We are well aware, that banks rely on the fact that not all their depositors will wish to withdraw their cash at the same time, because if they did, the banks would not have the cash available to meet all the demand. Some people might wonder why the banks would not have enough money to pay every depositor out.
When a client places cash into his or hers account, the bank will invest it for themselves. They will credit your account with the sum you deposited with them, but the actual cash will have gone to earn more interest than you will get. The chances are you will leave the cash in the bank without taking it out, or taking out only a part of it. But if you did want to take it out, there is cash from other depositors which can be used to deal with it. Providing there is no situation where everybody wants their money out at once, the banks have nothing to worry about on that score. They make money with your money, and they pay you a bit as well, so you are happy.
This all works very well unless there is a time when people fail to meet their obligations, and do not keep up the payments on their loans. Banks expect the odd case here and there, when someone cannot pay because of a bad investment or sudden personal difficulties. When there is a situation due to certain economic problems which can cause trouble to thousands of people to meet regular promised repayments, the matter is serious because cash must keep coming for the banks to keep the show on the road. Without that expected cash, the machine can stop. Liquidity is the vital.
To understand it better, imagine that you need money and you get cash advances from a credit card which we will call A. When you reach the credit limit you will have to make a minimum payment which you have not available, so you decide to get cash from another credit card B, and when that is due to be repaid, you use credit card C and so on. There comes a time of course, when you run out of credit cards and you have to make repayments from somewhere. Unless you sell the car or an item of some value or obtain a loan from some good fairy, you are going to go under.
The banks have an easier task, inasmuch that they can turn to the central bank to borrow money to get them over their liquidity problem. Nobody wants to allow a run on a bank, since it can trigger off other stampedes. It is a bad idea to cause people to lose faith in the banking system as a whole. In other words, it is not prudent to allow banks to go to the wall, and help will invariably be found, unless there is absolutely no other way.
We are now reaching the point when shortage of money available to the banks spells out shortage of money available for them to lend out.
As a consequence for instance, the housing market gets slowed down. When the house prices suffer, it is largely because the borrowers cannot get the money to make a purchase and not because they do not wish to buy. And even if the prices go down further, they will still not buy, simply because they will still find it hard to get a mortgage in the present climate.
As usual, at the end of the day, people who have cash money will be able to snap up some real bargains and wait until conditions change and make their profit. The bargains will be available in America as well as here and in other parts of the world.
While banks make money from your money, they earn a little for you as well. They also provide a number of services without which, life would be hard. However, you must not belittle your role in all this, meaning that although you need them, they certainly need you!
Things were going right for a large number of people for quite a time when money was cheap and easy to find. Until such times reappear, it is the turn for the smaller number of people with ready cash at their disposal to step in soon.
These lucky people, will find terrific deals waiting in the offices of friendly and good realtors in USA, in the UK, on the Continent, as well as in other parts of the world. Based on realistic prices, a lot of the properties will be sold in the main to cash buyers able to get their foreign currency from the foreign currency exchange companies at very good rates, especially if they phone around for the best deal. Yes, cash is King.
Paul Dubsky is director of Foreign Currency Exchange & Transfers Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.
Article Source: http://EzineArticles.com/?expert=Paul_Dubsky
วันศุกร์ที่ 25 กรกฎาคม พ.ศ. 2551
Leveraged Recapitalizations - An Exit Vehicle During the Credit Crunch
A severe reduction in the number of merger and acquisition transactions due to the credit crunch has left many business owners wondering how they'll be able to successfully exit their businesses over the next few years.
In a matter of mere months, they've watched an extraordinary seller's market for privately owned "middle market" companies evaporate as the credit crunch has frozen many credit markets. Once lofty valuations have vanished leaving executives wondering how to gain liquidity at a reasonable valuation from an asset that often represents the majority of their net worth.
Business owners crafting their exit strategies find themselves with few choices: wait until the financial markets recover, accept a valuation significantly less than a year ago, or find another solution. There is another viable option left if a business has strong fundamentals - a leveraged recapitalization transaction which is often referred to in industry parlance as a "recap".
For many, waiting may not be a viable option and taking a lower valuation is not likely to be acceptable, a recap is something worth considering. In essence, a recap results in the restructuring of a company's balance sheet with the company taking on additional debt that is used to fund the repurchase of shares from the owner or a large dividend to the owner. The end result being a more leveraged company.
Typically, a recap involves a private equity group as a sponsor, although often the transaction can be done directly with a mezzanine lender using quasi equity like debt that would be less expensive and dilutive.
In addition to providing most of the equity needed to complete the transaction, the sponsor arranges new senior bank debt and possibly mezzanine/subordinated debt. The result is that an owner's stock is exchanged for cash and a portion of the capital stock of the newly capitalized entity.
Business owners who want to retain an ownership interest will find that a recap can be very attractive as it provides the owner with the opportunity to receive another payoff in the future when the sponsor exits the investment. Proceeds from the recap and subsequent sale can often exceed the value obtained through an outright sale.
In addition to getting substantial liquidity, business owners continue to operate the business with considerable autonomy while gaining access to capital to support future growth. Today, many sponsors are accepting minority ownership positions.
So what kind of companies are investment firms seeking? They look for well established companies with consistent record of growth in sales and earnings, a significant market share or defensible market position, one that may serve a niche market, an experienced management team, and projected operating results that meet or exceed historical results.
It is important to note that having the owner remain as an operator as well as a partner provides investment firms with another level of comfort when entering into a transaction, which is especially important in times such as today when everyone has become very risk adverse.
If all goes well and the company continues to grow as projected, the owner's equity stake could be worth from 25 percent to 50 percent or more of the initial payment the owner received upon consummating the recap of the company when the investment firm exits the investment which is usually three to five years.
Of course, that assumes that stability will have returned to the financial markets. As we all know, it took the financial markets four or five years to recover from the savings and loan crisis of the early 1990s.
Leveraged recaps are not suitable for all companies. Ultimately, a sale to a strategic corporate buyer may be a best option for an owner especially if the owner is seeking to retire and no longer run the company.
With the unprecedented turmoil roiling virtually every sector of the financial markets and unlikely to end in the foreseeable future, a leveraged recap may be one of the few viable options owners have to exit sooner rather than later.
FRANZ VON BRADSKY is chairman of the August 7, 2008 Northwest Growth Financing Conference in Seattle, a director of the Seattle chapter of the Association for Corporate Growth and president of Green Tree Capital. Reach him at 707.251.0994 or email him at Green Tree Capital.
Article Source: http://EzineArticles.com/?expert=Franz_Von_Bradsky
In a matter of mere months, they've watched an extraordinary seller's market for privately owned "middle market" companies evaporate as the credit crunch has frozen many credit markets. Once lofty valuations have vanished leaving executives wondering how to gain liquidity at a reasonable valuation from an asset that often represents the majority of their net worth.
Business owners crafting their exit strategies find themselves with few choices: wait until the financial markets recover, accept a valuation significantly less than a year ago, or find another solution. There is another viable option left if a business has strong fundamentals - a leveraged recapitalization transaction which is often referred to in industry parlance as a "recap".
For many, waiting may not be a viable option and taking a lower valuation is not likely to be acceptable, a recap is something worth considering. In essence, a recap results in the restructuring of a company's balance sheet with the company taking on additional debt that is used to fund the repurchase of shares from the owner or a large dividend to the owner. The end result being a more leveraged company.
Typically, a recap involves a private equity group as a sponsor, although often the transaction can be done directly with a mezzanine lender using quasi equity like debt that would be less expensive and dilutive.
In addition to providing most of the equity needed to complete the transaction, the sponsor arranges new senior bank debt and possibly mezzanine/subordinated debt. The result is that an owner's stock is exchanged for cash and a portion of the capital stock of the newly capitalized entity.
Business owners who want to retain an ownership interest will find that a recap can be very attractive as it provides the owner with the opportunity to receive another payoff in the future when the sponsor exits the investment. Proceeds from the recap and subsequent sale can often exceed the value obtained through an outright sale.
In addition to getting substantial liquidity, business owners continue to operate the business with considerable autonomy while gaining access to capital to support future growth. Today, many sponsors are accepting minority ownership positions.
So what kind of companies are investment firms seeking? They look for well established companies with consistent record of growth in sales and earnings, a significant market share or defensible market position, one that may serve a niche market, an experienced management team, and projected operating results that meet or exceed historical results.
It is important to note that having the owner remain as an operator as well as a partner provides investment firms with another level of comfort when entering into a transaction, which is especially important in times such as today when everyone has become very risk adverse.
If all goes well and the company continues to grow as projected, the owner's equity stake could be worth from 25 percent to 50 percent or more of the initial payment the owner received upon consummating the recap of the company when the investment firm exits the investment which is usually three to five years.
Of course, that assumes that stability will have returned to the financial markets. As we all know, it took the financial markets four or five years to recover from the savings and loan crisis of the early 1990s.
Leveraged recaps are not suitable for all companies. Ultimately, a sale to a strategic corporate buyer may be a best option for an owner especially if the owner is seeking to retire and no longer run the company.
With the unprecedented turmoil roiling virtually every sector of the financial markets and unlikely to end in the foreseeable future, a leveraged recap may be one of the few viable options owners have to exit sooner rather than later.
FRANZ VON BRADSKY is chairman of the August 7, 2008 Northwest Growth Financing Conference in Seattle, a director of the Seattle chapter of the Association for Corporate Growth and president of Green Tree Capital. Reach him at 707.251.0994 or email him at Green Tree Capital.
Article Source: http://EzineArticles.com/?expert=Franz_Von_Bradsky
Rising CEO Pay - What Directors Should Do
Every American corporation mandates the pay structure of CEOs through its board of directors. The board of directors is responsible to dictate the CEO's pay based on his or her performance. More than 60 percent of all the American corporations have a CEO who serves as a chairman as well as a chief executive officer. So, the individual who chairs the board is largely left responsible for his or her own pay scale and bonuses.
Quite surprisingly, CEO's of major American companies' average more than $10 million in wages and bonus. This means the pay scale is 350 times more that what an average full-time American worker makes.
According to a study published by the National bureau of economic research "the increase in pay of senior executives and superstars in other fields has been a major source of rising inequality of wages in the United States. The reputation of American business, already scarred by corporate scandals, is continuing to get degenerated because of rising income inequality.
Due to expressive shareholders outrage and media attention, there has been a growing concern among board of directors to consider the issue seriously. The main reason for raising the CEO pay is the fear of losing an effectively performing CEO and to make sure this does not happen; compensation committees rely on surveys by consultants who prepare a report stating a higher CEO pay in similar companies disregarding the performance of a company. The survey shows that every CEO is placed in the upper quartile as a compensation committee of any company in America does not want to admit that its CEO is below the median.
To solve the problem of rising CEO pay, the board of directors should recognize the mistakes of the surveys conducted by consultants and should at a minimum insist on surveys that rely on company's performance. Moreover, compensation committees should focus on shareholders acceptance. Board of directors should also align the pay scale with what is earned by the top management of the company.
About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality financial tips like :
Payday Loan Tips, Research On Inflation And Collective Bargaining
Article Source: http://EzineArticles.com/?expert=Pauline_Go
Quite surprisingly, CEO's of major American companies' average more than $10 million in wages and bonus. This means the pay scale is 350 times more that what an average full-time American worker makes.
According to a study published by the National bureau of economic research "the increase in pay of senior executives and superstars in other fields has been a major source of rising inequality of wages in the United States. The reputation of American business, already scarred by corporate scandals, is continuing to get degenerated because of rising income inequality.
Due to expressive shareholders outrage and media attention, there has been a growing concern among board of directors to consider the issue seriously. The main reason for raising the CEO pay is the fear of losing an effectively performing CEO and to make sure this does not happen; compensation committees rely on surveys by consultants who prepare a report stating a higher CEO pay in similar companies disregarding the performance of a company. The survey shows that every CEO is placed in the upper quartile as a compensation committee of any company in America does not want to admit that its CEO is below the median.
To solve the problem of rising CEO pay, the board of directors should recognize the mistakes of the surveys conducted by consultants and should at a minimum insist on surveys that rely on company's performance. Moreover, compensation committees should focus on shareholders acceptance. Board of directors should also align the pay scale with what is earned by the top management of the company.
About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality financial tips like :
Payday Loan Tips, Research On Inflation And Collective Bargaining
Article Source: http://EzineArticles.com/?expert=Pauline_Go
วันเสาร์ที่ 12 กรกฎาคม พ.ศ. 2551
What Do the Letters IFA Mean?
They are probably the three most important letters for anyone dealing in the area of financial services and products, whether as a consumer or a fellow professional. The IFA - or Independent Financial Adviser, to give the acronym its full title - is probably the most central and key player in the market for financial products and services. Without the IFA, financial service providers would be at a loss to accurately and honestly promoting and selling their products; and without the IFA, the consumer would be at a loss when it comes to choosing between such a huge array of different financial services and products. The IFA is a kingpin in the relationship between financial services providers and their customers.
In case this gives the impression that the IFA is little more than a salesman for the providers, however, it should be emphasised that nothing could be further from the truth - the "independent" in IFA makes sure of that. Indeed, it is the impartiality and objectivity of the IFA that makes him or her the consumer's champion. There is no axe to grind, no commission to be earned from selling a particular brand of financial service - independence is at the very heart of the definition of an IFA.
Equally important, of course, is the knowledge possessed by the IFA on the very wide range of financial services and products available in the market these days. Anyone with an interest in putting their hard-earned cash to the best and most profitable use will need to know a lot about everything from savings and investments, pensions, insurance and every other aspect of finance. It's a knowledge that few people can leave to chance or an amateur's approach to the financial press - the only safe approach is to engage the services of an IFA. The latter's qualifications in financial management ensure that he or she is likely to know all that there is to know, whilst the regulation of the IFA's role by the Financial Services Authority also means that the knowledge will be constantly updated with an understanding of the all the latest products, laws and regulations relating to financial services provision.
Completing the trio of all-important words is the IFA as Adviser. The advisory role is also key to understanding the special relationship between the IFA and his client. Whilst there might be many different ways of giving advice in the broadest sense of the term, the IFA has a very particular duty when it comes to this critical role. The advice must be independent, as we have seen; it must draw on the extensive knowledge and constantly updated familiarity with the financial services market; but it must also result in the provision of advice that is solely in the client's best interests.
This involves a close understanding of the client's particular, personal circumstances and the financial objectives that the client has in mind. In this respect, the IFA is very much a personal adviser, who needs to tailor his advice to each client individually and for whom there is no "one size fits all" solution.
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, and mortgage life cover.
Article Source: http://EzineArticles.com/?expert=Sean_Horton
In case this gives the impression that the IFA is little more than a salesman for the providers, however, it should be emphasised that nothing could be further from the truth - the "independent" in IFA makes sure of that. Indeed, it is the impartiality and objectivity of the IFA that makes him or her the consumer's champion. There is no axe to grind, no commission to be earned from selling a particular brand of financial service - independence is at the very heart of the definition of an IFA.
Equally important, of course, is the knowledge possessed by the IFA on the very wide range of financial services and products available in the market these days. Anyone with an interest in putting their hard-earned cash to the best and most profitable use will need to know a lot about everything from savings and investments, pensions, insurance and every other aspect of finance. It's a knowledge that few people can leave to chance or an amateur's approach to the financial press - the only safe approach is to engage the services of an IFA. The latter's qualifications in financial management ensure that he or she is likely to know all that there is to know, whilst the regulation of the IFA's role by the Financial Services Authority also means that the knowledge will be constantly updated with an understanding of the all the latest products, laws and regulations relating to financial services provision.
Completing the trio of all-important words is the IFA as Adviser. The advisory role is also key to understanding the special relationship between the IFA and his client. Whilst there might be many different ways of giving advice in the broadest sense of the term, the IFA has a very particular duty when it comes to this critical role. The advice must be independent, as we have seen; it must draw on the extensive knowledge and constantly updated familiarity with the financial services market; but it must also result in the provision of advice that is solely in the client's best interests.
This involves a close understanding of the client's particular, personal circumstances and the financial objectives that the client has in mind. In this respect, the IFA is very much a personal adviser, who needs to tailor his advice to each client individually and for whom there is no "one size fits all" solution.
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, and mortgage life cover.
Article Source: http://EzineArticles.com/?expert=Sean_Horton
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Corporate Financial Advice For Your Business Too
There is probably a tendency to think of the Independent Financial Adviser offering help and advice only in the area of personal finances. But the role is not restricted just to the individual. Increasingly, the adviser is being called in for corporate financial advice to assist small and medium-sized businesses to achieve optimum commercial success.
Critical business areas
There are a number of key areas in which businesses can draw on the financial expertise and knowledge of the independent financial adviser. Many of these will be familiar to the individual who has benefited from such advice, which applies just as critically to the financial health and commercial success of a business. Depending on the nature of your particular business, the possibilities for the injection of sound financial advice are almost endless, but just some of the key areas might be:
- Investment advice - investment opportunities for small businesses are as boundless as they are for the individual and the wrong investment decisions can prove even more costly;
- Pension planning - tapping into the financial adviser's wealth of knowledge on pensions matters could result in your business paying less tax and, therefore, instantly improving its trading position and bottom-line profits. What is more, corporate pension planning can lead to improved benefits packages for your employees, thus raising motivation and helping with staff retention and recruitment;
- Health insurance - similarly, a company health scheme is likely to be a highly-prized feature of your employees' benefits package. Not only will it provide security and peace of mind for your employees themselves, but also help you to manage better their occasional sickness and absence;
- Keyman insurance - if yours is like the majority of small businesses, you could probably easily identify one or more absolutely key players whose contribution to your commercial success is critical. It might be anyone from the director upon whose financial backing the company relies to the salesman whose seemingly boundless energy keeps your order books full. Whoever these key players are, you could draw on corporate financial advice to devise schemes for insuring against the adverse impact on the business should they be struck by a serious illness or even die;
- Tax issues - businesses have even more reason to minimise their tax liabilities than individuals. With sound, well-informed and impartial corporate financial advice on a whole range of tax issues, you could achieve significant savings for your business and immediately improve its competitive standing;
- Insurances - some business insurances will be legally required for your company and others offer essential protection when things go wrong. But are you under-insured, and so exposed to unreasonable risks, or over-insured, and paying too high a price for your business insurances? Corporate financial advice can help you restore the appropriate level of balance;
- Commercial finance - in the current climate of economic uncertainty, commercial finances need to be especially robust. Most businesses could benefit from at least a review - and in cases a complete overhaul - of their current borrowing. Corporate financial advice will help ensure that all your business finances are in the best possible state to weather the coming trials of the general economy.
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of corporate financial advice, protection, and life cover.
Article Source: http://EzineArticles.com/?expert=Sean_Horton
Critical business areas
There are a number of key areas in which businesses can draw on the financial expertise and knowledge of the independent financial adviser. Many of these will be familiar to the individual who has benefited from such advice, which applies just as critically to the financial health and commercial success of a business. Depending on the nature of your particular business, the possibilities for the injection of sound financial advice are almost endless, but just some of the key areas might be:
- Investment advice - investment opportunities for small businesses are as boundless as they are for the individual and the wrong investment decisions can prove even more costly;
- Pension planning - tapping into the financial adviser's wealth of knowledge on pensions matters could result in your business paying less tax and, therefore, instantly improving its trading position and bottom-line profits. What is more, corporate pension planning can lead to improved benefits packages for your employees, thus raising motivation and helping with staff retention and recruitment;
- Health insurance - similarly, a company health scheme is likely to be a highly-prized feature of your employees' benefits package. Not only will it provide security and peace of mind for your employees themselves, but also help you to manage better their occasional sickness and absence;
- Keyman insurance - if yours is like the majority of small businesses, you could probably easily identify one or more absolutely key players whose contribution to your commercial success is critical. It might be anyone from the director upon whose financial backing the company relies to the salesman whose seemingly boundless energy keeps your order books full. Whoever these key players are, you could draw on corporate financial advice to devise schemes for insuring against the adverse impact on the business should they be struck by a serious illness or even die;
- Tax issues - businesses have even more reason to minimise their tax liabilities than individuals. With sound, well-informed and impartial corporate financial advice on a whole range of tax issues, you could achieve significant savings for your business and immediately improve its competitive standing;
- Insurances - some business insurances will be legally required for your company and others offer essential protection when things go wrong. But are you under-insured, and so exposed to unreasonable risks, or over-insured, and paying too high a price for your business insurances? Corporate financial advice can help you restore the appropriate level of balance;
- Commercial finance - in the current climate of economic uncertainty, commercial finances need to be especially robust. Most businesses could benefit from at least a review - and in cases a complete overhaul - of their current borrowing. Corporate financial advice will help ensure that all your business finances are in the best possible state to weather the coming trials of the general economy.
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of corporate financial advice, protection, and life cover.
Article Source: http://EzineArticles.com/?expert=Sean_Horton
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Scope of Offshore Banking For Expatriates
An expatriate is a person who resides temporarily or permanently in a different country and culture other than his/her own legal residence and place of upbringing. When it comes to offshore banking, this class of people is the privileged class. 'Why so?' is a question that we need to answer. This is because they are free to choose the best option from the global financial market.
Depending on the tax structure of the home country, certain facilities may however be limited. During the entire period when they stay abroad, they can use the facilities of an offshore bank along with the tax and investment benefits! They do not have to seek the permission of the offshore jurisdiction to enjoy the advantages of the offshore banking system. It is so because, there are certain countries which allow tax breaks, investment opportunities and several other banking advantages which are not available to the regular citizens of the country.
Offshore banks provide the following advantages to the expatriates irrespective of the financial well being of an expat:
* Tax efficiency
* Secrecy
* Flexibility and High accessibility
It is not that you need to hold an account for saving or depositing only. The offshore banks give an added advantage to the expats. If you want an account only for receiving money then also, you can have an offshore bank account. On top of that, any interest accrued on the received money will be free of tax liabilities even though it is an income! These banks offer you to choose among a wide range of accounts. If you go for a current account, you can have instant access account or a cash/debit/credit card access account. If you are looking for a savings account then, you can have one with notice account and term deposit. You can also choose to have an account with various interest rates that you need to pay. The interest rates, however, depend on the restrictions imposed on the accounts. Remember, you should be an expatriate!
When the question comes to accessibility, you can have internet access, telephone access, direct debit and even standing order. Amazingly, the choice of currency for the account lies with you. The offshore banks also provide secured and unsecured credit cards. You can also have an offshore debit card which acts in an identical fashion to that of a regular debit card.
Among these numerous facilities, you still have a small glitch. You just have to choose an offshore jurisdiction with proper regulation and avoid unethical activities. 'Happy Banking'!
For more information on Offshore Banking visit our site: All You Need to Know About Offshore Bank Accounts
Article Source: http://EzineArticles.com/?expert=Mikel_Freije
Depending on the tax structure of the home country, certain facilities may however be limited. During the entire period when they stay abroad, they can use the facilities of an offshore bank along with the tax and investment benefits! They do not have to seek the permission of the offshore jurisdiction to enjoy the advantages of the offshore banking system. It is so because, there are certain countries which allow tax breaks, investment opportunities and several other banking advantages which are not available to the regular citizens of the country.
Offshore banks provide the following advantages to the expatriates irrespective of the financial well being of an expat:
* Tax efficiency
* Secrecy
* Flexibility and High accessibility
It is not that you need to hold an account for saving or depositing only. The offshore banks give an added advantage to the expats. If you want an account only for receiving money then also, you can have an offshore bank account. On top of that, any interest accrued on the received money will be free of tax liabilities even though it is an income! These banks offer you to choose among a wide range of accounts. If you go for a current account, you can have instant access account or a cash/debit/credit card access account. If you are looking for a savings account then, you can have one with notice account and term deposit. You can also choose to have an account with various interest rates that you need to pay. The interest rates, however, depend on the restrictions imposed on the accounts. Remember, you should be an expatriate!
When the question comes to accessibility, you can have internet access, telephone access, direct debit and even standing order. Amazingly, the choice of currency for the account lies with you. The offshore banks also provide secured and unsecured credit cards. You can also have an offshore debit card which acts in an identical fashion to that of a regular debit card.
Among these numerous facilities, you still have a small glitch. You just have to choose an offshore jurisdiction with proper regulation and avoid unethical activities. 'Happy Banking'!
For more information on Offshore Banking visit our site: All You Need to Know About Offshore Bank Accounts
Article Source: http://EzineArticles.com/?expert=Mikel_Freije
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วันอังคารที่ 1 กรกฎาคม พ.ศ. 2551
Variable Rate Business Loans UK - A Better Financial Opportunity
In today's business fraternity, the existence of variable rate business loans in UK is prominently visible. Most of the business oriented companies are considering this financial assistance to draw huge amount of profit. This loan plan is basically available with an unsettled rate of interest that is estimated in accordance with the APR of the borrowed amount. Moreover, entertaining this loan plan falls way too much cheaper on the pocket of the borrower as compared to the fixed rate loans if planned smartly. Hence, if are also ready to bear a certain level of risk then opting for this loan plan can turn hopefully profitable.
For any business organization, it is quite an achievement to secure a good, respectable position in the competitive market. However this accomplishment demands a great deal of efforts and a planned finance strategy. Variable Rate Business Loans UK is one such absolute financial solution that promises to offer a good amount of funds to the business developers at a variable rate of interest. With the help of this loan assistance, many business developers could actually aim for a higher rate of growth in a small period of time. On the other hand, it is important to mention that variable rate business loans in UK has its own set of pros and cons. For instance, if the interest rate rises, then it will also effect the APR of the loan in the similar manner. Therefore, taking this loan service may prove little risky for the small business companies, but in case of low rate of interest, the chances of making a huge profit gets straightened. Moreover, try to gather qualitative information regarding the maximum and the minimum interest rate that can be levied on this loan as it can save you from a major economic loss at the time of increased rate of interest.
As far as the big business houses are concerned, the percentage of risk involved with the variable rate business loans UK reduces to a major level because they have multiple sources of income and make a decent rate of profit. Hence, it is easier for them to deal with the variable amount of repayments. However, on drawing a comparison between this loan plan and a fixed rate loans, one would find that fixed rate loans usually, charge a very high rate of interest and the possibility of gaining the benefits of low interest rate at some point of time, eliminates completely.
Nowadays, several finance institutions are providing the option of variable rate business loans UK as it offers good amount of profits to both the lender and the borrower. So, if you are ready to apply for this loan plan then you just have to fill up an online application form that is available on the website of the lenders. In order to know the lowest and the highest value of the interest rate, you can directly demand for the free quotations. All this information is useful to maintain a decent budget plan that can bear the rise and low of the interest rate attached to this loan service in an efficient manner.
Barry Jones is a financial expert dealing with business loans, who provides counseling and expert knowledge on business loans UK. To know more about unsecured business loans, Variable Rate Business Loans UK, business start up loan and small business loans visit http://www.businessloansintheuk.co.uk
Article Source: http://EzineArticles.com/?expert=Barry_Jone
For any business organization, it is quite an achievement to secure a good, respectable position in the competitive market. However this accomplishment demands a great deal of efforts and a planned finance strategy. Variable Rate Business Loans UK is one such absolute financial solution that promises to offer a good amount of funds to the business developers at a variable rate of interest. With the help of this loan assistance, many business developers could actually aim for a higher rate of growth in a small period of time. On the other hand, it is important to mention that variable rate business loans in UK has its own set of pros and cons. For instance, if the interest rate rises, then it will also effect the APR of the loan in the similar manner. Therefore, taking this loan service may prove little risky for the small business companies, but in case of low rate of interest, the chances of making a huge profit gets straightened. Moreover, try to gather qualitative information regarding the maximum and the minimum interest rate that can be levied on this loan as it can save you from a major economic loss at the time of increased rate of interest.
As far as the big business houses are concerned, the percentage of risk involved with the variable rate business loans UK reduces to a major level because they have multiple sources of income and make a decent rate of profit. Hence, it is easier for them to deal with the variable amount of repayments. However, on drawing a comparison between this loan plan and a fixed rate loans, one would find that fixed rate loans usually, charge a very high rate of interest and the possibility of gaining the benefits of low interest rate at some point of time, eliminates completely.
Nowadays, several finance institutions are providing the option of variable rate business loans UK as it offers good amount of profits to both the lender and the borrower. So, if you are ready to apply for this loan plan then you just have to fill up an online application form that is available on the website of the lenders. In order to know the lowest and the highest value of the interest rate, you can directly demand for the free quotations. All this information is useful to maintain a decent budget plan that can bear the rise and low of the interest rate attached to this loan service in an efficient manner.
Barry Jones is a financial expert dealing with business loans, who provides counseling and expert knowledge on business loans UK. To know more about unsecured business loans, Variable Rate Business Loans UK, business start up loan and small business loans visit http://www.businessloansintheuk.co.uk
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Debt Consolidation
Drowning in debts as you read this article? Having a hard time settling your debts which are now payable and insistent? Giving up necessities just to get by? Hopeless due to the overwhelming responsibilities your to have to shoulder? Don't think of reporting of bankruptcy yet. There are ways you can do to settle your obligations, or at the very least, lessen the burden you have to shoulder. Consolidating your debt is one. Debt consolidation pertains to the fusion of your debts into a single loan. This definition may sound simplistic, and some people may question how this technique can help them cope up with their financial woes, but debt consolidation has positive outcomes that can assist an individual with financial binds."
Debt consolidation can extend the due date of several loans. If you have many debts which have become demandable, for example, you can consolidate them into a new loan with a new due date which will allow you more time to prepare for the same."Debt consolidation can merge several debts with high interest rates into a new loan with a significantly lower interest rate. Believe it or not, when we become remiss in the payment of our debts, their relevant interest rates can mess up our investments. We end up paying and paying our debts, only to realize afterwards that majority of our payments are just only suffice to cover the interests per se."
Debt consolidation makes financial planning less of a headache. You can stop thinking of several debts. You can just basically face a single consolidated credit. Debt consolidation is a common approach in managing difficulties of having numerous monetarial binds at one time. Filing for a judicial declaration of bankruptcy is an option to relieve yourself of your unsecured loans, but such should be treated as a last resort. Many finance companies offer debt consolidation loans for beleaguered debtors. Consolidated loans are high in demand. In any case, they bring about issues easier for the debtor. Aside from having just one loan to worry about, debt consolidation also provides a single loan with a lower interest rate (compared to the total amount of the interest rates for the individual debts concerned), as well as a new maturity period that can effectively extend the due date of the individual loans.Frequently, credit institutions that give debt consolidation loans ask for a mortgage from the person in debt, a form of security to ensure compliance with the terms of the new, unified loan.
This credit is protected from the house of the debtor. From the time when debt consolidation loans are secured, the finance companies concerned will contact each and every creditor of the debtor to negotiate favorable terms for fulfillment of the debtor's obligations. In a way, finance institutions giving out debt consolidation loans essentially act as economic consultants for concerned debtors. In addition, debt consolidation can also be regarded as a type of debt refinancing. The finance company offering the debt consolidation loan will actually pay for the individual loans , and the debtor will be indebted to the finance company under one, single loan thereafter.Some rational admonitions about debt consolidation loans however:You can only be in a debt consolidation once and never again. This is for the reason that only unsecured loans can be consolidated, and with the mortgage requirement, debt consolidation loans are deemed to be secured loans.
Due to this, nonpayers won't be able to relieve themselves of unsatisfied debt consolidation loans even when a proficient court announces them to be insolvent. Bankruptcy only absolves the debtor from paying unsecured loans. The mortgage connected to a debt consolidation loan will still be foreclosed even if the debtor is deemed as bankrupt.Merging your debts is an excellent option if you're encountering some problems in paying off numerousfinances when majority of them are already due and needed. Save yourself from the strenuous fine charges and interest charges by consolidating these loans into one secured loan that will be easier to manage.
ABOUT THE AUTHOR: Vernon DeFlanders - Webmaster of LoansInfoSite.com Is filled with no nonsense, practical information with Articles, Videos, News, Podcasts on various types of Loans. Get Your FREE Special Report; "Unravelling the Maze of Student Loans-http://lansinfosite.com/." Also Do not forget to Get our latest ebook. Everything You Always Wanted to Know About Loans But Never Dared to Ask! at http://loansinfosite.com/ebook.html
Article Source: http://EzineArticles.com/?expert=Vernon_Deflanders
Debt consolidation can extend the due date of several loans. If you have many debts which have become demandable, for example, you can consolidate them into a new loan with a new due date which will allow you more time to prepare for the same."Debt consolidation can merge several debts with high interest rates into a new loan with a significantly lower interest rate. Believe it or not, when we become remiss in the payment of our debts, their relevant interest rates can mess up our investments. We end up paying and paying our debts, only to realize afterwards that majority of our payments are just only suffice to cover the interests per se."
Debt consolidation makes financial planning less of a headache. You can stop thinking of several debts. You can just basically face a single consolidated credit. Debt consolidation is a common approach in managing difficulties of having numerous monetarial binds at one time. Filing for a judicial declaration of bankruptcy is an option to relieve yourself of your unsecured loans, but such should be treated as a last resort. Many finance companies offer debt consolidation loans for beleaguered debtors. Consolidated loans are high in demand. In any case, they bring about issues easier for the debtor. Aside from having just one loan to worry about, debt consolidation also provides a single loan with a lower interest rate (compared to the total amount of the interest rates for the individual debts concerned), as well as a new maturity period that can effectively extend the due date of the individual loans.Frequently, credit institutions that give debt consolidation loans ask for a mortgage from the person in debt, a form of security to ensure compliance with the terms of the new, unified loan.
This credit is protected from the house of the debtor. From the time when debt consolidation loans are secured, the finance companies concerned will contact each and every creditor of the debtor to negotiate favorable terms for fulfillment of the debtor's obligations. In a way, finance institutions giving out debt consolidation loans essentially act as economic consultants for concerned debtors. In addition, debt consolidation can also be regarded as a type of debt refinancing. The finance company offering the debt consolidation loan will actually pay for the individual loans , and the debtor will be indebted to the finance company under one, single loan thereafter.Some rational admonitions about debt consolidation loans however:You can only be in a debt consolidation once and never again. This is for the reason that only unsecured loans can be consolidated, and with the mortgage requirement, debt consolidation loans are deemed to be secured loans.
Due to this, nonpayers won't be able to relieve themselves of unsatisfied debt consolidation loans even when a proficient court announces them to be insolvent. Bankruptcy only absolves the debtor from paying unsecured loans. The mortgage connected to a debt consolidation loan will still be foreclosed even if the debtor is deemed as bankrupt.Merging your debts is an excellent option if you're encountering some problems in paying off numerousfinances when majority of them are already due and needed. Save yourself from the strenuous fine charges and interest charges by consolidating these loans into one secured loan that will be easier to manage.
ABOUT THE AUTHOR: Vernon DeFlanders - Webmaster of LoansInfoSite.com Is filled with no nonsense, practical information with Articles, Videos, News, Podcasts on various types of Loans. Get Your FREE Special Report; "Unravelling the Maze of Student Loans-http://lansinfosite.com/." Also Do not forget to Get our latest ebook. Everything You Always Wanted to Know About Loans But Never Dared to Ask! at http://loansinfosite.com/ebook.html
Article Source: http://EzineArticles.com/?expert=Vernon_Deflanders
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How a Co-signer Can Affect Your Credit Report
Do you want your credit score to plummet, go ahead and co-sign for someone. I personally believe this is a huge problem. With your credit score and credit report being the roadmap to financial health, the question is can you really afford to co-sign for friends and family. Over the years I have seen more problems with this issue. Here is how a co-signer can affect your personal credit.
Late Payments
If you co-sign for a family member your credit report could be at risk. If for some reason the family member is late on an obligation you co-signed for your credit score just dropped about 100 points. Most people don't thing about this, but it happens all the time. Anytime someone is late on a obligation that reports to all 3 credit bureaus, that bad mark will be on there for 7 years. It's not worth it. If you have to co-sign for someone make sure you are not getting ready to make a big purchase, because it could affect your purchasing power as well. Some banks like to see a payment history in good standing usually around 12 months on co-signed obligations. They also typically like to see proof that the payment is coming out of the person's bank account you co-signed for. So co-signing opens up all kinds of worms in the world of finance.
Income to Debt Ratio
Once you have co-signed on a loan for a friend or family member it could affect your ability to get a loan for something else. That added debt that is showing up on your credit report is technically your responsibility as well. Let's assume you have this car note you co-signed for and the payment is $500.00 a month. You have now added this debt to your portfolio of debts in a underwriters eyes. In order to buy something else an underwriter may require a good 12 month payment history by the other party to disallow a debt from your portfolio of obligations. So with this being said think real hard before you co-sign on anything. I don't recommend it. There are ways for someone to get there credit established so they can get loans in there own name. The internet is a great resource. There is anything you can imagine on the web to help you achieve just about anything, including getting your own credit established so you don't need a co-signer.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/ . CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.
Article Source: http://EzineArticles.com/?expert=Mike_Clover
Late Payments
If you co-sign for a family member your credit report could be at risk. If for some reason the family member is late on an obligation you co-signed for your credit score just dropped about 100 points. Most people don't thing about this, but it happens all the time. Anytime someone is late on a obligation that reports to all 3 credit bureaus, that bad mark will be on there for 7 years. It's not worth it. If you have to co-sign for someone make sure you are not getting ready to make a big purchase, because it could affect your purchasing power as well. Some banks like to see a payment history in good standing usually around 12 months on co-signed obligations. They also typically like to see proof that the payment is coming out of the person's bank account you co-signed for. So co-signing opens up all kinds of worms in the world of finance.
Income to Debt Ratio
Once you have co-signed on a loan for a friend or family member it could affect your ability to get a loan for something else. That added debt that is showing up on your credit report is technically your responsibility as well. Let's assume you have this car note you co-signed for and the payment is $500.00 a month. You have now added this debt to your portfolio of debts in a underwriters eyes. In order to buy something else an underwriter may require a good 12 month payment history by the other party to disallow a debt from your portfolio of obligations. So with this being said think real hard before you co-sign on anything. I don't recommend it. There are ways for someone to get there credit established so they can get loans in there own name. The internet is a great resource. There is anything you can imagine on the web to help you achieve just about anything, including getting your own credit established so you don't need a co-signer.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/ . CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.
Article Source: http://EzineArticles.com/?expert=Mike_Clover
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