Financial Consultants

Archive for March, 2009

A car has become very important for us nowadays. It has come up to be the most important and comfortable mode of commuting for the common citizen. Corresponding to the situation, buying a car has also become very easy now. With cheap car finance, a new or a used car can be bought without much burden to the car buyer.

Cheap Car Finance is available to the borrower to buy a car that may be new or old. It totally depends on the borrower as to which make, model or brand of car he wants to buy for himself. In case he wants to buy a used car, he should make sure that it should not be more than 5 years old.

Cheap car finance can be availed by the borrower in two forms depending upon his suitability. The first way is through secured cheap car finance. Through this mode, the borrower has to pledge an asset, usually which is the car itself as collateral with the lender. This asset will act as a security for the cheap car finance and due to this, a lower rate of interest can be acquired from the lender as he is sure of the retrieval of his money.

However if the borrower does not want to pledge his car or any other asset for the cheap car finance, he can take up the unsecured form of the finance. He will not be required to pledge any collateral and his assets are safe. But to compensate for the risk factor involved, he is charged a higher rate of interest from the lender. This rate can be lowered by proper comparison of loan deals offered. A term of 5-7 years is available for repayment of cheap car finance.

Cheap car finance is available online through numerous lenders and companies who have made their dealings online. Due to the stiff competition, the borrower can choose from a variety of deals that are offered to him and avail a lower rate of interest.

So what are you waiting for? Grab a cheap car finance deal and plug the key to your freedom. Hit the roads with cheap car finance.

There is a reason why accounts receivable financing is a four thousand year old financing technique: it works. Accounts receivable financing, factoring, and asset based financing all mean the same thing as related to asset based lending- invoices are sold or pledged to a third party, usually a commercial finance company (sometimes a bank) to accelerate cash flow.

In simple terms, the process follows these steps. A business sells and delivers a product or service to another business. The customer receives an invoice. The business requests funding from the financing entity and a percentage of the invoice (usually 80% to 90%) is transferred to the business by the financing entity. The customer pays the invoice directly to the financing entity. The agreed upon fees are deducted and the remainder is rebated to the business by the financing entity.

How does the customer know to pay the financing entity instead of the business they are receiving goods or services from? The legal term is called “notification”. The financing entity informs the customer in writing of the financing agreement and the customer must agree in writing to this arrangement. In general, if the customer refuses to agree in writing to pay the lender instead of the business providing the goods or services, the financing entity will decline to advance funds.

Why? The main security for the financing entity to be repaid is the creditworthiness of the customer paying the invoice. Before funds are advanced to the business there is a second step called “verification”. The finance entity verifies with the customer that the goods have been received or the services were performed satisfactorily. There being no dispute, it is reasonable for the financing entity to assume that the invoice will be paid; therefore funds are advanced. This is a general view of how the accounts receivable financing process works.

Non-notification accounts receivable financing is a type of confidential factoring where the customers are not notified of the business’ financing arrangement with the financing entity. One typical situation involves a business that sells inexpensive items to thousands of customers; the cost of notification and verification is excessive compared to the risk of nonpayment by an individual customer. It simply may not make economic sense for the financing entity to have several employees contacting hundreds of customers for one financing customer’s transactions on a daily basis.

Non-notification factoring may require additional collateral requirements such as real estate; superior credit of the borrowing business may also be required with personal guarantees from the owners. It is more difficult to obtain non-notification factoring than the normal accounts receivable financing with notification and verification provisions.

Some businesses worry that if their customers learn that a commercial financing entity is factoring their receivables it may hurt their relationship with their customer; perhaps they may loose the customer’s business. What is this worry, why does it exist and is it justified?

The MSN Encarta Dictionary defines the word worry as:

“Worry

verb (past and past participle wor•ried, present participle wor•ry•ing, 3rd person present singular wor•ries)Definition: 1. transitive and intransitive verb be or make anxious: to feel anxious about something unpleasant that may have happened or may happen, or make somebody do this

2. transitive verb annoy somebody: to annoy somebody by making insistent demands or complaints

3. transitive verb try to bite animal: to try to wound or kill an animal by biting it

a dog suspected of worrying sheep

4. transitive verb

Same as worry at

5. intransitive verb proceed despite problems: to proceed persistently despite problems or obstacles

6. transitive verb touch something repeatedly: to touch, move, or interfere with something repeatedly

Stop worrying that button or it’ll come off.

noun (plural wor•ries)Definition: 1. anxiousness: a troubled unsettled feeling

2. cause of anxiety: something that causes anxiety or concern

3. period of anxiety: a period spent feeling anxious or concerned…”

The opposite is:

”not to worry used to tell somebody that something is not important and need not be a cause of concern (informal)

Not to worry. We’ll do better next time.

no worries U.K. Australia New Zealand used to say that something is no trouble or is not worth mentioning (informal)”.

Query: if a business is financing their invoices with accounts receivable financing, is this an indication of financial strength or weakness? Query: from the point of view of the customer, if you are buying goods or services from a business that is factoring their receivables, should you be concerned? Query: is there one answer to these questions that fits all situations?

The answer is it’s a paradox. A paradox is a statement, proposition, or situation that seems to be absurd or contradictory, but in fact is or may be true.

Accounts receivable financing is both a sign of weakness with regard to cash flow and a sign of strength with respect to cash flow. It is a weakness because, prior to financing, funds are not available to provide cash flow to pay for materials, salaries, etc. and it is an indication of strength because, subsequent to funding cash is available to facilitate a business’ needs for cash to grow. It is a paradox. When properly structured as a financing tool for growth at a reasonable cost, it is a beneficial solution to cash flow shortages.

If your entire business depended on one supplier, and you were notified that your supplier was factoring their receivables, you might have a justifiable concern. If your only supplier went out of business, your business could be severely compromised. But this is also true whether or not the supplier is utilizing accounts receivable financing. It’s a paradox. This involves matters of perception, ego and character of the personalities in charge of the business and the supplier.

Every day, every month thousands of customers accept millions of dollars of goods and services in contracts that involve notification, verification and the factoring of receivables. For most customers, “notification” of accounts receivable financing is a non-issue: it is merely a change of the name or addresses of the payee on a check. This is a job for a person in the accounts payable department to make a minor clerical change. It is a mainstream business practice.

Bobby McFerrin wrote and performed a song called “Don’t Worry, Be Happy” for the movie “Cocktails” starring Tom Cruise. The song was a number one U.S. pop hit in 1988 and won the Grammy for Best Song of the Year. Here are the lyrics:

”Here is a little song I wrote

You might want to sing it note for note

Don’t worry be happy

In every life we have some trouble

When you worry you make it double

Don’t worry, be happy……

Ain’t got no place to lay your head

Somebody came and took your bed

Don’t worry, be happy

The land lord say your rent is late

He may have to litigate

Don’t worry, be happy

Look at me I am happy

Don’t worry, be happy

Here I give you my phone number

When you worry call me

I make you happy

Don’t worry, be happy

Ain’t got no cash, ain’t got no style

Ain’t got not girl to make you smile

But don’t worry be happy

Cause when you worry

Your face will frown

And that will bring everybody down

So don’t worry, be happy (now)…..

There is this little song I wrote

I hope you learn it note for note

Like good little children

Don’t worry, be happy

Listen to what I say

In you
r life expect some trouble

But when you worry

You make it double

Don’t worry, be happy……

Don’t worry don’t do it, be happy

Put a smile on your face

Don’t bring everybody down like this

Don’t worry, it will soon past

Whatever it is

Don’t worry, be happy”

The bottom line: “notification” should not be an issue in most situations involving accounts receivable financing; non-notification factoring is another option that is available for businesses concerned with confidentiality that meet minimum credit standards for asset based lending. Bobby McFerrin was right: “Don’t Worry, Be Happy”.

Copyright © 2007 Gregg Financial Services

www.greggfinancialservices.com

New York City is one of the most well-known cities in the world, and for good reason. Dubbed the “city that never sleeps,” New York is the prime example of a global metropolitan city. Just about everything that’s anything can be found here.

As most people know, New York City is the largest city in the US, with just over 8 million people in an area of 469 square miles. This earns it the honor of being the most densely populated city in North America, and has the highest mass transit usage in the country. It is a global center for fashion, finance, entertainment and culture, and has a good variety of galleries, museums and other artistic attractions. The United Nations is headquarted in New York City. Also well know are the stock exchanges; the NASDAQ and the New York Stock Exchange, which are among the most important in the world.

Also known as the “Big Apple,” New York is one of the most diverse cities in the world, with many attractions for people of varying interests. For instance, if you are a hip-hop enthusiast, you may want to visit the Bronx, which is recognized as its roots. Many of today’s hip-hop stars spent their childhoods here. By booking a New York hotel in the Bronx, you’ll get to see firsthand what your favorite artists had to go through.

Be sure to check out Broadway if you are into the performing arts. It’s 39 theatres feature the brightest and best of the performing arts. Plays like “Cats” and “The Phantom of the Opera” are well known for their extremely long runs on Broadway. If you’ve never experienced a Broadway play, put this on your itinerary when you visit New York City. Other arts centers are made up of the New York Philharmonic, the New York City Opera, the New York City Ballet and the Metropolitan Opera. One of the world famouse performing venues is Carnegie Hall.

If you are an intrepid shopper, a visit to the Madison and Fifth Avenues is an absolute must. Here, many high end stores are congregated to serve those who are financially able. For those who prefer more moderately-priced goods, Herald Square is a good choice. Collectors of all sorts can go to East Village, where rare items are traded regularly, and food lovers can do no wrong when they pay a visit to Union Square. If any of these things appeal to you, consider booking New York hotels near these popular locations.

Whether the purpose of your trip to New York City is business or pleasure, it is important that you find the best accommodations that you can find. There are many New York hotels, and as in all cities there is great variation in terms of their prices and quality. No matter what your budget, however, you can probably find a New York hotel that you can afford, and if you search intelligently, you don’t need to trade your comfort just for a few dollars of savings.