A Simple Way to Get Working Capital Fast: Inventory Loans

If you’re a small business owner in the retail sector and you’re struggling to obtain working capital financing, an inventory loan may be the perfect solution. Wondering what these loans are or how they work? Here’s a look at this unique financial product, an explanation of how it works and who this type of funding appeals to.

What is an Inventory Loan?

An inventory loan is a special loan, designed specifically for business owners in retail or product-oriented sectors. Essentially, it provides you with the funds you need to buy more inventory so you can keep your doors open and your business running successfully. Because it’s focused on business owners who stock inventory, this type of loan relies on a different approval process than most traditional loans.

What’s the Approval Process for an Inventory Loan?

When you apply for an inventory loan, the lender doesn’t ask for a business plan and, in some cases, they don’t even take your credit history into account. Rather, the lender wants to see the flow of inventory through your business. Lenders look for a strong sales performance and they want to see your numbers. In most cases, if you can demonstrate accurate inventory management, the lender is more likely to approve an inventory loan.

Depending on the lender, they may also request information on how your inventory is organized and stored. If your inventory isn’t well managed and your staff routinely cannot find customers’ requests, that can diminish your chances of obtaining an inventory loan. Similarly, if your inventory is stored in a place where it’s subject to the elements or even in a warehouse without humidity controls, the lender may also deny the loan.

How are Inventory Loans Secured?

Lenders offering inventory loans look very closely at how your company handles its inventory because the inventory secures the loan. Much like how a mortgage or a car loan is secured by a home or a car, an inventory loan is secured by your inventory. Both current and future inventory is used as collateral on the loan and, in the case of default, the lender has the right to claim the inventory.

Who Can Benefit from Inventory Loans?

Anyone who carries inventory and needs a financial boost can benefit from an inventory loan. In particular, companies who need extra capital to invest in a new product can benefit. Similarly, companies with seasonal cash flows or companies who anticipate a large surge of demand after a slow month of sales can also benefit.

For example, if you sell a summer product, your revenue is likely to be low throughout the winter. As a result, when you need to restock your shelves in the spring to prepare for the summer rush, you may not have enough operating capital available – an inventory loan helps fill this gap.

What are the Benefits of an Inventory Loan?

An inventory loan helps facilitate keeping large amounts of inventory on-hand in warehouses or storage facilities, ensuring you can easily fill customer’s orders and meet demand. If you don’t have the inventory you need on-hand, clients may be willing to wait as you backorder it or they might go somewhere else. Over time, this practice can erode your client base as well as your company’s reputation.

If you own a brick-and-mortar shop, inventory loans help you keep your displays full. Customers aren’t likely to be enticed by a store that is half empty and, while walking by, they may even guess that it’s closed. An inventory loan helps eliminate this risk.

Do You Have to Buy Inventory with Inventory Loans?

Many business owners use inventory loans to buy new inventory, but that is not their sole purpose. These loans are secured by inventory and your sales numbers are taken into account when determining approval, but you don’t have to use inventory loans to buy more inventory. If you already have lots of inventory on-hand but you need working capital to pay your employees, keep the lights on, make your mortgage payment or for any other business expenses, you can turn to an inventory loan.

How Do Inventory Loans Work?

When you apply for an inventory loan, you provide the lender details about your inventory on-hand as well as your sales records and potentially a few details of your inventory management processes. If the lender approves your application, it extends an installment loan or a line of credit to you.

An installment loan is a lump sum loan that you pay back in equal installments for the loan’s term. In contrast, a line of credit allows you to access the funds when and if you need them, potentially saving you money on interest and fees as you only pay those costs on the money you use. If you have a revolving line of credit based on your inventory, you can spend it, pay it back and spend it again in pace with your cash flow.

If you need working capital to buy new inventory, pay your employees or cover any other expenses, it may be time to consider an inventory loan. Depending on the lender, you can secure these loans with the inventory you have on-hand or the inventory you plan to buy. Either way, inventory loans provide the capital you need to stay afloat, expand and move forward.

How Much Can One Afford to Spend On a Car?

>Owning a car seems like a dream. No more commuting with public transport or depending on your friends to take you places; your own car means your own rules. But unfortunately, it also means your own money. Bill Tsouvalas explains how much you can afford to spend on that new car.

Calculating the Costs

While a car gives you enough freedom to transport yourself here and there, you need to keep the costs in mind. Maintenance, fuel consumption, and other similar costs can be even more important that the price of the car. Because let’s face the truth, how many people you’ve known have bought a new hot ride, but can’t afford to take it out for a drive because of the costs? It would just end up taking dust in the garage and you don’t want that.

Pick a car that suits your budget and your lifestyle instead. Become acquainted with the value of your vehicle and read some reviews that bring some light over the ongoing expenses. Keep in mind that as long as you own that car, those costs will not go away. By using a budget planner, you can calculate how much you can afford to spend on your vehicle and see where all the money will go.

Opting for Car Loans

If you want to get a car really fast, a car loan seems like a deal from the heavens. By signing that legal agreement, you state that you will make repayments until the loan is fully paid.

But first, you need to think: can you afford that loan? If you do not have a secure job, and you’ll not be able to pay for the loan, you’d end up with legal problems that could make you pay more than you were supposed to. Talk about the options with someone else who has already supported these costs.

The 20% Rule on Buying a Car

Overall, there is a general simple rule which tells you how much you can afford to spend based on your salary. By taking 20% of your annual income (before social security costs, taxes and so on), you can come to an average number as to how much you can afford. If you are in a relationship, then you can combine it and then divide it by two.

Long story short, if you have an average salary of 30,000 AUD, you shouldn’t spend more than 6,000 AUD on your purchase. That is, if you don’t want to end up broke for the rest of your life. Sounds simple, doesn’t it?

Buying a car can either be a blessing or a living hell. Knowing how to calculate your income and expenses might save you a lot of trouble in the future. Even by following something as simple as the 20% rule, you can save yourself from years of working your butt off to pay for a car you couldn’t afford.

The Thai Townhouse: An Attractive Compromise

When it comes to choosing a home for the future, one oft-overlooked example of a viable option is the little townhouse. Between the countless offers for beautiful three-bedroom bungalows and luxurious condominiums within an hour’s commute of the city center online on sites like DDProperty and in newspapers, there lurk the posts for the little townhouse – also known as the terrace house.

Originally a European idea, terraced housing basically had one real requirement – it had to be compact. Really, really compact. In a time when condominiums simply weren’t architecturally or economically viable for anyone, let alone the working class, people began to build townhouses instead.

And the concept worked really well. It became common throughout Europe and its colonies – and today, most developed and developing nations in the world use the townhouse model. But it’s not just a model for reducing the effort and cost associated with a house and lot, or bypassing the costs associated with funding and building a condominium – townhouses can be luxurious and comfortable places to live in, especially for young couples and retirees.

As Thailand’s housing market continues to do well, townhouses in the outskirts of metropolis and special economic zones such as the ones reported on One Asia news will continue to drop in price. And as per World Bank, Thailand has many other projects slated for the next few years.

If you’re looking for a home to invest in, or a house to buy, then chances are that you’ll find exactly what you need in a cozy little townhouse – and here’s a couple basic ideas why.

They’re Easier To Maintain

The basic gist of a townhouse is that’s it’s a small house without much of a lawn and shared walls. That means that within your two walls (since the other two are shared), you have the freedom to maintain your home as you please – much like in a single-dwelling home, also known as a house and lot.

If you’re living in a condo, on the other hand, your monthly fees would include maintenance for your unit and others – and you’d have to pay them month after month. This means that your association fees within a townhouse community are generally lower than those within condos, and you can deal with the upkeep of your house’s exterior as you please.

You Change A Lot – But Not Too Much

Owning a townhouse basically means controlling much of it – but not everything. You can replace your furniture, tear out a dividing wall in the kitchen, and replace the front door – but you can’t do anything that would compromise the integrity of the entire row’s structure.

Furthermore, how much you can really do depends entirely on your Homeowners Association. Some HOAs are fine with a little modification – others are strict in making sure you maintain the uniformity of the homes, even as the principle owner.

Since townhouses are stringed together, each one plays a role in keeping the other structurally sound – that includes a continuous fence, shared walls, and often a shared roof. Modifications to any of these are typically not allowed.

Access to Shared Amenities

Like a condominium, living in a townhouse means being a member of that townhouse’s Homeowners Association, and the Homeowners Association typically uses association fees to install and maintain some basic amenities found in high-quality communities, such as a well-maintained shared pool, a tennis court and basketball court, and other such amenities.

The HOA may also cover maintenance for parts of a townhouse, such as the paint on the walls and your fencing. However, being the owner of a townhouse doesn’t mean you don’t have to worry about insurance payments. In Thailand especially, getting some flood protection isn’t a terrible idea – and depending on the tectonics of your area, earthquake protection can be a necessity as well.

You’ll Have Your Neighbors Close

This can be a pro, or it can be a con – or it can be both at once, varying now and again. On one hand, having your neighbors closer can help you foster a more pleasant relationship, and a greater sense of community. Neighbors don’t have to be a nuisance – they can be good friends, great company, and an essential and integral part in your social life.

On the other hand, obnoxious neighbors can be the antithesis of a peaceful life. It’s best to always check your prospective next home – and its neighbors – before you make any purchasing decisions. Always get someone to inspect the state of the home, and speak with your possibly fellow homeowners to get a feel for the community.

A townhouse doesn’t have to be a permanent thing – you can own one until the time comes to upgrade to a condo or house, or like a condo, you can rent it out once you feel like upgrading to a single-dwelling home.

Owners Live By the CC&R

Once again, this is a boon and a bane – although it is mostly a boon. Townhouses, like condominiums, have what is called a CC&R for the most part. The covenants, conditions and restrictions are a community-specific document that all owners have to co-sign and agree upon, outlining the strict rules of the community for homeowner conduct.

While the restrictions may be annoying, they also ensure that you get the most out of your townhouse – that is, a happy co-existence with other owners on a cost-effective budget.

Forex Trading Automation: How Software Programs Aid in Money Market Trading

As an ambitious and optimistic Forex trader, you might want to partner with a FX trading dealer who is dispassionate, smart, sound in judgement and keeps tabs on trades and executes trades even in the absence of you. How about getting all these qualities in a single software program that is no less than an astute Forex dealer?

Forex trading automation software programs are here that can put your longing for a really knowledgeable FX trading partner to an end, except for a human is replaced with an automated program in this vase.

Can you really use an automated software program for Forex trading?

Experienced and veteran traders often take resort to Forex automation programs to gain maximum profit from trading. The type of software comes with a diverse set of features, all of which are targeted at increasing market intelligence of a novice or experienced trader. If you go through the customer reviews published online, you can easily find out the advantages and downsides of each of these programs.

Some of the programs come with free trials while others come with free demo for you to watch. However, these programs have their own limitations and you should always keep your expectations to a realistic level. More importantly, you still need to know the basics of FX trading in order to reap the benefits of using FX trading software.

How exactly does an FX automation software program work?

An automated Forex trading software program is a specially designed computer program that continuously analyse currency prices and related market activities. It is programmed to identify FX market signals such as price trends, spread discrepancies and economic releases that impact the FX market big time.

Typically, a software program would send a sell or buy alert if it finds market factors matching the preset parameters by the user and may complete the transaction even in the absence of the human trader. Automated FX trading is also referred as robot trading, algorithmic trading and black box trading.

What are the salient advantages of automated FX trading?

You will hear many FX trading experts saying that emotions spoil the profits for many of the traders. Emotionless trading is the key to FX market success they say. However, it is quite difficult to leave out your emotions while trading. However, if you bring an automated software program into play, it would take a cold and robotic approach to trading, which is important for gaining profits from FX trading. Also, humanly errors are best avoided by using a software program of this type.

An automated FX trading program would allow you to trade from multiple accounts at the same time. You can also invest more time in market research and studying while the programs just keep doing its job at the background. Since the programs need users just to configure and set parameters, these are highly effective for hands-free trading, something that both novices and seasoned traders like.  You should read more on vps for forex autotrading here if you are going to attempt creating an automated or bot based trading.

If you want to see how an automated trading program typically works, visit the CMC Markets trading platforms to see it for yourself.  In order to be able to open positions without keeping your trading account constantly open on your computer the software is uploaded to a virtual private server. This allows uninterrupted uptime and lightning-fast execution of orders.

The Different Types of Home Loans

Are you in the market for a new home or maybe an upgrade from your current home? Before you go jumping with both feet into the unknown you should probably do a little research about all the different types of home loans that are out there now a days for new buyers. Some of the jargon used in the descriptions of these loans can be confusing; while some may sound good they might not be right for you and vice versa.

Today we want to take a closer look into fixed rate home loans. This type of home loan vary greatly from an adjustable rate home loan. The fixed rate loans mean you pay the same amount each month, each year, for the entirety of your loan. The adjustable rate means your mortgage rate can fluctuate from year to year depending on the bank and figures. Traditionally the adjustable rate loans seem to be the better choice…in the beginning, when they begin to adjust and increase you could end up paying double what your payment started at.

This adjustment has been a problem for many homeowners; once the rates change it can double your payment if not triple it depending on how high the jump is. A fixed rate home loan is one of the safest choices when it comes to home loans, because you will always know what your payment will be and if it does change with a fixed rate loan the amount won’t be that drastic.

A fixed rate home loan can be chosen with more flexibility. For example, NPBS feature-rich fixed rate home loans come in 1, 2, 3, 4, 5, 7, or even 10 year increments. These time frames for repayment can vary depending on the institution that is taking care of your loan, some places will allow you to opt for a 15 or 30 year fixed rate loan as well. Don’t let the fixed rate loan title fool you, when you have some extra cash you can pay more onto the principle of your loan in order to repay it quicker.

When you take out a reverse mortgage it pays you, rather than you having to make monthly payments to your lender. How a reverse mortgage works is by allowing you to request reverse loan payments to be made to you on a regular basis or ask for one large payment all at once. By taking out this particular type of home loan, you can avoid having monthly loan payments. You won’t owe the balance back on the loan until you move out of your house. In the event that you pass way, your family can choose to allow the house to be sold, in which case the lender would keep proceeds equal to the loan balance and any leftovers would go to your family. Alternatively, your family can pay off the loan balance themselves and keep your home.

It cannot be stressed enough to be smart when you are purchasing a new home, do your research when it comes to types of loans as well as all the different institutions that can provide loans, you might have better luck at a bank a little further than your current location. Bigger cities or towns tend to have better rates when it comes to home loans, so browse around before you settle on a final home loan.

Eco business: how to keep yours clean

It seems like the facts about climate change have been around forever, and for younger readers that might well feel like the case. Yet no matter how vital the information contained in An Inconvenient Truth or The Shock Doctrine seem, few companies have been willing to jump on the climate change bandwagon and help the environment in a meaningful way.

Major brands like Tesco, B&Q and DuPont have made great gains with carbon reduction in their business, yet their progress is relatively minor when compared with the amount that realistically needs to change if the climate is to remain stable.

Every business has to be able to markedly reduce its carbon footprint if the world is to remain safe for habitation. But, as Naomi Klein’s book The Shock Doctrine has made abundantly clear, free market capitalism will continue to diminish the climate and environment.

But you’re not a mega-corporation polluting the world with a chimney stack and wads of money. You’re a straight-up small business with an honest work ethic.

And your effort doesn’t have to be like spitting in the wind. With specific products you can make your company eco-friendly and do your bit for the environment – without ruining your profits.

The right adhesive

If you’re in the construction business, you’ll be more than aware of how much waste goes into the manufacture of any product. Sawdust on the floor, spent glues congealing on work surfaces and pieces of pointless plastic stacking up in the waste basket – it’s all symptomatic of a wasteful environment.

You don’t however, have to waste everything in a workshop. For a start, try out Tensor’s composite adhesive, which is designed to minimize wastage thanks to its high-pressure canister. Investing in one of these canisters will minimize waste, maximize the longevity of your product and, in turn, contribute towards a cleaner environment.

Keep employees in the know

If you’re reading this, chances are you’re a free-wheeling climate change radical. But that doesn’t mean your employees are on the same wavelength. Some might even be cynical about the existence of climate change, especially if you’re located in the US.

This is your company, however, and you make the rules. No matter what the personal beliefs of your employer, you have to make it clear that you won’t stand for poor recycling protocol.

You can do this by sending out regular emails outlining your recycling and energy policy, and having semi-regular training sessions with them will ensure that, despite their conflicting opinions with you, they won’t have any excuse for avoiding eco-protocol.

The Argument for Requiring Renter’s Insurance

The trend towards investing in real estate properties isn’t slowing down, as an increasing amount of individuals are throwing their hat into the landlord-ing ring and renting out personal property for a supplemental income.

Americans are slowly shifting their mindset towards permanent renting instead of the old American Dream of buying a home. In fact, according to the New York Times, our nation’s homeownership rates have fallen for nine years straight. Combine that with the fact that rental rates are rising and you’ve got yourself a promising investment. Maybe you’ve decided to join the ever-expanding pool of landlords, or perhaps you’re already renting out your space and have been through the ins and outs of the process. In either case, there’s a new trend to remain aware of—renter’s insurance. As the rental market becomes more competitive, landlords have their pick of the litter when it comes to tenants, but as the old saying goes “It’s better to be safe than sorry”. Cue the argument for renter’s insurance. A vast majority of professional property management companies are now deciding to require renter’s insurance in their lease terms, with a whopping 84 percent of those surveyed in 2015 requiring renter’s insurance before leasing out a property. Small-time, independent landlords are now picking up on the trend, and there’s never been more reason to make this a lease provision.

Deductible Damage

Deductibles are the unwelcome part of insurance, but unfortunately there’s no way around them. Should damages occur in your rental property, say as a result of a tenant accident or some type of storm, you’ll have to shell money out of your own pocket to cover deductible costs. If your tenant has renter’s insurance, their coverage would likely cover the costs of your deductible.

The Proverbial Lawsuit

Hate to say it, but the law usually sides with the tenant in legal disputes, even if it seems that they’re in direct breach of your rules. It’s essential for property owners and their families to take the utmost in precautions when renting out a home. Should something happen at the home, a safeguard of renter’s insurance will help handle damage costs. Most times, when there are damages at a home, whether they be caused by natural elements or tenant mistakes, landlords will often find themselves being forced to cover the costs. If it moves to court, legal fees alone will cost a pretty penny. If your tenants were to have renter’s insurance, the damages might be covered, leaving you and your personal assets out of the equation.

Weed Out Bad Tenants

It can’t be said enough: you need to make sure you screen your tenants properly. There are thousands of tenant horror stories out there, resulting in huge damages to personal property and large cuts to property owners’ wallets. Hopefully one of your first steps as a landlord was to use a good screening service; if you haven’t yet, get on board the train with tenant screening from MySmartMove.com and make sure you tell tenants upfront that they have to purchase renter’s insurance to even be considered during the application process.

Make Sure They Renew

You pick a tenant, they show you proof of their renter’s insurance, and so begins a cohesive relationship between landlord and tenant for the foreseeable future. If you’re lucky enough to land yourself a long-term renter (every landlord’s dream), ensure you remain on top of the insurance issues. When it comes time for their lease renewal, ask your tenant to again show you proof of renewing their insurance.

Renter’s insurance from Progressive is a positive for both renters and landlords, and both parties stand to gain. If you’re renting out personal property, consider a lease provision that requires purchase and renewal of renter’s insurance for the entirety of a tenant’s stay in your property. This will keep your family and personal assets safer from legal action, and your tenants will have more to fall back on should an accident or natural disaster occur. It’s a definite win for everyone.