Bad Credit Car Loan Vs Guaranteed Auto Financing – Will You Save Money?

You’re in the market to buy a new car and that’s great. Today most everyone buying a new vehicle will need some form of auto financing and if you find your personal finances or credit are less than perfect, you can still get a very affordable car financing if you know how.

An informed car buyer is a smart car buyer. When you know your auto financing options and you have your car financing set up and approved before you talk to any sales person, you can walk into a car dealership and negotiate a better deal on your terms without feeling intimidated, regardless of your financial situation.

If you know that you have certain credit challenges, you should understand the differences between bad credit car loans and guaranteed auto financing.

Bad Credit Car Loans…

Bad Credit Car Loans typically have been available through new car dealerships on the purchase of a new car or a pre-owned certified used vehicle. The actual auto loan financing paper-work is handled at the dealership but in general, the bad credit car loan finance contract is sold off to another lender. That lender will maintain and service your loan. Loans typically have a term of 24 months up to 60 months. The downsides to a bad credit car loan are that many franchise car dealerships are not set up to arrange these type loans in-house, interest rates and cost can vary widely and limit your auto purchase choices.

Guaranteed Auto Financing…

Guaranteed Auto Financing differs from a bad credit car loan primarily in that this type financing is offered directly by smaller or independent auto facilities. Your finance contract is provided by the actual auto wholesale dealer and the loan is paid directly to the auto dealer that sold you the car. In other words, you would be financing your car purchase from the company that owns it and sold you the vehicle. Guaranteed auto financing is used for the purchase of used or pre-owned vehicles and not typically for purchasing a brand new car or truck. Loan terms are shorter than more conventional auto loans and they rarely offer terms over 36 months.

The big advantage to guaranteed auto financing is that often no credit check is required to obtain this financing. Payments are normally made weekly and sometimes in person. One disadvantage to this type of auto loan is that many car dealers providing guaranteed auto financing will never report your credit to the credit bureaus. So if you’re making payments regularly and establishing an excellent payment history, this will not be reflected in improving your personal credit profile or your credit score.

Your best approach would be to start now and see what financing options are available for you. There are excellent specialized auto financing services available online today that offer a whole range of affordable car loan programs even if you’ve been turned down for financing or you have poor credit, bad credit or other financial considerations, you’ll be surprised at how they can help you to buy a new car.

You see now that there are major differences between a bad credit car loan and guaranteed auto financing and there are other financing options besides these. Get approved for the best car loan for you first, then walk into the car dealers and negotiate on your terms.

read the info for a dependable seller that will give you the gold dealers you're looking for quickly and easily. Learn more about day trading daytradingacademy at http://daytradingacademy.com

6 Mantras to Help You Attract Money Now

What is the money making secret?

When you don’t know what you don’t know, knowledge is only powerful when applied. Most people have a hard time parting with money, but want financial freedom. As the saying goes, it takes money to make money. As an entrepreneur, you need to be willing to invest in yourself and your business; both personal and professional development.

There is nothing wrong with having the desire to have more money. There will always be those who say money is the root of all evil, but realistically we all need money to survive and to maintain our livelihood. The love of money is what makes it the root of all evil. When you look at the money you hold now as only a means to create access for you, parting with it will become more logical and purposeful for you.

Having the right attitude about money and the access it brings, attracts more money. And access is what will elevate your brand and take your business to another level. And if it requires an investment on your part, you’ll be more open to receive the information and apply it accordingly. Remember, you don’t need money to attract money.

You can’t deny the fact that money opens doors and create transformations, and at the end of the day, that is what can lead to your financial freedom and provide incredible leverage. Developing the right mindset, will help you get there!

Let’s start with your thought process

Having the right frame of thinking is critical and there is a distinction between the strategies to make money with your business as there is with having money in general.

There’s no secret to it but there is particular mind frame to have when it comes to understanding the importance of how you think and feel about money as well how you earn it. Having a back-door way of thinking on making money may put a few dollars in your pocket, but that doesn’t guarantee you will become “un-stuck” if you’re not mentally operating like you’re wealthy. Being rich and being wealthy are two completely things.

Feeling and thinking from a wealthy standpoint and taking action is the only way to start. Having a mantra in place is a great way to create transformation in your life.

Mantra #1: “I hold myself accountable for my financial success.”

While success leaves clues and you don’t have to reinvent the wheel, it is up to you to make the necessary changes to put yourself in the right position to attract and create wealth. Just how major corporations and companies have standard operating procedures and manual processes to follow, the same applies with your process. If there are gaps or a disconnect in your operation, identify what needs to be modified and keep it moving. There is no room to place blame on anyone else.

Holding yourself accountable and taking action to fix what needs to be fixed, increases your power and accelerates your drive on the path to your desires. If you want things to change in your life, you have to change some things in your life.

Mantra #2: “I gain knowledge on making money from wealthy people.”

Be very mindful who you take financial advice from. If the person is not currently in a position financially where you want to be or have no proven results, then you do not need to bear their fruit. Always consider the source.

Wealthy people take advice from people who have more money than they do. They also continually learn and advance their knowledge about money, business, and investing. Take time to learn from those who know, pick one area, and then get started.

Honestly, wealthy people take advice from those who are in a more financial position than they themselves are. The same goes for their continuing education and knowledge of business, making money and investing. Learn from others who are in the position you want to be in. Check the ego at the door and take notes. Eagles fly with other eagles.

Mantra #3: “I am in the game to win.”

One of my favorite quotes is: “If your dreams don’t scare you, they’re not big enough.”

When you set the tone of what goals you want to accomplish in your business and the benchmarks you’ve set for yourself, don’t play small.

Don’t just play the game and run the clock. Get fired up and tell the coach (your mindset) to put you in the game. Cruising in the money lane you’re in now is not going to get you where you desire to be. Push the pedal to the max and go big or go home. When you show up, you go up!

Mantra #4: “I don’t compete, I create.”

This is my favorite. There is a shift that happens when the once dull vision of the mind’s eye is sharpened. Unplugging from the matrix, you begin to see opportunities all around you and they are limitless. You begin to see things much more clearly and differently than from the norm.

Even with the current economy, there are still documented millionaires reported on paper monthly. Ironically, there is no better time to take action than right now. The recession would end much quicker if you’re mind wasn’t in one. Find a way or make one!

Mantra #5: “I receive money in business I deserve.”

In life, you don’t always have to be meek and modest to accept compliments. A person should feel just as good receiving a genuine compliment as just as the person giving the compliment feels.

The same applies in business. Own the fact that you are providing a service or product that will serve and help your client or customer and feel good about your rates or price and don’t apologize for charging for it.

Mantra #6: “I am responsible with my money.”

Only when you can manage your money in a way that is responsible, will you attract more. The right motivation should be to learning to love how well you manage your money, no matter how much or how little and you will see more financial gain.

A nice spreadsheet to keep organization with your bills and any debt can go a long way. Ignoring the bills or deciding to pay at the last minute won’t help or serve you in any way. It doesn’t have to be overwhelming because again, it’s all about having the right mindset and how clearly you see things being mapped out for you. Whichever ones you see can be paid the fastest, do that.

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?

How to Get Used Car Finance

Many financial institutions are now offering used car finance. Before anyone can go out looking for a deal, it is important to understand what this type of finance entails. Generally, there are two types of financing offered by financial institutions in this area. First, there is the unsecured finance and the secured finance, which uses the car as collateral. The financing is usually offered with a repayment period of five to seven years. However, the term can be shortened depending on the age of the car you are purchasing. Actually most financial institutions do not offer financing for cars, which are older than seven years.

Why finance the purchase of on old car?
It can be a good option to go for an old car if the new one is out of reach in terms of the price with relation to your income. It might also be a wise decision to buy a used car in order to save your self from the automatic depreciation that occurs once you get the vehicle from the dealership. In all these cases, you will need financing, as the cost of the cars is usually high that most of us have in cash.

When you want to finance the purchase of an old car, you still need to go through the formalities of a normal loan. This means there are certain areas you need to work on. First, you have to check the status of your credit score. Credit scores can be easily obtained online once per year free. This will make it easier for you to know your score before approaching the lender. The next step is to know how much money is required as down payment. The more you can avail, as down payment will result in higher savings on the loan’s interest. Finally, you will need to check the interest rates offered by different financial institutions. Lower interest rates will results in huge savings in the long-term.

Comparing different used car finance option
There are different lenders offering used car financing out there. All these have different policies and finance packages. It is important to compare different financiers in order to get the cheapest option. There are many ways, which you can use to compare used car finance. However, the easiest and most accessible way is through comparison websites such as Get Approved Finance or E-Car Finance.

The comparison websites usually look at different options provided by different institutions taking into consideration the loan repayment time, the duration it will take before approval, interest rate, loan terms and loan company fees. They will also establish if you get fee breaks if you are able to complete payment early. All these factors are very hard to compare on your own. Finally, the comparison websites provide you with information on all the extras offered with the loan such as car insurance, disability, unemployment and death credit protection. This will ensure that you have the best, used car finance option without considering the interest rates only.