A Closer Look at Online Business Companies

With innovation and globalization continuing to grow at a faster pace, more and more people are discovering how establishing businesses has become easier through the Internet. And this is why many online business companies that cater to different industries have flourished in a matter of two decades or even less. These companies are owned by a variety of people from different parts of the world, whose potential clients include anyone within the realms of the worldwide web or online community.Online companies are usually not very different from those that are traditionally known as corporations or institutions that function using a certain hierarchy or organizational system which delivers products and or services to its clients. The only difference of course is that online companies do most of their businesses online, and this has allowed company owners – mostly entrepreneurs to conduct businesses with minimal costs. This is because with internet businesses, it is possible for a person to handle everything on his own and make profits without having to establish a physical structure as his or her office. Wherever there’s internet connection, there is opportunity – and there is business.There are a variety of online business companies today. There are job placement agencies, retail stores, publishing companies, medical corporations, research companies, educational institutions, and many others. The basic component of each of these web businesses is their website with which they advertise their products and services and reach out to their clients. Note that while there are a lot of opportunities available for these companies, there is also a lot of competition. For this reason, online companies continue to think of innovative ways on how to promote themselves online, using video marketing, pay per click advertising, vertical directories listing, writing blogs, participating in forums, business listings, getting business reviews and even social bookmarking and podcasting.It is also undeniable how online businesses consider the tenets SEO or search engine optimization when they promote their business. By understanding that websites need to adjust to the dynamics of search engines, they are able to do the necessary changes in order to help or maintain their popularity standing in search engines.It is interesting how online businesses give way to creating more online businesses. For instance, existing online retail companies, together with many other companies of a different nature may rely on internet marketers which could present themselves in the form of individuals, groups or institutions that do a fine job in promoting an online business.With an increase in interconnectivity and immediate information dissemination are more flexible ways of communicating, relating and sharing. Yet, although the business landscape appears to have changed, the same kind of people make it big in the online business. Even with a few resources to begin with, online businesses could flourish when owners don’t just work hard but also work smart. Needless to say, those who have an eye for innovation, a passion for providing for needs and a heart for risk-taking and adventure are those who make it big in online business companies today.

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Can You Sell Seller Financed Notes?

In recent years, the economy has forced some sellers to get creative in their efforts to sell their property. Banks have become much more stringent with their lending policies recently, and this has resulted in many potential buyers running into difficulty in obtaining financing. The result is that more and more sellers have taken the initiative to finance their buyer’s loan themselves. Most sellers initially list their property for sale with the goal of getting a lump sum of cash at the closing table. However, if you had to offer seller financing to get your property sold, you likely now find yourself in the position of accepting monthly payments from your buyer rather than having that lump sum of cash in your bank account. The good news is that there are companies that will buy this note from you and give you a lump sum of cash in return.Seller financed notes have often been negotiated to between the buyer and seller, and may include term for a period of 10 to 30 years. They may have been structured to include a balloon payment or they may feature a special interest rate. Essentially, the buyer and seller structure the loan in a way that works well for both parties. When you approach a company to buy this loan from you, the company will analyze the terms of the loan. Some companies will only make an offer to purchase the loan if the loan terms have been structured in a specific way. For instance, some companies will only consider buying loans that do not have a balloon feature or that are amortized over 30 years. There are other companies, however, that will consider buying more creatively structured seller financed notes. Each company that buys such notes considers different loan criteria, so it is beneficial to shop around before you commit to an offer to purchase the loan.

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Car Finance – What You Should Know About Dealer Finance

Car finance has become big business. A huge number of new and used car buyers in the UK are making their vehicle purchase on finance of some sort. It might be in the form of a bank loan, finance from the dealership, leasing, credit card, the trusty ‘Bank of Mum & Dad’, or myriad other forms of finance, but relatively few people actually buy a car with their own cash anymore.A generation ago, a private car buyer with, say, £8,000 cash to spend would usually have bought a car up to the value of £8,000. Today, that same £8,000 is more likely to be used as a deposit on a car which could be worth many tens of thousands, followed by up to five years of monthly payments.With various manufacturers and dealers claiming that anywhere between 40% and 87% of car purchases are today being made on finance of some sort, it is not surprising that there are lots of people jumping on the car finance bandwagon to profit from buyers’ desires to have the newest, flashiest car available within their monthly cashflow limits.The appeal of financing a car is very straightforward; you can buy a car which costs a lot more than you can afford up-front, but can (hopefully) manage in small monthly chunks of cash over a period of time. The problem with car finance is that many buyers don’t realise that they usually end up paying far more than the face value of the car, and they don’t read the fine print of car finance agreements to understand the implications of what they’re signing up for.For clarification, this author is neither pro- or anti-finance when buying a car. What you must be wary of, however, are the full implications of financing a car – not just when you buy the car, but over the full term of the finance and even afterwards. The industry is heavily regulated in the UK, but a regulator can’t make you read documents carefully or force you to make prudent car finance decisions.Financing through the dealershipFor many people, financing the car through the dealership where you are buying the car is very convenient. There are also often national offers and programs which can make financing the car through the dealer an attractive option.This blog will focus on the two main types of car finance offered by car dealers for private car buyers: the Hire Purchase (HP) and the Personal Contract Purchase (PCP), with a brief mention of a third, the Lease Purchase (LP). Leasing contracts will be discussed in another blog coming soon.What is a Hire Purchase?An HP is quite like a mortgage on your house; you pay a deposit up-front and then pay the rest off over an agreed period (usually 18-60 months). Once you have made your final payment, the car is officially yours. This is the way that car finance has operated for many years, but is now starting to lose favour against the PCP option below.There are several benefits to a Hire Purchase. It is simple to understand (deposit plus a number of fixed monthly payments), and the buyer can choose the deposit and the term (number of payments) to suit their needs. You can choose a term of up to five years (60 months), which is longer than most other finance options. You can usually cancel the agreement at any time if your circumstances change without massive penalties (although the amount owing may be more than your car is worth early on in the agreement term). Usually you will end up paying less in total with an HP than a PCP if you plan to keep the car after the finance is paid off.The main disadvantage of an HP compared to a PCP is higher monthly payments, meaning the value of the car you can usually afford is less.An HP is usually best for buyers who; plan to keep their cars for a long time (ie – longer than the finance term), have a large deposit, or want a simple car finance plan with no sting in the tail at the end of the agreement.What is a Personal Contract Purchase?A PCP is often given other names by manufacturer finance companies (eg – BMW Select, Volkswagen Solutions, Toyota Access, etc.), and is very popular but more complicated than an HP. Most new car finance offers advertised these days are PCPs, and usually a dealer will try and push you towards a PCP over an HP because it is more likely to be better for them.Like the HP above, you pay a deposit and have monthly payments over a term. However, the monthly payments are lower and/or the term is shorter (usually a max. of 48 months), because you are not paying off the whole car. At the end of the term, there is still a large chunk of the finance unpaid. This is usually called a GMFV (Guaranteed Minimum Future Value). The car finance company guarantees that, within certain conditions, the car will be worth at least as much as the remaining finance owed. This gives you three options:1) Give the car back. You won’t get any money back, but you won’t have to pay out the remainder. This means that you have effectively been renting the car for the whole time.2) Pay out the remaining amount owed (the GMFV) and keep the car. Given that this amount could be many thousands of pounds, it is not usually a viable option for most people (which is why they were financing the car in the first place), which usually leads to…3) Part-exchange the car for a new (or newer) one. The dealer will assess your car’s value and take care of the finance payout. If your car is worth more than the GMFV, you can use the difference (equity) as a deposit on your next car.The PCP is best suited for people who want a new or near-new car and fully intend to change it at the end of the agreement (or possibly even sooner). For a private buyer, it usually works out cheaper than a lease or contract hire finance product. You are not tied into going back to the same manufacturer or dealership for your next car, as any dealer can pay out the finance for your car and conclude the agreement on your behalf. It is also good for buyers who want a more expensive car with a lower cashflow than is usually possible with an HP.The disadvantage of a PCP is that it tends to lock you into a cycle of changing your car every few years to avoid a large payout at the end of the agreement (the GMFV). Borrowing money to pay out the GMFV and keep the car usually gives you a monthly payment that is very little cheaper than starting again on a new PCP with a new car, so it nearly always sways the owner into replacing it with another car. For this reason, manufacturers and dealers love PCPs because it keeps you coming back every 3 years rather than keeping your car for 5-10 years!What is a Lease Purchase?An LP is a bit of a hybrid between an HP and a PCP. You have a deposit and low monthly payments like a PCP, with a large final payment at the end of the agreement. However, unlike a PCP, this final payment (often called a balloon) is not guaranteed. This means that if your car is worth less than the amount owing and you want to sell/part-exchange it, you would have to pay out any difference (called negative equity) before even thinking about paying a deposit on your next car.Read the fine printWhat is absolutely essential for anyone buying a car on finance is to read the contract and consider it carefully before signing anything. Plenty of people make the mistake of buying a car on finance and then end up being unable to make their monthly payments. Given that your finance period may last for the next five years, it is critical that you carefully consider what may happen in your life over those next five years. Many heavily-financed sports cars have had to be returned, often with serious financial consequences for the owners, because of unexpected pregnancies!As part of purchasing a car on finance, you should consider and discuss all of the various finance options available and make yourself aware of the pros and cons of different car finance products to ensure you are making informed decisions about your money.

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