Personal Finance Blog

Archive for December 31st, 2009

If you are wondering what may be a good option to go for with regards to your investment plans, especially after the ill effects of this recession, it may be a good idea to invest in stock market and get the benefits that lie in there for you. Confused? If you think that the recession has actually made the stock market the worst investment option, you are quite wrong. Let me explain.

The Stock Situation

Whether it is the forex trading systems or the stock trading systems, you will find the market at a low at the moment. Therefore, if you consider these markets to invest, stock market and forex trading systems can offer you some great prices for the units and the stocks.

What I mean is, since the stocks and the indices are quite low at the moment, you can get hold of some good stocks and units at cheap, and their values are only to increase over the coming time. Your investments are sure to pay off. All you need is to be a bit careful about the stocks and currencies that you are investing.

Forex Managed Accounts

At the same time, the forex managed accounts can also be quite a good investment option. Many experts have actually pointed out that these accounts can be quite a good option to consider at the moment. With the market down, your chances of seeing positive returns for your investments are high, and the right currencies can be pretty safe for you to venture into.

People have already gained over 100% on some currencies post recession, as they invested at the right time. This may all sound very easy, but caution is definitely the word. You must be very clear about your investments to stay away from losses. But time is definitely running out.

Time Running Out

Most investment agencies, stock brokers and forex brokers would advice you that you should hurry up with your investment plans in the stock market or the forex trading systems before the market settles down again. Already the market has started on its way towards normalizing after the recent crash, and by the end of the year 2010 it would definitely be somewhere else.

So now is the time to consider your investments, and check out the forex and stock trading systems. If you are not very confident and knowledgeable about these investment ideas, a good stock trading or forex course can come in very handy for you. Check out all your options and find out what your approach should be.

Don’t fall behind while you still have the opportunity to invest. Stock trading and forex trading systems are worth a look at present if you want to get some good returns on your investments.

Whether you are starting an import business or have an established importing business, it can be a very profitable venture if you have the right financing to grow your business. Imports are defined as: a good that crosses into a country, across its border, for commercial purposes; a product, which might be a service that is provided to domestic residents by a foreign producer; or a combination of the two.

Starting or running an import business has never been more profitable because of computers, the internet, and the availability of low cost imports from countries such as China and Mexico. These imports may be resold for up to ten times their cost depending on the competition in your field of operations.

It is essential that you have good, honest suppliers plus creditworthy customers with purchase orders for your imports. If you have the right financing, your business can grow exponentially. But how do you finance growth if your own resources or bank lines of credit are not sufficient to take advantage of big opportunities? A combination of purchase order financing, accounts receivable financing with inventory financing may be the solution.

Definitions:

Purchase Order Financing

Purchase Order financing is the assignment of purchase orders to a third party, a commercial finance company, who then assumes the obligation of billing and collecting. Purchase order financing can be used to finance all current and subsequent orders to improve your company’s cash flow. The process works as follows: 1) Your company obtains a purchase order for products to be sold another company; 2) A letter of credit may be issued, based on a finance companies’ credit, to guarantee payment to suppliers or factories producing the goods; 3) The order is shipped, delivered and accepted by your customer; 4) The customer receives an invoice for the goods; 5) The Purchase Order Company pays the supplier/factory; 6) a commercial finance company or Accounts Receivable Finance Company pays the Purchase Order Financing Company after the products are delivered to your customer; 7) The customer pays the commercial finance company for goods received; The accounts are settled and the profit is paid to you.

Accounts Receivable Financing

Accounts Receivable Financing is the selling or pledging of your company’s account receivable, at a discount, to a Factor, a Commercial Finance Company or to an Accounts Receivable Financing Company who may assume a risk of loss. You receive a portion, usually 80% to 90% of the face value of your receivables in advance of payment from your customers in return for a fee, or interest, to be paid to the commercial finance company. When the commercial finance company is paid by the customer, the appropriate fees are deducted and the remainder is rebated to you. “Accounts receivable financing” is also called accounts receivable factoring, factoring financial services, invoice factoring and cash flow factoring. The terms are used to convey the same meaning.

Inventory Financing

Inventory financing is a loan secured by the inventory of your business. Inventory finance enables import companies to hold more stock without cash flow strain and to generate more sales. Inventory finance is often part of a Purchase Order and Accounts Receivable Financing commercial finance package.

These three types of financing can enable an import business to increase purchasing capabilities dramatically; you can accept larger orders and grow your business exponentially. You can use your inventory to leverage your purchasing power. You can use your customer’s credit to obtain these three types of financing; and you can use the commercial finance company’s credit to obtain a letter of credit.

The concept of financing your import company with “other people’s money” is part of a safe and sound business plan. Add strong product quality controls, inventory controls, and good accounting to maximize the success of your import company.

Copyright © 2007 Gregg Financial Services

www.greggfinancialservices.com