business. As the name suggests, it contains business strategy which encompasses, the vision, values, strategic goals and objectives and all the necessary resources required to achieve the stated goals. A strategic plan can be one year, 5 or even 10 year plan. Take leaders away on a brainstorming strategic session rather than one person sitting down to formulate a strategy without consultation. Just because you are the founder does not mean you can do it all yourself. Get external assistance to help you dream better. Your strategic plan has direct effect on future business performance. A business plan is similar to a strategic plan and it contains most of the financial documents but most importantly projections of anticipated performance in the future. Banks look at your business plan in order to give you loans for capital expenditure or normal operating income.

3. Management Information System & ICT - It is important to note that the Information Age we are operating in calls for organizations to strengthen their access to Information and Communication Technology and usage of business intelligence tools for decision making. Online transactions have become the order of the day. Your clients are not just in their office. They live on the internet. ICT is no longer just a cost center but a revenue driver. You will gain more revenue as you maximize your presence online and your efficient electronic communication. There are different Management Information Systems available commercially to meet your industry specific situation. Sometimes you may need to engage a software developer to create your system from scratch in situations where there is no solution readily available on the shelf (tried and tested).

4. Marketing and Sales Plan - You may have the most brilliant product there is on the market but without the clientele knowing about it, it will not translate into revenue. A marketing plan is meant to raise or increase your presence on the market. You strategically assess each of the product or service you provide and determine how to roll-out the awareness campaigns and launches through various media such as internet, radio, television and print media. You cannot talk of market awareness without referring to brand awareness. Your brand identifies you and leaves an indelible mark in the mind of those who see it. Your marketing team should follow a brand manual which spells out your logo, accepted fonts etc. You must always ask yourself the fundamental question "who out there needs our services and may not know about them?" This plan will help you achieve just that.

5. Human Resource Plan - You can have all the systems you need for your business and all the capital necessary for you to take off but without people to run the systems and execute the plans, business success remains a far-fetched idea. You need a sound incentive system that looks at rewarding high performers. How do you motivate and keep the employees you have? Do you have a performance management system? What are the criteria for recruitment to specific jobs? Review job specifications / expectations and perform job evaluation. Where there is no HR System or plan, employees do as they please. HR system will help you manage induction, discipline and mentorship of recruits. Love people and see how they increase in productivity.

6. Procurement Policy - Do you strategically source your inputs and stock? When you have a sound policy, you remain competitive in your market. Always avoid middleman in instances where you can buy direct from source. Avoid keeping stocks which will not move. Use the sales reports to determine what kind of products to stock. You need to setup authorization levels for procurement. You do not want to be suddenly shocked by huge invoices. This system should work closely with the budget tool. If it is not budgeted for, it will not be procured unless by special arrangement with leadership. This policy should allow for regular reporting on stock and procurement activity. That way you make informed decisions ahead of time.

7. Communication & Reporting Strategy - Internal and external communication structures can easily become the resistors for smooth flow of information and hence slowing down of decisions that need to be made timeously. As the CEO, or head of department, you need to take time to communicate vision and spell out the goals and objectives. Regular meetings with team members keeps you informed of issues as they arise not after incubation. You are able to decide on the way forward reducing any impact to the organization. In all the systems mentioned, be it financial, HR etc. there is a regular generation of reports. This tool spells out deadlines and how often reports should come out. Who is privy to which reports? A system is only good to the level to which it can give feedback to leaders for them to make informed decisions.

8. Comprehensive Corporate Profile - A corporate profile contain all the relevant information and documentation. Before companies meet you to explain your goods and services, they need to be convinced by what they see in your profile. A profile is almost like a CV of your business. Some corporates are creative enough as they make the profiles on interactive DVDs or CDs which they send out to the corporate work. Your profile would generally contain what you find on the main website of the company. It covers you background as a business, your vision and values, it also gives details of product lines you specialize in, the team's individual write-ups (miniature Cvs) which spell out skills and experience, reference sites where you have provided the services before. This document speaks on your behalf in your absence hence it has to be of high standard, something that encourages the customer to continue reading. The marketing team can be used to come up wit this plan.

9. Research and Development - The strength in every leader is the ability to manage change, to be able to run the business based on best practice and setting standards that many would want to follow. To do that a great amount of time and money must be spent on R&D. When you do this you will find out how not to do certain things, avoiding the pitfalls of others and most importantly you stay abreast with latest trends. Excellence is achieved as you continue to for the development not only of the product but of the employee who is also a producer. As you research and get knowledge, pass it on to those in your team.

10. Safety, Health and Environment (SHE) Policy - It is no longer possible to just do business without considering the impact we make on the environment. The world is going "green", eco-friendly products and processes. Before you make your packaging, consider what it does to the environment on disposal. In your production line, the safety of your employees is of utmost importance. Unsafe environments can easily be shut down by authorities. If you produce goods in filthy environment, you will endanger both the employee and the consumer. Any industry which is production oriented, manufacturing, factory, heavy machinery based processes calls for leadership to put priority on SHE. What use is your mining venture if in one minute you can lose 400 employees in a shaft? If you cannot invest in SHE, the best advice one can give change the line of business rather than risk people's lives.

Selling your business is a serious decision and one which may create the largest swing of wealth in your life. It can give you the opportunity to relax and reap the benefit of your hard work.

It also takes away your career and part of you so you need to be ready for it! All to often people sell a business then are not sure of the next step.

Here are some basic thoughts for you to consider:

1) Have a plan pre sale and post sale; Why am I selling the company? What is it worth? What can I walk away from this company for? Am I willing to dissect every piece of information in my business to give to a buyer? Post sale - What do I do next?

2) Have you taken into account you will have to play a major roll in financing the deal?

Most sellers who have not sold a business believes they will get cash for a company. That does not happen to often and you may have to finance 20 to 80% of the deal. Most transactions require this.

3) Have you taken the time to make a deal book. What is a deal book? It is a full description and discloser of everything in your business. You need to review everything to maximize your deal.

A deal book can be thousands of pages long, in a handful of binders. You can not under estimate the power of this knowledge, it shows a buyer your serious and you have nothing to hide.

4) Have you put yourself in the buyers shoes? Redo the cash flow with bank loans, can a buyer afford to buy the business based on actual cash flow?

This again is under played, you will have to care post sale, you will be owed money and if a buyer can't pay you the deal will never reach its completion.

These are a few key notes.

Women have a love/hate relationship with money. Most of us do not enjoy dealing with it, yet we know not having finances under control will cause our entire family to suffer.

A recent guest on the show Karen Franks, explained how important your credit is and how you should check on it often. 'At least twice a year", says Karen Franks. Checking our credit is one important proactive way we can make sure we are in good financial shape. She also mentioned that many married women have better credit score than their husbands, even if they do not make as much. When another show guest, Dan Contreras talked about financial planning, he stressed using a professional. 'Don't rely on hearsay, get some real understanding about your situation." And Linda Hollander the author or Bags to Riches says "Mentors are the fast track to success". Find someone who has reached the same financial goals you want to reach and then do what they did. This simple technique works even if your goals are modest. While everyone's situation is different, I really just want to motivate you to do something to have a positive effect on your finances. Here are a few simple things you can do that will start the ball rolling.

1. Get a copy of your credit report and check it for errors( free if you have been turned down for credit)

2. Look at your savings plan, are you on track, do you need to increase or decrease the amounts you are trying to save?

3. Look for your insurance policies, be able to get them immediately, know exactly where they are.

4. Start some financial education with your children. Start a student saving account.

5. Start planning next year's financial goals. What do you want to change, what goals do you want to accomplish, what new accounts do you need to open and which accounts should be closed.

If you handle your finances you'll be in The Wright Place!

Most types of investments won't allow the use of high leverage using the securities themselves as collateral. This makes real estate investing somewhat unique in its use of financing. The use of leverage in real estate investments is a proven method to accelerate returns and create wealth. But one must be careful not to over-leverage. As we examine a few of the various types and sources of financing available for self storage facilities, I will also point out the dangers that can result from over-leverage and pitfalls of various financing structures.

There is a wide array of financing vehicles available from an assortment of institutions and intermediaries. What was once a short order menu in the financing arena is now a smorgasbord of products that can be mixed and matched to accommodate almost any project. There are trillions of dollars in real estate mortgages issued each year in the United States alone. It has been estimated by the US Congressional Budget Office that approximately 76% of the nation's wealth is in some form of real estate ownership or securities backed by real estate. That dwarfs the investment in all other industry sectors combined.

In the past twenty five years, the financial industry has rolled out a myriad of mortgage products designed to make real estate ownership available to all segments of the population, and in recent years, it has repealed a few.

FUNDING SOURCES

Seller Financing

A common and often times preferred source for financing self storage facilities is some form of seller-held financing. There are many advantages to using seller financing to fund a portion or perhaps 100% of your investment. Typically this includes no points, no fees, no appraisal, no survey, and no need to educate the lender about the facility. In addition, I can negotiate directly with the seller (financier) to structure a loan that is attractive enough to convince them to hold some or all of the financing. The most common use of this technique, and one I try to utilize on each and every one of my deals, is to get the seller to hold back a second mortgage to fill the gap between the sales price and the first lien being provided by the lender. Seller financing can be either short or long term, interest only or amortizing, with or without a balloon. In many cases, seller carry backs can be sold on the private market to create cash at closing to the seller if the structure and terms of the note are marketable with standard commercial terms.

Private Lenders

Wealthy individuals, or what many in the industry call "Country Club Money", are often used as sources of financing, but may be hard to come by. Low interest rates as of late have caused many wealthy individuals to consider lending money for real estate simply because the returns are much higher than CDs or bonds and the debt is secured by a tangible asset, the facility. The total loan amount will vary based upon the individual and his or her wherewithal. Typically, interest rates can range from 6% to 20% depending on the deal, current market rates, time frame, risk, amount, etc. There is no governmental or regulatory oversight of private lending so rates and terms are negotiable between the parties involved in the transaction. As with seller financing, the terms are generally more flexible than other lending sources and may not require extensive third party documentation and fees, and are relatively quick to close. Most private lenders prefer a short time frame to be paid back, typically one to three years, with the loan being amortized or interest-only with provisions for rate adjustments if interest rates begin to rise.

Mortgage Bankers

Mortgage Bankers are mentioned frequently throughout my home study system, "The Complete Guide to Finding, Evaluating, and Purchasing Self Storage Facilities", as this is my preferred funding source. It is important though to remember that a mortgage banker is not synonymous with a mortgage broker. The simplest way to describe the difference is that a mortgage broker works with multiple banks, and the mortgage banker works solely for the bank in which they are employed. The benefit to a mortgage banker is that they typically possess years of experience and education required to represent a firm as a mortgage banker. In comparison, a mortgage broker can get started with no experience whatsoever. The mortgage banker may have outside relationships with additional sources of funds such as life insurance companies, pension funds, and private investors, and may bring them in to participate on a loan to complete the deal, but this is the exception not the norm.

In practice, both the mortgage banker and the broker fill the same role to the borrower. They specialize in mortgages and only mortgages. The mortgage banker has a small advantage in being able to warehouse a loan, meaning they can close the loan by advancing the banks own funds, and wait for the security of the facility until a later date. This can make all the difference in funding a particular loan for your time sensitive deals. Once you have proven yourself to these banks, you will have access to some of the most flexible financing available anywhere.

There are literally Dozens of ways to structure the financing on your Self Storage Facility that we could discuss, but I'll just cut to the quick and present the way I have structured nearly all my deals, which is a combination of the 3 ways I just presented. Lenders Love Self Storage, and given the system I have created to find the real sweet deals, my banks have no problem approving an 80% LTV Loan. I will then combine that with the aid of either a seller Carrying Back the remaining 20%, thereby making 2 payments to him, or by partnering with some of the "Country Club Money" we discussed earlier in this article.

However, I will caution: I DO NOT RECOMMEND OR APPROVE OF 100% FINANCING, OR THE "NO MONEY DOWN" DEALS THAT YOU HAVE SEEN ON TV, OR PREACHED BY OTHER GURUS! That being said, I have done several deals that have proven to be very successful projects which were purchased with no money down. The difference was that the deals were SO good, and the upside SO incredible, that I felt safe in leveraging them higher than my usual 80% threshold.

The investor that can put deals together by marrying a good loan with their community lender, structuring a 2nd loan from the seller, or from wealthy individuals can win in today's turbulent credit markets. But remember, the deal must be bought well enough that the cash flow must support both loan payments and still provide a decent return to the investor. And trust me, they're out there! I've made a fortune by following those simple guidelines, and you can too!

"I sincerely believe... that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale." - Thomas Jefferson, 1816

Jefferson's warnings almost two centuries ago about the pernicious banking establishments were indeed prescient. The seismic events of 2008 set off by the chicanery of the high priests in modern finance have borne out his suspicions as citizens of the world grapple with the sheer scale of the global credit crisis.

In March 2003, as America's military was amassing on the borders of Iraq to uncover Saddam Hussein's phantom cache of weapons of mass destruction, America's army of investment bankers on Wall Street were quietly manufacturing its own arsenal, diabolically concocting an alphabet soup of financial sludge that masqueraded shaky mortgages and risky loans as AAA-rated investment grade bonds. At the click of a mouse, these toxic securities would transmit electronically over the trading terminals of the world and land on the doomed balance sheets of the unsuspecting buyers, where they would lie in wait to wreak maximum devastation.

With copious amounts of liquidity from the Federal Reserve, collaboration from the rating agencies, an insatiable investor appetite for yield, and good old fashioned American ingenuity, enablers at every level in the financial food chain were about to be richly rewarded for their parts in the great American revolution called "Securitization". In a low interest rate environment, debt or income producing assets such as mortgages, consumer loans, car loans, credit card loans and student loans would be securitized and sold as high grade investments, boasting yields superior to those on treasury bonds.

In the aftermath of 9/11, the world held its collective breath over the apocalyptic warnings of dirty nukes smuggled by terrorists in suitcase bombs. Concurrently, in the far-flung money capitals of New York, London, Sydney, etc, Saville Row suited bankers unfettered by regulators and trained in the dark arts of alchemy diligently sliced, diced and bundled credit derivatives for global distribution, setting the stage for carnage in markets and economies, while receiving eye-popping compensation for devising yet another amazing feat of financial wizardry.

Emerging from the tech bubble and bust of 2001/2002, individual and corporate balance sheets became leveraged at a dizzying pace as America gorged on Chairman Greenspan's largesse of low interest rates and easy credit from lending institutions. Living within one's means, once a lauded personal virtue, lost its quaint charm in the age of hyper-consumption. Without good paying jobs, consumers struggling to maintain high standards of living tapped into home equity to supplement discretionary spending, and sank deeper into personal debt.

Lenders took advantage of the credit binge and promoted variants of risky mortgages and facilitated their refinancing. Mortgage backed securities coveted by yield- starved investors enjoyed robust growth, and complicated derivatives engineered by former physicists fuelled rampant speculation on the trading floors of banks, broker dealers and hedge funds. Barely out of the ruins of the dotcom bust, America was ready to roll the dice again.

Customized to the risk appetite of the investor, derivatives of asset backed securities called CDOs (Collateralized Debt Obligations) would consist of portfolios of fixed income assets divided into separate tranches. The higher quality tranche would offer risk averse investors a lower yield, while investors in the lower quality tranche would be the first to suffer any portfolio impairment in exchange for the highest yield. Mathematical models of financial engineers had shown that, in a perfect world, securities of varying credit qualities could be bundled together with the desired amount of risk and return allocated to each investor. Such models would soon be discredited in the ensuing turmoil of the current global credit crisis.

Seeking the quickest and most attractive returns, vast amounts of liquidity poured into the housing market beginning in 2003, bringing dramatic changes to the status of housing in American society. The bricks and mortar of a residential home no longer provided just a shelter and a sound, long-term investment for the homeowner. Housing began to appeal to the speculative frenzy of the trader class, and runaway prices in California, Nevada, Florida, Arizona and other hot markets were enticing misinformed and unqualified buyers to take on mortgages they could not afford.

While Congress preached the ownership society, unscrupulous lenders used predatory lending practices to sell the quintessential American dream of home ownership. Affordability was sidestepped as a critical issue for the individual homeowner because housing prices were projected to rise in perpetuity, a fatally flawed assumption which remained unchallenged until it was too late. Real estate was deemed a safe investment, and a setback in prices was unimaginable. Standard & Poor's model for home prices had no ability to accept a negative number, according to the cover story titled "After the Fall" by Michael Lewis in the December 2008 issue of Condé Nast Portfolio magazine.

Eventually, the alchemists' gold would revert to lead, and clueless investors in all manners of ill-conceived derivatives and asset backed securities, from Norway to China to the Middle East, would begin the painful process of writing down billions in losses. Seven years after the World Trade Center attacks aimed at destroying American capitalism failed, the world has since dodged another major bullet from Osama bin Laden. However, the irony cannot be lost on anyone that, having risen from the ashes of 9/11, the titans of Wall Street would ultimately succumb to their own greed, hubris and incompetence. The global Credit Crisis now threatens the very survival of the global financial system and the real economies of the world.

Since March 2008, storied names in banking, insurance and mortgage lending have collapsed from the rapidly imploding values of their sub-prime mortgage and derivative portfolios, while other lesser known, but similarly over-extended institutions on the brink have received taxpayer bailouts and written down close to US$1 trillion in losses. What has started as a U.S. housing crisis has evolved into a global credit crisis and has now morphed into a full-fledged economic meltdown that threatens to deflate asset prices worldwide. Haunted by the specter of 1930s depression reprised, governments in OECD countries rush to bolster their national banks and stimulate their economies; desperate to arrest the deflationary pressures from a de-leveraging process that is unwinding the financial system's historic indebtedness at warp speed.

The once mighty, now humbled and chastised, eagerly accept taxpayer balm at the federal trough which, in better days, would have been roundly condemned as utter folly of liberal socialism and, distinctly anti-capitalist. However, with the survival of industry behemoths like AIG and Citigroup in question, and the very future of the modern global financial economy in jeopardy, even the principled free marketeers who subscribe to Adam Smith and Ayn Rand recognize the dire need for temporary suspension of their much cherished laissez faire ideology, and grudgingly accept the economic pragmatism of government intervention. The day will hopefully soon return when the economy will right itself, and charges of socialism can again be thrown about in the same careless and carefree manner as they once were. But that day is not today.

The cumulative fallout from the housing and credit crises reverberating around the world has caused an unprecedented erosion of confidence in the global financial system. Balance sheets bloated with derivatives and mortgage backed securities suffer drastic impairment as the dubious values of non-performing assets are rapidly written down. Credit dries up and lending grinds to a halt at many banks because their capital reserves have depleted dangerously close to regulatory minimums. Without the flow of credit, global economies slam on their brakes simultaneously and enter recession. Stock market investors worldwide have suffered losses exceeding US$30 trillion in 2008, while commodity markets have also cratered with staggering losses in energy, metals and grains from their stratospheric peaks registered barely months ago.

The U.S. government has so far committed US$7.5 trillion in cash injections, loans, guarantees and consumer stimulus to bail out Wall Street, Main Street and Corporate America. The Federal Reserve has also cut short-term rates to almost zero with three and six month treasuries now yielding effectively nothing, Panic-stricken investors in their rush to de-leverage and exit risky investments have pushed up the prices of U.S. government bonds and put a floor under the US Dollar. In spite of massive bailouts, plunging markets, soaring deficits and mounting job losses that shatter investor confidence in the American financial system, the US Dollar has defied gravity and continued to frustrate traders hoping for a quick resumption of a greenback sell-off.

With the tidal waves of the financial tsunami rippling to the far corners of emerging markets like Iceland, South Korea and the Ukraine, it is apparent that the U.S.-originated systemic havoc is no longer contained domestically. Rather, the spreading contagion has exposed the vulnerabilities of an inter-connected global economy, confounding central bankers and policy makers alike as they ponder a global recession cascading over the economic horizon.

Without swift, bold, aggressive and coordinated policy action, a deflationary environment could take hold and the global recession could become a global depression. Although the extraordinary amounts of liquidity provided to counter the deflationary forces of wealth destruction could ultimately be inflationary in an economic recovery; that is probably an outcome which policy makers would not mind confronting, as they face the vastly more ominous threat of falling prices and shrinking output. At that time, when the economies of the world do finally recover, the US Dollar may come under renewed pressure as the currency market will have to digest the implications of an historic expansion of the U.S. money supply.

In the strangest of ironies, the US Dollar which has come to symbolize the collective ills of the American financial system has benefited the most from the de-leveraging process, and emerged amidst the chaos as the undisputed safe haven currency of choice. This phenomenon may be an aberration, but will likely continue until the last bit of excess and euphoria has been wrung from the system. It will take a gargantuan effort to extricate the world from the worst financial crisis since the Great Depression.

It is time to encourage real engineers to build roads, bridges and repair the crumbling infrastructure rather than allow financial engineers to wreak havoc with the next generation of destructive derivatives.

The data and comments provided above are for information purposes only and must not be construed as an indication or guarantee of any kind of what the future performance of the concerned markets will be. While the information in this publication cannot be guaranteed, it was obtained from sources believed to be reliable. Futures and Forex trading involves a substantial risk of loss and is not suitable for all investors. Please carefully consider your financial condition prior to making any investments. 'Member CIPF' or 'MF Global Canada Co. is a member of the Canadian Investor Protection Fund''

Generally all manufacturing companies require some equipment for the smooth running of their processes. They may need to replace any outdated equipment or to buy new equipment at any point of time. Investing in equipment is therefore important for any manufacturing concern. In fact, investing in new manufacturing equipment to produce goods can increase the flow of revenue. Since the cost of such equipments is high, the need for manufacturing equipment financing arises.

Since various manufacturing companies produce different types of commodities, the manufacturing equipment financing options would vary accordingly. You can seek financial help of any of the reliable financing companies in order to acquire new manufacturing equipment that stretch the cash revenues.

Machine tool financing is one of the types of manufacturing equipment financing that is required for any machine shops or iron shops. Lathe machine, drilling machine, routers, roll forming, milling, punch press etc are some of the machine tools indispensable for the machine or iron shops. Computer control machine tools are the advancements in this field. However they are expensive and so seeking the financial assistance of any legitimate financing company are important to acquire such equipment.

Woodworking equipment financing is often desirable to acquire exceptional woodworking equipment. Panel saw machines, belt sander, door frame machine, wood shaper machine etc are some of the unique equipments used in this field. Since these equipments are special in nature, many financing companies may not be willing to provide help. These equipments are not only special but are also expensive. Hence manufacturing equipment financing is a must. There are few valid financing companies that offer financial assistance to buy these types of equipment.

Stone and glass cutting and fabrication equipment are really unique in nature. For instance, diamond cutting equipment can be used for that purpose only. This specialized nature of these types of equipments may raise complexity in getting financial help from the financial institutions. Yet there are some genuine financing companies that offer manufacturing equipment financing help to acquire stone and glass cutting and fabrication equipment. They also provide various options like edge polishing equipment financing, sandblasting equipment financing, glass cutting equipment financing and so on.

Rubber and plastic equipments are required by some manufacturing companies. Recycling equipment, rubber molding machine, thermoforming machine, rubber vulcanization machine, plastic molding machine etc are special in nature and so traditional finance lending institutions may not be ready to provide financial assistance. Hence a reliable financing company which is expert in dealing with manufacturing equipment is vitally important.

Embroidery equipments have undergone various advancements and so acquiring the computer control equipment is important for the companies that engage in embroidery making. Some financing companies offer manufacturing equipment financing help to acquire the embroidery equipment.

Manufacturing equipment financing is not an expense but a step towards greater revenues. Inefficient outdated manufacturing equipment would incur heavy loss to the company. Hence seeking the help of any genuine financial company that do not call for embarrassing procedures is really important. There are some finance companies that help manufacturing companies by approving the loan amount faster and in better terms.

For all high-school graduates, finally going to college and spreading their wings is an exciting time. But the reality of a college education is that it costs money, and financing it is not easy. Students are considered bad credit borrowers by lenders, but these same lenders see potential in students too. This is why it is possible to get student loans with bad credit.

Their poor credit rating comes down to a lack of evidence confirming they make loan repayments on time. But students also need to establish a credit reputation, so loans are granted to them. The trick is to find low interest loans, and that is where federal financial support comes in.

In almost every way, federal student loans offer more to college-goers, making them the best college financing option. But there is more than one federal program available, and finding the right one depends on a number of factors.

Why Choose Federal Financial Aid?

The quick answer to this question is that financial aid, whether issued or subsidized by the Department of Education, is the most affordable. This comes as no surprise of course, since the government is not trying to turn a profit, and so is more willing to approve applicants for student loans with bad credit.

There are criteria to satisfy, but because traditional and private lenders charge higher interest rates to increase their profit margins, students often find that their specific status blocks their qualification. With limited financial resources, secure low interest loans are a necessity.

The great advantage with federal student loan programs is that the pressure to make repayments is not as severe - though that is not to say repaying them in full is not part of the deal.

Federal Loan Options

So, what options are open to those seeking federal financial assistance? Well, the Stafford Loan and Perkins Loan programs are the two chief options. Both are ideal for anyone seeking a student loan with bad credit, but not everyone can qualify for them.

The Stafford Loan is exclusively for those applicants who are enrolling in a college from high-school. The terms offered make it an ideal low interest loan for a first-time college student, with monthly repayments over an extended period of time to keep them low.

They are also available either as subsidized or unsubsidized, meaning the government either pays the interest while the borrower is in college, or the borrower pays the interest and gets a deferment on repayments until after graduation. To get any subsidized federal student loan, it is necessary to demonstrate financial need.

The Perkins Loan, meanwhile, is for those who have already found themselves in serious financial difficulties. The loans are issued by the college, but the government bank-rolls the program. It is a good option for those seeking assistance for a student loan with bad credit, but proving financial dire straits is necessary.

However, for those who do secure this option through their campus financial aid office, it is the best low interest loan deal around. Interest is charged at just 5% and, with a 10-year loan term, the repayments (even after a 9-month grace period) are very low.

Financial Support for Parents

Because federal student loan programs are influenced by government budgets, not everyone who applies gets approved. So, for some, financial support still comes from home. Through the PLUS Loan program, it is possible for parents to get financial assistance in supporting their child at college.

Unlike the Stafford and Perkins programs, the funds are given directly to the parents, but it is only enough to cover 50% of the required funding - enough to ease the extra financial pressure on a family.

When I was young I had a dilemma; was I going to be an artist, which was my natural inclination? Or, was I going to be a musician, which was my passion? I couldn't reconcile the two. But then Disney re-released Fantasia and a year later The Beatles released Yellow Submarine and I suddenly and delightfully realized that art and music, through the medium of animated film, were a match made in heaven.

Over the next forty-five years I used my love of music, specifically Rock & Roll, as my artistic muse. I've painted the lyrics of Classic Rock songs as acrylic paintings, I've illustrated song lyrics in comic book form and I've produced fully animated music videos.

Because of the expense involved in these endeavors and the time they took to produce when I only had my friends and fellow band members to help out rather than a team of professional full time studio employees, my creative output is a fraction of what it could have been if this was my full time job. The fact that I could only work on these projects when my day job in the animation industry gave me the time off and then I had only my unemployment check with which to finance them meant that a project that should have taken weeks actually took years.

Although I lament the CDs of my original songs that never got recorded, the animated shorts and music videos that never got made or the paintings that exists only in my mind, I realize that when, and if, the world ever does get to know me through my artistic vision it will know the me that I want it to see. I have forty-five years of material from which I can present only the best for public consumption. If I had been signed to a record contract or a film studio contract I would have been expected to created a certain amount of product each and every year and release that product to the public. People would see everything I did, as I did it. I would not have the luxury of deciding something was sub-par and trash it before anyone saw it.

We all have old photographs that depict us at times in our lives that we now find embarrassing and wouldn't want anyone else to see. We have the option of pulling those old snapshots out of the photo album and tearing them up but when teams of people have been paid by a company to help you produce those photographs they're not yours to destroy. Like what you've done or not, you have to face the music. Few of us aspiring musicians have ever stopped to contemplate this.

Sooner or later, if you continuously create and produce your art, the spotlight of the public will scan over to you and you'll find yourself being asked; "Okay, it's your turn. What have you got to show us?"

When that happens, if you have the material ready you'll be able to hold that spotlight and get your fifteen minutes of fame. The secret is being able to keep throwing stuff into the light to keep it from wandering off, bored and looking for the next Big Thing.

Luck is the combination of opportunity and preparedness. If you're prepared by having product, being rehearsed and having plans for future products then when opportunity knocks you'll be ready to answer and if you've edited your work wisely people will be astounded that they've never heard of you before now. If not, and you respond to opportunity knocking on your door by answering; "I'm not ready, come back later." You've forfeited your turn in the spotlight which may never return.

In the mind of some men, the man is the king of the castle and the man of the house. For this reason, all family and household troubles are held on his shoulders. For these men, seeking marriage help can be overwhelming at times. Men tend to be less willing to sit down with a therapist or counselor to chat about their marriage issues. Marriage help works best when everyone is interested and comfortable with the process. Maybe a one-on-one session or couple's therapy visit isn't for you.

If you prefer to remain private about your marriage circumstances, you still can get the marriage help you need. Many books are available with practical marriage advice. Take a trip to the library and see what information you can find. Articles on the internet are available specifically designed to educate couples about issues in their marriage. Educate yourself on the topics that give you and your wife the most trouble.

If you and your wife argue about disciplining the children, why not take a child development class or read up on the topic online. Your wife will be impressed with your efforts. This step alone may improve the situation in your marriage.

Are finances an issue in your marriage? Sign up for a credit counseling class at your local college or university. Contact a credit counseling center to learn how to make a budget that your family can work with on a daily basis. Most people don't look at credit counseling and financial planning as marriage help, but you may be surprised to see the improvement in your marriage relationship when money is not a sticking point.

Use the internet as a tool to discuss with other men their issues. The internet allows you the privacy and comfort you desire in regards to marriage help. In fact, trained professionals provide marriage help through counseling and support groups over the web. This convenient and private option may be perfect for your family.

Sticking with the same mortgage lender for the term of your mortgage no longer applies to the majority of borrowers. Traditionally you may have taken out a mortgage and stayed put for the entirety of the mortgage term however in recent times more and more borrowers have realised that this may not make financial sense.

Not being proactive in shopping around could mean paying over the odds for the biggest financial commitment of most peoples lives.

Many borrowers are put off the idea of switching mortgages by looking back to the time when they first bought their home, the seemingly endless saga of loan application and approval, legal work, packing and moving.

Securing a remortgage is in comparison a simple process, it wont generally involve the amount of paperwork, pressure and stress, no gazumping or gazundering either. In many cases it simply means transferring your loan to a new lender for a more favourable rate of interest.

The Pros

Remortgaging will in most cases mean reducing your monthly repayments. It can also be a good opportunity to review your finances as you may decide to pay off some of the capital or you could even raise some extra capital in this way, borrowing on competitive mortgage rates could be more favourable than seeking unsecured finance on generally higher rates of interest.

In many cases a remortgage is a way of securing a new fixed or discounted rate when the existing one comes to an end without having to go on the dreaded standard variable rate (SVR) It may also be that rising interest rates mean that your once competitive deal is no longer as attractive as it used to be, for example, if you have a tracker rate and the base rate is going up after a period of prolonged stability.

The Cons

The cost of arranging a remortgage is of course far lower than that of buying a property - there is no stamp duty to pay, no estate agents to settle and minimal legal fees involved, however remortgaging does come at a price. You may be subject to a valuation fee as this will usually be a condition of the new mortgage, although the lender may cover this charge on your behalf.

The main two fees to consider are the lender arrangement fees and the early exit charge/early repayment charge. Many lenders will charge a percentage of the mortgage balance if you redeem the loan within a certain period of time. These rates will differ hugely and some specialist lenders will even go as high as 6%.

In recent times arrangement fees have risen dramatically and now average between 499 and 1.5% of the loan amount. You may add these costs to the new mortgage although this means that you will be paying interest on them for the full term of the loan.

The large increase in arrangement fees is due on the most part for the lenders need to make a profit. The competition in the marketplace has seen more competitive rates and attractive offers which has meant that the lenders profit margins are not as they once were.

Remortgaging Step By Step

1. Towards the end of your tie in period, approach your existing lender to find out what they can offer you. It is worth bearing in mind that this could mean less paperwork and ultimately lower costs.

2. Calculate and consider the fees and costs applied to move away from your existing lender (if applicable). If these are too high then you wish to stay where you are until the tie in period finishes.

3. Make sure that you shop around! Compare what your lender is offering to what is available elsewhere. Compare the APR as this will take into account associated fees and costs.

4. Select your favoured mortgage product. Start the ball rolling by making an application.

5. If you are using your own solicitors, contact them regarding the remortgage, some mortgage lenders will provide the services of their own solicitors.

6. Once the valuation is complete and all other relevant paperwork, subject to approval your lender will send you a formal mortgage offer. Sign the papers and the transaction will be near complete.

If you're looking for debt settlement, one great place to start is with your own finances. Getting your finances organized is a key step in getting yourself on the road to financial freedom. If you've never done something like this before, it will take some time to set up your system, but once you've got yourself organized, keeping track of your money will be much easier.

First, decide whether you want to track your finances electronically or on paper. There are advantages to each method, but in the long run, an electronic record of your transactions will probably be more versatile. Also, if you're married or otherwise in a relationship with another person, and you share finances, your system will have to work for two people.

If you decided to go the electronic route, there are several free programs you can use to help you keep track of your expenditures and your budget. Though the two are related, they're not the same. Your expenditures are your actual purchases and payments. Your budget is the plan you'll use to make spending decisions.

The free programs run the gamut from very basic checkbook registers, to complicated budget planning and expense tracking programs. You may also be able to import statement data from your bank, and export data from your finance program to other software tools. These tools do take longer to set up, so don't lose heart if this takes longer than you think it should. You can find a wide selection of these programs at Web sites like Tucows.

Make a list of your established electronic payments and the date(s) on which these payments are withdrawn from your bank account. Don't forget to include any periodic payments that may happen only once or twice each year.

Collect your bank statements from the last 6-12 months. You may want to enter some starting data to get your finance program rolling. If not, your statements are still good to have on hand, because they'll help you when you start planning your budget.

Have a calendar handy. You'll need to mark specific dates that bills and special payments are due, and you'll also need to mark paydays. This will help you keep track of your cash flow from paycheck to paycheck.

When you're ready to start, you'll need to track all of your expenses, the date they occur and what effect they have on your bank account. It may take a month or two to get into the habit of maintaining your own financial records. If you get into the habit of doing this regularly, you'll find that balancing your checkbook each month will be easier and you'll have better control of your finances.

First, a definition of wealth. I'm not talking about a wealth of friends, or interests, or experiences. Those kinds of wealth are wonderful, definitely. But right now, I'm talking about money - lots of money.

Exactly what "lots of money" means is subjective, but let's say that when your annual income becomes your monthly income, you're playing in the wealth ballgame.

Wealth building, for the most part, involves four financial aspects:

* Growing a cash machine

* Allocating assets

* Spending planning

* Managing/eliminating Debt

*Growing a Cash Machine*

This is the most important aspect of the wealth building foursome. In fact, it is the foundation for the other three areas, whose sequence depends on the nature of your particular cash machine.

Your cash machine is an incorporated business, which is ideally based on leverage of your existing skill set. For example, say you are an automobile mechanic. That's a service. How can you leverage your skills so that you have a business that makes money while you sleep? (The definition of a cash machine).

Here's a scenario: People buying used cars come to your shop for inspection before they buy, and you realize that many of the things you check during your inspection, the consumer could easily check for themselves. You teach a class at the community college and you package the hand-outs you've created for the class. Make them into an ebook, hire a marketer, and voila' you have a cash machine.

That's simplified, but you get the idea. Wealth builders are generally entrepreneurs. Think of something similar you could do with your skill set, and grow a cash machine.

*Allocating Assets*

With the income from your cash machine, plus all your other assets, create a comprehensive plan for your assets to work for you. You've heard the saying, "Stop working for money and get money working for you."

If you haven't already put a team together to grow your cash machine, with asset allocation a team becomes critical. You'll need advisors to set up an incorporated business for your tax strategy as well as asset protection. And, you'll want a financial advisor to help create your overall plan.

One of your most important assets to allocate is time. Millionaires "hire" time. Invest in building yourself a team of experts and support personnel. In addition to expert advisors, hire bookkeepers, housekeepers, assistants, etc.

*Spending Planning*

When the cash starts rolling in, a common mistake is to allow spending to keep pace with the increased income. This makes for a cushy lifestyle, but isn't part of a good wealth building plan.

When you create your spending plan, it should reflect your personal priorities. It doesn't need to be restrictive (like a budget). Think of it more like a framework for financial decision-making that serves your long-term interests at the same time providing resources for you to enjoy the present.

*Managing/Eliminating Debt*

Once you've got your cash machine going, turn your attention to arriving at zero consumer debt: credit cards, mortgage, etc.

However, not all debt is bad. Sometimes, you want to leverage someone else's money. Buying income real estate is an example of such a time. But for the most part, a focus on minimizing or eliminating debt is a sensible part of any wealth building plan.

The ultimate goal of wealth building is financial freedom - when your passive income supports your lifestyle, and you work because you choose to, rather than because you have to. Use the wealth building foursome to lay the foundation of your financial freedom.

Software that is designed to apply to take care of business expenditures, profits, employees and pay rolls along with a range of other bookkeeping tasks is known as accounting software. To handle different accounting functions, it consists of several modules. This software comes in different versions to meet the need of different needs of all types of businesses, large or small.

Accountant management, task that ultimately decides success and failure of a business, can be done either with the help of an accountant(s). Which one is better? From the growing popularity of accounting software, it is easy to say that the better one is investing in software. The most beneficial thing is to run the software knowledge on accounting is not required. Invest and install good quality software, it will take care of everything.

No matter, what type of business you has, large or small, you will find software for your business. Just choose the best one for your business.

If you are still in hesitation to install software in stead of employing an accountant, keep in mind the following points:

Accuracy

In modern day business, accuracy of financial data is the most important thing. Any types of documents that are made and reviewed by humans can never be error free. But documents that are made with the help of accounting software can be fully error free.

Compliance

Recently different laws are passed that put accounting and finance manager under tremendous pressure. So they have to find new ways to avoid the risk of non-compliance to avoid severe penalties. Accounting software with its analyzing facilities helps companies to cope with the newly enforced laws.

Staff productivity

Productivity of the staffs paves the way for the companies to development. To be productive, employees have to be free from administrative burden to focus more of their time and effort on the processes of revenue generation and business growth. Accounting software can help them by automating routine and repetitive manual tasks.

Increase Revenues

To increase revenues, companies have to improve financial planning, budget management, and strategic decision-making. To do these companies need 360 degree visibility into the organization's financial status and performance. Not human brains but accounting software can provide such analysis.

Apart from these the analysis and data that are made by using accounting software provides new opportunities to the companies. When a company knows better about its present situation, it becomes helpful for them to take decisions to grip the new opportunities.

To do these works is quite impossible for an accountant or accountants in the shortest possible of time. Accounting software can do these tasks not only in short span of time but also perfectly.

Bad date last night? Don't despair. It's not as bad as you may think. Here's some good news: you may not know it, but when it comes to your money, that bad date can teach you an awful lot about successful investing.

Think I'm joking? Think again. Although I was a far cry from being the King of Dating, I did have a few albeit rare lucky streaks in me. And looking back over those rare few times, my moderate success on the dating circuit did teach me quite a few things about prudent investing.

Here's a few quick examples...

1) DON'T JUDGE A BOOK BY ITS COVER

Dating: The guy was over a half-hour late, his outdated shirt barely matched his Taco Bell stained pants, the rain gave him a lethal dose of bed-head and back then the busboy was making more than he was. If that wasn't bad enough, his humor was a bit stale and the car he drove had a weird putter that attracted nothing but aliens from the evil Planet X. While at first the girl thought it was going to be a dinner date from fiery hell, little did she realize that guy was I, and I'd soon wind up being the one she'd marry.

Investing: The receptionist was sure nice, but the carpets were dull and the musty furniture reminded you of grandma's place in Brooklyn. You were ready to take your money to that Private Wealth Management Firm --- the one with the white marble staircase and baby grand --- but when the well-mannered financial advisor appeared, you figured you'd be courteous and give him a few minutes of time. A little into his pitch, you were most pleasantly surprised when he touted low cost, tax efficient investments that perfectly matched your goals. It was then you realized there's a reason the furniture in his place is a bit out-dated, mainly, because the guy isn't touting the high fee investments.

Lesson Learned: First impressions can easily get the best of us. Whether it's a date or your money, taking a step back to peek behind the curtain will typically put both your money and heart in a much better place.

2) COSTS COUNT

Dating: She liked Dylan Thomas, idolized Ginsberg, despised the conformists and was clinically depressed that she missed last year's Monterey Pop Music Festival. The perfect 10 from down in the Village strummed an acoustic, wrote poetry and even donated your favorite Levis to a homeless guy on the street. While at first lust got the best of you, months after helping her pay the rent, her organic meals and for all those Warhol movies you pretended to like, you were finally worn out, leading you to realize that when it comes to dating, costs most definitely do count.

Investing: The mutual fund was barely moving. Five years into it, you just couldn't quite figure out why you weren't making much money. Then, one fine day, you wisely took the time to research the fees you were paying, only to realize the fund was charging you way too much per year in annual costs and causing you all sorts of taxes.

Lesson Learned: When it comes to investing and dating, costs most definitely do count. Taking the time to evaluate how much you're paying for your dates and funds is an essential part of anyone's success.

3) IT DOESN'T HAVE TO BE COMPLICATED FOR IT TO BE EFFECTIVE

Dating: For many people, the best dates are the simple ones such as times spent on the couch during a cold winter night, wearing soft flannel pajamas under a fluffy blanket watching a classic Bogart movie with, of course, hot green tea and a hearty bag of Fritos nearby. While dining at Nobu certainly has its place in time, looking back on all the great dates we've had most likely reminds us it's the simple ones that scored the most.

Investing: When it comes to investing, many of the most successful investors I've helped are those with the simplest portfolios. On the other end of the spectrum are investors that spend every waking hour chasing returns, analyzing complicated charts, dissecting corporate balance sheets or scouring the market on a daily basis searching endlessly for a perfect buy.

Lesson Learned: There are roughly over ten thousand mutual funds in the country with approximately two professional fund managers each. Of those thousands of fund managers, guess how many have beat the static, mindless S&P 500 index more than ten years in a row? Answer...? .... Very few. Statistics prove that the S&P often, but certainly not always, out-performs many managed mutual fund managers each year, leading the sharp ones to realize that when it comes to efficient and successful investing, it rarely has to be complicated for it to be effective.

4) CUT THE LOSERS, RIDE THE WINNERS

Dating: The first handful of dates were the stuff legends are made of, but by the time mid terms rolled around, Crazy Mindy crashed my college roommate's car, emptied his bank account, shredded his classic Dark Side of the Moon poster, caused him to miss the Macro Econ final and managed to give him one very fat lip. By the time graduation took place, my roommate ended up blowing his entire senior year trying to turn Crazy Mindy into the person she once appeared to be.

Investing: On paper, the company looked like a true winner. Not only was the stock going through the roof but even Madonna used its products. At first the investment took off, but no thanks to a deadbeat CEO and a few federal regulations thrown in, the stock began its perpetual downward spiral. Convinced it would come back, you held on, only to wake up realizing you would have been far better off giving Crazy Mindy your money to invest.

Lesson Learned: Crazy Mindy could care less about my roommate and likewise, stocks could care less about you. They don't know who you are and only you can fall in love with them. Love or money, when something isn't working, get out. Just cut the losses, move on and live to fight another day. The quicker you do that, the better things typically turn out.

5) DON'T GIVE IT UP ON THE FIRST DATE

Dating: Dinner at The Palm was better than if your Mets won another Series. The guy made you laugh, he held the door and a shot of Grey Goose made him look like Brad Pitt. But back at your place, just as the room sweltered to high noon out on the Serengeti, your mother's voice politely whispered to you, "Not on the first date." Wisely, you pushed back and let something called "time" nurture the relationship.

Investing: The financial advisor seemed like a nice guy. He showed you attractive rates of return, sported a Tom Cruise smile and even served cappuccino in fancy bone china with lace doilies to match. So you transferred the entire 401k into an IRA, only to later realize it cost you a huge upfront commission on high fee investments that caused you nothing but losses to boot.

Lesson learned: Treat your money like you'd treat your body: Don't give it up on the first date. Taking time to nurture a relationship will not only make your mother proud, but it will certainly provide you with one of the most important keys to financial and dating success.

6) DIVERSIFICATION IS THE KEY TO SUCCESS

Dating: Adam looked like Alan, Alan acted like Arnold, Arnold smelled like Arnie and Arnie reminded you of Alex. And just when you thought you found the Perfect-A, Aden stood you up just like Albert and Abe once did (or was that Alfonse?). It was then, in one fleeting moment of revelation, you finally realized the problem had nothing to you, but everything to do with guys whose names start with the letter "A."

Investing: Dot-coms, late 90s. ... Financials, 2008 ... Need I say more?

Lesson Learned: Diversifying your investments is a critical key to investment success. Load up in one sector or stock and it's not a question of if disaster will strike, it's usually a question of when. Spread the risk, diversify your investments into the prudent, timeless fundamental asset classes and of far more importance, consider dating guys whose names start with the letter A.

CONCLUSION

Bad date? Who cares? Next time something doesn't turn out so well, simply shake hands with your date and thank them for making you a richer person.

After all, when it comes to love and money, hopefully here you've learned it's all very much the same.

Would you like to start your own home business but do not have the money for it? Well, you are part of a club with many members. You may think getting money for a business can be a monumental task. However, it does not have to be. If you anticipate and plan for as many expenses as possible you may want to consider using a credit card to finance your home business.

One of the easiest ways to get a loan for your home business is to apply for a credit card account. It may not be the answer you are looking for. However, credit cards are easy to receive if you have decent credit. Plus they are very flexible in using for spending purposes. Consider these three reasons for using a credit card for your home business.

The most important reason about having a credit card for your business is you get to keep your cash assets. Even though there is a risk of acquiring debt, you still get to keep your cash in the bank for a rainy day. I find this a very valuable benefit because you keep your family's money in tact and reserved for family needs. Your savings will continue for its original intentions (i.e. college money for kids, school clothes, etc.).

Another benefit is that Credit Cards have itemized statements of purchases. This is great for keeping track of money you spend on your business. The itemized statement provides proof that the Credit Card is being used for business expenses. Also, if you use the credit card for all of your purchases you can easily report expenses when tax season rolls around. Payments made that are shown on the statement is proof where your businesses money is going.

Finally, and this is my favorite reason, you have increased purchasing power with a credit card. You can use a major credit card to purchase items almost anywhere in the world. Having direct access to the funds is much more flexible than a loan. This also provides flexibility in time management because you can use the credit card to purchase items at your convenience if you have internet access.

The downside to this is that the credit card minimum payment will be an additional expense. Also, credit cards are a very easy way to acquire a lot debt for yourself if you are not careful. Always practice good and sensible spending practices. Once you start a home business it is very exciting time in your life and you may want to spend money on lots of things that you think you may need.

Always think of the basic needs of the business first. I tend to be very frugal with spending on a credit card then I do with cash. One way to curb spending by asking yourself, "Does my business really need this item right now?" Give yourself an honest answer and empower yourself to cut down on impulse buying.

Try to think out of the box when getting funding for your home business. A credit card to fund your business start up expenses may make things easier for you. Also, there are many offers for low interest credit cards for a specified time period. So, if you need a few thousand dollars in capital to start and sustain your business for a while then credit cards may be the answer to financing the start up costs your home business.

Many people fret the rising tide of interest rates. You'll hear things like, "Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. "

Stop! Nonsense, I say!

I bought my first home at close to 9%. Buyers from the 80's told me I was getting in at a bargain, and anyway, who cares? I don't. I refinanced long, long, long ago. 9% is just a part of history now.

So, here's 5 important points you need to keep in mind, when the ebb and flow of interest rates, ebbs up, more than it flows down...

1. There's no better time, then NOW!

2. Long Term Investing

3. Creative Financing

4. Uncreative Financing

5. Buying a Home when Rates go Down

1. There's no better time, then NOW!:

I know it sounds cliché, but it's true. There's no better time to buy, then now. Why?

a) Because if rates are going up, then the law of supply and demand insists that the rising price of homes will likely slow down.

b) Since appreciation slows down when rates go up, this is an opportunity to buy at a perceived discount

c) Remember, rates fluctuate, and nothings forever. So, it's more important to get your darned foot in the door, right now. You can always refinance later, as rates ebb and flow back down. You'll still have the benefit of having gotten into the house, at a lower, discounted price, and you can then enjoy both a low rate when you refinance, alongside knowing that you got the house when prices slowed down, maximizing the gain when appreciation revs back up again.

See what I mean? Don't wait. It only gets more expensive. There's always, no better time, then NOW!

2. Long Term Investing:

If this is your first home, then you have to think beyond the next year or so, and move your frame of reference into a longer futuristic point of view.

a) Are you going to live in the same house, for at least 5 years?

b) Most of us would answer yes, therefore, you need to be more concerned with real estate in the long term, let's say beyond 5 years, and you need to be less concerned with the short term rise and fall of rates. You'll drive yourself nuts otherwise.

c) 5 years is a pretty solid range of time, for rates to go both up, and down. In other words, history proves that for the most part, you'll live through the ebb and flow of rising and falling rates, as a homeowner, and you know what? You'll survive; in fact, you'll thrive, because you'll enjoy a net gain in appreciation over the long term.

So rates go up and down in the short term, but in the long term, real estate always appreciates, and that means that homeowners always win.

3. Creative Financing:

This is the good stuff. When rates go up, opportunities abound. You see, many homeowners, builders, and developers, find themselves in more negotiable positions because of the laws of supply and demand. Surplus rises, and buyers slow down.

a) If financing is an issue, then you may be able to negotiate with the owner to carry the note, and completely bypass more conventional lending institutions.

b) If affordability is an issue, then perhaps you'll find many more re-sales out there, perhaps fixer-uppers, ready to negotiate for a lower price (Can you say, built in equity?)

c) If discounts and incentives are your game, then perhaps you'll locate some developers anxious to move inventory, with a flare for adding a rebate, or doing you're landscaping, or building that retaining wall you wanted.

The key here (and this is very important), is to find an excellent real estate agent. I can't stress enough, how important it is to have someone on your side, who understands the lay of the land. Don't go at it alone. Just go find someone knowledgeable, who you can trust, and who is ready and willing to roll up their sleeves, and go to work for you.

4. Uncreative Financing:

As of the writing of this article, rates are still very, very low. Anything below 7%, for a fixed rate, in my opinion, is totally workable.

a) Between 1979 and 1990, fixed interest rates ranged from 11% to 16% on average. This is highly unusual historically, of course, but it is an excellent benchmark, when you evaluate how good, or bad, things are right now.

b) So as you're exploring your choices, don't lose sight of the big picture. Getting your foot in the door is more valuable, then being left out in the cold.

c) One other important point. For all those homeowners that purchased in the 80s, do you think they're terribly concerned now about the ebb and flow of rates? Do you think they kept their 11% fixed rate loan, or do you think they refinanced when it dropped down to 6% (or paid the house off by now). I'd venture a guess, that virtually all of them; have a nice, hefty, bulky, attractive pot of equity sitting on their front porch step today.

5. Buying a Home when Rates Go Down:

When rates go down, of course, it's obvious that getting a loan and buying a house is extremely attractive.

a) But when rates go down, there is a lack of homes on inventory.

b) Can you say, "Non-negotiable", or "bidding war", or "oops, sorry...Already sold!"

c) When rates go down, the seller is in the driver's seat, and the buyer is running around with checkbook in hand, yelling "Where do I sign?"

Keep that in mind. Which would you prefer? Personally, I dislike high rates, but I LOVE being in the drivers' seat. I guess in the end, you've just got to work with whatever environment exists today. Any way you look at it, you can't stop and wait until the cards stack up in your favor. You just have to dive in, and get started. If you like to be creative, if you like opportunities, and if you like to be in the drivers seat then rising rates shouldn't bother you in the slightest. Renting is more of a crime to your finances, in the long run.

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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Student loan debt can be a daunting thing to face when you first graduate from college. You have spent the past four to eight years or more concentrating on your future endeavors and now find yourself at the end of your academic road with a mountain of debt and looking for a job. There are a number of easy to eliminate student loan debt and this article with share the two main ones with you to help you find a light at the end of your student loan tunnel of debt.

Student loan debt is inescapable and can not be gotten rid of with bankruptcy or other financial tactics. The first thing you need to do to find a way to get rid of your student debt is to understand it. Many students go through their entire college career and never even open an envelope from their creditors. While, you were not receiving bills on your student loans while attending college, you should have been receiving monthly or quarterly statements about the current balance and state of your loan. You need to be familiar with the conditions of your loans and how they sit not that you are done with school.

Make a list of all your student loan creditors and include the following information: monthly due date, minimum payment due each month, interest rates, creditor contact information and the current balance of each loan. Reorder the list putting the highest balance at the top and star the highest interest rate. This will give you a clear picture on what you owe to whom and how much they are expecting to receive each month. Now with this approach it's is highly likely that with some dedication you can work to pay off the loans yourself in the matter of a few years depending on the level of debt you have.

To do this start paying off the largest loan first while still making the minimum payments to all the other loans. Once that loan is paid off roll over the amount you were paying to the next highest balance or interest rate and so on until everything is paid. It's vital to always pay at least the minimums on the other loans along the way to avoid default and negative financial action against you.

If this plan is too much for you, there are debt consolidation companies that specialize in student loan dent and can help you consolidation all your student debt into one loan leaving you with one payment and one interest rate and still satisfying the original loan companies.

Whichever method you choose to eliminate your student loan debt, it's important to take the time to understand the debt and make a serious plan on how to pay it off in a reasonable time period. This will help protect your future and your finances offering you more opportunity throughout your new life.

Joe's retirement plans were coming back into focus as the result of his newly found investments for his IRA. You may remember his IRA purchasing an interest in a local bar and grill as well as the discovery that his IRA's new banker's pinstripe suit fit very well. (For more background on Joe's IRA's investments see links to the articles below).

Joe's IRA, since being moved into a Self-Directed IRA, continued to grow. Dividends from the profits from the Bar and Grill as well as interest and fees from the loans made to friends and business associates continued to flow into the IRA. Joe and his wife Nancy began to see themselves enjoying the sunny beaches of New Smyrna. Joe and Nancy remembered driving through the warm and humid town a few years after their marriage and visiting a homemade ice cream store where they scraped together enough money to buy a coconut ice cream cone. The creamy smooth taste with real coconut and nuts was burned into their minds and even after twenty-five years, they still talked about it. Walking down the beach with the quickly melting cone was memorable as well. They both ran into the ocean afterwards to rinse off the stickydrips.

Joe and Nancy were in the midst of planning this year's spring break for their family. Joe called Nancy during a lunch break and said, "Let's go to New Smyrna beach! The kids have never seen it and we have all those frequent flier miles that we better use before the airlines all go under." Nancy agreed, and a few clicks of the mouse later Joe had arranged for the four of them to be winging away to Florida.

Upon arrival in Orlando, the family arranged their rental car and headed east to the beach. New Smyrna was everything Joe remembered, well he didn't remember the new construction taking place, but it wasn't that much.

After settling into their hotel, Joe, Nancy, and the kids walked up and down the beach and around town, Joe and Nancy reminisced, and the kids rolled their eyes. Joe's ears perked up one night as he overheard a couple at a neighboring table talking about real estate. They mentioned a local property whose owner had passed away. The elderly gentleman had not visited the property in some time and it was going to need some fix-up. Joe leaned over and casually asked where the property was. Surprised but friendly, the couple gave Joe the address and directions to the home.

On the way over, Nancy said, "This is fun to look at, but you realize that we can't afford any real estate, don't you Joe?"

Joe looked at her and smiled. "It's not for us...it's for the Self-Directed IRA!"

Driving up to the house they were a little shocked. The paint was faded and chipped, the yard was a disaster. Joe was disappointed, until he walked around and realized the home had a view of the ocean from the back deck, and likely from the upper windows as well.
The next morning Joe sat in front of his laptop searching real estate records. After a few hours and a number of calls, he tracked down the owner. She was in upstate Pennsylvania and was the 52 year old daughter of the former owner. Joe had looked at the property a little closer and determined that it was probably worth around $150,000 but needed some immediate fix-up in order to be a rental.

After another day, Joe's IRA became a home owner, a rental home owner that is. Joe managed to get the owner's number and told her that he represented a buyer who was willing to pay her an immediate $30,000 and to provide her a note for the remaining $110,000 of the purchase price. To Joyce, the owner, the offer was nothing short of a miracle. Joyce had no time or money to deal with her unexpected ownership of the property and she immediately agreed. However, she really needed a larger payment. She asked for $40,000 now and that the note be paid off in just 24 months. Joe agreed that his IRA would make the purchase.

Joe's IRA didn't have quite that much in cash, but Joe remembered that he hadn't made his annual contribution yet. He quickly sent off a check to Entrust for his contribution, as he wanted to make sure the cash was available for closing in a few weeks. Joe called a local real estate broker to write up the contract. He also checked in with his Entrust office where he received knowledgeable assistance with the titling and the purchase process. The broker also talked to the Entrust office to get some detailed questions resolved and to figure out how he could tell his other clients about Self-Directed IRAs.

Joe then arranged for a note and mortgage to be drawn up and sent to Joyce along with the contract draft. She approved the documents, so Joe directed his Entrust Self-Directed IRA administrator to sign the documents. A local title company handled the closing. Joe's IRA paid the $40,000 in cash and borrowed the remainder from Joyce through owner financing. Joe's IRA, NOT Joe, was the borrower, and Joe realized that his IRA must make the loan payments. Joe knew however, that a couple of the outstanding loans owned by his IRA would be maturing soon and should be able to easily make the payment plus pay for the repairs that he was arranging through a local contractor.

Months later, Joe's IRA was enjoying rental revenue above what Joe had expected. The total repair cost was less than anticipated, mostly being cosmetic. The broker, who also took over management of the property, sent Joe a note mentioning that the property was likely worth at least $135,000 after the repairs. Joe's Entrust office also mentioned that as his IRA was earning what could be Debt Financed Income there could be a tax due for Joe's IRA on that portion of the income. Something called UBIT. Joe made a note to look into how it worked.