Monthly Archives: May 2018

Things to Know About Financing

So you want to buy that new flashy Beemer, but you have fewer funds than you wanted, do you settle for another less expensive car? Nowadays, you don’t have to make sacrifices when it comes to the car of your dreams. Typically, financing a car is a standard procedure for most car buyers. It may be a confusing process but the bottom line is, you’re figuring out how to pay for your vehicle and deciding on the amount of your car loan is part of this process. When financing or leasing a car, there are several things to always keep in mind; which we’ll explore below the top 5 things you need to know about financing your vehicle.

1) The real price of the car is not accurately represented by its sticker price. Make sure you haggle the price if you aren’t purchasing your car from a “no haggle” or “no hassle” dealership. If you want to buy the vehicle immediately, chances are they will try their best to get you to buy, even if that means negotiating on the price as much as 5-10%.

2) Zero interest, or zero down, zero payments for one year may sound attractive and tempting for now, but in the long run it can actually be more of a financial detriment for you. Within the first year of these types of payment plans, the buyer may not owe a single cent. However after that first year, the buyer will be forced to start paying their car loan with above average interest rates and larger payments. This happens for a number of reasons. In your first free year, the dealer isn’t really paying for your car payment, which means that you will still have to make those payments, just at a later date, and now your payments will be larger and in a shorter time period.

3) The best financing option varies from people to people. A lot of car dealerships will advertise incredible financial plans, but really, when you calculate your debt, only a few select people with above-average credit will be eligible for this. Those who are not eligible to pay, must fork over several times more over the course of their financing term. Keep an eye out for these types of things when you’re choosing your car loan plan. Check your bank or credit union to see what financing options are offered BEFORE you head to the dealership.

4) Hidden “extra” fees are common when purchasing a car. On the final bill, such things as rust protection, fabric protection, and even tinted windows may be added expenses, which you don’t need. Be sure to cross these features off the invoice if you are certain you have no use for them. Dealers make a great deal of money by adding items that look “important” or a necessity onto the bill, so make sure all the features on the vehicle are the ones you want.

Wondering About Financing Small Business

Many small companies in the US expect some growth opportunities in the next year. That is the great news! The bad news? Financing opportunities are looking bleak, particularly if the business owner has less than great credit, or a new business. Why would you need to know about financing small business loans? The main reasons for small business financing are to receive working capital and funds for capital expenditures.

It used to be that applying for business cash for a smaller business was fairly straightforward. You’d pay a visit to your local friendly banker and talk about your business needs. You’d discuss what you needed and they would help with financing a business loan – yours, to be exact. Then, the financial crisis hit, and banks closed ranks and decided that loans for small business were too risky. Business cash almost dried up. The big losers? Small business owners.

Now, we see the result of lack of financing: many small companies are either struggling to stay afloat, or are finding it almost impossible to capitalize on upcoming opportunities. In a recent Year-End Economic Report published by the National Small Business Association, nearly 40% of small businesses report they are unable to acquire adequate means for financing small business loans they deem necessary for their business to continue and grow.

What are the options for companies to get the business cash they need? The large corporate bankers and small locally owned banks are not the alternative they have traditionally been. You may feel that your business is a captive being held by the current economic situation and credit crisis. What you may not know is that there is a great source of alternative lenders who can provide working capital for small businesses. It is possible for loans to be secured against cash flow or your accounts receivable. In addition things such as inventory and purchase orders can be considered. Do you own property, machinery or equipment? These things as well may be leveraged to secure loans for small business.

What happens when your long time banker tells you there is no money for your business? Don’t give up and think that all is lost. There is help just around the corner for you. Business lending has changed. It may seem a little different to do business on the internet, but that is the new way. You just may be able to get the financing you need when the bankers say “No way.” Asset-based lines of credit may be the way to go in this Brave New World.

Typical banks are just no longer willing to extend traditional financing to the small company owner. There are many reasons for this, some of which are tightened federal requirements, as well as skittish investors who only look at the bottom line. These factors combine to make it seem that any loans for business may seem quite impossible. But don’t believe that! There is a whole new world of private banks and small business lenders who welcome your business. Once the level of risk of the business being financed is determined, you may be pleasantly surprised by the rates and terms you may be offered. Take advantage of the growth opportunities for your business. Grow your business just as you’ve dreamed.

The Get Working Capital Quick management team consists of financial professionals who have a combined experience of over 90 years in the business world. Get Working Capital Quick is focused on providing a variety of funding solutions including working capital, accounts receivable factoring, purchase order financing, merchant cash advance, business credit lines, and equipment financing. We can assist you in obtaining the financing you need for your company.

Teaching Children About Finances

Teaching children about finances is a very important part of their upbringing in this modern age when it can be disastrous for young people to be unable to handle their finances properly. It is very important that kids learn early that bad financial planning can lead to problems throughout their life.

Children should be brought up to understand what money is and learn the benefits of saving and spending wisely. Here are some tips to help you to teach your children what money is and how it can be both a blessing and an anvil around their necks depending upon how they handle it.

A. Young Children

1. The Cost of Everyday Items

When children are able to count, teach them how to count using money. Teach them the difference between the various coins and denominations of bills. Show them how much money they need for everyday items: a Hershey bar, gum, pencils and other things they use every day.

2. The Advantages of Saving

As they grow older, explain how their allowance would not be enough to buy them something expensive, such as a watch, bracelet, football or their own cell phone, but if they saved a certain amount each week they could afford what they wanted after a period of time.

In other words, teach them what saving means and why they shouldn’t spend all their money right away. You could keep some allowance back for them as ‘savings’ and pay them ‘interest’ on it, teaching your young children how money can grow if they don’t spend it immediately.

3. Money as Earnings

Many families pay their kids for carrying out chores. Washing dishes, tidying their rooms and helping mom with the shopping. Many regard this as a form of reverse blackmail – you don’t get pocket money unless you help with the chores. You can overcome that by giving them a basic weekly allowance, and then extra according the work they do during the week.

Those that don’t work so hard will soon see that their siblings that do are earning more allowance then they are. You could also ‘save’ that extra money for them, or a proportion of it, until school camp, the holiday period or to spend on their summer vacation.

Including the saving aspect above, you can show them that by not spending $50 of their earnings, but saving it, they get $55 from you, or whatever seems a reasonable interest rate. You might even agree to match what they save so they in effect get 100% interest.

4. Explain Household Expenses: The “Cost of Living” Concept

Explain your own household expenses to your children once they have a rudimentary understanding of budgeting. Explain why you need to save for utility bills, rent or mortgage and insurances. How there are fixed financial commitments such as these, and then the everyday expenditure on food, clothing, travel and other expenses. Let them understand that everything has a cost, and it is important to have enough money each month to meet the fixed costs before you can take them to the cinema, ball game or McDonalds.

B. Older Children

Up till a certain age, you will have looked after your children’s savings yourself, and exerted a high degree of control over their spending. As your children grow older and have a rudimentary grasp of what money is and how it can either be spent or saved until they have enough for something they really want, you can teach them the responsibility of looking after their own money.

They will gain an understanding of banking, investment and the importance of living within their means – not spending more than they make or receive. Here are some ways of teaching your older children, who are in effect young adults, the importance of budgeting and using credit properly.

1. Open a Bank Account

Once they are old enough, open a bank account for them. You will be responsible for maintaining it and will have to authorize their withdrawals until they reach a certain age, but by doing this you will make them feel ‘grown up’ and responsible for their own money – even if it is a weekly allowance, or ‘pocket money’, paid into their account.

Explain the concept of interest again, and how they make money by keeping their cash in the bank and not spending it.

2. Make Them Responsible

When they want to make a withdrawal, never refuse, but discuss it with them and eventually agree to them making the withdrawal. If they spend all their money too quickly, then that is as good a lesson as saving it all. Allow your kids responsibility for their own money, BUT – also make them responsible if they spend it too soon.

This is particularly true if you have other children who have saved for a weekend camp for example. They will be miffed if you give the spendthrift money when they have saved up for it. That’s just an example, but you get the idea!

3. Teach Budgeting

Take your children shopping with you, and show them how some items cost more than others. If they want their own portable DVD player, show them the cost and relate that to their allowance – how much do they have to save for how many weeks? Offer to meet a percentage of the cost if they save the rest.

4. Explain How Credit Works

Show your children your credit cards and how they work. Let them see you use them in stores, and then show them the bills when they come in – that impresses on them that everything must be paid for. Also show them the interest payment, and explain that is the cost of borrowing money.

5. College and Credit Cards

It is important that your children grow up with an understanding that credit costs money, but that sometimes it can be worth it if the item purchased is important. Once your kids are ready for college, explain the importance of using credit cards only when necessary, unless they have enough saved to cover the monthly bill. Explain interest, charges and what happens if they only pay the minimum amount.

Finally…

Take some time on a regular basis to discuss financial matters with your children. You could have a general meeting when you all discuss interest rates for borrowing against saving, and the different ways they could save. You could also follow that up with personal discussion with each of your children separately regarding their own finances. How much they have saved, and how much interest they have earned. Discuss how much it costs to borrow money for things they want compared to the cost if they saved for them instead.

There are many ways for you to teach your children about money, household finances and how to look after their own costs of everyday living once they leave the nest. Whichever way you do it, you should be sure in your own mind that your kids have at least a reasonable knowledge of how to look after their own finances that will enable them to start off living their own lives with good background knowledge of household finances and the relative benefits of borrowing and saving.