Venture capital is the term used when investors buy part of a company or organization. A venture capitalist or an investor invests money in a company that is high risk and has a high growth. The investment is not for very long time. It’s usually for a period of five to seven years. The investor will expect a return on his money either by the sale of the company or by offering to sell shares in the company to the public.
When anyone investing venture capital, the investor may get a percentage of the company’s share and may be take a position on the director’s board. An venture capitalist in a company is looking to make a good return.
Wednesday, December 29, 2010
Refinancing Your Home - Broker Vs Bank
Bank Vs Broker
Mortgage Broker Pros:
- Linked up with several banks and most of the times may offer a better rate than the average bank
- Bound to disclose all fees to borrowers (including what the bank is paying them on whatever rate they have sold borrower on).
- Now, in most country, most of the brokers are licensed. So the borrowers can rely on them to get advice or service. The fees they can demand is regulated by the government or regulatory body.
Bank Pros:
- Rates set, no "selling" on their end. Rate is what it is.
- Dealing with one institution instead of having to deal with a go between.
- Process is much more smooth and easy. Additional charges like brokers fees not involved.
Cons:
Mortgage Brokers
- Typically commissioned employees whose income depends on a sale. Thus higher rates might typically be sold.
- Usually given a minimum fees requirement by management where they are unable to down sell rate as much as they should be able to.
- Process not as streamlined, no control over banks turn times, etc
- Do not have final say when it comes to ultimately deciding on a loan (appeal process is not easy)
Banks
- Do not have to mention or clarify all fees
- If working for a federally licensed bank, employees does not have to be licensed to sell mortgages (lack of knowledge, expertise in industry could be questioned).
View Bank Refinance for more details.
Mortgage Broker Pros:
- Linked up with several banks and most of the times may offer a better rate than the average bank
- Bound to disclose all fees to borrowers (including what the bank is paying them on whatever rate they have sold borrower on).
- Now, in most country, most of the brokers are licensed. So the borrowers can rely on them to get advice or service. The fees they can demand is regulated by the government or regulatory body.
Bank Pros:
- Rates set, no "selling" on their end. Rate is what it is.
- Dealing with one institution instead of having to deal with a go between.
- Process is much more smooth and easy. Additional charges like brokers fees not involved.
Cons:
Mortgage Brokers
- Typically commissioned employees whose income depends on a sale. Thus higher rates might typically be sold.
- Usually given a minimum fees requirement by management where they are unable to down sell rate as much as they should be able to.
- Process not as streamlined, no control over banks turn times, etc
- Do not have final say when it comes to ultimately deciding on a loan (appeal process is not easy)
Banks
- Do not have to mention or clarify all fees
- If working for a federally licensed bank, employees does not have to be licensed to sell mortgages (lack of knowledge, expertise in industry could be questioned).
View Bank Refinance for more details.
What is equity?
Equity is the term usually used to explain the ordinary share capital of a business.
Ordinary shares in the equity capital of a business allow the holders to all distributed profits after the holders of debentures and preference shares have been paid.
Ordinary or equity shares are issued to the owners of a company. It is important to understand that the market value of a company's shares has little (if any) relationship to their nominal or face value. The market value of a company's shares is determined by the price another investor is prepared to pay for them. In the case of publicly-quoted companies, this is reflected in the market value of the ordinary shares traded on the stock exchange (the "share price").
In the case of privately-owned companies, where there is unlikely to be much trading in shares, market value is often determined when the business is sold or when a minority shareholding is valued for taxation purposes.
In your studies, you may also come across "Deferred ordinary shares". These are a form of ordinary shares, which are entitled to a dividend only after a certain date or only if profits rise above a certain amount. Voting rights might also differ from those attached to other ordinary shares.
Visit equity finance for more details.
Ordinary shares in the equity capital of a business allow the holders to all distributed profits after the holders of debentures and preference shares have been paid.
Ordinary or equity shares are issued to the owners of a company. It is important to understand that the market value of a company's shares has little (if any) relationship to their nominal or face value. The market value of a company's shares is determined by the price another investor is prepared to pay for them. In the case of publicly-quoted companies, this is reflected in the market value of the ordinary shares traded on the stock exchange (the "share price").
In the case of privately-owned companies, where there is unlikely to be much trading in shares, market value is often determined when the business is sold or when a minority shareholding is valued for taxation purposes.
In your studies, you may also come across "Deferred ordinary shares". These are a form of ordinary shares, which are entitled to a dividend only after a certain date or only if profits rise above a certain amount. Voting rights might also differ from those attached to other ordinary shares.
Visit equity finance for more details.
Tuesday, December 14, 2010
Business Through Venture Capital
Starting up business has higher risks compare to businesses that needed funds for expansion. To make sure that both parties are secured, it must be protected by agreements bounded legally, that is also one of the reasons why venture capitalists create firms to promote protection and security to both parties.
Investors in the business play a great role in making your business successful. They many not know much about the products and services they offer but presenting it and boosting their interest will make them agree to release funds for your business.
VC or Venture Capital for more details.
Equity Financing From Different Sources
Through business equity financing, the risk faced by the entrepreneurs and business owners are at high risk. The portion of the business is being sold to the investors and when that happens, selling the portion larger than that of the owner will make their rights weak and can eventually lose the business they established.
Equity financing can come from different sources. Some still considers engaging in firms established by venture capitalists. Equity financing requires loans and guarantees return of investments by owning a share in the business. In the end, the real business owner may lose it and may lose his power to make decisions.
If you are into equity financing, one must make sure that the propositions made will still be favorable to you than the investor.
Equity Finance for more details.
Monday, December 13, 2010
Bank Financing for Business Expansion
The government in cooperation with banking institutions lowered the interest rates of bank finance to ensure recovery for those who have been affected by the global economic crisis. Banks are the only financial institution who is not much interested on getting higher profit but to guarantee recovery among borrowers.
It is enough for us to see mortgage modification that has abusive interest rates. Bank Finance is the most reliable source of funds that can help us recover assets and avoid foreclosures. Although bank does their own investigation on the ability of the borrower to pay on specified time lines, these institution will never abuse but would protect your assets instead. Bank Finance is a good source on your way to recovery.
Bank Refinance for more details.
It is enough for us to see mortgage modification that has abusive interest rates. Bank Finance is the most reliable source of funds that can help us recover assets and avoid foreclosures. Although bank does their own investigation on the ability of the borrower to pay on specified time lines, these institution will never abuse but would protect your assets instead. Bank Finance is a good source on your way to recovery.
Bank Refinance for more details.
Tuesday, November 30, 2010
Equity Financing for Business Expansion
Businesses are focusing to answer the needs of the consumers. The closing down of other companies have become opportunities to others. Expansion is necessary to answer the needs of their consumers.
Having a business is quite difficult especially if the products and services are affected by the global economic crisis. Many people tend to get only what they need and not what they want. Businesses are focusing to answer the needs of the consumers. How many corporations and companies have closed down because of bankruptcy? Numerous workers are affected; buying powers are somehow being reduced because of economic changes.
The closing down of other companies have become opportunities to others. Expansion is necessary to answer the needs of their consumers. There are many ways of sourcing funds. Among those includes equity financing. Equity financing gives the investors the chance to become part owner of the company and thus, they can be vocal of what they think and feel about the business.
View Equity Finance for more details.
Having a business is quite difficult especially if the products and services are affected by the global economic crisis. Many people tend to get only what they need and not what they want. Businesses are focusing to answer the needs of the consumers. How many corporations and companies have closed down because of bankruptcy? Numerous workers are affected; buying powers are somehow being reduced because of economic changes.
The closing down of other companies have become opportunities to others. Expansion is necessary to answer the needs of their consumers. There are many ways of sourcing funds. Among those includes equity financing. Equity financing gives the investors the chance to become part owner of the company and thus, they can be vocal of what they think and feel about the business.
View Equity Finance for more details.
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