First Financial Coach

What is Owner Financing?
Owner financing is when the property owner acts as a bank and loans the purchaser the money to purchase the property. Owner financing is often referred to as owner will carry, owner carry, tote the note, or seller financing.

Why Would An Owner Carry The Note?
There can be several advantages to the seller for seller financing. Some sellers are motivated by the tax advantages in spreading out the receipt of money from the sale of a property. Hence, they pay less taxes. Also, many owners simply like the idea that they can receive a monthly income from a property even after they have sold it. Sellers can also receive a better interest rate than in a CD at today’s rates. Additionally, in today’s economy it is hard for buyers to get loans so sellers get more creative. Also seller financing allow these seller to sell their home faster.

And they have more flexibility than a bank. They will even sell to buyers that have poor credit if they have confidence in the buyer.

What are the Qualifications?

When sellers are willing to finance people with bad credit they commonly require that the buyer make their monthly payments into an escrow account. They usually set a down payment amount that makes them feel comfortable that the buyer will want to protect that investment by making their monthly payments. If the owner is financing all of a sale then a borrower does not have to qualify for a loan at a traditional financial institution. Even if the seller only finances a portion of the loan the borrower benefits by having to qualify for a smaller loan from a traditional mortgage source.

What are the Costs?
When a seller finances a property there are no points and minimum closing costs for the buyer to pay.

Sometimes this is even covered by the down payment. There is no cheaper way to buy a home than through owner financing.

Conclusion
When it is a buyer’s market, as it is now, homes become difficult to sell and sellers are more flexible. They are inclined to do whatever is necessary to increase their chances of a sales and so owner financing is more readily available.

Find out more at http://www.ownercarry.webs.com/

Acquiring your first and subsequent cars is as easy as choosing the ideal auto finance. An ideal financing for your car is one that has low interest rates and also flexible repayments. When choosing auto finance much consideration has got to go into its affordability just as the car to be purchased.

Especially for a person with a bad credit score, it’s of core importance choosing affordable auto finance. To get affordable auto finance, simply shun the prime lenders. The prime lenders include banks. Banks only provide cheap finance to people with a good credit score. With a bad one, ideally opt for the sub prime lenders and more specifically the online lenders.

Online lenders are the cheapest and most convenient auto finance providers.

Simply approach them having obtained your credit report and rectified all the errors in the report. Remember no matter how adverse your credit score is, an online lender will readily provide you finance, provided you implement some few wise tips. These wise tips include acknowledging that while a bad credit score is not a hampering factor to acquiring finance from the online lender, one must prove to the lender that he/she is capable of paying installments on time. To prove this work towards raising a good down payment before approaching a lender and also ensure to suspend the use of your credit card for some time before approaching the lender.

Always remember, acquiring auto finance with a bad credit score should be one of the easiest things on planet earth. Simply shop around for the suitable lender online. Remember when shopping not to fall for the first lender who offers you cheap credit. Remember to get as many deals as possible then do comparison shopping. Opt for the finance not only with the cheapest rates but also with no hidden charges.

Knowing Corporate Finance
Corporate Finance is anything that refers to the financial dealings of a corporation. It is a general term that applies to methods, procedures and operations of finances of the company.  Corporate Finance is also called Corporation Finance. A corporation has a financial division department that is tasked in managing corporate finance. Through this business function, the company may be able to evaluate different business opportunities; and help analyse the different business relations that may impact the company’s operations and assets.

Objective of Corporate Finance
A core objective of Finance Corporate is to make wise decisions with respect to financial resources availability of the company. The company develops an operating budget that addresses all the company’s needs. Its goal is to ensure 100% financial resources accessibility for the corporation.

The corporation may expand their resources to stock shares and corporate bonds. Corporate Financing may also use in calculating assets and other business operations. It may also determine debt financing or equity financing of the business. Corporate Finance may invest from individual investors and firms such as venture capitalists and mutual fund agencies.

A well-functional Corporate Finance promotes, enhances and maintains financial resources. Any decision-making of Corporate Finance must be discussed and agreed by chief financial officers, financial staff board of directors or shareholders.

Quantitative and Qualitative Corporate Finance
Categorically, Corporate Finance may be quantitative or qualitative. Quantitative Corporate Finance uses mathematics and statistics to narrow down financial information and see its calculated results. Common quantitative formula are return on investment, cost-benefit analysis and net present value. Quantitative method is used to gather some financial information in the market. The information gathered will be taken by corporation then, and the information gathered will be taken by Corporate Finance department to determine the potential income and failure rate of a business opportunity.

Meanwhile, Qualitative Corporate Finance focuses more on decision making. The decision making relies more on the manager’s experience and expertise in the industry. The manager’s decision relies on his person view and assessment.

Corporate Finance Law
Every Corporate Finance has Corporate Finance Law. Corporate Finance Law refers to any legal issues relating to business and finance. In dealing with Corporate Finance Law, the corporation may contract attorney to guide the company and other businesses. Attorneys relate different legal issues such as lawsuits and understanding contracts. Corporate Finance Law ensures that all financial matters are legally protected and executed. Along with attorneys, other finance professionals such as financial experts and investment bankers aim in protecting the company by avoiding mistakes and other illegal predicaments.

What is Owner Financing?
By Common Ground Properties

I had a great conversation yesterday about Owner Financing with a
woman named April (names were not changed to protect the innocent).
April had been scouring the Internet high and low trying to figure
out

what does this darn thing called Owner Financing really mean ????

April ran into all sorts of articles on rent to own, lease option and
then a bunch of different sites saying owner financing. April
finally gave up the search and did what I encourage all of you to do
she picked up the phone and called me. When you see my Austin Owner
Finance ads all over the place that say Just Call Jessica. I really
mean it. I do my best to always answer the phone or call you back
right away. So if youre looking for owner financing answers youve
come to the right place. Ive been buying and selling homes owner
financed homes for over 8 years so Ive seen it all, done it all and
can explain to you in detail all the nuances.

The biggest question April had for me was whats the difference
between rent to own, lease options and owner financing.

Owner financing is a generic term that is used by anyone willing to
let you move into the home without getting a bank loan first and
giving you some kind of interest or ownership in the home.

Owner financing is like using the generic term transportation there
are many forms of transportation. Transportation helps you achieve
your goal of getting somewhere. Some get you where you want to go
faster others are terrible ways to get to your destination. If your
goal is get to Hawaii technically walking is a form of
transportation and eventually it would get you there but it would be a
very long and costly journey.

Owner financing helps you achieve your goal of home ownership. Some
forms of owner financing help you achieve your goal faster and some
help you get there but it can be a very long and costly journey.

The most common forms of owner financing that youll here these days:

Lease Options or Lease Purchase or Rent to Own
Wrap Around Mortgage
Subject To/Mortgage Assignments
Free & Clear Owner Financing

Lease options, lease purchase and rent to own are the most widely know
forms of owner financing and in my opinion the worst kind. These
transactions look as follows:

Seller owns house
Seller has existing mortgage on house (most of the time)
Seller advertises Austin owner financed homes for sale
Seller lets you move in
You and Seller sign lease/rental agreement
You and Seller sign purchase agreement or option to purchase
agreement. This agreement says in the future the seller agrees to
sell you the house. You agree to fix your credit so you can qualify
for a new loan within the time frame agreed upon.
Seller collects down payment, deposit or option money from you. Which
99.99% of the time is non-refundable.
You DO NOT get title to the home when you move in. Your name is NOT
on the deed when you get your keys. The original seller remains the
legal owner until you get your new bank loan.

I had a woman call me recently. 2 years ago she gave her seller
20,000 down on a house. She fixed up the home, put new tile,
repainted, new appliances the works. Its her house (or so she
thought) she bought it with owner financing.

Well 2 years ago the credit score required for an FHA loan was 580.
Her 2 years were up and she was very excited her credit score was now
600 a full 20 points over the required 580. She quickly found out
that the new benchmark was 620 and she could not qualify for the loan.
Know what her owner finance seller did?

The seller gave her a notice to vacate, evicted her from home, put it
on the market and sold it to someone else (and kept her $ 20,000 of
course). For two years this woman thought she owned the home she
bought it with owner financing right? Nope she was a glorified
tenant with an option to purchase the home if she met all the strict
requirements within the time frame allowed. The credit rules changed
and voila all her hard work and money was gone. Her only option
hire an attorney and try and fight it but she did not have the $ 2,500
for the retainer that the attorney wanted to just start the case.

If you want to buy an Austin owner financed home dont settle for
anything less than getting the deed.

To me true owner financing is where you the buyer actually get the
deed to the home the day you get your keys. Also the time allowed to
obtain new financing. If the credit markets move the goal post and
make the new credit score 700 in a few years, then the financing
should be flexible and give you the time you need to meet the new
requirements.

Other issues this lease option buyer could have run into. If the
seller had died and the house had gone into probate or if the seller
was sued and someone wanted to come after the sellers assets. In
either case since the buyer did not actually have the deed and title
to the home. Someone else really owned her home. She just had an
option to buy it in the future. So if lease options, lease purchase
and rent to own are the wrong way to do owner financing what is the
right way you ask????

Your next three owner financing options are:

Wrap Around Mortgage
Subject To/Mortgage Assignments
Free & Clear Owner Financing

In all of these options the deed is transferred to you immediately.
The day you invest you down payment is the day you get your keys and
the day your name appears on title to the home.

For homes with Free & Clear owner financed homes there is no
existing loan in place. The seller of the home does not owe any money
on the home.

For homes sold with a wrap around mortgage, subject to or via mortgage
assignment. There is an existing loan in place and the seller is
willing to leave that in place and will use your monthly payment to
pay that loan. The loan stays in place until you refinance.

If the seller dies, gets sued or more commonly the home goes up in
value. No matter what you you own the home. Its yours. Now is the
best time in 20 years to be buying a home. Home prices are lower than
what people were buying homes for in 2004 to me that translates into
an incredible opportunity.

Wrap Around Mortgages, Subject To and Mortgage Assignments can be very
tricky and its important they are setup well. I dont share publicly
my unique safeguards that I have in place to protect you and your
investment.

I encourage you to call me at 512-215-4987 and ask me how my owner
financing program is different from the rest. Every person and their
brother is out selling owner financed homes these days most are new
to the business and dont have the years of experience it takes to
make sure you, your family and your investment are well protected. I
have a long list of references you can speak to that bought owner
financed homes from me years ago.

When checking references (and I highly recommend that you do) dont
talk with a buyer who bought just a few months ago, talk with someone
who bought several years ago. Only then will you get a true picture
of what your future could look like.

When you buy an owner financed home from me, you are creating a long
term relationship with myself and my company. I look forward to
working with you and appreciate the opportunity to be of service.

Please dont hesitate to call me 512-215-4987 with any questions
and I really mean it just pick up the phone and call me. As an
added incentive I promise to laugh at your jokes and patiently answer
all your questions!

I had a great conversation yesterday about Owner Financing with a
woman named April (names were not changed to protect the innocent).
April had been scouring the Internet high and low trying to figure
out

what does this darn thing called Owner Financing really mean ????

April ran into all sorts of articles on rent to own, lease option and
then a bunch of different sites saying owner financing. April
finally gave up the search and did what I encourage all of you to do
she picked up the phone and called me. When you see my Austin Owner
Finance ads all over the place that say Just Call Jessica. I really
mean it. I do my best to always answer the phone or call you back
right away. So if youre looking for owner financing answers youve
come to the right place. Ive been buying and selling homes owner
financed homes for over 8 years so Ive seen it all, done it all and
can explain to you in detail all the nuances.

The biggest question April had for me was whats the difference
between rent to own, lease options and owner financing.

Owner financing is a generic term that is used by anyone willing to
let you move into the home without getting a bank loan first and
giving you some kind of interest or ownership in the home.

Owner financing is like using the generic term transportation there
are many forms of transportation. Transportation helps you achieve
your goal of getting somewhere. Some get you where you want to go
faster others are terrible ways to get to your destination. If your
goal is get to Hawaii technically walking is a form of
transportation and eventually it would get you there but it would be a
very long and costly journey.

Owner financing helps you achieve your goal of home ownership. Some
forms of owner financing help you achieve your goal faster and some
help you get there but it can be a very long and costly journey.

The most common forms of owner financing that youll here these days:

Lease Options or Lease Purchase or Rent to Own
Wrap Around Mortgage
Subject To/Mortgage Assignments
Free & Clear Owner Financing

Lease options, lease purchase and rent to own are the most widely know
forms of owner financing and in my opinion the worst kind. These
transactions look as follows:

Seller owns house
Seller has existing mortgage on house (most of the time)
Seller advertises Austin owner financed homes for sale
Seller lets you move in
You and Seller sign lease/rental agreement
You and Seller sign purchase agreement or option to purchase
agreement. This agreement says in the future the seller agrees to
sell you the house. You agree to fix your credit so you can qualify
for a new loan within the time frame agreed upon.
Seller collects down payment, deposit or option money from you. Which
99.99% of the time is non-refundable.
You DO NOT get title to the home when you move in. Your name is NOT
on the deed when you get your keys. The original seller remains the
legal owner until you get your new bank loan.

I had a woman call me recently. 2 years ago she gave her seller
20,000 down on a house. She fixed up the home, put new tile,
repainted, new appliances the works. Its her house (or so she
thought) she bought it with owner financing.

Well 2 years ago the credit score required for an FHA loan was 580.
Her 2 years were up and she was very excited her credit score was now
600 a full 20 points over the required 580. She quickly found out
that the new benchmark was 620 and she could not qualify for the loan.
Know what her owner finance seller did?

The seller gave her a notice to vacate, evicted her from home, put it
on the market and sold it to someone else (and kept her $ 20,000 of
course). For two years this woman thought she owned the home she
bought it with owner financing right? Nope she was a glorified
tenant with an option to purchase the home if she met all the strict
requirements within the time frame allowed. The credit rules changed
and voila all her hard work and money was gone. Her only option
hire an attorney and try and fight it but she did not have the $ 2,500
for the retainer that the attorney wanted to just start the case.

If you want to buy an Austin owner financed home dont settle for
anything less than getting the deed.

To me true owner financing is where you the buyer actually get the
deed to the home the day you get your keys. Also the time allowed to
obtain new financing. If the credit markets move the goal post and
make the new credit score 700 in a few years, then the financing
should be flexible and give you the time you need to meet the new
requirements.

Other issues this lease option buyer could have run into. If the
seller had died and the house had gone into probate or if the seller
was sued and someone wanted to come after the sellers assets. In
either case since the buyer did not actually have the deed and title
to the home. Someone else really owned her home. She just had an
option to buy it in the future. So if lease options, lease purchase
and rent to own are the wrong way to do owner financing what is the
right way you ask????

Your next three owner financing options are:

Wrap Around Mortgage
Subject To/Mortgage Assignments
Free & Clear Owner Financing

In all of these options the deed is transferred to you immediately.
The day you invest you down payment is the day you get your keys and
the day your name appears on title to the home.

For homes with Free & Clear owner financed homes there is no
existing loan in place. The seller of the home does not owe any money
on the home.

For homes sold with a wrap around mortgage, subject to or via mortgage
assignment. There is an existing loan in place and the seller is
willing to leave that in place and will use your monthly payment to
pay that loan. The loan stays in place until you refinance.

If the seller dies, gets sued or more commonly the home goes up in
value. No matter what you you own the home. Its yours. Now is the
best time in 20 years to be buying a home. Home prices are lower than
what people were buying homes for in 2004 to me that translates into
an incredible opportunity.

Wrap Around Mortgages, Subject To and Mortgage Assignments can be very
tricky and its important they are setup well. I dont share publicly
my unique safeguards that I have in place to protect you and your
investment.

I encourage you to call me at 512-215-4987 and ask me how my owner
financing program is different from the rest. Every person and their
brother is out selling owner financed homes these days most are new
to the business and dont have the years of experience it takes to
make sure you, your family and your investment are well protected. I
have a long list of references you can speak to that bought owner
financed homes from me years ago.

When checking references (and I highly recommend that you do) dont
talk with a buyer who bought just a few months ago, talk with someone
who bought several years ago. Only then will you get a true picture
of what your future could look like.

When you buy an owner financed home from me, you are creating a long
term relationship with myself and my company. I look forward to
working with you and appreciate the opportunity to be of service.

Please dont hesitate to call me 512-215-4987 with any questions
and I really mean it just pick up the phone and call me. As an
added incentive I promise to laugh at your jokes and patiently answer
all your questions!

You can visit us at www.austinownerfinance.com
By Common Ground Properties

To get to know about fleet car finances, first we should delve into the meaning of fleet cars. Fleet cars are those cars that are owned and leased by a business or government agency, instead of a particular individual or a family. Car rental companies, public utilities, bus companies, police departments are may be an example of the fleet car owners. Now, when it comes to business, some companies lease or purchase these cars. The objectives are manifold. It may be to deliver goods or for sales representatives to travel to clients.

Now-a-days, the number of people trying to buy or lease a new car from fleet sales has seen a step rise. This steepness was attained due to the fact that cars blessed with diversity are made available by the car brokers. Different models of cars are now making their way into the fleet car area of the car brokers and thus arresting the attention of a potential buyer or leaser. Another factor that leads to this impressive rise of numbers is the apparent easiness and lack of complexity and formality that purchasing a car from fleet sales entails. The negotiation is the slightest possible amount and to make the day all the better, one can get to purchase or lease the car in wholesale price. It is also less time-consuming one might think!

Before going overboard, one also have to keep in mind that some factors are have to be checked before purchasing and taking part in fleet car finances. First and foremost, one has to have a most clarified notion about the model that is going to serve his purpose the best possible way. The fact that fleet car brokers do not spend much time in convincing the potential clients, so the client must make up mind quick and effectively.

Also, it is imperative that when leasing or buying a car, you possess a clear idea about all the discounts available that may be able to cut the price to a considerable amount. Even this discount may enable to you to purchase or lease a car model that otherwise would be outside your budget-range.

Lastly, the importance of shrewd negotiation is massive. Though it sometimes is obvious that the car brokers offer the best deal, you should still ask for further discount, which if, continued persistently, may lower the price bar even more.

Fleet car finance is sometimes called the most straightforward choices available for a business when it comes to purchasing or leasing a new or used car model. Deposit terms that are not worth mentioning may be available that entirely hinges upon the arisen circumstances. Also, the payment is also varies that depend upon the tax status. With a car lease, terms and conditions may be set and put forth with interest rates that are unanimous. The repayments can be funded throughout the tenure of that lease. Even the leaser has the opportunity to buy that car when the lease tenure reaches its end.

Article by Stan Prokop

Film, television, and digital multimedia financings are always a challenge to Canadian based productions, but recent trends in the industry allow for a number of new and aggressive ways to finance your ongoing productions. For many participants the playing field is somewhat complex, as it is a mixture of industry, government and private sector financing that ultimately bring financing and cash flow to the success of your work. No one seems to be disputing the tremendous growth in the industry, particulary in Canadas major entertainment centres of Toronto, Vancouver, and Montreal.

Canadian content is king when it comes to financing strategies. As the industry if financed on a much larger scale in the U.S. there is always a challenge for Canadian productions in all entertainment sectors to find both short term working capital and significant long term capital and equity. The support the industry is getting from both provincial and federal sectors continues to be quite overwhelming.

The financing of tax credits in film, tv, and digital media, either through the Scientific Research and Experimental Development program, of the various other supported programs is one of the strongest ways to achieve interim working capital and help to balance your debt/ equity investments in any particular production. The good news is, that with the experience of a trusted and credible financing advisor in this area even accrual financing can be applied to these sorts of tax credits. That only means one thing of course – getting your funds immediately, and not waiting for the ultimate tax credit refund under the particular program under which your production is domiciled.

We are often asked if Canadian chartered banks play a role in these types of financing, and the answer is – yes, but very selectively. We have met and worked with specialized personnel from the banks in the area, and they clearly are ‘ boutique functions ‘ of the bank as a whole. Naturally though access to funds themselves is not a problem, as Canadian banks continue to be a world leader in liquidity, tier one capital levels, and access to funds.

So how do entertainment entrepreneurs access this capital. We simply believe that you must seek and search out experienced, trusted and credible advisors in this area. Financial people tend to be somewhat unable to predict ‘ hits and misses ‘ in the entertainment and media sector, we’ll let the creative type do that, but if there is access to financing available through areas such as tax credit financing, gap financing, accrual financing, etc its safe to say lets let the financial people handle that!

In our experience tax credit financing tend to be a minimum of 200k+ and up in Canada, and can of course go into the millions of dollars, so access to capital and who you are working with is very important. Naturally since out tax credit system and the financing of those credits infers a ‘ Canadian content ‘ ‘Canadian Equity ‘ requirement the additional pressure of having to finance just in Canada by virtue of the tax restrictions places just a bit more challenge of financing.

When does tax credit financing work best – In our opinion its when current programs are maximized and monetized simply from a timing perspective, accessing your capital now, not at some later point in time.

Your ability to discount now that future receivable or revenue stream is one of the greatest tools you have in financing prodcutons and content from a debt perspective. Actually its not even really debt, because you are simply monetizing or discounting an asset such as a tax credit receivable. You are raising cash flows against current receivables.

In Canada there is several billion dollars of tax credits awarded annually to the industry, so the ability to monetize these prior to final approval and audit, subject of coruse to your certification eligilbility, is one of your greatest assets from a financing and cash flow perspective.

Article by Stan Prokop

Producers and owners of Canadian content in the areas of film, television, and animation credits are not always aware that they have the ability to monetize or cash flow their Canadian tax credits in Canada. The three types of productions that we have referenced are provided with solid financing assistance from the federal and provincial governments in Canada. Your ability to monetize these tax credits, and turn them into cash flow at time of filing, (or in some cases before) can make or break the overall financing success of your venture. Successful results can be achieving by working with a credible, trusted and experienced finance partner for your tax credit financing in Canada. The financing of these tax credits creates, in effect premium additional cash flow to allow you to enhance your initial equity and debt and gap financing strategy. Let’s use a simple example wherein a Canadian produce in film, TV, or digital animation is financing a venture through equity and debt, and let’s say it’s a 50/50 proportionate relationship. The non equity portion of these ventures is often balanced with some sort of distribution agreements in Canada or elsewhere in the world. One strategy you could consider is to of course ensure prior to commencement and production that you qualify for and are eligible for the maximum amount of tax credits related to your venture. Let’s say our example consists of a 1 Million dollar independent film, and there is a 500k equity and debt component respectfully. In our example, if properly qualified and document the film owner, producer, etc can qualify for a tax credit that might easily come into the 200k-250k range. Is that the end of our example? Absolutely not – what we are saying is that you can immediately finance that claim, either at time of filing, or in some cases earlier, and utilize that cash flow for all sorts of purposes related to your venture / production.As Canadian production and content continues to play a hefty role in the producing of Films, direct to video, pay per view, and digital products the ability to finance these ventures is always a challenge. Very few of Canada’s banks and large financial institutions play a role in this type of financing; we therefore recommend to clients that they seek out the expertise of a credible, trusted and experienced advisor in this area. Maximizing your claim value and eligible cash flow are of course the rewards of working with the right party. Larger and well known studios require financing also, but the true challenge is for independent producers and their investors who have budgets that are often ten million dollars and under, sometimes quite significantly under that threshold we just referenced. The reality also is that the industry seems to be breaking all records in areas of growth and economic activity and new forms of content and distribution. The bottom line is that as demand increases and distribution structures improve the need for financing and tax credit financing in Canada is also increased.If a production can be properly pre-sold and distributed, and tax credit financing utilized as an integral role in initial production cost financing – well, that simply creates a perfect formula for financial success. To be successfully financing a production must have the proper amount of leverage, different exit and distribution strategies, and the proper utilization of tax credit and tax credit financing.Working with the proper parties can often achieve 50-75% immediate financing of your tax credits in Canada. The remainder is of course simply a buffer for the lender to allow for financing costs themselves, and any time lapses in the final approval and cheque from federal and provincial players that regulate the new generous tax credits. Tax credits are increasingly generous in Canada – just in the last year or so a number of enhancements have been made to the various programs at various levels of government. Take advantage of these credits, and further investigate monetizing those credits at time or filing of prior to maximize the cash flow and overall financing strategy of your film, TV, or animations projects.

Article by Kavita Singh

If you have looked into pursuing an MSc in Finance, you may have come across other degrees that sound similar such as a Masters in Mathematics of Finance, a Masters of Financial Engineering or a Masters in Computational Finance. Several aspects of these courses overlap. So what’s the difference?

The MSc in Finance is intended to prepare students for a wide range of careers both inside and outside the financial industry. It aims to produce finance generalists, whereas these other programs aim to train “quants” – namely specialists in derivatives, fixed income, alternative financial instruments and risk analysis.

Many MSc in Finance programs have no work requirement at all and enabling younger students to apply for MS programs. However, as this is not true for all programs – London Business School and Cambridge University requires that MS applicants have relevant work experience in the finance industry – make sure you understand the requirements in advance.

Some people are confused as to whether they should pursue a MSc in Finance or an MBA with a specialization in Finance. Both degrees can lead you to positions in investment banking and corporate finance. MBA programs have a broader management focus with an emphasis on leadership, while an MS degree enhances your knowledge and skills in specific area which then, which in turn enhances your career and job potential in that specific area. Talk to people in the industry to understand the difference in these job functions, to help you assess what career path you want to pursue. And start planning early in college, so that you have time to explore which career and degree most suited for you. The MSc is generally a 1 year degree and so it is approximately half the cost – a significant advantage.

Even if you decide to pursue a more ‘quant’ degree, you could still end up with a more generalist finance career. Amit Sanghani, who holds a Masters in Mathematics of Finance from Columbia University, says he leveraged the program as a “springboard to get into the finance industry”, joining Bank of America after graduating to work in structured finance. However, if you do want a ‘quant’ job, then an MSc in Finance will not get you there. If you have a computer science background, are strong in mathematics and are interested in finance, a more ‘quant’ based career may well be right for you. If the rest of this article makes your head spin or puts you to sleep, a career as a quant is probably not the right one for you.

So what exactly is a Quantitative Finance’? It is broadly about the Mathematical aspects of Finance. It is a study of the mathematical theories that are used to price and structure the various sophisticated financial instruments used by banks and hedge funds. Although the original ‘quants’ were concerned with risk management and derivatives pricing, the meaning of the term has expanded over time to include those individuals involved in almost any application of mathematics in finance for example statistical arbitrage, algorithmic trading, and electronic market making.

An advanced degree is necessary for most entry level positions in this field. After a Masters in Quantitative Finance you could pursue a career in the following areas:

* A front office or desk ‘quant’ interacts with traders directly, and give trading books an edge through different methods such as time-series analysis, and discovery of predictors/indicators. The objective is to determine prices, manage risk, and identify profitable opportunities. * An algorithmic traders or structure in the Sales and Trading divisions of banks. As an algorithmic trader you would develop trading strategies that exploit the inefficiencies in the market to create wealth. While an algorithmic structurer typically builds the computational tools to model these trades. * In portfolio analytics and risk management you would design the mathematical tools to construct optimal portfolios and manage their risks. Risk management has grown in importance in recent years, as the credit crisis exposed holes in the mechanisms used to ensure that positions were correctly hedged * A quantitative developer. You would develop robust and scalable implementations for the quantitative models that are created by the research guys. * A model validation quant independently implements pricing models in order to check that models are correct.

If you want to get into developing new quantitative models, then you will need a PHD to break in.

And the best Universities to study at if you want a career as a ‘quant’? Having looked at employer surveys, blogs and forums the consensus seems to be the following (not listed in any particular order): University of California Berkley, New York University, Stanford University, Carnegie Mellon University, Columbia University, Cornell, University of Chicago, Princeton and University of Michigan. While the degrees are slightly different at each university, ‘quant’ programs typically run one to two years long, are heavily focused on math and have a programming element. Students usually enter these programs either right out of college or after a year or two in the workplace.

Article by Stan Prokop

Clients are always asking what extra steps or information they need to know to complete a successful acquisition a new or existing franchise. Buying a franchise, it goes to says, is clearly one of the largest decisions any entrepreneur might take. Of coruse there are a couple of different versions of the opportunity, as follows – Purchase of a new franchise – Purchase of an excising franchise that is for resale by current owner- Purchase of an additional unit in your chain when you own one alreadyAre there any special tips and critical pieces of information you need to know that will get you a leg up on a ‘ leg up ‘ in the area of franchise finance. Let’s share and discuss three critical points.1. Franchise Finance is a very specialized type of financing – financing options are available but not unlimited – you need to know what they are2. There is a chance for franchise financing failure if you do not have the proper fundamentals in place and are exploring numerous options at the same time – ‘flailing around is not good!3. You might significantly benefit by using the services of a franchise consultant in the area of business financing Lets review our point # 1 – Business financing in general has always been a challenge. Specialized financing in any area of business is a unique challenge because of limited options and a limited number of players. Players = lenders! If you accept business financing is difficult then you can imagine the severity of the challenge in the 20010 global economic crunches that we still seem to be in.So is it all negativity and bad news. Not necessarily of course if you are informed and prepared. Let’s unveil the mystery of franchise financing. How exactly are the majority of franchises financed in Canada? The options are exactly as follows:- A special Government programme called the BIL program under which the majority of franchises in Canada are financed- Owner equity – your own deposit into the deal- Equipment and asset financing- Working capital cash term loan – typically a 5 year payback- Vendor financing ( if available – more often than not it is not )- Revolving line of credit for ongoing operating needs and growth!With respect to the last point we would emphasize that while it is of course important to structure a proper financing around your franchise purchase many business owners forget to consider how they will finance the business on an ongoing basis, and more importantly, how growth options will be financed.It is critical for you to understand that it is very rare that any one option will get you the full financing you need. The reality is that it will be a select combo (and that’s the expertise you require) to fully finance your business with any number of the above options.We point out in our key point # 2 that you must be prepared. This is where many clients tell us they have failed in the past – they have not prepared a proper business plan and executive summary. We encourage you to prepare a proper business plan, understand what your opening balance sheet will look like, and most importantly, understand the cash flow needs of your business. For example, if you take the time to sit down and do all the numbers ( this is actually easier than you think ) you could find that in month one and 2 and 3 that you might be experiencing negative cash flow. If sales ramp up slowly and you have negative cash flow then clearly you will have problems which could accelerate and dampen the overall success of your business. Finally, consider using the services of an experience, credible and trusted franchise consultant that can guide you through the financing maze. Having that party properly prepare a business plan, opening cash flow, executive summary, and proper financial projections is worth a small fee you might be charged. Business financing in Canada dried up in 2008 and 2009 – franchise financing is still alive and well though. Many lenders view franchise financing even more positively than other types of businesses and industries – the reality being that there is a greater chance of success for a brand that is proven and known, and has a reliable business model of proven success.Know your franchise options, be prepared in executing on those options, and consider italicizing a franchise consultant to complete your franchise loan and overall funding. That’s a solid plan!

Article by Stan Prokop

Can you please explain asset finance, or asset based lending to me? Is a common question we get from clients who want more information about Canada’s newest business financing solution? They keep hearing how this solution has solved the problems of their competitors and want to know more.So is it a difficult concept to understand? Hardly. Asset based financing, often called ‘ABL’ by those in the industry, is simply the method of obtaining the maximum working capital you need from your assets, which include typically receivables, inventory, and in many cases some equipment and/or real estate. That’s as simple as it gets. It is a little different when we explain how the whole process works, but simply view it as your ultimate working capital tool for financing your business.Although it’s been in existence for many years, in the past asset finance or asset based lending (we also call it a ‘working capital facility “) is coming into vogue. It doesn’t take rocket science to understand when, given traditional financing almost totally collapsed in the 2008-2009 global meltdown, and customer began searching for options and alternatives to their business financing needs.Lenders like asset based financing simply because they are using their expertise and knowledge in your assets to help you cash flow your business.Although many companies turn to asset based lending when they cant access traditional bank financing the reality is that this type of financing has some unique characteristics that allow you to utilize the financing for major expansions, acquisition of a competitor, or even more common, a ‘bridge ‘financing prior to re structuring your firm and accessing the traditional capital markets again.As we stated, it’s very simple for us to explain to clients what an ABL facility is, it’s a bit more complicated to get them to understand how it works. The best way to explain it though is to simplify it all and say that you should consider asset finance via a working capital facility as simply a ‘ revolving line of credit around all your business assets ‘. Can that be anymore simply to understand? We don’t think so.Typically the process is as follows – After the traditional ‘ application ‘ process there is an agreed upon value put on all your business assets – as we said, 99% of the time the assets under this financing include receivables, inventory, equipment, and in some cases real estate. The most common assets though are receivables and inventory.Your firm provides regular monthly, and in some cases weekly updates on the values of these assets, and you in turn use your regular bank account to draw down on funds, as you need them, to run your business. Similar to a bank revolving line of credit facility your asset based financing facility fluctuates everyday as a dollar of capital flows through your business – you purchase product, you generate a receivable, you collect your receivable, and of course the process repeats itself. The beauty of this type of facility is that as your assets grow the line of credit grows with you – you can truly say that you have unlimited financing.Asset based financing, or asset finance in Canada is highly specialized. Speak to a trusted, credible business financing advisor in this area to ensure you understand the options, and of course the benefits, of this unique and creative method of business financing.