Category: General Article

Do Retailers Run Any Risks Giving Personal Guarantees

Posted on by rosalie

It is wise that retailers understand all the risks that come with giving personal guarantees on a small loan or any line of credit. Many financial providers expect that your business signs personally – which may out turn out well if the micro-business fails to repay the debt as it may impact negatively on their personal credit and finances as well.

But issuing a guarantee is also the standard for most commercial loans, and business owners shouldn’t shy away from it if it can help save their companies.

Why do lenders ask for personal guarantees?

Financial security— the certainty they’ll have their money back— is the main reason lenders insist on guarantees before they offer businesses funding. Lenders want to be sure a responsible person has invested in the firm and is running the business. And whether you want a line of credit, loan, business credit card or equipment financing, a personal guarantee is what they use to secure the funding.

What’s a personal guarantee offered for a business loan?

Guarantees, like collateral, are issued by business owners to lenders who are reluctant to give financial help unless they are sure they’ll get paid back. With personal guarantees, a lender …

Category:department of finance, finance management, financial analysts, General Article, investment news, stock market news
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6 Things to Avoid When Starting a Business

Posted on by rosalie

When you start a business it can be both the best and worst period of your life, as there are a lot of joys and despair to be found. Obviously, more often than not, you want to be the one avoiding the despair. To do that you need to avoid a lot of the common mistakes that typically come with starting your first business. So many people have made these mistakes over the years, so why shouldn’t you learn and avoid them in your own business?

As such, here are six of the most important things to avoid when starting a business – though this is by no means an exhaustive list, there are plenty of other things to avoid too!

1 – Spending Too Much Money

When starting a business, the art of spending money is all too easy. Spending money is both necessary for business growth as it is harmful to your pocket. Spend too much or too little could affect your business either way, so it’s important to find the right balance and move forward steadily.

2 – Working with Friends

Don’t ever work with friends, at least not when you’re starting your own business. If …

Category:business finance, financial news, General Article
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What’s So Bad About My Bad Credit?

Posted on by rosalie

Credit cards provide a lot of spending power. They allow people to buy goods and services that they otherwise would not be able to afford. However, the spending power of credit cards comes with great responsibility. Many people fall into the trap of accumulating more debt than they can afford, which causes them to have bad credit scores. Bad credit can come back to haunt people in the long run.

The Effects of Bad Credit

1. Less Preparation for Emergencies

Life sometimes takes on a life of its own. Important household items break, injuries happen, illnesses come about, or even loved ones pass away. Emergencies often require a large amount of money for replacements, medications, medical procedures, funerals, etc. People who have bad credit will have a small -if any- credit line and less cash to turn to in the event of an emergency.

2. Everyday Spending Can Become Tighter

Everyday costs (e.g. a morning cup of coffee from a convenience store, gasoline, going to a movie, lunch at a fast food restaurant, etc.) may seem small in the moment, but they accumulate a lot of expense when added up over a period of time. Having to pay back a …

Category:bad credit, daily finance, financial analysts, General Article
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Is it safe to take out a loan to invest and what are the other options

Posted on by rosalie

If you take into account the opinion of experts, the answer that you will get is a “No”. This is because generally speaking, you will not come across banks that will extend loan to you to invest in stocks.

There is an exception, although it does not make sense under general circumstances, the only instance when you can opt for a loan to invest in stock trading is “Invest a loan”. This is a condition in which the ROI or the Return on Investment of the loan is higher and the risk involved in the investment is usually not so high.

As such, you can refrain from investing a loan in trading stocks or other vehicles of investments and derivatives. Let us delve deeper into the topic for better insight.

There is another reason why it does not make sense in investing loan in stocks especially if your proceeds of the loan mature when the loan is due. You can take the risk provided you make sure that ROI is more than the loan cost.

Other avenues to explore

If it is not the option above there are many other avenues that you can turn to for better ROI. If …

Category:daily finance, General Article, investment news
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Mistakes you need to avoid when starting a financial market trading business

Posted on by rosalie

When starting a financial market trading business, the main mission is to make profit. In a perfect world, all traders will be successful and walk away with huge mounds of profit every day. But some of the top financial advisors at Jones Mutual can confirm that the world of trading is far away from perfect. In fact, there are a number of mistakes traders keep making, thus causing them to lose capital and potentially their entire financial market trading business. With that in mind, what are these mistakes and how can traders avoid them to actually make a success of their money-making ventures?

Entering a trade without a stop-loss

You need to set a stop-loss for every forex trade made on your trading account. A stop-loss is a counterbalancing request that will automatically exit a trade if the value moves downward by a particular sum. Having this guarantees that you escape a trade that will make you lose profit. If the market pricedidn’t move in the direction you expected it to go,you should see no valid reason to stay in the unprofitable trade. Cut your loss and proceed to the following trading opportunity.

The stop-loss is set at an area …

Category:business finance, financial news, General Article
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