Finance Roll

Most people associate credit scores with their personal financial situation. Well, businesses also are assigned credit ratings, scores that can be the difference between getting a loan or not. In this article, we take a look at what is involved in building a high credit score for a business.

First of all, you must know that you can begin to build the credit worthiness of your business even before you serve your first customer. To do that, you will first have to register the company. Many people make the mistake of running a business under their personal name. You will have to keep your personal finances and business finances separate if you want to obtain credit for your business.

Your best bet would be to register your company as a LLC or S Corporation. The next step in the process will be to try to get an investment in your business. You can try to achieve this by coming up with a good business plan. Write a detailed business plan that will include your projected financial statements. Show this to potential lenders to attract an investment. When a lender with good financial history is able to back your business with an investment, it will do wonders for the credit worthiness of your business. You can approach vendors with confidence and tell them that you have the backing of a strong investor or a financial institution. Once a vendor is able to see that you are financially sound, they will offer you a line of credit with which you can begin making purchases of your business.

A line of credit from the vendors for your business is another great way to get your business credit history rolling. You will have to pay the vendors regularly. Also, make sure that you are dealing with vendors who will report the transactions to the credit bureau. Typically, large vendors will serve that purpose well as they will report all transactions automatically.

Other ways to build business credit history is by obtaining a business credit card. You have to be a little careful here as there are many high interest business credit cards on offer. Avoid those and pick one with a reasonable interest rate. You should try to opt for only one or two business cards as too many will negatively affect the credit score of your business. You can also try to build credit history by obtaining a loan from the government run Small Business Administration.

Once you have a credit history rolling for your business, check it once a year to check for inconsistencies or areas on which you can improve and better your credit score. Most people and businesses don't consider their credit score till they need to borrow money. If you have a problem with the score, it is then too late to fix it and obtain the funding. Stay on top of yours to avoid problems.

Let's go back to our science classes at school for the moment. Remember, how a plant and then a tree comes to existence? It is the seed which is the beginning of all. You plant a seed and nourish it with water and watch it grow over a period of time. Likewise, seed capital is the initial fund that you infuse in your business. It is the startup finances that you (or along with your team) provide to your business that will help it start.

Starting vs. Running a Business

Seed capital is used to start a business and further investments are made to run the same. The funding in case of starting a business is quite small and can be up to $10,000 for a small business. We are not talking of heavy machinery/equipment based manufacturing industries, though. This $10,000 can be collected by you and your group with the help of parents and other donations that may come to you.

What do you do, when you have started a business? Look for other sources of finance, of course! Without money no business can run (read: funding) - be it then an external or internal source. Once your firm starts to run and money rolling is in place, you might not have to seek other sources of funding.

Angel Investment after the Seed Capital

Just oodles of passion and creativity won't actually help much if you can't implement your ideas in the business. Therefore what you require are funds; what your business needs is money! To see your business grow into a fruit bearing tree, you need to provide it with adequate nourishment and that will come from an angel investor. You should know that the initial seed capital is not enough to make the business stand up on its own - you need a stronger foundation and that will come from the angels.

Another important thing - if your project/business has the potential of making it big on the stage, there are high chances that angel investors will be interested in you. Otherwise, there are thousands of such innovators and creative people just like you, waiting for talking to angel investors. Therefore, you need to have your head completely with your business at all times - you have to convince your investors, why should they invest in your business!

It may be the case that angel investors at some point of time were a startup like you and now they have diversified interests (along with their first startup idea). In such cases, getting funds from them could be a tad easier because they might have gone through the same rigors of finding funds to run their venture.

Remember one thing; since your venture hasn't started making profits, there is a great deal of risk involved for the investor. No one will invest his/her money into a venture that shows no promise. Therefore you have to do your homework before hand and convince your funders that this is the best investment, they'd have ever made!

Figures from the latest Federal Reserve's Survey of Consumer Finances, one of the most comprehensive assessments of what Americans own and owe, shows the average debt in American households with at least one credit card is growing.

The survey is updated every three years. Although most Americans seem to be avoiding the credit card trap, there are still plenty of people on the financial edge:

-More than a third -- 36% -- of those who owe more than $10,000 on their cards have household incomes under $50,000.
-13% who owe that much have household incomes under $30,000.
-The percentage of disposable income used to pay debts is still near record highs.
-The median value of total outstanding debt owed by households rose 33.9% between 2001 and 2004.

All of that is enough evidence to suggest that a large number of people are overdosing on debt. So, what can consumers with rising debt do? There are three main strategies: debt consolidation, debt counseling and debt settlement.

Debt Consolidation

Debt consolidation is typically the most desired debt solution. Not only does consolidation get finances back on track to pay down and eventually pay off debts in full without any harm being done to credit history, it very often frees up more discretionary income.

The most preferred method of consolidation is a mortgage refinance. With this, a new primary home loan is taken against the property to "roll in" other debts such as car payments, credit card payments, and so on. As many and as much of these other debts can be rolled in as long as the added principal does not violate the stipulations of the new mortgage loan program. These debts get instantly paid off in full by the new mortgage at the time of closing.

Often times, even though a higher mortgage payment may come with the new loan, monthly debt payments overall are lower and so more money is leftover every month to continue paying down any remaining debt.

Credit ratings get a boost as well by the paying off of those other debts. Debt consolidation also simplifies finances by combining multiple debts into one monthly payment.

Debt Counseling

Debt counseling, which sometimes gets called "debt management", is a second option for regaining control of debts. With counseling, the consumer starts making just one monthly payment on debts to the debt counseling company. Debts aren't consolidated, because the counseling company just takes the payment and then makes the payments to the creditors.

It becomes easier to get a handle on debt since the consumer is held to a strict schedule of payments. This option, however, can have serious negative consequences on credit history. In some cases, it can actually do more harm than good.

Debt Settlement

With debt settlement, the borrower attempts to reduce the total amount of money owed on debts. This is also called debt negotiation or debt arbitration.

Used as a last resort by a consumer who hasn't paid their bills on time and has already destroyed their credit, debt settlement is used to reduce the total amount of "charge offs", or written-off debts that the creditor has written off. The idea being to have some money collected rather than none at all. Pursuing a debtor legally to payback debts can be very expensive and time consuming for lenders.

Lenders' debt settlement departments negotiate to agree upon a new payment and an ultimately lower payoff amount. Typically settlements range anywhere from 25% to 65% of the original balance. Debt settlement will also have serious negative consequences on credit history.

As lending criteria continues to tighten, obtaining financing for your real estate deals is becoming an ever- growing challenge. Add to that less than stellar credit and it can seem almost impossible. Savvy investors, however, know how to buy real estate with 20% or less down even if their credit is completely tanked.

The first thing that you need to realize is that traditional institutional lending is probably completely out of the question. That's OK. In fact, I regularly advise my clients to look for alternative methods for financing deals that offer the speed, efficiency, and terms needed to be successful.

The second thing to realize is that if it isn't a profitable deal don't do it regardless of the financing. I have seen many investors buy a deal because they can rather than because it is truly a profitable deal. Take a moment to analyze the deal and make sure the numbers truly make sense.

Let's begin the discussion with the types of financing that can be created right when negotiating the deal. Before you even make a purchase price offer to the seller, ascertain the right price to pay [I call this the Maximum Profitable Offer or MPO]. Compare this number their current loan(s) payoff on the property to determine their equity position. If it appears that they will get a substantial amount at closing in cash, you should immediately think about possible seller financing.

Start by asking in a conversational style what plans they have for the cash they'll receive at closing. Often they'll have a litany of bills that they want to pay off that total some small amount of the total available equity. Then ask what their plans are for the balance. Many sellers have no other plans and will simply place the money in a savings account or CD. This is your opportunity to set up some financing.

Let them know that you buy houses many different ways. The most costly method is all cash; however you want to be able to get them the most for their property which is what they want to, right? [Be sure to ask that question] Continue by saying something like:

"Would this work for you? How about if I provide you with $XX down at closing (the amount needed to pay their list of bills) and the balance in one lump sum 1 year from closing? That way I'll be able to offer you the highest price for your home. Will that work?"

You'll discover many sellers willing you accept, and when they do, you have already financed a portion of the purchase. Now let's take care of the rest of the financing.

One of my favorite strategies is buying home subject to the existing mortgage. With this strategy title to the property is transferred to you the buyer, but the loan stays in the original borrower's name. Using subject to financing you take over the existing financing without having to obtain a new loan.

You're probably thinking: "Would anyone in their right mind accept this offer?" The answer is ABSOLUTELY! Remember that many of the sellers with whom you are dealing are extremely motivated to move on with their lives. This strategy allows them to get out from under the mortgage payments and to start over.

There are some disclosures that need to be made to the seller and you need to fully understand how to execute this strategy before attempting on your own, but it is rather simple. Just be sure to be trained by some one reputable first.

Finally, the absolute best way to finance properties is with private lenders. These are every day individuals who have their money in low yield investments who are willing to make real estate loans in exchange for the much higher interest rate with security.

These lenders do not advertise since they don't even know about real estate loans. It is your discussion with them that demonstrates the opportunity available to them. The best way to find private lenders is to talk about it with everyone you meet. The best source of funds is in IRAs. Most people who have an IRA do not realize that the IRS provides them the opportunity to self-direct their funds...in other words, they are able to make real estate loans as long as they have a self-directed IRA which can easily be set up by rolling over their current IRA to a company that provides self-directed IRAs like Equity Trust out of Ohio.

Instead of earning 1-2% on their IRA, they'll be earning 6-8% with your real estate. Isn't an 8% simple interest loan with no bank qualifying and quick close a huge asset to you? Build up your private lender portfolio and you'll be able to purchase more real estate than you ever thought possible.

Use all of these techniques together and create even more leverage. You'll be able to buy real estate with nothing down, regardless of your credit, and you'll even be able to finance your project costs. Don't allow institutional lenders to dictate your purchase ability.

Expect abundance,

Lou Castillo

Picture your Dream Home. Does it have a hot tub? A screening room? A subterranean garage for your collection of vintage roadsters? Everyone knows what their dream home looks like. So why do so few people actually build it? The truth is that building the home of your dreams often costs less than buying a house on the market. All it takes is good plans, an experienced contractor, and the right financing. Today, that means a construction loan.

In the past, the federal prime rate was so high that it made construction loans very expensive. People didn't want to pay large sums to borrow funds, so they would finance their home construction with a line of credit on an existing home or by spending their cash reserves. Problems often would occur if the funds ran out or if the project went over budget.

With lower rates now available, more and more people are turning to construction loans. Not only are they economical, they also provide built-in protection for your project to ensure it is completed on time and on budget.

Even with dropping home values, home construction nearly always costs less than purchasing a home on the market. This includes buying a lot or a "tear down" and building from the ground up, as well as adding improvements to your own home or a property purchased out of foreclosure. Borrowing money for these types of projects is better than draining your own funds because, as all good real estate investors know, using leverage increases the return on your investment and allows you to invest your money elsewhere. With a construction loan, borrowers only need to invest a minimum amount of funds into the project (generally 5-20% of total project cost) and can finance the rest. Simply put, using debt to finance the building makes your home an even greater investment.

They also offer safeguards that help keep your project on time and under budget. First, the bank issuing the loan works hard to ensure you are working with a reputable builder. Most banks require that the construction loan request include a contractor package that needs to be approved. If your builder has bad credit problems, past lawsuits or has received complaints to the licensing board, the bank will generally catch this information and reject your builder. Second, the bank issuing your loan watches the construction process from start to finish. Unlike loans that are issued as a lump sum, with a construction loan the bank requires that your approved contractor submit for draws to get reimbursed as each phase of work is completed. The bank even schedules site visits to ensure that the work is done in a satisfactory manner and on time. The bank is offering to do due diligence on your builder and project.

Upon completion of the construction phase, some loans seamlessly rolls to permanent mortgage which is why they are known as a "one time close". What will you have achieved by building your own home? Even more than the satisfaction of living in your dream home, the result and impact on your balance sheet can be dramatic. Upon completion, you will own a home valued at the full market price of a new home for the cost of the land purchase and construction, often as much as 25-30% less than the retail market value.

Young as you are, preparing for retirement should be in your agenda the moment you get a job. If your company is not contributing towards your retirement, get a realistic plan. Review your finances and get going. The thought that you have your retirement in the works gives you confidence to face the future.

What is a Retirement Plan?

A retirement plan is a setup that provides people income or a pension after years of hard work or retirement security. In the UK, this plan is called a pension scheme and in Australia, a superannuation plan. There are different arrangements for a retirement plan to suit your financial circumstance. Younger job entrants can enjoy a low flat rate, while older workers may pay a higher rate.

You enjoy tax benefits if you're paying for your monthly contributions to your pension plan. If your employer is contributing towards your plan, he can avail of tax breaks. The US government requires a permanent retirement plan to prevent the abuse of tax benefits and the moment payments are not continued, the government will disqualify the plan. Your or your employer will have tax problems later.

It may seem that retirement is a long way off especially, if you're in your twenties. Your interests may range from going out with friends, collecting Colibri lighters, NFL banners, shopping for trendy clothes, and buying a car. A retirement plan seems out of place in your scheme of things.

But eventually, that day of reckoning will come and you'll be left out in the cold, wondering how to survive on nothing. A retirement plan will eliminate those worries and you can enjoy your investment - have vacations and fun - which you rightfully deserve.

On the day you retire, a pension check will arrive at your doorstep every month. The higher the premium you've paid, the higher your monthly pension. If you're getting a plan project into future possibilities - prices of commodities may increase - and your monthly pension may not be enough to cover all your needs.

Types of Pension Plans

Ask your employer about retirement contributions. You might be told that a fixed amount is deducted from your pay each month. This is the Individual Retirement Account or IRA-based plan.

Your employer may or may not contribute towards the fund. Whatever the case, always follow your retirement payments and keep records of all the deductions towards the plan. In case you get another job, you can always follow through with the payment.

The 401(k) plan requires the company to match their employees' contributions and these contributions are not subjected to federal and state income taxes. The moment the fund is withdrawn, the taxes come rolling in. It's like saving money in a pre-tax basis.

If your employer uses the 401(K) Plan, you'll be given the choice where to invest your contributions and how much you will contribute. The Keough Plan is the option for those self-employed. The qualified and profit-sharing plans are the type of plans those working in the private sector can avail.

Thinking Ahead

So you say you're still in your 20s and retirement is a long way off. That's right. But wise young people see the benefits of having a retirement plan. Everybody wants to retire at 40 and enjoy life while they are still able. The 20s is the best time to plan ahead.

Rental Income Might Not Be What the Owner is Representing?

Estoppel agreements insure you that the rental income being presented will be delivered. Suppose you're a prospective multifamily apartment buyer, and you purchase your first apartment building. The good news is that the apartments still have tenants. According to the lease summaries and rent rolls provided by the sellers, the tenants pay a combined $50,000 per month.

Now the bad news. You first month rolls around and the all of a sudden your income is now a combined $25,000 per month! What happen?

Okay, so what did the you do wrong? You and the commercial lender should have obtained an what is known as an estoppel agreement from all the tenants before making the loan.

What the heck does estoppel mean? Estoppel is a a rule of evidence whereby a person is barred from denying the truth of a fact that has already been settled. An Estoppel agreement is a form given to the actual renter of the unit and filled out with the respective rent being paid.

Estoppel agreements are used in various commercial properties where you would have people or companies renting space from from a landlord. It insures that the rental income records being produced by the seller are accurate and up to date. Some lenders will require this to be done as a condition of granting a loan on the property. Regardless of any paperwork or promises made by the seller of a property, a Estoppel agreement should always be fully executed and verified against any and all income statements.

Payroll funding is an under used UK cash flow finance solution for businesses. Whereas factoring and invoice discounting are generally much better known methods of raising working capital, an unsecured payroll loan is a business finance option that offers an alternative to the traditional sale and discounting of invoiced trade debts route.

Financing a salary or wage bill is provided by specialist lenders but as any loan is completely unsecured these schemes are only available to companies with a profitable trading history. Lenders can make fast decisions on whether they can offer a facility that offers up to 60 days rolling credit on payrolls. Where a proposal meets a positive lender response a payroll funding facility can be set up in as little as 10 working days.

The charging model is the same as for debtor finance in that there is a set-up fee, a monthly facility fee and an interest charge on any outstanding balance. Other characteristics of payroll funding facilities are that it is simple and easy to set-up and operate, that can be turned on or off (i.e. is open-ended) on expiry of the initial minimum term. Additionally, a full payroll service can be utilised by those businesses that would prefer that option.

As payroll finance is an unsecured business loan no extra security is required, with no directors guarantees required and is completely confidential. Any other lending arrangements or commitments a company may have are not affected by employing this way of  raising working capital.

Any company that has been trading for 2 years that has filed accounts and meets the minimum criteria in terms of turnover and number of employees can qualify for a payroll loan. This specialist lending option can prove to be a smarter method of funding for many companies, payroll funding no longer a secret but a very useful addition in the commercial finance arena!

WHY OFFER SOFTWARE LEASING & FINANCING

Increase your sales

Shorten your sales cycle

Increase your margins

Increase revenue recognition

Receive payment faster

Make your sales people more effective

Eliminate capital budget delays

Overcome cost objections

Build repeat business

Key Equipment Finance offers innovative and strategic vendor leasing programs for businesses. Our vendor leasing programs will give you the ability to now offer your customers the equipment leasing option for your product.

Vendor Lease Program:

Custom Lease Structure: Our leasing professionals will work closely with your staff to design a program that will provide the leasing alternative for your products.

Sales Training: We offer a lease orientation program for your sales team to show the competitive advantage of leasing vs. purchase.

Lease Rates: Lease rates are continuously updated and will be distributed to your sales team quarterly via e-mail.

Lease Quotation Preparation:We will prepare lease quotations within 24 hours. We will also assist your sales team to provide quotes directly.

Credit Review: Credit reviews are completed within 2 - 4 hours. Leases are non-recourse to you, unless otherwise agreed by you in advance.

Documentation: We prepare, and execute all lease documents. The Master Lease is executed once, and any additional needs simply require a one page Lease Schedule.

Invoice Payment: Invoices are paid within 1 business days of receipt of notice of equipment delivery and acceptance.

Process:

Issue Lease Quote: A lease quote is issued in accordance with the sales quotation.
Submit Credit Application: The customer completes and returns the lease application and financial information for credit review. Key Equipment Finance renders a credit decision within 2 - 4 hours of receipt
Prepare, Forward and Recover Documents: Upon credit approval, lease documents are prepared and forwarded to the customer for signature.

Issue Purchase Offer: Upon receipt of properly executed

documents,Key Equipment Finance issues its purchase order for the products and services to be leased.

Invoice Payment: Upon advice of installation and acceptance, invoices are processed for payment within 1 days of receipt.

Vendors understand the importance of a total solutions sale that includes financing for building repeat equipment sales.

End-users realize many benefits from leasing their equipment but manufacturers and vendors benefit too.

Total Solution Sale

Being able to offer your customer a total solution your equipment and a way to acquire it means you have greater control of the sale. No delays while your customer is trying to arrange financing. Reduce chance your customer will look for alternate equipment solutions.

Easy Upgrades During the Lease; Ideal Position for the Next Sale

When you control your customers financing, you can build-in options for technology upgrades or add-on during the lease and, most importantly, you have a built-in advantage for rolling-over financing of your next generation equipment to your customer.

Larger Ticket Sales

Selling a monthly payment amount that can be designed to fit your customers budget helps you sell additional features that your customer might need, which makes your sale larger.

Your Paid up Front

No accounts receivable problems. You get a check for 100% as soon as the equipment is installed, and installation is verified by your customer.

Makes Closing Simpler

"You can lease this equipment with an option to own. Its 100% financing; 100% deductible with the option to own - at $xx per month over 36 months, or $xx per month over 48 months Which plan is best for your budget?

Helps Close the Sale Now

Leasing gives you the ability to show your customers how to get the equipment they need, when they need it allows you to work within their budget cycles.

Competition

Your competition offers lease finance solutions. So can you.

RJ Grimshaw is director of sales, vice president of Key Equipment Finance's Information Technology Group. Key Equipment Finance (www.KEFonline.com) is one of the nation's largest bank-affiliated equipment leasing companies. Grimshaw has more than 10 years of leasing industry experience. He can be reached for questions at 713.354.4545.

RJ Grimshaw is director of sales, vice president of Key Equipment Finance's Information Technology Group. Key Equipment Finance (http://www.KEFonline.com) is one of the nation's largest bank-affiliated equipment leasing companies. Grimshaw has more than 10 years of leasing industry experience. He can be reached for questions at 713.354.4545.

I was just leaving the school, when I saw it. It was red, and fast, and I knew I had to have that car. There was only one problem, I was a broke teenager. Undaunted, I set out to make some money. In the back section of "Jugs" I saw my opportunity to cash in! All I had to do was stuff envelopes and I could make thousands from home. Eager to make my fortune, I sent in my $8.00 for the information package. When it arrived, I was ready to get started! All I had to do then was send in $40.00 for my supplies and mailing list, and watch the money roll in. I received my package a few weeks later. My supplies were: A list of 1000 names and addresses, and a cheap looking sales letter about how to make money stuffing envelopes! I was supposed to copy the letter 1000 times, cost= $50.00, buy 1000 envelopes, cost= $30.00, get postage, cost= $300.00 - luckily, the mailing list was printed on labels, I still have them around somewhere. I couldn't shell out $400.00 more on a plan that was immoral at best. So, I kept riding my bike to work, until I saved enough to buy a lemon. That year I learned two things, you can't always believe what you read, and no one is going to give you money for nothing. Only slightly dispirited, I still had my dreams of buying a really cool car, or buying a house someday.

When faced with these realities, one must take action, lay out a path. All too often, consumers take the path to financial ruin, sacrificing the future for immediate satisfaction. High unsecured debt, such as credit card debt and personal loans are a huge drain on your future success. Financing a brand new auto may feel great right now, but you just lost $10,000.00 when you pulled out of the lot. Do you need to spend $200.00 a month on a cell phone, or $50.00 a month on fancy coffee, or $150.00 a month on cigarettes or beer? We all have our weaknesses, things we can't do without, but let's look at the big picture. Pretending you are a low paid 19 year old, working at a box factory like I was, you manage to save one dollar bill each day, plus .78 cents in the jar. Even if you save it in the bank at 4% interest you will have over 14,600.00 at age 35. You are not rich, but you have enough for a down payment on a nice house. What if you were a saint and managed to save only 8% of your $6.95 an hour. If you never got a raise, you would have $26,050.50. by 35. Still not rich, hopefully you will get raises! Even still, if you did only this until age 68 - more than 175,000.00. would be in your bank account. Even those of moderate means can amass considerable amounts of wealth. Let's say you make 35,000 from age 25 to 55, and save 6.85% of it at 4%. Before age 55 you have around 140,000.00. In your low tax bracket you would keep it all.

These examples are fun to play with, lets take the same 19 year old, he finances a car he likes for 5 years at 8%. The car's price was 12,500.00. He pays $250.00 a month for five years, at the end of five years, he is $15,200 poorer, and it is time to buy another car. Bank the same amount over 5 years at 4% - 16,875 in your pocket, then you can buy the car in cash, invest the difference at 4%, and after 5 more years you are over $40,000.00 ahead of the guy who financed his cars. Obviously, these are just examples, but it proves the power of taking action in life. You can add to your future success, or detract from it. By holding off on immediate gratification, we can leverage small amounts of money into huge fortunes. Simple steps in budgeting and saving can lead to the life we want in the future.

One last example. Start at age 21 earning 20,000 a year. 5% raises each year, savings rate 7.5% @ 4% annual return, compounded monthly until retirement; age 66. The math gets tough here, but you will have well over 1,000,000.00, saving less than ten percent of your income. If you could master the discipline, becoming successful is only a matter of time and numbers. The good part is you get decide what numbers you want to input into the equation. The sooner you can start saving, the better. Higher returns on investment (ROI) are always good to seek out. 4% is a very low number, with a properly balanced portfolio, yields over 6% should be easily attainable, with little risk.

For those with an entrepreneurial spirit, vast amounts of money can be made through business ventures. Ordinary people like you and me have found a way to get the life they want. Get rich quick schemes aside, the internet provides the quickest way to reach an enormous customer base and generate multiple streams of income, perhaps creating a millionaire in the process. The only limits are your imagination, and your willingness to take decisive action. All people whom have generated massive fortunes, have one thing in common, they all took powerful action towards their goals. For more tools related to your financial success, be sure to visit http://www.mycreditbusiness.com.

Imagine that one day you open your wallet, gasp and think where did my money go? Now the questions really start rolling and you ask yourself when did all these credit cards get in there? Your head starts to spin as the reality sinks in. How much debt am I in? Can I afford to eat or feed my family? What happens if I lose my job? Do I have any savings for retirement? Then, suddenly you go blank, you start to feel anxious and the sleepless nights begin. You have financialitis.

Denial has served you well up to this point. Now you are able to see it for what it is - the truth. However, this did not occur overnight but was growing over a period of time. Now, take a good look at your wallet. It is floppy and gasping for air each time it is opened and closed, it is probably thinner in the cash section and has aged tremendously. The edges are frayed and worn and there may be nicks or scratches noted. The pockets may be lax or stretched from overuse or bursting with too many plastic cards and paper receipts. All of these reflect poor habits and are some of the telltale signs of financialitis, which is a pervasive, invasive and often destructive dis-ease of your personal finances.

How Did This Happen?

Perhaps, like most people, you have been listening to the news or one of those favorite financial channels telling tall tales about how the economy is recovering, how the unemployment rates are improving, or worst yet blaming some political party for all the problems. You went on with life as if it would not affect you personally but now see that it has in a big way. By not being honest, the media provides everyone with a false sense of security that everything will get better. But, it is not going to happen. In fact, it will probably get much worse which is what you are now finding out.

As previously written, financialitis can occur quite suddenly with a natural or catastrophic event, but most often it is due to long standing abuse, negligence or apathy regarding financial health. For example, most Americans during the 1980's experienced a time of growth and increased spending. As a society, we became much more materialistic as depicted by a popular Madonna song, "Material Girl". A whole generation grew up thinking that money was no object and spending can occur without any repercussion. Just charge it.

During this same time, we were brainwashed on the idea of saving for retirement in mutual funds and saw the explosion of an entirely new market for Wall Street and the financial world. Most people just handed over their money without really understanding all the ramifications of having other "experts" manage their money. The thinking was if the money was taken right from our paychecks, we would not miss it. The problem is we lost control of what happens to it and took no responsibility as to where the money was invested. It was a "too hard to learn, let someone else do it" mentality.

Adding Insult to Injury

Then in the 1990s and early 2000s, we saw the boom on real estate. The housing rush was everywhere and people went crazy for real estate with some areas affected more than others. New housing developments were going up in many parts of the country. Creative financing was started allowing more buyers than ever purchase homes, many above their means. But, everyone was happy - the financial firms, the banks, the builders, and of course the home buyers.

When the bubble broke and the financial bloodshed began, that is when everyone asked the question "how did this happen?" No one took responsibility. Not the financial market, not the banks, not the government regulators and not the general public. Everyone was guilty. Apathy, greed, money, and power all contributed to this current state and created widespread financialitis starting at the top and crashing onto the bottom.

When the stock market had its mini-crash in 2008, everyone lost. Well, not everyone... Seems the major banking firms received an enormous amount of money from the government which was to be used to stimulate confidence in the market and provide loans to the public. However, there was one big problem - they did not use it for what it was intended. There were no restrictions placed on how the money was to be used and these institutions were free to do whatever they wanted. Some were brazen enough to use this money to provide huge bonuses to employees, one planned a large party-atmosphere conference which was cancelled after public outrage, and the rest clamped down on mortgages and loans further adding to the real estate collapse already in progress. Government bailed out the banking industry with our tax money and we did not see a dime, but they received millions.

Why do I Have to Suffer?

What we are seeing now is the trickle-down effect of a complex, multi-layered nightmare devoid of any sense of responsibility or accountability on the parts of all the participants. Rising unemployment, increase cost in utilities and commodities, elimination of services, municipalities and states going bankrupt, and so on. In hopes to continue the charade and prevent massive public outrage, the Federal Reserve is printing paper money with dropping value in hopes to fool the world that all is well. They are fooling some, but not all. Those who are getting educated are seeing this for exactly what it is: a set up for the next big crash. What you must realize is someone has to pay the price.

The best thing people can do right now to lessen or eliminate the painful experiences of financialitis is to take responsibility and become educated. Do an in-depth analysis of what your expenses are, evaluate what you can afford and make responsible choices in how you spend and save your money. Be honest with yourself to determine how you arrived at your current financial state, learn how to eliminate your debt, and obtain knowledge on creating wealth. There is hope but you have to take action now and have unwavering conviction in resolving the problem. Commitment, responsibility and wealth education are the keys to success in overcoming financialitis.

I have just finished reading "Your Money or Your Life" by Joe Dominguez and Vicki Robin. The main idea of the book is to change your way of thinking about money in order to find more fulfillment in your life. Take the example blowing 50 pounds at the casino. After reading the book you should not only think about the 50 pounds you have wasted but also think about the 10-15 hours you have worked to make that 50 pounds in the first place. Time and Money down the drain.

The part of the book I found most inspiring though was the notion of finding your "Crossover Point". The Crossover Point is basically the month when your income from investments (or I assume Passive income streams) is enough to cover your expenses.

By following the rules of the book you will start a wall chart which shows your monthly total income, your monthly outgoings and your monthly investment income. Now as the months progress your monthly outgoings will initially drop (as you become more frugal) and then level out as the number of savings opportunities fall. Your monthly investment income however will continue to increase as compound interest kicks in. By extrapolating the two lines acrss the wall chart, you will eventually reach the stage where the investment income line passes through the expenditure line. That point is the Crossover point and is described in the book as "the pot of gold at the end of the wall chart". This concept of building residual income whilst lowering costs is the mainstay of all good financial titles. The ethos is also echoed in another book I am currently re-reading, "The Four Hour Work Week" by Timothy Ferriss.

Please take a second to work out how far off your Crossover Point is. You may find that it is decades (or even centuries) off. if this is the case then now is the best time to start the two pronged attack. Slash your expenses and start putting 10% into investments, or else your Crossover Point may also coincide with your last breath!

Online entrepreneurship seems so divorced from the real world at times that we sometimes forget basic tenants of good business practice. By using the same rules that would fit any traditional business, the odds of success are greatly increased. Here are some general rules of business that carry over into the online world:

• Keep overhead low: Overhead for online may not be as steep as a the warehouse or heavy machinery you might find in the “real world,” but content and hosting dig into your bottom line, whether you realize it or not. Shop around and keep the prices as low as possible – never dismiss the costs. This goes hand in hand with the next suggestion…

• Keep good records: Good records help you assess strengths and weaknesses quickly. Calculating earnings and Return on Investment (ROI) is necessary to take your business to the next level.

• Find and keep good staff: If you decide to increase your exposure, both in terms of product and capital investment, you may be contracting out work. Whether it be a web designer or a writer, keeping track of the workers you can trust is essential. Build a reputation with your freelancers and treat them with respect, but don’t tolerate bad work.

• Build a brand: Make sure the customer can identify your product/online real estate with a very specific role or message. By having an easily identifiable message, customers will return to you. If the brand is very successful, you will become associated with you niche immediately, which is immensely valuable.

• Appeal to the customer first: Knowing what your customers want and constantly shaping content and products (not to mention message) around that need will keep you focused and successful.

• Invest in yourself: Once you know you can be profitable, be sure to invest some revenue in ways that will boost the effectiveness of the company. Whether it be a design overhaul or a new marketing campaign, don’t be afraid to roll profits back into a website to help it grow with more revenue.

While an online business may require less time to get off the ground, sound business principles should never be too far from any online entrepreneurs thinkinh. By being mindful of standard business practice, a savvy webmaster can keep their business efficient and profitable.

Amid the latest round of cooling measures in January 2013, which is one of the most comprehensive to date, Singapore's investors are turning to overseas real estate markets to profit from property investments.

Lured by news of a high-speed rail linking Singapore and Kuala Lumpur by 2020 and the rise of Iskandar Malaysia just across the Causeway, property investors are ever more eager to sink monies into Malaysian properties.

Farther away, across the European continent, Singaporeans are attracted to their former colonial master - Britain - as an investment destination. Specifically, London properties see warming buyers' interest with recent launches registering brisk sales. Just into 2013, and already several London property launches have made their way into Singapore, including Highwood House, Fulham Riverside and Chelsea Creek.

The attractions of London properties lie in their rising rental yields and strong capital values.

Thus both investment destinations (Malaysia and London) Singaporeans are eying have strong historical ties with Singapore, and now it looks like their investment ties are strengthening as well!

Interested buyers hoping to jump into this property investment bandwagon will likely finance their property purchases with a bank loan. Capitalising on this, banks are already rolling out mortgage packages for London and Malaysia exclusively.

One bank introduced 3-month SIBOR-pegged loans in Singdollar for property purchases in both places.

Borrowers have to be Singaporeans or Singapore Permanent Residents (PRs) only. For the latter who are also Malaysians, the added criteria is that they must not be residing in Malaysia.

Specifically, the bank's London mortgage package allows borrowing of between S$300,000 to S$3 million, with a maximum of 70% loan-to-value (LTV) ratio.

On the other hand, its Malaysia's package allows for loans starting from S$200,000, with no upper limit. The LTV ratio is also 70%.

Both loan packages come with a lock-in period of only a year. During this period, partial or full repayment will be subjected to a penalty charge of 1.5% of the outstanding loan amount.

Loan cancellation will be subjected to a penalty of S$1,000 or 1.5% on amount cancelled or undisbursed, whichever is higher.

Loan tenure can be anything between 5 to 30 years with a cap of 70 years.

Similar to Singapore home loans for the island-city's properties, the two packages are available for building-under-construction projects, but only a progressive payment scheme is allowed.

However, for refinancing the property must be completed.

Very importantly, do take note that there is a call on margin if the LTV rises to 80% and above. When this happens borrowers will be asked to repay part (above the monthly installment amount) or all of their loan.

The success of any restaurant lies more on its equipment. The restaurant equipment includes cooking stoves, dining hall furniture, oven, bar equipment and so on. There can be number of different models of restaurant equipment. In fact Italian style restaurant equipment would not suit a Japanese style restaurant. However investment on any type of restaurant is very high and so financing restaurant furniture is often essential.

Bar equipment is essential for a classy restaurant with attached bar. The storage and display cabinets, bar furniture, excellent lighting systems etc are essential for the success of the restaurant. Due to their special nature, they are highly priced and so bar equipment financing is the best option to acquire them.

Bakery equipment is essential for a restaurant and it includes dough sheeters, mixers, baking ovens and so on. It also helps in bread and rolls production, pastry production and so on. Though essential, they can be expensive and many restaurant owners find it wise to go for restaurant equipment financing to acquire them.

Refrigeration equipment is essential to keep the food items and raw ingredients fresh. It comes in different models. Walk in freezers, walk in coolers, convenient store coolers etc are vitally important for a restaurant. The refrigeration system uses latest technologies to keep the food items fresh. Hence they carry high price tag and it is essential to look for refrigeration equipment financing.

Ice cream vending machines are also essential for a restaurant since many restaurants wish to prepare ice creams on their own. These machines assist in the preparation of various types of ice creams automatically. Hence it is priced high and restaurant equipment financing is the best option to acquire them.

Cooking grill is yet essential equipment in a restaurant. It is made up of heavy duty aluminum and it is easy to use. There are many varieties of cooking grills. They can use either gas fuel or charcoal to cook. Nowadays electric cooking grills are becoming more popular. Since cooking grills add taste and flavor to the food that are cooked with them, many restaurants use cooking grills in addition to cooking stoves and ovens. They are highly priced and so restaurant equipment financing is often desirable to purchase them.

Pizza oven is becoming more popular in fast food restaurants. People have alluring taste for pizzas nowadays. Hence pizza oven provides important contribution for generating profits in a restaurant. Many smart restaurant owners find it wise to go for restaurant equipment financing.

Restaurant equipment financing requires an expert approach. Hence it is important to seek reliable financing companies that have vast experience in handling food service equipment leasing. This helps to get fast approval of the desired amount. These financing companies provide assistance to the restaurant owners to acquire essential equipment at low interest rates. Hence the restaurant owners prefer financing restaurant equipment. A simple online application is enough to acquire financial assistance from such genuine financing companies. Therefore it is possible for almost all restaurant owners to buy the essential equipment.