Business Loans Australia News

Tricky lenders fooling borrowers
AFTER the latest interest rate rise, potential borrowers are being warned about some of the tricks used by some lenders to win business. Some lenders regularly delayed their rate increases by a month or so, leading borrowers to think they were getting a better deal. However, because of the time it takes to finalise a loan, by the time the loan is ready to be settled, the lender's rate had moved up. Even though a lender intends to increase their rate, they are not required to advertise it in the headline or comparison rate until they actually change the rate. Borrowers usually find out too late and are locked in by heavy exit penalties. Unlike variable loans, fixed rates are not subject to decisions by the Reserve Bank, and rise and fall at the whim of the lender.
Sat, 05 April 2008
What are Business Loans ?
Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners.

What Are Business Loans?

by: John Williams

Fri, 11 April 2008
Bad Credit Business Loans
It's no secret that running a business can be time consuming, expensive and at times, overwhelming. Even experienced business owners are often caught off guard by unexpected expenses due to unforeseen circumstances. With many companies owing money to lending institutions, these situations can often lead to delays or defaults on loans, lowering the business' credit and endangering their financial welfare. The irony is, many of these businesses will need additional financing in order to overcome and recover. Bad credit business loans can be notoriously difficult to obtain, and often come at an extraordinary cost.

There are options for businesses with poor credit ratings. Financing that does not take a business' credit into account is clearly the easiest route. Many businesses with bad credit ratings are quite profitable and do a steady trade from one month to the next. However, conventional lenders are extremely strict about adhering to their own credit qualification criteria, which almost always involves previous repayment history. Just a few missed payments could make conventional financing nearly impossible to obtain. This makes bad credit business loans expensive and often involves a lot of extra time and effort.

Merchant Resources International has a solution for companies in dire need of bad credit business loans. Companies that can demonstrate a clear and reliable history of credit card transactions can obtain much needed financing by selling future transactions. This can be ideal for several reasons. One, the company is able to begin the recovery process without the rigorous process of obtaining a conventional loan, and two, they are able to get cash flow now without waiting for transactions to wind their way through the banks.

This financing can even be used to help businesses recover their good credit standing. By using the money from Merchant Resources International to pay off outstanding debts, businesses can recover and begin rebuilding a healthy credit history. This is important not only in obtaining future financing, but also affects the overall health and reputation of your business. Additionally, bad credit business loans from Merchant Resources International do not add further risk with unwieldy loan payments. Because the loan is funded from future transactions (at a small cost), businesses can rest assured that they can afford the financing.

While bad credit can seem devastating to a business, there are options. By obtaining the cash flow needed to recover from a financial setback, businesses can focus on regrowth and repair without incurring unmanageable debt. As any business owner knows, the ability to bounce back from a setback is a crucial skill in the business world. Having adequate cash flow is a key component to being able to do exactly that.

Source:http://www.bad-credit-business-loans.org/

Fri, 25 April 2008
How do I ... set up a business account?


by Anthony O'Brien, Money Magazine

Business accounts are an excellent financial management tool for anyone looking to own and operate a small business.

Offered by around 38 financial institutions, including the major banks, credit unions and building societies, business accounts can help your business run smoothly.

What is it?

Business transaction accounts are everyday banking accounts for businesses. They generally provide more transactions (ATM, online, cheque and phone banking) than a personal transaction account. Some online business transaction accounts pay interest above five percent, according to consumer finance research firm Cannex. Personal transaction accounts, in comparison, generally pay negligible interest.

Why do it?

Harry Senlitonga, financial analyst and sector manager with Cannex, says: "Business owners have very different needs to personal banking customers. The banks have recognised this by creating distinctive business transaction accounts."

Rachel Green from SOS Nursing & Homecare Service, based at Pallamallawa in north-western NSW, says her firm uses a business transaction account as a financial management tool to help it handle receipts, expenses and other transactions. "The turnover is quite large, so money flows in and out at a rate of knots and our transaction account helps us co-ordinate our cash flow," she says.

How do you do it?

Unlike personal transaction accounts, only a business owner (director, partner and so on) can open a business transaction account — and only after a business obtains an Australian Company Number (ACN) or Australian Business Number (ABN).

With most financial institutions you can apply for a business account online or in person and invariably there's some work involved in completing an application. For example, you'll be required to nominate the number of owners and provide their contact details, as well as the business's trading and postal addresses, its constitution, plus ABN and/or ACN numbers and so on.

A financial institution will charge a "company search fee" (expect to pay $50) to confirm with the Australian Securities and Investments Commission (ASIC) that the account applicant is in fact the owner of the business in question.

As with any financial product, make sure you do your homework and be mindful these accounts might have some additional features not available to personal transaction accounts. For instance, if your business generates large balances a "sweep facility" may be available to you. This automatically takes surplus funds from the business deposit account and deploys them to another cash account, which may pay a higher rate of interest.

"This ensures that interest is maximised on surplus funds while funds are maintained at pre-agreed balance levels, subject to available funds, to meet the ongoing business expenses," explains Harry Senlitonga.

Also consider how many transactions will occur each month. Some financial institutions offer different interest rates, in line with the number of transactions. Senlitonga says most business accounts offer a maximum number of free transactions a month, after which fees apply. Some business accounts instead offer rebates on fees, based on minimum account balances.

Any pitfalls?

You may pay monthly account-keeping fees — but not always. Some institutions waive account-keeping fees from the outset or when you reach a specified balance. For example, Bank of Queensland's Everyday Business Account ditches its monthly fee when the account balance hits $5000.

Senlitonga says fees can also be charged against deposits, which rarely happens with personal accounts. "Another trap with some accounts is the treatment of cheque deposits," warns Senlitonga. "You might use one deposit slip for 10 cheques. But the financial institution will treat this as 10 rather than one transaction."



Thu, 29 May 2008
18 Personal Loan Tips For Intending Borrowers
If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

Be honest in loan applications

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

Don't just take the dealer finance

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Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.

Personal lease applications will require:

· proof of current employment

· income details or tax returns

Business lease financing requires more detailed information and may include your:

· balance sheet

· tax returns

· cash flow projections

· business plan

Confirm with the lender what you will need before the interview.

Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

Honesty counts

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.

This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

Source: http://www.money-tips.com.au/



Thu, 12 June 2008
9 Ways to Stretch Your Income
Here are some great tips for stretching every dollar.

1. Save a penny, keep a penny.

Dump your pocket change into a jar each night.

Invest it in a high-interest bearing account at the end of each month.

Woman's Day magazine recently suggested this money-saver, adding that if a couple puts just one dollar each into the jar every day, the sum will top $700 at the end of the year.

Invested at 10 percent interest over 10 years, that pocket change will grow into $12,000.

2. Use your computer.

You can save big money by shopping online, if you know where to look.

Do a Google search for coupon codes before you start shopping from online merchants.

You can also purchase a local coupon book for offline purchases (The Entertainment Book, for example.) I use mine all the time for groceries, oil changes, and dining out.

3. Write letters.

Whether you love the product or hate it, write the manufacturer a letter.

A company that receives a complaint is bound to make amends.

On the same token, many companies will acknowledge--and encourage--your satisfaction with coupons and discounts.

4. Shop smart.

Look at the grocery store ads before heading off to the store.

Maybe you can reserve a few items for purchase at a nearby store that is offering unusual bargains.

5. Ban impulse buying.

Make it a family policy: if you see something you like, write it on a wish list and wait at least three days before buying.

6. Watch out for "nickel and dime" expenses.

Those little snacks and coffee stops can easily add up to more than $500 per year.

7. Shop around.

Research purchases on the internet.

Before making a big online purchase, visit http://www.dealtime.com and http://www.mysimon.com.

8. Refinance your home.

Signing a few papers can save you big money on your mortgage payments. In fact, if you refinance and consolidate your debts into your home mortgage you'll find that your monthly outgoings can decrease dramatically.

It's really not as big a hassle as you might think.

Ask your friends and family for the name of a good mortgage broker

9. Examine credit card use.

If you're paying credit card debt, you're paying not just 17 percent more for your purchases than you need to, you're also missing out on the money that the sum could earn for you if you had invested it.

Try calling your credit card company and ask if there’s a way to lower your rate.

One two-minute phone call recently reduced our rate by 4 percentage points. That was one call I wish I'd made a long time ago.

The most important thing is to recognize that you control your finances. Empower yourself with smart spending.

Source:Susie Cortright



Mon, 23 June 2008
Business: Avoiding Loss with Proper Risk Management Strategies
Solid protection in the form of commercial insurance, should buildings, tools or materials become damaged, is important for company survival, and many individuals believe that having insurance coverage will replace losses in the case of fire, theft or accidents.

However, there are many financial considerations that office insurances cannot cover.

For example, while your business insurance might provide coverage to replace damaged machinery vital to your company’s functioning, the lost productivity from the beginning of the accident to the end of downtime can mean serious costs that could be crucial to your company’s survival.

Risk management strategies help reduce financial loss and avoid unnecessary failures of productivity that many businesses can’t afford and shop insurance policies can’t cover.

While full business insurance coverage is important and vital to the survival of a small company, knowing the risks and the consequences of downtime are imperative.

For example, a damaged piece of machinery can be replaced, but losing a client that didn’t receive his shipment on time or having disgruntled employees that don’t find their workplace conductive incurs long-term financial loss that most small business need to avoid.

Any financial impact to your small business affects its competitiveness and overall success.

When analyzing what factors need to be taken into consideration to minimize lost income, having solid, comprehensive business insurance is a must.

A professional advisor can help you choose which type of coverage and commercial insurance policy is best for your enterprise.

During discussions of office insurance options, ask your advisor about deductibles or excess that your business may have to absorb should an accident occur.

Always read the fine print of your policy’s coverage and know ahead of time what you’ll be facing if misfortune strikes.

Then, prepare a plan to deal with those risks.

Avoiding risk keeps your business competitive in the marketplace and helps maintain low costs and lost productivity.

Examining your business’s workplace for potential accidents or hazards and correcting the situation before something goes wrong can help prevent crucial financial loss.

Preparing a plan to deal with downtime minimizes the financial impact to your small business.

Also, knowing the potential risks your company faces can help you transfer these same risks to commercial insurance companies, reducing loss should your business suffer an upset in productivity.

Discuss risk transfer with your insurance advisor and be fully prepared to deal with financial losses beyond direct material damage.

Written by: Frank Hills

Sun, 29 June 2008
Do You Work For Your Money Or Does Your Money Work For You ?
The Poor Cash Flow Pattern

In order to understand the three basic cash flow patterns, you must first understand the difference between an asset and a liability. When you stop working for money, an asset is something that will put money in your pocket every month. A liability is something that will take money out of your pocket every month. This idea touches on the difference between earned income and passive income.

The first basic cash flow pattern is the poor cash flow pattern. Before most people even learn about money they want things, and so they learn first to work FOR money. As their income is earned it is just as quickly spent on their list of wanted items. The poor cash flow pattern has earned income flowing in and entirely back out to expenses.

It does not matter if you have a sizeable income, because money does not make you rich or poor. Money is just a tool. It is how you are managing the tool (money) that determines whether you become rich or poor. Even with a substantial income you are still poor as long as your focus is only to earn your income and pay your expenses.

You may make $500,000 a year, you may have enough income to cover all of your expenses, but if you were to stop working for money you would quickly realize that you are poor, and the idea that you were not was just a temporary illusion.

The Middle-Class Cash Flow Pattern

Eventually people get tired of this routine and begin to gain better understanding and control over their expenses. Enough time spent focused on working for money may produce extra income in the way of a raise or a promotion.

Most people still have not spent any time to financially educate themselves, so they don't know what to do with the extra money. They don't have any ideas of their own about financing their retirement, either. The extra money is usually used to buy a newer car, a bigger house, and anything left over usually accumulates as savings. Eventually most are sold on putting the extra money into a portfolio for their retirement, usually consisting of mutual funds.

These purchases make life more comfortable, and so feel like assets...but they create an expense every month for a very long period of time. The misunderstanding is made worse by bankers who ask you to list your cars and home as assets against loans. By definition, these purchases are liabilities.

The Wealthy Cash Flow Pattern

A change of focus to passive income leads people down the path to a wealthy cash flow pattern. When you look at the pattern of the wealthy you may notice- they do not get their income from a job. Their cash flows in from assets.

Imagine spending your time figuring out a process that will automatically produce some income for you every month. Now imagine duplicating and improving upon that process until it automatically produces your ENTIRE income every month. Finally, you will stop working for money. That process is a business, and that income is a passive income.

From that point forward you will be financially independent. You will not work for money, you will have money working for you. It might take you 2, 3, or even 5 years to establish a system to that point, but once you do you can retire. Once you retire, you have all of your time to spend however you like.

This is the reason understanding the three basic cash flow patterns is so important. These patterns demonstrate the reason why you can become financially independent in just a few years working at a seven dollar an hour job. Your biggest obstacle in the beginning is controlling your expenses and changing your focus from earned income to passive income. Once you have become committed to these fundamental ideas, only persistence stands between you and great wealth.

Written by: Frank Hills



Mon, 07 July 2008
Good Debt Versus Bad Debt
Some people see debt as a curse, and other people see it as a friend. It can be used to make you miserable, or it can be used to make you wealthy beyond your wildest dreams. The trouble is, how do we know what is good and what is bad?

Well it basically boils down to this. Good debt puts money in your pocket after you have paid for the debt (interest), and bad debt takes money from your pocket on an ongoing basis. In todays society, the world has gone through an explosion in bad debt. In the United States for example, for every $1 a person earns, they spend $1.20. In Australia things are getting worse too. We spend $1.02 for every dollar earned. Back in the 1980's we would earn $1 and save 20c.

The single most influencing factor in this curse of bad debt is the credit card. It is so easy to get a credit card these days, and even school kids have them. Most people I know have several of them, and you know what, they max them all out. People get caught in this vicious circle of paying one card off with another, and still the interest bill compounds at an alarming rate.

It is not only credit cards that are doing the damage, it is also the ability to get three years interest free furniture and home appliances with no money down. This is a huge trap, and when people live beyond their means and do not have the means to pay back their debt in the given time they are hit with massive interest rates and so the cycle continues.

So that is bad debt, and I didn't even include cars, holidays and clothes, all charged up on your card! You get the picture.

Now onto good debt. Personally, I love good debt, and any wealthy person will tell you the same thing. With good debt you can purchase income producing assets that put cash in your pocket, even after the interest bill is paid. Some examples of this include property, shares and stocks, and your own business. It even includes things such as art, wine and other rare collectibles.

By leveraging other peoples money to buy such things, you are after a time able to put yourself into a fantastic financial position, and you can now begin to pay cash for those bad debt items like expensive clothes and exotic holidays.

When I was at school there was never any lessons on good and bad debt, and I'm pretty sure they still do not teach effective money and debt management. It is unfortunate that in a society such as ours, that the government does not teach this to every man, woman and child as it has a massive impact on our lives. Just look at the sub prime fallout in the States to see how people who overextended themselves are now really in trouble.

There is a way out if you are in bad debt, and there are resources out there to financially educate yourself before you do get into any trouble.

We only have ourselves to rely upon to shape our financial future, and the longer we leave it the harder it gets. Eradicate the bad debt from your lives, and begin to live without that heavy weight around your neck.

Written by:Clint Maher

Sat, 12 July 2008
Credit Secrets - What They Are Not Telling You
Credit plays a dual role in our society; sometimes a lifesaver, and at other times a murderer.

Trying to float above imminent economical disaster is a daily exercise for the majority.

So, credit companies often seem to be our rescuer, offering attractive interest rates, interest-free repayment periods and extended credit limits.

But, what they don't tell you at the time you apply for credit could be the knife edge you've been trying to avoid all along.

With the credit secrets they never disclose, you could be ignorantly heading for disaster

You can reduce your credit worthiness by applying for a lot of credit facilities: it's a fact.

The more credit you apply for, the more it's likely to reduce your credit rating.

The credit secret is that to the creditor, you're a high-risk customer who would spend easily, someone whom they can charge a higher interest rate from (it's usually clarified in the fine print that you don't tend to read).

They don't want you to pay the whole bill: yes, that's why they have a minimum monthly payment invoice.

The credit secret here is "the less you pay on a monthly basis, the more interest gets charged on your credit remainder."

In the end, you pay almost double the actual credit, because of the prolonged payments.

Low introductory interest rates don't last very long: they lure you with minimal interest rates, such as 4%, for the first six months or so. But, if you delay even one repayment, the interest goes up immediately.

The credit secret? Baiting you ... hook, line and sinker!

Additional fees are always added: if you think your credit repayments are subjected to a mere late payment fee, think again.

Credit cards are subjected to inactivity fees, overlimit fees and transaction fees, while other credit facilities carry additional fees calculated on overdrafts, failure to maintain a minimum balance and account closure.

Knowing these credit secrets will give you an advantage over the money sharks, and save you thousands of dollars over the years.

Written by:Taylor Leonard

Sun, 20 July 2008
Cash could be king
Don't rely on China's boom to carry you through a bumpy time.For years we've been told diversity is the key to investing because while one asset class struggles, another will be doing well and level out the bumps for a consistent return...

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Well, it looks as though we could be in one of those periods where cash is the only saviour. So it's time for an investment reality check to see where we are in the cycle.

ECONOMY

The US is in recession (we just have to wait for the official confirmation) and it looks as if Britain will follow. Some believe both economies are in for hard landings as they suffer from the credit crunch and plummeting property prices. As inflation starts to rear its head, the US hasn't much room to move, official interest rates being so low. Lift rates to fight inflation and it runs the risk of pushing that economy deeper into recession.

As for the Australian economy, we're in much better shape than either Britain or the US for a couple of reasons. First, the Australian Government is flush with cash after a string of budget surpluses has allowed a series of slush funds to be built (future, infrastructure fund, education, hospital funds and so on). There is plenty of money to throw at the economy if we come to a screeching halt.

Second, while I still think the Reserve Bank went too far in the last back-to-back rates rises, it has room to cut rates if the economy slows too much. Our official rates are among the world's highest, so there is plenty of room to cut.

Third, there is the China and India argument. Economists say that while those countries continue to keep buying our commodities, the mining boom will continue and that will underpin the economy.

Economists reckon there is no sign of the boom slowing, and they expect it to continue for years. I'm not as confident on this front. Sure, China has a big domestic market to feed, but it is an export-based economy and if its customers in the US and Europe start ordering less because their economies are in recession, it must have an impact on China's growth.

Sharemarkets are also lead indicators on the health of economies and companies. It worries me that the Shanghai stockmarket is down more than 50 per cent since the start of the year, and India is down 40 per cent.

But with mortgage approvals dropping to an eight-year low and consumer confidence the worst since the 1991 recession, average Australians are preparing for the worst.? SHAREMARKET

When boring old listed property trust GPT gets into trouble I really start to worry.

Then there's retailing star Harvey Norman, down from more than $7 in November to $3, the banks continually pounded, and now even BHP is back around $40. The sharemarket looks ugly, even the energy stocks (which have cushioned the full impact) dropping back.

As I've said before, this 5000-point level on the ASX-200 will be a critical indicator. If the markets bounce up from there solidly, some experts will be happier. If the market drops below that, there is a lot more pain to come.

Now I know there are many investors just itching to get back in the market and take advantage of some of these "cheap" blue chip shares. But I'm not yet convinced. There are three things you can do when looking at the sharemarket - buy, sell or sit on the sidelines. I'm still leaning towards the last.

Some say the resource stocks are good buying, but while they haven't come down as much as others, they're still pretty expensive when you look at the uncertainties ahead.

If you can't help yourself, talk to your broker and maybe start nibbling at some of the blue chips, but I think it is just too dangerous to take a major position believing this is the bottom of the market.

RESIDENTIAL PROPERTY

Banks have clamped down on financing, and auction clearance rates are terrible for the minority brave enough to openly sell. A mate looking for a house in Melbourne told a real estate agent he was disappointed with those available. "Don't worry," the agent said. "I've another 30 in this price range whose owners aren't game enough to publicly list them in this environment."

The best advice in residential property is just don't be forced to sell. If you're doing it tough with higher interest rates, do everything to hang on, because a forced sale could crystallise a big drop in value.

Investing for rental yield could be an option, depending on the property, but tread carefully.

CASH

Cash is king.

It's pretty hard to go by an 8-9 per cent guaranteed return in this environment, for the time being anyway.

Source:http://www.financialservicesonline.com.au

Sat, 26 July 2008
Who wants to be a millionaire?
Australia now has more of them than Brazil or Spain. John Collett looks at the reasons why.Thanks to the resources boom, the ranks of Australia's millionaires swelled more quickly last year than in most other developed countries...

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The number of Australians with financial assets of at least $US1 million ($1.03 million), excluding the family home but including superannuation, rose 7.1 per cent to 172,000, according to a survey by Merrill Lynch and Capgemini.

Of the 71 countries surveyed, Australia ranked 10th by number of millionaires.

Australia has more millionaires than Brazil and Spain, despite those countries having much bigger populations. As expected, the US is still the richest country and is home to 3 million of the world's 10 million millionaires.

Yet the large emerging economies of China, India, Russia and Brazil are growing their ranks of millionaires much more quickly than countries with fully developed economies. China, which had 415,000 millionaires last year, is on the verge of overtaking Britain and its 495,000 millionaires.

However, the credit crunch and turmoil in world financial markets slowed the millionaire club's growth rate last year and is expected to affect this year as well.

Wealth in Australia has been generated in several ways, says Thomas Alexy, Merrill Lynch's head of global wealth in Australia. Certainly, the booming demand for commodities has helped, he says.

"But the wealth comes in a lot of shapes and forms."

Apart from the handful of lottery winners, the prerequisite for building wealth is either being successfully self-employed, having a job with a high income or receiving an inheritance.

Yet plenty squander their income without having much to show for it.

Those with discipline who get good advice and take full advantage of Australia's quite generous tax system for borrowing to invest tend to do the best, Alexy says.

He says successful long-term investors are those who preserve their capital with good asset allocation and "never try to hit the big home run".

Andrew Inwood, the founder of brandmanagement, which conducts market research for the financial services industry, estimates that one in four of Australia's millionaires was born overseas.

"Migrants with money used to be mostly from Europe but are now from Asia and even the Middle East and Africa," Inwood says.

He says another striking feature of Australia's millionaires is that about three-quarters own their own small or medium-sized businesses and more than 70 per cent are tertiary educated.

PATIENCE

Doug Turek, the founder of high-end financial planning firm Professional Wealth, says wealth is driven by age, income and a few habits or traits - the main one being patience.

"Barring a few dotcom or iron ore millionaires, it is very hard to accumulate assets quickly; you need time for these things to build. It doesn't necessarily matter if your investment focus is strictly shares or direct property, or a mix of those things or even building a business. The key is having a disciplined focus over a long period of time."

Turek has developed an online survey (www.wealthbenchmarkets.com.au) where people enter their financial details anonymously and in return are told how their wealth compares with others of the same age and income.

More than 90 per cent of the participants in the survey are male. "Males seem to be picking up higher income roles than females," Turek says.

"There is plenty of other research to show that women, because of their time out of the workforce and inequalities in roles and promotion, are not as wealthy as men."

However, Turek says the marked predominance of wealthy males in his online survey may be partly because men are more comfortable than females in sharing their financial information, even though it is given anonymously.

"It is a male-dominated wealthy world," he says.

One of the key determinants of wealth is the family situation. "Being together and not divorced is a very strong success indicator because of the tremendous financial costs of separation over a lifetime," Turek says. "If you have been divorced, your net worth will only grow to three-quarters of those who are not."

PENNY PINCHERS

Inwood, whose company recently conducted a focus group with wealthy people, says some millionaires enjoy an extravagant lifestyle but most are modest in their spending. They tend not to spend that much on clothes and holidays, and are generally "tight" with money but will spend on quality things.

Turek says working overseas is also good for building wealth. "We have found that those that have spent time working overseas have a higher net worth than those who have not.

"You can think of professionals who have worked for a law firm in London or for an investment bank. Then there are those who have grown up in another culture and economy, and have come to Australia as a wealthy migrant."

It is not only those on particularly high incomes that have become wealthy.

Inwood uses a lower threshold for the definition of a high-net-worth individual than many other researchers. His definition is those with assets of more than $450,000 outside of their homes and superannuation. Recent research by brandmanagement shows that about half of them earn less than $100,000 a year.

They are those in their 50s and 60s, the baby boomer generation who have enjoyed rising house prices during the 1990s and 2000s and have good savings and investment habits. Home ownership has given them a springboard to borrow and invest.

Now that house prices are much higher than when the baby boomers first got onto the property ladder, it remains to be seen whether younger generations will fare as well.

SOURCE: John Collett - The Age



Mon, 28 July 2008
7 Cash Flow Steps to a Healthy Budget
The word budget can strike fear into even the strongest of people. If there is one thing very few people are ready for when they leave the safety of home for the first time it is dealing with money. There are not too many people who even know how to balance their chequebook after they open their first chequeing account. So creating a budget can be a scary proposition for anyone who isn't good at keeping track of their money.

But if we look at a budget in a different light then maybe it will be easier to live with what it is. And all it is is a cash flow plan. All a budget does is track where the money is flowing from and where it is flowing to. Cash flow; it's what makes the world go around.

Here are 7 steps you can use to plan your cash flow and before you know it you'll have built a budget. Start with a piece of paper and a pencil; you can save those fancy budgeting software packages for later.

1. Write down your monthly income. If you are a salaried worker this should be easy. If your income is not that steady then add up the past three months worth of income and average it by dividing by three. This will give you a good starting point.

2. Start writing down all your monthly expenses. Mortgage, rent, car payment, credit card payments, utilities, groceries, eating out, entertainment, and anything else you spend money on. For those expenses that fluctuate, such as groceries and gas, use the three month average method to get an accurate amount.

3. Here's the scary part for most people. Subtract the expenses from the income and see what's left. You will either have a positive cash flow or negative cash flow. Unfortunately in this day of increasing debt most people have a negative cash flow.

4. Once you have your monthly cash flow laid out in front of you you can start assigning your money to your expenses. As you make those payments throughout the month write them down to see how your spending lines up with what you have budgeted for that particular item.

5. If you have a negative cash flow then you can start looking at everything you have written down and find areas where your spending may not be in the best interest of you financial goals. As you do this you can free up money for more important financial considerations.

6. The first time you do a cash flow plan it probably won't work out quite right. It normally takes about three months to get everything working right while you figure out where your money has been going every month. Be patient with your budget and before long it will start working and you will regain control of your money.

7. Once you are comfortable with your written budget and you have better control of where your money goes and what it does then consider investing in some budget software such as Quicken. It can make your cash flow plan much easier and with the added features like retirement and tax planning it can give you a solid financial future.

By using these 7 cash flow steps you can begin your budget quickly and easily. Only by taking back control of your money can you improve your financial future for you and your family.

Written by:Andrew Bicknell



Tue, 05 August 2008
Ten Ways to Thrive in Uncertain Economic Times
Even in the worst economic environments some people will be more successful and resilient than others. Why? Because some people simply have a better psychological relationship to earning and spending money. This allows them to make the most of the opportunities around them and avoid common mistakes.

If you want to weather uncertain economic times and build a strong wealth foundation, you need to have the best relationship with money you possibly can. Here are a few tips to help you do just that!

1) Study Success, Don't Focus on Failure.

Most of us know plenty of examples of people who do not make enough, save enough, or who use money poorly.

How many examples of prosperous, successful people can you easily call to mind?

Decide what true and healthy prosperity looks like to you.

Then interview people, watch the news, and collect examples until you have a list of 50 wealthy, admirable, and inspiring people. Write this list down.

When you feel discouraged or unmotivated - read your list.

You will notice just by doing this that you see more opportunity and you are able to impress your boss or close more sales without even trying hard.

2) If In Business for Yourself, Collect "No Thanks" Responses, Don't Try to Get Clients.

In a tough economy, we often get scared and push too hard.

Often this can make it harder to get sales.

Instead, make a game of how many calls you can make, free consultations you can offer, talks you can give, articles you can publish, how many ways you can improve your product or service, etc.

Assign yourself points for each activity. Play with someone else. When you both get enough points, go do something outrageous and fun.

When you focus on the "no" not the yes you get less discouraged and stay more consistently engaged- which is particularly important when you are trying to sell in a tough market.

3) If You Work for Others, Don't Try for a Raise or a Better Job.

Instead try to figure out how you can add more value and make more money for your company.

Make it a game - how much better can you do this month than last? Document your efforts and your results.

Then you will be in a good position to ask for a raise or to present your case to a better employer.

4) Be a Language Detective.

What are you and others around you really saying about money?

Do you talk about money struggle, how money can be a pitfall or the evil ways of the rich?

Do others around you talk that way?

Listen and learn, and then change the messages you speak and hear to support your new core beliefs.

You will feel better and others will notice the change too.

5) Forgive Yourself Unconditionally for Your Money Past.

Fear and negativity from past experiences will affect the unconscious signals you send out to others as well as your own confidence and self discipline around money.

Even if you are not aware, of it a bad attitude about money could be affecting your opportunity.

To start a serious change, create a forgiveness letter to yourself and read it aloud to yourself every night for 30 nights before going to sleep.

You may also wish to talk with a coach or therapist about issues that come up as a result. This will help clear your way psychologically for new abundance.

6) Stop Making Money a Secret.

Tell someone you love about your debt or your earning goals.

When you don't talk about what you make, what you owe, or what you spend, and you are afraid to ask others about their money - you increase the shame and confusion about it.

Challenge yourself to go talk to five people about money - ask and tell all and give yourself the gift of real world perspective.

7) Stop Moving the Goal Post for Your Projects.

Some people say they want to put $5000 in savings, but when that goal has been met, it quickly becomes "not enough."

Give yourself the room to appreciate what you have done and accomplished. Make a list of 50 "successes" you have had over the last six months and keep it handy.

This will help keep you motivated and moving. If you want to move on to bigger goals, make sure you know that they are separate goals and not extensions of previous ones.

8) Make Saving Money a Reward.

Whenever you do something wise or good, take one dollar and put it in a jar.

Let this positive energy stay in there and grow for six months to a year. Then take out your savings and invest it in something that will have a long-term impact on your happiness (for example: education or training, savings, investments or anything that will have a long-term impact on your net worth.)

9) Focus On Quality Not Price.

Try not to haggle very often. In many cases, this creates an unconscious belief in lack. Either a thing is worth the energy or money is being asked or it is not. If it is, give it willingly. If it is not, look and ask for higher quality or a more satisfying purchase - not lower price!

10) JUST DO IT!

Complete those tasks you know are undone and are nagging at you and draining your mental and emotional energy. You know you need to return those library books, call your aunt, move your 401k, change your insurance, or whatever your personal procrastination items are.

The more unfinished business we have the more impulse spending we tend to engage in. Unfinished business leaves us feeling drained and keeps us in a state of inaction and denial. Both things are bad for your money. You will find that when you complete (or consciously decide to take off your list) unfinished to-do tasks, your start making better money choices.

Experiment with these ten tips and you will end up BOTH spending less and earning more. And that after all is how wealth is built in ANY economy!

Written by: Mari Geasair

Mon, 11 August 2008
Business loans
Business loans allow business owners to grow, expand or finance a particular aspect of their business. They generally have relatively flexible terms, such as different types of interest; capped, fixed rate or residentially secured, for example. They are offered by most banks and financial institutions. Interest rates on business loans are generally around seven to ten percent, which is higher than home loans (about six to seven percent), as they are less secure.

Loan structure, fees and business credit cards

Most business loans offer a range of interest rates, fixed or variable repayment terms, and fixed terms between one and 25 years. The minimum loan amount is usually between $5,000 and $10,000 and secured by residential property. There are commonly establishment, guaranteed rate and monthly account keeping fees.

Other financial benefits are available to small businesses. For example, American Express Australia offers the Small Business Card, which features either credit or charge facilities, allowing you to control and account for your expenditure more accurately. Many financial institutions, such as NAB, offer specialised credit for businesses. The Commonwealth Bank also offers a small business loan, which is advertised as flexibly providing for your business growth needs. They also offer a Business Line Of Credit, available for approved amounts from $50,000. See your financial institution about what they offer, but shop around too. Business credit cards may also help you to manage your business's finances.

Business loan advice and finding a financial adviser

Some options for further advice and assistance include business.gov.au, a federal government initiative to encourage small business success. It may also be worth employing the services of a financial adviser (choosing a licensed adviser/financial advisory business is recommended). The Australian Securities and Investment Commission (ASIC) offers advice about how to find the right adviser for you.

Source:http://www.moneybuddy.com.au



Mon, 18 August 2008
Which Credit Card is Right for You
If you're in the market for a new credit card, there is a bewildering array of cards to choose from. There are even more incentive offers, so how can you decide on the card that is best for you? Here are some of the factors to consider.

What Kind Of Payer Are You?

The most crucial question is whether you are a person who clears the credit card every month or whether you always leave a balance on the credit card.

If you pay up at the end of every month, then you can go for a credit card that offers an incentive. If not, then you need to look at the annual percentage rate (APR) on the card. If you know what your typical credit card balance is, look at the illustrations given by card issuers to give a guide to how much you might have to repay over time.

Taking An Interest

Even with interest rates, you need to be careful. Although your new credit card may come with a 0% balance transfer rate, this is not the only rate to think about. Look at the rate on purchases or other transactions to see what you might be paying. And remember that any payments you make are likely to pay off the transferred balance first, while any new spending accrues interest.

Compare Credit Cards

Want to know which card is right for you? Why not check out our credit card comparison page to view a table comparing features and benefits of some of the most popular cards. Click here.

Hand in hand with the interest rate goes the interest-free period. This is the delay between spending money on the credit card and being charged interest. This can vary considerably depending on the card you choose. The interest free period can be as much as 56 days. And it's how you use it that counts. If you put major spending on the credit card after the statement date, you have a month till the next statement, and then a few weeks to make the payment. This can be a good way of managing cash flow.

Look At The Fees

There are three types of fees that count with credit cards. The first is the cash withdrawal fee. Many credit card issuers charge you for withdrawing cash at an ATM. These fees can be around 2% of the transaction. The percentage is even higher when withdrawing cash abroad. If you must use the credit card, then you're better off making one large withdrawal so you don't pay the minimum fee each time.

Getting Some Cash Back

Some credit cards offer annual cashback deals which are great for people who clear their balance every month, but not so good for others. If you don't clear your balance, the interest charged will wipe out any cashback gains. There are also reward points schemes that allow cardholders to earn money from their spending – and spend it again with a variety of high street and online retailers.

Paying attention to these items will help you to choose a credit card that will match your financial situation.

Source:Amanda Cherry



Thu, 21 August 2008
What are business loans?
By John Williams

Business loans can be defined as money lent for a specified amount of time at a specific interest rate to a specific person or people that operate a business or plan to operate a business. This definition is very broad, but so are the various types of loans available to business people. Deciding on which type of business loan that you and your company will benefit from the most is very important. Often times, a start-up business or someone that has never owned a business will find themselves more or less applying for a “personal” loan. This can be a very risky endeavor, mixing business loans with personal loans, however, often times it is the only available means for first time business owners.

One of the first things personal business owners need to do is establish business credit. Business credit can help you get a business only loan without using your personal credit. Establishing business credit can be done by:

1.) Opening up a business credit card account and paying it in full.

2.) Buying equipment and supplies from companies that will report good standing to the business credit bureaus.

3.) Having a good business plan with potential earnings, letters of intent, and any type of customer contracts already laid out.

All of these types of endeavors can help in receiving a business loan. Often times, financial institutions require in-depth business plans, be prepared to spend days working on just the certification paperwork prior to applying for a business loan. A business only loan can be obtained in the business name without use of personal credit as long as the business can justify the loan amount and the ability to pay it back.

There are several different types of business loans available, ranging from those secured with collateral, non-secure loans, which are based upon the credit worthiness of the applicant, and even government loans for small business ventures, women and minorities. Government loans are those loans secured by the government; in most instances these loans are available when the business or owner can prove that the community will prosper based upon the business at hand. For the most part, government loans are based upon personal credit.

The basis for which you may need or require a business loan may vary. Some of the most common business loans available to business owners are:

-Acquisitions or a loan to acquire an existing business

-Inventory loans

-Account Receivable Loans

-Working Capital Loans which converts a companies assets into working capital

-Equipment Leasing

-Commercial Property loans

-Warehouse financing

-International business loans

-Franchise loans

One of the most important tools when deciding on what type of business loan your company needs is research. Researching the different types of loans available to you and your company can save you money. First, look into the different type of business loans available to you in your state. Many states have government loans available; some even offer grants, which is money available for specific purposes that do not require repayment. Research the different type of Federal loans available. You can do this at the following website: www.sba.gov. Call your local bank and investment companies regarding the business loans they have available for you. Many times, business loans are not that hard to acquire. With research and a good business plan, your dreams may come true.



Fri, 29 August 2008
Your Business Plan For A Sure Loan
First, A Well-Designed Business Plan

Get your computer and begin to design your business plan, even if you are just making baby food at home for your neighbors and friends. You want to make progress, do not you? But be realistic. Do not expect to be given an enormous sum if you can not assure your lender a determined resource of cash to pay him back.

What It Must Contain

First of all, your assets. All the materials you posses, that are strictly affected to the business. Then, the know-how, which means the technology you use, that goes towards a good, reliable product. Another important asset is your fixed customers. They will mean the minimum amount of business you are currently making.

Next, comes how you can improve your business and how you will be able to develop it with a loan of so much. Provide as much detail as possible, a list of materials and services you will acquire with the loan and how they will affect your progress.

And Now, Talk About Money

Not the money of your loan. Nope. The cash flow is important now. How much you gain with your current profit margin, and how much more you could earn by reducing costs. If you buy greater quantities of stock, the price is much lower, meaning more earnings for you.

The Future Is Yours To See

One important detail is a projection of how your business will develop in the course of the following three to five years. You will have to investigate a little and find out how similar businesses have grown in the same term and make an average. But watch out for exaggerations. They are very evident and they might get you in trouble if you are not able to answer clue questions.

And What About Risks?

Risks are also part of the business. Save a short paragraph in your plan for risks. A good contingency plan will make the banker overlook the risk itself and evaluate you as a good problem-solver.

A Good Image

You own a business, however small, it is a business. You are printing a business plan to present to your banker or lending agency. But… are you giving the image of a true businessman?

An important factor in getting the lender to stand on your side is a good image. Well dressed, wearing a pressed suit and maybe an attaché where you have your papers and the copies of the business plan, neatly tucked away in their respective folders.

And Finally, The Loan

Again, be prepared. Know as much as possible about the current rates and conditions. Find out about the experience of people you know, so as to have a good idea of what to expect, and be confident. This is a very important factor that could mean the difference between getting the loan and not getting it.

Confidence is more important than you might think. It gives you an air of knowledge of what you are doing, what you are saying and where you heading for. Someone said once that “knowledge is like money in the bank” or rather, “like a loan in the bank”.

By: Devora Witts



Thu, 11 September 2008
Low Rate Business Loans: Cost-effective Funds For Your Business
The word “business” can be translated as a huge amount of capital. Whether you are starting one or expanding you current business, you need sufficient financial backing. Loans are feasible options but obviously, you would like them to be more affordable considering the kind of money that you would be applying for. In that case, you can seek a low rate business loan.

A low rate business loan is charged low rates of interest and is thus a low-cost way of funding your business. It can be used to finance any business- whether they are small, large or medium in scale. It can be applied for expanding your existing business- buying machinery, upgrading business, adding a new wing; it can be used to finance a new venture.

If you are thinking of applying for a low rate business loan right away, you should have a detailed layout of your plan- the estimated cost and the amount that you would need. You will also be required to produce documents which include:

* Proof of ownership

* Tax returns

* Financial statements

* Credit references

* Letters of reference

Low rate business loans can be borrowed for an amount up to £1000000. You can apply for such a hefty amount easily by providing collateral in the form of a high value asset like your real estate. The repayment term could last up to 30 years. But if you need a smaller amount or are unable to provide collateral, you can go for an unsecured low rate business loan. Here, the principal will be much less and the repayment period shortened to a maximum of 10 years. Your repayment capability and credit score will determine how much you can borrow under this option. On the other hand, the approval process will be much faster than the secured form.

Low rate business loans can be the perfect answer to any sort of financial shortage that is halting the smooth running of your business. They are provided by many lenders across the finance industry and you can compare their quotes to see if you find their rates and terms acceptable.

By: Michael T.Brian

Article Directory: http://www.articledashboard.com



Sun, 21 September 2008
Business Loans: Managing interest rate risks
I want the protection in the current low interest rate environment but I don’t want to be locked in for too long a period" ... a commonly heard requirement from business borrowers.

Borrowers can find themselves affected by interest rate changes.

Choosing either a fixed or variable interest rate may not provide the perfect solution for your interest rate needs.

Whilst fixed interest rate borrowers cannot benefit from any interest rate falls, variable interest rate borrowers may find that they are exposed to the risk of rising interest rates.

Successful businesses are continually required to meet increasing demands requiring greater sophistication.

Many institutions are able to respond to sensitivities to interest rate movements with customised interest rate risk management strategies to suit your business.

To find the strategy that best fits your requirements you should consider whether, overall, you need the flexibility of a variable interest rate, or the certainty of a fixed interest rate.

There are many innovative interest rate, risk management products in the Australian market designed for the current interest rate environment offering businesses:

flexibility.

the ability to minimise interest rate risk.

interest rate protection with the ability to benefit from lower interest rates.

Larger institutions offer Business Bankers and Risk Management Specialists as part of their service to help identify financial products which may help reduce interest rate risk and uncertainties facing business borrowers.

For example Flexible Maturity Fixed Rate Bills provide a known fixed rate for a total term, say, five years.

The first three year period is fixed plus an optional two year extension period.

Another example is a variation of the standard Capped Rate Bill, where the customer pays a premium either up-front or in arrears and gives the borrower a known maximum cost of borrowing.

For example if the borrower has a set view on interest rates, or would like to take out some "disaster insurance", the Pay-If-Used Capped Rate Bill provides maximum known interest rate protection from interest rate rises for up to five years – and the business pays for it only if the cap rate is reached.

Try to identify peaks and troughs in cashflows to forecast business needs.

The institution may be able to provide specialised borrowing alternatives in periods where seasonal requirements fluctuate.

A new borrowing strategy may help you to conserve much-needed cash during the post-Christmas period and use credit funds (and not over-draft) to make loan repayments during the month.

Source: Financial Services Online

Mon, 29 September 2008
Secured Business Loans: Finance Your Business With Security
Capital is considered as a pre requisite for all your business ventures. Whether you want to purchase plant and machinery, takeover an organization, the registration process, buy buildings and offices, raise money to pay off debts, updating technology, recruiting more people, expand your business or other business expenses, a secured business loan extends you a golden opportunity to fulfill all your needs.

For a secured business loan, you need to pledge your property or assets as collateral. Both new companies that aspire to establish themselves in the market and the older companies that are undergoing a transformation may benefit from this type of loan. Finance is the first and foremost priority of any business. Business can prove to be real profitable, if you have an effective and efficient management and planning.

A secured business loan is availed for businesses from all sectors. The cost of the operations of a business can be easily acquired through a secured business loan. Secured business loans provide the borrower with an amount ranging from £ 50,000 and £ 1,000,000 for a repayment term of 5 to 25 years.

Such loans offer its borrowers with the windfall of benefits. The main benefit of a secured business loan is its flexibility. Flexible secured business loans make it more easy and convenient for the borrowers to repay. This feature of flexibility also considers the high risk factor involved in a business and aims to reduce the risk ratio. Secured business loans offer you a choice to opt for either the fixed interest rate or the variable interest rate. These loans include lower interest rate and flexible repayment period. Other advantages of these loans are capital repayment holidays and deferment, long repayment duration, freedom to use the loan amount for any purpose without any restriction and highly competitive rates.

By: Simon Peyton



Mon, 06 October 2008
Low Rate Business Loans: Offers The Best Of Finances To Serve Business Needs
Whenever you consider starting a new business or wanting to expand the existing one, you need to have sufficient finances available by your side. It is the finance which plays a pivotal role in fulfilling your business interests. Since the amount is required for commercial purposes, you may need a large amount. If suppose, you are not having the money at the moment, what is the best viable option available to you? In that case, you can opt for low rate business loans.

These loans are categorized in to secured and unsecured form, so that you can derive the required finances on the basis of your prevailing circumstances. Secured forms of this loan are available only to those who can afford to place any valuable asset as collateral. The loan amount approved is based on equity value of collateral and has a longer repayment period.

On the other contrary, unsecured form of the loans are just the opposites. Those who do not consider it appropriate to place any collateral can go for this loan without any fear of risking their properties. Tenants and non homeowners too can apply for this loan as they have nothing to offer as collateral. The amount obtained is preferable to meet smaller needs and has a short term repayment period. However interest rates charged will be considerably higher than secured option.

Borrowers with a history of poor can also make a fresh start of their business with the support of these loans. But a lot depends on the repaying capability of the borrower. Moreover, the amount is advanced at a considerably high rate of interest.

To know and understand more about the loans, you can use services of the online. Applying online will help you to get the best out of these loans. It is fast and you can apply for it any point of time from any place.

Low rate business loans not merely provide you the finances to start or expand your business. It is an opportunity, which can help your business reach newer heights. Prior to that of availing the loans, you must prepare a lay out plan, so as to convince the lender about the feasibility of your business. If the details convince the lender, then you may get access to the best low rate deal.

By: Michael T.Brian

Thu, 16 October 2008
The Business Purchase and Business Refinance Loan
The Business Purchase Loan assists you in the purchase of a leasehold or franchise business with goodwill that is secured by business and/or property assets. Product features include:

Loan amounts can be secured to a maximum of up to 50% of the value or purchase price of the business whichever is the lower.

Loan amounts can be 100% of the purchase price of a business with additional real estate or other acceptable security.

Terms up to 30 years for secured property loans to 80% of loan to valuation ratio.

The benefits of Business Loans are:

Assets other than the family home can be used to borrow against.

All interest payments are fully tax deductible (refer to your tax accountant for specific information)

Some businesses requiring loans include:

Child Care Centre's

Licensed Grocery

Hotels/Motels

Newsagencies

Restaurants / cafes

Mixed Business

Tattslotto Agencies

Post Office Agencies

Nursing and Special Accommodation Homes

Manufacturing and Retail Business's

Source: Chocolate Money



Thu, 23 October 2008
Unsecured Small Business Loans - Free Significant Guide For Unsecured Loans
Besides choosing a company that has a good business reputation chooses one which is going to offer you the best deal. This does not always mean the lowest interest rate. Other things to consider are the time period for repayment, penalties if you pay the loan off to quickly, what are the late fees, is the interest rate variable or fixed, and what is the APR? Unsecured loans usually let an individual borrow less than a secured loan. The interest rate is usually higher for an unsecured loan.

Some unfortunate credit problems in the past may have lead to bad credit rating, no need to worry any longer. Lenders now understand that a person may get a bad credit even without his or her own mistake. Thus, keeping this in mind lender now lend money to people who have a bad credit problem.

As stated at the beginning of this article, unsecured loans are sometimes the only choice some people have in order to get finance. Tenants and non-homeowners can't offer an asset as collateral and thus, have no other choice but to apply for an unsecured loan.

Unlike many people out there, don't forget that even if this article related to unsecured small business loans doesn't cover all the basics you wanted, you can always take a look at any of the search engines like google.com or search yahoo.com for more unsecured small business loans related information.

To get the lowest rates, you want to borrow as little as possible to consolidate your debts. Therefore, start by totaling up your high interest debt. That figure is what you want to apply for. Besides your loan amount, also consider what terms you want. Many personal loans are for five years, but you can extend them for smaller monthly payments.

Again, qualifying for an unsecured debt consolidation loan is tricky. Some lenders do not offer these types of loans. Furthermore, the lenders that do offer unsecured debt consolidation loans have strict lending requirements. Unfortunately, it's impossible to get approved for an unsecured loan with poor credit. In this case, you may have to explore other alternatives.

A peculiarity of debt consolidation loans is that the loan provider appoints experts to work along with the loan provider to eliminate debts. The facility extends to unsecured debt consolidation loans as well. Thus, borrowers who feared that they would have to counter debts on their own can heave a sigh of relief.

Source:Deepak Kulkarni



Sat, 08 November 2008
Business Loans: Paves Your To Success And Prosperity
Starting an own business has several advantages and none can deny that. You too can realize the benefits of being independent with an independent business where you will not have to listen to others. With your own decisions and investments you can make your business run pretty well. For starting your own business and for all kinds of bigger or smaller financial needs the business loans are always there to help you out.

A small or a large business venture, whatever your dream or desire is, with the help of these loans you can make anything come true. Based on your conditions and varied needs such loans are being divided in to two forms. These are secured and unsecured loans. Thus depending on the need for cash you can opt to go for any of these loans. The beneficiary factor in the secured loans is that these are ideal for establishing a bigger business empire. The repayment term in it is longer and the money offered is quite higher. For applying for these loans and to pay less interest rate you will only need to pledge your valuable property as collateral.

However, such conditions are not found in the unsecured loans. Anyone, even if you do not have your own home can approach these loans. With the amount offered you can definitely dream of building up a better business career. However for avoiding higher interest rates the online loans or other loans are there. Thus, by any means you will be relieved from paying higher interest rates. The online lenders too are quite supportive in providing their helping hands. You will just need to fill simple online form for applying in these loans.

The business loans thus have been able to change the business scenario to a great extent. Anyone can now without any tension think of being self dependant rather than working under others. Right from the buying of the business site to buying raw materials and machines, hiring man power and constructing office, all are being supported by these loans.

Source:By Expert Author: Charly Groom



Wed, 19 November 2008
The Formula To Building Wealth
Every one of us dreams of becoming rich. Who doesn’t want to? Having all the nice things in the world is all we wanted. Trips abroad, great clothes, nice car and nice house are just the things money can buy. You don’t have to worry about everyday expenses and you’ll be living a very comfortable life. Being wealthy also connotes power. That’s why, some people are so obsessed with money. Money is really the root of all evil- it can cause tragedy and ruin the lives of other people. But let’s not dwell on the negative side of wealth. More so, richness can still do well among men.

Helping the poor and needy people is just one classic example. Having wealth is a blessing to be shared to others. What’s the secret formula to richness? It’s very simple. If you know the basic equation in accounting, you’ll probably hit the right answer. If don’t even have a slightest idea, then I’ll tell you. In accounting, the basic formula is assets= liabilities + equity. This equation can be used in managing your finances. Of course, you have to analyze the equation. Let’s do it one by one. Your Net Worth will be solved by subtracting liabilities from assets. If you want to increase your equity or net worth, you have the option of either lowering your liabilities or increasing your assets.

You should work on your assets in order to increase your worth. It’s better to have more resources rather than liabilities. Assets can be in various forms. It is very advisable for you to invest on wealth-creating assets. Properties like land, house, savings account, funds and other investments are examples. These properties mentioned appreciate in value in the long-run. When you acquire land, benefits will surely come your way. You can either sell it in a higher price or better yet lease it. In lease, you’ll be receiving monthly revenues and you can acquire another property from the income. If you have an “eye” for stocks, then you better learn the ins and outs in the stock market.

On trading stocks, you’ll get richer instantly if you know how to play in the market. Investing in the right stocks is an advantage. The risk there is high but the returns are much higher too. If you can’t handle your stock securities, go to a stock broker and let them handle your stocks. You have to pay them their brokers’ fee though. Other assets can also be found in the vicinity of your home. Appliances and the latest gadgets that you possess are also assets. But in this case, these belongings are depreciable. Automobiles also belong in this category.

They easily depreciate in value especially if there are latest models in the market every now and then. For example, the value of the television that you acquired 1 year ago will not be the same today. It’s OK to purchase appliances and gadgets for they are now a necessity in every home. It can make your life easier to manage anyway. With regard to liabilities, as much as possible limit your credit. If you have a credit card, just use it for emergencies. You don’t need to buy unnecessary things just because you like them. In case you avail of a loan, choose a lending company that offers the lowest rate.

And always remember that you have an obligation to pay for the monthly dues. As much as possible, make a budget for you to follow. Don’t borrow money if you don’t need it anyway. Lower credit means no worry on your part. It will increase your net worth too. If your mission in life is to be affluent, just remember the basic equation. Accumulating wealthwill just revolve around the equation. Put it in your heart and you’ll never go wrong.

Source:Financezine.com

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