Ways to renegotiate your loan

 

There are a lot of ways to renegotiate your credit on no matter what reasons you have to renegotiate your advance it is significant to enclose a lay down plan and you must have to be familiar with what you wait for from the lender and at what time you will renegotiate your advance. First way is to get in touch with housing and urban growth they will assist you to discuss with your lender and also they will let know about the administration mortgage details.

Make an effort to get ready the discussion details with your lender and also acquire documents of account information, income statements and up-to-date financial plan list of your family and also catch ready physically to make clear why are you call for to renegotiate your mortgage obviously and truthfully. You have to prepare to estimate lower importance rates for superior deal. Try not to keep away from the calls or the mails from the lenders and the most excellent method is you have to describe the lender previous than you go down at the backside on your mortgage expenditure. These are the major ways to renegotiate your loan from the lender or the bank.

 

Use of Equity and Debt finance through loans and debentures

 

Every business required finance to carry out its business operations. Finance is the bloodline of organizations. For business corporations finance come in the form of equity or debt. When a business is started, it is done by making an investment which is known as Capital. Equity refers to a share in the share capital of the company. The investor of the company shall keep all the profits with them or shall split it and can share with those who are willing to buy a share in the capital, and a person who buys a share is known as shareholder.

The shareholder will be entitled to net profits of the company after paying taxes and other statutory obligations. They would also have voting rights enabling them to participate in the day to day business operations. Any important business decision cannot be carried out without the approval of the shareholders. They are literally the owners of the company. If majority of the shares say more than half of the total shares are held by an individual or few number of people they control all the decisions in the company.

Whenever the company makes a profit, a part of it goes to the equity and thus increasing the value of individual share and when it makes a loss, it is split and divided equally over the equity leading to decrease in it its value.

Debt funds refer to loans and debentures. Debenture holders are entitled to receive periodical interest payments in return for the funds they have provided to the company. They do not have any voting rights except during meetings related to debentures and debenture holders. Debenture holders are the creditors of the company. They are entitled to receive their interest even if the company is earning profit or not. They enjoy a higher level of security than equity shareholders in terms of receiving their capital back. Debentures can be redeemed after the expiry of a particular period of time beyond which the relationship of the company and debenture holders comes to an end.

 

Vehicle Finance – what you should know

 

Finance is the source for any kind of buying or spending activity. There are finances in terms of loans available for things that are essential however costs more than what people call as affordable.

Vehicle finance means availing of debt for purchasing a vehicle. The debt can be availed from banks or financial institutions in return for a certain amount of interest. In some cases, borrowers may also have to pay additional service charges over and above interest rates to the lenders. Before applying for a vehicle loan it is essential for the borrower to analyze his credit history. Credit history rates to the past loans availed repaid and number of defaults in each loan or loans. Good the credit history better will be the chances of getting the loan sanctioned quickly.

Since the vehicle itself is a form of security, usually lenders do not ask for collateral security for vehicle loans, because if the borrower does not repay they always have the chance to seize the vehicle, resell it to recover the loan amount. However, in certain cases where the loan is extended for luxury vehicles or vehicles with prices above a particular level security in the form of land, property or bank guarantee may have to be provided by the borrower.

In case of default in payment by the borrower the lender can use this collateral security to recover his dues. The loan appraisal process would require the borrower to provide his personal identification documents, bank statements, income returns and other similar personal finance documents before the loan is sanctioned and vehicle is ordered for delivery.

Also, when the vehicle owner wants to resell the vehicle, if required they may have to show the ‘No objection certificate’ which is given as a proof for complete repayment of the vehicle loan.

 

Basic Financial Management for Entrepreneurs

 

Entrepreneurship is more than just starting or doing a business, it is coming out with a new idea, venturing into it and laying the foundation for the business set up. Entrepreneurship is donning various hats and becoming the master of it. If your business is in the baby stage where funds are low but demand is high you may have to engage yourself deep into managing finance in a better way so that you have control as well as an idea of where your money is being spent or being blocked.

The initial capital to start up a venture and then having necessary funds to finance the working capital which is required for smooth running of business are the two most aspects of financial management for entrepreneurs.

Entrepreneurs should basically give impetus to their equity and debt capital. It is essential to repay debts on a timely basis without any delay in order to convince creditors of smooth functioning.

Further, fixed assets should be financed only out of long-term funds to avoid corrosion of capital funds. Equity capital is the costliest form of capital for any business. The demands of dividend and growth are sky high requiring entrepreneurs to give satisfactory quarter and year end results that generate returns for the shareholders. For businesses that are funded by venture capitalists it is necessary that their share of return is provided for promptly in order to sustain investments and capital.

Further expansion plans cannot be charted out with the help and support of venture capitalists. Entrepreneurs should also train themselves in managing their organization’s finance in order to ensure that the economic resources are best used. Few do’s for entrepreneurs are saving funds for the future expansion, to allocate funds to ensure job security of employees and the firm and few don’ts are over pricing, rapid expansion, paying more salary than what the work is worth for and such.

 

Managing Finance during recession

 

After the world trade increased and several countries opened up their market, since then the global economy has faced several booms and surges and whenever there is a dip, the problems would be devastating with stock markets crashing, millions of people losing jobs, becoming paupers overnight, Govt. becoming bankrupt and such adverse economic effects.  The recent global recession which began in US was one of such incidents.

No manager would have expected the recession that rocked US economy in his wildest dreams. The effects of the depression are now slowly receding into history and the economy is showing signs of progress with business volumes and international trade picking up slowly but steadily. The biggest challenge for any organization will be to manage its finance during a recessionary period. It is quite possible all or at least a majority of the debtors to have gone bankrupt. Business would have dried up since domestic demand would have fallen drastically hitting all forecasts of sales revenues.

To handle finances efficiently during recessionary period all that a manager has to do is to ensure that only necessary and warranted expenses are spent for. Luxuries are to be hived and the organization should adopt a lean system of management where waste is negligible and financial transactions are carried out with maximum credit period available. It will also be wise to revise the credit period allowed to debtors as longer debtors collection period would result in a bigger risk of accumulating bad debts. Further, the organization should also consider scaling down its operations where it produces just enough inventories to meets its existing demand without stepping out of its comfort zone. One thing is people should not compromise on their basic survival needs and expenses for that and spending for it will help the economy to revive on its own.

 

Finance arrangements for vehicles

 

After the advancement of technology in the field of automobile, vehicles have become one of the most essential things needed for our survival. The dependencies of people on vehicles have led to the availability of finance options to buy vehicle in terms of vehicle loans.

Vehicle loans are the biggest drivers of any economy. They aid in improving the standard of living of individuals with a quick stride unlike any other loan facility. Vehicle loans are provided by banks as well non-banking financial institutions. They charge a rate of interest in return for making funds available to the borrowers. Borrowers will be required to submit their personal identification documents like state authorized identities, employer certificates, address proof, etc. as part of the appraisal process. Past bank account statements, income returns and financials may also be required in order to complete the financial appraisal process.

Before obtaining a vehicle loan online, it is advised that people should check with several financial institutions asking for a quote of the vehicle loans they offer and shall choose the most suitable one based on the interest rate, EMI or loan repayment options and loan schemes, margin deposit required and their financial eligibility and such factors.

A borrower of vehicle loan will have to pay a certain lump sum amount as down payment for the remaining loan amount to be sanctions. This is called margin money and can be paid to the dealer directly or to the financier. The financier determines the rate of interest and the repayment period depending on the margin money paid. The amount of loan will then be broken in down into equal monthly installments which the borrower has to pay without fail to bank or financial institution. Default in repayment will lead to legal consequences and repossession of the vehicle.

 

Loan Finance for Education

 

These days Education appears to be a no longer a noble service done to the society with more private institutions running them for name, fame and profit. It has become more of a business oriented concept where institutions are trying to earn maximum commercial profit out of student fees. Seeking higher education has become more costly.

Not everyone is lucky enough to get a scholarship, as they are less and are extremely competitive. For a family with average income levels it is not going to be easy to send their children to a well-established university for higher education. This is where educational loans come into the play as effective means of raising quick money. These loans can be used to pay fees until the student completes his course. The repayment obligation onsets only after the student complete the course.

Almost every bank in the country provides education loans. These loans are usually not provided for school education but are available only for graduation or for college education. There are also formalities to be completed for availing for loans for specific courses. The student’s past performance in studies may also be evaluated before providing education loans. These loans will not be given in cash but will be transferred to a bank account of the student from where the college fees can be remitted. Intimation from the university or college where education is sought may also be required before the loan is sanctioned.

And it becomes the responsibility of the students and their parents to repay the loan once they get a good job using their education and many financial institutions provide flexible repaying options for these education loans obtained. And when the student is unable to repay in the worst cases they are even offered loan settlement schemes under which they can negotiate time or interest in repaying the loan.

 

How finance helps Small and Medium Enterprises

 

Money is essential to begin and run any kind of business. Based on its financial capability in terms of assets, capital, operational size and such things a business is classified into small and medium enterprises.

As soon as an individual or a group of individuals come up with a new idea to venture in or want to expand their existing business set up, the biggest requirement for such a new enterprise or a small and medium enterprise is quick access to funds.

Although there are lot of government schemes that are enacted for providing financial support to budding enterprises it is not easily available for all quickly as and when it is needed. Finance enables a new firm to establish itself in its industry. It can buy the necessary raw materials and conduct research and development until coming up with a product that can be sold in masses in a promising market.

The company will also be able to keep itself floating in the market until it is able to establish a steady stream of income. In addition a strong financial background will ensure that the company is able to pay off its monthly dues of wages and salaries, factory repairs, maintenance, taxes, service charges and vendor bills on a timely basis. External sources of finance like angel investors, investment bankers and venture capitalists will also be able to help new enterprises in setting up a strong foothold until they are market ready for business. To conclude the need for finance is much more significant for a new business than one that already exists in the market.

Also, there is an increasing popular way of getting finance for businesses and it is venture capitalism whereby big financiers invest in capital of small businesses and get a hold of its share capital.

 

Corporate Financial Management

 

Finance is the bloodline of any business. It provides the necessary funds and working capital for purchasing raw materials, buying plant and equipment and for paying wages or salaries. It is essential for every enterprise to have a corporate financial management team or department which can control and carry out the financial operations of an enterprise smoothly. The department should have controls for payments, receipts and other financial outlay which are usually required during the ordinary course of business. Further, they should also be prepared to incur additional expenditure which was not estimated for in the budget allocations.

As a part of the corporate financial management process an enterprise should have various controls for calculating total cash flow, funds requirement for the immediate quarter, working capital requirements, ratio analysis, etc. These financial tools enable a company to organize its finances in a better way and plug all possibilities of revenue leakage. Further, it will also help in identifying situations where better financial control can be exercised for maximizing revenue returns. Corporate financial management is not a task that any amateur can take over and complete. It requires the exercise of expert knowledge and experience which comes only with academic qualifications and practical experience. That is why in Business owners prefer to have Certified Financial Experts as Financial Consultants to audit and monitor the entire end to end financial process.

In today’s business world, how complicated and complex be the business process it can be easily managed with the help of technology. With the aid of technology Corporate Financial Management has become an extremely easier task, there are several ERP software, financial statistical tools and Billing & Accounting systems that comes with separate module for Finance management which can be used for all sizes of businesses to manage to their short term and long term finance.

 

Top financial blunders done by every Businesses and Individuals

 

Money is one ultimate thing which is commonly needed and used by any individual across the world irrespective of their race, gender or background. When it concerns with money there are two things one is making it and the other is losing it.

You could be an owner of an operational business enterprise, or just a student, home maker or finance professional, it is essential to know where one can lose money. Quite often people lose money due to lack of planning. If one knows when and where they would require money well in advance it becomes easy to procure them without hassles. Last minute fund raising for any purpose will prove to be costly with high interest rates. Further, it is not going to be easy to procure money in the last moment from bankers, lenders or from anyone near and dear. Hence, it is highly necessary for people to manage the existing cash flow and thus be prepared for situations of necessity.

Budgeting and expense tracking is not just for accountants. It is essential for each and everyone to have a track of their expenses in order to know where they are over spending or being careless in spending money. An awareness of the needs and demands will ensure that money is being spent only for necessary reasons and not splurged unnecessarily. Credit cards are best if stayed away from and in case if you are planning to use them then a thorough understanding of the credit cycle and billing cycle along with interest and penalty charges are required. They are to be used only for very immediate and urgent situations as they come with very high interest rates higher than any bank interest rates of any other loans such as home loans, vehicle loans or personal loans.