finance, insurance, personal

How does Owner Financing work – Owner Financed Homes For Sale

Selling a house or other Austin, TX real estate with owner financing may be unfamiliar territory for many, but anyone who plans to sell property against the current background of tough lending conditions may want to brush up on the basics.

Understanding the concept of owner financing is easy: the seller assumes the role of a bank and finances the buyer’s purchase.

The decision to provide owner financing, however, can be much more difficult; although providing owner financing could mean the difference in being able to sell a house, it could also mean a great amount of risk for the seller if the buyer eventually defaults on the loan.

As the U.S. struggles with a sluggish real estate market, owner financing presents a way for buyers and sellers to close deals that might not be possible with conventional financing.

There are some deals that just simply cannot get done (with conventional lending) because the credit markets are too tough for a particular buyer to qualify or because the type of transaction is perceived to be too risky.
There could also be a situation in which a buyer may not have sufficient capital for a down payment. Partial owner financing, in that case, can help fill in the gaps in closing a deal.

In addition, the benefits of owner financing can appeal to sellers who are trying to unload property. Closing a deal on a house, for example, may take considerably less time with owner financing than with conventional financing. While a conventional lender will scrutinize the collateral property to determine the level of risk, a seller who is already familiar with their property can form his or her own risk assessment relatively quickly.

Owner financing may also be an attractive choice for investment, potentially offering high rates of return. A seller can negotiate an interest rate that the buyer will pay them that is more favorable than would be available for other sorts of investments.

Furthermore, seller financing can provide some tax benefits by spreading out a large gain over time (check with your accountant or CPA).

If the seller structures the loan as an installment sale, there can be certain tax advantages to the seller as well in terms of the timing of recognition on the capital gain. The seller would need to discuss the details with a tax advisor.
Seller financing can be used to pay for a property either in full or in part. The terms of a full loan look similar to those of a conventional loan; however, a seller has a great deal of freedom in setting the terms, such as the interest rate and the duration of the payment period.

For instance, a seller might wish to provide owner financing as a short-term arrangement of five years, after which the borrower is expected to refinance the loan, presumably with conventional financing.

While sellers can be more flexible than banks in considering prospective buyers, they should nevertheless think like a bank when reviewing potential buyers. …

business, finance

Google And Yahoo Financial Analysis






Google and Yahoo financial analysis:

According to an E- business report by Larry Freed in 2009 Google has retained its position in the E businesses a market leader, the report shows that in 2009 Google internet searches amounted to 63. 9% total internet searches while yahoo amounted to 21.3% of total searches. These results show that Google internet searches are triple those of the yahoo company. (Larry Freed, 2009)

The report also indicates the customer satisfaction indices for the company; in 2002 Google customer satisfaction index was 80 while in 2009 the customer satisfaction index was 86. On the other hand yahoo customer index was 76 in 2002 and 78 in 2009. This shows that yahoo the second largest E business company customer satisfaction index has remained relatively lower than the Google company value. (Larry Freed, 2009)

This paper discusses the differences and similarities of the two companies and which company would be the best investment option, a number of financial ratios are indicated to highlight the level of activity, debt, profitability and liquidity in the two companies.


1) Introduction:

2) Financial rations:

i) Liquidity:

(a) Net working capital

(b) Current ratio

ii) Activity:

(a) Average collection period

(b) Average payment period

(c) Fixed asset turnover

(d) Total asset turnover

iii) Debt:

(a) Debt ratio

(b) Debt equity ratio

iv) Profitability:

(a) Net profit margin

(b) Return on total assets

(c) Return on equity

(d) Earnings per share

(e) Price earning ratio

3) Conclusion:

4) References:

1) Introduction:

Major companies in the internet information technology providers industry include Yahoo, Google, MSN and ASK IT, (Larry Freed, 2009) Google is the market leader in the industry with over 50% of the market share. The industry’s market capitalization is $231 billion which comprises of 171.75 billion for Google and 22.1 billion for the Yahoo Company. In 2009 net income after tax was 0.433 billion for the yahoo company and 6.52 billion for the Google Company, this indicates the income differences between the two companies and therefore Google is the best investment option. (Yahoo Finance, 2009)

2) Financial rations:

i) Liquidity:

Google and yahoo liquidity ratio shows their ability to pay their short term debts, creditors prefer a higher current ratio and also higher net working capital (Tamari, 1998)

(a) Net working capital

Google working capital net working capital in 2009 was 26,419 million while yahoo’s working capital was 2,887 million, this indicates that Google’s working capital is 10 times higher working capital and therefore the company would easily obtain funds and expand its operations.

(b) Current ratio

The current ratio is also a good indicator of creditworthiness of a company, (Tamari, 1998). Google’s current ratio was 10.62 in 2009 while yahoo current ratio was 2.67, and this means that Google’s creditworthiness is relatively high meaning that it can easily obtain funds to finance its operations.

ii) Activity:

Ratios that indicate the level of activity in a company include average collection and payment period (Tamari, 1998), fixed …

business, finance, money, personal

Financing Investment Property: Options and Benefits

Financing investment property is a good means to gain revenue.When you are in real estate business, you will have to buy a property, have it renovated and sell it at a higher price or you can also have it rented or leased to get a continuous source of income.

However, some people with no sufficient means make the mistake of using their own money to purchase or repair a property.This can usually lead to losing a lot of money before earning some of them back, or worst case scenario, they might go bankrupt. You may be asking now whether there really are other options when it comes to getting some resources for an investment.

There are known options in getting more finances and it’s best to understand how this works to give you more ideas in financing investment property. Learn about the advantages and disadvantages of each for your benefit.

Personal Funds

Some people make a mistake of using personal funds thinking that it is the only choice available for them. This is simply using the your own finances without any outside support for financing. Good thing about this is that you will not have to worry about paying anyone for the debt, lending company or partners and the profit will be all yours. While this will help a person avoid having to do a lot of paperwork and following some strict requirements from financing companies, this can also lead to bankruptcy if the person is not careful.

Bank Financing

This is known as the most common means of financing investment property. This includes borrowing from a bank or securing a line of credit. Then if you will have the property leased or rented, you will be able to get a monthly revenue to help you pay off your debt or interest. Many people use this because it is the easiest and possibly most conventional source of getting some funding for an investment.

Partnership Financing

It is also a good alternative if you have one one more investors to support you in financing investment property.This means that you do not have to use all your personal funds for financing a property, and you do not have to deal with a lot of paperwork. This is normally done with commercial property, but it is also useful to keep in mind if you wish to invest in a residential property. This is great choice if you have a good relationship with your partners and maintain that partnership if you don’t want to have any complication in the future.

Personal finances is not the only option available in financing investment property. You need to research and find out which alternatives would benefit you more. If you want the bank to finance your investment, you also need to secure a line a credit and have to go through a lot of. Or you may get some business partners to help and support you with your resources but you will have to report all you …

business, finance, personal

Shelby SuperCars Undergoes First Round Financing: $5,000,000 of Series A Convertible Preferred Stock

Shelby SuperCars, Inc announced recently it has signed with Sheffield International Finance Corporation to provide Investor Relations services for its raising $5mm through the company’s confidential private placement issuing 5,000,000 shares of preferred stock at $1.00 per unit for total proceeds of $5,000,000.

SSC has developed conservative pro-forma based on capturing an exclusive segment of the market. The Company expects to use the proceeds to finance the construction of manufacturing facilities, ramp up full-scale manufacturing, fund the development of the Ultimate Aero EV (SSC’s first electric Supercar) and to continue the research and development required to keep SSC exciting in the marketplace.

With the proposed manufacturing facility and the expected showrooms opening worldwide, the Company expects its projected sales of the Ultimate Aero and the launch of the Ultimate Aero EV to increase significantly. A full breakdown of the Company’s projections is provided in the Confidential Private Placement Memorandum through investor relations firm Sheffield International Finance Corporation.

This offering represents the Company’s first acceptance of outside capital since its inception. To date, SSC has achieved its world-class status with internal funding only. The Company will take in $5,000,000 in first-round financing via the placement of its Series A Convertible Preferred Stock providing a 12% cumulative annual dividend to investors. The Company expects to entertain several exit strategies including a merger, acquisition, or IPO in the near future.

Interested parties capable of placing a minimum investment of $250,000 may contact Sheffield International Finance Corporation for a complete Investor Kit but the offering is said to be invitation based restricted to select invitees.

While auto enthusiasts and high profile financiers are reeling over the company’s recent announcement of a 100% electric supercar, Shelby SuperCars remains on track to deliver 4 clean supercars by end of year 2009. With the SSC brand securely engrained into the international automotive industry, SSC will follow its ever popular Ultimate Aero and Ultimate Aero EV with a lower priced, higher volume 4-door luxury, super-sedan, the “SSC Luxor”. The super luxury sedan is said to include reclining, heated and air conditioned rear seats, full time wireless internet and will maintain SSC’s commitment famous performance being first luxury sedan to be capable of speeds greater than 220 mph. Beyond GPS, Bluetooth, an infotainment center the luxury automobile will contain a fully capable personal computing system, accompanied by a 24 hour concierge service catering to the owner’s every need.

With all American engineering guided by one man’s vision, Jerod Shelby SuperCars, SSC is expected to keep the auto industry baffled with its ultra efficient business model. Although the minimum investment is $250K, the company expects to keep the number of investors to a minimum limiting the list of invitees to those who share a long term vision for SSC brand. The private placement is subject to final approval.

Shelby SuperCars, Inc. (SSC) is an all-American auto manufacturer based in West Richland, Washington. Founded in 1999 by Jerod Shelby, SSC has achieved design and engineering excellence in just seven years with …

business, finance

Functions of accounting service companies

Accounting service companies are those firms which provide basic accountancy related services. Some accountancy firms specialise in just one particular area of accounting whereas the others provide multiple accountancy services to their clients at affordable prices. Have a look at the functions of the accounting firms.

External audit-The accounting service companies give checks- and- balances system for practicing the finance management of the business organizations through their external audit services. These firms perform the auditing of the financial statements of the companies and gives opinion whether the data in the financial statements are accurate or not. In this way they help the investment community in making wise decisions on investment. External audit is also helpful in stopping corporate deception and mismanagement of finance. External audit also gives information about how the top executives are guiding the organization. There are many companies which provide accounting  and accountancy services in Harrow.

Record keeping-Keeping financial records of the client’s businesses are the most important functions of accounting service companies. The financial records show how well or bad a company is conducting its business. The financial data of the financial records gives a true financial picture of the company.

Business consulting services-Accounting service companies provide a wide range of business consulting services such as capital expenditures and planning of growth. This service act as  a base for making complex management decisions in the company.

Payroll services-It includes calculation of taxes and preparing payrolls, deduction of employees and other employee related services.

HR management-There aremany accounting service companies which assist in the management of human resources and personnel. IT includes compensation benefits of workers assistance in recruitment polices, performance appraisal and training and regulatory compliance.

Taxes-While conducting business a company or business organization is liable for tax filing and paying to cities, states as well as federal agencies. In order to avoid extra penalties and interests companies have to file and pay taxes accurately. So the accounting service companies help in calculating and filing taxes of the companies.

Financial planning-The dynamic nature of business firm has made financial planning an important task for companies. Accounting service companies help   the companies with business planning, assisting in to establish pragmatic and beneficial objectives and take rational steps toward accomplishing them. Financial planning can facilitate a company with many objectives like buying possessions or equipment, enabling the company to expand to new markets and fetch shareholder or investors.

Risk management and internal auditing-Accounting service companies also give internal audit and services related to risk management. The internal audits facilitate a client to sustain proper separation of duties to facilitate in stopping internal stealing and deception. Accounting service companies check the controls in place, the security of proprietary information and the computer facilities to resolve where potential weak points could be. These accounting companies also give risk related services like hazards of entering in global markets, credit related risk, policy risk and operational risk. These services are crucial to companies …

business, finance, money

Types of Business Finance – Grant Finance

Whether your business is small and new or large and established you will need adequate finance for the majority of projects, purchases and expansions you’re your business makes.

Obtaining the necessary cash to get your business off the ground can be a challenge and few new companies are able to finance themselves on cashflow alone and therefore need to consider gaining finance from other external sources. There are many of these external sources who will be willing to provide you with this start up finance, a few examples of these are stated below:

• Bank loans
• Business angels
• Venture capitalists
• Overdrafts
• Credit cards
• Friends and family

These are just a few examples of some of the places that business start-up finance is available from; however there is another source of business finance available that many people often seem to forget, this is grant finance. Business Grants can however take several months to process so you should always add extra time to your planning so that you get a decision on your grant application before the project is due to start.

A lot of start up companies and small businesses are often put off the idea of applying for a business grant to help them with their finances and because of this many of these businesses are missing out on a great opportunity to gain extra cash for there business; cash that doesn’t need to be paid back.

Few, if any new companies can finance themselves on cashflow alone and therefore need to consider raising finance from other external sources. If your business needs extra cashflow for a specific project or purpose then a business grant could be exactly what you need. This is because business grants are only awarded for specific aspects. So what exactly is a business grant? A business grant is when an organisation or authority gives a sum of money to your business to help you succeed in a particular project these business grants are mainly awarded by the Government at both a local and national level as well as by smaller bodies such as The Princes Trust or The Arts Council.

When you are applying for a business grant there are certain things that you should keep in mind such as a detailed description of the project, an explanation of the potential benefits of the project, a detailed work plan, details of your own experience and if possible a business plan. All of these will help you with your application process and help you to get closer to that business grant that you want.

If you are successful in your grant application the money that you receive is none repayable and you won’t have to pay any interest for it either; however you will need to carry out a significant amount of hard work if you want to stand a chance of obtaining a grant. These grants are also limited so the competition that you will face for them is intense.…

business, finance, insurance

Indonesia Insurance industry as an highly untapped market

In the latest Indonesia Insurance Industry Report released by Emerging Markets Direct, it says that Indonesia insurance industry is a very attractive and largely untapped market. As of 2008, the country was home to more than 210mn people while the number of insured people was 16.48mn, which implied that only less than 10% had life insurance. Seen in this light, foreign insurance companies had entered into joint ventures with local companies due to the low market penetration rate and the policies set by the Indonesia government.

Next to India and China, Indonesia is definitely one of the insurance markets in Asia with huge growth potential. The Indonesia insurance sector consists of a number of players. As of end 2009, there were 283 companies in Indonesia owning insurance business licenses. There were no much changes made to the number of life, non-life, reinsurance, social insurance program and workers’ social security, and insurance for civil servants and armed forced companies as compared with 2008. There were even no new insurance companies over the past 5 years due to the relatively high minimum equity of IDR100bn set by the government.

Over the past 5 years, total assets and total investments of the insurance industry as a whole have risen, especially for the reinsurance sector which saw the highest growth rate y-o-y of 21.79% for total investments and total assets. Net premium for non-life insurance and reinsurance has been rising since 2006, from IDR 8,147bn to IDR11,810bn in 2008.

Despite the vulnerability of the Indonesia Insurance industry to natural disaster, the overall industry ratio of gross claims to gross premiums was still manageable. It was recorded that the ratio varied from 48% to 61% in 2008. What’s more, a major part of risks covered by local insurers was ceded to offshore reinsurance company. In recent years, the retention ratio (measured by net written premium to gross written premium) was very conservative and ranged from 34% to 54%. Indonesia’s insurance industry suffered from deficit transaction, in this regard, our analyst thought that consolidation was vital for insurance companies to strengthen their capital base in order to stay competitive.

What are the market trends and outlook of the Indonesia Insurance Industry? How did the issuance of Indonesian Insurance Architecture (Roadmap) affect the industry? How many insurers licenses were revoked as a result of the minimum solvency requirement specified by the Ministry of Finance? What are the prospects of Takaful (Islamic insurance) in Indonesia? What were the requirements set by the Ministry of Finance (MoF) for foreign insurers to enter the Indonesian market?

Want to have an overview and competitive analysis(SWOT) of the major industry players?
-PT Asuransi Allianz Utama Indonesia(Allianz)
-PT Asuransi Sinar Mas (Sinar Mas)
-PT Panin Life Tbk(Panin)

Check our pages to see more details about the latest Indonesia Insurance Industry Report:

Table of Content

1. Industry Profile
1.1 Sector Overview
1.2 Sector Size and Value
1.2.1 Insurance Companies
1.2.2 Total Assets and Investments
1.3 Sector Performance
1.3.1 Gross Premiums and Claims
1.3.2 …

finance, insurance, money

Owner Financing: Five Costly Mistakes to Avoid

1. Not getting a big enough down payment

When structuring a deal, you need to be thinking of not only what will go right, but what might go wrong. You may think you are helping out the buyer when you finance 100% of the purchase price, but you are putting yourself at risk. If the buyer doesn’t have anything invested in the property, he has nothing to lose by stopping payments to you. Even if you get 10% down, it may not be enough. If the buyer stops making payments, you have to foreclose, AND the buyer trashes your place before he gets out, the amount of money you made on the down payment may be gone with legal fees and repairs before you even have time to think about it.

There is a reason that mortgage companies usually ask for 20% down and only finance 80%. Follow their lead.

2. Not checking out your buyer with proper underwriting

The time to worry about a loan and the borrower is before the loan is made.

Get to know your buyer as much as possible. Someone who has given you indications of being deceitful or unreliable is probably going to continue to be that way when working with you, even if credit scores and employment histories are impeccable. On the other hand, someone with good character with bruised credit just might be worth the risk.

Get permission from the buyer to check his credit report. Learn to read a credit report. Has the buyer been late on a lot of payments recently? Have there been any recent foreclosures or charge offs? Does he have the ability to pay? Are the ratios between his income and expenses similar to what a mortgage underwriter would expect?

3. Not using professionals to help complete your transaction

Use a lawyer to help you draft your documents. Use a title company to close your transaction. Use a real estate broker to negotiate the deal.

These professionals know all of the ins and outs of their profession. The money you spend on them will keep you safe and legal.

4. Not planning an exit strategy in case of changing circumstances

Suppose you sold a $100,000 piece of property with 5% down. Right now, you may be happy with taking a note for $800 per month for 20 years at 8% for your $95,000 note. But, what if you need some cash and need to sell your note? A note buyer would not want to buy a note with 95% Loan To Value. Or at least not without a steep discount.

A better strategy would be to create two notes, a first for $80,000 and a second for $15,000. You might even write the second with a faster amortization so that the buyer’s payment goes down in a few years when the second is paid off. An investor who would buy your note would be more willing to buy your $80,000 note than a $95,000 note.

5. Not

business, finance

Finance Jobs – Top 10 Skills Needed in Finance Jobs

In businesses I’ve observed, Finance departments often face silent derision or disrespect. Part of it is an us-versus-them mentality that comes out of the front office staff who feels their jobs are more difficult because they deal with customers (compared to Finance, who deal with numbers). And no one from the front office sends memos to the back office saying “please spend less time crunching the numbers” but it can feel like the back office is constantly memo-ing the front office with “watch this expenditure” or “spend less on client lunches”.

Unfortunately, this view is supported by management at all levels that give Finance the nasty job of accounts receivable, the inputting-heavy job of accounts payable, and the dull job of budget forecasting. Compared to the highly creative marketing department and the edge-of-the-seat, in-the-trenches feeling of the sales department, finance is like the broccoli side dish on a plate of steak and fries.

But it doesn’t have to be this way! Finance departments shouldn’t be relegated to the back office in the hopes that their sharp pencils won’t poke a customer in the eye! Finance departments can and should play a far more important role in the organization. Here are some ideas. Finance should be more about business strategy than number prophecy. When the Finance department hounds the sales managers to get in their budgets and then turns them around for a final target budget for the year, their role is reduced to mere numerical interpreter. But what if Finance sat down with sales and talked to them about how their numbers connected to expected outcomes? Finance should be more about opportunity. Many sales managers have some limited view into which customers are sending business. But the view isn’t always perfect. Or complete. Finance should get involved to show how a customer is really impacting the business’ bottom line. If Finance and Sales talked to each other, Sales might be shocked to discover that their biggest client is actually less valuable than expected because of the amount of work involved in keeping them as clients. Finance should be selling, too. When Finance gets the job of following up on accounts receivables, they can potentially do more harm than good. Finance people are highly skilled at numbers, and they might be good “people-oriented” staff, but they are rarely trained in the art of sales. However, when a Finance person, tasked with accounts receivables, gets adequate training in receivables AND customer service AND sales, their success rate at getting the receivables paid can increase, but so will their success rate at winning more business.

There are so many more opportunities, too. Businesses should be using their accounts payable list as a prospecting list. They should be temporarily swapping roles between Finance and Sales for brief “see-how-the-other-side-does-it” days to enable new appreciation and new connections. Finance should sit in on sales calls to see why Sales sometimes feels like they need to bend the rules to close the deal (and Sales should shadow …

business, finance, money

Free grant money available from the Government of Canada grants

Free grant money are funds that are available with certain government departments, foundations, trusts, and entities for businesses. Usually, free grant money is available for non-profit organizations, but the governments set aside billions to also help those who desperately seek money to set up or expand businesses or to keep their businesses running. A business not only benefits the owners, but also the employees and their respective families. The governments understand that. That is where Government of Canada grants comes in. There are various lines of business for which free grant money is available. One can go for accommodation and food services, agriculture, arts and entertainment, career assistance services, construction, education, healthcare, etc. to name a few.

Many people want to be their own masters but lack the funds for setting up business. Potential and existing entrepreneurs can use free grant money to set up or expand their business through Government of Canada grants.

Many are unaware of the fact that there is something called Government of Canada grants that can help many to set up or expand businesses. Among them many don’t apply for free grant money because they feel that they are not eligible. They also fear the bureaucratic red tapes that may hamper the process. However, the fact remains that the Government of Canada grants are available for all, regardless of social and financial status. All it requires is to apply for free grant money and then go through the very fast processing of the grant. Once the free grant money is approved, some level of reporting is sufficient to carry on with the project.

The entire world is going through a tough economic recession. Many have been rendered jobless and homeless. Many businesses have either cut down production or shut down completely, resulting in a lot of unhappy people, worried about their tomorrow. Free grant money is an ideal way for them to start up afresh in life and be counted again. Government of Canada grants is available for a variety of purposes like general business, employee assistance, product development, business planning, research and development, tourism, non-profit etc.

Whether one wants to lease a business location, or train or hire employees, or needs fresh finance to start a new business, invest in research and development, or market a product or service, or wants to raise working capital, free grant money from the Government of Canada grants can really make a difference.

Most of the banks don’t want to approve loans for small businesses because they fear that the project will not succeed and they will be burdened with bad debts. However, the government can guarantee these loans and make sure that the applicant doesn’t go back dejected.

Wanting to do business entails a lot of risks. What is most interesting about free grant money is that the government also insures businesses against the various unforeseen events that may occur at one time or another. And if someone wants to relocate to another area for setting up …