Will Debt Management Plans Affect Your Credit Score?

Debt needs to be handled properly if you want to eliminate it. You may need to enroll into a debt management plan to give your more breathing room in your monthly budget. But, you have heard that debt management plan may badly hurt your credit, is that true?

At the time you start delay your debt payments you are hurting your credit. The longer you let your bad financial situation as it is, the more you hurt your credit score. There is no way out of debt except you pay it off. Therefore, when you enroll a debt management plan, you are putting a solution to resolve your debt issue. If comparing to a problem without a solution, a debt management plan won't hurt your credit score as much as you may think. However, using it to pay off debt may make you difficult to qualify for new credit. But, when you clear it off by following the schedule in the plan, you can always recover your good credit later.

In order to minimum the impact that may hurt your credit score, you can always take a few precaution steps to protect it:

1. Choose a debt-management plan wisely

It is so important to choose a debt management program carefully because if the agency that misses or late in making your payment to your creditors, your credit record will be jeopardized. You have to select a credit counseling service with good reputation and reliable in helping you to get rid of debt successfully. In addition, enrollment and monthly fee for a debt management plan may vary from one agency to another. Some agencies may charge a few hundreds a month while other may only cost $20 or less. You may have to take into consideration of the monthly fee as it will be a huge lump-sum when being add-up for years as the plan may take a few years until you fully pay off your debt.

2. Make on-time payment

Late payment hurt more than the debt management plan itself. You have to protect your credit score by ensuring you make your monthly payment to your account on-time. Always pay early and allocate enough time for your check to be cleared and transfer to your account so that the credit counseling agency can pay your creditors on-time. Although there will be comments stating you are paying an account through a credit counseling agency in your credit report. The comments won't hurt your credit score in the least.

3. Monitor your debt counselor

Even though you make payments to your account on-time, but if the credit counseling agency makes late payment to your creditors, your credit score will also be affected. Therefore, you should ensure that your creditors are paid on-time by monitoring your credit bills carefully. If you discover a problem with bills paid through your debt management account and the problem is not resolved by the credit counselor, then report the company to a local consumer protection agency or file a complaint at the Better Business Bureau.

Summary

Enrolling into a debt management plan won't hurt your credit score as badly as your may think. But, it does affect the easiness of your future credit application. However, you could minimize the negative impact of debt management plan by following the above steps.

Irish Credit Cards with the Best Designs

Depending how you interpret the word "design," you can pick a "best" in many ways. If you're looking for a credit card that looks nice, then there are credit card issuers like Capital One whose platinum MasterCards can be personalized in many different ways. However, if you get a credit card with the lowest interest rate that does not have a "smart chip" as some European Visa cards do, you can personalize your card in an almost infinite number of ways with credit card skins.

Think of credit card skins like the "skins" that people choose to dress up their iPod. It's like a wardrobe of tiny clothing that won't keep your card from working like it's supposed to (unless you have a "smart chip" Visa). Credit card skins are basically super thin stickers that you apply to the front of your card with a hole over where your name, card number, and expiration date go.

There are websites where you can choose from a dizzying array of credit card skins with every kind of graphic or message you can imagine, from gay pride to preppy Argyle designs. Creditcovers.com has hundreds of designs to choose from and an opportunity to make your own design and make royalties from it if it sells.

Businesses can order custom credit card skins as unique and fun promotional giveaways. You can also make your own graphic credit card skins using a template in Adobe PhotoShop or a similar graphics program using t-shirt transfer paper and a color inkjet printer. Once you have the design the right size and the right shape (with the hole for your name, card number, and expiration date), print it out onto t-shirt transfer paper then cut the design out with scissors. You then put spray mount on the card, peel the backing from the transfer paper and place the design on the card. Put the ironing paper that comes with the t-shirt transfer paper over the card on an ironing board or reasonable facsimile. Preheat iron to "low." Iron the card for 15 seconds. Check if the design adheres. If not, iron for 15 more seconds. But be careful, lest you melt your credit card with too much heat. Let cool. After the card has cooled cut away excess transfer paper with a mat knife.

Sometimes the best design for a credit card is the one that brings you the lowest interest rate. Once you have that, if it isn't beautiful enough for you, then skins are the way to personalize your card into a statement about yourself.

Ten Real Keys to a Good Credit Score

You know how important your credit score is, so try these ten approaches to make your credit score soar.

1.Don't ever close your oldest accounts - these give your credit history its timeline and the longer, the better.
2.Have a good mix of credit. This includes retail store charges, car loans, credit cards, gas cards, mortgages.
3.Have someone co-sign for a credit card. Ask a close friend or family member with good credit to add you to their account as a signer. This is known as “piggybacking” and allows you to leverage the good history as your own.
4.Don't ever max out a credit card by combining all your debt on it if it puts you near your limit. Instead, spread a large debt over two or more low interest cards.
5.Call creditors to ask for a lower interest rate. Many will give it to you. If you don't ask, they won't offer.
6.Work out a payment plan with creditors if you're struggling. This will prevent your account from being turned over to collection agencies - the kiss of death to your credit score.
7.Ask a family member for a loan to pay off debt; their terms will likely be far more agreeable.
8.Increase your credit limits. This will help your credit utilization ratio. When your limits are increased, your existing debt represents a lesser percentage of your total available credit (the goal is to bring it under 30%). But do NOT increase your balances.
9.Pay bills immediately as they arrive. If you send the money out before the next statement is generated, your creditor will report your paid balance ($0) versus your statement balance (what you owed).
10.Use old cards occasionally. Your oldest accounts count toward your credit history length but may not be factored in if you don't use them every 6 months or so.
Soon, you’ll be on your way to excellent credit health and can use your credit rating to save money each month through lower interest rates on new loans and credit cards.

Health Insurance and Business

How do the major stakeholders feel about employer contributions to health care? At present, one of the major expenses for companies, large and small, is health care for their employees-it is so prohibitively expensive that small business in some cases cannot offer insurance to their employees, putting them at a clear competitive disadvantage in the race for talent. Even large companies take a large hit.

Health insurance reform is goaled to bring down the costs for care, across the board. But how will employers be affected? It depends upon which version of the bill eventually passes. East Coast Health Insurance a national health insurance broker (http://echealthinsurance.com) has been researching both sides of the bill and offers this analysis:

The House: Employers with annual payrolls of over $250,000 would need to contribute 72.5% of premium costs for individuals (65% for families); if they fail to do so, they must contribute 8% of wages in payroll taxes (a smaller percentage for those with lower annual payrolls). There are exemptions for companies with lower payrolls (one committee proposal exempts companies with payrolls under $500,000, for example) and exemptions for employers who can show that providing health insurance at that level would lead to job losses.

The Senate: The Senate's more straightforward options requires employers with more than 25 workers (regardless of payroll) to contribute at least 60% of the premium costs or pay penalties (on a sliding scale dependent on full time or part time workers). Another option that is being discussed would not require employer contributions-but requires subsidies (to cover low-wage workers) from any employer who does not provide coverage.

The President: President Obama's concern is for the crippling effect employer mandates could have on small business-one of his biggest areas of focus. He has advocated exemptions for small businesses as a result.

Interest Groups: The interest group most heavily involved here are the various business lobbies. Wal-Mart (the largest private employer in the country) actually came out in support of the idea of large companies insuring their employers, with the caveat that they should not be forced to pay for the portion of employers health care currently covered by Medicare.

Obviously, businesses large and small will be affected by the new policies; as with the rest of the country, they will benefit from reforms that lower overall costs, as they are most responsible for shouldering those costs.

In the end however health reform may be just the tip of the coming global economic issues that remain unsolved. This is evidenced as many of our national institutions and local government treasuries find themselves facing enormous deficits from underfunded hospitals and medical expenses. Many of our political fixes are seemingly just passed for the sake of passing a bill or to show a political victory in a battle not a war.

If health care care costs continue to escalate at even half of the expected and recent growth trends many more than 50 million Americans will find themselves not only without health insurance but without health care.

Additionally and even more of a concern is the doctors that are avoiding service in primary care and other similar areas of shortage in the medical field.

Health Insurance Co Ops

Health Insurance Co Ops

As legislators continue to debate the viability of the "public option" for health care-that is, a government-run health care marketplace for those who are looking for insurance options and unable or unwilling to get them through work or elsewhere-one idea that keeps being floated is a health care co-op. East Coast Health Insurance (http://echealthinsurance.com) a national health insurance brokerage has been vocally supportive of any health care option that extends medical coverage not health insurance to more people.

A health care co-op, briefly, is a group of consumers who have banded together to provide insurance and health care options and is run by members. The people who are a part of the co-op, those it cares for, are also its governing body and manage costs, structure, organization, negotiation with doctors and providers, etc. ECHealthInsurance believes that the mutual form of health insurance has been polluted by the current not for profit health insurance companies that seem to all have private jets.

There are co-op concepts out there for things such as power, and more widespread in the Midwest for farms. The benefit that many see in co-ops is that it puts insurance decisions and management in the hands of people themselves, instead of large companies, without involving (or over-involving) the federal government.

It certainly sounds like a great alternative, especially if the public option doesn't eventually get passed. The reality is, however, that a health insurance co-op (with two notable exceptions, in Minnesota and in Washington) hasn't been able to succeed in this country. One of the major reasons is the strength of the insurance companies, who have already established billing and relationships with many providers out in the marketplace today. As any doctor or hospital will attest, working with established insurance companies is enough of a challenge (submitting forms, paperwork, etc just to get paid)-they are unlikely to want to take on additional smaller groups (such as co-ops) who will not have the market strength to negotiate on prices, access to providers, etc. In fact, it's argued that a co-op might have difficulty in even getting through to talk about their plan; the system is fairly closed right now with caregiver and provider relationships fairly locked in.

Furthermore, if the point of a co-op is to improve competition in a market-in order to get better pricing across the boards for anyone seeking insurance-that argument is quickly lost in the reality of a small group of even very intelligent and well-prepared co-op members trying to take on major insurers to get better pricing. The lack of competition in the health care marketplace today means that major insurers are able to for the most part control pricing according to their terms and a small co-op will be unable to compete.

The reality is that there are only a few major insurers per market, who consumers have access to. There are a large number of insurers in the US, to be sure, but per market these companies have done their homework to determine where it makes sense for them to offer options and care. They are not going to go into a market that is already provided for by multiple carriers and try to compete and bring down prices; instead, many focus in major areas. A co-op is unlikely to survive against a large company who offers insurance options in a given area, if the main point is to be able to provide lower cost care.

There are also other obstacles to creating and running a successful co-op; it is far more complex, for instance, than sitting on your homeowners' board. There are state licensing requirements, administration fees and costs, and a huge amount of knowledge that is required with regard to health care policy and providers. The start up costs alone are fairly staggering, with regard to establishing a brand and presence, retaining members, and negotiating any contracts.

The appeal of a co-op-especially for those who are familiar with the concept, such as those who participate in a power co-op-is that they are taking on the big insurers without government help. The reality is that without government help-for start-up costs, insurance regulations on pricing, who is covered, and the like-it's likely too difficult to maintain and succeed at such a venture.

What Is ETF Trend Trading?

Below you will find a short overview on ETF (Exchange Traded Funds) trend trading, which will allow you to make a more informed decision about whether it is the right type of investment for you.

It was during the 90's that ETFs were introduced into the world of investment. Today, they are used as an investment vehicle, traded comparable stocks or shares on the stock exchanges. Investors are attracted to the funds because of the tax efficiency that they have. They are also attracted to the similarity to stocks and the low costs, which are definite benefits.

When you get into ETF trend trading, you will find that it is similar to mutual funds, in so much that they allow investors to acquire various types of securities through funds. However, those two are distinguishable.

ETFs maintain all of the features that ordinary stock have. As an example, limit orders, options and short selling. However, they still give easy diversification, expense ratios and tax efficiency of the index funds. Unlike the mutual funds, they will not have as much of a net asset value that is calculated each day.

During the trading day, ETFs will experience value changes as they are sold and bought. They have a tendency to trade at the same price as the net asset value has been set at. Most of the ETFs will be tracking and monitoring the financial index. As an example, the Dow Jones Industrial Average.

It has often be said that ETFs are one of the most innovative types of investment to come about in the last two decades. In deed, studies have shown that around two-thirds of professional investors have changed the way that they build their investment portfolios as a direct result of ETFs.

Many investors have a tendency to invest in the ETF shares as a long term investment, instead of short term one. This is because they have the possibility of being economically acquired. However, some investors do prefer trading ETF shares regularly in order to utilize investment strategies that they have learned.

If you are new to ETF trend trading, and you want to learn investment strategies specific to it, then you might want to consider taking an online ETF trend trading course. From them you will be able to learn various tips and secrets of the trade which will put you in a position to start earning good money from your trading as quickly as possible. There are various websites offering such courses, so it shouldn't be too difficult to find one that matches your level of trading experience.

Earn Money On the Web thru Effective Web Marketing

The word wide web is an adventuresome and superb place to be. It permits us to search various subjects and communicate with folks all around the world. With the internet, everything seems possible. It is even better to get ourselves updated with the newest reports, trends and occurrences in the world we are living in. The Net has damaged down the barriers that were stopping us to reach the world before. Now, it is time to explore this complete new sector of internet and make money on the internet.

Although day jobs and part time ones are the most conventional ways to earn money, we currently have different options with more flexible time schedules. The web contains many chances to make money. A method to make money on the internet is to form our own website. The traffic that our internet site gets is essentially the foundation for the money that we make. Search engines and networking sites create good amount of money because it has a lot of traffic every day. Most of the people cannot live a single day without using the Net and communicating with their friends and family. This is what makes the networking sites generate lots of income. Varied folks around the globe have a certain curiosity about different topics and the best way to get info is thru the net. Search engines are and integral part in searching for information through the internet. They have already organized the information to make searching simpler. If search engines and networking sites are too much for us to make, we are able to create a simple website which answers a certain need of the people. It must be topical in some form to attract folk and create web traffic. If we find maintaining our own internet site too hard for us, we will be able to just create internet sites for other people. There are firms who need people to create their web sites to cater to their customer's needs and to extend there money earnings thru web advertising. This is the work of web programmers and website designers. They create solutions for websites to extend the net traffic and to reply to the desires of the firm's clientele. These roles require more than merely a shallow knowledge of the web. This is precisely the explanation why it pays well.

There are more ways to make money on the web which is much easier to do than the above mentioned roles. We can be a independent writer or a blogger. All we need is a good command of the english language and a basic know-how about sentence construction. We do not have to have a masters or even a degree to do this. The topic that we have got to write about depends on the required article of our employers. It may be anything under the sun so research is sometimes a part of this job. We will be able to also make money through answering online surveys. Most firms pay us when we answer their surveys because they need feedbacks referring to their goods and services. There are websites which help us earn every time we view them. This is known as PPC. With all of these options, we will be able to now see the web in a new light. Instead of just browsing the internet for nothing, we could actually earn money from it.

Top 10 Bankruptcies Of The 20th Century By Iain Mackintosh

Celebrity bankruptcy has become so common that many now hire financial advisors to keep an eye on their bank accounts and stop them from overindulging on wild extravagances and unworkable business ventures. Nobody, no matter how famous or rich, is immune to the perils of debt. In that way the celebs are just like the rest of us, but they’re playing with much higher stakes.

Donald Trump: billionaire entrepreneur

Trump, currently worth approximately $3 billion, has certainly had his fair share of financial disasters. In 1992 the three casinos he then owned - the Taj Mahal, Castle and Plaza - went bankrupt, burdened by more than $1 billion in debt following the 1990-91 recession. But he climbed back from the brink of personal bankruptcy and chronicled his return to billionaire status in the 1997 book ‘Trump: The Art of the Comeback.’ Trump's casino empire went bankrupt again in 2004.

Meat Loaf: rock star

Meat Loaf spawned some of the largest selling albums of all time, but things turned nasty for him when, in 1981, he changed managers after discovering that his were stealing his money. They had all of Meat Loaf’s assets frozen and sued him for breach of contract. They also spread rumours that he was violent and had threatened people with guns, and a battle-worn Meat Loaf ended up declaring bankruptcy. In 1986, Meat Loaf found a new writer, John Parr, and started recording a new album. Unfortunately, the producer put a dance beat underneath every song, which proved to be a huge mistake, and Meat Loaf ended up going bankrupt for a second time.

Anna Nicole Smith: Model/Actress and 1993 Playboy magazine ‘Playmate of the Year’

Tragic Anna Nicole Smith entered the limelight in 1994 when, at the age of 26, she married 89-year-old oil business executive and billionaire J Howard Marshall. In 1996, Smith filed for bankruptcy in California as a result of a $850,000 judgment against her for sexual harassment of an employee. The former model died from a drug overdose in February 2007, five months after the death of her son Daniel, aged 20, who had also overdosed on drugs.

M.C. Hammer rock star

M.C. Hammer of parachute pants and ‘Hammertime’ fame filed for personal bankruptcy in April 1996 as a result of dwindling album sales and a lavish lifestyle. He was $13 million in debt. After this rapid fall from grace, MC Hammer spent most of the late 1990s as a punch line in the music business. Nelly, in his year 2000 breakthrough hit ‘Country Grammar’, announced his intention to ‘blow 30 mill like I'm Hammer’

George Best: Manchester United Footballer

Manchester United football legend George Best will always be remembered for his dazzling skill on the pitch, but it was the accompanying champagne and playboy lifestyle which ultimately led him to an early grave. Best’s partying and decadence degenerated tragically into alcoholism, bankruptcy, a prison sentence and, eventually, a liver transplant. Following his death in November 2005 the News of the World published a picture of Best at his own request, showing him in his hospital bed, along with what was reported to be his final message: ‘Don't die like me’.

Walt Disney: Oscar - winning film producer, animation & theme park pioneer

Disney did not lose his riches once he had found them, but it was a major struggle to get there in the first place. As a young entrepreneur Walt Disney formed his first animation company in Kansas City in 1921 and made a deal with a distribution company in New York. Flushed with success, Disney began to experiment with new storytelling techniques, but his costs went up and then the distributor went bankrupt. He was also forced to declare bankruptcy in 1923 and at one point could not pay his rent and was surviving on dog food.

Gary Glitter: Glam Rock star

Gary Glitter, the King of Glam Rock, has had an unusual life. After excessive drinking and drug taking in his earlier musical career, he was declared bankrupt in1980. However, Glitter, aka Paul Francis Gadd, says he was only declared bankrupt because ‘somebody didn't fill in the right forms.’ Just as he had begun to turn his life around, Glitter was confronted with allegations of paedophilia, and in 1999 he was convicted for downloading 4,000 child pornography pictures and was listed as a sex offender. Glitter’s reputation was further tarnished when he was permanently evicted from Cambodia in 2002 for suspected child sexual abuse offences.

Oskar Schindler: activist who saved over 1000 Jews from the Nazis

In the 1930s, a young Oskar Schindler changed jobs several times. He also tried various business ventures, but soon went bankrupt because of the Great Depression.

By the end of the war, Schindler had spent his entire fortune on bribes and black-market supplies for his Jewish workers. Virtually destitute, Schindler did not prosper in post-war Germany, and eventually he emigrated to Argentina in 1948, where he went bankrupt again. Returning to Germany in 1958, Schindler had a series of unsuccessful business ventures. He then settled down in West Germany and tried again - with help from a Jewish organisation - to establish a cement factory. This, too, went bankrupt in 1961.

TLC: R&B/Hip-Hop/Pop group

In 1994, not long before the release of the trio’s second album ‘CrazySexyCool’ (which was to sell over 11 million copies) band member Lisa Lopes was arrested on arson charges. In an alcohol-fuelled fit of rage, Lopes vented all the frustrations from her often-stormy relationship with Andre Rison, burning his Atlanta mansion to the ground and vandalizing several of his cars. In 1995, TLC filed for bankruptcy, claiming debts of over 3.5 million dollars, in part stemming from Lopes' insurance payments over the arson incident.

Kim Basinger: Oscar - winning actress

Extravagant Basinger found herself into trouble when she bought the town of Braselton, Georgia for $20 million. It was around the same time that she dropped out of the movie ‘Boxing Helena’ after expressing concern over nude scenes. Main Line Pictures sued the star of Batman and 9 1/2 Weeks for breach of contract, and the ensuing court case was of Hollywood proportions. The producers' lawyers even tried to stop Basinger having children - as this would diminish the sum they might reclaim. Basinger filed for personal bankruptcy in 1993 and was forced to sell the town of Braselton.

Resource: http://www.isnare.com/?aid=216072&ca=Finances

What Are Certificates Of Deposts? By Peter Kenny

Many consumers have found that putting money into CD's (certificate of deposit) accounts is a good way to earn additional interest over regular savings accounts. Just like the regular savings account that most of us are familiar with, money that you put into a CD will earn interest, and usually it will earn more interest than a simple savings account.

One major difference between a regular savings account and a CD is that the money that you put into a CD has to remain in the bank or credit union for a specified amount of time in order to earn the full amount of interest. You can take the money out of a CD but you will have to pay a penalty.

The basic rule of thumb for CD's is to not use money that you believe you will need to use before the maturity date. In other words, you should only buy into a CD if you can afford to leave the money alone for the amount of time required.

All certificates of deposit will have a maturity date. This is the date when you can withdraw the money without having to pay a penalty. The length of time for CD's varies, so make sure you understand what you are buying.

In the event you should need to cash out the CD before it matures, most banks will charge an early-withdrawal fee. These fees are usually equal to about three to six month's of interest but, again, this can vary, so check with the bank.

Generally, most CD's mature in three months to five years, although 10- and 20-year CD's are also available. The amount of interest offered will vary depending on the length of time of the CD.

Consumers should know that CD's are protected under the Federal Deposit Insurance Corporation (FDIC) as long as they were issued through a bank. This protects consumers from loss should the bank go out of business.

Most certificates of deposit will earn compounded interest. Compounded interest means that the interest your money earns is added to the total amount of the CD so that the next time interest is calculated and added, you will earn even more.

For those who have extra cash and can afford to invest it and leave it alone until maturity date arrives, certificates of deposit are a good idea. They are a safe and effective means of earning interest on your money. They may not be as exciting as some other forms of investments, but they allow the owner to sleep at night, knowing their investment is not going to vanish overnight.

CD's can be great gift ideas for grandchildren and other members of the family. If they are bought early enough, they can be used to help fund future education needs as well. Because they can be purchased for relatively small amounts of cash, they are often affordable to many families that otherwise might not be able to invest. Most banks and credit unions will have literature that you can read to learn much more about CD's and how they work.

Resource: http://www.isnare.com/?aid=215174&ca=Finances

Accountants: More Than Just Bookkeepers

For many people, the job titles of accountant and bookkeeper are interchangeable. After all, doesn’t a bookkeeper maintain the accounts of a business by tracking accounts receivable, accounts payable, rent expense, payroll, etc.? The answer is yes, a bookkeeper does perform all of these accounting functions. So why does an accountant get paid so much more than a bookkeeper? Aren’t they one in the same?

To answer this question, we can first think back to geometry. To say that a bookkeeper is equivalent to an accountant is like saying a square is equivalent to a quadrilateral. Both are shapes with four sides. But a square is a specific type of quadrilateral with all four sides equal in length and four right angles. A quadrilateral, on the other hand, is more encompassing. A rectangle, a square and a trapezoid all are quadrilaterals. All have four sides, but it is the length of those sides and the angles between them that differentiate these shapes. The same holds true for accounting. Bookkeeping is a very specific part of accounting which looks at the tracking of money being spent and earned. We all do bookkeeping by (hopefully) balancing our checkbooks. But accounting, like a quadrilateral, is much more encompassing. Accountants use a technique called matching, which goes way beyond standard bookkeeping. Beyond basic bookkeeping, accountants must make decisions regarding the “how, when and why” of documenting a businesses finances. Matching is a principle used to allocate debits and credits to certain accounting periods and reconcile across types of financial statements. Although there are strict laws governing accounting, there is a certain amount of flexibility that allows accountants to have some control over the outcomes of their financial statements.

As a more specific example, let’s compare straight-line and double-declining balance depreciation. To oversimplify, in straight-line depreciation the cost of the equipment is divided by the number of years of its “useful life” (less the salvage cost, or final “worth,” of the equipment once it has reached the end of its useful life). This gives a depreciation amount that is the same year one as it is year ten. It is a very neat and reliable method to use, as there is no variation in the fixed amount.



With the double-declining balance method, however, the amount of the depreciation is much more the first year than it is the tenth year. Think of the interest on your mortgage. During the early years, the majority of your mortgage payment is interest, compared to the final years when almost the entire amount paid goes to principle. We all know that the tax advantage of a mortgage is that you can deduct the interest paid. Your tax deduction, much like the tax deduction using double-declining balance depreciation, is more the first year than the tenth year, since you pay more interest early on. Using the same principle and accountant can elect to have a greater deduction for depreciation, or a greater offset to the revenues generated, by choosing the double-declining balance method. This is not as neat, but it allows for more cash to be reinvested in the company during the first few years, when it may be more needed.



As you can see, accountants have a lot more responsibility for the financial success of a business, both on paper and in the eyes of potential investors, than do bookkeepers. Although bookkeepers do perform some basic accounting functions, please do not confuse them with accountants.

Accounts Receivable Financing- be Inspired!

Benjamin Zander and his wife wrote a book entitled: “The Art of Possibility; Transforming Professional and Personal Life”. Their idea is that “you can create a passionate energy permeating The Art of Possibility that will be a true force in your life. You can make your own rules.” Their book is inspirational. You will be inspired if you buy and read it. The question is: how does this pertain to accounts receivable financing?It’s all about attitude, enthusiasm and point of view regarding how to conduct your business. Can you make your own rules regarding how banks, commercial finance companies and other financial entities operate? Of course not. Can you make your own rules regarding how you utilize the financial recourses that are available to finance your business? Absolutely!Here are three examples how to harness the power of accounts receivable financing sometimes with other types of financing to grow your B2B business.Case Study One:A Solar Energy Company that designed and supervised the installation of renewable energy systems was unable to obtain bank financing. They were one of the area’s lowest cost providers of solar panels, system design and supervision. One of their biggest assets was State Solar Tax Credits that are paid to homeowners who install the solar energy systems. An obligation from a State to a consumer is not within the definition of an account receivable. In other words, it could not be financed because it was not an obligation to a business. Using the art of possibility, the homeowners were persuaded to assign their solar tax credits to the Solar Energy Company. This transformed a consumer receivable into a commercial accounts receivable. Voila! The Solar Energy Company received accounts receivable financing it needed to grow.Case Study Two:An individual purchased an Importing Company that had been financed with a bank’s SBA loan. As collateral for the loan, the bank placed a UCC1 filing on the accounts receivable and inventory of the business. UCC refers to the Uniform Commercial Code in effect throughout the United States of America. In some respects, it simplifies the process of lending, selling and borrowing nationally. In other ways it is very complex. A UCC1 filing by a bank usually prevents any further financing because there is no collateral left to be financed. It is similar to a first mortgage loan on a house. If you have a 95% loan on your house, no other financing is available on the house because there is no equity to lend on. Using the art of possibility, the Importing Company was successful in convincing the bank to subordinate their UCC1 filing to another commercial lender’s UCC1. The Importing Company convinced the bank that it would be mutually beneficial to lower the bank’s UCC1 lien to a secondary position to allow a commercial finance company to offer new accounts receivable financing and inventory financing. Voila! The Importing business has a new credit line available for growth. It is now more profitable and the bank is more likely to be repaid. This is a win-win situation.Case Study Three: A start-up Clothing Company involved in manufacturing, distributing and designing T-shirts landed a substantial purchase order for their product. The product was to be made in China, and the Clothing Company lacked sufficient funds to pay for the costs of manufacture and distribution. Using the art of possibility, the Clothing Company obtained a letter of credit to guarantee the Chinese factory of payment, purchase order financing to pay for the T- shirts upon delivery, and accounts receivable financing to pay the purchase order company upon delivery of the goods to the customer in the US. Accounts receivable financing can help your B2B business realize the art of possibility for growth and profits. Voila!Copyright © 2007 Gregg Financial Serviceswww.greggfinancialservices.com

How to Finance Your Franchise Business Opportunity

You have found the best franchise for you and are really excited about its future and your new business. However, how are you going to pay for it? Many franchises require a significant investment and a large amount of liquid money that many individuals don't have. Fortunately, there are a lot of financing options available to help you finance your franchise business opportunity
.Please keep in mind, however, that you should consider financing your franchise before you actually get your heart set on a particular franchise. The reason why is that financing can be a challenge and is the most important thing you should consider before actually opening a franchise. So, spend some time researching how to finance your franchise business opportunity to get a better understanding of how the entire process works.Your FinancesFirst, you need to determine your financial situation. If you are not in a situation where you can afford to embark on a new business opportunity that may have cash flow issues in the beginning, then you should reconsider buying a franchise at this time. If you are current on all of your bills, have more holdings than debt, and make enough money to live on comfortably while saving then you may be prepared financially for a franchise. If not, then you might want to get your finances in order first. If you are doing well, and have some savings to invest, then a franchise may be a great opportunity for you.FinancingThere is a lot of information that you will need to provide in order to get financing. This includes your financial records from loans and debt payments to account balances and tax returns. Make sure all of this information is up to date and well organized before submitting it for financing approval. The more financial information you provide the easier it will be for lenders to determine your financial situation and subsequent financing options.Financing by FranchisorWhen you buy a franchise many times the franchisor will offer some percentage of financing to help you get started. The franchisor you are working with will heavily influence the financing options. Keep in mind, however, that just because you are buying a franchise and decide to go with franchisor financing the application process will not be any easier or more lenient. Also, you will need to invest some of your own money in the franchise because 100% franchise financing is highly uncommon.Additional FinancingA Small Business Administration loan is a great option for additional financing for a franchise. Also, most banks are willing to finance successful franchises because they have a proven business model. Private investors may also be another option for financing your franchise opportunity.

How To Find The Best Home Mortgage Loan? By Alan Lim

Once you have found the home of your dreams, you want a dream home mortgage loan in order to pay for it. You also want to find a lender who will pull no punches and surprise you with hidden fees later on in the process. Follow these steps in order to find the best possible home mortgage loan for you.

The first step

There are two basic kinds of home mortgage loan ; an adjustable rate mortgage, which is also known as ARM, and a fixed rate mortgage. When you decide upon a fixed rate home mortgage loan, the principal and interest payments will remain the same for the life of the loan. When you utilize an adjustable rate mortgage, the interest rates can change anytime. How often and when it will change will depend upon the kind of ARM you have, as well as the length of loan. Finding out which type of loan will serve you best will be the first step to take to find mortgage rates you can afford.

The second step

The next thing you should be looking for when you are looking for home financing is to find a lender that will offer you the best deal. It is easier than ever to comparison shop for a home mortgage loan when you use the internet as a tool. You can find many lenders in your area that want your business, and can offer you some terrific rates. Look past the rates and see what kinds of fees they charge for the different services you will need in order to complete the loan process as well. Don’t be afraid to ask questions; there are so many lenders competing for your business that most companies will be more than happy to answer any questions you have no matter how silly they may seem to you.

The third step

After you have done your homework and compared prices of different lenders, make a list of the top two or three lenders that are offering you the best deal. If one of the lenders on your list has pre-approved you for a loan, that lender should be at the top. It is always smart to try to get pre-approved when you are searching for a home mortgage loan as it makes the whole process go smoother. What can be more traumatic than finding your dream house and making an offer and not getting approved for a home mortgage loan?

The fourth step

Before you put your signature on any loan papers, be sure the company you are dealing with has a good reputation in the home mortgage loan community. You can check with the Better Business Bureau as well as do a bit of research on the company from which you are thinking of borrowing money. Once again the internet can help you. You can find reviews from previous customers to find out how they liked working with a certain lender. Making sure the company you wish to do business with has a sterling reputation can save you heartache and stress in the end.

Resource: http://www.isnare.com/?aid=182897&ca=Finances