Asset Based Lending In the Capital Markets

A borrower might require an asset based loan to expand his/her business or to fund new acquisitions or mergers, or for a turnaround of his company or to stave away impending bankruptcy or even for the purchase of new plant and machinery. An Asset based loan is when a borrower avails of a loan against a borrowing base that is the assets that the borrower might possess at the time of the loan.

Asset based lenders can show more flexibility, while approving loans, since they have the borrower 's assets as collateral in case of any problem in recovering the loan amount and can also be flexible in the mode of repayment. material sold on credit, but payments not yet received, or even purchase orders or letters of credit from overseas clients. The term borrowing base implies all the assets of the business or company including real estate, existing plant and machinery, inventory and even the receivables of the company, i.e.

Borrowers should compare the cost of availing an asset-based loan with a traditional loan and also measure it against the benefits offered by availing the loan. But, whereas traditional lenders would advance loans against only fixed assets as collateral, asset based lending companies, not only advance loans against fixed assets, but also against receivables and they could also take future profits into account, which traditional lenders would not consider. Also, in a traditional loan, a borrower might just get a fixed amount, whereas in an asset based loan, the amount might vary as per the borrowers' current and future standing.

So, if borrowers have limited fixed assets, but show great future potential and have a healthy receivable report in their hand, then asset based lenders would be willing to advance bigger loans to them. Borrowers with huge orders from credit worthy clients or borrowers facing liquidity problems due to seasonal sales could also benefit from asset based lending. Borrowers have to submit regular details of the current status, not only of their property, but also of their receivables to their lenders as per their requirement.

However, the credit crunch especially in the US market has now put some strain on the traditional lending institutions, such as banks, since the inter bank liquidity crunch has now spread from the US to the UK and also to other European countries. With banks tightening their lending norms and the prices of real estate sliding southwards, this could turn out to be an advantage for asset based lenders, who could see more borrowers at their doorsteps. The problem is that the fixed assets, which are to be attached as collateral, are reducing in their market value on a day-to-day basis and this could affect both the lenders and the borrowers.

So, for medium to large corporations requiring capital for mergers or acquisitions, or even restructuring during these tough times, asset based lending groups can provide customized solutions, as per the corporations needs. However, if the borrowers' receivables are healthy and if his business shows future potential, then an asset based loan is a better option to the now strictly monitored traditional loan.

So, whatever the sector, asset based lending companies can tailor make a suitable loan to suit any corporation or companies or businesses and these tough times may see them veer away more from the strict rules of lending banks to a more flexible asset based lender.

Common Manipulations Of Consumer Investors

Dont be scammed out of your money read this article and avoid the pitfalls. The process of manipulating potential investors to scam them out of their money has followed the stock market into the 21st century and online. The process requires a lot of misinformation out there regarding investing in the stock market and in reference to specific stocks.

This has enticed many people to give investing a try even if they have no idea what theyre doing. Online brokerages have revolutionised the investing industry.

Pump And Dump 1.

In this scam, you are misled about the projected earnings and growth of a company. Uninformed investors purchase the stock. The price tends to rise, and as it does, the original scammers sell the stock off to new uninformed investors and take the profits. Once all the hype drives up the price high enough and the accumulation pressure disappears, the stock crashes and the investors lose money.

2. Avoid Penny Stocks

Penny stocks are stocks less than $5. 00 in value. The reason they are so low is because the company is probably going bankrupt. To avoid the majority of these scams, avoid investing in penny stocks. The hype associated with pump and dump scams is similar between scams. The fake press releases and research reports always tout the given company as being on the verge of a world changing technology, cure for a disease or fantastic new product. The focus is always on the glorious future of the company, but very little information is given about the current status of the company in question.

3. Rumors

The second type of stock market scam is characterized by rumors and traders tricks. Manipulations of stock price can be achieved in subtle ways. Money managers have the ability to start rumors about stocks that they would like to move without paying a large price. The rumor works to lower the price of the stock and create liquidity in that company (TM)s stock. The rumors run unchecked and spread through the market like wildfire.

For example, if a money manager wants to purchase some stock in Company A, they can start a rumor that the company is on the verge of bankruptcy. This lowers the price of the stock and allows the manager to purchase it at the desired rate. This works in the opposite way as well. If the manager wants to sell stock for Company B, a rumor can be started about an emerging invention from that company in order to inflate the stock price. These subtle attempts at manipulation can be the hardest for investors to spot, and therefore the most difficult to avoid. Since rumors are part of the business of the stock market it is hard to track down where the rumors started.

Additionally, there is no paper trail to track down the money managers who practice this sort of manipulation. Fortunately, these inflations or devaluing of stocks are very short lived. Within a short period of time the rumors are proved untrue and the stocks bounce back to their true value. These schemes fortunately never have any long term impact on the market. Maintaining a long term investment focus of owning good companies for long periods of time will offset any of these manipulative rumors.

Manipulation 4.

Having a diverse portfolio of stocks can surely save you from losses that would otherwise hurt you financially. Cheaters and manipulators exist in every industry, and are especially concentrated in an industry that is full of money like the stock market. If you want to play with the big boys, you have to be able to take a little bit of risk when you invest.

Seven Tips to Get the Money You Want

That was 3,000 years before Christ. According to Brian Tracy 's book "The 100 Absolutely unbreakable laws of business success", this law was discovered since the old Egyptian era. I was deadly wrong. May be it was found a few decades ago.

I thought that the law of attraction was discovered a few years back.

Instead, evil mind came from the infatuation of money. The evil mind does not come from money. Although many people do not want to emphasize on money since many relate money with evil mind. In this article, we will talk directly toward money.

Here are the seven steps to make money including:

1. Know how much money you want and at the certain point of time. Although most people want money, not many people gladly accept that they do things for money.They do not want to accept that their biggest aspirations is becoming a rich person.

If you do not accept that, you will not have a chance to earn the money you want. Make decision to accept that you want money and specify how much money you want. Once the number is up, you will now have the target to achieve.

2. Evaluate your current status. You need to appraise on yourself before you decide to go for a plan for attracting money. You should do the appraisal on not only how much money you have at the moment but also on your ability to make the money. Do you need to acquire any additional skills? At the current status, what you need to learn more so that you can qualify earning such amount of money. How long do you need to prepare yourself to this? Write down your status quo so that you know your starting point.

3. Know how you would acquire that amount of money. You certainly have certain skill to earn money. However, we need know in what will be the most possible way to work for until you get that amount you want. Most of the people do not see in what way they are going to make it. You may not know it now but it is your job to find it out. Once you find out, you will stick to it until you achieve your goal.

4. Create your future plan. Draw up a plan. The result comes from actions. All you need is the activity plan so that you can do something. Write down your plan and pursue it. Make plan to earn, to save, and to invest properly during the assigned period.

5. Fill in the blanks. Along the way of your money making plan, we may not have full information on what the circumstance will be. You may need to add that by yourself when time comes. Fill in the blanks in your plan. Adjust the method according to the situation. Once you get more information, come back to your plan and make sure that you have the right puzzle for your game plan.

Regular visualization will help you achieve results faster according to the law of attraction. See the pictures as if it is real. What you can contribute to others.

What you are going to give out? What you are going to buy? Visualize what you will be like if you have achieved the amount of money you want. See yourself as already a successful person.

Visualize yourself in Success. 6.

Being flexible on your approaches will help enable you to finally get the money you want to make. You must know your progress so that you can decide if you should continue or you should change your approach. There must be some area that you are not excel in and you may fail in some steps. Revision is a very important step to follow since you will not be successful on everything you do.

Review your plan every month. 7.