Determining Particle Finance In Today’s Economy

In the financial sector, wealth determines many things. However, taking a step back to determine wealth itself, introduces an interesting notion. Wealth is being created not by making and selling things, although this is still a large part of the economy, but by taking, trading, and managing risk in the financial sector. Because every asset carries some risk, the market creates ways to lay off the risks we don’t want or can’t bear to an insurance company or by the use of some financial derivatives. The idea of breaking down every risk into smaller and smaller parts was given the name “particle finance,” and modem technology is giving us the means to find the most efficient balance between risk and return.

Charles S. Sanford Jr, who coined “particle finance,” described it in this way: “Risk management is the process of moving clients closer to their desired risk profiles by helping them shed unwanted risks or acquire new risks that suit their portfolios. At times, this can be done simply by matching a client who wants to shed a risk with one who wants to acquire that risk. More often, it involves unbundling, transforming, and repackaging risks into bundles tailors to fit the particular needs of various clients.”

Many of the ways to manage risk turned out to be less than perfect and sometimes gave a false sense of security. The creation of all these new risk-sharing techniques has produced a whole new cottage industry. Hardly any of these derivatives would be possible without the power of the computer.

As economics change, the conventional wisdom often lags far behind reality. Thus, in today’s world of rapid change, old maps and concepts of economic development will no longer help us navigate the waters of the new economy. In fact, they may prove to be as misleading as a map drawn by Gastaldi, the official mapmaker f the Venetian Republic, that showed the Strait of Anion, a body of water linking Hudson Bay with the Pacific Ocean-the so-called Northwest Passage.

Gastaldi’s map was wrong, as no such body of water exists. Nevertheless, it had a profound effect on accelerating the exploration of the North American continent; one adventurer after another sought the fabled Northwest Passage in an effort to collect the huge prize offered by the British Admiralty.

Strictly speaking, there are no economic maps to the brave new world in which we live today, so we must determine at least its general shape without them. What we do know is that intellectual capital, the driver of the new economy can be leveraged indefinitely. Whereas fixed costs may be high, as in the production of a movie or the writing of a piece of software, the marginal cost of replication approaches zero.

Corporate Financing – Educational Training Program Options

The financial status of a business or organization is extremely important to their success. Students can step into corporate finance schools and degree programs to exclusively study how to work with businesses in this capacity. Educational training program options for corporate financing are available at several levels.

The financial activities of a corporation have to be monitored and managed in order to keep a concise record of all monetary funds. Training teaches students to properly work with finances to ensure stability and minimize any risks associated with spending and investing money. Educational programs are widely available at the bachelor’s, masters, and doctorate’s level of education. Programs at the bachelor’s degree level offer training specifically for corporate financing. Students that desire to pursue an advanced degree at the graduate level need to enroll in a finance program with a concentration in this field.

International marketing, accounting, financial reporting, and organizational psychology courses are some main topics studied in a bachelor’s degree program. Students will find that most programs award Bachelor of Science degrees that take approximately four-years. In this introductory program, common courses may include:

*Intro to Corporate Finance

Students study the roles of professionals, which include management and investment decisions. Students learn how businesses raise money for different investments and what risks are involved within that process. Subjects such as valuation, financial strategy, venture capital, and dividend return are all explored through a course like this.

*International Corporate Finance

Financing is explored for businesses that have international work. Students study the procedures for global investment and finance. The management of finances inside today’s high global competitiveness is examined as students learn about multi-national budgeting, debt service, and interest rates. The finance practices of America are contrasted with Europe and Asia.

*Financial Strategy

The evaluation and prospects of a finance strategy are extremely important to ensure success. Students will work through topics that explore how major investments are made. The calculation of risk and the chance for monetary growth are main areas studied within this type of course. The ability to create and implement a financial strategy that is competitive is also learned.

Several career opportunities are open to students that complete a bachelor’s degree program. Students can step into positions as stockbrokers, fraud investigators, investment bankers, and financial reporters. Each of these career options train students to work directly with corporate financing.

Further education at the graduate level provides students with advanced skills and knowledge that helps them obtain executive careers. Many areas such as real estate, risk analysis, valuation, and record keeping are looked at to prepare students for the field. Different markets and global organizations are also discussed. These finance areas are typically explored through different concentrations. Major curriculum areas can include revenue optimization, financial engineering, and international monetary policy. Becoming a bureaucrat, auditor, or a professor are all career options for students that finish graduate training.

Accounting and Finance Career Preparation Programs

A love of numbers can lead to a lucrative career in various fields. Students that have an interest in numbers may find an accounting program is right for them. Accredited programs can be pursued through several degree and concentration areas.

Completing a degree program in accounting prepares students to step into various careers that involve accounting and finance. Students learn to work with businesses, organizations, individuals, and government groups on their finances. Accounting programs are available to students at the associate’s, bachelor’s, master’s, and doctorate’s degree level. Student’s career goals will determine which degree program to complete. Other possible accounting and finance career preparation programs can include:

Accounting Technology
Bookkeeping
Corporate Financing
Finance and Banking

Several concentration areas like accounting technology, for example, lead to an associate’s degree. Students that want to complete a higher level degree program can continue education inside a graduate accounting program. Corporate finance also awards undergraduate degrees unless students advance their training inside a finance degree program. To complete the right program students should research the industry’s requirements for the careers they are interested in obtaining.

An associate’s degree in accounting examines several key areas of the field at a fundamental level. Accounting, finance, and acquisitions are some main areas covered. The goal of a program is to prepare students to analyze the financial status of a person or group and be able to create documents. Students learn the Generally Accepted Accounting Principles procedures, which helps the transition into the profession. Students can enter careers as general accountants, budget analysts, and loan officers.

To gain the best career options in accounting and finance students should complete graduate degree training. Schooling covers the foundations of accounting more in-depth. Students study risk management, assurance, financial management, taxation, and much more. Master’s degree programs train students to understand business and taxation. Through subjects like advanced auditing, corporate taxation, and financial research students are able to step into multiple careers. Students can enter careers in both the private and government divisions of the industry with a master’s degree. Students that want to enter positions as professors typically complete training at the doctoral level. Tax research and finance analysis are some course topics examined. Possible career options for students that have a graduate degree include risk assessors, corporate executives, financial managers, and auditors.

Students that pursue another area of accounting and finance such as corporate finance will find education to be highly focused. Students that complete a bachelor’s degree program will explore financial reporting, international market, and personal investments. Students learn to work with businesses by providing help with cost management, investment, and market regulation. Upon graduation students can become investment bankers, fraud investigators, stockbrokers, and more. Advanced careers will have to be pursued with a graduate degree in finance.

Getting A Business Financing Loan

Business financing loans are a line of credit which help people who are in business. There are different kinds of business financing loans that are offered to different lenders either to raise funds or loan capital to your business in order to expand your company.

Although there are many ways also to finance your business and one should have sufficient cash flow within the existing business you have so that the lender will be able to finance the growth of your company by its own means or you can turn to a bank or other financial institutions that can provide different variety of loans.

Having a business financing loan is not as easy since they have some criteria or financing programs where in you meet the following criteria such as:

Your business must have commercial customers
Your business must be established and must have consumers or customers.
They don’t finance on real estate projects

Some of the business financing programs:

Business are available of every size
Easy to obtain
Have many advantages over conventional business loans
Can be set up in a few days

There are some business financial loans that don’t require you to have a good personal credit or showing countless financial statements since their financing program or loan allows being flexible to help your business grow but before looking for a business financing loan, you need to know how business loans work and used.

You can see that there are many sources of financing loans that are geared to types of businesses but the sources have certain criteria for investment and loan but that depend to the area which they participate.

These are some of the areas of Business Financing Loan:

Commercial Property
Start-up Financing for business
Loans for Government
Purchase Order Advances
Leasing Equipment
Commercial Financing
Invoice Factoring
Asset Sales Leaseback
Investment Banking
Angel Investor s which is known as informal investor
Venture Capital known as Private Equity Capital

But private money business financing loan is different since it includes equity loan, hard money as well as private money loans. They limit only to small business investment companies, private investors, business angels, ventures capital firms and commercial lenders.

The loans have two types for you to choose when in regards of terms in payment. There is the short term and as well as long term which suits your budget and you will notice also that there are lots of commercial lenders, business loan brokers and business financing companies had gone out of business due to global crisis and many people were having loans anywhere and everywhere in order to survive.

If you need financing for your business, you need to plan and study hard of it since financial institutions requires business plan that includes detailed start up cost, marketing plans, monthly expenses, projected profit, etc. Remember that having a business one should do hard work, passion, and determination and have dedicated workers who desired to have the business of their boss grow with success.

So If you think that your business is doing good and need some additional capital for expansion, then you need to plan for that and think it over to have a successful business.

Bad Credit Financing – A Brief Guide

The term ‘financing’ might sound a bit fancy, but it’s just another way of saying ‘loan’ (albeit a loan with a specific purpose). Basically, a loan taken out solely for purchasing one thing with no money left over afterward is known as financing – for instance, borrowing money to pay for a car is ‘car financing.’ In most cases, financing loans can be arranged through the people providing the service you’re paying for, although they merely act as brokers for specific lenders rather than lenders themselves; so using the same analogy, car dealers can generally offer finance to people buying cars from them, as do many home improvement firms.

Of course, since financing is exactly the same as a loan, that means the same rules apply when you try to get it: you’ll be subject to a credit check, asked to fill in paperwork and generally means tested to ensure you can afford to pay the money back. That’s not so good if you’ve got bad credit, County Court Judgements (CCJs) or any other form of financial difficulties, since those will count against you in your application. That isn’t to say you won’t be approved in some cases, because the lending options available may be flexible enough to offer higher rates of interest to compensate for your bad credit situation. However, you’re far more likely to be turned down using the limited finance options provided by the people you’re buying from (be it a car dealer, home improvement company or whoever), so it’s best to instead source your financing from another lender once you know what you’d like to buy.

Thankfully, there are many lenders who specialise in financing for people with bad credit – some offer very specific loans for cars, while others will simply provide a Bad Credit Loan for the exact amount required. Not surprisingly though, these loans will usually have a significantly higher rate of interest so it’s unwise to just go with the first firm that’s willing to accept you. As with all Bad Credit Loans, shopping around is the key to finding the best rate – you can do this yourself or turn to a loan broker, who can do all the work in the fraction of the time it would take you. So long as you specify that you want the loan for financing purposes and can show what you’re looking to buy, finding the best rate for you shouldn’t take very long at all.

In Summary

Bad Credit Financing…

Can be hard to get if you try to get them from service providers like car dealerships
Is best sourced from an external lender before you try to buy whatever you’re after
Will generally have a higher interest rate than normal financing loans
Isn’t impossible to get if you employ the services of a good loan broker

How To Get Investment Property Financing In A Tight Market

Cash is King When it Comes to Investment Property Financing

The best type of financing when you want to get a property at rock bottom pricing is no financing. This means that you use all cash to buy the property so that you can get a really low price. The easiest way to do this is to find private investors who are getting low rates of return on their retirement or other investment funds. Then, you can make “all cash” offers on commercial or residential property and use your investors money as your financing source.

Creative Methods For Investment Property Financing

In a market where lenders are hesitant to provide financing for investors, you can put together creatively financed offers as a way to help a seller out of a tight situation, and get a great deal for yourself in the process. You’ll need to make sure that you’re working with a motivated seller, something that is easy to find in today’s real estate market. Then you can make offers using creative financing methods such as a Master Lease Option, Owner Carry Financing, and buying while leaving the Existing Financing in place.

No matter what method of creative real estate financing you choose, the advantage of getting started now is that you’ll be able to build your real estate portfolio without having to wait for lenders to relax their lending criteria. This gives you the chance to get into owning more real estate at a time when prices are at a low point. Smart investors work to connect with private parties who may be able to provide funding for their real estate deals.

Types Of People That Might Provide Cash For Your Investment Property Financing

I’ve discovered that it’s hard to tell if someone is going to be a good candidate to provide you with the funding you may need for your investment properties. Sometimes the person who looks like they don’t have much money at all can end up being one of your best sources for investment property financing. So don’t rule out anyone when you are putting together your list of potential private lender prospects.

The best way to approach someone is to simply mention that you are buying houses or commercial property to take advantage of all the great deals that are available. Then ask them this magic question:

“Do you know of anyone who might want to be earning higher rates of return in their IRA or other retirement funds?”

If they say, “Well yes, I do!” then you’ve just found another possible source of investment funds. Once you get a positive response, make sure that you don’t chase after them. Instead, You’ll want your private investors to be chasing after you. So take it easy. Say something like:

“Everything I have right now is fully funded, but if I did come across something new, would you want me to at least let you know about it so that you could decide if you even had any interest in getting a stronger rate of return or not?”

Then you make sure you have their cell phone, and email address so that you can “tickle” them with potential investment financing deals. In an email or on a phone call you can casually mention the big property that you were looking at last week that “Didn’t meet the requirements” that you demand for your investors who help to provide the funds for your investment properties.

The Key To Getting Investment Property Financing

The formula you are going to be following is to mention a potential investment property financing deal you are working on, but then “take it away” because it either did not pass your review or even better, it did meet your requirements, but other private investors that you are already working with got there first and now it is no longer available. It’s strange, I know, but people always seem to want things that they can’t have. So use this to your advantage when you are looking to attract investment property financing.

Financing A Home in Oregon

If you’re an Oregon homeowner, then you surely have benefited from the rise in values of homes in the state. In the recent years, home values have increased which allowed homeowners to build home equity faster. If you’re someone who’s looking for a new place to call home, then you should consider relocating in Oregon. With attractive home financing offers, you’ll have nothingto lose but everything to gain when decide to get an Oregon home.

If you have a good credit, you shouldn’t have any problems in finding yourself a low interest home financing deal. For somebody with a not so good credit, you’ll still be able to get home financing, albeit with a slightly higher interest rate. If you want to take advantage of better offers, you might want to work with improving your credit score first.

Oregon home financing rates are relatively cheaper than those in other bustling cities such as New York and Los Angeles. But you’re sure to get the kind of comfort you would ever want in a home and in a neighborhood in Oregon. Whether you’re considering getting one of those popular “green homes” or maybe get a home in the new developments of Central Oregon, it could be the most profitable investment you can make.

To get better rates on your home financing, you shouldn’t just settle on an offer without first conducting extensive research on what other home financing comapanies have to offer. Unlike in shopping where you can maybe impulsively buy that attractive dress on display, you need to carefully consider your home financing decisions. It’s not something that just adds a few dollars on your credit card, or something that you’ll be able to pay for in less than a year.

In looking for the best home financing deals that would work within your budget, you would have to spend a lot of time and effort. You wouldn’t be able to get the best bargain if you don’t take the initiative to do more researches yourself. There are a several home financing services in Oregon. You can even find national agencies which may also offer competitive home financing rates for houses in Oregon.

When you have set your eye on one of the beautiful homes in Oregon, the next thing you need to do is find a home financing agency. The good thing about these financing agencies in Oregon is that they offer very low rates. They also have flexible terms. You can even get home financing with a term of more than thirty years.

Getting home financing for an extended period may however mean higher interest rates. So if you think your total household income can cover all your expenses, you should consider shortening your financing loan to get the lowest financing rates possible. Short financing loans also mean getting home equity in a shorter period of time.

This is how homeowners benefit from their Oregon homes. Because of lower interest rates and less expensive homes, homeowners can quickly achieve equity over their new homes. With home equity, it’ll be easy enough for you to get other loans to make your life more comfortable. Your new home will help you establish a good financial stability among your lenders.

So don’t delay and start working in getting your dream home. There are actually over 200 lenders in the Florida state which can provide you with home financing schemes so you can settle in Oregon. You don’t need to worry as to the reliability of these agencies as they have been proven to provide high quality service.

Just try applying for a home financing service. If you think it’s too much hassle to personally go to their offices, you can actually just sit at home and complete an application form online. You’ll surely be impressed at how smoothly their financing process applications go. But before you decide on which agency to hire, make sure that you have fully understood their terms and conditions. Having prior knowledge of the basics of home financing will give you the advantage of being able to select which scheme would work best for your needs and financial capability.

If you’re not so sure which home financing service to take, you might want to consult a loan counselor in Oregon. Loan counselors are experts in the state laws concerning home financing. They can explain in detail everything that you need to know and do. With that, you should be able to develop enough confidence to make your decision.

Car Finance Options and Solutions

Because most people don’t have cash to buy new cars, it is often a choice between leasing and using an auto loan. We will further analyze the benefits of each type of car finance option. The choice that you make will heavily affect your income over the next years. The first thing you should realize is that the decision of buying with cash or lease doesn’t involve just the money aspect, but the time aspect as well.

The car finance option you choose depends on the importance you give to owning a new car. If you value having the latest models on the market, then this will justify spending more money on this privilege. If your view of a car is orientated towards transportation and comfort (you want a car for practical reasons), then owning the newest model should take a few steps back on your priority list. You should think about these facts first and then consider the more tangible issues of car finance options.

The car finance deal that you are going to make starts when the salesperson asks you what kind of car finance option you want to use. Your answer can be one of the following: buy the car, lease the car or pay cash for the car.

If you want to buy the car, the dealer will ask you to fill in a credit application based on your credit scores. An auto loan will be arranged through the dealership. This car finance option usually is a 36-60 month endeavor. The longer the time the lower the payments will be. The amount of money you pay for this car finance option depends on your interest rate, down payment and total sum of loan. Also be careful, as the dealer will want you to make a large down payment. This car finance deal is based on the fact that, until you pay for the vehicle, the lending institution will own the car. The car’s ownership papers will be sent to you after all payments have been made.

There are some important aspects about car leasing that make it attractive to customers, such as: low monthly payments, low down payments and low maintenance costs. The main advantage is that a customer will get a car without giving too much money at once. The monthly payments are kept at a low level, lower than buying car with an auto loan. Another benefit of this car finance option is that the car will have a 3 year warranty and will be covered for mechanical failure during this period. As you can see by now, this looks very attractive and affordable by anyone, but there is a slight disadvantage (the same as in the case of a loan). You will have car payments until the entire sum of the car is paid. Only when you do this, the car will finally be yours.

From this point on the car finance deal will be over and if you have to begin leasing again the assumed responsibility of payment rates will last a long period of time again. The conclusion is that this car finance option (using the leasing method) is more expensive on a long term. Car leasing is actually the most expensive way to go, but those who favor it point out that over a 10 year period this car finance method is the best the average income customer can support.

If you are interested in leasing, this car finance option has some variations. All auto leases allow you to drive the car for a limited number of miles per year. The more you drive, the higher your payments will be. However, if you come to think of it, you save money in the long run. The contract will contain a residual price for the car, which you will pay at the end of the lease as the car passes into your possession. Be careful because this is the riskiest car finance deal of them all!

If you decide to pay cash for the car the transaction everything will be very simple. This is the most favorable car finance deal if your income can support such a large transaction. Negotiating with the dealer will most likely make this car finance option even more attractive. Choose wisely as every car finance offer has its own ups and downs, and every car finance company will try to persuade you into taking their option into account.

When buying a car, a lot of money is involved. Depending on the budget you are willing to spend there will be a car finance option to your liking. A compromise has to be made: one can either spend a lot at once, or spend a greater sum during a longer period of time. Your car finance option will affect your pocket anyway; it’s just a matter of how much money will be given in how much time.

Financing Your Small Business

If there were only two reasons for a business to fail they would be poor financing and poor management or planning. You can’t over-emphasize the importance of financing your business. Financing the business is not a one time activity as some might think. It is necessary whenever the need arises such as when expanding, modernizing etc. At this stage you need to understand the importance of exercising extreme caution and plan the utilization of capital. A wrong decision here can haunt your for the life of your business.

Are You Sure You Want To Raise External Funds?

For start-ups, it’s understandable that you need to raise capital through loans. But what about expansions and upgrades? Make sure that external financing is an absolute must before you apply. It is critical that you organize your finances at transitional stages but only after you make sure that you can’t do it yourself, either permanently or for some time. Equally important are the criteria of risk, the cost of not financing and how well it contributes to specific and overall goals of the company.

FINANCING TYPES

Equity Financing: Equity financing involves selling off of your shares (mostly partially) in return for cash and giving away that portion of ownership and rights to profits. Equity financing can be sought from private investors or venture capitalists. This brings about proper capitalization opening access to debt financing. Equity finance doesn’t need to be returned like loans unless your partner wants to withdraw.

Debt Financing: Debt financing is loan financing against some kind of guarantee of repayment. The guarantee can be collateral, a personal guarantee or a promise. Lenders restrict the use of debt finance to inventory, equipment or real estate. You need to properly structure the debt and the rule of thumb for doing so is giving long term debt for fixed asset loans and short term for working capital. The reason is that fixed assets generate cash flow over their lifetimes and have the benefit of lower interest rates as opposed to working capital loans.

Sources of Finance:

You can choose finance sources depending on your circumstances and the amount required.

1. Family and Friends: Small and short-term working capital requirements can be financed quickly through your own resources or through family and friends. The benefit here is the absence of the interest component (mostly.) This method of raising finances is handy even in early stages of business. You should be mindful, though, that disputes over money are the main reason that close relationships turn sour.

2. US Small Business Administration: This is the most prominent source for debt financing. The SBA doesn’t lend money directly but organizes and guarantees loans through various lenders and sources under its umbrella. Local governments, banks, private lenders, etc. disburse loans immediately to businesses approved by the SBA. SBA loans are available for various business purposes and at the lowest interest rates available.

3. Venture capital: Raising venture capital is organizing financing through selling shares whose value equals the finance you require. Essentially this means selling a portion of the ownership and control rights. It is essential that a proper valuation of your business’s worth is made before the deal is done.

Financing a business shouldn’t be hard provided you have established your credentials as a good manager, have collateral/assets, a convincing cash flow statement, genuine need, a proven track record, good credit history and a robust plan. This should not just save your business from collapsing but also allows it to grow and succeed.

Car Finance Company

Having a new car is one of the biggest achievements that most people can have. Other than financing education and buying a home, there is really nothing else that can compare to the huge expenditure that comes with purchasing a new car.

Therefore, only a few people can really afford to pay for a car outright. Most people rely on car financing in order to purchase a new car. But with the many car financing options available nowadays, it is wise to research thoroughly for a car financing company that offers the best rates.

Most car financing companies offer better deals compared to local car dealers. While it is convenient to have your car dealer provide you with the loan and plan, it is still better to get pre-approval from a car financing company because they offer more reasonable interest rates and payment options. To choose the car financing company with which to conduct your transactions, you have to consider two things: their rates and reliability.

Car financing companies vary on the interest rates they offer to customers. If they have seen that you have good credit history, the interest rate on your car financing loan may not be as high compared to a person with bad credit history. And if you really want to secure car financing with low interest rates, you should try looking for an online car financing company. By applying for your loan online, you save the company time and money, thus the savings from the cost of doing business are passed on to you.

In addition, you should also check the credibility of the company, especially if you want to do your transactions online. You have to make sure that the company you choose has been in operation for years. Aside from this, you can also ask your colleagues and friends who have already secured car financing from a car financing company about their experiences in loan application. They can recommend a suitable company to you.

Finding a car financing company for your loan application can be difficult if you do not know what to consider and where to start your search. But if you go online and ask trusted sources for their recommendations, you can easily compare car financing rates and select the best deal for you.