Saturday 11 May 2013

Determining Your Investment Attitude


The stock market is a battleground of knowing when a business will reach full bloom and placing your money where there is growth. You need experience to develop a good investment strategy. Here are a few common investor attitudes and their effects on the growth and sustainability of your investments 



1.     The Patient Investor
A patient investor is one who works hard for their money and will choose their portfolio’s sustainability rather than having higher potential returns. A patient investor has the temperance to wait for quality companies to have their stock shaken down. They ensure low risks and look for quality companies that literally pay investors back through dividend stocks.

2.     The Risk Taker
A risk-taking investor is one who realizes proper business practices are important, but they choose to up the notch by taking their investments from big-name companies to these companies’ lesser known competition. Even if these companies fluctuate rapidly in a single trading day, they can tolerate the roller coaster ride to get improved returns.

3.     The Innovation Addict
An investor finds innovation and unique products the basis for investing in a company. New jet skis with literal jets will attract these investors. Most of these investors look for companies that try to defy the current market with new ideas and products. They look for inventors and innovators. However, they face great risks with their investments.

Thursday 9 May 2013

The Different Kinds of Financial Instruments


When I say stock market, usually, the person I’m conversing with tells me “oh it’s about investing in stocks and bonds right?” Sometimes, this particular mindset of only stocks and bonds in the stock market limits a person in investing in the other areas of the financial market due to a lack of knowledge of financial instruments. Here is a list of common financial instruments in the stock market today.

1.     Financial Instruments and Commodities
Financial instruments are securities whereas commodities are existing rare minerals such as gold, nickel, platinum, zinc, etc. In the stock market, investors buy different kinds of financial instruments to ensure they maximize their gains and cut their losses.

2.     Debt Securities
Bonds are a form of debt which companies, local governments and federal governments issue to raise money in the capital markets. Capital markets assumes that the money generated has a payout period greater than one year. Most bonds and other forms of debt securities have the investor lend money to the issuer for exchange of ongoing interest payments. Most bonds have a seven-year maturity period that guarantees the added interest rate on top of the original principal amount.

3.     Futures
Sometimes, you might hear about futures contracts between investors and you find yourself puzzled.  A futures contract is a guarantee between money managers that allows them to purchase or sell securities and commodities at a fixed price at a given time in the future at a price agreed upon by both parties
4.     Options
Options allow investors the option to buy other financial instruments at a pre-determined price within a given time frame.

Monday 6 May 2013

Where to Get Small Business Loans?


The current economy provides two options for individual financial and economic growth: either you step up a career ladder or you make your own small business. A career ladder makes you an employee who continually evolves into a leader of the company. As a small business proprietor, you instantly become your own boss and you will need a business loan to begin your business.

If you’ve saved enough capital for your business, you may or may not need to get a small business loans, but in case you do, there are three options for you to get them.


1.     The Banks
Financial institutions and banks still have the best offers when it comes to opening small businesses. However, you’ll need a good credit score to ensure you have a low-interest business loan. If you have an existing business, the business’ records and accounting must hold strong to get low-interest business loans.

2.     Small Business Administration
Every country may have a SBA that regulates and disperses small business loans from financial institutions. If you get a loan from the SBA, you have a loan secured by the SBA, which might have average to low interest rates. The SBA also provides lessons in business management and financial areas of a business.

3.     Online
Some lending companies have used the Internet to render their services. While many small businesses found online loans to be effective, some found the high interest rates to be troublesome. Sure, the financial institution online does not mind your credit score, but you are entailed to pay some high interest rates if you’re not too careful.

Sunday 5 May 2013

Credit Union Financing: Feasible than Bank Financing?


Credit unions offer an alternative source of financing for many who have low credit scores or bad bank standing, but credit unions differ greatly from how banks function to serve their customers. Unlike banks who try to attract customers to purchase or consider financial products and services, credit unions could only serve specific customers. Credit unions also have the following differences with banks.

1.     Common Ground
A customer must have a common ground with the credit union. For example, a medical professional’s credit union may require a customer to be a medical professional. Some credit unions only accept certain ethnicities, races, religions or other categories.

2.     Limited Offers
Credit unions interview their customers and analyse their financial capability. This helps them identify the proper financial products that their customer could surely repay within the time allotted to them. The reason for a credit union’s limited offers is that credit unions only have a limited mint; banks have vaults and banks aim to make profits. Credit unions only depend on member contributions and break evens.

3.     Credit Score
A credit union member does not need a good credit score to get a loan, mortgage or credit card. As long as they have financial stability, they could get a financial deal not based on their credit score.

4.     Low-Interest, Low Values
Credit union products are low-interest products and sometimes, they cannot repay the full amount of a car loan, a mortgage or other financing. Again, the reason for this is their limited resources and non-profit principle. Yet, you still pay less even if you have to pay for the rest of the product or service.

Thursday 2 May 2013

The Great Advantages of Financial Management


A small business also has a small budget and most entrepreneurs reserve that budget only for necessary investments. Most business owners skip having an accountant or a financial manager because they think it’s only “added budget weight” and that they can go the process alone. However, that is where they are mistaken. Financial managers can offer a lot for small business just for what seems a large sum for payment. Here are a few advantages of having one.



1.     Knowledge
Good financial management requires good knowledge about the subject itself. Financial managers research on business data, which they later analyse and discuss with you. The viewpoints they share show you the consequences of future actions and if the budget can handle future business objectives. Doing financial management by yourself or with a business partner can be tedious, while a financial manager can give you their complete insight about the business.

2.     Planning
Every company has its own objectives, which they strive to meet by the deadline and a financial manager can help meet these objectives properly. Financial managers outline the income of the business profits that might go to maintenance costs, employee payrolls and potential future investments. Financial managers could also advise owners how to reduce costs while increasing expenditures.

3.     Confidence
A good financial manager is more than somebody who could explain the numbers your company generates; they are also advisers that could help your company become stable in a crunch situation. A company with properly managed finances increases the chance of success and loyalty from employees and its own success.