The Key to Managing Personal Finance

Personal finance is something many people do not take very seriously. That is why so many people are fighting with debt problems. Personal finance is about keeping a balanced debt to income ratio and ensuring that expenses never exceed income. Personal finance is crucial to keeping a good credit record and maintaining credit worthiness.Personal finance starts with a budget. Every person should have a budget to track and mange their income and expenses. A simple budget lists all income and all expenses for a month. The bottom line of a budget is that the income should never be less then the expenses. Should the expenses exceed the income the person is going to have to cut back on expenses. They should start by cutting out non-essential expenses. This can be difficult, but for someone wanting to be serious about their personal loans, it is important. Budgeting takes a lot of self control and little sacrifice.The next step in finance is managing debt. Most people have some debt. Debt is essential for building credit. However debt should never become overwhelming. A person should make a list of all debt. The list should include the name of the creditor, the amount of credit, the amount of debt and the interest rate. If there is any debt problems they should be handled immediately.Next is credit. If a person is easily handling their budget and their debt then they can consider getting more lines of credit. However, if a person is not handling their debt and budget then getting more credit is out of the question. A person should also make sure they understand all of their credit obligations. This includes all terms and conditions.After a person has all of their personal loans in order they need to look them over. They should check to see if they are struggling with anything. If they are then they need to manage their finances to get them back in order. This may involve some credit counseling or debt consolidation. A person should be committed to whatever it takes to get their personal finances back in order, so they do not suffer damaged credit or financial difficulties.Now that a person has organized their personal loans, they need to manage them. Managing personal finance is about sticking to a monthly budget, keeping debt under control and not getting overwhelmed by credit. Management of personal finances is on going. A person has to review every month to ensure they are not over extending themselves or breaking their budget.Personal finance is an important topic. It is something everyone needs to think about and something everyone needs to control. Too often people let their personal loans get out of control. It is this that leads to debt problems and eventually financial difficulties.A person that controls their personal finance will be using their monthly budget, keeping up on debt and not over extending themselves credit wise. A good, well managed personal finance is going to produce someone who can afford their lifestyle and who benefits in the form of a good credit record.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?

An Anti-Aging Nutrition Supplement Diet With Vitamins, Minerals The Secret Of A New Body

An Anti-aging nutrition supplement diet with vitamins, minerals is the secret of having a more vibrant and healthy body so you can live life to its fullestUsing proper nutrition is an important part of anti-aging and it will also help promote great health and energy as well. Using the right type of anti-aging nutrition in your diet and taking additional nutritional supplements can actually help you take control of the aging that occurs within the body. While there are a variety of different anti aging medications, creams, and vitamins available that say they will help you not to age as quickly, believe it or not your nutritional diet is the most important thing when it comes to you combating the aging process.Eating foods that are high in ant aging anti-oxidants can help you keep the aging process from occurring as quickly and they will provide you with the energy you need as well. One of the main things to get in an anti-aging diet is plenty of fresh fruits and vegetables. Things that you may want to add into your diet include oranges, crisp carrots, delicious strawberries, and tasty broccoli. You will find that the most colorful fruits and vegetables are actually the ones that have the most anti-oxidants and vitamins in them as well.If you want to get the proper anti-aging nutrition, it is important that you have at least eight to nine servings of your fruits and vegetables every single day. Most fruits and vegetables actually do not have any fat or cholesterol, and they contain great nutrients, fiber, and only a few calories. Remember to choose the fruits and vegetables that have the deepest and darkest colors. You will find that spinach actually has more nutrients in it than lettuce and a sweet potato is better than a potato. Both the sweet potato and the spinach are actually richer in color. Keeping color in mind can help you pick out the best fruits and vegetables for anti-aging nutrition.Nutritional supplements for Antiaging At times it may not be possible for you to get all the anti-aging nutrients you need by your diet alone, which is where anti-aging nutritional supplements come in. You may need to add one of these supplements to your diet in order to get the nutrients you need. Some of the nutrients and vitamins that would be a good anti-aging nutritional supplements include Vitamin D, niacin, Vitamin K, all the B Vitamins, folic acid, zinc, iron, and even copper. Vitamin C is also important as well, and you will probably want to look for extra anti-aging nutritional supplements that have at least 1000 mg of Vitamin C as well. It is important to note that usually men and women have different needs when it comes to their nutritional needs. Women need to make sure that they get enough calcium in order to ward off osteoporosis and taking about 1000mg of Calcium a day is a good rule of thumb, and in some cases women may even need up to 1500mg a day. Men can greatly benefit from taking anti-aging nutritional supplements that have supplements to help the immune system, such as Vitamin C and Vitamin E, which can help them avoid getting prostrate cancer. When you are taking anti-aging nutritional supplements, drinking plenty of water is extremely important. Water is not only excellent for keeping your body young and healthy, but it helps to hydrate your body and also move the nutrients you are taking throughout your body as well. At least two liters of water should be consumed every single day. Drinking enough water can help keep your skin looking smooth, young, and healthy.Objectives of Anti-Aging NutritionThere are a variety of harmful toxins that are in the body that can cut short your lifespan. Eating foods that have anti-oxidants in them can help you get rid of these harmful toxins so you will live longer. Also when you eat an anti-aging diet you will also be able to enhance your energy and promote mental and physical mobility as well. Another objective of eating an anti-aging nutrition diet is to make sure that your body gets the minerals and nutrients that are needed. These will help make sure that the body is functioning as it should as well. While you need to increase the intake of good nutrients, you will also want to cut some things out of your diet as well, such as saturated fat, trans fats, and some red meats as well.Not only can you prevent much of the aging process by eating an anti-aging nutrition diet, but you can also help to prevent a variety of diseases as well. Eating the right diet can help you make sure that your immune system functions as it should and will also protect other parts of your body as well. Instead of spending a great deal of money on expensive products that claim they will help stop the aging process, why not just start a eating right, using anti-aging nutrition to slow down the aging process. It is much cheaper and a great way to keep your body healthy and happy.