finance

Financial management decisions are divided into the management of assets (investments) and liabilities (sources of financing), in the long-term and the short-term. It is common knowledge that a firm’s value cannot be maximized in the long run unless it survives the short run. Firms fail most often because they are unable to meet their working capital needs; consequently, sound working capital management is a requisite for firm survival.

About 60 percent of a financial manager’s time is devoted to working capital management, and many of the potential employees in finance-related fields will find out that their first assignment on the job will involve working capital. For these reasons, working capital policy and management is an essential topic of study. In many text books working capital refers to current assets, and net working capital is defined as current assets minus current liabilities. Working capital policy refers to decisions relating to the level of current assets and the way they are financed, while working capital management refers to all those decisions and activities a firm undertakes in order to manage efficiently the elements of current assets.

The term working capital originated with the old Yankee peddler, who would load up his wagon with goods and then go off on his route to peddle his wares. The merchandise was called working capital because it was what he actually sold, or “turned over”, to produce his profits. The wagon and horse were his fixed assets. He generally owned the horse and wagon, so they were financed with “equity” capital, but he borrowed the funds to buy the merchandise. These borrowings were called working capital loans, and they had to be repaid after each trip to demonstrate to the bank that the credit was sound. If the peddler was able to repay the loan, then the bank would issue another loan, and these were sound banking practices. The days of the Yankee peddler have long since pasted, but the importance of working capital remains. Current asset management and short-term financing are still the two basic elements of working capital and a daily headache for the financial managers.

Working capital, sometimes called gross working capital, simply refers to the firm’s total current assets (the short-term ones), cash, marketable securities, accounts receivable, and inventory. While long-term financial analysis primarily concerns strategic planning, working capital management deals with day-to-day operations. By making sure that production lines do not stop due to lack of raw materials, that inventories do not build up because production continues unchanged when sales dip, that customers pay on time and that enough cash is on hand to make payments when they are due. Obviously without good working capital management, no firm can be efficient and profitable.

Statements about the flexibility, cost, and riskiness of short-term debt versus long-term debt depend, to a large extent, on the type of short-term credit that actually is used. Short-term credit is defined as any liability originally scheduled for payment within one year. There are numerous sources of short-term …

As US dollar is becoming stronger and commercial real estate values are rising by the day, foreign buyers can have a real incentive for buying an investment property-whether it is commercial or residential. Persuading foreign investors to speculate in US economy has different incentives as well.

Some facts that are worth reading

As per National Association of REALTORS┬«, foreign buyers, until March 2014, invested in excess of $99.2 billion US residential real estate. These figures continue to soar with time. So every international buyer who can afford to invest in US properties and who look forward to living abroad should invest in the country’s real estate investment market.

When problem hits foreign real estate investors

Options for an international real estate buyer to pick from can be significantly limited as they will generally have to provide a:

  • U.S Federal Tax Identification Number
  • U.S Bank Account
  • State Certified Corporation, LLC, LP, or any active company
  • Proof of residence

And if a foreigner is incapable to furnish any of these docs, then the person will doubtlessly be ineligible to get a traditional mortgage and other similar financing options. Foreign buyers, however, can pay in cash-but as interest rates are low across the United States, it is preferred for buyers to finance their investments. And that is when a foreign national loan can be of great help to any foreign realty investor.

Understanding foreign national commercial mortgage loans

Foreign national commercial mortgage loans are available to every non-US citizen who are look forward to investing in any domestic property. However, any foreign national will not find this mortgage in traditional banks. And even the terms and conditions or requirements of this specific loan will vary from one lender to another.

Generally, foreign national mortgage lenders offer this loan type at down payments that start anywhere around 30 percent of the buying price. However, the down payment can even go as high as 40 percent-that depends on the size of the loan that any foreigner may apply for.

Apart from large down payments, this loan is similar to a traditional loan. The process of securing this loan is just like the one followed to get a domestic loan. For building a borrower profile, lenders will need:

  • Their passports
  • A Tax Identification Number given by the Internal Revenue Service
  • Asset proof that is verified by any global financial institution
  • A Letter of Professional Reference From An Accountant and or Banker

Foreign borrowers will generally have to pay a higher interest rate than the ones given by US residents. But borrowers may get a commercial mortgage with an annual interest rate as low as five percent because of larger down payments and historically low interest rates.…

Over the years, Nigerian school administrators, especially, the lslamiyyah schools had paid Lip services to the proper keeping of records. All these schools do is simply teach and graduate students. However as observed by NTI, (2000:12) in 1964, a headmaster of one primary school in our neighboring Bauchi State was faced with one serious experience. A form containing many questionnaires about one of the old pupils of the school who was nominated to be appointed as the chairman of the Federal Public Service Commissioner was given to him to complete. The pupil graduated many years before the headmaster even went to primary school. Therefore, the headmaster did not know the man personally and did not know what to write about him.

The only solution available to the headmaster was to turn to the school records. The school records showed the year the pupil was admitted, the year he passed out, the records of his good academic performance, records of annual prizes given to the pupil among others.

It was these records that helped the headmaster to correctly and accurately filled the form that assisted the person to be successfully appointed.

DEFINITION OF CONCEPTS

School records keeping: This concept according to NTI (2000:12) is the history of the school kept systematically. This means that the systematic growth of the school at various points in time need to be thoroughly recorded and kept by school administrators. it is the authentic register of instruments of officials accounts of transaction or accurance which are preserved in the schools office (Olanrewaju 200S).

Aleiyideino SC et al (202) defined record as a written statement about a happening. School record keeping according to these scholars are records that give a lot of information about the school that will enable the authority to take decisions and asses the progress of the school. Head of School shall refer to both head teacher and principal.

Student: It shall be used to refer to both pupils and students. These records according to Dibu-Ojerinde,00 and Tukur(ed) (2005:21) classified school records into (a) Statutory Records (b) Academic Records (c) Finance Records (d) Staff Record(e) General Records.

Also linking Muslim schools to the category of voluntary agencies interested in educational development, Eke, et al (2000:46) explained that the Izalatil bid’a Wa Iqamatis Sunnah group, the Jama’atu Nasrul Islam, is the Islamic Trust of Nigeria (ITN) among others have contributed immensely not only to the development of education but also to proper school records keeping in Nigeria. Here cognitive and effective domains are highly exhibited unlike public schools that deal with only cognitive domain.

It is in light of the above that we are going to discuss the classification of school records as listed by Dibu-Ojerinde 0.0 and Tukur H.as follows:

A). STATUTORY RECORDS

1. ADMISSION REGISTER

This is a register of admission, progress and withdrawal of students, it should contain the following particulars about the admitted students.

(a) Admission number (b) Name in full (c) Sex (d) Name and address of parent/guardians (e) Day …

So you’re looking for some new car parts to compliment your cars appearance and attitude on the road. Great! You’re just like most people driving down the highway. In fact, most people take pride in their vehicles appearance and performance, and spend lots of money on extensive modifications. However, this can get costly.

Sadly, not everyone can feed their need for speed with their current salary. Thankfully, there are a few services out there that allow you to pay for your purchases over time. This can be convenient for emergency repairs such as blown head gaskets, transmission failure, or other catastrophic failure that requires a fast repair, allowing you to get back on the road. These services can also be used to purchase parts that aren’t necessarily an emergency, but still desired by the owner.

I’ve found a few car part financing options, and I’ll provide some information about them in hopes of informing you to make the right decision if you see yourself in a situation requiring you to finance car parts.

PayPal Credit – PayPal credit, formerly known as BillMeLater has been around since 2000. Users sign up for free, submit information for a credit check, and can begin making purchases if approved for an account. Payment terms are typically set in increments over six months or until the total cost is paid off. If the total is not fully paid off after the six month period, an interest rate of 19.99% is applied in the form of a late fee. If considering using PayPal Credit, keep in mind the payment terms and be wary of the high interest rate. PayPal Credit is a good option for financing car parts since it is used by many e-commerce sites who typically have lower prices than many brick and mortar establishments.

CarCareONE – CarCareONE is a car part finance service which works very similar to a credit card. Run by Synchrony Financial which has been around since the 1930’s, CarCarONE allows to you make monthly payments on routine maintenance, trips to the gas station, and emergency repairs with moderately low interest. Furthermore, no interest is applied to your purchases if they’re paid off within 6 months. To sign up, you must apply and consent to a background and credit check before making purchases. CarCareOne is great for emergency purchases as it is accepted at more than 16,000 establishments nationwide, but keep in mind the high interest rates if not paid off with the first 6 months.

Affirm – Affirm is a relatively new way to finance car parts, but offers the most leniency on credit. Just like PayPal Credit, Affirm offers a line of credit for users to spend on purchases. However, this line of credit is not fixed, rather underwritten depending on the amount and the merchant purchased from. Affirm applies small finance charges with each payment, so you risk paying more over time if you decide to split your purchase into multiple payments, but the rates are generally …

MONEY WITHOUT MATRIMONY: The Unmarried Couples Guide to Financial Security, Sheryl Garrett and Debra Neiman, Dearborn Trade Publishing. Paperback $21.95 (248p) ISBN 1-4195-0688-9)

Who knew? If you were in a heterosexual relationship and got married, there would be 1,143 federal laws that protect your personal finances. But since that’s not the case for the 1.2 million gay and lesbian couples in America, out lesbians and Certified Financial Planners Sheryl Garrett and Debra Neiman have written Money Without Matrimony to help answer the hard financial planning questions. This well-written book helps gay and lesbian couples “plan around” the federal laws that negate right of survivorship benefits for same sex couples when tragedy arises like the illness or death of a partner. According to Garrett and Neiman, “If you want your partner or someone other than your parents or next of kin – no matter how distant a blood relationship – to sort through your possessions, inherit or distribute your stuff, the situation is far more complicated” than if you were married. Aside from looking at doomsday scenarios the book lays out everyday decisions that both short- and long-term couples should be thinking about like whether or not to merge finances, deciding how property should be rented and owned and the ramifications of each decision. Using easy-to-understand, accessible language, the authors have written a book that is a quick read or an easy reference guide to answer financial questions on the fly. While this book covers some of the same legal ground that can be found in other books on the topic, Money Without Matrimony picks up where the others left off with savvy personal finance advice in addition to legal advice. Filled with sage advice from financial professionals about the unique financial planning issues gay and lesbian couples face, this book forces partners to ask the questions they need to answer until (if) they receive full legal marital rights.…

INTERNATIONAL CAPITAL MOVEMENTS

International Economics or international business has two parts – International trade and International Capital. International capital (or international finance) studies the flow of capital across international financial markets, and the effects of these movements on exchange rates. International capital plays a crucial role in an open economy. In this era of liberalization and globalization, the flows of international capital (including intellectual capital) are diverse and diverse across countries. Finance and technology (eg internet) have gained more mobility as factors of production especially through the multinational corporations (MNCs). Foreign investments are increasing significantly even for the emerging economies like India. This is in-keeping with the trend of international economic integration. A Peter Drucker rightly says, "Increasingly world investment rather than world trade will be driving the international economy". Therefore, a study of international capital movements is much rewarding both theoretically and practically.

Meaning of International Capital
International capital flows are the financial side of international trade. Gross international capital flows = international credit flows + international debt flows. It is the acquisition or sale of assets, financial or real, across international barriers measured in the financial account of the balance of payments.

Types of International Capital
International capital flows have through direct and indirect channels. The main types of international capital are: (1) Foreign Direct Investment (2) Foreign Portfolio Investment (3) Official Flows, and (4) Commercial Loans. These are explained below.

Foreign Direct Investment
Foreign direct investment (FDI) refers to investment made by foreigner (s) in another country where the investor holds control over the investment, ie the investor obtains a lasting interest in an enterprise in another country. Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants, or equipment. Thus, FDI may take the form of a subsidiary or purchase of stocks of a foreign company or starting a joint venture abroad. The main feature of FDI is that 'investment' and 'management' go together. An investor's earnings on FDI take the form of profits such as dividends, retained earnings, management fees and royalty payments.

According to the United Nations Conference on Trade and Development (UNCTAD), the global expansion of FDI is currently being driven by over 64,000 transnational corporations with more than 800,000 foreign affiliates, generating 53 million jobs.

Various factors determine FDI – rate of return on foreign capital, risk, market size, economies of scale, product cycle, degree of competition, exchange rate mechanism / controls (eg restrictions on repatriations), tax and investment policies, trade polices and barriers If any) and so on.

The advantages of FDI are as follows.
1. It supplements the meagre domestic capital available for investment and helps set up productive enterprises.
2. It creates employment opportunities in diverse industries.
3. It boosts domestic production as it generally comes in a package – money, technology etc.
4. It increases world output.
5. It ensures rapid industrialization and modernisation especially through R & …

Many good quality, single tenant, net leased properties qualify for both credit tenant lease (CTL) financing and conventional commercial mortgage lending. Net lease property investors should consider the pros and cons of each before deciding which type of loan to commit to.

CTL lending is generally best for the long term income investor who wants permanent, high leverage, fixed rate, fully amortized financing and desires speed and certainty of execution. Bank lending has a lower initial (but not overall) cost and can offer a larger variety of terms and conditions. Banks are best for investors who need options, don’t need maximum leverage (have large down-payment available), and who are not sure if they will hold a property for the long run.

The Difference

CTL lending combines aspects of commercial mortgage lending with specialized investment banking in-order-to close deals. A CTL banker issues and sells private placement corporate bonds that are secured by the lease on the real estate. The proceeds of the bond sales are used to fund a commercial mortgage loan for the borrower. The loan is administered by a third party Trustee throughout the life of the deal.

Traditional commercial mortgages are standard loans secured by mortgage liens against the real estate, the income the property produces and the credit of the borrower. Banking institutions originate a loan and fund the deal either by selling the loan to an investor (private or Government) or by lending its own funds and holding the loan in its portfolio.

Leverage

The ongoing credit crunch has forced banks to tighten up their lending criteria. It is highly unlikely that a commercial bank will offer any more than 75% loan-to-value (LTV) on any deal today. Banks have no incentive to take unnecessary risk; they can borrow money from the Fed (Federal Reserve Bank) at 0% percent and buy 10 year Treasury Bonds at 2% earning 2 points risk free. They will pass on high leverage loans and only lend where they have large amounts of protective equity.

CTL lenders will lend up to 100% LTV (lease fee valuation) on a non-recourse basis. They are in the business of loaning the full, current cash value of a lease (against the guaranteed future income). CTL bankers, without question, make the highest loan offers in the commercial real estate finance industry.

Speed and Certainty of Execution

CTL loans can close in about 1/3rd of the time it takes to close a conventional commercial mortgage. CTL deals have been known to be completed, from-start-to-finish, in as-little-as 45 days (unheard of in the world of commercial banking) but generally take 60.

Bank loans take at least 60 days, sometimes 180 or more. Also, because CTL deals either qualify or doesn’t, a banker can give a borrower a solid yes or no very quickly. There are a thousand ways a bank loan can fall through but, once a CTL banker commits to a deal and a borrower signs off, there is a near 100% certainty of execution.

Recourse

CTL …

Standby letter of credit (SBLC) funding or the monetizing of bank instruments including Bonds, SBLC’s, BG’s, LC’s or SKR’s to fund projects are on the rise. While lending from traditional institutions has virtually come to a production stand still, the monetizing of instruments is on the rise; and for good reason.

SBLC funding or the monetizing of bank instruments is very popular because there are no traditional credit requirements, asset requirements or down payments associated with conventional funding or lending. However, there are very strict requirements in the approval process which includes a favorable compliance report associated with Homeland Security and International Money Laundering Laws.

The process of monetizing bank instruments involves converting a secured instrument, usually backed by a cash, secured account or secured asset, into something legal tender. Many times, the secured or cash backed account or asset is held in a trust or another account in which the holder is unable to retrieve additional funds per the agreement of the account.

Why monetize? As an example, in the economic security of the market 5 years ago, hospitality financing was a very tedious and difficult industry to finance, but still attainable. Today, hospitality financing is almost impossible for those who are seeking new purchases, refinancing, remodeling or construction. If you currently own a hospitality property, the chances of getting funding are greater but depend on performance spanning over a 3 to 5 year period. SBLC funding for hospitality projects or monetizing an instrument can be the solution as there are no performance requirements; the performance is based on the guarantee of the instrument and not the property.

This also stands true for residential developments that are in the mid-stages of construction and halted by the inability to continue to draw on previously arranged credit lines. Commercial developments will also benefit by this method of funding as there are no “anchor” requirements or tenant rolls to supply. Alternative energy project financing are particularly viable for sblc funding or via monetizing a bank instrument. These overcome traditional funding sources tangible asset requirements.

The list is endless as to the uses of the funds for projects and developments. For example, monetizing can also be a viable solution to community economic development, housing and employment creation as well as debt consolidation for corporations and companies.

A few words of warning to those seeking bank instrument providers and monetizing companies. Fraud in this industry is on the rise. The instruments should be issued by Top 25 World Banks. Leased instruments can be monetized but it takes the expressed written permission of the holder of the instrument and of the issuing bank, stating the agreement between all parties and the expressed knowledge of the intention of using the instrument. There should also be a contract issued to the customer after approval, outlining the terms and conditions of instruments and monetizing.

Finally, fees should be deducted from the proceeds when monetizing so there are no upfront costs to you. Arranging instruments usually results in escrowed …

Most people don’t really understand the truth behind our banking system because it isn’t taught in our schools, not even to financial professionals. Oddly enough, the inconvenient history is omitted from all educational curriculums. I obtained a business degree in finance and there was one thing that never was taught to me about the origins of our banking system that I believe is key to the state of our banking system and our economy today. It is the fact that it was created under cover of legislation that was supposed to protect the economy and stabilize it. That is the primary mission of the Federal Reserve Bank. However, the real motivation was to shield the owners of the banks from competition and create a cartel.

I was also created to start a franchise that could print a fiat currency. A fiat currency is one that has no basis of value except by the good faith in the government to pay its debts. It means that if more money is needed in the economy, the bank simply creates it. This central bank could also then take control of all the reserves of all banks to protect the more wreck less banks from runs at the cost of the conservative ones, and get access to taxpayer money when the bank is in trouble. All the while, the Federal Reserve Act of 1913 was sold as a law that would protect the public. In terms of stabilizing the economy, the Federal Reserve Bank has failed miserably. In terms of reaching its true and hidden goals, it has been extremely successful.

People believe that the financial crisis is somewhat of a mystery. But every financial crisis we have had since the Federal Reserve Banking System has been in place has been related to debt. Under the current system, debt is used to create new money or to shrink the supply of money (by paying debt off) to attempt to control the economy, and allegedly stabilize it. In reality, since the loans were made with money created from nothing, the bank loses very little money. It is money that it never had in the first place. Technically, a retail bank with too many bad loans becomes insolvent, so the game is to roll bad loans over into larger ones and creates more money and gives the borrowers more money to continue to make the interest payments. There is also insurance that backs loans, so the government will pay for bad loans with taxpayer money. The Federal Reserve Bank has convinced the government that allowing big banks to fail would create great hardship in the economy, however, it is the massive creation of debt that fuels this system that causes the great hardship when the final cost of bailouts is passed to the public in the form of inflation due to an excess supply of money created by excessive lending to cover bad loans.

There is a rich history of how the banking bailout system has …

Thus, choosing your moving company is something that can provide a great relief or further problems.

Resorting to a moving company is not the only action you can take. It all depends on the amount of things you have and the distance that separates one property from the other. You may be able to move most of your things by yourself or maybe all with the aid of some friends or family members. But take into consideration the fact that some furniture and appliances are fragile and should better be handled by professionals.

Costs And Alternatives

Hiring a moving company can be expensive. If you have to move especially delicate things like a piano for example, you may even have to hire the services of exclusive moving companies that will charge significantly higher amounts. You can shop around and compare prices but bear in mind that sometimes what is too cheap turns out expensive and the company will be transporting all your belongings which you surely consider valuable in more than one sense.

As explained above, the cost of hiring a moving company will vary according to the amount of things that you need to transport from one property to the other but mainly on the distance that separates both properties. If the type of things you need to move would allow you to transport them yourself provided that you had the transport means, hiring a moving company may not be your only possible solution.

It is also possible to rent a truck or a van where you can (with the aid of friends or relatives) carefully load all your belongings and transport them from your current residence to your new home. Bear in mind though, that you’ll need to fasten and secure everything so nothing gets damaged during the carrying. Using a proper cushion wrapping to reduce the risk of damage is an excellent idea.

Financing: The Simple Solution

Though moving companies can be expensive, you may decide that they are the best choice for you. If that’s the case, the good news is that you can obtain finance to move your belongings. Some moving companies will agree to provide several installments to finance the fees. Even if that’s not the case, you can still resort to other forms of financing in order to obtain the funds to pay the fees altogether.

You have mainly two alternatives: you can pay with credit card and use the ability to finance the balance on your credit card so you can pay as much as possible every month. Or (and this is my preferred solution), take a personal unsecured loan to pay for the whole fees and then repay the loan in the small resulting installments. This last alternative is probably the cheapest one because the interest rates on personal loans are considerably lower than the ones charged by credit card financing.…