Financial Management

Financial management is managing your finances. It deals with the efficient use of cash raised from various sources so as to achieve the objectives. An effective management of the finances requires a clear evaluation of the risks involved, an effective planning of the resources and an efficient control.

Objectives
The objectives of financial management can be classified into:

1. Profit maximization
2. Wealth maximization

While profit maximization objective is to maximize the profits of the firm, the wealth maximization objective is to maximize the shareholders wealth. The objective thus is to maximize the value of the wealth which is represented by market value of the firm. Thus the management has to look into the earning per share of the stocks, the risks associated with the markets and the project undertaken, the various sources through which the funds can be raised and all such factors that affect the market prices of the shares.

The financial management consists of three steps:

1. Financial planning
2. Taking the financial decisions
3. Monitoring and control of the financial plans

The planning process involves laying down the objectives. Then searching for the various sources through which the funds can be raised. The finances can be raised from the short term, medium term and the long term sources. the short term sources are preferred for meeting the short term requirement like for the inventories, payment of the bills, salaries to the employees, rent payment and the likes. The medium and the long term sources are for raising finance for fueling the projects for the acquisition or the expansion of the business, laying down of the new plant or to arrange equipments for the business. The financial planners lay down the master budget and according to this budget other budgets are prepared so as to meet the financial requirement of different departments.

The decision making involves appraising the different projects on the basis of their profitability and the returns they will give in the future. The decision involve taking decisions related to the investments that are to be made, analyzing the various sources of the financing and their effect on the business in the long term, and also about the dividends that will be distributed to the shareholders.

Financial controls involves laying down of the benchmarks and comparing the plan with them, find whether the assets and the funds are sufficient and whether they are used properly, finding any shortfalls and taking measures to overcome these shortcomings.

Personal Loans

These are the loans that you can borrow to meet any of your personal financial requirements which can relate to wedding, travel, education. The personal loans are an easy option to raise small to large amount for a minimum term of 6 months to a maximum of 5-10 years at reasonable rate of interests.

The banks extend personal loans under two broad categories:

1. Secured loans
2. Unsecured loans.
3. Hybrid loans

The secured loans are the type which requires a property to be placed as collateral with the bank. The unsecured loans can be taken without pledging any property. The two types of loans also differ in the interest rates. Secured loans have a lower rate of interest than the unsecured loans. When both are compared then the unsecured loans are a little costly than the secured loans.

Conditions for personal loans:

1. The individual should be the citizen of the country.
2. Should be employed or earning by self employment.
3. Should have a history of employment in the case of bad credit score or CCJs.
4. Some banks also lay down the conditions of residential status in any place.
5. The banks also lay down certain years that the person should be in employment. This term differ for self employed and salaried persons.
6. The person applying for the loan should be of 21 years of age and should not be more than 58 years of age. This age limit may differ in different regions. The upper age limit is extended by 5-6 years for self employed persons.
7. The person should be earning a particular amount on yearly basis. This again may differ among different regions or among the banks as well.

The documents you require are:

1. An address proof
2. Identity proof
3. A proof of age
4. And the employment proof

There are companies that provide the online personal loaning. This mode of loan application is much more convenient as the loans processing is fast and you can apply for the loans from your own place without visiting the bank. Here you can also get the online assistance from the experts regarding the loan features, requirements and the processing of the loan.

Personal loans are the easy mode of financing the requirements. The persons with bad credit history can also apply for the loans. The interest rates are generally higher for them. They can manage on this front by applying for secured personal loan. This not only provide some flexibility on the amount of loan that can be extended but also reduce the rated due to placing of the security for the amount raised.

Tax Debt Information

Tax is the word that gives jitters. And the condition gets worse when we fail to pay the taxes by the end of tax day. The condition is faced when:

1. People fail to deposit the forms on time.
2. Pay less tax.
3. Are not in the financial position to pay their taxes, have heavy tax burden and have to pay loans which are again taxable in nature.
4. Avoid accountant to save on their fees and end up in filling the form incorrectly paying less taxes.
5. Throw away the receipts and bills which might be helpful as a proof for tax deductions.

There are certain ways to get out of this debt situation. But they are few and can be as follows:

1. If you are already in tax debt situation then try to analyze the whole situation from the scratch. Look into your tax debt and consult a professional in the field who can suggest you the possible steps.
2. Consult a professional while filling up the form. The form contains some legal terms which may not be clearly understood resulting in incorrect filling of the information which ultimately results in tax debt.
3. Keep a tax book or guides on taxation which can be referred from time to time and contain the tax information in easy to understand manner.
4. Keep all the receipts and bills which you can require as a proof while filling the tax returns.
5. Ask your tax consultant what part of the form you can fill on your own so that you can save on some money which you pay to your consultant who charges their fees on hourly basis.
6. Avoid taking loans to pay off your tax debt. This may even worsen your financial situation.
7. Always make it a point to pay your taxes before the final date for payment of taxes.
8. IRS has some solution to the tax debt problem in the form of Offer in Compromise (OIC). In OIC the IRS offers the person with tax debt to pay off the debts by either paying a certain amount or paying in installment according to a short term installment plan. For OIC, form 656 is to be filled which is given by IRS. Certain conditions are laid down for OIC which are :

• When person declares that he will not be able to fill the whole tax debt.
• For handicaps and elder people who provide the proof that paying the tax debt may make their living conditions tough.

But the best thing is to avoid tax debt by filling and filing the form correctly and on time under the consultation of an expert in this field.

Top 10 Tips for Buying a Car

If you are on a hunt for a car then you should consider certain point before you make a decision:

1. List all that you want in your car. This helps you to frame a budget. You can also find out how much you have and what amount you need from other sources.
2. Do some research work about all the dealers and whether the model that you want is available with them.
3. If you are going for the used car then collect all the related information about the accidents, any repairs required or been made to the car in the past, the insurance history, whether any claim was made with the car and many more such aspects related to the car history. You can also gain some information that the dealer may not tell you regarding such used car by using the VIN number and searching the information on the internet. Check whether the model is presently in production and the parts are easily available. If the car has been run and used a lot then avoid buying it.
4. After doing the research compare the prices offered by the dealers. Find which one suits you according to your budget.
5. Check the warranties that your dealer is giving you for the car.
6. Take a test drive to ensure you are comfortable and the car is in proper working condition.
7. Search the options available for that extra money you require to purchase your car. There are financers and there are car loans. You need to compare their rates and the type of loan given by them. The banks lend unsecured and secured loans. In secured loan you have to place collateral which can be your new car or any other property. In unsecured loan you just sign papers and submit the details asked by the company. But unsecured loans have slightly higher interest than the secured ones. Make a choice.
8. Find out the insurance companies giving an insurance cover for your car. The insurance can be third party or accident insurance. Here the company looks into the previous history of the vehicle, the miles it has covered and the experience of the driver. If your age is less than 25 years and you are new to driving then you will have to pay higher premium.
9. Find the companies giving online loans and insurance. Compare them and make a choice.
10. Have everything in written form as documents. Finalize the mode of payment, installments before taking the keys.

Personal Finance UK

Personal finance is all about managing your own money and earnings.

It's about looking into all the resources you have through which you are getting money, listing your expenses, your goals in life and then planning the investments logically and systematically.

Thus it is preparing yourself well in advance for such unforeseen happenings, increasing your net worth, and, simultaneously achieving your goals which can be investing for your living after your retirement, or, investing regularly so that you have ample money to expand your business after ten years.

The planning should be systematic and should carefully be monitored over a certain time. This is important so as to find out any shortcomings in the investment plan and what should be done to improve it, whether the investment is being done regularly or whether there are other options available which are more appropriate for placing your money, how can it be replaced and many such things.

But first assess your current earnings and other resources which you have. Then find out and make a list of all the expense that you have.

Next step is to make a list of all your goals which you have for future. They can be expanding your business after ten years and thus the money you need at that time, or, it can be that you require certain sum after five years for you child higher education, or, paying out certain amount out of your earnings so that you can complete your home loan by tenth year from today.

Next is to lay down a plan as to how you will achieve them. It may include whether you need to have an extra income from any other source. Your old mobile can earn you extra bucks, there are many outside who can pay for your old mobile. Look out whether you need to cut down on your dinner every weekend reducing it to one or two visit in a month so that you save some dollars.

This plan will go a long way only if you monitor it regularly and review it according to your resources and conditions. But the thing is sticking to it until it becomes very necessary to make any changes.

So what next? Search out the banks and financial companies and find out the investment plans best suited for you. Also consult a broker or expert in the field of finance to get tips on the investments. Find out the level of risk which you can take for investing in the market. That is decided on the age and the responsibilities that you have.

So go ahead and plan your finances.

Know How To Make Money In Corporate Finance

If the financial markets, the stocks and options, the numbers and the balance sheets interests you, and, you have all the tastes for the corporate world as well as the financial markets then the corporate finances is the right thing for you.

Corporate financials are the one working for the corporate, the firms, taking all the financial decisions as to where to place their money so as to increase their profits and keep the business running. They are the ones who keep the risk of the company low and thus increase the value of the firm. They decide how much profit should be given to shareholders as dividend and how much should be retained, take decisions regarding the capital investments, any new project which is to be financed and the likes.

So to make a successful carrier in this field you should have a liking for the numbers, a strong analytical and reasoning ability, analyze whether the plan or a project will be beneficial for the firm in the long run and an ability to read the markets trends, planning the financials so as to increase the profitability.

What you require?
A bachelor degree in finance, economics, accounts, business administration,. Although the bachelor degree in the streams is basically required but for the growth in this field you need to have a master's degree as well. A post graduation degree in finance or business administration is generally asked by the companies who keep the professionals for corporate planning. This is not enough in the long run as you require keeping up with the current happening in the field of finance so that you plan the finances for your company and suggesting them with the plans which are profitable in the long run. There are companies which provide the training to their professional to improve their skills and their carrier prospect in the field.

An individual with an experience and a professional degree in the field is preferred by the corporate as the person has work knowledge and the expertise as well and the skills can be improved further according to the needs, by the organization once the individual joins them.
The carrier option is a lucrative one with high level of earnings. But these earnings come along with the long working hours and the level of the responsibilities attached with the job. The earnings are far beyond imagination as you gain on the experience with the years of service and you work for big entities and many such corporations.

How To Get Your Finance Degree Online

Doing a full time job and want to add on to your academics, and gain a promotion? Then online courses or e-learning is the thing which can be beneficial.

E-learning is a kind of education where the students and the teachers meet online at a particular time and a sort of classroom session is conducted where the student can see or here the presentations and the lectures given by the professors and the experts. A second type is where the student is given certain assignments and study materials which they have to finish within a particular time. The student can discuss their problems with the experts and professors online and also stay connected with the fellow students.

In the field of finance it is beneficial for the students who are already working full time or part time gaining in hand experience with live situations at work. Such degrees can give them added advantage over the students who are taking up full time courses and lacking the work experience in that particular field of finance.

But before opting for such degrees some points should be looked into:

1. The student should first consider the options available for them in the field. If already working in the field of finance then what carrier path they have and the growth which the degree will offer. With the growth of world economy the finance is no more dealing with the numbers. It provides immense opportunities in the investment, banking, and financial planning field. A specialization with finance, Certified Financial Analysts and many more options are available.
2. The thing you want to do, whether be a financial analyst, or in management, in financial planning or accounting.
3. Search the various universities offering the online degree.
4. Find out the courses which are more famous with the employers. The employers may consider some courses better than the others.
5. Go through the curriculum of the degree. Compare the courses of different universities and find out the course of higher quality. Find out the fees structure of the online degree course.
6. Analyze your work hours and the time which you have for the studies and then decide which will be suited for you along with your job that you are doing.
7. Find out the various loans and grants given by the government to support the education.
8. Find out the minimum GPA which you have to maintain to continue avail the aid and financial support from the government.

This will make you choose the right degree and make you surge ahead in your carrier.

House Bridging Finance at Low Interest Rates

If you are going to buy a new house and you are still in the process of selling your old house then you can apply for the house bridging finance.

Bridge finance is a short term finance that is available at low interest rates. You can use these finances for any purpose. The bridging loans are secured loans that mean you have to place collateral to get the loan from the bank.

About bridging finance:

1. These are short term loans for a period of about a month to maximum of three years.
2. The person taking the loan should not be less than 18 years of age.
3. The processing of the application form is fast and the application is approved within a day to maximum 7 days.
4. The amount of loan is on the basis of the value of your property.
5. For collateral you can use your new house for which you are taking the loan.
6. You can us the loan amount for any purposes depending upon your needs.

It can be of two types:

• Closed bridging loans and
• Open bridging loans

The closed loans are the form of personal loan that you take for buying your new home after you have sold your old home but you have not received any installments form the person who has purchased your old house. The open ended loan is available in the situation when you cannot sell your old house but are going to buy a new one. But here you can take the loan only for the term of 6 to 9 months.

Advantages

The advantages lie in its very nature.

• They provide you with ready cash that you can use for any purpose, for extending your business, paying your lenders, for wedding and other personal financial reasons. The loan amount depends upon the collateral you place.
• As you are placing the new home that you are buying or any other property according to your estimates you can get sufficient amount. Although you placed the property as collateral but still you have the ownership with you.
• In the term of loan you have to pay the interest amount. You pay off the balance when you receive the proceeds form the sale of your old property.
• The loans are also given to the persons with bad credit score, CCJs but the here certain conditions need to be fulfilled by the applicants.

Debt Consolidation Finance: Free from Debt in Smoother Way

If you have a large amount of debt and have to pay many creditors, then the debt consolidation is the smoother way to pay off your debts. In debt consolidation you take loan from one financer and pay off all your debts. Then you pay to this financer a regular installment so as to pay off the loan that you applied so as to clear off your debt.

Thus by debt consolidation finance you just consolidate or merge all your debts. You borrow from a new lender and pay to all your other lenders. Debt consolidation finance is advantageous in certain ways:

1. It makes the management of the debts easier.
2. You are liable to only one lender now whom you can pay a regular installment to clear off your debts.
3. Different lenders charge different rate of interest for the amount they have given you. This makes the whole debt payment complicated and besides you are paying different rate of interest to different lenders which also cost you more in the long run. Thus debt consolidation finance is a way which saves you from such complications.

The loan for debt consolidation is available in two forms:

• Secured loans
• Unsecured loans

In secured loan you have to place collateral with the financer. The collateral can be any asset or property like a house or a possession. While unsecured loan does not require collateral. But the secured loans can be with lower interest rates and the financer can also give you a large amount and long terms of repayments which are not possible with unsecured loans.

But before applying for any such loans you should look into certain factors:

1. Analyze your financial situations whether you have a bad credit conditions or you have a property which you can use as collateral.
2. Calculate the amount of debt you have to pay.
3. Calculate your earnings and your expenses.
4. Make a plan, the time till you want to clear off all your debts.
5. Find out all the financers giving the debt consolidation loan. Their terms and conditions and compare them for the interest rates and their condition.
6. Look whether you can apply for a secured or unsecured loan.

You should also consult with an expert such as an advisor or a consultant in the field before applying for loan.

If you have a bad credit history then also options are available for you. But the financers have certain conditions which you need to fulfill before they lend you the money.

Benefits of Commercial Mortgages

The commercial mortgages provide the business person with the finance that can be utilized in the expansion of the business, for the construction purposes, for the purchase of the land or equipments or any other business requirements.

The commercial mortgages are the type of loans which the banks lend by taking the property of commercial purpose as a guarantee or collateral. The basic requirement for the loan is the property that is used for the commercial purpose by the business and the good credit history of the business.

These loans are of two types depending upon the interest rates: the commercial fixed interest rate loans and commercial variable interest rate loans. In the fixed interest loans there is an interest rate that remains fixed through out the loan term while in the variable interest loans the rate of interest differs according to the market trends.

A carefully selected commercial mortgage on the basis of the interest rates, the loan duration and the repayment details provide several benefits to the borrower.

1. Most beneficial aspect is the tax benefits which the interest provides.
2. The mortgaging does not transfer the ownership of the property to the bank. Hence the property can be used for the business activities and the profits entered to the financial statements.
3. With the fund raised from the loan the business expansion can be planned that will result in the growth of the business.
4. The property that is financed from such loans can be rented to the other company and continue earning the profits.
5. If there is a situation where the property is to be sold to other company then such transfer can be made easily without any reapproval process.
6. By availing the fixed rate of interest the business can plan its cash inflow and out flow. Hence the cash management for the company becomes easier if it takes the fixed interest commercial loan.
   

But before applying there are certain factors that should be looked into which can be the present value of the property, the cash that is required for investments, what will be the property cost after the renovation or construction or whatever is planned for it, the repayment features that will be most suitable for the company, a detail about the utilization of the funds that the company is taking from the bank, all the business documents and the financial statements that are required for the process loan sanction by the bank.

Agricultural Finance

Farmers require money for various agricultural activities at various stages. There are financers which provide loans to the farmers depending on their requirements. The farmers can take loans to fuel their farm requirements or they can take loans for the farm equipments as well.

The equipments are the essential requirement of the agricultural activities. But mostly the farmers find it difficult to arrange finances for purchasing the equipments for their farms. Such farmers can take loan from various financers.

If you are looking for equipment financing then you can raise fund either as leasing or loans. The financers have various conditions for the loan. They look into you credit history and whether you have been practicing farming for few years or whether you are new to the agriculture field. The financers prefer to give equipment loans to those farmers who have worked in the farms for some time that is they have a previous history of farming.

Thus the new entrants are mainly left with the option of leasing. The leasing is also a good option as you can use the equipment by paying certain amount of money to the lender and then after the term is over you return the equipment to the lender. There is an option of buying the equipment at the end of the term of lease. Thus although you are not having the option of ownership of the equipment still you can use it. This method is cheaper than other sources of finance. You also have the option to have new equipment with more improved technology after you lend up the previously leased equipment.

For the farmers still in the business the loans are available on the basis of their requirement and their credit history. They also have the option of leasing. Equipment loans are like the auto loans given by the financers. They may be of the secured or unsecured type. In secured loans you have to place collateral with the financer while in unsecured loans the collateral is not required. The two also differ in the rate of interest which is higher for the unsecured category.

So, if you are looking for any equipment loan then make a list of what you actually need. Find out the equipment and their price. After that you find the financers giving such loans. Compare them on the basis of their conditions and the interest rates.

The financers are also extending the livestock loans and loans for the crop production. But again here also a comparison is to be made among the various banks.

Know About Bad Credit Computer Finance

We all need computer to stay connected with our friends and perform various functions of storing and managing the data related to our business and home and many more. But under the conditions of bad credit the purchase of the small wonder becomes difficult. The bad credit computer finance is offered to those who have a bad credit history and require some monetary support to purchase a computer.

The bad credit computer finance is the scheme with low interest rates and comes with different forms such as no credit computer financing, guaranteed computer financing. But the rates are higher than other form of loans. Therefore, first go through your credit history and analyze your situation before applying for the loan.

Who are eligible for the loan?
All those who have bad credit history, bankrupts, CCJs, persons with default arrears and late payments are eligible. The financer gives you two options for the loan. In the first you don’t have to pay a lump sum amount, that is, the down payment but you are required to pay them a certain amount before the computer is parceled to your destination. In the second option you make entire down payment. Then you get your computer immediately and you start using it back in your office or home from that day onwards. The second option becomes cheaper in the long run. But it is you who has to decide which option suits you the best.

Information required by the lenders
The financers require some information from your side before lending the money. They generally ask for your employment history. You have to be employed for a certain term to qualify for the loan. You should also have a valid bank account. The time limit specified for these conditions vary from one financer to another.

What are bad credit and no credit financing?
The bad credit financing means that you have owned credit cards and an account and you acquired credit through your account or your credit card while in no credit financing you have never owned a credit card and have never opened an account with bank. The financers consider the bad credit borrowers as more reliable than the no credit borrowers. Through bad credit financing you can purchase the computer with two years replacement warranty on service and parts, AMDs, latest software for your computer.

There are financers lending you the online bad credit computer financing. But again to avail this facility and get your loan sanctioned within few minutes, you need to research and find out a reliable financer and compare their quotes for the loan.