Month: September 2018 (page 1 of 2)

Asset Finance Leasing A Primer

Asset finance is a boon to small and medium enterprises as it saves them precious working capital and helps them to improve their cash flow by letting them lease/hire expensive business critical assets rather than buying them outright.

In general asset finance is available through two routes – hire purchase and leasing. Under a hire purchase arrangement, the ownership gets transferred to the customer at the end of the hiring period while in a leasing arrangement the customer must return the equipment back to the leasing company.

In both the options, the customers must pay an agreed monthly or quarterly rental for the length of hiring/leasing period. In this article we will talk about leasing and its various aspects.

This non-transferring of the ownership is the fundamental characteristic of the lease arrangement. During the period of lease, the customer pays monthly or quarterly (or whatever is agreed) to the leasing company. This rental payout is deductible from income in some cases (except for a finance lease).

There are various types of leasing:

Finance Leasing
This comes closest to the hire purchase option of asset financing with one major difference the ownership of the asset doesnt get transferred to the business customer at any point of leasing period.

In this arrangement the customer pays the full cost of the equipment, plus the charges in the form of lease rentals over the period of the lease. The customer also gets to bear risks and enjoy benefits usually associated with the ownership without actually owning the asset he must bear the maintenance and insurance cost of the asset and will have to treat the asset as a capital asset in the balance sheet.

At the end of the lease term, usually the asset in question is re-leased to the customer at much reduced payments or is sold second-hand to an unrelated third party.

Operating Leasing
While the term for a finance lease is long, an operating leasing is usually resorted to if the need of equipment is for a shorter period. Here the full cost of the equipment is not recovered and at the end of the lease term, usually the equipment is leased to some other customer or is sold second-hand.

This type of lease is fairly common for cars and construction equipment for whom there is a mature and ready second-hand market. The usual period is of two to three years or longer, but always short of the working life of the asset. The leased asset would not go in the balance sheet as part of capital assets. Rather the lease expenses will be treated as deductible expenses in the income statement.

Contract Hire
This is a variation of an operating lease and is mostly used for vehicles. With this option the customer gets the chance to use the new asset without bearing the risks associated with ownership. Here leasing companies agree to bear some part of the management and maintenance expenses. You need to work out full details with the leasing company.

Best Careers in Banking and Finance

Banking involves a number of areas, specializations and a wide range of roles. Careers in banking and finance can be a very exciting option but given the vast and varied industry that it is, arriving at a career path and making a choice to follow it, can sometimes be daunting. In addition, the vast number of designations and specializations in each area differ from bank to bank and sometimes there might also be overlaps in certain areas. However it is a given that the number of career opportunities within banking and finance are numerous. For example, some careers might involve client interaction, some might be operational in nature, and some would involve trading and derivatives and so on and so forth.

Large investment banks are usually divided into two main areas: corporate finance or investment banking and sales & marketing with trading. Careers in banking and finance in an investment bank usually involves capital raising, debt and equity, mergers and acquisitions, services involving financial advisories and in some areas activities concerning merchant banking. Within the sales and trading division an employee might be engaged in analysis and research, distribution and brokerage of trading securities amongst other such activities. It is important to know the difference between the numerous functionalities within an investment bank during your quest for the right career path in banking and finance.

If you are a young graduate who has just passed out from a management school or college, you might want to enroll in a specific training program or banking internship that will provide you the valuable opportunity of gaining an understanding of what a financial institution is all about and kinds of opportunities available. These specific programs in different banking departments maybe of varying nature; some programs may offer a cyclical structure in various areas while others might have a specific emphasis on a particular specialization. An internship that offers a cyclical structure can give you the chance of experiencing the various opportunities available in a particular department within the bank. Prior to entering into an internship program or graduate plan, remember to look into the duration of the program. At the end of the day, irrespective of the kind of program you enroll in, a good internship will give you valuable knowledge about the basics of banking or finance before you even start on your career path. In addition to the technical and soft skills needed to succeed in careers in banking and finance, a good training program will also offer you an inside knowledge about the institution’s vision and strategy and a broad introduction of what the company stands for.

Careers in banking and finance are usually well paying, but if you are starting out your career as an intern do not look at the salary, rather look at the reputation of the banking or financial institution you are going to be a part of and the valuable knowledge that you will gain for your future.

Monster one of the leading online career and recruitment resource, works for everyone by connecting job seekers across industry verticals, experience levels and geographies instantly with leading employers. Now a day’s various kinds of Careers in banking and finance available today. Monster offers to candidates from around the world and the kind of training received on latest jobs. Update your resume on Monster and search for a suitable jobs.

Credit Card Bin Search For A Secure Finance Future

Bank identification numbers are used by banks and financial insitutions for making the credit, debit and charge cards unique. The BIN or IIN provides a personalized ID for the card. A credit card bin search can yield the details of issuing authority along with that of the cardholder. Whenever you make purchases whether online or direct, the credit card bin search ensures the accuracy of the card through these six digits.

Cards are used heavily for purchase of goods and therefore identity thefts with these cards have become more common. Although this method offers unlimited, easy and convenient access to the funds, the financial frauds associated with the use of such cards is on the rise. Therefore security of personal data and finances have become the top priority for customers as well as businesses.

Verifying the customer credit card information requires accurate credit card bin search and therefore comprehensiveness and accuracy are the most sought after qualities for a credit card bin. In order to efficiently conduct a credit card bin search, it is often advisable to get the best tool.

The credit card bin search offered by free tools are often limited like limitations imposed on number of searches, incomplete or partial database etc. Licensed versions do take care of these aspects, however cost a little high. Add on tools such as compatible security solutions, accounting packages etc may further increase the cost. Investing in a high cost version will be profitable as far as the credit card bin search using an up-to-date and user friendly bin database helps to alleviate the risks of financial fraud

Programming language used in the construction of bin database needs to be convenient and latest so that any modifications can be done without much hassles. The best results are often achieved with a combination of recent software and genuine sources of data. Data needed for the credit card bin search can be obtained from computer generated lists, user created contents, firms who process credit card payments, and the service providers.

The data as obtained from service providers tend to be more accurate. The American bankers association maintains such a database. However membership to association and access to data is restricted. A credit card bin search with bin database solves this issue by providing the latest information on credit cards with accuracy.

It doesn’t matter how much the quantum of transactions of the business are, but what really signifies is the nature of transactions. If the firm relies on online nature of business, then a credit card bin search is a must have and therefore getting the latest bin database is necessity than a luxury.

Free versions do have their limitations. The commercial ones may not be what they claim to be. Hence it is better to check the rants and ravings before you finalize on the type of bin database for your business.

A reliable security system for finance is therefore as essential as a good accounting package. Like the antivirus definitions which protect your business data, the credit card bin search with the perfect bin database can solve all your financial dilemmas.

The Difference Between Accounting Jobs And Finance Jobs

People are often confused between jobs in finance and accounting jobs. However, the differences are quite clear when you look at them individually.

In accounting jobs, the employee may be employed by an accountancy firm, where they will oversee the financial accounts of more than one company, or by a single company in their accounts department.

Accounting jobs involve handling and providing data relating to the financial performance of one or more companies. This includes preparing financial statements, such as income and expenditure statements, balance sheets, cash flows and such like, as well as income tax issues. Since most of the work is involved with the preparation of forms and financial statements, it is a good option for well organised people who prefer a passive, but independent role within a company.

Jobs in finance are concerned with decision making and are best suited to those who enjoy a leadership role. For example, finance managers use financial statements drawn up by accountants, to make decisions on how to minimise loss and maximise profits this may include decisions on stocks and shares, or trading on the Forex market.
Companies offering jobs in finance expect employees to analyse how the company is performing financially, and make decisions based on that information. However, there are numerous jobs in finance that involve far less risk taking for example, financial consultants are widely used within the banking industry.
Broadly speaking, therefore, accounting jobs are analytical and passive in nature, producing data which those taking jobs in finance then act upon.

How To Finance Investment Property

There are many people who failed in real estate investing. Reasons could be, they don’t know what they got in, or they just don’t ask for management consultancy services that can surely help them when it comes to the problem of investing. Before you pierce through a delicate deal, you should know first its nature. You should be able to answer the basic question How to finance investment property?

Though the idea of investment property is a lucrative step to make money, the idea is not as plain as it is. Taking time to know what finance is, what’s the meaning of investment, and what is property. Putting them all together would be a tougher job.

Investing means putting your money into something that will bring you profit. But always remember that to invest in a property is not that easy. There are chances that you will go slump. Everything depends on your investment strategy. Smart investments are found by observing closely on what type of property, location of property, demand for property and calculated return on the asset. Details of your potential property investment are important. A smart investment deserves a smart finance. And so, to make your research about financing investment property, consider these following tip/pointers:

1.Analyze the Potential Return of your investment properties. Take time to consider he rental properties income and the expenses you will have to overdo in operating them. Research how music is charged with the rental for similar properties in the area. Create account for expenses like management fees, property maintenance, taxes, home owner’s association fees and others.

2.To finance the investment property, check a seller financing contract. With a realtor, discuss how to find out property owners offering financing. Finance support is offered by the builder if its a new construction. If it is a pre owned home, it is the seller. You will be able to secure advantage financing terms, depending on the seller.

3.Find private property investors to finance you on your investment properties. You can run to individual investors who come together to pool money to finance investment property. They earn money, just the same with what a bank earns in the form of interest rates. Ask a realtor or find private property investor online.

4.You can also try banks and credit unions to finance investment and rental properties. They are more strict and decent in their guidelines. However, they provide investment to possible applicants depending on buyer’s worthiness. Collect your personal financial document together. Grab a copy of your credit report and get personal income and expense figure.

5. Hire a lawyer that can help you on your real estate investment. This is important especially if you are going to use a Seller Financing or a Private Property Investors contract. He/she can provide counseling for special legal clauses included in these financing agreements.

6. Know how long will you be investing in a property. You must have fixed idea of how long will you be committed in financing your investment property. Te longer you plan to own the property, the longer time you need to invest in maintenance, repair and improvement.

7. You should avoid overpaying. Remember that you earn profit in investment property when you buy and not selling property.

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