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Thursday, February 3, 2011

LOAN TYPE OPTIONS



There are various loan type options each of which has their various terms. It is important that every business owner and individual interested in accessing personal or business loan gain ample understanding of the various loan type options to enable them make a wise choice.

The different loan type options include:

1. SEASONAL LOAN: Seasonal loan is a loan type option in which payment consists of principal and interest with larger payment being made during the high season and lower payments during the low season.

2. AMORTIZED LOAN: Amortized loan is a loan type option in which each payment consists of principal and interest. The same amount is payable in a weakly, monthly, quarterly or periodical installment over a certain time period according to the terms stated in the loan agreement.

3. INTEREST ONLY LOAN: Interest only loan is a loan type option in which only interest is payable in a monthly or quarterly installment with the repayment of the principal deferred until the end of the loan. In some cases the principal are paid periodically throughout the life of the loan.

4. STARTUP/GRADUATED LOAN: This is a loan type option in which the payment consists of the principal and interest. The good thing about startup/graduated loan is that it offers the opportunity to make small installment at the beginning and increasing it by certain percent as you proceed before leveling off for the remaining year.

It is similar to an Amortized loan. In this loan type option, you do not pay the same amount over and over again over the life span of the loan facility. Installments are well spread to enable you make payment without affecting your business.

The loan type option you chose will have dramatic impact on your business and financial life. Therefore, before committing to any, make sure you review the above loan type options carefully and wisely consider the one that work best for you and your business.









See you at the top!

TEN COMMANDMENTS OF HAPPINESS AND FULFILLMENT

Happiness and fulfillment is real and achievable. But this will not happen unless you understand and apply the ten commandments of happiness and fulfillment. In this article, I am glad to introduce you to the ten commandments of happiness and fulfillments. These are laws of happiness which makes every highly successful individual of the past and present unstoppable. Your happiness and fulfillment lies on the application of the commandment below:

1. You must not worry: Do not worry about the things that you cannot change nor have no absolute control over. Realize that storms come and go. Momentary pains are created and allowed to make you a better person. Instead of whining and complaining, look for the opportunity in the misfortune. Your greatest opposition is your greatest opportunity. The thought of God for your life is to give you an expected blissful end.

2. You must never be a close minded Person: A close mind is a closed life. He that closes his mind to the input of others will only be wise as his knowledge can afford. Your way is not always the best way. Remain open-minded, and do not worry if things do not go as expected. Learn to use the input from others to improve your life, business and your finances. Do not imitate, but try your best to incorporate the best in others to improve your life and your sense of self worth will empower you to produce the result that will make your life count. A man truly happy is a man truly fulfilled!

3. You must grow: Growth is not an option, but a mandatory experience in the journey for relevance and profit maximization. Never think that you have to stay where you are in life. Every new day offers an opportunity for change. Embrace the change and make a difference.

4. You must not fret over others opinion: As faces differ so also developmental background differs. Therefore, every body will never reason the way you do, and in addition human behavior are affected by prejudices and some certain degree of evil agenda. Not everyone will like you, and some people will criticize you not because you are bad, but because they do not like you for reasons best known to them. Do not allow their criticism to make you feel unworthy. Realize that you do not need the approval of anybody to be who you are and what you capable of achieving. All you need is confidence in what you carry and the mandate you have been given by God. He is always there to give you the needed support when you need him the most. One with God is majority. 

When you wait for peoples approval to make you happy, then you will wait for a very long time, and you may end up never having that dream realize. Majority of folks living on earth today do not put in any effort to bring happiness to their neighbor. All they know how to do is position themselves to belittle others. Irrespective of your status today, never allow little people to belittle you. Your happiness in life should be of major importance to you than the constant mocking of little people in their little world. For more information, see my article: how to stop little people from belittling you.

5. You must not needlessly worry over your mistakes: Everybody make mistakes, and even the best of us have made one blunder in one time or the other. Therefore, you must not allow your self to be weighed down your short comings. Whenever you err, learn the lessons and forget about the details. Never allow people to abandon the lug in their eyes to make stories out of the peck in your eyes. You are not unworthy, unfit, or incapable just because you made some mistakes. Realize that mistakes are necessary for growth. If silly things were not done, intelligent things would not have been known.

6. You must take responsibility for your life: Taking responsibilities for your actions demonstrate your readiness for the enjoyment of happiness and fulfillment. Never shift blames. Playing the blame is playing the game of foolishness. It will lead you nowhere but encourage your journey into the land of confusion, frustration and un-accomplishment.

If you want to be happy and fulfilled, do not make others responsible for your happiness and inevitably hinder your fulfillment. You are suppose to be in control of your happiness and fulfillment, and you can choose to make the day a positive one by embracing the wise counsel available in this articel.

7. You should never surrender where victory is eminent: Your happiness in life is greatly determined by not giving up where your courage would prove more profitable. Despite the mountain and hills before you, try to climb them even when it seems too steep. No matter how difficult the task seems, it is better to try than to wonder if you could have succeeded. It is better to fail at trying something than to succeed in doing nothing.

8. Never judge others harshly: Do not try to make people into what they are not. When they err, do not crucify them, but give them another opportunity to change. Judge not so that you will not be judged; for with same measure with which you judge others, they will also judge you. Do not deal with people the way you think they ought to be, but relate with them the way they are. Always seek for the good in every man; never be critical and fault finding for you will see things that will encourage your constant sadness, and happiness and fulfillment will avoid you like a plaque. 

In all you do try to accept other people for who they are. Just because someone is different from you, does not mean they are inferior. Everyone was created in God's image and are uniquely valuable. Create a pool of friendly energy and your happiness will be sure.

9. You must never doubt your ability and credibility: Confidence in your self, your dreams, your potential and your creator will give you the necessary empowerment for living a happy and fulfilled life. Allowing doubt into your life for a minute, brings a complete damage to your sense of self worth, and invariably truncate your growth. You should always have faith in yourself and refuse to give the negative voice in your head an audience. Put a way from your side anybody that is well pleased in constantly draining your energy with negative opinion about your ability to excel. Whatever you affiliation, remove your self from such environment and your happiness and fulfillment will be sure. It is more profitable to be in an environment where you are celebrated than to be where you are tolerated and intimidated.

10. Never try to fix the world: No matter how hard you try, you can never be able to fix all the worlds’ problem. But if you concentrate in making your life better, by example you can positively affect your family which can transfer the force of change to your community and together impact the world in a unique way. It is good to help others, but remember that you cannot fix everyone's problems.

Friend, to live a happy and fulfilled life, you must as a matter of great importance study and implement the ten commandments of happiness and fulfillment.

To learn more about how to develop this important skill click here.
If this article has been of great help to you, kindly post your  comment  below. You can share this with your friends, and together we can help create a pool of happiness that will  empower us to live a well fulfilled life.

I wish you all the best in life!

LOAN APPROVAL THOUGHT PROCESS


Loan approval thought process is a fundamental understanding which every business or individual who desire to access financing for his business or personal purposes must be abreast with. Every lending institution has basic thinking process for determining the loan proposal or application to honor. Therefore, before you approach any bank or lending institution for a loan, it is wise you take out time to understand their thought process and structure your loan proposal to give answers to the question they will like to find answers to.

This is fundamental because firstly, the person or bank you are going to meet for a loan may follow similar though process and you will need to provide the important information they need to assess you and your business.

Secondly, you will be demonstrating your business knowledge and professionalism by providing this information before they ever ask of it. This intelligent action will increase your chances of getting the loan you are requesting for. By providing this information, you also make their work easier, and simultaneously demonstrate to them your knowledge in financial matters. Since you can speak their language, you will get along with them better.

The following loan approval thought process of a traditional lending institution will be of great help in helping you structure an attractive loan proposal document:

1.     THE PRESENCE OF A FEASIBILITY REPORT: Every lender wants to see a feasibility study of your business. They need this to understand your business and ascertain its profitability and your expertise and management potential.

2.     DETAILED BUSINESS PLAN: This is a blue print for the execution of your business. It must embrace all aspect of your business. Lenders want to see a business plan that includes income and expenditure projections for the first three years of operation.

3.     MANAGEMENT: Management experience and expertise are fundamental thought process of a lender. Lenders need a certain feeling of assurance that a borrower has the necessary background and skill needed to effectively operate the small business.

4.     CASH INJECTION: Financial institution wants to know how much money the borrower has at risk. Some banks will require a third part of the money, while others require between 20-40% of the total cost of business funds to be covered by the borrower.

5.     PERSONAL CHARACTER: In addition to your expertise, a financing institution will also try to understand who you are as a person. In carrying out this exercise, some banks and individual lenders will conduct background checks that include detail information about you. They want to know if there is any previous case of litigation or bankruptcy.

6.     COLLATERAL: To reduce their level of risk in case of default, financial institutions often require a borrower to provide collateral to secure their loan. This can be office equipment, account receivable, buildings, landed property, or insurance policy depending on the amount of loan in question.

7.     PERSONAL FINANCIAL STATEMENT: Financial institutions like to see your personal financial statement of account. They like to see a list of personal assets and personal liabilities. In preparing your financial statement of account, do not include debt paid by your business; include other sources of personal income.

8.     CREDIT HISTORY: Lenders will like to see a good credit history. However, in some cases, there are some credits issues that you cannot afford to ignore. When it does happen, an explanation will be required and that you must honestly and intelligently give. Though, different lending institutions and individual lenders have different level of tolerance when it comes to credit issues, your honest explanation will give you a good position.

Whenever you want to approach a bank and or personal financial institution for a loan, try to include the above points into consideration. Provide a good evidence to convince them that your business need financing, and also that you have all it takes to manage the fund and stick to your repayment agreement as will be stipulated in your loan repayment plan. Once you are able to understand the loan approval thought process of a traditional lending institution, your loan application will receive a favorable consideration and approval.

Wishing you all the best!

HOW TO ACHIEVE SUCCESS IN BUSINESS


Learn some highly effective but most ignored ways to achieve success in business. The understanding and application of these practical ways will give your business more competitive advantage over competition. A business is an organized and legally structures money generating activity. Every business has potential which if maximized can create growth and release wealth for the business owner. To achieve success in business you must learn how to maximize the potential of that business. These potential may be in terms of markets, quality of products or services, technology application, resourceful employee, specialized knowledge, access to finance, favorable governmental policies and or affiliation, friendly environment, effective leadership, etc. All these add up to give your business a competitive advantage that enables you to make more money.


The following tips can be of immense assistance in maximizing the potential of your business and achieve success in business:


          DELEGATION: Though you can do all things, but to achieve success in business you must only concentrate your effort in doing all those things that are essentially necessary for your business growth. Trying to do all things by your self will exhaust your strength and creativity. Never do anything you can pay somebody else less money to do. Try to create time for refreshing and relaxation.


Some business owners have the habit of doing everything all by themselves because they have concluded in their heart that nobody can actually satisfy them. Even the smallest things that subordinates can successfully do are done by these business owners. Even if they employ somebody to do it, they end up doing the job themselves. If this describes you, please stop this madness; do not kill yourself before your time. Learn to appreciate what others do. See in people the capacity to do more than what you can do. When you try to do everything all by your self, you get your self ware off, you become ineffective, but when you focus and spend your time and resources on developing and refining your systems and or generating revenue through sales and marketing your business becomes successful.


Summarizing this point, I want to state that you should concentrate all of your energy in focusing on money making activities and delegate the rest to other capable hands trusting that they will help you see it to logical conclusion in an effective and efficient manner. You may actually think that you are saving money by trying to do all things by your self, but in reality, it is actually costing you more because you will losing more profit. You will be delaying in satisfying your customers. Customers are greatly satisfied and business grows where the business owner can actually develop many subordinates through whom he can accomplish more excellent results. Business does not succeed by engaging in too much activity, but by producing results.


          LEVERAGING: Leveraging is the process of duplicating high-value item or skill at a much lower cost. All millionaires and billionaires of history succeeded because they employ leveraging as one of their strategies for achieving success in business and or a field of endeavor or calling. The world has enough of the rich, the middle class and the poor alike, but what is responsible for their varying position in the society? They all have the same 24 hours a day, they all experience rainfall and sunny days; they live in the same planet called earth; witnessed opportunities. But why are some people rich and others so poor that even the poor call them poor? Is God wicked or partial in his dealings with men? Of course not! The great dichotomy between the rich and the poor is that the rich consistently and persistently applies principles which the poor and middle-class do not apply. One of those great principles is leveraging. The rich are rich because they learn how to manage to earn an enormous amount of money by effectively using leveraging. They leverage themselves in every aspect of their lives. They create culture of attitude that makes their time, their money, their marketing and their systems to work for them.


The more you work on your manufacturing, production, selling and marketing systems, the more leverage you will have and the more money you will make in your business.-BRIAN SHEER.


          EFFECTIVE SYSTEM: This is making the complex seam easy. When you create procedures for what to do, how to do it, when to do it, and where to do it, you are inevitably creating a consistent quality and high performance business. Consistently and persistently doing this enables you to create and duplicate yourself in different useful ways. This consistent and persistent quality brings great services and more repeated business.


When a good system is created in your business it empowers less skilled workers to perform efficiently high and complex tasks. In this case, you build a culture of business operation that is powered by the process of machinery and procedures thereby freeing your time to concentrate on only the highly operations that machines cannot do. And your business will begin to flourish, succeed and create a regular stream of wealth to your bank account.


          USEFUL RESOURCES: Every business has a cluster of useful resources in terms of brain power resident in all the individuals involved in the business. These brain power forms a data base of useful information of some sort of expertise in specific areas of the business operations. Every business owner should tap from and draw from this reservoir of knowledge to drive his or her business to achieve success. The imagination and experience of all the people involve in your business is crucial in achieving business success.


Never put your employee in a closed box system determined by their job specification. Create the opportunity and freedom for creativity and innovativeness to be celebrated so that your business can profit wonderfully from their differing expertise. Every business grows by the application of profitable ideas and these ideas come from people.


Your employees are your greatest assets. Therefore, train your workers just as you would train yourself. You have to commit to the development of the total workforce. In so doing you are building your business to a position of being indispensable.


          CONCLUSION: Achieving success in business involves the utilization of your business competitive advantage. Delegation, leveraging, effective system and your employee brain power will take your business to a high level of profit maximization and significance in your various areas of concentration.


If this article has been of help to you in some ways, please kindly post your comments and contributions. Do you know some other ways of achieving success in business? Please, feel free to share it with us.


You can keep a date with me on facebook: http://www.facebook.com/precious.ogholaja and twitter: http://twitter.com/#!/BIZMOTIVE

  
Wishing you the best in your business endeavor!

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COMPONENTS OF A STRONG LOAN PROPOSAL



Components of a strong loan proposal is what every business man should be abreast with in order to be able to prepare a good argument in a situation of seeking financing for his small business. When approaching a lender for money, it is important that you develop a strong loan proposal that backs up the some of money you are requesting with facts and figures. Without these facts and figures you may be turned down even if your business idea is profitable. Many business owners are turned down by lenders not because their business ideas are not marketable, but because they fail to present facts and figures their lenders need to adequately evaluate their business and ascertain if they have the financial capacity to repay their loan if granted. Merely asking for a loan is a guarantee that you will be technically turned down. Therefore, it is imperative that you prepare a strong loan proposal whenever you are approaching any lending individual or institution.




To enable you put this together in an effective and efficient manner, I am going to show you the components of a strong loan proposal. When carefully applied will enable you to easily access financing for your small business start up or expansion. The components of a strong loan proposal include:


1.     BUSINESS OVERVIEW: Give detail description of your business. This is include the line of business, its products, its market, your market share, your marketing strategies, your competition, your strategies to overcome competition, your distribution channels, your challenges, your expected return on investment, your break even analysis, your profitability quotient and the environmental impact and control of your business.

Lenders want to know all these to enable them understand your business and it’s earning capacity. Without this understanding they will find it difficult to loan you the money you are requesting for. No lender wants to throw his or her money into an unprofitable business, so you must be able to convince them beyond every reasonable doubt that your business is profitable.

2.     FINANCING OVERVIEW: This is a detailed description of your financing need. Every lending institution and lender wants to know exactly how much your business need. Do not only state how much your business need, but demonstrate graphically with figures how this money will be appropriated. Determine and state your business start up and operation costs.  It is also important at this point to tell your lender or financier other sources you are using to obtain financing, if there is any.

3.     LOAN TYPE: You should be able to state the loan type that you need and stick to its terms. Before choosing a loan type it is important that you review and understand the advantages and disadvantages of the various loan options. This will enable you to make the right choice by determining which loan works best for financing your small business.

From start-up business loans to seasonal loans, the options of loan facility you propose have great impact on how you will repay it. Their terms are different. No financing institution should be allowed to impose on you financing options that will frustrate your business. For your business to grow it most operates under a flexible and favorable financing terms. Make sure you seek the counsel of a knowledgeable accounting firm or a reliable deal maker in your pursuit of gaining finance for your small business.

4.     OUTSOURCE LOAN SERVICING: Use a loan serving company to mange the repayment process where you lack the capacity for effectiveness and efficiency in this regard.  The repayment process includes payment processing and record keeping. This does not display your inability to manage the business funds, but it goes a long way to reassure your lender or financier that they won’t have to deal with awkward conversations that might inhibit your relationship.

5.     EFFECTIVE AND EFFICIENT PAYMENT LAYOUT: Carefully state how you intend to repay your loan. Based on the loan option you selected. An inclusion of a well reviewed sample payment schedule will be of great value in showing potential financing institution or individual how you intend to pay the loan. To prevent default I will advice that you use a loan repayment plan that involves installment payment structured around a flexible duration. This will give the business enough space to grow.

If the amount you are paying out of your business is too much, your business will be financially starving and you will not be able to embrace other profitable business opportunities that will enhance your financial standing. Do not use more than 40% of your business profit to service your loan repayment. Remember, your business needs liquidity to be able to judiciously pay your loan.

6.     LEGALLY-BINDING LOAN AGREEMENT: Ensure that you prepare a legally binding loan agreement. This will protect you in case of future argument. It will be your evidence on any issue bordering on confusion and controversy in the process of making payment according to the provisions of your loan repayment schedule. Let your potential financing institution, and or lender review and sign an actual loan agreement legally prepared by an attorney specialized in handling financial matters. Seeing an agreement in writing will show your commitment and make potential lenders, and or financier feel comfortable about giving you the loan you need. It will also act as a check on their actions in the process of making your payment.

7.     COLLATERAL: Where the money requested is big, it is wise to include a list of what you are willing to use as collateral to secure the loan. By this single act you are demonstrating to your lender that their investment in your business is protected. This should be clearly demonstrated in a tabular sample worksheet.


To finance your business you need money, to get this money you will need to contact those who have it. To make those who have the money to give it to you demands your ability to organize yourself in a way that tells them you are serious about getting the money. The above components of a strong loan proposal are your answer to accessing money to finance your business with ease.


To your business success!