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The Importance of Design and Marketing in the Investment Business – Part 1

Marketing and finance are the cornerstones of a successful business. You might protest and say that, first, you need a good product, but there are countless examples of products that were successful, solely, from marketing, like the pet rock, in the 1970’s. Moreover, marketing is not only the collaborator of finance but is also finance’s coconspirator. Indeed, marketing is more important to the financial industry than finance, itself, something that people outside of the financial industry fail to grasp.

Perception is more important that reality, for what we perceive is real to us. In that regard, from the very bottom of the financial system, money and banks, there is a need to shape perception. Paper money was developed by Italian goldsmiths, in the Middle Ages (actually, China experimented with it as early as circa 900 A.D., but the experiment failed). As gold was, then, the major medium of exchange, people would sometimes need a place for safekeeping, and the goldsmiths kept it for them, in their vaults. In return, gold receipts were issued, and those became accepted as legal tender. Moreover, those same Italian goldsmiths became the first banks and the precursors of modern banking, so-called fractional reserve banking. They discovered that, as keepers of gold and issuers of gold receipts, they always had more gold in their vaults than was needed to redeem receipts to those looking to make withdrawals. Given that, they mad loans by writing more receipts for more gold than they have in their vaults, and that is the essence of modern fractional reserve banking.

In modern banks, most of the money that is deposited is in demand accounts, from which money can be withdrawn at any time. Demand accounts and other restricted savings accounts are on the liability side of the banks’ balance sheets. Then, banks make loans by making book entries into accounts for people borrowing money, and money is created, in the system. Moreover, there is a mismatch in the maturity structure of the assets and liabilities, in that deposit can be withdrawn, almost anytime, while loans, the assets, usually have longer-term maturities. In order to keep this house of cards from crashing down, confidence must be engendered in the depositors, which is tantamount to shaping perception, which is what marketing is. When people lose confidence in a bank, and panic causes a so-called run on the bank, whereby all or a large number of the depositors, all at once, demand that the bank return their money, it can result in bank failure because no fractional-reserve bank could fill all of its depositors’ requests, at once, since, in the normal course of the fractional reserve banking business, banks do not keep a reserve equal to one hundred percent of deposits.

Design also enters the picture, in finance, even at this basic level of banks. Banks offer a safe place to keep your excess cash and to get it out on demand. What actually underlies most banking products are put and call options of …

The Importance of Business Financial Analysis and Management

Planning and Control are the two most important ingredients to a Successful Business. A Business Plan takes most of the guess work out of Business Strategy and Control through solid Financial analysis. Financial Data provides a way to gauge where you are in your Strategic Plan, telling you where changes in your Plan are necessary. Because of this, Financial Data Analysis and Management are vitally important to running a successful business.

It is extremely important to have a suitable Accounting System installed throughout your business so data acquisition is easy. You cannot manage your Business for Profitability without a good Accounting System. My CPA has a bookkeeper who comes out to the business to help install the Accounting System and show us how to work it. All of this is done with the guidance of the CPA but at a fraction of the cost. A good Bookkeeper is invaluable in helping capture Financial Data. Having an established working Accounting System in place will minimize the fees a CPA charges to analyze your tax liability and prepare your tax returns.

An Accounting System is typically built around the following key Financial Management tools:

– Income Statement (Profit & Loss Statement)

– Cash Flow Statement

– Balance Sheet

– Budget

– Breakeven Analysis

By having a Financial Management system in place, you can easily identify early warning signs or spot particularly profitable areas. Not having a system in place to analyze and organize Financial Data makes it impossible to effectively manage, grow and control a business. It makes it impossible to gauge the success (or lack there-of) of your Planning and Strategy. Moreover, used incorrectly, inaccurate Financial Data can be disastrous for a company’s livelihood.

An Accounting and Financial Management System is only as useful as it is used systematically throughout an entire business. It is extremely important to implement the system into the very fabric of the business and be used systematically. The Accounting System is a reflection of the health, or lack thereof, of a business and from which business decisions are made. Make sure to set it up right, train your people on it and most importantly, use it!

Two principal objectives of any business are to be Profitable and have Cash Flow to pay obligations. The Income Statement and Cash Flow Statement figure prominently in this area. The Income Statement represents how well a Company is operating, and the Cash Flow Statement shows how well a business is managing its Cash. Profit or Loss on one side and Liquidity on the other.

The trick is to find a good balance between Profits and Liquidity, which when not well planned for, can be very difficult to maintain. Fast Growth with high profits can drain the liquidity of a business, so being Profitable is no guarantee you’ll stay in business. The role of the existing and projected Cash Flow and Income Statement is to help you identify problems areas so you can effectively plan for them, such as raising more …

How to Get Scooter Financing For Good and Bad Credit

With gas prices increasing many Americans are looking to scooters as a way to protect their pockets against the price of gas. While finding a fuel efficient alternative is a good decision, many scooter buyers are not protecting their pockets when it comes to scooter financing.

There are many options available when financing a scooter including credit cards, manufacturer low payment promotions, installment personal loans and financing for bad credit applicants. Educating yourself about the various types of scooter loans is important before you make a financial decision.

Here are some tips for you to follow:

1. Do not shop for a scooter that is too expensive: Today there are scooters that cost as much as $ 9000, but shopping for one of these scooters makes little sense if you can not get approved for financing.

Therefore, it is a good idea to shop online, and at your local bank for a scooter loan before you enter the showroom.

2. Watch out for low payment promotions: Manufacturers often entice you into buying a scooter with low payment promotions which structure payments as low as $ 39 for 2 years.

Low payment promotions look enticing, but are a very bad financial decision for you.

Fundamentally with low payment promotions you are only paying off the interest on your loan each month and very little is going towards the principal on your scooter.

Worse off at the end of the promotion your payment will double and your interest rate could increase to as high as 22.9{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} annual percentage rate.

3. Get an installment loan: Most low payment promotions mentioned above are on a manufacturer credit card.

Opting to get scooter financing with an installment loan is a much more wise decision.

With an installment loan the lender can not increase your interest rate or payment and your scooter will be paid off at the end of the term.

4. Consider a personal loan: If you walk in your bank and ask for scooter financing the bank may not have such a product.

Therefore you will likely have to ask your bank for a personal loan, which is basically a simple interest installation loan that can be used for recreational items.

A personal loan is a great way to finance your scooter and is much safer than a credit card or low payment manufacturer promotion.

5. Read the fine print: As your parents probably told you make sure you read the fine print before signing any loan document. Definitely do not enter a loan contract that you do not understand.

6. Do not borrow more than you can afford: There is little reason to purchase a scooter to save on gas if you borrow more than you can afford.

Borrowing more than you can afford will put you in a risky financial position. You must consider the cost of insurance, registration, maintenance and gear and choose a scooter that fits your budget.

7. Avoid zero down payments loans: Trying to secure scooter financing …

How Much Car Insurance Do You Need?

The amount of car insurance you require will depend on several factors. The value of your car, whether your vehicle is financed or you own it, the age and type of car you own, and the state you will in will factor in determining how much insurance you need. Another reason you may require more insurance is if your car has enhancements added that were not put on when the car was manufactured.

If your vehicle is new and in top condition, full coverage insurance is the best bet if you own it outright. This will cover the cost of providing the money to purchase another car in the same condition should you be in an accident that totals your car. Most finance companies require you to carry full coverage insurance. They like to make sure they will get the amount they lent for the purchase of a car back should it be totaled in an accident. If you own an older car, liability coverage is the best way to go. This insurance will prevent you from being sued in the event of an accident that is your fault and there are injuries that need to be compensated. It is a good idea to carry more than is recommended because, in the event of an accident with injuries to the other person, the minimum may not cover all of their injuries and, if not, they will rarely come after you to collect the reminder . There are only 4 states at the present that do not require any type of insurance.

If you have had anything added to your vehicle, such as stereo systems or expensive wheels, you should add insurance to cover these add-ons in case of theft. Comprehensive insurance is usually required by finance companies and covers a variety of damages such as wind damage, falling objects, fire, flood, etc. If you are an antique car buff, you will want to insure your car to cover the replacement value. Using your car for business may require that you carry more insurance than you typically would. Basically, the price and the amount of coverage that you carry will be governed by the insurance requirements for the state you stay in and whether you want or feel you need extra insurance above what is required for your vehicle type. It is best to find out what requirements your state has and what you expect to be compensated for in the event of an accident.

According to car crash statistics there were 6,420,000 auto accidents in the US in 2005 with a financial cost of 230 billion dollars. Nationally, a vehicle theft occurs every 27 seconds. …

Get a Personal Military Loan With Minimum Hassle

Army, Navy, Air Force, Marines, Coast Guard, Army Reserve and National Guard are all welcome to avail themselves of a military loan without all the hassle. Retired military folks are welcome, too. All can qualify for a no hassle personal military loan that is stroked minus the stuff you have to go through with the usual or traditional loans such as a a bank or a credit union. A personal military loan

Various Loans Available

The kind of funding you need will absolutely decide which loan is best for you. You might want to consider the personal military loan. You can get sums up to $ 25,000 depending on your financial situation and, again, what kind of expense you are looking to cover. You will be free to use the money as you see fit, unlike a specific house loan or a specific car loan, or a mortgage refinance. Many people have used them for home remodeling, a new appliance such as a stove or refrigerator, education for one of the kids, or even a wedding. The personal military loan is such that it can cover all sorts of circumstances.

Secured vs. Unsecured Personal Military Loans

With your credit rating as a consideration, you can decide between a secured loan or an unsecured loan. As the name suggests, a secured loan requires collateral. This can be just about anything of significant value. Real estate, stocks and bonds, sometimes even a late model car, can be put up to secure the loan. Since this removes a lot of risk for the lender you will get lower interest rates and a comfortable repayment plan. Just understand that if you default on your payments the lender can seize the property and sell it to cover the cost of the loan.

Unsecured or Signature Loans

This type of loan is a bit more difficult to secure. It certainly depends on the amount you are seeking. If you have really good credit, you will be surprised at what lenders may be willing to offer. If the amount ranges between $ 200 and $ 1500 and you have a bad credit history, or no credit history at all, you can probably land such a loan. And if your credit history is a little smudged, paying back this loan as specified in the contract, you will be adding some really good marks to your report. But, these loans can carry a higher interest rate. Again, build a better record and the lower your interest rates become and the more you can borrow.

Start Shopping

To land a personal military loan, you should get on the old pc and punch your browser with Military Loan. You will suddenly have scores of lenders who could be your lender. You will have many to shop among so be sure to pick four or five that are offering the lowest interest rates and best repayment terms. Once you have those sorted out, check each one on the online lists with the …

Loans – Look Beyond With Us

In times of crisis and dire need some borrow from their kith and kin while some approach institutions such as banks, loaning companies and individual lenders. They play a very important role in providing the finance.

The most important thing to be considered before approaching any financial institution is a quick check on your eligibility criteria to avail of the loan. A person's credit report reflects his / her capacity of repaying the bank loan. Ample research beforehand ensures uninterrupted course of action. Thus a person going for UK loans or any other loan should apply mind over matter and equip oneself with knowledge of the process.

Broadly speaking one can classify UK fast loans into two-sub categories-secured loans in UK and unsecured loans in UK. Secured loans as the term suggests is obtaining the amount from the bank against a major asset usually your home or some other property. The collateral being large, one should act prudently before securing the same. Defaulting on your payment can cost you your home. However it is easier to obtain than unsecured loan, also the APR (annual percentage rate) of secured loan is usually lower than on unsecured loan. It may be used to finance a wedding, buy a vehicle, a business loan etc.

Unsecured loans also known as personal loans happen to be riskier for the lender than the borrower. Here is the financial structure and credit report of the borrower is scrutinized well before lending. Usually in UK it is granted to people holding first-class credit record. An unsecured loan [http://www.loans-park.co.uk/unsecured-loans.html] could have taken to make your credit card payment or a student loan or it could have been taken to invest in some business. However one of the main advantages is the speed of payout ie, the time between the application of the loan and receipt of the proceeds in your account. This time interval is shorter than that of a secured loan .

However once all of the procedures and intricacies can be solved with just a bit of simple instruction. With all the fine print in hand to read and understand, one is sure to be well informed and on the ball before taking the plunge. One should also visit several banks and lending institutions and not just cling on to one to borrow. There could be dash of difference in interest rates and other policies. A cross comparison across the table could sometimes act in favor of the borrower as the lender might just make some tweaks benefiting the borrower.

So with things like repayment periods to suit from 1- 25 years, quick decisions and prompt payout, efficient and friendly service to the customers and easy online application makes it all borrower friendly process to follow. Thus options galore of various lending institutions with their unrivaled access to different plans and amounts to suit the customer half the borrower's worry. Doing your homework well, cut shorts half the trouble and the rest is taken care by your …

What Are Bonds?

When people talk about financial things, you tend to hear the term stocks and bonds thrown around, but are they the same thing? The short answer is no. Stocks and bonds are different entities although they belong in the same financial framework as they are both things to make money and both things that can be bought and sold.

Bonds by definition are an instrument of indebtedness. While that doesn’t sound very appealing and not very much on the side of making money, in fact they are used to make money. It is a case of debt security. Your company wants financing and so to get that you get into the bond market.

The issuer holds the holder debt and then pays interest and/or repays the loan at a later date. Think of it like a regular loan, only the time you have to repay them can vary largely, most have a 30 year term, some have upwards of 50 years and some don’t have a maturity date at all.

You, if you hold bonds will have to pay interest at fixed times throughout the term, usually on a regular basis and they, in turn will fund your endeavors to finance long term investments. Regular small businesses wouldn’t necessarily have to go down this road, but large conglomerates and the government itself do.

The bond is a form of a loan, albeit a large one. The holder of it is called the lender (think bank or larger) while the issuer is the borrower. Banks aren’t the only institutions that can issue bonds, as public authorities, credit institutions and companies can also do it to build their wealth.

The common process is one of underwriting, where one or more securities firms join together to form a syndicate. This syndicate then buys an entire issue of bonds from the issuer and then resells them to investors around the world. This is the case for many transactions, however, the government has bonds issued at auction which is a whole other issue entirely.

While both stocks and bonds are securities, they do differ in how they are bought, how they are sold and how they are traded. Stocks for instance don’t have a maturity date that you have to pay them off by as they are things you purchase in the first place. Having stock in something is a whole other idea to having a bond in it.…

Working Capital Management

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 …

Foreign National Commercial Mortgage Loan Basics

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.…

Record Keeping In Schools

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 …