Top 5 Considerations Startup Business
|Top 5 Considerations Startup Business Loans|
If you want to start your own company it will take a
little money to get started and on your feet. Banks put many things
into consideration when you ask them for money for startup business
loans. Here are five of the most important considerations when you
want money from a bank for a loan for your new company.
1.When you want to get money from a bank the first thing
they will consider with startup business loans is your credit. You
should have a healthy credit score that looks great. If your credit
is bad it tells a lender that you do not repay your debts and this
may stop you from getting a line of credit.
a big factor when you are hoping for startup business loans. You
should have years of experience in the line of work you want to
start your own business and you should be able to convince the bank
you are the right person to open the company. A bank may think you
have the best idea ever but if they do not think you are skilled
enough for the company to generate revenue or to manage the business
they will not lend you any money.
3.Assets are another
factor that lenders want to see. When you are trying to secure
startup business loans you should have some assets worth money that
the bank can secure if they feel they need it. If you have nothing
worth any value and you are asking for money to begin your own
business you will probably be turned away. Banks want to see you are
serious and when you secure assets with the money they know you are.
4.Gather some money down for the startup business loans. The
best way to show a lender that you are serious about your new
company is by having a healthy chunk of money as a down payment.
When you have 20% to 25% down payment for your startup business a
bank is more willing to talk to you. A good size down payment may
even make a bank look past your bad credit.
5.If all of the
factors above do not fall in your favor you might try and find
someone who can co-sign a loan with you. A lender will want to know
if you have someone who will back you that you are good for the
money. This person will need to have good credit but they can be
considered as a silent partner in your endeavors. In most cases a
friend or family member is the best person to ask to cosign startup
If you are looking for money for startup
business loans you should consider many things. A bank will want to
know that you are financially in a good position, qualified to run
the business, why the business will do well and many more things.
Securing a loan is important but you may need a down payment, good
credit, assets, or even a co-signer.
Forex Trading 6 Advantages
Over Other Investments
There are many different advantages
to trading forex instead of futures or stocks, such as:
1. Lower Margin
Just like futures and stock
speculation, a forex trader has the ability to control a large
amount of the currency basically by putting up a small amount of
margin. However, the margin requirements that are needed for trading
futures are usually around 5% of the full value of the holding, or
50% of the total value of the stocks, the margin requirements for
forex is about 1%. For example, margin required to trade foreign
exchange is $1000 for every $100,000. What this means is that
trading forex, a currency traders money can play with 5-times as
much value of product as a futures traders, or 50 times more than a
stock traders. When you are trading on margin, this can be a very
profitable way to create an investment strategy, but its important
that you take the time to understand the risks that are involved as
well. You should make sure that you fully understand how your margin
account is going to work. You will want to be sure that you read the
margin agreement between you and your clearing firm. You will also
want to talk to your account representative if you have any
The positions that you have in your account could
be partially or completely liquidated on the chance that the
available margin in your account falls below a predetermined amount.
You may not actually get a margin call before your positions are
liquidated. Because of this, you should monitor your margin balance
on a regular basis and utilize stop-loss orders on every open
position to limit downside risk.
2. No Commission and No
When you trade in futures, you have to pay
exchange and brokerage fees. Trading forex has the advantage of
being commission free. This is far better for you. Currency trading
is a worldwide inter-bank market that lets buyers to be matched with
sellers in an instant.
Even though you do not have to pay a
commission charge to a broker to match the buyer up with the seller,
the spread is usually larger than it is when you are trading
futures. For example, if you were trading a Japanese Yen/US Dollar
pair, forex trade would have about a 3 point spread (worth $30).
Trading a JY futures trade would most likely have a spread of 1
point (worth $10) but you would also be charged the brokers
commission on top of that. This price could be as low as $10
in-and-out for self-directed online trading, or as high as $50 for
full-service trading. It is however, all inclusive pricing though.
You are going to have to compare both online forex and your specific
futures commission charge to see which commission is the greater
3. Limited Risk and Guaranteed Stops
When you are trading futures, your risk can be unlimited.
For example, if you thought that the prices for Live Cattle were
going to continue their upward trend in December 2003, just before
the discovery of Mad Cow Disease found in US cattle. The price for
it after that fell dramatically, which moved the limit down several
days in a row. You would not have been able to leave your position
and this could have wiped out the entire equity in your account as a
result. As the price just kept on falling, you would have been
obligated to find even more money to make up the deficit in your
4. Rollover of Positions
futures contracts expire, you have to plan ahead if you are going to
rollover your trades. Forex positions expire every two days and you
need to rollover each trade just so that you can stay in your
5. 24-Hour Marketplace
futures, you are generally limited to trading only during the few
hours that each market is open in any one day. If a major news story
breaks out when the markets are closed, you will not have a way of
getting out of it until the market reopens, which could be many
hours away. Forex, on the other hand, is a 24/5 market. The day
begins in New York, and follows the sun around the globe through
Europe, Asia, Australia and back to the US again. You can trade any
time you like Monday-Friday.
6. Free market place
Foreign exchange is perhaps the largest market in the world
with an average daily volume of US$1.4 trillion. That is 46 times as
large as all the futures markets put together! With the huge number
of people trading forex around the globe, it is very hard for even
governments to control the price of their own