Category Archives: Finance

International Finance and Global Relations

Countries are currently more proactively working together causing an increase in globalization. Globalization started after World War II but has accelerated considerably since the mid-1980 mostly because of technology being sought out overseas and more governments are refusing to protect their economy from foreign competition. Since international trade and globalization have been rising there is the need for more International laws. International law allow nations to work together cooperatively to make this globalizations possible through things like treaties and agreements for international trading. The exchange of goods across international borders needs to be regulated by laws so that countries can get along and problems and disagreements can be minimized. These laws are hard to establish because of the lack of a central world governing system but must be made and recognized in order for the interactions involving trade between all countries involved to be possible. Even with lack of a central global world leadership program, countries abide by these laws because they know that in order for mutual benefit they must get along. Things like natural law and the knowledge that another country will retaliate if one country does not hold up their end of the deal deters countries from breaking these agreements. International laws make trading easier for countries by forcing the parties to agree upon the rules and interactions that are in the best interests for everyone involved.

Along with international law comes the decision of countries to form international tariffs. Tariffs are a type of international law formed for reasons such as protecting internal and developing economies, protecting domestic employment, protecting consumers, national security and retaliation. Tariffs protect the internal economy and developing economies by increasing the cost of goods imported therefore restricting the amount of international trading that occurs. This in turn allows small companies and production of resources to be domestic and to become established. This also increases employment in the domestic country where the tariffs are being enforced. Tariffs also protects consumers when the governments of some nations place high tariffs on imports that they know are going to contain harmful products which will usually deter the trading of these goods. This also pertains to national security. Retaliation occurs when a country is trying to either protect their own economy or if a military action or war occurs then the other country may not agree with the decisions and a tariff will be placed on goods as punishment. Tariffs are basically taxes that add to the cost of imported goods by one of two ways; either by adding a fixed fee to a single unit of good or adding a percentage to the value of a good. Although most laws are needed for smooth interaction between nations, tariffs cause problems because they get in the way off a natural flowing free trade system. The reduction of tariffs between international nations would further increase international trade and benefit globalizations in general allowing the best allocation of world resources.

Regional trade blocks can contribute to transition countries’ economic stabilization but they also carry risks of diverting trade from potentially more beneficial trade partnerships with other countries. Ten transition countries in Central and Eastern Europe and the Baltic’s have applied for membership in the European Union, and nearly all transition countries have applied to join the World Trade Organization (WTO). Joining the WTO would provide countries with protection particularly quotas which still hinder their exporting many goods to developed countries. Among these goods are agricultural products, iron and steel, textiles, footwear, and many others which may have comparative advantages. Joining the WTO would not only present rights on transition economies, it would also require them to meet certain obligations, such as maintaining low and abolishing non-tariff barriers. A major challenge for transition economies is finding their place in the worldwide division of labor. In many cases that means diversifying the structure of exports, particularly to developed countries.

Investment Property Financing and You

Obtaining investment property financing is no longer a big issue these days. However, it does require a great deal of effort, time and money to be successful in the investment property business.

For their own benefit and also to convince the financer, the investor needs to be clear about the reason for purchasing investment property, the amount required to be borrowed and for what period, the expected returns on the investment, can he or she afford it, etc. This helps in narrowing down the type of property that would suit the investor’s needs, identify the lender(s) who should be approached, consider all the tax angles as well as identifying which specialists or consultants need to be hired or referred to so as to get the job done smoothly and completely – ensuring that there are no hassles later on.

The primary objective of investment property financing is to ensure enough funds are available to purchase property that would generate income as well as profits through rentals and appreciation of value. The most common sources of such financing are the banks, lending and financial institutions, but there are an increasing number of private financers including venture capitalists who see this form of investment as a win – win situation, especially with the housing market slowly picking up all over the world, after being ravaged by the recent economic downturn. An investor having a good credit history and score, a proper investment plan and some collateral is sure to get the investment property financing required, sometimes even up to 100% of the value of the property.

Construction Financing and Commercial Loans

There are many new challenges which are increasingly evident with commercial mortgages, particularly those involving commercial construction loans. Many commercial financing experts currently project that the changing environment for working capital loans and most other business financing will produce several new but avoidable problems for small business owners.

There have always been complex problems for business owners to avoid when seeking commercial loans. By most accounts, these difficulties are now expected to multiply because we appear to be entering a period which will be characterized by even more uncertainties in the economy. Prior standards for commercial mortgages are likely to change suddenly and with little advance notice by lenders if the current financial turmoil continues.

This article will evaluate why commercial construction loans have become harder to obtain and will discuss possible commercial finance funding solutions. The current economic uncertainties combined with less capital availability for commercial mortgages in general and construction financing in particular means that it is much more likely that borrowers will need to look beyond their regional market area for business financing help. In many areas of the United States, virtually all business construction funding sources are effectively inactive at this time in addressing new loan requests.

Seller Financing and the Current Credit Crunch

The banks are hurting so much so, that they have decided to share the pain with the consumer. Even if you have been an exemplary customer, the banks will still pass their pain onto you. The pain of our current economic distress is being felt by all of us in different ways. From an all time high unemployment rate to cutbacks in salary or wages.

People are feeling the money crunch just like, if not more, than the banks. As if all this uncertainty wasn’t bad enough, the banks have decided to make everyone, even customers that pay their credit cards on time or consistently pay on time in full. No matter your account status the banks are lowering the limit on credit cards. So this obviously changes you debt to credit ratio. Making your debts appear as if they have suddenly become higher.

The ripple effect is your credit score becomes lower, in some cases plummets by more than fifty points. This sudden down turn then alerts the banks that you are having a financial problem. In essence the banks are creating your newly negative score.

Corporate Finance and The Quality of Money

Economics as a broad discipline is sometimes treated as a hard and quantitative physical science and sometimes as a human and social qualitative science.

The ongoing debate revolves around whether economics follows certain mathematical laws which can be discovered, or whether it revolves more around generalities and tendencies which can be explored but never proved for certain.

Corporate finance, as a subset of economics, tends to be framed very much as a hard, mathematical science.

Whereas accountancy is a mathematical record of what has already occurred in relation to the trade and ownership of a company, corporate finance is the process of matching necessary funding to trade and the allocation of ownership through investment.

Looking for Business Financing and Investors

Whether you possess any shop or store, it serves the general public business financing that can be problematic in today’s economic environment. Traditional banks do not grant usually working capital loans to well grounded businesses, and allow one to provide amount to begin a new business. The bank’s security needs would be such that the business owners might look at the private capital sources or personal resources. Along with this, most of the businesses require business capital to grow as well as prosper.

The phrase well known as when you stop growing you start dying is not far from a fact for several entrepreneurs. So, where does the one that will find access to working capital or loan to begin a business. The good thing is that difficult economical conditions have hampered non traditional funding resources that fill the gap that the banks found it mandatory to develop. Knowing and leveraging your best choices is a key business strategy, which private investors think that they have unlimited options for investment opportunities. The basic need is to have apt capital. If as an investor you have that extra cash, you can really make that money work for you. Along with the normal investments including mutual funds, stocks and bonds, a private investor will seek other investment vehicles like real estate and small businesses. There are 2 forms of investment business investors i.e. investment angels and venture capitalists. Both types of business investors are poles apart and show two different viewpoints.

Attaining business funding is a very difficult task, especially when you do not have an impressive credit profile to give you a back up. So, is this thing means that you need to give up on your dreams of having your own enterprise? Definitely not! Not all business possessors have enough cash to purchase a small business. Most of them either plan to pay for the balance via loan transactions or via down payment. Moreover, there are many ways to avail the business financing you require. A good substitute is to get extra funding through a business cash advance. In a shell, there are many financing institutions that proffer such kind of choices and options, via which you can avail business funding and capital very easily.

Funding Rural Housing and Economic Development

Prior to 2010, the U.S. Department of Housing and Urban Development (HUD) encouraged residential and commercial improvement in rural areas via its Rural Housing and Economic Development program. In 2010, however, that program was replaced with one called the Rural Innovation Fund. Money for the program was allocated via the Consolidated Appropriations Act of 2010, and grant applications were accepted from rural-based Housing Finance Authorities, non-profits and other organizations.

According to the Notice of Funding Availability (NOFA) released last year, the Rural Innovation Fund was created to “provide support for highly targeted and innovative grants dedicated to addressing the problems of concentrated rural housing distress and community poverty… ” In other words, the grants are intended to encourage affordable housing and mixed-used development in rural communities that don’t qualify for other types of development funding.

Grants are available in three separate categories: Comprehensive; Single Purpose; and Economic Development and Entrepreneurship for Federally Recognized Tribes.

UK Finance and Auditing Regulatory Bodies

The role of the regulatory bodies in the UK Financial dealings is very important. We cannot neglect their role in UK Finance. There are many regulatory bodies for UK Finance and Auditing. Some of them are mentioned here.

A non-governmental independent organization called the Financial Services Authority (FSA) is available in the UK. This UK Finance company is funded by the financial services industry. The policies, plans, and rules of the UK Finance company are transparent and open. It is funded by the companies that it regulates. The website of this organization has information for consumers on their rights and regulation. It also gives information on the financial products available. The financial services industry in the UK is regulated by FSA. They have enforcement powers and investigative powers. They have the power to regulate deposit taking, Insurance investments, and Mortgage lending and general insurance advice.

Financial Ombudsman Service is another organization the helps the customers to solve any UK Finance disputes with the financial firms in UK. Complaints about Banking services, credits cards, endowment policies, health and private medical insurance, mortgages, motor insurance, and National Savings & Investments can be done with the assistance of Financial Ombudsman Service. They also help you on complaints about savings plan and accounts, stocks and shares, and travel insurance. For more details on the types of coverage that is done by them you can visit their website. Before you approach them for resolving the issues it is better you complaint to the concerned organization first. If the problem is not solved by the organization then you can approach the Financial Ombudsman Service for assistance.