Archive for the Financial Information category
Franchises
By Admin on September 4th, 2010
Franchises
A franchise is a method of doing business whereby the franchisor leases or licenses the right to use a name, products, trademarks, business methods or format to a franchisee in return for a percentage of the annual sales, or a recurring payment. The advantages of franchises are fairly self-evident, both to the franchisee and the franchisor. The franchisee has the advantage of a turnkey operation in a business which has already been proven. The products are defined, the methods workable. Help is available in all aspects of the business, from selecting a site, to lease negotiation, to licensing requirements. Training and troubleshooting is available. The franchisee doesn’t need to compete with tried and true businesses in the area; the franchisor’s name is enough to garner a market share. Since name recognition is an important part of sales volume, a recognized name will do much to have a positive cash flow, during those all important early months of operation. The new business owner doesn’t need to try to determine where to spend precious advertising dollars; the advertising is done on behalf of the entire chain or franchise operation. The new business owner doesn’t need to resort to trial and error to determine which products are most effective; the market testing and product trials have already been completed by other, earlier marketers. The advantage carries over from the consumers, who may be more willing to purchase a product when they know precisely what to expect. For the franchisor, the advantages are even more obvious. So long as the brand and formula are carefully defined and followed; the businesses under the ultimate control of the franchisor can spread rapidly, both geographically and in sales volume. A significant income can be earned without the hard work of meeting and dealing with customers face-to-face. In addition, the franchisor has a built-in and captive market for all his products with little financial commitment. Disadvantages are also inherent in the operation of franchises. For the franchisee, the cost is significant. The price paid for training, mentoring, brand name and trademark recognition does not come cheap. Because of quality and image control, the franchisee may not be allowed to search for less expensive alternatives. The franchisee has very little control over which products are sold and how they are presented. They may be required to do signage upgrades, uniform changes, or dcor modifications without input as to whether the changes are needed. The disadvantages to the franchisor may occur when the franchisee runs the business in a way that is not up to the standards set. Much damage can be done by an incompetent or renegade franchisee before the situation is corrected. Still, the growth of franchising as a way of business has been so wildly successful that many communities are limiting its expansion in order to protect the existence of local, non-franchise businesses.
Best car loan rates
By Admin on September 2nd, 2010
Best car loan rates
The quest for the best car loan rates is never ending. People spend months trying to locate as many lenders as possible and getting quotes from each of them so as to determine which one of them is offering best car loan rates. However, as much as the best car loan rates depend on the lender, there are certain other factors as well which are being discussed in the following paragraphs. The question is how we get the best car loan rates. The first way to get best car loan rates would be to see to it that our credit history and our credit score is proper. Credit score is one of the primary determinants of car loan rates and any blemish can cause a significant increase in car loan rates. Thus, maintaining a healthy credit score can help you get the best car loan rates possible. The best way to do it is to ensure that you do no default on payments which are due or do not go for late repayment of loans. Also, if you take responsible financial decisions, then your credit score should not suffer much. Another way to get best car loan rates would be to go for a secured car loan. In a secured car loan, you have to pledge a collateral equivalent to the loan amount. This collateral can be any asset that you may have like property or home. Even the car that you are financing through the loan can be pledged. The other options for car loan is that of unsecured loans where no collateral is required. Secured loans are much less risky for the lenders as they can take possession of the collateral in case of a default by the borrower in repayment of the loan. This collateral can then be used to recover the loan amount. Since the risk is less, the lenders are willing to give these loans at a lower rate of interest. There are many lenders for car loans. Now a lot of online lenders have also sprung up. Applying for loans with these online lenders in not only convenient and easy, it is very fast as well with approval coming in even a day. Also, you can get the best car loan rates with these online lenders as this market is very competitive and each lender is trying to woo customers by offering lower interest rates than their competitors. However don’t trust all lenders who claim to be offering the best car loan rates. Many of them are not very reliable and they might have other hidden costs involved in the loan. So keep your eyes open and don’t fall for anyone claiming to have the best car loan rates.
Telemarketing surety bond
By Admin on September 1st, 2010
Telemarketing surety bond
A telemarketing surety bond is a type of license & permit bond which is required to operate in the telemarketing industry. These bonds are in place to protect the consumer from wrongful solicitation by a telemarketer. Many states have strict laws that govern telemarketers and thus have enforced a telemarketing surety bond to get the license to operate. A telemarketer solicits the selling of products, services or goods over the phone. In the case a telemarketer fails on any of the statutory obligations, a telemarketing surety bond will fulfil any claims that the oblige makes due to lapses on the part of the principal, the telemarketer in this case. The premiums of a telemarketing surety bond are higher than other types of license and permit bonds because there are very strict guidelines against telemarketers in most of the states in the United States. Legislators have felt that telemarketers have entered into the American lives which sometimes borders on intrusion. It is because of this that there are stiff fines which are in place in case the telemarketer does not follow the procedure. Telemarketers are now finding it increasingly more difficult to operate because of the do not call program initiated which forbids them from calling many of their clients. There are a lot of other restrictions on the operation of a telemarketer. For example, the law states that the telemarketer has to state their full name and the business that they represent to the client. However, these things are very easy to forget and new employees do make the mistake of not stating these facts which could lead to a claim to be made by the client. Because of high attrition in the telemarketing industry, this problem has become worse as newer employees are always joining the industry. Second problem is of falsity of information. Most telemarketers are rewarded financially if they are able to make certain amount of sale. Because of this fact, sometimes because of greed, telemarketers might not be completely honest with the client. These plus a whole lot more of regulations makes it very difficult for a telemarketing company to operate within the permits of the law and there are multiple avenues where in a small mistake could land the company into trouble. It is because of this very nature of the industry that the telemarketing surety bond premiums are so high. As more and more newer legislations are put to place, one could see the premiums of the telemarketing surety bond to rise even further. These tough regulations have made it very difficult for the telemarketing companies to operate. This has put serious question mark on their financial stability, one more reason why bonding companies are very critical when they are looking at a principal for issuance of a telemarketing surety bond. All the factors mentioned above, the stringent regulations, the nature of the industry, the operational difficulties etc. make the underwriting of telemarketing surety bond one of the most difficult and risky. No wonder that bonding companies take time to issue these bonds to telemarketers.
Commodity mutual funds
By Admin on August 30th, 2010
Commodity mutual funds
The mutual funds are a financial instrument that has changed the economic future of the ordinary people for ever. Previously it was not possible for ordinary people to invest in commodities. It was a highly capital intensive game that ordinary people could ill afford. The mutual funds revolution has brought the democratization of investments in commodity markets also. By using the means of the commodity mutual funds even an ordinary person with modest means can get all the benefits of the commodity markets. Let us first try to understand a little economics about commodity market. If something comes from the earth or is grown on the earth then it is called as commodity. This definition means you can include oils, sugar, and cocoa. Grains, metals, minerals, livestock, cotton etc in commodities. The most interesting part of the commodities is that the prices of commodities go on increasing along with the inflation. The stocks markets react in opposite directions. This means the commodity offers you best possible hedging against the inflation. When inflation is on rise, the stock prices are down. This is the reason why commodity mutual funds are best hedging instruments. In commodity markets, future trading is a big business. There is lot of profit in this business. But the investments required are also heavy. The mutual funds are the only solution available with ordinary people to participate in commodity market Future contract is the way commodity market works. The commodity mutual funds invest in these future contracts. These futures are traded on exchanges. The total investments in these types of futures are to the tune of fifty percent. The rest of commodity fund money is generally invested in bond money to get some sort of stability. This also covers for the expenses of the commodity mutual funds. For the first time futures and options market is coming within the reach of the ordinary people in retail form due to commodity mutual funds. It is possible to hold portfolio of commodities as per your own mix. There are commodity mutual funds which are index funds. If you want, you can follow a particular index for security. Goldman Sachs Commodity index or GSCI is made up of twenty two different commodities. The proportion is as per their world consumption pattern. Thus energy has 55% weight age in the index. The agriculture commodities have 255weightage in this index. Oppenheimer Real Asset Fund QRACX is a well known commodity mutual fund. It tries to mirror the composition of futures hold as per GSCI index. The other famous commodity mutual funds are PIMCO. It has 35% energy futures investments only. Remember that GSCI will make this 55 %. The PIMCO is more interested in investments in industrial metals like gold. If the fee structure does not take away much of your profits, invest in commodity mutual funds.
Business finance broker
By Admin on August 29th, 2010
Business finance broker
With the rapidly advancing trends in modern business, the role of the traditional financial broker continues to be redefined in order to suit the growing needs of modern businesses and corporations. From the traditional role of selling policies and living on commission earnings, today’s business finance broker focuses on building a lasting and interactive relationship in order to meet the financial goals of the business enterprise and its safeguard the present assets and earning capability. Most modern business finance brokers help businesses to plan out their working strategies that would meet changing needs and shifting circumstances. If you want to achieve your corporate goals and attain the level of profitability that they intend to reach, getting a business finance broker is absolutely necessary. A business finance broker can bring with them a wealth of financial know-how and rich networks of financial experts that could be an advantage to one’s business and even personal life. With the help of a broker, you can easily decide on making the right investments or the best loan offers that would be best for your expansion plans. These financial experts can either help you make the right deals that would bring in the profit that you have always dreamed about or make the right loan with the cheapest interest rates and advantageous terms and conditions. A good business finance broker can help untangle the complexities of modern businesses and assist with other investments and expansion strategies that would build up your company’s future. Becoming a business finance broker is a good career option, with an annual salary starting from $175,000 to $850,000 inclusive of bonuses and other privileges. But earning that huge amount needs a lot of hard work. Good interpersonal skills, ability to work independently without supervision and having a good background record and credit history are very important in order to start working as a finance broker. A good finance broker must have the self-confidence, integrity, professional competence and the needed skills in order to make his clients to depend confidently on him for their investments as well as in order to easily attain his business goals. While there is no specific college degree required for most financial brokers, a college degree is a basic requirement. However, completing a business-related degree like economics and finance is an added advantage especially when applying with established brokerage firms. Before one can work as a business finance broker, he needs to undergo an on the job career training with a brokerage firm and afterwards pass the General Securities Registered Representative Examination which is a prerequisite before one can get his broker’s license. Business finance broking can be a rewarding job and with a strong determination to do the best and excel, one can easily be successful in this field.
Buy a franchise
By Admin on August 27th, 2010
Buy a franchise
Buying a franchise is a huge step even if one has determined that being in business for oneself is the proper course of action. The potential franchisee will already have reviewed the pros and cons of franchise versus independent business opportunity. The greatest strength of the franchise is in its ability to bring independent business owners together under a common business concept and trademark. The old saying goes that there is strength in numbers and it certainly holds true in franchising. The greatest weakness of the franchise is the loss of control because most decisions about inventory, location, style and cost are already determined. The business owner relinquishes control for security. Once the determination has been made to buy a franchise, the next step is to educate oneself about various franchise opportunities. Take the time to think about businesses that excite you. What are your entrepreneurial fantasies? It is not yet time to make a final decision, but to begin attending trade shows in fields that interest you may be helpful. You can talk to people who are working in the field and ask for advice or do’s and don’ts. Think about whether you prefer indoors or outdoor work. Do you like to talk to people or would you rather be behind the scenes? All these decisions will impact your final choice of chosen franchise. Next, as you draw closer to a final decision, you will need to take the time to read and understand the UFOC Uniform Franchise Offering Circular. This document is required by law to be provided to you within a specified time frame that is well before any funds change hands. The UFOC is made up of three sections, the first being business information, the second is a set of audited financial statements, and the third is a copy of all forms and documents which you must sign in order to become a franchisee. You should take the time to read and understand each part of this rather lengthy document. Sometime during the course of your search, you should take the time to consult a professional, at least seek legal advice and tax or accounting advice. One cannot overemphasize the importance of good records from the beginning. Two types of face-to-face interviews should be conducted, one with the franchisor and one or more with current franchisees. Know in advance the specific questions for which you need answers provided, and ask them until you get satisfactory answers. The final stage in your quest to buy a franchise is to obtain adequate financing. You need to make sure you are aware of all the expected and unexpected costs before committing money. This information is best gained by discussing understanding the UFOC and by interviews conducted earlier.
Probate surety bond
By Admin on August 26th, 2010
Probate surety bond
A probate surety bond is a bond which guarantees that the administrators, trustees, executors or guardians of an estate will fulfil their responsibilities faithfully and also do accounting of the funds honestly. These bonds are always filed in the probate court, hence the name. The probate process is a legal way of resolving the claims made against a property and to distribute the property. Probate surety bond is required to manage the estate of deceased or an incompetent individual or in case the owner of the estate is a minor. Usually, the executor of the will is also appointed to take care of the probate process. This executor is authorized to pay for the expenses of administration of the estate and also pay out against outstanding claims from the estate. A probate surety bond is a legal obligation which is used by the court as a measure to ensure that the property is distributed rightfully as per the will. Thus, these bonds are a kind of insurance that the person appointed to oversee the probate process will fulfil their duties in a fair and legal in accordance with the law. The cost of the bond is usually shown as expense to the estate. However, there are ways to bypass the probate process and in turn bypass the need for a probate surety bond. This can be done by setting up a trust and transferring all the estate to the trust. The trust can still be run by the person who is owning the estate, but on the death of the owner, the trust will retain the estate and thus all its rights which will be passed on to the person who has been nominated to head the trust. It is important that the executor of the probate has an attorney as the annual premiums to be paid for the probate surety bond will have to be made through the attorney’s office. Usually, probate surety bond of $25,000 and below has only one time premium, while bonds of higher amounts have annual premiums till the time the court exonerates the bond. Probate surety bond is quite easy to get. However in certain situations, the bonding company may go for some scrutiny before issuing a probate surety bond. One such case could be if the executor is indebted to the estate he is supposed to be the administrator of. Another case could be if the estate is in some form of business which will continue to operate in which case the bonding company may require a written order from the court to permit him to continue handling the business. In case there is a relationship between the executor and the minor or the incapacitated person, then the bonding company requires certain special clauses to be fulfilled.
Aig bailout
By Admin on August 25th, 2010
Aig bailout
Bailout is a serious concern in the field of finance and economics, as it involves the intervention from the government to save a corporation or entity going bankrupt. The AIG bailout factor is quite the same as the government cannot let a company like that of the AIG to get busted. If any thing like this was to happen, then the impact would lead to a worldwide financial crisis and cause serious repercussions in different sectors of life. The concern of AIG bailout became critical after what happened to the Lehman Brothers, due to the reason that the company had outstanding loans, but nothing worth to pay them. The entire AIG group is by far the biggest insurance corporation in today’s world, supporting over 100 companies throughout the globe. At the times of severe crisis the companies look up to the AIG group to aid them in getting out of the trouble at hand. However, under the recent circumstances the AIG was unable to help out the companies as the assets they possessed could not be retrieved back in the form of cash. This situation called for emergency and the company owing to its current condition requested the Federal Reserve to help them out. Considering the crisis that would befall if the company crashed down, the US Federal Reserve promised the AIG bailout. The government came to the rescue of the company on the 16th of September, 2008 and promised an amount of $85 billion for the AIG bailout, to keep the company going. This was the highest bailout by the government for any private company in the history of United States. It is true that the government would interfere in bailout matter, only when they find the company’s loss to be far greater threat to the economic condition over a larger scale. Since the government considered the AIG bailout they took an amount of the equity shares that was something around 79.9% of the total. This has now forced the government into the field of insurance, and allowed AIG to keep stable and not sell out the leasing division for aircrafts. Even after the AIG bailout the company had to take a loan of $37.8 billion on the 9th October, 2008, from New York’s Federal Reserve Bank. Such crisis may befall various companies but the ones, which are really huge conglomerates and their fall could damage the global economy greatly, are considered for bailout immediately. This is a common phenomena, but the AIG bailout would have to be considered as one of the major steps taken by the government, considering the calamity that occurred by the failing of the Lehman Brothers, bringing down the prices of stocks and shares in various domains.