Did you ever play bartering games when you were a child? Later enerations fondly remember days in school when they went adventuring on the Oregon Trail via the computers on technology day. In financing, you can play the trading game again, in what’s known as trade credit. In trade credit, a buyer will purchase supplies from a seller who will finance the transaction and allow the balance to be paid in installments or at a later date. Startups and rapidly growing businesses most often use this form of attaining additional capital. Do your research and find a great partner to barter with. Often, if a solid business relationship is established, that one supplier can continue to help you in the long-term. The more history you develop with the supplier, the more easily you will be able to secure additional credit
purchases in the future. It’s time to brush off those powers of persuasion skills and put them to the test. It’s about being organized, prepared, and selling yourself- not quite surprising if you’ve been following this particular article series. The supplier will want to know such things as how much inventory you are currently seeking, as well as how much you might be looking for further down the road. In the beginning, it is likely that you will have to personally guarantee the
purchase price on the first inventory transactions. The supplier will also ask for a priority security interest in the inventory supplied. Gather your projections and present them to several possible suppliers in order to cover all your bases.
Life is a numbers game, so be persistent in your efforts and you will eventually be rewarded. The legwork you put into the front of things will ultimately benefit you and your business later on.
On the plus side, there is instant monetary gratification involved with this type of credit. The payment schedule is flexible and can be broken down into small amounts that can be paid over several months or years. You can have a number of trade credit accounts open, but make sure you can handle the payment schedule. You want to build bridges and not burn them. This will also help you establish those connections necessary to making your business a success.
Buying on consignment falls into the category of trade credit and can be a viable option for your business needs. Buying consignment translates to you paying the supplier only. In most cases, this method is most popular with those industries that
use electronic consumer products, furniture, or retail print products. It also lends itself to benefits of greater security for you and your business, as you will only pay the supplier for the goods if, and when, they are sold. The supplier will hold title to the consigned goods, but when sold you will keep a portion of the funds from the sale and return the balance to the initial supplier. It’s a low risk/no risk situation where if the goods don’t sell, you won’t be paying out of your own pocket, you only have to return it to the supplier. On the opposite side of the equation is the slight downside wherein trade credit usually involves a higher
purchase price. The vendors you are partnering with are often in a similar position as you. They are working diligently towards keeping their business afloat and successful. The higher purchase prices provide a greater sense of security to the
vendors and their business.
Sellers are also known for offering cash discounts in order to receive immediate payment. If this is a viable option for you, and best for your business, it might be good to take into consideration, as you would receive more of a profit from the sale. However, you want to have a strong sense of projected figures for the sale, know the current market for the product, and consider the current state of your business financial affairs. This way, you will not jeopardize your own finances, a good deal is not a good deal if down the road you end up digging deeper into your own pockets. You may be sick of hearing it, but the time you are taking to research all methods of procuring funds and inventory will ultimately greatly benefit you. The amount of time and energy that go into this research will almost directly correspond with your amount of success in business. You have to be willing to take those additional extra steps and sacrifice a sufficient amount of time in order to
create as much security for yourself as possible. Be the driving force behind your own success!
By: Aaron Dyer
Friday, February 13, 2009
7 Things to Consider When Choosing an Online Bank
Tired of tiny savings account interest rates? Feel like your bank isn't paying enough for the privilege of using your deposits? If so, it's time to move your money to a place where it will work better for you. Afterall, the whole point of saving is so you can watch your nest egg grow and in the current climate, it's not going to do that at your local bank.
Because of low short term interest rates (the amount banks charge each other for loans) high overhead and rising expenses, local banks simply can't afford to offer competitive rates right now. Here's the proof -- the going rates as of April 2008, according to BankRate.com, the Web's leading aggregator of financial rate information:
Traditional savings account .10
Interest bearing checking account 1.64
Money market account (MMA) 2.29 percent
6 month certificate of deposit (CD) 2.74 percent
1-year CD 2.96 percent
More competitive rates than these are available, but you'll have to move your money to an online bank which has fewer operating expenses to get them. With so many of them out there, however, how do you know which one to choose?
Here are 7 things to consider:
1. Look at the bank's Veribanc rating which assesses it based on the six CAMELS factors: Capital strength, Asset quality, Management ability, Earnings sufficiency, Liquidity, and Sensitivity to market risk. The strongest banks will have a green rating and three stars.
2. Make sure the bank is FDIC insured, meaning depositors are protected in case the bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
3. Is the bank offering competitive rates? Log on to www.bankrate.com and print out the current rates for the product you are considering to help you make a determination.
4. Determine how long the bank has been in business. If it has been around a long time, this will offer confirmation that the institution has been able to survive multiple downturns in the economy.
5. Find out if the bank charges monthly service fees, if you are required to keep a minimum balance and what happens if you fall below the minimum.
6. Look into how the bank handles deposits. Because there is no branch to visit, determine how long you'll have to wait for checks to clear before you can access your money.
7. Find out how many withdrawals you can you make in a given month. Some banks impose strict limits that may be unacceptable to you.
When you consider all these criteria, you'll discover a bank worth doing business with is Zions Bank, which according to Bankrate.com is currently offering the best money market rate in the country -- 3.25 percent.
Founded on July 10, 1873, Zions, which is a green 3 star bank according to the Veribanc rankings, operates full-service branches in ten Western states - but has online customers throughout the country. "We offer some of the best rates in the country because of our low overhead and customers repeatedly tell us they really appreciate the lack of fees," says Matt Wilcox, the bank's director of marketing.
The bank offers three different types of money market accounts which all have a variable rate of interest compounded daily and paid monthly. Up to 6 transfers can be made every 30 days. An unlimited number of withdrawals can be made in person, by ATM, mail or messenger.
If you don't need access to your money right away, the bank also offers CDs at a higher fixed rate of interest. These can be set up for lengths of time ranging from 90 days to 5 years. Like at a traditional bank, however, there will be penalties for early withdrawal.
by: http://doityourself.com
Because of low short term interest rates (the amount banks charge each other for loans) high overhead and rising expenses, local banks simply can't afford to offer competitive rates right now. Here's the proof -- the going rates as of April 2008, according to BankRate.com, the Web's leading aggregator of financial rate information:
Traditional savings account .10
Interest bearing checking account 1.64
Money market account (MMA) 2.29 percent
6 month certificate of deposit (CD) 2.74 percent
1-year CD 2.96 percent
More competitive rates than these are available, but you'll have to move your money to an online bank which has fewer operating expenses to get them. With so many of them out there, however, how do you know which one to choose?
Here are 7 things to consider:
1. Look at the bank's Veribanc rating which assesses it based on the six CAMELS factors: Capital strength, Asset quality, Management ability, Earnings sufficiency, Liquidity, and Sensitivity to market risk. The strongest banks will have a green rating and three stars.
2. Make sure the bank is FDIC insured, meaning depositors are protected in case the bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.
3. Is the bank offering competitive rates? Log on to www.bankrate.com and print out the current rates for the product you are considering to help you make a determination.
4. Determine how long the bank has been in business. If it has been around a long time, this will offer confirmation that the institution has been able to survive multiple downturns in the economy.
5. Find out if the bank charges monthly service fees, if you are required to keep a minimum balance and what happens if you fall below the minimum.
6. Look into how the bank handles deposits. Because there is no branch to visit, determine how long you'll have to wait for checks to clear before you can access your money.
7. Find out how many withdrawals you can you make in a given month. Some banks impose strict limits that may be unacceptable to you.
When you consider all these criteria, you'll discover a bank worth doing business with is Zions Bank, which according to Bankrate.com is currently offering the best money market rate in the country -- 3.25 percent.
Founded on July 10, 1873, Zions, which is a green 3 star bank according to the Veribanc rankings, operates full-service branches in ten Western states - but has online customers throughout the country. "We offer some of the best rates in the country because of our low overhead and customers repeatedly tell us they really appreciate the lack of fees," says Matt Wilcox, the bank's director of marketing.
The bank offers three different types of money market accounts which all have a variable rate of interest compounded daily and paid monthly. Up to 6 transfers can be made every 30 days. An unlimited number of withdrawals can be made in person, by ATM, mail or messenger.
If you don't need access to your money right away, the bank also offers CDs at a higher fixed rate of interest. These can be set up for lengths of time ranging from 90 days to 5 years. Like at a traditional bank, however, there will be penalties for early withdrawal.
by: http://doityourself.com
Bla BLa Want to Slash $500 off Your Auto Insurance?
blablablablablablabla..
You haven't spent less than $35 on a tank of gas in months, the family sedan needs four new tires and a brake job, and now, on top of everything else, your teenager just got his learner's permit. Add skyrocketing insurance rates to the long list of expenses tied to keeping your family mobile.
Insurance, however, is one expense you do have the power to reduce - especially if you're a woman with a good driving record. "The insurance industry recognizes that younger female drivers are generally involved in fewer claims and accidents than their male counterparts," says Karl Sowa of NetQuote.com, the Web's number one insurance comparison site. "That means a woman will likely be able to secure a lower rate than her brother, for the same type of coverage."
With the threat of a looming recession, women are finding it more important than ever to help their families reduce expenses. Of course, factors like what type of car you drive, where you live, how you use the car, and the age, sex and record of other drivers in your household will impact your overall rate. Generally, however, it's possible to save significantly on auto insurance simply by comparison shopping. At NetQuote.com, for instance, consumers save on average between $400 and $500 off their annual auto premiums, and for some preferred customers the savings can be nearly $1,000 a year.
Since time is money, and few of us have either to waste, the fastest and most cost-effective way to comparison shop for insurance is to go online. Web sites like NetQuote.com provide access to quotes from a broad range of insurers. Now, rather than spending hours on the phone calling multiple agents to get quotes, you can get the same information by filling out an online form that takes approximately five minutes to complete.
Within 24 hours, you can have multiple quotes from the nation's top insurers. Many NetQuote.com customers even find that they can actually improve their coverage and lower their rates at the same time. You can often realize further savings by bundling your auto and homeowners or renter's insurance policies with one company, since many offer multi-policy discounts.
by: http://doityourself.com
You haven't spent less than $35 on a tank of gas in months, the family sedan needs four new tires and a brake job, and now, on top of everything else, your teenager just got his learner's permit. Add skyrocketing insurance rates to the long list of expenses tied to keeping your family mobile.
Insurance, however, is one expense you do have the power to reduce - especially if you're a woman with a good driving record. "The insurance industry recognizes that younger female drivers are generally involved in fewer claims and accidents than their male counterparts," says Karl Sowa of NetQuote.com, the Web's number one insurance comparison site. "That means a woman will likely be able to secure a lower rate than her brother, for the same type of coverage."
With the threat of a looming recession, women are finding it more important than ever to help their families reduce expenses. Of course, factors like what type of car you drive, where you live, how you use the car, and the age, sex and record of other drivers in your household will impact your overall rate. Generally, however, it's possible to save significantly on auto insurance simply by comparison shopping. At NetQuote.com, for instance, consumers save on average between $400 and $500 off their annual auto premiums, and for some preferred customers the savings can be nearly $1,000 a year.
Since time is money, and few of us have either to waste, the fastest and most cost-effective way to comparison shop for insurance is to go online. Web sites like NetQuote.com provide access to quotes from a broad range of insurers. Now, rather than spending hours on the phone calling multiple agents to get quotes, you can get the same information by filling out an online form that takes approximately five minutes to complete.
Within 24 hours, you can have multiple quotes from the nation's top insurers. Many NetQuote.com customers even find that they can actually improve their coverage and lower their rates at the same time. You can often realize further savings by bundling your auto and homeowners or renter's insurance policies with one company, since many offer multi-policy discounts.
by: http://doityourself.com
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