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Picking a Business Loan Broker? How to Find the Best

Are you questioning yourself regarding how to pick a business loan broker? Well, bear in mind that brokers are aware of the market very well and they know how to save clients from being exploited. There are few things which you need to keep in mind for making the best decision, some of the questions regarding picking a business loan broker are mentioned below.

Questioning about lenders from a business loan broker

You need to ask about the number of lenders the loan has to be given to from a business loan broker. There are chances that the business loan broker already has a perfect fit for your loan in their mind. But you can not completely settle for this choice as well and weigh your options wisely. There is a probability that a lender the broker is referring to offers the lowest possible interest rates. So, you need to be wary of such possibilities. You need to realize that a broker’s fees differ and it is not the same for all lenders.

Question the drawbacks from a business loan broker

There are certainly good aspects of a loan and certain drawbacks. The point is that you need to know both. You need to understand your situation and condition you are in. For instance, if you will be requiring some funding right away then the best approach is to effort for a short term loan. But you need to bear in mind that in that case, you will have to pay a higher interest rate and that too for a long time. You need to question a business loan broker regarding one’s effort in channeling the clients through the paperwork process. A loan involves a great deal of paperwork and it is extremely vital to catch the details from the narrow lens. If the broker is only highlighting the positive aspects of the loan then you need to question. You should identify whether the broker is offering a generic solution which even google can give or there is more value to it. You need to have a sharp eye for such judgments during the meeting with brokers. Comprehend the answers of the brokers and ensure that one is providing you honest, intelligible answers.

Ask for the thinking time

You also need to take the decision wisely before deciding in rush. Time is exceedingly vital and you can not undermine its importance. You already know that the procedure of loan is in itself a very big commitment. If a borrower feels pressure while signing the contract then this won’t be the best option to avail at all. There can be a possibility that the broker you are going for is fully reliable. But even in that case, you need to take some time out for thinking over the deal and discuss it with other entrepreneur friends. If a business loan broker is not willing to give you enough time then that is a red signal and the best approach here would be to consult any other.

November 24, 2019
How To Write an Employment Offer Letter?

If you are wondering how to write an employment letter then this article has got you covered. There are few things in mind which you need to stick to. For instance, you need to pay importance to job details which include the benefits, salary, work schedule and all other vital steps. The guide outlined below will help you out in getting the idea clear.

Telling the news over phone call

If you have finalized the candidate then before documenting and delivering the offer letter you need to extend the offer over the person. The news of getting a job is not only exciting for the applicant but also the company thus you need to create a personal connection. Once you establish the connection you need then have to outline the official letter which will include more details then they have previously received.

Pay attention to the subject line

You need to make use of a catchy subject line which is under fifty characters. You need to be clear about the position you will be offering. You have to include phrases like the company’s job offer. A warmer and joyful tone will help in this regard, just be to the point and clear.

Attach helpful documents like letters of credit

Next, you need to attach vital documents. You must keep the aim of the offer letter in mind for carving out the best offer. If you will be sending an email offer letter then a good plus point is the attachment of documents like letters of credit. If you are wondering what sort of documents can be attached then you can attach the company’s policies, compensation plans, letters of credit and benefits. But you want to limit the number of documents here as you don’t want to overwhelm the candidate. Just attach the relevant information which will help them to identify their role.

Offer letter in attachment

Next, there is a possibility that you choose the pdf type of offer letter. In that case, it is best to write an email message which is brief so the candidate could feel connected. You want to establish the celebratory and enthusiastic ground for the candidate who has yet to read the offer letter. There are different templates available online which will give you an exact idea of what this paragraph is referring to. Just have a welcoming tone and you are good to go.

Attaching Offer letter in the email body

The next possibility is that you have the offer letter in the body of the email, the other documents like letters of credit still has to be attached. In that case, the candidate will be able to see the full offer letter in the email without the need of downloading it. Here comes the most important point which can pop up into your head and that is the need for job details, the details about benefits and compensation. You need to be very precise in mentioning the contact details. Don’t forget to give them a deadline which is the time to accept or decline the job offer.

November 24, 2019
5 Myths About Investment

Investment is a pathway to fulfill your financial goals, accrue retirement fund, and live a life full of satisfaction. There are several investment assets like stocks, equities, real estate, gold, mutual funds, commodities, etc. Investment as a medium to generate money is proliferating ten folds among mass investors.

While there are numerous advantages of investing, including tax-saving and risk-free investments, there also exist some myths which become a hindrance for potential investors. Here are some misconceptions about investing money:

Investment Needs Huge Amount of Money

Having a substantial amount of money always provides exposure to more investment opportunities, but investing a moderate sum can also result in high returns over time. For example, it’s easy to look at र 5000 investment in saving and think that buying stocks is not worth the effort. After all, an 8% return on र 5000 is only र 400, which won’t be enough for retirement. It is rightfully said that investors don’t become wealthy overnight by financing र 5000 in a diversified portfolio of stocks. Though the potential of the share market lies in compounding returns. So, if you invest र 5000 per year in the stock market and make 8% annual return, your portfolio would be worth more than र 500,000 within 30 years. If you want to build a big corpus in the future but do not have adequate funds to invest now, you can even start investing as small as INR 1000 every month through SIP (systematic investment plan) route.

Stock Value Increases with Time

The purpose of investing in the share market is to buy stocks of a business at a reasonable price, such that in the future it proves to be lucrative for you. If the company has a decent business, it won’t matter if it is large, small, and/or has tremendous goodwill. Therefore, buying the stocks of companies only because their market value and price has dropped will get you nowhere, you should do thorough research before making a purchase decision. For example, X is a big company whose share price was at its all-time high at INR 1500 six months ago but has since dropped to INR 550. B is a smaller company whose share price has risen from र 200 to र 600. Mostly, every naive investor will buy the shares of A company thinking that the share price of A will rise eventually as it is a big company. However, investing in company B would have actually benefited the investor.

Stock Market is another Gambling

A lot of people think that investing in the stock market is another way of gambling. It is far more dependent on how lucky you are. This is a very wrong and insane impression. Investing in the stock market is in itself a great skill. When you buy shares of a company, you have a right to the assets, liabilities, and a small section of the profits of the company. Therefore, the difference between buying stocks of companies and gambling is that you are speculating on the future of the company and a past record that you can track. The key to investing in the stock market is doing research and adopting a safe technique such as value investing. You can buy stocks of a company at a lower value and keep them till you get a profitable return on investment.

Demat Account is Mandatory for Investment

When it comes to the mutual fund industry, an individual only needs a PAN card, a bank account, and a one-time process of filling up a Know Your Customer or KYC Form. The basic requirement is you must know how to open Demat account, which is needed to trade in the stock market. It stores your shares in digital form. However, if you want to invest in mutual funds, it is not mandatory to have a demat account. You can start your investment through SIP’s.

Reputed Companies will Give Higher Returns

While investing based on your knowledge of a company may have particular benefits, there are also some disadvantages associated with it. Depending on the industry, the stocks of famous companies may still be volatile and vulnerable to unexpected changes in the market. You should be open to studying the brands that may not be big players but have a well-built and strong business model.

The investment seems to be simple but at times demotivates people due to some misconceptions about it. To summarize the points mentioned above, investing in the share market presents you with the ability to invest in different asset classes with minimum to moderate to high risk depending on your risk-taking ability.

November 17, 2019
7 Real-World Scenarios Where Printed Checks Are Still Beneficial

When it comes to paying bills and settling accounts due for your business, you’re probably using digital methods to manage and transfer your money. It’s not difficult to understand why you and many other business owners prefer using e-banking over traditional banking: it’s easier, more convenient, and there is increased security compared to using paper checks.
However, this does not mean that you should rule out using old-fashioned checks entirely. In fact, there are still times when you will benefit more from using paper checks compared to digital payment methods. Thus, you can still use checks, but make sure that you use secure window envelopes for checks when sending them through the mail.

1. Avoid Extra Charges
If you are paying utility bills or federal licensing fees, using a paper check can help you avoid extra charges that come with credit card processing. Keep in mind that many companies, especially government offices and utility companies, use third-party services to process credit card statements, and they pass on these fees to their clients. Every time you use a credit card or online payment, you will pay these fees.

2. No Power? No Problem!
When you’re paying through electronic means, it obviously means that if there is a power outage or problem with the Internet connection in the area, you won’t be able to pay! If the power outage is severe, even ATMs in the area might be affected, so you won’t be able to get cash easily either.
Using printed checks help you avoid these problems and still make your payments without any problem. Since processing and filing your check won’t need any electricity, there won’t be any problem with accepting your payment. However, make sure that you still record the process with your mobile phone so that you have proof that you paid your bills during the power outage.

3. Some Businesses Still Go Old-School
Even in today’s digital age of electronic payments, there are businesses that actually prefer using old-fashioned checks! Many government offices, large companies, and even landlords will require that you use a printed check over digital payment methods. Of course, you shouldn’t discount retail business owners who won’t accept credit cards because they don’t want to bother with having to make their business compatible with electronic payment methods.

4. Avoid Minimum Purchase Requirements
Many small and medium-sized businesses will require a minimum purchase amount for any transaction to offset the costs of using credit cards or electronic payments. Keep in mind that credit card companies and banks will charge a fee for their electronic services, and these fees can have a huge effect on a company’s bottom line if they accept small value transactions. If you don’t use paper checks and you don’t have cash on you, you’ll be forced to add more items to your purchase to meet the minimum purchase requirement.

5. A Strong Paper Trail is Always a Good Idea
If you want traceability and transparency for easier accounting purposes, using paper checks will give you the most control when managing and organizing your cash flow. Each step of the processing, filing, and cashing out the check is recorded on paper, and you will be able to ask for a copy for your business records. This way, you will have a strong position to start from if there are any disputes over your payments.

6. Recipients Have More Control on How to Manage the Incoming Funds
While this particular benefit is more for the good of your recipient than your own, having this option will actually be attractive for your recipient. Unlike using digital payments where the money will only be directed to a particular account, your recipient will be able to dictate how and when to cash in your payment. They will also be able to choose where they will deposit the payment.

7. A Younger Demographic Doesn’t Always Mean a Preference to Technology
Surprisingly, a large percentage of the younger generation actually still strongly prefers traditional banking methods over digital methods when it comes to accepting payments! There are many possible reasons for this, ranging from the higher number of banks using traditional payments (particularly in rural areas) to the fact that many banks arbitrarily change their policies concerning digital payments compared to traditional banking methods. In terms of stability and transparency, banks are more prone to suddenly changing their digital banking policies. Compare that to the process of accepting, processing, and cashing out paper checks which has not changed much through the decades, and you will understand why the idea of a digital bank is not as attractive to the younger generation as it could be.

October 22, 2019
A Complete Guide on REIT

Every individual looks for expanding his/her investment portfolio. With a variety of investment options available in the market, it often becomes difficult to choose which investment one should opt for.

There are a lot of financial characteristics to consider before building your investment portfolio. These things include tax rates, liquidity, gains, etc.

Real estate investing can be a major impetus to your financial portfolio. It can quite literally accelerate your journey to riches if done correctly.

Most of the time, real estate investing is often associated with owning properties and leasing them out. However, there is more to real estate investing than just this. Real Estate Investment Trusts (REIT) are an important component of real estate investing.

What is a REIT?

The full form of REIT is Real Estate Investment Trust.

It is just like a mutual fund. So this brings us to our question, what is a mutual fund?

Mutual funds essentially make use of pooled money from a variety of investors to buy financial assets like stocks, bonds, etc. Then, the gains from these financial assets are divided proportionately among the mutual fund investors.

Similarly, REIT pools money from a variety of investors to buy real estate and then generate income. It allows individual investors to earn a portion of that income-producing real estate.

These real estate portfolios are made with multiple property types. REIT indulges in buying properties and leasing the real estate to other companies/individuals. The income which is generated as a result of leasing out or selling is then distributed proportionately among shareholders.

Also, REIT is specific to one particular locality of the town/city. Therefore, you must choose the specific location you prefer to invest in.

Also, REIT is of different types, categorized into many sections including medical REIT, office REIT, residential REIT, retail REIT, etc.

Healthcare REIT includes nursing homes, medical offices, hospitals, and clinics. Office REIT includes business offices, business districts, etc. Hence, there are a lot of varieties of which REIT available in the market.

Advantages of REIT

Everything in life has advantages and disadvantages just like it is said there are two sides to everything: a bright and a dark side.

Any and every financial decision requires careful analysis before investing. Gauging the pros and cons before going for REIT is very fundamental.

These are some of the advantages of REITs:

Diversification

Diversification is the key mantra underlying investing.

One of the first things to keep in mind while building an investment portfolio is to diversify it. The old saying, “Don’t put all your eggs in one basket” holds true here.

Putting all your money into a single investment is never a good idea.

Rather than investing in one stock or one mutual fund, investing in various assets is a better way to guard against market fluctuations. REITs are very similar to mutual funds in their approach and thus are a good option to add to your investment portfolio.

Time

REITs can prove to be very good investment options when invested in for a long period of time. Also, REITs come with a lot of time flexibility.

Investing for long-term should be your priority if you wish to earn some major gains.

Liquidity

While it is easy to believe that selling houses is difficult, it is not entirely true.

When you invest in a REIT, selling houses and getting back your money is way easier. It is a relatively liquid way of investing in real estate.

Simple Tax Calculation

The gains on REIT are charged for taxes just like other incomes. There is no complexity in the calculation of taxes and the whole procedure is really simple.

Disadvantages of REIT

While there are a lot of convincing arguments in favor of REIT, there are certain downsides to it as well. Before investing, one should think about the downside as well. Here are some disadvantages or drawbacks:

Property Taxes

While property taxes would not affect you directly as an investor in REIT, they would however have an indirect bearing on your gains.

How?

Because property taxes can decrease the earnings you get from the REIT.

Also, property taxes vary from place to place. So you must keep a check on the property rates in the locality you are willing to invest.

Interest Rates

Whenever interest rates go up, REIT prices dip. While some people may consider this as an opportunity to sell and earn good money, it is important to keep in mind your long-term investment goals.

The decision to sell or hold your REIT should be based on your financial goals rather than the market situation.

Tax

The gain from REITs is often considered as an ordinary income instead of as a capital gain. Hence, the gains from your REIT are charged at a higher tax rate than capital gains.

How to proceed with REIT?

Now that you’ve gauged the advantages and disadvantages of REITs, you can choose whether it’s a good option for you to invest in.

But how would you approach REIT?

Research

Similar to any financial investment, you must do an ample amount of research. Read about which companies are better, which REITs give better returns, and which localities are better to invest in.

REITs or Mutual Funds that invest in REITs

You can either invest directly in REITs or choose to invest in mutual funds which then invest in REITs further. The second approach is better for those looking for little effort and greater gains.

Conclusion

On the off chance, you are looking to increase your income level and up your investment game, Real Estate Investment Trust is made for you.

Turbocharge your investments with this simple technique. If you have big-time aspirations for your financial situation, it is time to diversify your portfolio with real estate.

If you are willing to invest in real estate but wish to avoid its high risk, lack of liquidity, etc., then you must opt for REIT after carefully analyzing its pros and cons.

I hope this helped!

By HomeLight Homes

September 28, 2019
Title Insurance Fees – Is It a Worth Investment?

It is not mandatory for the potential homebuyers to pay for title insurance fees. Many buyers often wonder if they will be better off by having such insurance. The decision should be taken on the basis of your specific circumstance.

If you are buying a home in the same locality where you are living now or you know the seller for a long time, you won’t have any doubt if the person is the actual owner or not. In that case, paying for title insurance fees is not necessary at all and will be more like frittering away of your money. However, if the person happens to be unknown to you, title insurance fees are a worth consideration.

Advantages of Title Insurance

It is a safeguard against any hassle that you may encounter after buying a home from an unknown person. In case, you confront any issue regarding your home title, you will always be protected from paying outrageous fees or losing the property. As a potential homeowner, you must be in knowledge of several instances wherein someone who has no legal authority on a property sells it.

For example, a person who has filed for bankruptcy has no legal right to sell his property. If someone who is not acknowledged as the legal owner of a house attempts to sell a property without the original owner’s consent by forging documents, such an act will be strictly punishable in the eyes of law. Furthermore, the sale will be declared null and void by the court.

Unlike other insurance varieties, title insurance is not meant to protect you from unforeseen troubles, rather from current issues related to your property buy. You are protected from the time you sign on the dotted line of property deal. If anything wrong is discovered in later stage, you will have a peace of mind for having been covered.

Getting title insurance fees even when you know the seller is a smart idea. In many instances, the homeowner is not aware of the judgments on a property until a later date. If such incidence befalls you, it means you have to undergo a lot of hassles. By paying for title insurance fees, you can easily avoid unforeseen troubles.

It will be worth an investment as you will always stay protected from paying additional charges or incurring loss. Just imagine how much trouble it will be if you find out that the seller and owner are not an identical person. By availing title insurance fees, you will be relieved from having to deal with any trouble due to defect in property ownership.

In view of the benefits one can get, amount of title insurance fees is very reasonable. Directly talk with the insurance company if you will be required to make payment at one go or it will allow you to pay over a period of time. In some cases, the owners are allowed to club together insurance fees and mortgage cost and pay them at a time instead of paying to different companies.

Author Bio: Jenny Halin is a financial advisor and personal finance blogger who is writing many more financial and personal finance blog content.

September 27, 2019