The concept can also be extended to the historical barter system which involved direct exchange of goods and services. In recent times of course, credit is mainly used as a financial term.
Generally, in return of the facility to repay later the borrower has to pay an additional amount in addition to the amount borrowed. This cost of credit depends on the amount of resources borrowed and the time span for which the money is borrowed. The interest is calculated according to some generalized rules.
There are many types of credit: Bank Credit. Consumer Credit. Public Credit. Investment Credit. Real Estate Credit
It is enlightening to know that personal loans, mortgages, credit cards and automobile finance are all categorized under Consumer Credit. As such, if you are intending to get a car credit to meet the bit of crunch in your pocket, you will be listed as a creditor under … Read the rest
Most people who successfully build wealth do so slowly and steadily through work, investment and planning. But windfalls large enough to change one’s financial life certainly aren’t unheard of. Arguably the most common way in which people’s financial statuses suddenly change is through a large inheritance or bequest, but that is only one scenario. You may also receive a large lifetime gift from a parent or grandparent. You may win a large divorce or other legal settlement. You may be a professional athlete or entertainer signing a large contract, or an early employee of a tech startup that goes public. Occasionally, someone even wins a huge lottery jackpot.
Depending on how you come by your newfound wealth, you may or may not have expected to receive it. If your parent makes you a large lifetime gift, for instance, ideally you have discussed the transaction in advance. On the other hand, … Read the rest
The first thing you need to do is create a “wall” or “shield” between yourself and your business. How you simply do this is start off with an LLC or Corporation. Next get your EIN number. Talk to your local experts on what your business model will be and what type of entity will best suit your venture. Remember this can still be done if you’re operating currently as a sole proprietor. Once you establish this corporate veil you will have taken the first steps on separation.
Next it’s important for people and other business to know you exist. You need to register your business with as many free directories as possible. Some of the simple examples are: Superpages, Yahoo, Google, Bing, 411 and so on. There are lots of directories out there so if you can register your business with as many as possible. You want to make it … Read the rest
Is a numerical expression based on a balanced analysis of a person’s credit record, representing the credit worthiness of the person. Lenders like banks and credit card companies evaluate the potential risk exhibited by these persons when they apply for loans by studying their credit scores. In the present context, the loan agencies are hardly concerned about the credit score of their clients.
Customers have to fulfil the following criteria
- Be at least 18 years of age
- Provide proof of citizenship, such as social Insurance Number
- Have a bank account in your name
- Provide work and home telephone numbers
- Provide a valid email address
Benefits of Cash Loans
- Lower rates of interest than payday loans
- The credit score is not an issue
- Ease of getting loans
- Payment plan can range from 6 to 60 months
- Borrowers are given a choice of lenders, whose credentials they can go through and choose
… Read the rest
When you do this your personal credit isn’t even looked at nor is it used for the lending decision but this is about the only exception in the business funding space.
All other funding types including advances look at and care about your personal credit. YES, you can get approved for cash flow financing and merchant advances with bad credit but your repayment terms won’t be nearly as favorable then if you had good personal credit.
SBA loans, conventional loans, most other long term loans, and credit lines do require good personal credit for approval in most cases. Collateral and asset type based financing doesn’t care about personal credit as much. This is if financing only looks at collateral for approval, not financing where collateral is required for approval.
There is no FCRA in the business world, so lenders will never disclose to you that they pull your business credit … Read the rest
Fast cash loans, true to their nomenclature, are really fast to come, as these are generally approved within a couple of hours, and they never take more than 24 hours to reach you. You can find many lenders online, and that makes it easier to make a choice for the mailing of your loan application. Of course, you can access those lenders in person too, but you’ll agree that an online contact is quicker and more convenient. Depending on your monthly earnings, lenders may offer your loan varying from just $100 to $1,500.
Such loans may be unsecured or secured. As you can guess, secured loans carry lower rates of interest and other fees, compared to unsecured loans. However, processing secured loans could take a bit longer due to the collateral offered by the borrower, as the lender would surely get the worth of the collateral assessed before … Read the rest
It is never too late (or too early for that matter) to start addressing one’s financial issues. By recognizing the need for a sound financial plan, you will be able to stop putting off important financial decisions while meeting both your current and future financial needs in the process. For all intents and purposes, this is our some list of financial reasons people tend to put off:
- Automating one’s finances – helps individuals get into the habit of automatically saving a small percentage of their income on a regular basis.
- Building an emergency fund – financial advisors recommend finding a savings account that offers the highest yield and making regular contributions to it.
- Deciding when to retire – if you haven’t reached your 40’s yet, you should start saving towards retirement now because the element of time will be your best friend.
- Deciding where to retire – you should have
… Read the rest
One day, a boat filled with sailors rowed past the cliff. A sailor spotted the goat, grabbed a bow and shot at him. As the goat lay dying he gasped “I thought my enemies would come by land. I never thought to look out to the sea”
Wealth is only guaranteed when your personal money making machine is made up of effective money generation and money retention system. A defect in either of these systems makes you vulnerable to poverty and financial failure. Unfortunately most people intending to make money often concentrate all their efforts on generating money with little or no attention on controlling money. This is like trying to save the life of an automobile accident victim by doing everything to get him to the hospital without stopping blood flow from his body. The truth is: he is likely going to die faster due to loss of blood … Read the rest
The fiduciary standard legally obligates advisors to put your interest before their own. Advisors that work under a fiduciary standard must disclose any conflict of interests and share with you whether they benefit from recommending any products or other professionals. They must be transparent as to fees the advisors gets for that advice.
In contrast, the suitability standard is a standard requires advisors to suggest investment products that are appropriate for you. There is no standard to conclude that the investment will help you achieve your goals or is in your legal best interest. Also, there is no requirement to fully disclose any conflicts of interest, potentially allowing an advisor to recommend products that may provide higher commissions for themselves instead of similar products with lower fees.
There are wonderful advisors and poor advisors that work under both the fiduciary and suitability standard. We work under the fiduciary standard and … Read the rest
Improper Asset Allocation
Most investors have their assets dispersed with several advisors and several financial firms. No single advisor knows what the other is doing resulting in an uncoordinated portfolio. One advisor in firm A might be selling the very asset that an advisor in firm B is buying. Unless there is one coach reviewing the entire portfolio, then your money is not coordinated.
Your asset allocation should always reflect your current position in life, your current goals, future, feelings and family characteristics. When your hard earned money is scattered to other advisors and institutions, you alone are left to properly manage your portfolio. Many individuals are not trained to monitor this correctly and consistently. Unfortunately, the overall plan suffers.
Improper Correlation Within Investments, Managers and Funds
Without saying, each investment needs to be excellent on its own. The investment, manager, or mutual fund needs to have a strong track … Read the rest