How Your Credit History Affects Your Chances of Getting a Business Loan

Your puny credit card may be the answer to your business finance dilemma. Your credit card, along with other business loans, helps increase your credit score if you manage it perfectly. If your business also works with vendors who report to credit institutions, then your scores could increase.

During your non-entrepreneurial years, the use of a credit card under your name, and the management of this credit card, will already create an impact in your credit score. When you get financing for a new car or mortgage for your house, your credit score resets to accommodate your performance with the new financing.

 A start-up company still has no financial background, but lenders and vendors may consider financing the company based on the proprietor’s credit history.

A higher funding from your credit card can help propel your company a long way. As long as you have not missed a payment and you pay the exact amount regularly, lenders will improve your standing and provide financing for the improvement of your business.

However, as it is only personal credit, the loan may be quite limited, but it will grow as your business shows results through its invoices.

Common Stock Investment Terms for Beginners

If you’re just starting to invest your money in 2014, you’re probably in for the besttime of your life. However, you’ll need to know some basic knowledge regarding stock investing. It might seem that you are just buying and selling stock, but you also need to understand some basic terms used in the market.

1.    The Farm Terms

Animals are a very common term in the stock market. Bull markets appear when the country is doing well with the economy and it sets the ideal conditions for GDP growth, which makes it easier and less risky to pick stocks. A bear market is the complete opposite of the bull market because the economy is not doing well, there is high unemployment and a great recession.

2.    The Common Markets

The Capital Market comprises of long-term bonds, shares and stocks. This is essential for young investors simply because the volatility of the market will have minimal effect on the final value of their investments in the future. For short term investors, there is the Money Market, which deals in annual-yield bonds, treasury bills and certificates of deposits. The Money Market does well if the country’s economy does well.

3.    Beneficial Owner

A beneficial owner is someone who is the real owner of a stock or bond. Stocks or bonds may have three names including the name of the broker, bank and the investor. The investor is the beneficial owner

The Best Way to Find Investors For Your Business

Small businesses begin humbly with small backings and for further developments, business proprietors will need investors to help them reach the other length. Finding investors, especially in today’s economic stature, could be difficult, but here are a few ways to help you.

1.    Brokers

Contacting the services of entrepreneurs or people who have successfully raised money through fundraising and preparing business plans can help you greatly. Brokers also have a network of investors looking for new business to put their money in. They could give you good insight about investors. They can also point out which investors could benefit from your business.

2.    Profiling

Your broker could give you an idea about the investors you need, but you need to lay it down on paper. There are different kinds ofinvestors; some choose to be passive and allow you free rein on the business. Others will give you advice and want to have a say in terms of the hiring process, product or project implementation and other details. Each of them could give you an advantage in your business.

3.     Total Capital Needed

Nothing attracts an investor more than knowing how much capital do you need to increase your business. If you say a good enough figure and the returns you could provide to your investors, you have a better chance of gaining more investors. It is highly important that this number is final as investors will not take kindly to figure errors, especially in business.

Commodities You Could Invest in This Year

Oil is actually leading the commodities streak this year, but aside from oil, you have other commodities you could purchase in to ensure maximized profit this year. Here are a few things to consider when investing in commodities today.

1.    Aluminium

Forecasters expect increased infrastructure and construction stimulating contracts and policies from many developing countries in Southeast Asia including the gigantic China. This could move the prices for aluminium on the rise. Aluminium had the value of $2,087/ metric ton last year and forecasters project that by 2014, $2,300/metric ton would be its value.

2.    Copper

Again, because of infrastructure and stimulus from China, demands for copper could increase. However, the mineral could become rare and expensive as supplies are forecasted to slow down by the next five years. Copper had $2.61/pound last year and by 2014 it is projected to increase up to 3.05% from 2012 with a price of $3.72/pound

3.    Gold

Gold still has a high value especially today when the European Central Bank allows unlimited bond-purchasing this year. However, lower public demand could limit its growth by 2014. Gold had a value of $1,665/ounce in 2012 and is expected to increase by $1,800/ounce 2014.

4.    Sugar

Any investor looking for stable prices should invest in sugar. A huge supply of sugar coming from Brazil and India lowered the prices of the commodity will prevent major changes for the next two years. Sugar had $0.19/pound on 2012 and in 2014, it could increase to $0.20/pound.

Preparing For Your Child’s College Education

Parents could only save so much for their child’s elementary, middle and high school education, but college, with its whopping £75,000 price tag (just for public colleges), is something that will be difficult to save without proper financial planning. Here are a few ways you could save up for your child’s college education.

1.     Public Vs. Private

Many differences in the quality of education, courses, specialities and teaching mechanisms exist between both public and private colleges and universities. Public colleges might cost around £75,000 to £90,000 in total for four years; private colleges can cost around £145,000 to £160,000 for the same span of time. Choose carefully while considering the other items as well.

2.     Estimate the Total Costs

While you know the numbers for public colleges are five digits and private ones six digits, you should not let it scare you; it is possible that your child could gain scholarships for excelling in certain fields that make them a college or university’s asset. You could also get financial aid and student loans. You’ll need a separate financial plan for student loans (like we did with my son).

3.     Don’t Save, Invest

One thing most households today do is save money and leave it in a bank. That is not a viable option. The best way to finance four years of your child’s college education is through investing in financial instruments. Invest aggressively. Stock funds historically have exceeded other investments over long periods of 10 to 15 years. With enough money, you could cash in and have everything, including your debts, settled at once.

Should I Get Stock Market and Brokering Classes?

At my age of 34, probably, taking a college undergraduate degree in stock trading would help me in my retirement age. I plan to invest in stocks and bonds once I reach my retirement age. But I often asked myself, “do colleges really have courses designed to help graduates know more about the stock market?” I’ve asked around the Internet and discovered the following truths.

In reality, no college or university actually offers a course in stock trading. You and I can learn about stock trading by reading books about the stock market, looking at the daily Wall Street Journal and Barrons and knowing the terminologies they use in the magazine. Stock trading is like a foreign language.

However, based on my research, experts say that if you want to learn a thing or two about stock market investing in college, I should probably take economics courses and audited accounting classes.

Understanding a company financial report, knowing how to calculate risk analysis, probability and statistics are great knowledge that can help future investors know where to put their money to minimize losses and increase gains. 

Many experts also say that many beginners in the field will ultimately lose so much in the first year. Inevitable as it is, according to them, the stock market is a lesson on trial-and-error. Some patterns, no matter how predictable, still have a tail risk that is highly improbable, yet they can still happen.

So, should I take classes or no? I think I’d rather trust my experience on this one. Besides, online courses for the mathematical side of things are available online.

Where to Invest Money in 2013?

If you failed to meet your investment expectations in the first half of 2013, you might just get lucky in the second half. The economy literally fluctuated worldwide and many investors found themselves having great losses. However, don’t fret; here are a few more things that could get you the investment returns you need from your diversified portfolios.

1.     Technology

The mobile device and technology developers today have not stopped developing new ways to entice their customers to place high value on their products and services and more and more start-up software developers continue to join the scene. Sticking with strong competitors in this arena that had proven for years to grow increasingly is a good way to invest your money in the 2^nd half of 2013, especially with the 3^rd Quarter technology expos already nearing.

2.     New Ground

Southeast Asian countries report well on their finance and economy for the 2^nd quarter of 2013. With most Asian countries now increasing their credit ratings, more entrepreneurs continue to lay their businesses into these new grounds. Look for these companies trying to tread on new ground and stick with them because according to experts, it is greatly possible these businesses can grow enormously the following year.

3.     Bank Woes

Coming out of terrible financial scandals, heavy losses and backlogs, investing in banks is not an option this year. With many financial companies involved in insurance and investment frauds, you could only expect lacking confidences from investors. Growth can be minimal with banks or at best, greatly fluctuating.