Archive for October, 2007
October 30, 2007 at 3:53 am · Filed under bankruptcy, guides, mortgage
bankruptcy
Mortgage After Bankruptcy: These Steps Could Help
Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.
If you want to increase your chances of qualifying for a mortgage after bankruptcy, here are some steps you can take:
First, if you plan to apply for a mortgage after bankruptcy, you will want to have any inaccurate or obsolete negative information on your credit reports corrected or removed. This can help increase your credit score.
Also, you will want to establish some new accounts, and pay them in a timely manner over time. If you’ve paid the accounts on time for about 18-24 months since your bankruptcy, this should help rebuild your credit – which can be a plus when applying for a mortgage after bankruptcy.
Next, you will want to work with an experienced mortgage broker. Why? Because buying a home is probably going to be one of the biggest investments you’ll make. You will want to have an experienced professional guiding you through the lending process – especially when it comes to applying for a mortgage after bankruptcy.
A mortgage broker typically has access to dozens of lenders and will probably have a good idea of which ones will (and will not) approve you for a mortgage after bankruptcy. In addition, they will be able to tell you what to expect in terms of the financing process.
Tip! Have derogatory credit items removed from your credit report. For the items charged off in your bankruptcy, you will need to send a copy (not the original) of your bankruptcy discharge papers to all 3 of the credit bureaus asking them to remove these inaccuracies.
So how do you find a mortgage broker? One way is to to ask friends or real estate agents for a referral. Once you have a few names, set up an appointment to interview each mortgage broker.
Among other questions, you will want to know if they have successfully been able to get other individuals a mortgage after bankruptcy. You also want to make sure they are licensed.
Tip! Pay all of your bills on time. Bankruptcy is a means to financial recovery.
Another question you will want to ask is what type mortgage loan (A, B, C, or D) the mortgage broker thinks you can qualify for. Why? The lower the grade of the loan, the higher the interest rate. This is an important consideration when applying for a mortgage after bankruptcy.
In addition, there are other important questions you will want to ask a potential mortgage brokers – ones that could help you save money and/or increase your chances of qualifying for a mortgage after bankruptcy. While there isn’t enough room to cover them here, I go into detail on them in After Bankruptcy Credit Solutions.
Tip! Why doesn’t everyone just call bankruptcy when everything gets too hard. Put simply, your credit is ruined.
Also make a point to bring your financial information with you when you meet with a mortgage broker. For example, you should have your income and expenses available as this will help the broker determine the loan amount you may be able to qualify for when it comes to a mortgage after bankruptcy.
Generally speaking, most lenders will allow you to get a home loan with a payment of up to 28% of your gross income. So if you make $4,000 per month, that would be $1,120. But keep in mind that this just an example. Again, a good mortgage broker can explain the criteria that each lender has.
If you have copies of your credit reports from each of the major credit reporting agencies (Experian, Equifax, and Trans Union) this will help also. Your credit report will play a major role when it comes to qualifying for mortgage after bankruptcy.
On that note, if you want to increase your chances of qualifying for a mortgage after bankruptcy, make sure that any inaccurate or obsolete negative information is removed from your credit report. This is important for two reasons: (1) It can mean the difference between qualifying or not qualifying for a mortgage after bankruptcy, and (2) if you end up qualifying for mortgage after bankruptcy, any inaccurate or obsolete negative information on your credit report could cost you up to $1,000s or even $10,000s in additional interest.
Tip! Everyone will know I’ve filed for bankruptcy. Unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors.
How do remove any inaccurate or negative information from your credit report, so you can improve your chances of qualifying for a mortgage after bankruptcy? There are specific steps you need to take. While I cover them in After Bankruptcy Credit Solutions, there is not enough room to go into detail here. Just remember that ideally you want rebuild your credit history before applying for a mortgage after bankruptcy.
By the way if you think that removing inaccurate or negative information from your credit reports takes a long time, I have good news. There is a way to have it removed in as little as 72 hours – the service is typically not available directly to consumers. In After Bankruptcy Credit Solutions I show you how to find this type service if you are trying to qualify for a mortgage after bankruptcy.
In this article we touched on two important steps you can take if you plan on applying for a mortgage after bankruptcy: Correcting or removing any inaccurate or obsolete negative information from your credit reports, and finding a mortgage broker to guide you through the lending process.
Tip! I’ll lose everything I have. This is the misconception that keeps people who really should file for bankruptcy from doing it, says Chris Viale, chief operating officer of Massachusetts-based Cambridge Credit Counselling Corp.
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Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.
The company and product/service names referenced in this article are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.
DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
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About the Author: R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy – including how to qualify for a mortgage after bankruptcy.
October 28, 2007 at 2:40 pm · Filed under mortgage
All businesses run on information. Now more than ever, information is crucial for a successful business. Banks and mortgage companies are not an exception to this rule: in order to be able to offer people loans tailored for their needs, a solid marketing background is required, as well as thorough market research and in-depth analysis of the customer profile.
Because of the personal nature of loans and mortgages, an excellent and permanently updated direct marketing mailing list is a must for every respectable player in this market. Such a list would save the bank a lot of money and time, by avoiding undesirable returns of mailings and by allowing a direct contact with their customers and prospects.
The use of mortgage intelligence is beneficial for homeowners, who can choose from a broad range of loans, suitable for practically every need. But this knowledge does not come by itself, therefore it is very important that banks work with very accurate data, to avoid the GI-GO effect (“Garbage In – Grabage Out” is a marketing principle which emphasizes the importance of working with high quality data, for getting high quality results). Bad information in this domain leads to poor loans, thus decreasing credibility and leading to crisis.
The best solution for banks and mortgage companies is to hire specialists teams, like Red Clay Media, who offer full direct marketing services, from creative design, to consumer data and state-of-the-art marketing programs meant to optimize their clients’ results. Such teams would do the work efficiently, with less costs than a team of permament employees.
This is what specialists are for, isn’t it?
October 26, 2007 at 4:18 am · Filed under bad credit, consumer loans, guides
personal loans
Bad Credit Personal Loans at a Glance
Tip! For getting this benefit, individuals will have to decide whether or not they are prepared to offer collateral. Collateral has the effect of reducing the risk involved in personal loans.
Do you feel apprehensive because of the fact that you are in need of funds but can’t get it because of bad credit history?
Well! Gone are those days when bad credit was considered as something to be ashamed of and getting a personal loan with a bad credit………an impossible task. In today’s age of financial revolution the attitude has completely changed towards bad credit history cases largely due to the ease of getting tailor-made loans.
In the recent years, borrowing has increased drastically. You need to borrow for reasons which are endless. And, that’s where personal loans come into the scene. Personal loans are type of loans especially designed to fulfill your personal wants and needs. And, if you fall under the trap of bad credit, then also you have the possibility of accessing customized personal loans known as bad credit personal loans.
There are a wide variety of lending opportunities available for bad credit personal loans. All you need to do to enhance your chance of availing the best bad credit personal loans is by exploring different loan options and discover which loan opportunities are best for you and your needs.
Tip! So, you can use a personal loan to sponsor your child’s education or buy your favourite car or do away with your debts or even throw a lavish wedding party. Basically, personal loans can offer a viable solution to all your financial needs.
The term ‘bad credit personal loans’ suggests that you are looking for a personal loan for a specific situation called ‘bad credit’. Bad credit may happen to anybody and most of the times because of circumstances beyond our control, such as, late payments, skipping payments, county court judgements etc. So, it should be kept in mind that under no circumstances it can debar you from accessing some of the best personal loans available in UK. Like personal loans, bad credit personal loans are also highly flexible in its character and so it can also be used for almost any purposes ranging from home improvement, debt consolidation, buying a new car to education and wedding. And, like any other type of loan, a bad credit personal loan has also got its own share of pitfalls, the chief one being, higher rate of interest.
Tip! With the provision of online lenders, bad debt personal loans are now easy to access. Different loan providing organisations ready to serve you the best deal appear online.
Before applying for a bad credit personal loan, it is very important for you to be well versed about your credit score, the terms and terminologies of the lending market and the rate of interest available. These will help you to know exactly what should you expect from your lenders and will reduce the chance of falling prey to any gimmick.
Some simple steps to avoid bad credit history:
· Keeping a budget which will allow you to get an accurate picture of your financial position – your incomings and outgoings.
· Don’t take on major loans if you can’t really afford to pay them back.
· Always pay your bills on time.
· Cut back on non-essential luxury items if you’re feeling the financial crunch.
The best way to ensure the best deal for bad credit personal loans is by exploring all the options available, comparing quotes from various lenders and selecting the one that perfectly matches your financial circumstances.
Tip! Since personal loans are available with and without collateral, both homeowners as well as tenants can take these loans. May be you are a homeowner or not, you can take unsecured personal loan.
Visit http://www.loans11.co.uk and get additional information about Bad Credit Personal Loans.
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October 23, 2007 at 4:13 am · Filed under guides, property management
mortgage
How To Make Money In Real Estate Without Buying Any Property: Become A Mortgage Broker
Tip! Don’t pay money to enter into a mortgage affiliate program. If a mortgage affiliate program asks for money in order for you to post their link on your web site, it could possibly be a Multi Level Marketing, or MLM, program, which are normally not successful in mortgage affiliate programs.
Will Real Estate prices keep going up or will the bubble burst?
Who knows? Either way, real estate is a risky business. Tying up all that money and having very little liquidity can spell disaster for any investor.
In any hot market there are always ways to make money without taking any risk yourself.
Just look at Levi Strauss. He traveled west during the Gold Rush to make his fortune as a gold miner. But he found that it was harder than advertised. So instead he did the next best thing, he started selling to the miners. He sold them something they all needed – jeans! And he made his fortune without risk. In fact, many of the store owners in that area got rich selling to the people who had the “gold bug”
Tip! Choose a mortgage affiliate program that offers a variety of ways of reaching potential customers. Some mortgage affiliate programs require a banner link on your web site.
If you want to make money on the real estate boom, I suggest you sell to the people who have the “real estate bug”. The people who want to get in on the bull market and make a killing. Sell them something they all need- money!
You can do it just like I do, become a mortgage broker.
Become a mortgage broker and you can easily make hundreds of thousands of dollars by helping other who want to get rich quick in real estate.
There is very little cost to get started and no risk. When you become a mortgage broker, you can still keep your day job and work part-time while making a full time income.
Tip! If you are renting and are applying for a mortgage to purchase your home, you will need the names and address of your landlords for the past two years.
In many states you don’t even need a license to become a mortgage broker. You can get started today!
There is more demand for mortgage brokers today than ever in history. And demand will continue to grow. The U.S. population continues to grow. Everyone wants the American Dream of owning their own house. If you become a mortgage broker you can make that dream come true for your fellow Americans.
If you want the cards stacked in your favor you should really look a little closer at the trends that give more reasons to become a mortgage broker.
- The U.S. Population is growing exponentially.
- Americans are saving less then ever before – if someone wants to buy a house, they have to borrow money. They have no choice. They must use your service.
- As home prices go up, so do mortgage broker commissions. The fees are a percentage of the loan amount.
- More and more people are buying second homes and vacation properties.
- Over 65% of people getting a loan use a mortgage broker instead of a bank.
Tip! Choose a mortgage affiliate program that offers excellent affiliate support and communication. A good way to test the waters as to how good the mortgage broker or lender’s communication and support is with their affiliates is to simply email an inquiry.
When you become a mortgage broker and work part-time you can work from home and keep your day job. If the market goes up – great! If the market goes down, people will be selling their homes and investors will be buying. These investors will need loans from you to buy. You make money either way.
You could also be a real estate agent. But you’d have to drive people around all day. Becoming a mortgage broker means you can sit in your office while people come to see you. There is no need for you to go anywhere.
Tip! Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.
After you become a mortgage broker, life will never be the same.
Ameen Kamadia, “The Millionaire Loan Officer” is a mortgage consultant, coach and trainer. He still does loans in his free time. To learn more about how to become a mortgage broker visit http://www.mortgagebrokertraining.com
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October 22, 2007 at 9:25 am · Filed under mortgage
Most people think of a mortgage when they buy a new home. This is fully understandable, if we think how expensive houses are, and how much cash we are going to block by paying the whole amount in advance.
What some people don’t know, is that they can appeal to the FHA (Federal Housing Administration) to get a FHA loan for buying their desired house. The FHA also allows homeowners to obtain a FHA loan refinancing, thus making it possible to lower their interest rate and their monthly payments.
Advantages of taking a FHA mortgage:
- Usually, FHA mortgages do not require more than a 3-5 percent down payment. This amount does not need to be secured as the homebuyer’s own money.
- FHA mortgages have no mortgage value cap. It means that the only restriction when you get the money is the credit applicability.
- FHA closing costs can be financed into the total amount of the mortgage and paid off accordingly, so you won’t have to pay any additional amount at closure.
For the conditions to qualify for a FHA loan, or for other FHA mortgage questions, you are welcome to get in touch with the specialists from FHA Research Center, who will make it clear for you if and how you can get your FHA loan.
October 21, 2007 at 3:38 am · Filed under bankruptcy, business
bankruptcy
Buy A Business Worth Over A Million Dollars-Even If You Just Filed Bankruptcy Yesterday
Tip! If I file for bankruptcy it may cause more family troubles than I already have, maybe even divorce.
If you’d like to know how you can buy a large, multi-million dollar business — one that pays you a fat, six-figure salary year in, and year out — and be able to do it even if you have rotten credit with a recent bankruptcy on your record, then this article will show you how.
Listen: People I talk to about buying businesses always hear me rail about how it’s actually faster, easier and cheaper for you to buy large businesses (worth a million dollars or more) than small businesses, and that the reason why is because of this thing called investor financing — as opposed to owner financing, bank financing, government loan financing, etc.
Tip! Get a copy of your credit report. Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately.
In other words, say you filed bankruptcy last year. If you go out and try to do something under your name, you’re never going to be able to do anything. The business brokers, bankers and other bureaucrats won’t touch you with a ten foot pole, especially if you have money problems on your record. But if you walk in with an investor…who is putting up cash…then they won’t give a hoot about you or care one iota if you just filed bankruptcy yesterday.
And that’s why investor financing is so powerful. However, there are certain criteria an investor bases his decision on before working with you. And if you don’t understand these criteria, you’re dead in the water as far as getting investor financing.
Tip! Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.
Luckily, the key thing an investor’s going to want is information on the company. And what you’re going to find is the average investor is spending 99.9% of his time on the business because that is his main thing. And one of the first things he will do is make sure the business you want to buy has a strong management team in place. That way, he isn’t all that worried as far as how much management experience or money you do or don’t have.
Of course, there are other things investors will need before financing a business for you. But the main thing (besides you having a good business plan) is that the business you want to buy already has a competent management team in place.
Tip! Only deadbeats file for bankruptcy. Most people file for bankruptcy after a life-changing experience, such as a divorce, the loss of a job or a serious illness.
Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business greats as Robert Allen of “No Money Down” fame. For the past 20 years Art has taught thousands of people around the world — even so-called “little guys” with no formal education or money — how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience. He has recently decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.com
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October 20, 2007 at 12:23 pm · Filed under cash management
Cash
Cash Flow 101
Tip! To save yourself from bounced checks, the fees for bounced checks can quickly total much more than the fee for taking out the cash advance loan.
A new trend dubbed “peer-to-peer” financing is emerging in the financing arena and it’s already more common than most people think. Instead of borrowing money from a bank or other financial institution to purchase real estate or small businesses, private individuals become the lenders.
Surprisingly, this “new” trend isn’t so new at all. People have been lending money to their peers for hundreds of years. Today, these transactions are formalized through Cash Flow Notes, a written document that states a promise to pay and the terms of the agreement. The untapped peer-to-peer lending market: Cash Flow Notes
Financing through a cash flow note is an attractive option for many transactions, particularly real estate. Now a $350 billion industry, peer-to-peer seller financing is a growing global phenomenon. Already, the sale of most small businesses incorporate peer-to-peer lending and one in 13 American homes is purchased using these cash flow notes.
Tip! You must have a checking account. This is logical since that is how you will be able to get your quick payday loan cash.
Currently, there are approximately $91 billion in privately held single-family residences and another $200 billion in commercial real estate notes. In fact, there are so many cash flow notes in the U.S. alone that if you could find and purchase $1 million worth of notes every day, it would take more than 240 years to find them all.
Two ways to make money
Most people get started in cash flow notes by simply matching a seller – someone who is holding a note – with a buyer and then collecting a fee for putting the deal together with no capital outlay required.
Additionally, many investors are looking to buy these notes. It is not uncommon to receive returns of 20 percent or more as well as immediate monthly cash flow and because these notes are secured by real estate, they are extremely safe investments.
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October 16, 2007 at 10:38 am · Filed under general finance
If the public is ever to feel comfortable with Social Security reform, it needs to see a trial run.
Mr. Hood is president of the John Locke Foundation, a state-policy think tank in Raleigh, North Carolina, and the publisher of a new monograph entitled Savings & Loans: Reforming Unemployment Insurance through Competition and Compound Interest.
It has long been a free-market dream: changing Social Security from a redistributionist, pay-as-you-go social program to a personalized system of private retirement accounts. Once confined to Cato Institute seminars and Philadelphia Society meetings, the idea now has lawmakers of all ideological stripes buzzing. And yet, a big political obstacle remains. Privatizing Social Security would be reform on a grand scale, involving many billions of dollars — and the retirement prospects of many elderly and near-elderly voters.
What reformers need is a trial run, a demonstration that average folks can manage their money just as well as government bureaucrats can (or, indeed, better). Supporters point to Chile, Australia, and Great Britain as proof that it can be done.
But promising as these examples are, most Americans won’t be convinced until they have seen an example closer to home. Policymakers can create one: by letting states privatize Unemployment Insurance.
The Unemployment Insurance program was created by the same legislation as its bigger cousin, the Social Security Act of 1935. A joint federal – state program, UI provides two services: the promise of UI benefits in the event of a layoff, and the operation of Employment Service job offices throughout the country.
UI is one of our largest social programs. Like Social Security, it is financed by payroll taxes — to the tune of $23 billion in 1997. Also like Social Security, it runs an annual surplus, and its accumulated “trust fund” ($35 billion as of last year) must by law be invested only in federal Treasury securities and thus serves to mask the true size of the federal budget deficit.
There is another similarity to Social Security: Unemployment Insurance is an outmoded program that offers a bad deal to workers and is a drag on the economy.
In the first place, workers are eligible for UI benefits only if they have lost their job involuntarily and through no fault of their own. If you choose to leave one job in search of a better one, resign to follow your spouse to a new city, or are fired for what your manager calls “cause” (even if this is untrue), you cannot make a claim.
Furthermore, UI benefits are small and strung out over half a year. If what you need is money up front for retraining or to start your own business, you’ll have to get it elsewhere. The silliest part of the system is its requirement that beneficiaries must show evidence of “looking for work” every week in order to keep getting checks. This rule often creates an elaborate minuet of fraud — as in George Costanza’s antics on Seinfeld — with or without the complicity of UI bureaucrats. Efforts to enforce these and other convoluted UI rules jack up administrative costs significantly, further reducing the value of the program to the people whose taxes pay for it.
The bottom line is that millions of Americans are forced to pay into a UI system that offers them little or nothing in return. In only three states do more than half of unemployed workers ever see a dime of UI benefits.
Even the vaunted job-search component is far less than meets the eye. A national survey reported that only 4 per cent of UI beneficiaries found their new jobs through the government system.
The vast majority of people who are out of work, in other words, cope with unemployment in ways that don’t involve the UI system. We draw down our private savings to pay bills or go back to school. We use want ads, word of mouth, and private firms to find new jobs. Personnel agencies have been a growth industry for years, while many Americans now sock away several months’ worth of income in money-market funds and other safe but interest-bearing forms of investment. Anyone who wants some measure of security has to do these things, even though we are forced to pay into the UI system. That system essentially subsidizes a few industries with a high risk of layoff and pushes unemployment rates higher by inducing beneficiaries to stay out of the job market in order to collect as many benefit checks as possible.
THE way out of this morass is, not surprisingly, similar to what has been proposed for Social Security. The Unemployment Insurance system should be personalized and privatized. The first step is already underway. A coalition of 23 states and the private Unemployment and Workers’ Compensation Association is set to support a bill in Congress next year from Rep. Clay Shaw (R., Fla.) to devolve the UI system entirely to the states. Currently, states administer the program and collect part of the tax revenue, while Washington enforces strict rules and collects the rest of the taxes. The federal portion is spent on administration and on subsidies to states with troubled UI trust funds. Rep. Shaw’s bill is intended to eliminate waste and give states more authority to make their own decisions. Even the Clinton Administration admits that the current system is broken; it is reportedly preparing its own, less ambitious devolution plan.
The next step is to allow states to experiment with privatization. We already have a precedent here, too: workers’ compensation. While virtually all states require employers to purchase workers’ comp insurance for their employees, few require that government provide it. There is a competitive market of private insurers that sell workers’ comp policies. There is no reason to expect UI to be any different.
In North Carolina, the think tank I head, the John Locke Foundation, has already proposed a private alternative called Unemployment Savings Accounts (USAs). Employers would direct payroll taxes to their employees’ USAs rather than to state or federal coffers. A small portion of the payroll tax would go to a state trust fund that would loan money to new workers to set up their own USAs. Workers could select from a variety of USA plan administrators, including banks, insurers, and personnel firms. These administrators would not only manage the accounts but also, if workers wished, provide job-placement or job-training services. Unspent USA funds could be withdrawn after retirement or passed on to heirs.
Unlike government managers, private USA administrators would have incentives to provide the benefits workers actually need (such as lump-sum distributions up front for retraining) and to get workers re-employed as quickly as possible. Why? Because the firms would seek to maximize deposits so that they could make interest on them. Having workers pay into the system is far more lucrative for private administrators than having workers make withdrawals. The opposite is true for government managers, whose jobs and empires depend on serving as many UI claimants as possible for as long as possible.
Whether or not states chose to use USAs, devolution would serve as a useful trial run for Social Security privatization. The amount of money involved is far smaller, and so is the downside risk. As is now happening with electricity restructuring, some states would rush ahead, while others would move cautiously, looking to the former for examples of what to do — or what not to do. Of course, devolving and privatizing UI would also benefit workers. And it would boost the economy by reducing the length of time workers spent unemployed and making more private savings available for investment. Not bad for an unintended consequence.
COPYRIGHT 1998 National Review, Inc.
COPYRIGHT 2000 Gale Group
October 6, 2007 at 12:24 pm · Filed under cash management
Cash
Cash Flow Planning for Solo Entrepreneurs
Tip! To save yourself from bounced checks, the fees for bounced checks can quickly total much more than the fee for taking out the cash advance loan.
You’ve heard it a million times – cash flow can make or break a business. Lack of cash flow planning is the reason why many businesses fail. In fact, many PROFITABLE businesses fail because of cash flow issues. Without adequate cash flow, you can’t pay your bills and you can’t make plans for your business.
So… what is cash flow planning? Cash flow planning is projecting your future cash inflows from sales, services, and loans, and comparing them to your future cash flow needs (suppliers, salaries/wages, loan payments, taxes, etc.). The difference between the two is your net cash flow.
Tip! You must have a checking account. This is logical since that is how you will be able to get your quick payday loan cash.
Why is cash flow planning so important? Cash flow planning can help you identify problems down the road, and fix them before they occur. Cash flow planning can also help you make decisions such as should I attend that conference I’ve wanted to attend, should I buy the new computer I’ve been wanting, or do I need to work extra hard this month to avoid a cash flow deficiency next month?
The first step in planning your cash flow is knowing where you spend your money! Solo entrepreneurs need to have a good grip on both their personal and business spending, as most solo entrepreneurs rely on their business income to meet personal finance goals (i.e., pay the bills!). So, you should track both your personal and your business spending, although I recommend that you keep them separate (that’s a topic all by itself).
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
Tip! Maintain a list of emergency money generators. These are items that you can use that require little or no planning, either because you have it done or it just doesn’t need it, that deliver short-term cash.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCORE counselor, join groups of similar business owners, and read as many books or articles you can find on the subject.
Tip! You will never end up crying with Fast Cash Payday Loans. This is because if the company you have applied will not approve your loan, they will somehow send you list of companies that match your qualifications.
To improve your cash flow, you should:
1. Complete the first 3 steps. You have to understand cash flow planning, track your cash flow, and project your future spending needs before you can improve your cash flow.
2. Create best and worst case scenarios and create appropriate responses to both scenarios. For example, if your best case scenario is to increase sales by 50%, how will you use the profits? Will you put the profits back into the company by investing in new equipment, training, etc.? If your worst case scenario is a drop in sales by 50%, how will you continue to cover your monthly expenses? By planning for the best and worst case scenarios, you’ll be ready for any situation.
3. When estimating your future income, realize that some people will pay late, and account for that fact in your projection.
4. Charge what you’re worth. Many businesses, especially service professionals, under-charge when they are first starting out. This is a great way to go out of business. Make sure you are charging what you’re worth, and remember you’re in business to make money, not to give your expertise away for free.
Tip! ) Now let’s say you use a new credit card to take a cash advance of $1000, but are unable to pay it immediately. Over the course of a year, your $1000 cash advance at a 29% interest rate could accrue interest of $300 or more.
5. Watch your business spending. Focus on the value the item brings to your business, and avoid lavish spending (i.e., do you really need the fastest, newest computer available?).
6. Don’t hire until necessary. Consider using virtual assistants or temporary employees before hiring permanent employees.
7. Give incentives for early payment for products and services. On the flip side, chase down invoices the minute they’re late. Charge interest or late fees to encourage timely payments.
8. Update your cash flow regularly. Your cash flow plan will change frequently as your business grows. You may want to update your cash flow plan weekly when you first get started, then switch to monthly once you’ve got a good handle on your cash flow.
Tip! Revolving Credit Line. Establish a revolving line of credit through a lender to help you with potential cash flow crunches.
Remember – whether you are a new or growing business, your cash flow projection can make the difference between success and failure.
Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.
To sign up for free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com.
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October 1, 2007 at 4:21 am · Filed under consolidation, consumer loans, general finance, guides
personal loans
Personal Debt Consolidation Loans – Can You Qualify?
Tip! You can apply for personal loans with bad credit both online and directly with a lender. Most people appreciate the convenience of applying online.
If you are faithful to pay the minimum payment on each of your bills each month, you still stand the chance of never getting out of debt. By making the minimum payment, you are simply lining the pockets of your creditors with endless interest payments and very little of your money is applied to the principle of your debt. There is a way to get out of the cycle you find yourself in. To decide if a personal debt consolidation loan is the solution for your situation, it is important to determine whether or not you can qualify for a consolidation loan.
Tip! People with County Court Judgements, arrears, defaults, bankruptcies etc. may also seek personal loans.
Your credit counts.
When you apply for any loan, the condition of your credit will determine whether or not you qualify. It is important to monitor your credit on a regular basis to make sure it doesn’t contain any mistakes that could hurt your chances of getting a loan. Your credit score is also affected by your potential for debt, so if you have several unused but open accounts on your credit report, close them so that they don’t affect your credit score. It is also important to make sure that you are making all of your payments on time. Late payments show up on your credit report and that can also determine whether or not you can qualify for a loan. Even if you qualify for a loan, bad marks on your credit can change the interest rate a company is willing to offer you. The lower your credit score, the higher the rate of interest you will qualify for.
What kind of collateral do you have?
Tip! UK unsecured personal loans are offered for a short period of time so, borrowers need to calculate the loan amount as per their requirements. Raising a higher amount than the required may pose some problems that can lead to bad credit situations.
Most consolidation loans require you to own a home that has accrued enough equity to cover the loan. If you don’t own a home, chances are you won’t qualify for a debt consolidation loan. If you do qualify for a home equity debt consolidation loan, remember that you are risking your house to pay off your personal debts. It is important that you stay current on all of your payments.
Go to http://www.debtsanity.com for more information on qualifying for a Personal Debt Consolidation Loan.
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