July 31st, 2009 | Insurance |
Getting an online motorcycle insurance quote is very convenient, but the online motorcycle quote that you get may not be accurate. You may be in for a surprise if you don’t carefully check the information that you send in for the quote, and check the information you receive when you are given a quote.
Start with the information that you are supplying on the form. If you omit any information, or if you get any information wrong, the quote that you receive will not be accurate. You need to remember that this is just a quote. You are not applying for the insurance, and by supplying wrong information, or omitting information, you won’t be doing yourself any favors.
You cannot fool the insurance companies. Omitting information will not get you a lower rate, because when you actually apply for the insurance, the insurance company will get a copy of your driving record, and possibly a copy of your credit report as well. They may require pictures of the motorcycle, or they may require you to bring the motorcycle to an agency for inspection. If you’ve omitted any information – whether it was on purpose or on accident – the insurance company will find out during the application process.
Most online quote sites don’t allow for discount information. In other words, if you are eligible for specific discounts, you won’t see those discounts when the comparisons are done. You will need to contact the insurance companies for a more accurate quote that includes your discounts.
After you get your online motorcycle insurance quote, call the insurance companies for a more accurate quote, and apply for the insurance over the telephone if possible, as opposed to applying online. This way you can be sure that you are getting the most accurate quote possible.
July 30th, 2009 | Credit Lending |
But as companies confront a tight credit market coupled with lower than expected results, many CFOs are viewing asset based lending as a viable option in the financing tool kit. Even successful companies with strong banking relationships can quickly fall out of favor with lenders and lose access to unsecured financing, especially if they’ve shown recent losses. A few bad quarterly results doesn’t necessarily mean that a company is in bad shape, but stringent bank underwriting parameters can cause existing loans to be called and prevent the firm from qualifying for new financing. A company facing such a scenario can use asset based lending (ABL) arrangements as bridge loans to pay off banks and provide liquidity until bank financing is achievable.
What is asset based lending?
An asset-based loan is secured by a company’s accounts receivable, inventory, equipment, and/or real estate, whereby the lender takes a first priority security interest in those assets financed. Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank’s comfort level. These assets typically have an easily determined value. The financing can take the form of loans to revolving credit lines to equipment leases and can range from $100,000 to $1 billion, depending on needs and circumstances.
How can ABL be a beneficial financing option?
Acquisition
To grow a business, a company may look to acquire a strategic partner or even a competitor. Asset-based financing is often an efficient means to obtain funding for business acquisitions.
Turnaround Financing
Turnaround financing is often used by under-performing businesses that are not achieving their full potential. In some cases, it is used for businesses that are either insolvent or on their way to becoming insolvent. Asset-based lenders are accustomed to the bankruptcy process and asset-based financing is ideal for turnarounds because of its flexibility.
Capital Expenditures
Capital expenditure is the money spent to acquire and/or upgrade physical assets such as buildings and machinery. Capital expenditure is also commonly referred to as capital spending or capital expense.
Debtor-in-Possession (DIP) Financing
Debtor-in-possession (DIP) refers to a company that has filed for protection under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization. A DIP company can still obtain loans–but only with bankruptcy court approval. DIP financing, which is new debt obtained by a firm during the Chapter XI bankruptcy process, allows the company to continue to operate during a reorganization process. Asset-based lenders also provide exit financing or confirmation financing to companies coming out of bankruptcy.
Growth
Typically, as a company grows so does its need for financing. Also, as a company’s collateral grows, its assets can strengthen its ability to borrow. An experienced and creative asset-based lender can assemble a credit facility that can scale to grow with a company.
Recapitalization
Recapitalization is the process of fundamentally revising a company’s capital structure. A company might recapitalize due to bankruptcy or replacing debt securities with equity in order to reduce the company’s ongoing interest obligation. A leveraged recapitalization typically achieves just the opposite–by taking on a material amount of debt, the company increases its ongoing interest obligation but is able to pay its shareholders a special dividend.
Refinancing/Restructuring
When a company enters or exits a growth stage, refinancing or restructured financing may be key to creating a capital structure that better meets the needs of the company. This type of financing is often used for market expansion, completing an acquisition, restructuring operations, or following a successful corporate turnaround.
Buyout
A buyout is the purchase of a controlling percentage of a company’s stock. In a leveraged buyout (LBO), the acquiring company uses the minimum amount of equity to purchase the target company. The target company’s assets are used as collateral for debt, and its cash flow is used to retire debt accrued by the buyer to acquire the company. A management buyout (MBO) is an LBO led by the existing management of a company.
What are the advantages to ABL?
July 20th, 2009 | Mortgage |
There are many different types of mortgage and the trick when it comes to refinancing, purchasing a home, or getting any type of mortgage is finding the best mortgage deal for you and your situation. There is a lender out there that has the solution to your issue, and you just have to know how to find this lender so that you can use them to accomplish your current goals.
The first place you can start is with your current mortgage company and get a quote from them in writing. Sure this will not be true if you are trying to purchase a home unless you currently own one, but if you are looking to refinance, take out a second mortgage, or get a home equity loan, then starting with your current company is a great way to go.
The second place you should look for the best mortgage deal for you is right online. This is a great way to do some very quick and easy comparison shopping. You will want to know how much your home will appraise for and how much you currently owe on it. This is important because if you have these numbers wrong then any online quotes you get will also be wrong.
The last place to look is with a mortgage broker. This is not a bad option, but you usually pay a little more in fees because this is a service they are going to provide you. They will search through numerous companies for you and help find the right deal that fits you perfectly. They will help you get exactly what you are after and will do most of the leg work for you.