Secured vs Unsecured Debt Financing

Secured vs Unsecured Debt Financing
Compared to equity financing which needs a period of up to
12 months if you are listing your company for a first time,
debt financing is a way to gain quick access to funds.
Other reasons why equity financing is ruled out could be
due to stringent criteria required on companies to be
listed and directors' reluctance to dilute their
shareholdings.

Companies can choose between secured and unsecured debt
financing. Secured overdrafts would require the companies
to pledge collateral in the form of cash or property.
Unsecured overdrafts do not require any collateral but the
credit line granted out is subjected to yearly reviews.
Both facilities would require the personal guarantees of
all directors. Business overdraft facilities serve as a
source of funds that your company can tap into during
emergencies. The interest rates are much lower than drawing
down on your personal credit cards.

Secured overdrafts typically have a lower interest rate,
higher loan quantum as well as a potentially shorter loan
tenor of up to three months. You can pledge assets such as
cash, property, stocks, bonds, debentures etc. If property
is being used as collateral, bankers typically look at the
location of the property, whether it is fully paid up as
well as the current market value. Depending on the type of
collateral pledged, the loan quantum granted out can be
slightly lower or much higher than the market value of your
collateral.

Alternatively, consider the unsecured business installment
loan which offers you interest rates that are comparable or
even lower than what your local business financing
assistance bureau is offering. In addition the loan quantum
granted out by financial institutions is four times more.
The loan application process of most financial institutions
today is fast and hassle-free. The loan can be approved as
fast as 24 hours and the funds are available for your usage
immediately. In addition you are free to use the funds for
working capital, purchase of fixed assets, payroll
financing etc.

To be eligible for these credit facilities, companies have
to be in operations for at least three years. The company
directors must have at least two years of relevant
experiences and at least one director is aged between 25
and 60 years of age at the point of application. Lastly,
the business must not be involved in certain high risk
industries such as arm manufacturers and casinos. To learn
how debt financing can help you to grow your business,
speak to your banker today.

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Joyce TM Leong is a consultant who helps companies with
their business financing needs. For Joyce's free Business
Tips newsletter, please visit
http://www.businessfinancingpro.com

Canoa Quebrada Brazil A New Area To Invest But Hurry

Canoa Quebrada Brazil A New Area To Invest But Hurry
Savvy Overseas property investors have come to realise that
Brazil is a great place to dip your toe in international
real estate investing. In just the last three years
investors in Cumbuco Fortaleza Brazil are running round
with huge smiles on their faces after investing in
beachfront property. The reason for the smiles is that
price rises in Brazilian beachfront property in that area
have given them 100 per cent capital appreciation. For them
investing in off plan pre construction real esate by a
beach popular with wind surfers was the right move. I have
now discovered another area in Brazil with the same
credentials as Cumbuco. This area is Canoa Quebrada in
Ceara North Eastern Brazil.

Canoa Quebrada is 165 kilometres southeast of Fortaleza, a
city of some 2 million plus. Pinto Martins International
Airport, just outside Fortaleza, has direct and connecting
flights to Europe and other major cities within Brazil.
From there, it's about a two hour drive along the coast to
this Brazilian tropical paradise.

Canoa Quebrada beaches are second to none several miles of
long, fine-grained sandy beaches with many freshwater
lagoons. Like Cumbuco the area is popular with South
Americans and is growing in popularity with international
tourists. The area around Canoa has much so offer those who
like sports and excitement. There is wind surfing,
paragliding, sand boarding, diving and cycling, to name but
a few. There's a wide choice of restaurants, nightclubs,
discos and bars. Getting there is easy than you may think
for such a relaxed peaceful paradise. Arriving from
Fortaleza there are buses to Canoa Quebrada, however its
best to hail a taxi. A beach buggy with driver for 4
people, day-return trip to Canoa will come to about 200real
and will take about 2 hours maximum.

Brazilian Real Estate has recently experienced a big boost
in its popularity abroad, helped by its robust economic
performance and a more active role in the international
arena. Its image is frequently associated with a casual and
healthy lifestyle, friendly people, and a beautiful
combination of rainforest, mountains, and sea. As a
consequence, tourism inflows have increased dramatically
over the past few years and international property
investors are quickly realizing the huge gains that can be
made in this fast growing emerging market.

A great indication that you have select the right
international real estate market to spend your hard earned
money is by following the big multi national. Morgan
Stanley's global network of economists, strategists,
research and product specialists have specific knowledge to
deliver the most informed strategic and investment advice
possible. Property investors can now take stock of the fact
that such a well informed investor can choose Brazil as a
place to invest. Morgan Stanley believes there is pent up
demand for residential properties and new builds in Brazil,
particularly in Sao Paulo.

Its seems time to get on the internet and find Canoa
Quebrada Real Estate and check my predictions that this is
a mighty hot place to invest in Brazilian Real Estate

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Nicholas Marr helps investors with investment decisions and
promotes Brazil real estate to an international audience.
He is a lifetime property investor and CEO of Marr
International who are behind the overseas property portal
at http://www.homesgofast.com/home/Brazil/

A Guide to Unsecured Business Loans

A Guide to Unsecured Business Loans
Debt financing has never been popular with small business
owners. I can understand why it is being avoided as if it
is a disease. It can become a financial burden with the
high interest rate that is pegged to unsecured credit
facilities. However do not discount debt financing, as it
can be a good way to raise much-needed funds for your
business.

Today, there are two types of unsecured credit facilities
open to small business owner. Whether it is to be a
business overdraft or a business installment loan, the
choice would ultimately depend on the needs of your company
and how the capital will be utilized.

If your company needs a safety net for rainy days, your
best bet would be an unsecured bank overdraft facility. It
is an excellent way to minimize your interest expense
especially if the funds are used for a short period. This
is due to the interest being calculated on a daily basis.
However do take note that the interest rate is usually
pegged to the board rate which fluctuates with time. Some
banks even pay you preferential interest rates if your
account has credit balances in it. Your current banker
probably has offered you this facility before so take it.
With the credit line being reviewed on a yearly basis take
the maximum quantum offered. After all, there's no
certainty that you will be getting the same or better deal
in years to come.

On the other hand if your company is planning to expand, go
with the unsecured business installment loan. This way you
get to maximize your business potential without the fear of
your sources of livelihood being taken away from you. Most
banks do not restrict the usage of the funds thus the
flexibility is a big bonus to any small business owner. You
get to use the funds for working capital, purchasing of
machinery and materials, payroll etc. The option to pay
back between 12 to 60 months allows you time to reap the
returns on your investment.

Most banks have slightly different policies on unsecured
credit facilities for small businesses. I strongly
encourage you to shop around for more information before
deciding whether debt financing is suitable for your
company and if so, which bank to acquire this source of
funds from. To find out more about how debt financing can
work for your business, speak to your banker today.

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Joyce TM Leong is a consultant who helps companies with
their business financing needs. For Joyce's free Business
Tips newsletter, please visit
http://www.businessfinancingpro.com