Secured Vs Unsecured Credit Facilities

Compared to equity financing which needs a period of up to 12 months if you are listing your company for a first time, debt financing is a way to gain quick access to funds. Other reasons why equity financing is ruled out could be due to stringent criteria required on companies to be listed and directors' reluctance to dilute their shareholdings.

Companies can choose between secured and unsecured debt financing. Secured overdrafts would require the companies to pledge collateral in the form of cash or property. Unsecured overdrafts do not require any collateral but the credit line granted out is subjected to yearly reviews. Both facilities would require the personal guarantees of all directors. Business overdraft facilities serve as a safety net that your company can utilize during emergencies. The interest rates are much lower than drawing down on your personal Credit Cards.

Secured overdrafts typically have a lower interest rate, higher loan quantum as well as a potentially shorter loan tenor of up to three months. You can pledge assets such as cash, property, stocks, bonds, debentures etc. If property is being used as collateral, bankers typically look at the location of the property, whether it is fully paid up as well as the current market value. Depending on the type of collateral pledged, the loan quantum granted out can be slightly lower or much higher than the market value of your collateral.

Alternatively, consider the unsecured business installment loan which offers you interest rates that are comparable or even lower than what your local business financing assistance bureau is offering. In addition the loan quantum granted out by financial institutions is four times more. The loan application process of most financial institutions today is fast and hassle-free. The loan can be approved as fast as 24 hours and the funds are available for your usage immediately. In addition you are free to use the funds for working capital, purchase of fixed assets, payroll financing etc.

To qualify for these credit facilties, companies have to be in operations for a minimum of three years. The company directors must have a minimum of two years of relevant working experience and at least one director is aged between 25 and 60 years of age at the point of application. Lastly, the business must not be involved in certain high risk industries such as arm manufacturers and casinos. To learn how debt financing can help you to grow your business, speak to your banker today.

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Can You Trust Your Bank?

Banks won?t survive without our trust. The whole system functions on a promise to keep our money safe and to give it back to us when needed. Keeping your money in the secure financial institution sounds so much safer than under the mattress in your apartment. The question is, are your money really safe especially now when the whole world is experiencing the strongest economical tsunami? How do banks really work?

The basic idea is that we deposit our money into banks with an illusion that your money is untouched and much safer than at home. After all, chances of your house being robbed are much higher than the Bankruptcy of the bank (or so it was until now!).

In reality, though, under the promise to return the money the bank gives loans to individuals, businesses and other banks. By charging the loaner interest rates, the banks earn profits. You, as a depositor, receive the smallest portion of those profits ? interests. Speaking of interests, it is also called the price of money because this is what banks pay to us (depositors) to keep our trust.

So theoretically speaking, at the time of global doom that we are facing in financial world, is it possible that at some point the bank might not have your money at all? After all, banks are allowed to credit more than they have! Plus, almost all of us trust banks unconditionally hoping for a protection of our income. Banks continue to function because the depositors usually don?t ask for all of their money at the same time. That way bank freely uses the money for mortgages, loans and other form of credits.

What scares me the most is seeing banks fail. Imagine if majority of people around the world would panic and withdraw their savings. On the second thought, I would probably do the same. Look at all the banks which are struggling to survive! How do you know that your bank is safe? And even if your money is safe, would you be able to get it out if you want to? Your credit card is not going to work when the bank is down! Imagine ending up without any cash at all!!!!

As a forex trader, I am struggling to figure out how to keep my trading profits and other savings safe during the credit crunch! Witnessing many businesses going down and banks sinking, did it cross your mind to buy a safe and keeping the money at home?!

If buying a safe has crossed your mind, you are definitely not the only one. Did you know that the top-notch safe manufacturers report a 25% increase in sales of the secure safes that can be installed in your home. And that is just the beginning. The fear of meltdown is giving the results. It wouldn?t surprise me that more and more people will turn to safes instead of banks and keep their savings locked at home.

You and see it, as well as I do ? there is a sign of panic among us. We all want to protect what we have. Not that money is the most important thing in life, but without a penny you are butt naked on a street. This is not a good picture, especially if you have a family to take care of.

Let's be honest, some countries cannot guarantee all the bank deposits. In my opinion, some won?t be able to borrow enough to make even half of the bank assets. And what is the solution? Bankrupcy is in the air. This is, indeed, a pure state panic.

Let's of course not forget that some of your savings are covered by the Financial Services Compensation Scheme, so my advice is to either spread your savings in different banks (that way you can get compensation, instead of loosing a big portion your money in case of a Bankruptcy) or buy a safe!

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Must Know Facts About Government Grants For Single Parents

Our community have the tendency to look down on single parents when they are a unique bunch of people that are gutsy, stubborn with rough life circumstances and definitely deserve our respect and kudos for carrying on such a hardship.

A single parent must go through the loss of or separation with partner but never let it affect the rest of the family members. They have to raise the kids himself/herself without having to depend on any aid whatsoever, he/she has to provide the kids with an acceptable level of education, a proper dinner to be prepared, children to be taken care of, a stack of utility bills like mobile, water, gas, credit card bills to be paid within the due date, caring for sick members and many of other such things.

It is good that the administration is trying to understand the types of difficulties faced by a single parent and to ease the financial load for a minimal, it has kicked off government grants for single parents to reward the continuous efforts of these wonderful group of people.

Read on to glean a number of useful guidelines on improving the quality of life enjoyed by your family members that you adore.

Sufficient Government Grants for Single Parents to Live Better

The community often have this strange misunderstanding that the government is trying to reduce the funding for single parents and this misunderstanding is perhaps because the small amount of applications submitted.

Again, this is the explanation of why the amount of government grant for single parents is notably lower than other categories of government grants like those for home improvements or education or small business. So the granting system for single parents doesn't seem attractive to many.

The trick or the great news is that wherever there is a low competition chances of finding success are increased. If you apply for the government grant and fulfill all the terms and conditions and present your circumstance as a single parent convincingly, your application stands a better chance for approval than those of others applying for educational or small business grant money. Getting approved and to land the grant money is not difficult at all.

Government Grants for Single Parents Unlike Loans from Banks

Yes, what you heard is right. This is not a loan. There is no need to settle the grant money granted by the government, no creditor disturbances and no more high monthly interest rates to be paid. Everything is waived off. The grant given to you is entirely yours and it is all up to you when it comes to the spending part.

To boost your approval chances, you might need to settle for a system of grant application, filling up yourself on the subject of government grants, read up the application tricks to satisfy the panel and always submit your application for multiple grants listed under the same broad category.

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