Category Archives: Finance

Business Purchase Financing

The most common question clients ask me about business purchase financing is about how fast we can secure them funding to get their business purchase completed. While there are many steps we (myself and the actual lender selected) must take from start to finish, my answer is “it’s all up to you.” This statement often catches people off guard but it is the absolute truth.

There are certain items you must have ready in order to start presenting “a transaction or deal” to potential lenders and financial institutions. Your quest for SBA business acquisition financing will be much faster if you have the following items ready.

* Past 3 years personal tax returns for all owners with 20% or more ownership (Federal Returns only)
* Personal Financial Statement
* For any other affiliate company with at least 20% ownership by an owner of applicant business you will need to provide the past 3 years corporate tax returns
* Resume
* Signed Purchase Agreement
* Brief write-up about the business – possible “mini” business plan
* Past 3 years corporate tax returns of the business you are purchasing
* Past 3 years P&L and Balance Sheet of the business you are purchasing
* Interim P&L and Balance Sheet of the business you are purchasing
* Reason the current owner is selling

If you have all of these items ready to go it will help get your business purchase financing deal into underwriting much faster. If you are in the early stages of searching for a business to buy then simply have your personal items available for review, once you have identified the business you desire we can then request the items needed from the owner/seller.

A complete package is more likely to be put at the top of an underwriters pile whereas an incomplete package can drastically reduce your changes of funding altogether for your business (or business with real estate) purchase.

Easy Personal Finance Tips

Every month we end up spending more and feel the stretch over financial commitments. Often people think about saving more than doing it seriously. This recession period and subsequent lamed growth, has compelled us to give some serious thought to managing personal finance prudently in order to save enough. This article gives some significant input regarding administration of personal finance.

1. The first step is to create a feasible budget that allows you to spend comfortably and meet your basic needs as well as save sufficiently. It should not just be put on paper to forget; instead the budget must be followed stringently. Keep a track of all your payments including electric, phone, fuel and your credit card bills. You can pay through direct debit which can ensure your timely payments and create good credit ratings for you.

2. Good personal finance management requires some compromises and sacrifices on your end. Try to keep a check of your unnecessary food, snacks and alcohol expenditure. Even saving on them just once a month can make a big difference.

3. Your outstanding mortgages, loan repayments and credit card bills must be a priority while planning your savings and investments. It is important to remember that even a few non payments towards your loan installments can lead to severe financial problems or even bankruptcy in worst cases. If you sense that your credits are mounting and it is difficult for you to pay them, it is advised that you immediately review the situation and consult creditors for a solution. You can ask for easy payment solutions or even raise money from other sources to get out of raising debt.

4. Diversify your investments in insurance, shares and other policies that are safe and give good returns. Remember that wise financial planning can help immensely in solving many of the economic problems that you may encounter in your life.

Looking For Personal Finance

Are you prepared to be in complete control of your finances? Controlling your financial future is a vital part of living a happy life. Here is some valuable information to help you manage and control your personal finances.

Don’t get set in your ways and stay with the same investments that did well for you previously. If your investments are not paying out like you expected, you should start looking for another solution and select a more stable investment.

To boost your credit score, it is important to repay existing debts. You’ll need to cut back your spending so that you can completely pay back all your debts. You can make changes like eating out less and limiting how much you go out on weekends. Making your lunch for work and eating at home during the weekends and at night can dramatically reduce your expenses.

Your FICO score is based on the balances of your credit cards. Higher balances will negatively impact your credit score. When you have less of a balance, you will have a better score. Ideally, your balance should remain at less than 20 percent of your credit line.

If you’re in the market for a mortgage, try to increase your credit score until it meets or exceeds 740. Interest rates on mortgage loans will be better with a credit score in that range. If your credit score is not good, take all the time you need to improve it. Try to avoid buying a house through a mortgage if you have a low credit score.

Prepare yourself for all kinds of situations by placing money in savings accounts. Use your savings account to fund high ticket items so that you save money on credit card fees and interest. You will also need to earmark some savings for retirement. If your expenses are less than your income, you should be able to save money every month.

If you can, set up an automated payment for your credit card. That way you never forget.

Before you can begin to accrue wealth, you must ensure that you are always spending much less than you are bringing in. Consumers who spend all or more money than they make tend to borrow to get the money back. This means that they will never build any wealth because they spend it before they even have it. Take stock of how much money comes into the household, and make sure the amount you spend is less.

Though things may look difficult, do not make the mistake of risking your retirement funds to get past the obstacles. There are many options available to you to take care of your personal finances. If you tamper with your future to fix your present situation, that’s like cutting off your nose to spite your face.

You should know by now that having good financial sense is a key part of proper living. You can improve your financial situation by following the helpful tips in this article. You can now meet your financial goals, have control over your personal finances and spend your money in an efficient manner.

Used Car Financing Tips

Are you looking into purchasing a new car, but don’t know where to start? There’s a lot involved! Am I going to purchase new or AutoVillage? Is there a specific car I’d like? How much will insurance be? Will I be able to afford the car payments? Where will I get financing? To start, run down this checklist and see where you end up.

  1. Check your credit score
    When you’ve decided you’re going to purchase a new car check your credit score – ONCE! Since checking your credit score isn’t good for your credit, make sure you don’t check it multiple times and Hyundai Tucson Personal Contract Hire.
  2. Decide how much you can put down
    Before considering any financing options you should think about how much you can afford to put down. Make sure that the number is something you’re comfortable with, and that you aren’t straining too much to get together a downpayment.
  3. Consider the monthly payments
    Now that you’ve decided what you can put down, how much can you afford to pay each month? This will help you to determine what price range you’re looking at for a vehicle. If you aren’t willing to do the math, you can always use a loan calculator.
  4. Pick your dealership
  5. Start looking at the dealerships around town. Is there a used car dealership that you’ve dealt with in the past that you’d like to go back to?
  6. Get Preapproved at your Dealership
  7. Most dealerships nowadays offer an online credit application. Fill that out and wait to hear from the dealership to determine what you’re approved for and what you can afford.
  8. Pick a Car!

Now, the fun stuff! Go take a look at some cars. Test drive the ones you think you like, and bring someone along for a second opinion! Once you’ve found the car you want, you’re ready to drive away!

Swimming Pool Financing Tips

When looking to build and install a swimming pool in your home, it’s best to at least consider swimming pool financing as a way to purchase your pool. Many people do not know about this type of loan, and thus forgo the many advantages of pool credit financing.

First, you need to realize that adding a pool to your home adds value to your home. In other words, such an addition should be looked at and treated as an investment, which is one of the best reasons to add a swimming pool (in addition to the amazing fitness and fun benefits you can enjoy).

Fortunately, there are special companies that have been set up to help you make this investment. These companies specialize in making pool loans to people just like you, and can help you get the pool of your dreams, no matter the type you are desiring.

Some of the things you should look for in good financing for a pool are:

1. A reputable company
2. A company that will take into consideration the value that your pool is adding to your home.
3. A company with good pool loans rates
4. A company with good, knowledgeable customer service

Most times such companies will extend you either a pool loan or a total home refinance. If you can make the home refinance work, that may be the best way to go for several reasons. First, they should take into consideration that the value of your home will be increasing. This will help you refinance at possibly lower rates and may help you even lower your monthly cost. However, be careful to not take too much equity out of your home (i.e. borrow too much). Try to keep close to the same debt/equity ratio, and make sure that you don’t leverage your home too much, or you may find yourself in trouble going forward if you get hit financially.

Real Estate Financing Tips

Bank financing, equity, seller financing and leasing – Do you even know what these words mean? If you don’t – don’t worry because that is what this article is for, to help you understand the financing options you can take to own that apartment or home that you always wanted. These words are thrown around too often these days by prospective sellers and bankers and sometimes not even properly explained leading to confusion when buying a property and looking at the different ways to finance it. These financing options are explained in the following paragraphs.

Bank Financing

This is one of the most common ways to finance your purchase of a home. This involves taking out a loan from a financial institution (banks) and then agreeing with them on down payments and interest payment schedules. These loans are also known as mortgages, these are of two kind a fixed rate mortgage is one in which you have to pay a fixed amount of interest during the life of the loan.The other type of mortgage is known as adjustable mortgage rate in which the rate of interest varies during the loan term, both of these have their advantages, in a fixed rate system, you get consistency and know exactly how much you have to repay each month. Whereas, in an adjustable rate system, you have fluctuating rates which can sometimes work in your favor and you can end up paying less interest then you were supposed to.

Seller Financing

This is a home financing technique in which the buyer borrows from the seller instead of a bank.This is sometimes done when a buyer does not have the necessary credit rating required to take out a loan from a bank or does not want to take a loan from the bank. In this finance method the seller accepts a down payment and provides a loan to the buyer, the details of this loan are included in a promissory note which promise the seller monthly payments for a fixed period of time. The Promissory note is kind of like a deed and with that in hand the buyer is the owner of the property. There are several benefits in using this method for example a buyer can save time as there is less paperwork involved also he/she does not have to wait for the mortgage to be approved from a bank. Also the terms tend to be more flexible as there is no middle man in the agreement and buyer and seller are directly in contact with each other.

Equity Sharing

Equity sharing is used when you cannot afford a home on your own and therefore gather finance from other sources to acquire your home. This can be done by arranging partners who then own the property along with you (partners should not be married to each other). In equity sharing partnership it is recommended that you have a good lawyer make up the agreement that cover the details such as maintenance costs, taxes and percentage of ownerships so that you do not experience any difficulties later on.

Rent to Own

This is also known as a lease purchase agreement and in this method part of the rent of the buyer is put down as down payment and when the down payments reach a certain amount then the buyer has the option to buy the property or decline according to his choice. Keep in mind that in this financing method the rent that you pay is usually higher then market price as some of it goes down as down payment for the property.

Finance Tips, If You Want to Succeed

When dealing with your finances, it is important to get good and reliable advice. These tips that you come across from various sources like friends, family, the Internet, financial experts etc can help you gain financial success. There are experts online who are willing to give advice for free! After you get all the opinions out there, ensure that you will be in a position to make an informed final decision. You do not have to know all there is when it comes to money, you just have to have a realistic plan, and be disciplined enough to see it through.

The amount of money you have regardless of the amount is not as important as being enlightened about the opportunities that are available to you. It is important that you get the facts about saving and investing. There is no guarantee that you will make money from the investments you make but you have to be sure that it is worth the risk at the end of the day. For you to gain financial security it is important that you live within your means.

Learn to purchase only your basic needs and save as much of your income as you can. Include your savings in your monthly budget. It is also advisable to monitor your spending habits and you will be able to see where you need to make cutbacks or you can source for an extra income. If you use credit cards, it is important to control your spending. They are convenient but at the same time they can land you into a heap of financial trouble.

It is essential that you fully comprehend how it works so that you can use it responsibly. If you know that you may not have the discipline and you don not want to carry cash around, you can opt for a debit card. It works just like cash and has a limit as to how much you can spend.

Personal Finance Tips For Families

Family expenses have been hit hard in the recent times of recession and low growth. This has led to an increased number of personal bankruptcies. In order to avoid such situations in your life you need to plan astutely and manage your finances very carefully. This article will supply a few tips for families on how they can administer their finances and save for tough times.

You need to stick together. The entire family must sit and mutually plan a feasible budget. Each family member must understand their responsibilities and recognize that their contribution is important. The elder members in the family must set examples for the younger ones. You can start by cutting your personal expenses and spend less on unnecessary things.

Plan sensibly for all household expenses and other needs. There must be some balance between your income and expenditure. Review your savings from time to time and try to increase them. Before investing, find the best plan to give you maximum returns in the long run.

If you find that your loan has exceeded your financial limits and you are on the verge of going bankrupt, then it is advisable to consolidate your debt and negotiate with creditors for easy or a lower payment amount on your installments so that you can repay them without accumulating a bad credit rating.

Everyone in the family should contribute by keeping a check on the electricity, gas and phone bills. Even saving small amounts on them will help your budget considerably. Remember that in a family, you can not cut on the basic needs but working stringently and compromising little on luxuries can do wonders for your savings.

It is a collective effort; even children need to understand the significance of savings and probably reduce their expenditures. Those who are big enough to work part time can contribute to the family income by taking up few jobs in their spare time.

Personal Finance Tips For Parents

As we grow older our responsibilities also increase and once you become parents you have to deal with them pretty seriously. Taking care of children, providing them with the right education and other facilities can lead to some heavy financial burden for parents. In this case what can you do? What is most important is to prioritize your responsibilities as parents and determine the financial support you need to accomplish it. This article will cover a few tips that can help you manage your personal finances diligently.

1. First of all understand that now you have some serious duties to perform, hence you cannot act as if you are a 20 year old and make liberal financial decisions. You need to create a balance between your instantaneous and long term needs so that you can invest wisely. Manage your income properly and keep a check on spending and investments.

2. Plan for your child’s education early and keep funds aside for it. You will need to create a budget and estimate the finances that you will require for his schooling and higher education. Invest accordingly in schemes and investment plans that will have high returns when you require them most for your child’s education.

3. It is very common that people when they grow old tend to invest in property and buy a house. It is certainly one of your basic needs and you may take some loan for the same. Adhere strictly to your budget and repay loans in time so that you can avoid getting a bad credit rating or bankruptcy. Remember by simply paying the minimum due you are not doing any good. Try and negotiate with the creditors for simpler installments.

4. Supervise your credit card payments and pay your credit bills in time to avoid heavy interest.

5. Remember that with children you also need some handy cash for few unplanned expenses like medical bills etc which may crop up anytime

Personal Finance Tips

It’s unfortunate that personal finance hasn’t yet turned out to be a compulsory subject in schools or colleges. So a lot of people out there are fairly naive about managing their money.

But this doesn’t actually mean that personal finance will always be way above your head! Frankly speaking, it doesn’t take too much to roll back on the right path. Just read this article to know how to craft your own strategy. Fortunately, you don’t have to be good at math to grasp the ideas!

Use self control

May be you were taught by your parents about this when you’ve in your childhood. Just in case you haven’t mastered it, it’s not too late. Almost everybody found success in life through delaying gratification. If you can do it, it’ll be easy for you to have your finances nourishing.

True, you can easily buy something on credit the moment you want, it’s a better idea to wait till you’ve saved up that much. Do you love paying interest on your new pair of shoes or jeans or a bottle of milk? Avoid putting each and every purchase on your credit card.

Take full control of your financial future

Unless you learn to smartly manage your money, others will figure out ways to easily (mis)manage it. Unfortunately, some of them are ill-intentioned (e.g. crooked commission-based, so called financial planners).

At the same time, others might be pretty well-meaning, but might be totally ignorant about what the consequences of their actions are (e.g. Grandma wants that you buy a new house despite the fact that you can at best afford one of those double-crossing adjustable-rate mortgages). So do not rely on other people’s advice. You should rather take charge of your finances and research on some basics on management of personal finance.

Know where all your money goes

When you’ve read a few books on personal finance, you’ll know the importance of keeping your expenses below your income. The finest way of doing this is – budgeting. Once you’ve realized how the seemingly negligible things are adding up at the end of the month, you’ll know how to control that.

Same goes for recurring expenses. If you avoid wasting money on the luxury apartment now, chances are high that you’ll be capable of affording a great condo or a new home even before you know it.