Low Interest Rates Don’t Spur Growth Unless Small Businesses Can Partake

What a great time to start a business, you can get the money cheap and interest rates are at a rock-bottom price. Unfortunately they probably aren’t available to you, it is just like buying a home these days, no longer can you get super low interest rates with zero down, those days are over. Not long ago, someone came to our think tank with a brilliant business plan, one which was so good, I had considered suggesting it to my friends who are Angel investors, or pitching it to other acquaintances who are venture capitalists.

The young man and his team wanted to get cheaper money, they wanted to borrow it at the low interest rate, and because the idea was so good, and their economic prospects completely viable, they wanted to build their business themselves, and keep the equity. Who could blame them? And yes, they would be slightly disrupting a particular industry sector, but at the same time they would be bringing new innovations which would be widely received by both consumers and corporate clients.

Only one problem with this, the chances of them getting a business loan aren’t that good, nobody on their team has much in the way of assets, although they are laden with student loans. It’s a smart group, they know what they’re doing, and they are willing to work hard in the startup. The business plan is sound. Still, from a realistic economic standpoint, even with these low interest rates, we are not going to spur growth in the US until small businesses and startups can partake in such loans. This company in my case study here cannot grow, cannot hire more employees, and can barely get off the ground without an infusion of cash, whether it be from a loan or another source.

A good illustration of this point perhaps was best stated on June 19, 2012 in the Wall Street Journal article “Fed Wrestles With How Best To Bridge US Credit Divide,” by Job Hilsenbrath, however in his article he discussed the challenges for the middle class for buying cars, home upgrades, or helping out during transitions in employment or being slightly under employed temporarily. One person in his article stated; “you can get money all day long, if you don’t need the money.”

Therein lies the real problem. Am I for expanding the SBA loan program? Actually, I am not because as a former franchisor I learned about all the hoops companies had to go through, and the types of loans the SBA was willing to make, and the conditions they put upon those businesses. They really aren’t that good of a deal.

It seems as if the government hopes that small businesses will expand their current businesses and take out SBA loans, but anyone who is in business who needs the money to stay in business, or to grow, probably doesn’t want to take out any more loans and get themselves in more debt right now. Those companies that are doing quite well, those that don’t really need the money, well, there is plenty of cheap money out there without having to deal with all the red tape and the SBA. Okay so, I hope you will please consider all this and think on it.

Funding College by Trading Weekly Options

The cost of education, just like everything else, has gone up significantly in the past few years, and students are finding it increasingly harder to get a quality education without putting themselves in debt of thousands of dollars. Elite universities are nearly unaffordable for most, and scholarship programs are failing to meet the needs of the students who require financial aid to pursue further studies. In such a time, I found myself with twin daughters who were all set to start college, but with no substantial savings on my part that would cover their tuition fees. I felt it was my responsibility to provide my daughters with an education that they chose, and that was when I discovered about daily options trading. A close friend of mine introduced me to options trading and told me that it could help me in this regard. So, I jumped at the chance.

Master the basics of trading weekly options in a short time

Trading weekly options is an art. You can master this art in a short time and with little effort. There are programs available which you can utilize to quickly learn the basics of trading. The more you learn about weekly options, the better prepared you will be to handle the trading. There are several webinars offered that you can use to gain expertise over options trading, and you can join any such program to quickly become an expert options trader. If you are truly interested in becoming an expert weekly options trader, then joining a premium course that teaches trading weekly options is one of the fastest and efficient ways to accomplish this.

Handle your college expenses and start your life debt free

Student loans make it very difficult for fresh graduates to start their professional careers without any hassle. The loans severely limit their options and may even force them to compromise with their career choices. Become a weekly options trader and you will have plenty of expendable money that you can use to finance college for your children.

By learning trading options, you can ensure a loan free future for your child. The extra income with options will be enough to secure the funding for college fees and expenses. Even part-time trading income with options will significantly improve your financial condition. This will give your children a chance to pursue their studies without thinking over financial problems all the time. Quickly learn how to trade weekly options for maximum profits and you will never have to rely on anyone for the college education of your children. Become a weekly options trader now and carve out a brighter future for your family.

Are Payday Loans Part of Your Relationship With Money?

Your relationship with money is often a result of how your parents treated their own money. Some young adults picked up bad habits and never learned to understand the negatives of credit card usage. For those of you looking for help from your local payday loan provider, you are probably experiencing one of the side effects of not understanding how credit cards will affect personal finances.

*Credit cards play a big part of credit scores. Good management and longevity are two key factors.

- Pay creditors on time.

- Leave less than 30% of credit limit as a balance transferred to the following month.

- Don’t cancel old accounts unless absolutely necessary.

- Use all cards in rotation. Make a small charge and pay it off. Use a different card each month to keep them active.

These lessons are rarely learned until it is time to climb out of a pile of unaffordable debt.

* Know the interest rates. If you do have to make a purchase and you know that you will not be able to afford to pay it off in full right away, use the credit card with the smallest interest rate. This action will save you money in the long run.

* Each time you apply for a credit card, the creditors do a hard inquiry into your credit history. This action leaves their calling card so every other company that has permission to look at your credit will know. Too many calling cards make you look desperate for cash. A hard inquiry will also take a point or two off of your credit score.

* Have a usage plan. Will you dedicate one card to gas and another for food? Will you set charge limits in order to maintain payoffs at the end of the month?

* Don’t bank of minimum payment affordability if you charge large or multiple purchases to run up your debt.

* Credit challenges create many personal finance problems.

- Interest rates increase

- More income used to pay interest charges and less towards principle

- Diminished chances of help from banks, credit unions and other creditors

- There are greater chances of needing payday loan providers or car title lenders when money emergencies occur.

When a child see their parents use credit cards for all their shopping trips and dinners out to restaurants, they do not get a proper introduction to money management.

They rarely see actual cash. Household budgets are not often explained and living within their means is a foreign subject. Children who always got whatever they asked for or never heard the explanation as to why their parents said ‘no’ may not have the best understanding of wants and needs.

Payday loan lenders see many people every day, some have children alongside. They come looking to get fast cash so they can get their groceries, buy gas for the car or even pay the rent. These are the lessons taught to some young children.

No matter if you pay cash, use credit or find an alternative loan, children need to start learning the basics of income in verses money out.

We need our younger generation to grow up respecting the value of money and have the tools to secure their finances early on. Don’t you want your child have low interest money opportunities when they are truly needed? Don’t you want their income to support their basic needs rather than depending on a payday loan provider or credit cards to make ends meet? Start discussing money early on. Teach your children the difference between wants and needs. Most importantly, don’t forget to include:

- Credit cards will cost money if not paid off right away.

- Examples of good money choices.

- Correlation between income and lifestyle.

- Bad money management increases cost of loans and limits choices of lenders.

- Real life examples of how they can turn a bad money situation around no matter how hard it is.