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Day: June 21, 2016

Buying a Car From a New Car Dealer If You Have Bad Credit

It may seem like an intimidating prospect, but if you have a little knowledge about your situation, buying your next car is not as daunting a task as it may seem.

When searching for a dealer for your next vehicle purchase it is important to realize that not all dealers are created equal. Sure every Chevy dealer sells the same cars, however, different dealers have different finance sources and this makes all the difference to the credit challenged customer.

I advise choosing a dealer who often advertises its ability to help customers with credit issues. This dealer likely has a large number of finance sources for these customers.

When you go to the dealership don’t hide the fact that you have credit issues. You will be asked to fill out a credit application so the finance department can submit your information to its finance companies to see who will offer you the most favorable terms. Don’t be afraid to ask which finance companies your dealer is submitting your information to. Write these down, you may want them later.

It may be anywhere from a few minutes to a few hours or more before the finance manager knows if he will be able to get you approved for financing. If they send you home, use the time to research some of the finance companies that you have applied with. You may find negative reports about a finance company and decide that you would not want your car financed with them.

When a finance company is considering your application they look at several items including your credit score, time on the job, income, time at residence, debt to income ratio, and cash downpayment. All finance companies have different formulas on determining credit risk.

Once the dealer receives a credit approval you will be invited in to view cars that will fit within the lenders guidelines. If the dealer only shows you three or four cars and you are not satisfied with your options, don’t be afraid to ask for more vehicles to choose from. Usually the dealers will have a few other vehicles that may also work.

If you decide to purchase a car, the finance manager will present you with loan closing documents. Pay attention and read these documents carefully. Ask questions as they arise. Don’t hesitate to stop the finance manager and ask him to repeat or explain something. Pay particular attention to the Truth in Lending disclosures on your retail contract. Here you will see the interest rate and the total amount of interest charges expressed as a dollar amount.

If you decide not to do business with the dealer, don’t leave the dealership without finding out which finance companies approved your application. Armed with this knowledge you can go to other dealers who deal with the same finance company and already know that you are approved.

With these simple guidelines purchasing a car form a New Car Dealer with bad credit can be less intimidating. If you need …

The Advantages of Venture Capital Vs Bank Loans

Venture Capital isn’t the only answer. But it’s one of very few answers if you want to take your business to a materially different level. Many other financial routes are closed off in the current climate and non financial adjustments, whilst potentially positive, will not have the same impact.

Recruitment attracts entrepreneurs. The UK is without doubt one of the global hubs for recruitment. There are more agencies in London than there are in the whole of the US, but that does make it difficult to stand out from the crowd.

Venture Capital vs Bank Loans

Taking a significant step forward with a business usually requires some sort of investment and in general there are 2 recognised financial routes. The first is a bank loan and the other is venture capital (or private equity).

If you pursue the bank loan route bear in mind, as a recruitment company is not an asset backed company (apart from its debtors which normally attract finance for working capital) it’s never been easy to borrow money against a recruitment companies future profits, given that the assets leave the office at 6pm every night and hopefully return the next day.

Traditional banking has never been more difficult than it is now. There are many reported cases in the last few years where companies have borrowed from a bank, have been able to repay the interest but have been in breach of the long list of banking covenants. These covenants are scrutinized intensely by super-keen analysts, who seem all too ready to press the alarm bell, sending in the bank’s friendly business support team. In turn, this often leads to them calling in the administrators… and the rest is history… in many cases.

Undoubtedly the dangers of obtaining bank loans have never been greater, peppered with high charges, conditions, key ratios and draconian penalties, if you can get past the hurdle of getting one in the first place.

The alternative method of raising finance is by attracting an investor such as a venture capitalist, whereby you sell a piece of your equity in return for long term investment. However, this is hardly a piece of cake either. Nevertheless, it’s generally regarded as the best credible alternative to a bank loan.

Benefits of Venture Capital Specialist;

Knowledge; If you choose a venture capitalist with experience, or preferable a focus, in your chosen market you will gain a partner with considerable insights and practical experience.

Advice & Mentoring; Their expertise will be extremely useful in terms of acquisition or strategic advice, management infrastructure, succession planning and of course exit. If you haven’t been part of an exit before, an experienced partner will be invaluable, both with practical advice, business preparation and contacts in the market. They’ll then not only add value in general but will unlock the value of the equity, a specific skill which many owners don’t yet have, because they haven’t needed to.

Understanding; The right VC partner will take the time to understand your business. …