PMTG-Finance

World Finance

Month: November 2018

Requirements For Getting a Car Loan

For Americans, the issue of transportation is the utmost importance, in some cases representing the key factor for getting or having a job. The public transit is not the solution in many cases because access in suburban job sites is limited. Sometimes, suburban jobs represent the only employment for persons with limited mobility, in order to work, be paid and survive.

People who are working in the suburban areas are not earning as much their counterpart in the urban cities, and because of their low income they will have many difficulties receiving any car financing or auto financing. It is all about good credit, bad credit and how much you are earning – Getting approved for loan can come down to as simplest of thing such as your family income or the household income. A person who is of medium or high-income earner will have no problem in getting a car loan for a decent car. In comparison, a person who is earning the minimum salary will be stopped by many barriers from his or her quest for a car loan.

In order to obtain a car loan, a person will need to fulfill all the professional and financial requirements. In most of the cases, as stated before, a good job can make the difference. Based on the persons asking for a loan, their credit score can define whether that person can get or not get the car loan approval. In some US cities, the dealers will offer car loans without any warranty or security, just to encourage and stimulate the people to obtain cars and to get car loans.

In the past recent years there have been created and developed a high number of organizations (more than 150 nonprofit organizations), which are offering low-income car ownership programs suitable for each and every person.

One of these non-profit societies is “Wheels to Work”, an organization that is helping the workers with low incomes to have reliable transportation with dependable cars, based on affordable terms. This low income car ownership has been developed in many US states, but New Hampshire is having the advantage of offering tax credits to the companies that are supporting “Wheels to Work”. In this case, the tax credits which are authorized by the New Hampshire Community Development Finance Authority can be applied against some of the state business taxes, such as: Business Profits Tax, Business Enterprise Tax, or Insurance Premium Tax.

Furthermore, the persons who are having a good education, and also a good credit, can be said that are having a slight advantage in getting a car loan or a car lease.

So, in order to sum up all the information stated till now in this article: there are opportunities in getting a car loan or a car lease by the persons with low income, but they need to search for low-income car ownership programs. In addition, they will need to try to get as well educated as they can, and also they … READ MORE ...

How Do You Fund a New Venture in a Mature Market?

Following a consolidation of equipment suppliers, the broadband network market has become mature with a few large players. This potentially leads to less diversity and industry creativity because the barriers to entry are now enormous. Starting a new venture in a mature market like this poses significant challenges. How would you approach funding a new venture in a mature market?

Advice from Chuck Gershman, Founder and Former CEO, Bay Microsystems

First, if you can get the venture off the ground, the opportunity is tremendous because competition for new approaches in a mature market is limited, and large players don’t move quickly. Their incentive is to change slowly to lengthen product life cycles. Rapid innovation is their Achilles’ heel. They are slow to respond to a market disrupter.

The downside to start-up innovators in a mature market is a diminished number of financiers interested in the space because of the barriers to entry, and because the most likely exit is an M&A play at low multiples. An entrepreneur needs to find a financier who understands the market space and can see the value in the new technology.

Given this reality, how do show potential sufficient to attract investors? In the hardware space, you must demonstrate a convincing go-to-market strategy with modest investment and a moderate cost of market penetration. The challenge is this: if the cost of success is high, it requires too much investment – and too much risk – before you can accurately assess the possibility of market success.

* You must be able to show a substantial total available market.

* You must be able to show that your capability meets the needs of the market.

* You must be able to show that the customer base will respond en masse – this is a key risk.

* With fewer investors willing to look at your product and technology, it takes more time and work to find interested investors.

Investors invest on perceived risk, so the task is to show that the risk is manageable. In the past, investors were convinced by a strategic partner who was a committed customer that would finance bringing the product to market.

* In the current market, an effective strategy is to develop an early customer who is a strategic investor in your company from Day 1. This raises the likelihood of an exit, and therefore appeals to investors, but reduces downstream options and ROI.

How Do You Fund a New Venture in a Mature Market?

Following a consolidation of equipment suppliers, the broadband network market has become mature with a few large players. This potentially leads to less diversity and industry creativity because the barriers to entry are now enormous. Starting a new venture in a mature market like this poses significant challenges. How would you approach funding a new venture in a mature market?

Advice from Chuck Gershman, Founder and Former CEO, Bay Microsystems

First, if you can get the venture off the ground, the opportunity is tremendous … READ MORE ...

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