Monthly Archives: January 2018

Business Finance Consultantants

Business finance consultants are the backbone of an organization. They help establish the both the long-term and short-term objectives of the firm that makes for effective utilization of the financial resources. They also help in formulating financial and business policies. Financial policies relate to procurement, administration and distribution of business funds. Business finance consultants also play a pivotal role in formulating procedures. Procedures are the specific order of doing things. They ensure consistency of actions. In financial procedures, the financial executives decide the control system, develop standards of performance and evaluate the performance.

Finally, business finance consultants help forecast the future. In order to take proper action to achieve the objectives, it is necessary to know future positions. Business finance consultants help make a sound financial plan. A sound financial plan should be simple as well as practical. When there is complexity in the financial plan the operating executives will find it difficult to follow. Also, the financial plan should be designed with a long-term view. While designing the investment, financial and dividend policies, the long-term requirements are also considered. A financial plan requires vision and forecast.

A financial plan designed by business finance consultants should have flexibility. That is, it should incorporate changes in the plans and ensure liquidity by meeting maturing obligations in time, but not at the cost of profitability. The plan should also ensure with the cost associated with various financial decisions at a minimum. A proper balance between fixed and working capital should be maintained for using capital effectively.

How to Choose a Car Finance Broker

Financing a car is a very important process and today with the availability of numerous car finance brokers it has become an easy option to get secure car loans. Today these car finance brokers are also playing a vital role in assisting car buyers. In fact, consulting and taking help of car broker can definitely be most appropriate option if you don’t have any clue about what to look at according to your budget. A finance broker is the most experienced personnel and clued-up on how to approach the financiers in a way that can persuade them to approve the loan. They usually have good relations and reputation with the lenders as being reliable, and so they know which lenders are likely to be open to a client.

In general, they act as the key source and offer services such as finding a used or brand new car model that the customer wants and within a budget range. At times, these car brokers even assist car buyers in negotiating with a used car seller. However, these days there are many car finance services and making a proper selection is turning out to be a very complicated process. You need to understand that not all car finance services are fair. Therefore, if you are looking to finance a car or choose a car financing service then here are a few important points that you should keep in mind while making a selection:

Standards

You must confirm whether your car finance consultant or broker is a member of FBAA or COSL or both of these industry associations. While Finance Brokers’ Association of Australia Ltd. (FBAA) is one of Australia’s leading membership bodies for finance broking professionals, the Credit Ombudsman Service Limited (COSL) is an independent organisation that is mainly indulged in handling complaints about finance brokers. You can easily confirm finance consultant’s membership by searching through their member list. Adding to this, WA Finance Broker License is yet another additional requirement for finance brokers serving in Western Australia. Nevertheless, if you are looking for finance broker and residing in the state of WA or other states of Australia, it is essential that the broker must hold a WA Finance Broker License. A broker holding WA Finance Broker License entails passing a comprehensive range of checks, educational requirements and operational requirements.

Accreditation

While selecting a car finance broker also ensure you know about their range of lender accreditations. The range of accreditations held by a broker governs the range of options they can offer. You must note that a broker’s accreditation can not just change the range of finance options available to you, but it may even affect the quality of those options.

Experienced Staff

You must choose car finance service that recruits and retains professional and knowledgeable staff. The broker must be an experienced professional who can demonstrate and explain about why a particular product is highly recommended or even suites your specific circumstance. If possible make sure you even ask for testimonials from previous clients that in turn may help you in the confirmation of their experience.

Services Offered

As mentioned earlier, today there are many finance services available in the market. Therefore, you must find out more about any extra service that a broker can provide. You should expect your finance consultant to supply detailed information about timeframes, and any fees or extra charges related with your finance. The key point is if a broker is being able to clarify the comparison rate of your recommended vehicle finance and the overall cost of your finance package then it is quality sign of a good finance broker.

These are some important points that can help you in choosing your car finance services easily. Today a lot of responsibility goes along with buying a car and taking financial help through car broker. Just taking care of few essential steps can help you select your car broker and further purchase a nice new or used car.

Business Acquisition Financing

Business acquisition financing is right up there with your basic root canal. It may be necessary but it most certainly is not fun.

In fact the overall process for acquiring an ongoing business can be a mind sucking affair, very expensive,and in the end unfruitful.

Why is the process so frustrating?

The answer in many cases is the advisors involved.

That’s right, the very people that are paid to complete the deal, are the same ones that kill it.

Let me explain.

All deals have two sides, a buyer and a seller. Both sides have to rely on their third party advisors for advise on such things as legal, valuation, taxation, finance, etc.

Unfortunately, the business acquisition financing issues do not tend to be dealt with in the construction of the purchase and sale agreement, creating sometimes unworkable issues for potential lenders.

When buyers and sellers rely heavily on advisors, there is automatically less chance for the deal to succeed. Why? Because it can be impossible for both sides to agree or reconcile issues between the advisors without great cost and time delays.

The advisors are commissioned by their clients to protect the client’s best interest. But in this process of protection, it can be very difficult to get both sides to agree on all issues as both groups of advisors are coming at each issue from the opposite point of view. The result is a deal between buyer and seller in principal that can’t get closed.

Even when the purchase and sale agreement does get finalized, there may be terms and conditions that are now not acceptable to your source or sources of business acquisition financing.

If the agreement has to be reworked for the lender, this can be the beginning of the end as it may have already taken the powers of heaven and earth to get everything agreed to and signed off the first time. Making revisions can be like opening Pandora’s box with no hope of ever getting it closed again.

If this all sounds bleak and depressing, it certainly can be.

The stark reality is that if you’re going to buy or sell a small business you need to self educate yourself to some degree before you get started.

Here are some points to consider:

>>> Approach the deal on a Win – Win basis. Too often in deal making, one side is trying to pull a fast one on the other and try to come out better that they otherwise would have.

This is a dangerous strategy because no matter what you and the other party agree to in principle, the advisors will weigh in at some point and likely uncover any inequity that was created in the negotiations. Not only does the deal now become more complicated as a new basis for agreement needs to be established, but there may also be distrust forming between the parties, either of which could end up killing the deal.

>>> Be the decision maker. There is nothing wrong with getting advise from advisors when trying to close a deal and arrange business acquisition financing. Just don’t turn all the decision making authority over to the advisors. Take all the counsel as input and then decide for yourself what issues to bend on and which issues are sacred cows.

>>> Select Deal Makers. Make sure that advisors you chose to work with (lawyers, accountants, business consultants) are deal makers not deal breakers. A working definition of a deal maker is simply someone who has a lengthy track record for closing the type of deal you are trying to consummate. These individuals have a combination of the right technical ability, relevant experience, and ego control necessary to truly add value for the money you’re going to have to pay them if the deal closes or not.

>>> Pre-Qualify the business acquisition financing requirements. Make sure that the buyer has the means to acquire financing. The buyer typically needs to have 1/3 to 1/2 the purchase price as a down payment, depending on the industry and the hard assets being acquired. Good credit and a solid net worth can also be requirements for suitable financing. The seller needs to be prepared to work with different financing options before getting too deep into due diligence. Will a vendor take back be required? How long is the vendor willing to assist with the business after sale? How much working capital is the vendor draining out of the business?

>>> Consult with a financing consultant. Whether you’re the buyer or the seller, there is great value to talking the potential deal over with a financing consultant before your accountant and lawyer start running up their tab respective tabs.

From the seller’s point of view, a financing consultant can be invaluable in providing insight as to how to get the business in a financial position. From the buyer’s point of view, a financing consultant can provide guidelines as to lender requirements. In either case, there is no sense going through all the potential aggravation of closing a deal if its unlikely to attract the necessary business acquisition financing capital.

>>> Become blood brothers (or sisters) with the other side. A close working relationship between the buyer and the seller can stop the deal from going down bunny trails and sitting unnecessarily on an advisor’s desk. Always listen to your chosen advisors, but remember that as buyer and seller, its your collective deal, and you’re the one’s who will make or break it when the issues are cloudy and the timelines are dragging on.

>>> Set a realistic time frame. Negotiating the deal, going through due diligence, getting advisor input, writing up the deal, and getting financing in place normally takes more time than first estimated.

If the change of control is time dependent due to the business sales cycle, year end, etc., then make sure you have sufficient time to get the deal done before you start, otherwise the only people that will be making any money will be the advisors when the deal can’t get closed on time.

Do You Really Need a College Financial

Would you pay $200 to save $10,000? Or $25,000? Or $40,000? Let me start off by saying that hiring a college financial aid consultant (or college financing consultant) is not absolutely necessary. Many families manage to put in the time and effort to research the financial aid process, and end up doing just fine. Having said that, I’ve seen firsthand how being uninformed and making mistakes in this area can lead to devastating consequences.

A friend of mine (we’ll call him Rob) is a prime example. He hired a “financial aid consultant” to help him navigate the bewildering college financing system when his oldest son was applying to colleges. I don’t know the exact qualifications for the man who showed up at Rob’s house to “help” him, but, he was clearly not qualified. Rob’s son was subsequently admitted to the expensive private school of his choice (which was no surprise, since it wasn’t a selective school), and they paid full price for the privilege. The son graduated, and now, 4 years later, both Rob and his son are still struggling every month to cover the payments on over $80,000 in student loans. I look incredulously at Rob and ask him, “What were you thinking?” His response: “We just didn’t know.”

So if you want to be sure that you’re informed about getting the most free college money, you may want to hire a professional. Let’s take a closer look…

1. How does someone become a college financing consultant? They go to their computer and print up business cards with their name, phone number, and the words “College Financial Aid Consultant” on them. That’s it. There is no governing board or regulatory agency to qualify, regulate or monitor them. It’s up to you to determine if they are qualified.

2. Exactly what does a college financing consultant do? An ethical, qualified college financing consultant will tell you all about the financial aid process. They will answer questions like:

a. What is financial aid?

b. How do I apply for it?

c. How much can I get?

They will also provide you with advice on exactly how and when to apply. They will go through the applications question-by-question, making sure that you answer each one accurately. They will help you sort through financial aid award letters, and help you determine which offer is the best for you. If you have special circumstances, they will help you submit an appeal to the financial aid office.

3. What does an ethical, qualified college financing consultant NOT do?

a. They will not ask you for your PIN in order to complete the FAFSA (Free Application for Federal Student Aid) for you. That’s illegal.

b. They will not tell you to lie about your income or assets in order to receive aid your wouldn’t normally qualify for.

c. And they will never, NEVER offer to sell you an annuity. Some insurance agents have realized that parents who are applying for financial aid are prime targets for buying annuities. Why is that? Because annuities aren’t listed as an asset for financial aid purposes. If a family has $100,000 in investments (stocks, bonds, CDs, etc.), that amount must be listed as assets on their FAFSA. However, if they liquidate all of it and buy a $100,000 annuity, they don’t have to list it on their FAFSA, and they may be eligible for more financial aid. Don’t be fooled. Anyone who offers to sell you an annuity is an insurance agent, not a college financing consultant.

4. What does a college financing consultant charge? Most reputable college financial aid consultants charge a fraction of what admissions consultant charge, and will probably end up saving you a lot more than what you paid.

If you decide to look for an ethical, qualified college financial aid consultant, there are two main questions to ask:

1. Have you ever worked in a college aid office? This answer should always be “Yes”. There are over 7000 federal regulations that deal with financial aid, and only someone who has worked in the “trenches” can really know the ins-and-outs of the application process, eligibility, packaging, etc.

2. Are you licensed to sell annuities? This answer should always be “No”. I have run into many of these “financial aid consultants” who make a KILLING selling annuities, but don’t offer very good college financing advice.

So now that you know the ropes, don’t end up like my friend, Rob. Like hiring a tax preparer when you don’t know much about taxes, hiring a qualified, reputable college financing consultant can make a scary, confusing process easier, and may even save you money.