Money and Finance — NegosyoBuilder.com

Coming up with a profitable business idea is just half of the company creation process. Pooling money to sustain the enterprise is the other crucial half. If you already have an awesome idea to start with, the next wise move would be to look for and take advantage of the right choice of business loans. Good thing there are several options today that are suited to the varying needs of your company, including the working capital, asset acquisition and project development. To cover all the basics, here are the top four loans you might consider applying for:

1. Equipment loan — If you’re looking to buy equipment to start your operations, it might help to apply for an equipment loan. This type of loan allows you to borrow money to buy equipment and use it as collateral for the loan. You can use the machines and earn from them while paying for your loan.

2. Short term business loan — Your business might also need sufficient cash on hand to sustain its daily operation. With a short term loan, you’ll have access to cash you can use as a working capital or for tax payments, payroll, debt refinancing and inventory expenses. As most short term loans come with higher interest rates, it’s highly recommended to pay back faster, preferably weekly or bi-monthly.

Applying for a Business Loan in the Philippines 3. Line of credit — It’s also wise to apply for a business line of credit, which can provide you with cash you can use for different purposes. This can also be used as a source of working capital, fund for equipment purchase and many more. You can also opt to have an unsecured or secured line of credit, as well as a “one off” or “revolving” credit line.

4. Invoice financing — If you’re operating a B2B business, invoice financing is another option you might like to consider. This loan type allows you to take out cash in advance based on a percentage value of your expected receivables. Lenders of this loan type do not usually ask for collateral or a credit check for borrowers.

With the plethora of business financing solutions on the market today, choosing the right loan type can be quite tricky. But if you have one or two of the types above, you’ll have enough funding for your company. Are you now planning to apply for one of these loans? If you are, don’t hesitate to visit the loansolutions.ph site to learn more about today’s leading providers of these credit types. Loansolutions PH is the country’s leading financial solution concierge, connecting those in need of funding with reliable lenders. Apply in as easy as 3 steps and follow up the status of your application using the Check Loan Status tool available on site.

This article is contributed by Maricor Bunal. Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she’s fond of 9GAG, so you might read some random stuff over here.

I have to admit that I’m not entirely original when it comes to the title of this article. I took it from Franco Lombardo’s latest book entitle, “The Great White Elephant: Why Rich Kids Hate Their Parents”. The book says a lot of things about the wealth of the rich families in Canada. (Mr Lombardo is a wealth advisor based in Canada.)

Lombardo’s work is based on his observation that when it comes to wealth succession from first generation to the second, there is a dismal 70% failure rate among the wealthy families. It seems to confirm the old Chinese Proverb that goes like this: “A family’s wealth seldom lasts beyond 3 generations.”

Lombardo contends that there is more to Estate Planning that goes beyond expertise of lawyers, accountants, financial planners and investment advisors. Funny but no matter how sophisticated they are in dealing with the issue of wealth transfers (meaning passing it from one generation to the succeeding generations), wealthy families fail miserably in dealing with the emotional issues the family members have to deal with. The family’s Great White Elephant is sabotaging the whole process of succession planning.

During his interview with USA Today, Lombardo said, “The emotional component just wasn’t being dealt with. The more money families have, the more these problems are magnified.”

He also identified the three common reasons why wealthy kids hate their parents.

A white elephant is a metaphor that represents something which, when possessed, causes burden instead of giving value (like hapiness) to its possessor.

1. Wealthy parents don’t say, “No” to their kids. You know… the kind where parents give anything that their children want. This is a perfect recipe for raising spoiled kids. But wealthy parents can’t seem to connect this relationship.

They say too much love can kill you, but I think it’s exaggerated. However, here is a fact: too much love can spoil your kids.

2. Not spending time with their kids. Acting as if everything revolves around money is especially dangerous for the rich families. A lot of wealthy parents seem to be addicted to money that to the point of relegating time with their kids on the side lines. While many of them think that they can make up for the lost time by giving their kids money, well it actually only adds insult to the injury. “Money is the wrong currency to pay back lost time,” Lombardo said.

Author’s Note: Rich or poor, I think once you become a parent, you should take to heart the meaning of song, “Cats in the Cradle.” The song is rock, but it nails down the message quite effectively. Watch the video below and pay attention to the lyrics.

3. Societal Influence. What’s true in about people’s attitude toward the rich in Canada is also true here in the Philippines. Realizing that the society at large actually makes fun of rich kids, wealthy parents instruct their children to hide their wealth to blend naturally with everyone. In other words, these kids spend a large part of their growing up years with their real identities camouflaged so they can be accepted by the crowd. Unfortunately, children grow up to resent their parents for teaching them such a “fake” display of behavior.

In the Philippines, the society’s influence is even worst. As a nation, we hate the rich.

However, here’s one irony that bothers me the most: We hate the rich, but at the same time, we also wish to become one of them.

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References:

“The Great White Elephant: Why Rich Kids Hate Their Parents” can be purchase at http://www.veritage.ca.
Visit Franco Lombardo at his website.

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