Being in the business of providing professional financial and business advice means we come across all types of success and failure cases. Statistically speaking, for every one great financial success story, there are at least 5 financial failure stories. What is hurting is that, every one of these failures could have been avoided if the business owners had been a little bit more diligent while taking the loan to start the business or domestic venture.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
PACKAGE FOR RESIDENTIAL OR BUSINESS
PACKAGE FOR RESIDENTIAL OR BUSINESS
Being in the business of providing professional financial and business advice means we
come across all types of success and failure cases. Statistically speaking, for every one great
financial success story, there are at least 5 financial failure stories. What is hurting is that,
every one of these failures could have been avoided if the business owners had been a little
bit more diligent while taking the loan to start the business or domestic venture.
Our own in-house research indicates that the 75%
of failures occur either because the business
owners failed to correctly calculate the quantum
of finance required and therefore the business
floundered soon after take-off or, the business
owners over-estimated the revenues and profits
from the business venture and therefore fell
behind on their payment schedule resulting sadly,
in the premature closure and bankruptcy.
The other 25% failures occur because of wasteful
expenditure. Flush with funds, we've seen
unplanned, non-revenue earning expenses. This
latter group are seen more amongst non-business
folk who obtain a financial loan for purchase of their first home. Part of the money is used
to buy furnishings, luxury fixtures, install an unplanned swimming pool for example, and
so forth – things that were not in the list when they computed the amount of loan required.
Soon the initial corpus runs out and they need additional financial assistance. Now unless,
the homeowner is due for a big fat financial windfall, he or she will likely fall back on the
repayment schedule and it would be a painful downhill journey from there on.
In both cases, while it is obvious that financial discipline is vital, it all begins by knowing
with a high degree of accuracy, two very simple figures; what our repayment capacity is
and, how much cash to borrow. Note the sequence – figuring out the repayment capacity is
vital and that should be the first figure you derive. The how- much-to-borrow part depends
on the first figure and of course, reason for the borrowing – there's no point in borrowing
more just because you can after all, there's a cost involved to it.
HOW TO SELECT THE CORRECT FINANCE
You might think figuring out your repayment capacity is as easy as subtracting your
expenses from your income. You would be only partly correct because there's more to it
than that. There's a scientific way this is done and an expert will ask the right questions
and plug-in every possible expense that might or is likely to occur during the tenancy of the
loan. He will add a percentage for contingencies – a percentage that differs from individual
to individual and business to business.
So, when it comes to figure out how much to borrow and repayment capacity, it is best you
talk to the experts in the field, experts such as http://business-adviser.com.au/. You would
be surprised how little it costs to get the right financial advice.
In fact, these finance gurus can not only accurately work out your financial borrowing and
repayment capacity for business or personal use, they can due to their constant interaction
with financial institutions and banks, point out the best financial package for residential or
business loan finance. Get it right and you won't have to regret anything later.