Tag archive for ‘finance’

3 Big Reasons to Transition to a Business Bank Account

by Admin - on Jun 27th 2018 - Comments Off on 3 Big Reasons to Transition to a Business Bank Account

Businessman signing bank documentsHaving a business bank account is something that businesses need. Those starting out, however, often rely on their personal accounts while focusing on the stresses of starting out. It’s very important that you undertake the transition to business bank accounts sooner rather than later to reap the many benefits that this brings.

Here are three of the biggest benefits that having a business bank account in Golden Valley as soon as possible will bring to you.

Professionalism

The problem with using a personal bank account is that the name on the transactions will always be your own. This is fine when your business is small, but once you start expanding—especially to areas beyond your comfort zone—it might put off people who will want to know why your trade name isn’t on the accounts. This is especially true for checking transactions. Additionally, having a business bank account lends an air of credibility.

Accuracy

Another area where having a business bank account is an advantage is when it comes to accounting and taxation. Bank records are very reliable and acceptable by the state authorities as legal documentation when it comes around to tax season. Having all of your expenses and income flowing out of and into one account makes it so much easier to monitor things. This alone and the hassle that it avoids is a big enough advantage.

Credit Card Payments

Individuals can’t be accredited to receive payments via credit card, which makes it very difficult when taking payments beyond your area or even internationally. With a business bank account, you get the option to get a business checking account. This, in turn, opens you up to accreditation by your bank. Since most people prefer shopping via credit or debit card, this is a big advantage for expanding business.

What you Should Remember when Buying your First Home

by Admin - on Apr 4th 2018 - Comments Off on What you Should Remember when Buying your First Home

a man carrying a sofa as he moves into a new homeBuying a home is a huge responsibility, and for most first-time buyers, it can be pretty overwhelming. It is exciting, but you also have to remember that there are a few things that you have to keep in mind to make sure that your first home-buying experience will be a pleasant one.

Snyder Realty Team is here to discuss some tips on how you can become successful when buying your very own house.

Make a Strict List of your Needs and Wants

There is nothing better than knowing exactly what you want in a home. If you have a particular location in mind, then go ahead and put that down. If you need a vast space and you know exactly how many square feet you may need, then include that too. If you need specific amenities such as a swimming pool, a huge garage, and the likes, then let your realtor know.

This will make it easier for you and your realtor to filter the houses that you might want to look at.

Hire a Good Realtor

This will make a huge impact on your first home-buying experience. Since you are new to the scene, you would need an experienced realtor that can help you with every aspect of the process. You need someone who can guide you along the way – someone who is an expert at finding a great home for an exceptionally good price.

Interview your realtor, ask how long they have been in the industry, and ask for past clients that you call as references.

Stick to a Strict Budget

Compute your expenses and determine how much you can spend on buying a new home. When looking for a new home, you should always remember to stick to your budget and never go overboard. It is easy to be tempted to buy something that is out of your scope, especially if you find something that you think is worth splurging on.

However, you should always remember to never to let your emotions control you and think of what you need in a home to avoid going over budget.

Talking to your realtor and making them understand your needs is a must and is something you should put on the top of your list.

4 Tips to Negotiate a Lower Housing Loan Interest Rate

by Admin - on Mar 28th 2018 - Comments Off on 4 Tips to Negotiate a Lower Housing Loan Interest Rate

a family house on a pile of moneyWhen buying a house, getting the most favorable interest rate is the goal. After all, a 1% difference could mean thousands of savings per year, which adds up to hundreds of thousands of pesos when the loan matures. While average Filipino borrowers look for the lowest advertised interest, you might not realize that many rates might be open for negotiation.

Whether you’re speaking with a real estate agent or a bank representative, the other party can get generous if you play your cards right. For starters, follow these pieces of advice to prepare yourself for the negotiation:

Get Tips from Those Who Negotiated and Succeeded

Ask relatives or friends who already did it and snagged a lower interest rate. Of course, your chances of securing better interest depend on your unique situation, but it pays to learn strategies that have been proven to work.

Take the Initiative

Real Estate Hub or any Lancaster review would encourage you to bring it up during the conversation. Even if you’ve never haggled over the price of something in your life, the other party might be secretly waiting for you to start negotiating at some point. It’s perfectly normal, and there’s nothing wrong with it.

Be Ready to Compromise

Don’t ask for better interest if you lack the credentials to demand it. Make sure you have a strong and reasonable case to back up your request. In many cases, the other party might ask for something in return to grant your appeal, like decreasing the loan amount. Keep an open mind because you can’t have it both ways; you might have to lose some to get some.

Have Options B, C, and D

The interest rates in the country are market-driven, which is why lenders compete fiercely with one another to get as many customers as possible. Use this fact to gain some leverage in the negotiating table. Shop around and talk to different lenders to know their best offers. Then, ask them if they could beat the interest rates others are willing to give. If the other party wants your business bad enough, you might be given more room for negotiation.

Repaying a housing loan can be a 20- to 30-year commitment. Managing to bring your fixed interest rate down could suffice to keep a serious amount of money in your pocket for a long time.

Friendly Advice For Startups: Reasons Why You Need a Finance Talent

by Admin - on Dec 15th 2017 - Comments Off on Friendly Advice For Startups: Reasons Why You Need a Finance Talent

paper bills and coins on top of a spreadsheetA typical start-up story begins with an entrepreneur coming up with an idea or product that they think will be beneficial for the consumers. They will spend months or years manufacturing the prototype, likely in their own garage or a small facility. To market their product or service, the entrepreneur will need to look for an investor who believes in the business idea and the goal.

Because starting a business requires you to make big financial decisions, it is wise to consider hiring a professional to help you. It could be an accountant, a clearing clerk, or an accounting head.

Working with a financial services recruitment agency is a good strategy. Read on to find out why.

They will draft the business plan for you, along with the budget proposal

business plan involves determining the possible revenue that you expect to receive in your first year. You will also have to decide on the amount you should devote to marketing. With the help of a financial expert, you do not have to worry about these considerations. They will help you handle the budget and determine the amount you will spend in areas that will help the business grow.

You will have a partner in managing your finances and running your business

Finance experts will not ruin the primary vision of the entrepreneur. They will have no intention of altering how they run the business. On the other hand, traditional investors may use their own skills and probably believe in their own knowledge regarding the market without giving the entrepreneur the freedom to decide or provide input.

You receive the advantage of their network

Finance talents have the expertise, as well as the vast connection that you will need no matter what industry you belong to. They have the contacts and reliability to convince their network to help raise cash for your business. In the end, networking does wonder to a start-up and this would not be possible without the assistance of a financial expert.

Entrepreneurs who are great at building new products can be successful if they get the help they need in creating business plans. If you have a business idea that you want to pursue, start looking for the right financial talent today.

Do You Need a Second Mortgage?

by Admin - on Dec 16th 2016 - Comments Off on Do You Need a Second Mortgage?

Mortgage in Lake OswegoThere are times when there is a need to seek a second mortgage on your house. For some, they seek a second mortgage to raise down payment for a brand new car or to help pay for a long-planned vacation. Though these reasons may be valid for others, the same may not hold true for you.

Nevertheless, Primary Residential Mortgage, Inc. noted that seeking a second mortgage might be an ideal option when you need extra cash to spend on worthwhile endeavors. What are these?

Education

There are homeowners who seek a second mortgage to help finance their or their children’s education. Although you can always apply for a scholarship grant, you must be aware that only a few get them. This does not mean you will not be able to get one, though. You can apply, but would you rather hinge your hope on such an application? What if you will not get it?

Your Other Option

If you want to go ahead with your scholarship application, would it not be prudent to visit a mortgage lender at the same time? According to HSH.com, this last option may be better for you as it allows you a fallback position. Put it this way: If your scholarship application is accepted, then all is well and good. There may be no need for you to seek a mortgage. If not, at least you have an alternative ready in form of a mortgage.

Business

This is perhaps one of the most common reasons homeowners seek a second mortgage. According to Clark.com, this may even be the least costly alternative to finance a business idea. Working in a company is fine, but with the volatile situation in the employment sector, it might be wise to establish a new income stream. In fact, this could be a good time to realize that business concept you had been thinking about for some time now. You can use the proceeds from the second mortgage as a starting capital for your business.

While you can always seek a second mortgage to buy that new car you have wanted for so long, it might not be the best of ideas. Remember, securing a second mortgage is a smart move if the purpose itself is worthwhile and could deliver you benefits at some later time. Seek a mortgage only for the right reasons.

Cash Management: Slightest Mistakes can Lead to Bankruptcy

by Admin - on Oct 15th 2016 - Comments Off on Cash Management: Slightest Mistakes can Lead to Bankruptcy

Capital optimizationAll business owners and operators have numerous obligations in terms of finances. From loans to mortgages, from salaries to assets, and from cash flow to overall profits, they have a lot on their hands. But just like all organizations, serious financial-related issues may arise, which can result in liabilities and may even ultimately lead to the bankruptcy of a company.

This is why proper cash management is a must for all businesses. With the help of a reputable and well-established provider of cash management services, you can rest easy knowing that all financial aspects of your business are well-taken care of.

Staying Financially Afloat

Through such services, you can remain financially afloat as the service provider will take full responsibility for all financial components of your business. These include revenue collection, investing your organization’s cash on profit-making ventures. They will also manage your company’s assets to ensure that they remain useful and profitable.

Cash Flow and Risk Management

Since cash management has everything to do with the management of a company’s liquidity and cash flow, it is extremely important for you to leave such matters in the hands of professionals. Always remember that when it comes to finances, there are so many risks and procedures involved, and even just the slightest mistake can already cause a major financial disaster.

Capital Optimization

Another way that a cash management company will help you with is through capital optimization. Through capital management optimization, they will develop a program that will allow your company to achieve its maximum potential in terms of cash flow and liquidity. Your chosen service provider will also discover and determine any potential financial disadvantage as well as help you improve areas that require so.

All in all, having such financial experts on your team will help you remain financially stable, grow and expand your company, and ultimately, have better revenues and profits.

Second Mortgages: The Essentials You Need to Know

by Admin - on Jul 5th 2016 - Comments Off on Second Mortgages: The Essentials You Need to Know

MortgageA second mortgage, also known as home equity line of credit (HELOC), is simply a second loan on your house. As with your existing mortgage, your home will secure your second mortgage. This means that your lender could legally take your home if you default on your mortgage. When this happens, your lender will sell your home to pay off your original loan and the remaining money from the sale (if applicable) will then go into your second mortgage.

Second Mortgage Basic Facts

Shantel Matagi and other lending institutions noted that many homeowners nowadays are considering second mortgages since the mortgage rate they’re being offered are lower, even if the property values are higher.

  • Second mortgages come in two primary types: home equity loan and home equity line of credit. With HEL, your lender will provide you money in a lump sum, which you’ll have to pay off in a predetermined time period at fixed intervals. The interest rate is usually fixed. An HELOC, on the other hand, functions like your handy credit card so you can spend cash whenever you need it. The interest rate is usually adjustable.
  • The amount you can borrow will depend on several factors — how much equity’s in your home, your loan to value (LTV) ratio, and your credit rating. Most lenders won’t lend you more than 75% or 85% of the LTV ratio of your combined first and second loans.
  • You can’t simply use funds from your second mortgage for anything. Plenty of homeowners use their second mortgage for huge expenses like repaying debts, purchasing another home, paying for college tuition, huge medical expenses, or home renovations. Essentially, you wouldn’t want to take out a second loan if you’re just planning on spending it on a grand vacation or other unnecessary expenses since you’ll be risking your house in the event that you default on your loan.

Many lenders offer second mortgages to qualified borrowers. With this in mind, you don’t necessarily have to take out a second mortgage from the same lender. The most vital thing to do is research your options, compare total fees and interest rates, and then decide which one will be best for your specific financial circumstances.

Separating your Business and Personal Finances

by Admin - on Jun 25th 2016 - Comments Off on Separating your Business and Personal Finances

Business PeopleAmong the most important aspects of operating your business is managing accurate records of the expenditures and income since this is the best way to monitor how your business is performing. Because of this, you must make sure that your business and personal finances remain separate, otherwise, complications could occur.

Practical Reasons to Separate your Business and Personal Finances

There are a couple of reasons why you should be proactive about keeping your personal and business finances separate, and a critical one is the potential tax complications. The Internal Revenue Service or IRS enables businesses to claim tax breaks of deductions for expenses that could be counted as business expenses like supplies and travel expenses. However, you submit proper documentation to prove that they’re indeed business expenses.

Note that if your business is audited, the auditors will closely examine every expense to validate if they’re associated with your business’ regular operations. In the event that you don’t have proper documentation to support your claim, you will have an extremely difficult time verifying your deductions.

Another vital reason for separating your finances is for debts and liability. If you have a limited liability company or business corporation, maintaining separate finances will benefit you especially in case a creditor comes to demand unpaid debts. Otherwise, if your personal and business finances are combined, creditors will have an easier time claiming your assets, regardless if they’re business or personal, as payment for your debts.

Lastly, consider your business credit. While you could probably obtain a credit card for your business using your personal credit score, you’ll require a clearly separate credit profile for you business if you want to apply for bigger loans, vendor lines of credit, or a business bank account in Bloomington, says a financial adviser.

Combining your personal and business finances could create headaches along the way, especially when tax season comes around. However, if for some reason you really need to combine your finances, make sure that you keep accurate documentation that clearly delineates expenses into a personal or business

Can’t Refinance Your Mortgage? Here’s Why

by Admin - on May 24th 2016 - Comments Off on Can’t Refinance Your Mortgage? Here’s Why

RefinanceLooking to refinance your home? Unfortunately, it’s up to lenders if you’ll be able to refinance or not.

Altius Mortgage Group enumerates crucial things that could deem you unqualified for a refinance.

Insufficient Equity

Plenty of homeowners took out option ARMs and interest-only mortgages way back in the housing boom since prices had nowhere to go but up. However, when the market became stable again, plenty of those homeowners ended with little to no equity. This inflated their LTV or loan-to-value ratio and made them unqualified for traditional refinancing.

Poor Credit Rating

Creditors normally consider a credit rating of around 620 poor. Couple a poor credit rating with a high LTV rating and you’ll have difficulty in find lenders who’ll risk giving you a refinance loan in today’s unstable market.

Massive Mortgage Amount

Jumbo loans are significantly more restrictive than conforming loans and come with increased interest rates. Lenders will scrutinize your application and your background more carefully if you’re asking for a large amount for refinancing.

Lack of Assets

The underwriter could deny your refinance application right off the bat if you can’t show seasoned and adequate assets. Financial experts recommend that you save money early and regularly by putting it in savings and checking accounts, bonds, stocks, and retirement funds, among others.

Inadequate Income

This is a major factor because if you don’t find yourself below the maximum DTI or debt-to-income ratio required by lenders, you won’t be able to secure a refinance loan.

Inconsistent Job History

If you don’t show absolute proof of consistent employment, normally for the last two years prior to refinancing, lenders could deny you even if you have sufficient assets or are presently earning lots of money.

These are only some of the things that could hinder your refinance goals. Contrary to what some homeowners think, you really have to be qualified to get any kind of loan. So if some or all of the above-mentioned scenarios apply to you, resolve your issues to increase your chances of securing a refinance loan.

Insufficient Funds for a 20% Down Payment? Go FHA-Loan Then

by Admin - on May 3rd 2016 - Comments Off on Insufficient Funds for a 20% Down Payment? Go FHA-Loan Then

FHA LoanThanks to the Department of Housing and Urban Development’s Federal Housing Administration (FHA), you can now obtain a home loan from a private lender much more easily. With the benefits that HUD FHA-backed loans offer, you should now consider making the transition from a tenant to a homeowner.

Why go HUD FHA instead of conventional?

The primary reason many home buyers in the country opt for loans backed by the FHA is because they can rest easy knowing that, in the event they default on their loan, the administration will take responsibility for repaying the lender. Bonneville Multifamily Capital points out because the government insures these loans, lenders are at less risk of losing money from defaulting borrowers.

The results? Lower loan interest rates as compared to conventional mortgages, which then give you a greater opportunity of home ownership.

The down payment advantage

Another advantage of securing an FHA-insured loan from the HUD is a smaller down payment requirement. Since you do not have to make the usual 20 percent down payment that most private lenders require, you will find it easier to buy a home and afford paying for your mortgage.

Satisfy the requirements set by the HUD for their FHA loans, and you would only need to come up with a minimal 3.5 percent down payment.

Less worries about closing costs

Most traditional lenders charge borrowers closing costs, further taking mortgage payments higher and making it even more difficult for home buyers to secure a loan. Although FHA loans still come with closing costs, they are far lower than traditional loans. Through an FHA-backed loan, your HUD multifamily lender may only charge you up to one percent of the amount you borrow.

You still need to meet certain requirements and qualifications when applying for an FHA loan, but these are far easier to satisfy and complete compared with conventional loans.