Corporate Finance – Methods to Finance Corporate Growth

It can be very difficult for small and mid-sized businesses to compete with their large corporate counterparts because they lack the necessary access to working capital. It takes money to grow your company and size should not limit or dictate how that happens. Now, there is an innovative and flexible solution to finance corporate growth by selling account receivables.

When it comes to business finance, corporate conglomerates have the advantage of large coffers as well as better influence for obtaining needed credit Historically, SMBs have been limited in their options to access affordable money, but all hope is not lost as innovative alternative solutions have emerged.

Small to mid-sized businesses can level the playing field through invoice financing. By posting outstanding invoices on the online auction marketplace, owners get access to cash quicker than the typical 30-90 day invoice due date. In fact, it is possible to receive competitively-priced money in as little as 24 hours.

This quick, flexible and seller-friendly solution of tapping into what makes up about 60% of a business’s funds opens up a tool for growth and an opportunity to compete with larger companies.

For example: A small owner has an opportunity to expand his operations into another part of town or in another city, but he needs working capital to make a down-payment on a new building or to outfit and buy inventory for a new distribution center.

By selling invoices – when the company owner chooses and at a price he’s willing to pay – from his best customers, he can access the working capital he needs to secure whatever growth investments he needs to make. Because the bidding is open to a global network of accredited institutional investors, the seller gets a competitive cost of funds.

Based on the amount of working capital needed, the seller chooses which invoices to list, how much he wants for them and how much he will pay for the advance. This allows him to finance corporate growth opportunities, like opening a new storefront, with fewer restrictions and more control and flexibility than traditional financing.

Billion dollar corporations had to start somewhere and many of them began as a one storefront business. Taking calculated risks, spending money and obtaining the right financing to meet their working capital needs, gave them opportunities to grow into much larger entities. Small and mid-sized businesses that have hopes of remaining competitive in their industry must look to growth and expansion- and they need a significant amount of working capital to do it.

Participating in this real-time auction for accounts receivable is an efficient and affordable alternative solution for accessing the funds. This can mean the difference between purchasing new equipment that makes production more efficient. And, as a result, making the business more competitive with its larger counterparts.

With this alternative solution for invoice financing, the seller maintains complete control of his funds. He does not have to deal with the hassles of all-asset lien restrictions or covenants that can limit his spend flexibility and focus on business growth.

In business finance, corporate entities that have the size and influence have an edge, but with invoice financing on the receivables marketplace, small and mid-sized businesses can not only keep up with the competition, but enhance overall financial performance

What Does The Student Finance Corporation Do?

The Student Finance Corpration helps students to get loans for completing their studies. The range of loans available are for post secondary education. The eligibility and terms of repayment will differ from student to student based on their financial conditions, repayment ability, credit rating and the college that they are applying to.

This is called a secondary loan market because it does not finance the loans itself but rather acts as a conduit between lenders, students and schools. The specialty of this organization is to service loans from the Federal Family Education loan program. However, the Student Finance Corpration is just one means of getting loans for students and there are quite a few other organizations who provide loans as well

Major types of Student Finance

Student finance comes in four major forms:

Student Loans: Many students apply for federal government to finance their educations. The main student loan is the Stafford Loan, Such loans have low interest rate, no credit check and also do not require any collateral. There are two ways in which the loan is disbursed, one is when a private company disburses it to the family like the Citibank. All the loans are insured by the Federal Government against default. The second type of loan is when the federal government pays the family directly.

Parent Loans: Parents of dependent students can take loans for their children to cover their educational expenses. These are called federal Parent Loan for Undergraduate Students (PLUS) and unlike the Stafford loan these loans are not subsidized and are
charged at an interest rate of 8.5% for the loans disbursed after July 1 2006. Repayment begins after 60 months of disbursement and you can’t wait till the education to get over before repaying the loan.

Private Student Loans: Parents and students turn to Private loans for financing their education need because the federal programs are often limited in the amount of money they disburse and this gap has to be bridged by the private players. The rate of interest also is higher comparatively but there are several plans available which give a lot of flexibility to the parents while repaying.

Consolidation Loans: Student Loan consolidation is used when one or more loans taken for education purposes by parents and students are consolidated into one big loan and that is repaid instead of the smaller chunks of loans. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.

Student Finance Corporation, Newark NJ

If you are living in Newark and are looking for the student finance corporation, newark nj it is known as the HESAA short for New Jersey Higher Education Student Assistance Authority. This authority is the secondary market for loans if living in Newark or any other part of NJ and you feel the need for a federal student loan. The good news is that this authority keeps on coming up with flexible and discounted loans for the students seeking loans in NJ.

For instance in the state of New Jersey the loans are disbursed by the New Jersey Higher Education Student Assistance Authority (HESAA) which is the state’s wing of the Student Finance Corporation. In the case of the New Jersey Student Finance Corporation they waive 1% of the guarantee fee from its borrowers and thus the entire loan amount is used towards education purposes.

Federal State Student Finance Corpration do keep coming up with several programs like this and New Jersey is especially active in coming up programs. Another program that they have come up with is NJCLASS Fixed rate which has an interest rate of 6.4% a good 2% below the PLUS Loans and there is a provision to lower the interest rate further by 0.5%

Mortgage Broker Bond – All About Countrywide Finance Corporation

There comes a point in time when a situation would present itself that you would need to get additional financial aid through the form of a mortgage bond. Getting a mortgage bond with a reputable company is extremely important since it you guarantee you that you would not only be able to get the financial assistance you need. A highly reputable financial institution would provide you flexible mortgage programs which you can choose from based on your needs and ability to pay back the amount you have taken out in the form of a mortgage.

Countrywide Finance Corporation

This is the largest home mortgage creditor in the United States. About 20% of the total home mortgages in the country, which account for about 3.5% of the Gross Domestic Product of the United States, have been attributed to this firm. In July 2008, Nationwide Finance Corporation was acquired by the Bank of America.

As a finance and investment firm, it offers a number of different products and services. Some of these include Mortgage Banking services, loans, mortgage bond acquisition and mortgage processing. Apart from the United States, they also serve clients in the United Kingdom and Japan.

About Nationwide Home Mortgage Bonds

Countrywide Finance Corporation trades in the capital markets, which are institutions that provide long-term funding and financing. As such, the source of the funds of this group comes in the form of equity and bonds. State Home Mortgage Bonds which are offered by the company is responsible in order for home loans and mortgages for commercial purposes are properly managed and funded. Currently, Home Mortgage Bonds account for 60% of the total revenues earned by Nationwide Finance Corporation.

This Home Mortgage Bonds are, as of the moment, only traded with other financial institutions such as banks, insurance firms, hedge funds, investment companies and the like. It does offer a number of different commercial mortgage bonds to individual and private investors, many of which are owners of commercial properties.

Countrywide Asset Management Corporation

Home loan processing as well as other types of loans, are handled by its subsidiary company, Nationwide Asset Management Corp. Many of the loans that are handled by Asset Management Corp. are delinquent home loans which they intend to start up their home loan services. These delinquent loans were passed on to Countrywide Finance Corp through the passing of various rulings done by the Federal Housing Administration and the Veterans Administration.

Securitized Loans

One of the products offered by this group is securitized loans. Securitized loan, in reality, are delinquent loans which have been issued under the rulings of certain government agencies such as the Federal Housing Authority and the Veterans Administration. These loans are often securitized by converting these loans into mortgage bonds. In the case of Countrywide Finance Corporation, its subsidiary, Nationwide Asset Management Corp intends to securitize the delinquent loans it intends to use to start up their home loan services by converting them into Home Mortgage Bonds. Once this happens, the delinquent loans can now be traded in the secondary sector of the capital markets.

Counseling and Down Payment Assistance With the Austin Housing Finance Corporation

Counseling and Down Payment Assistance With the Austin Housing Finance Corporation

If you’re a first time homebuyer in Austin, Texas, there are quite a few resources available to you. Buying a home for the first time is very exciting but it can also be a time of confusion and stress. Making a large investment like a home purchase requires a lot of paperwork, approval processes and financial commitments. Fortunately, there are many programs and resources available to help you navigate this uncertain time.

Many first time homebuyers make the mistake of underestimating how much it will cost to purchase their new home. They assume that the financing process will take care of everything and they won’t have to pay a penny out of pocket in order to get into their home. There are real estate agent fees, down payments and closing costs that will be associated with buying a home.

With a first time home buyer grant, you can get help with these costs as part of the services sponsored by the Austin Housing Finance Corporation, which is a division of the Austin city government. The down payment assistance program (DPA) will help with purchasing a home by granting a specific amount of money to be used as a down payment for a home.

The standard DPA is up to $10,000 in a deferred, forgivable 0% interest loan that has a length of 10 years. The loan is completely forgiven if you stay in the home for 10 years without transferring the title. If you move before the 10 years are up, the loan will be paid back from the sale of your home.

The DPA program is only accessible to people who have completed a series of three classes at the Austin Housing Finance Corporation. The three class series is a part of the nationally recognized NeighborWorks “Keeping the American Dream” homebuyer education course. In order to access the DPA program and other first time home buyer services you have to attend the following:

-Class 1: Assessing Your Readiness to Buy and Money Management

-Class 2: Understanding Credit and Financing a Home

-Class 3: Selecting and Maintaining a Home and Managing Your Finances

These three classes compose a pre-purchase series that is available to people who live in the city limits of Austin, who earn 80% or less of the area’s median family income, who are employed and who have a Texas driver’s license. After completing the three classes, you’ll be awarded a certificate which will gain you access to the DPA as well as many Travis County and State of Texas programs.

In addition to the pre-purchase classes, the Austin Housing Finance Corporations also offer post-purchase classes which are important if you find yourself in a position where you might lose your home. The course is similar to the pre-purchase classes and acts as a refresher on the basics of home ownership, particularly focusing on the financial commitments associated with owning a home. The requirements for the post-purchase classes are the same with regards to family income and location.

The details on these resources and more first time homebuyer programs are available on the Austin Housing Finance Corporation’s official website.

Personal Finance, Corporate & Public Finance

Finance basically revises and deals with various methods by the means of which businesses, companies, and individuals hoist, distribute, and utilize financial supplies over a stipulated time, along with considering the threats involved in their assignments. Hence, the expression of finance may engross any of the below mentioned stuffs:

o The execution and outlining of the assignment’s threats.

o The art of executing funds.

o The administration and execution of the resources.

o The revision of funds and other capitals.

In consideration of the expression “to finance”, it signifies to offer finances for commerce or for an individual’s huge purchases such as house, car, etc. The commotions of finance are the submission that individuals and firms utilize for executing their funds, specifically the variations amidst earnings and expense along with the threats of their assets.

Alternative Revisions:

For the earning that surpasses its expense list may provide or spend the surplus income. Simultaneously, an individual whose earnings are less than the expenses may hoist assets by purchasing or lending the equity claims, reducing its expenditures, or boosting its earning. Now, the lender can find a borrower, a monetary mediator, as such a bank or can purchase notes or shares from the share market. Further, the lender acquires interest rates, and the borrower shells out a bigger interest rate than the lender acquires, and the monetary mediator concise the variation.

Banks amass the commotions of several lenders and borrowers, and it also welcomes the deposits from various lenders, on which it shells out the interest rate. Further, the bank lends these deposits to the borrowers, and by this method bank permits the authority for both the lenders as well as the borrowers of distinctive horizons, to synchronize their financial commotions. Hence, banks are described as compensators of money streams in space.

For example, if an individual buys one share of ABC Inc, and the firm posses 100 shares in stock, then the individual becomes 1/100 possessor of that firm. Obviously, in favor of the stock, the firm acquires cash, which it utilizes to enlarge its commercialization in a procedure called as “Equity Financing”.

Utility:

Finance is utilized by almost every individual (personal finance), commerce (corporate finance), by government bodies (public finance) and by a huge range of institutions engrossing school, colleges, and all the non-profit institutions. Usually, the objectives of each of the above mentioned commotional bodies are attained by the utilization of proper financial implementations, along with systematic contemplation of their organizational backdrop.

Hence, finance is one of the most crucial phases of business administration. A fresh business venture is bound to fail, if appropriate financial concepts are not utilized. Administration of funds is the most necessary stuff for ensuring a safe financial future for both the firms as well for the individuals.