What Are Asset-Based Loans?

Asset-based loans are generally offered by finance companies. They are provided on a revolving credit basis and secured against the assets of a company. Usually, accounts receivable and inventory are taken as collateral.

These types of loans are perfect for companies that are expanding rapidly or are undercapitalized. They can also be utilized for financing acquisitions. They work only in those cases where the company has a record of being able to turn over its inventory a number of times in a year and where the accounts receivable is proven.

Asset-based finance is offered by a huge number of funding companies as well as banks. However, the market is not so wide for small businesses who are looking for loans of $500,000 or lower. The majority of lenders prefer sanctioning loans of higher value as the cost of monitoring the loaned amount is the same, regardless of its value.

Asset-based funding is more expensive as compared to bank loans since asset-based lenders incur a higher expenditure than bankers. However, the pricing among lenders is fairly competitive. For a small business, asset-based borrowing may prove to be unaffordable as the rate of interest could be anything between 12 and 28 per cent.

It is simple to get an asset-based loan if your company has a good financial record, effective reporting systems, stable inventory and customers who are known to honor their commitments. Without these factors in place, it may be difficult trying to get this kind of finance.

Asset-based financing is however not restricted to just finance companies. Even suppliers can be considered a source of funds. If your sales cycle is longer than your accounts payable cycle, you may think of asking your suppliers to extend their payment terms. The other option is to simply pay your suppliers after 90 days. In many cases you will find you get three months of funding in this manner without actually paying any interest. You will be able to gauge if your strategy is effective if your suppliers do not stop shipments to you once your first invoice is older than 2 months. Another way you can make payments to your suppliers and get credit is to pay your suppliers after 35 days for a few months. If you see that your suppliers are not objecting, try stretching this to 44 days.

There is a high likelihood of this working since most accounts receivable collection systems point out those payments that have been pending for more than 45 days.… Read More

How to Make Money – Web 2.0 is the Future

Any online entrepreneur who has been having a difficult time determining how to make money should take a close look at Web 2.0. I fully understand that just seeing the term “Web 2.0” may create anxiety due to the fact that it signifies something new, something cutting edge. Without the proper understanding, article marketing, social bookmarking, video marketing, podcasting, or whatever it may be might confuse and frustrate individuals to the point that they are unwilling to recognize that these tools can do for them. As a result, I am going to attempt to explain just a few of the benefits of Web 2.0 without overwhelming you.

The following will discuss three of the most valuable aspects of Web 2.0 to those who utilize as an online marketing tool. As an online marketer, you want to get your message to a large yet targeted audience as quickly as possible. The following will provide you with that stage.

1. Providing Tags for Compositions

A “tag” is simply a keyword which is attached to a composition. Therefore, if you create a video on a particular topic, you would tag the video with keywords relevant to the topic of discussion so that others can find it by searching for those keywords. As you may have guessed, other compositions can be tagged as well, such as blog posts and articles.

2. Acting in Unison

I am sure that you have read an article before which has received a large number of “Diggs” or which has been “Buzzed Up”. A large part of the reason why you came across such an article is because others have propped it up and made it relevant. Once enough people click on the link, and recommend that others also read the article, it gains credibility with the search engines, and is often a feature story. Just imagine if this happened to one of your articles. Were this to happen, the exposure which your internet business would receive would go through the roof. The good news is that even if your article does gain such attention, you can still benefit from one which does. Simply provide a compelling comment on the article, and add your link.

3. The Syndication of Your Compositions

Perhaps you have heard of article directories. These article directories are composed of a myriad of categories, often populated by thousands of articles. Such directories enable a website owner to select articles which are relevant to their website, and publish them. This is what is known as syndication. Syndication is a great think for the online marketer. The more articles which you have on other webmaster’s websites with a link pointing back to your website, the more exposure for your online business. Conversely, if you already have a readership, and need frequently updated content on your website or blog, syndication is your answer.

Web 2.0 is gaining more popularity with more and more individuals realizing its importance to their discovering how to make money on the … Read More

Personal Finance Tips – Help With Debt Relief

Grace period, rescheduling and recalculation of credit are compromise solutions that those who were left without incomes can defer payment of rates from banks. This opportunity is, however, only temporary. Grace period can reach up to half a year, within which it is suspended the payment of monthly rates.

Those who received such loans had a chance to recover from a financial standpoint, and banks do not assume any additional risk – unpaid interest and rates within the grace period are being related to the other rates, from the moment their pay resume.

Regardless of the loan: personal loan with no mortgage (for a term not exceeding 10 years), personal loan with mortgage (maximum 25 years) or housing loan (for a term of up to 30 years), banks have availability to reschedule and restructure loans to clients with problems that come from time to discuss the debt situation.

Rescheduling is to change the due and / or the fees of one or more credit rates in balance by exceeding the initial period of credit and / or framing credit in another category, as appropriate (medium, long), but never exceeding the maximum loan period for that product. This method is characterized, usually, by the following main elements:

– perception, possibly of a restructuring commission at the date of signing the additional act;

-Amendment of the credit repayment rates of initial schedule;

– In case of outstanding amounts, they may be included in the loan balance, leading to its increase;

-The possibility of granting a grace period, usually up to 12 months, when the customer will pay only the interest;

In the event that rescheduling or credit restructuration is not approved, the customer in question would have some flaws. The first would involve another family member (who has an income) request a loan to pay the debt in question. The second solution would be to change the lending bank that is, a new bank to a more permissive loan. But the latter solution has become almost impossible lately. Currently, banks do not lend people who have already taken credit.

If you don’t want to end in these situations it is better to put your priorities in order! It is clear that if you get in the situation of having more debt or do not know your priorities or their order is inverted, so it’s time to do put order in priorities.

Think they are pressing charges every month, do a top three priorities, do not forget the rent, costs for home (utility bills) as well as food and transportation. They must be essentials. If you have to pay rates at the bank, whether for home or personal loan, do not let them accumulate, because you don’t play with the bank! Whatever it is, the bank rate should be priority number 1!… Read More

Real Estate – Is it Time to Buy Yet?

Depending on where you are in America right now, real estate might look like a very tempting investment. Across the board, housing prices have dropped by 50% or more, and interest rates have never been lower in our lifetime. What could possibly be bad about taking some money and putting it back in the housing market right now?

Unfortunately, quite a few things can be bad. Because in this market, in this economy, the money you’ll be spending is only part of the equation. The other, more difficult part is how you are going to get that money back.

First of all, just because the price of a property has dropped by half doesn’t mean that property is undervalued, and that all that equity is going to come back sometime in the near future. Remember those real estate prices that kept climbing and climbing? We just got out of that bubble, and some experts feel the recent price drops were more along the lines of a correction. And the fact is, whether or not prices will eventually go up (and I do believe they will), and regardless of how high they will go, real estate is definitely not the place to make your money back in a short period of time.

The reason? Maybe you can buy a property at an attractive price, with attractive terms. But will you be able to sell that same property for a price you consider equally attractive?

Is the area attractive to actually live in, or just to buy a property to sell in? Because the wrong area isn’t going to attract the right buyers. And by “right buyers,” I mean buyers who will be able to qualify for a loan.

Actually, I’m getting ahead of myself here. First, you have to qualify for a loan – something that is much more difficult now than it was during the heyday of the real estate bubble. And if you qualify? Again, your buyer also has to qualify, adding another hurdle for you to overcome. But for the sake of argument, let’s say your buyer qualifies with flying colors.

Think you’re out of the woods? Think again. Now the property itself will need to qualify – and that means appraising at a high enough price to justify the selling  loan.

One casualty of the financial crisis is that the appraisal situation is just crazy. Maybe it’s because of the massive price drops and fear that we haven’t reached bottom yet – but whatever the reason, it’s hard for us to make any sense of it. We’ve heard stories from those who have tried to refinance property and had their appraisal come in at less than what they owe. Since appraisers have to use comps of sales within the past 12 months, they can only deal with “post-bubble” property values.

Of course, with prices and interest rates so low, property is hard to turn away from. So my advice is be careful, be very careful. … Read More

Work at Home – Becoming Well Known by Your Niche Market

If you work at home, you of course want to be the person who people want to work with. Also, you want to be the renowned expert in your field. I must tell you that these are good aspirations. However, they do not come automatically. In order to achieve these goals, it is important that you start with a solid promotional and publicity strategy. Let your niche market know who you are, and what you can do for them. The truth is that people relish at the opportunity to work with someone who they are feel as though they know and can trust. While it is true that we all want to make money online while we work at home, if your primary focus is showing others how to make money, they will in turn make money for you. This should be the focus of your business model.

Now assuming that the objective of your business model is to make sure that everyone within your niche market knows about your business, why not introduce yourself? There are several ways that you can do this. For instance, article marketing is a favorite of mine. Not only are you able to make your niche aware of your existence, you also can prove to them that you know what you are talking about. Other ways to do this are by answering questions posted on niche forums and leaving your signature at the end. Plus, you can also leave comments on blogs, also placing your signature at the end of your comment. The most important fact is that you are showing value to others within your niche market.

Furthermore, it is important that you treat everyone with whom you make contact in your business with the utmost respect. You never know who your are dealing with, and word travels quickly online. Doing this will lead to your establishing a positive reputation as a reliable business entity. The more positive the experience of a customer, the more people they will tell. The more negative the experience of a customer, the more people they will tell. Do not ever underestimate the viral power of the internet.

Also keep in mind that have to let your customers and potential customers see as much as possible of what you are offering to them before they can make a decision to purchase. However, a word of caution. The goal here is not to tell people how great your offer is. No one wants to hear that. Rather, those in your niche market want to know what they will get out of taking advantage of your offer. For example, if you are selling a weight loss product, people do not want to know of the ingredients. Rather, people want to know what results they are going to see. This is an area where verifiable third party testimonials come in very handy.

Now that you know what your potential customers need from you from a communication standpoint, it is … Read More