Monthly Archives: May 2018

Bad Credit Motorcycle Financing

For motorcycle buyers with bad credit it can seem impossible to get approved for a loan. Many lenders view motorcycles as a luxury purchase and as a result make it much more difficult to get approved for a bike, then a standard car loan. But as a motorcycle buyer with past credit problems, you shouldn’t let what seems to be an impossible situation destroy your freedom of the open road.

Time and time again motorcycle buyers with poor credit histories make the same mistakes when trying to get approved for a loan. This article provides tips for finding a loan even if you have a bad credit history with a bankruptcy.

1. Don’t Rely On Dealership Financing Only

Yes it is true that motorcycle dealerships have a variety of financing sources to offer you. But those financing sources are nowhere near the number of available lenders nationally. Most motorcycle buyers with bad credit head to the dealership submit an application, and after getting declined assume it is impossible to get approved. This is the wrong approach.

The fact is a dealership normally only submits your application to the lenders that have specifically setup a relationship with the dealership. There are many other lenders that have never approached the dealership that most motorcycle buyers completely ignore. This includes credit unions, local banks, and many specialized lenders that focus strictly on bad credit applicants.

2. Don’t Give Up Too Soon

Most motorcycle buyers give up way too soon after getting declined for a loan. Sure you might feel a sense of rejection, but don’t let declines deter you. With a self defeating attitude you’ll never be successful with getting approved with bad credit.

A more wise method might be to approach the whole motorcycle financing process like a game. Just because one lender turns you down, doesn’t mean you give up trying to win the game, you keep seeking out other lenders. Don’t give up until you are successful!

3. Focus on Lenders That Specialize In Bad Credit

In every market there are lenders available that focus on poor credit applicants. It is important that you do your research and seek out these lenders.

For motorcycle and ATVs there are a variety of lenders that offer bad credit motorcycle financing. But without the motivation to seek out these lenders, you’ll end up never finding a loan like many motorcycle buyers with poor credit.

4. Show Lenders A Down Payment

If you have bad credit, many lenders like to see you have some “skin in the game” before giving you a loan. Most cycle buyers completely ignore this fact.

Showing a lender that you can put a little money down, implies to the lender you are serious about your purchase. Even if you can only put down $500 as a down payment, this can help the lender view your loan differently.

Obviously the more money you can afford to put as a down payment the better chances you have of getting approved. Many times showing a small down payment can make a huge difference. So when you fill out your application make sure you don’t leave the down payment section as zero. Always try to show a little even if it is $300.

5. Don’t Skimp on Insurance

By nature insurance protects the bank or lender in the event of theft, or a collision. Many motorcycle lenders might tell you full coverage insurance is not required. But if you have a poor credit history, showing the lender you will cover your motorcycle with full coverage insurance can make an impact.

US Finance Sector

The U.S finance sector is soon turning into a giant sea, where many big fishes are desperately trying to swim their ways to the top. This sudden spurt in its growth can be accounted to the insatiable appetite of this financial stratum. The never ending greed of the financial sector in U.S had caused the financial system to crumple in year 2008. This greed seems to be going on and on:

Based on recent case studies:

> According to a renowned U.S Journal, even after being banned by the legislation, from using certain illegal practices, the credit card companies are paying no heed. They are going on devising ways to dupe the customers.
> Various big names in the finance sector are going to avoid or much rather do away with the financial reform bill recently issued by Washington. This news has created quite a stir in the financial sector.
> The Volcker Plan has levied restrictions upon banks to make tentative investment unless it is on behalf of the customer. A number of finance hubs have figured out a way to come clean of this rule.
> The New York Attorney General is accused of carrying out a false investigation about the insurance companies extracting profits, from the benefits belonging to families of their loved ones who have been killed in the Afghan Wars. This report has been flashed on many news channels.

The years of labor taken in coming up with these convenient monetary policies has given birth to this insatiable financial sector, which is expanding day by day. It is gradually turning into a monster whose hunger knows no end.

Personal Finance Guide

Financial planning is about the thinking and the planning of what you want to do in your life, such as buying a house or a car, getting married, planning your children education. It also determines your financial capability to face any unforeseen circumstances in the future. It is an important process for people who want to have healthy financial life. Unfortunately, many people, especially those in young age don’t realize the important of financial planning. It never too late to start the planning, but you should start it as early as possible so that you have sufficient times to plan and to shape your financial future that in-line with your financial goals.

Don’t think that financial planning is a hassle process. Instead, think it as a need for our living process. If you have a good personal plan, you will be more prepared and informed about your future needs. With a proper planning process, you know the resources you currently have and what resources you should have in the future in order to achieve the goals you set in your plan. Regardless of many advantages in having financial planning, you will benefit from at least 4 benefits of them:

Benefit #1: Control of Your Financial Affairs

In financial planning, you will look at how you will be budgeting and spending your money over time, saving and investing to achieve your financial goals. Therefore, by knowing how and where your money goes, you will have a better control on your financial affairs and be able to avoid excessive spending that can lead unmanageable debt problem.

Benefit #2: Better personal relationships

Most often, debt problem causes relationship tension between you and people you know because they may get away from you as they afraid you will be borrowing money from them. If you have a good financial plan that makes you live happily without the need of borrowing money to make ends meet or expecting handouts from others. Indirectly, you with have better personal relationships with people around you, such as your family, colleagues and friends.

Benefit #3: Protecting your financial resources

By planning your financial effectively and control how your money goes with a good budget plan, you will have a sense of freedom from financial worries because you have planned for the future and be more prepared to face any unforeseen incident that may happen throughout your lifetime. Therefore, you will be more effective in obtaining, using and protecting your financial resources to ensure a healthy lifestyle through your entire lifetime.

Benefit #4: Plan for your retirement on time

How much money do you need to save for your retirement? Without the financial planning, you will never be able to get the figure. Nowadays, many people need to continue working to earn their living, just because they don’t have a financial plan that enables them to retire when they reach their retirement age. If you plan to retire on time and financially healthy at the time of retirement, then you should start it as earlier as possible. In fact, financially healthy life is all about starting on time. The sooner you set it up and start saving for your retirement, the better off you will be in term of the sum of money invested.

Summary

Financial planning is not just a need, but a must-to-have for people who hope for financially healthy lifestyle throughout their lifetime. You need financial planning and it must be started as soon as possible to ensure you have sufficient times and the sum of money invested to achieve financial independent over time.

Accounts Receivable Financing

If you are a small business owner you will know exactly the struggles of obtaining capital to fund and grow your business that businesses are facing today. With banks limiting lines of credit and loans more businesses are turning to accounts receivable financing. In this article I will try to help you determine if accounts receivable financing, also called factoring, is right for you.

What Exactly Is Accounts Receivable Financing?
Accounts receivable financing is when outstanding invoices or accounts receivables are sold to a finance company. This provides instant cash flow for the business and the risk of collecting the outstanding receivable is transferred to the finance or factoring company. The finance company will pay a discounted amount for the receivables based on the age of the receivables. Accounts that are past due or over 90 days old are typically not accepted by the finance company.

Advantages:
There are three main advantages for companies that sell their receivables to a financing company.

The first advantage is that the collection of the debt is no longer the responsibility of the company. This frees up the company’s resources to focus on other more productive activities. The company also receives a set amount of funds and long longer has to make contingency plans for cash if customer’s fail to pay their debts.

The second advantage for a company is the ability to free up working capital. Assets that are typically tied up in inventory and accounts receivables can be turned into cash more quickly enabling the company to use funds to help grow the business.

The third advantage is that it provides and quick form of financing. You do not need to gather up tax returns and write up a business plan like you may be required to do in order to get a loan.

Disadvantages:
While there are many advantages for a company that factors its accounts receivables, there are also potential drawbacks that a business should take into account when deciding if factoring is the right choice. The discount fee and other charges incurred may seem high at first but over time these costs may be lower than interest incurrent on a bank loan. You should always shop around to make sure you are paying the lowest possible fees and weigh the costs against the interest a bank would charge you on a loan.

Is Accounts Receivable Funding Right for my Company?
This is a choice obviously only you can make. There are some things to think about before making your decision. Is the money needed immediately for the company to survive or to take advantage of a business opportunity? Is your company ready or have a need for more money and expansion? Have you explored all sources of funding available to a small business?

Home Based Business Financing

Well, the good news is there are several resources available to finance your home based business. You’ll have to do some research to find what’s available in your area, but this guide will show you several areas to begin looking to get the financing you need for your home based business.

The Small Business Administration (SBA) is an excellent place to turn to for home based business financing. It doesn’t make grants that your home based business won’t have to pay back, nor does it make direct loans to small and home based businesses. Instead, the SBA guarantees loans given by private lenders. This reduces the risk associated with new business ventures and makes it easier to get lenders for your home based business. However, to get a SBA loan, your home based business must be a profit making one, and you will have to guarantee your loan personally. This means putting your personal assets at risk. Also, to be eligible for an SBA assistance and/or loan, your home based business has to be in the United States, and there’s other criteria that must be met. Still, if you’re looking for financial assistance to start your home based business, the SBA is a good place to start.

Private grants are another type of financing you can look into for your home based business. There are many different types of grants, and there could likely be one for your home based business. The Internet is a great place to do your research. The grant process can take awhile, so if you decide this is the route you want to go for financing your home business, and your home based business meets the criteria of a grant, you will want to get started with the grant writing process as soon as possible. Also, you may need to hire a grant writer to help you. Grant requirements are strenuous, and there’s a great deal of competition for small and home based business grants. It’s well worth the time and effort to research grants, though, to try to get a grant for your home based business because the money given does not have to be paid back.

Another type of home based business financing is through what’s called angel investors. These are investors who are willing to lend money to fledgling small and home based businesses, generally because they know a good thing when they see it and are willing to take some risks. Angel investors for home based businesses may not be that easy to find, but with some networking in your area, you’ll be able to locate several. Joining your local Chamber of Commerce is a good way to find angel investors. Also, talk to accountants who may be able to bring together several investors for your home based business. This happens a lot more often than you might think because investing in a small or home based business can provide a good tax break for many people. And then there are just some good souls out there who want to help others start home based businesses because they’ve been there themselves and managed to create successful home based businesses of their own.

One final note. The only investors to be wary of for your home based business are those you might find in your own family. It just simply isn’t a good idea to borrow money for your home based business, or for anything else for that matter, from family members. There are just too many things that can go wrong in a financial obligation like this. A family member you borrow money from to start your home based business may pressure you to run the business their way, or worse, your home based business could go under and have to declare bankruptcy. It’s horrible to lose any investor’s money, but when it’s Uncle David’s, it’s much worse. So only borrow money for your home based business from family members as a last resort, and only if you’re certain you have a sure thing.