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Talk to any business owner or read the business section of any newspaper and you’re likely to come across stories of struggles to access sufficient finance to grow or maintain their business. But we are beginning to witness a change in how business owners access finance with many now actively seeking out alternative sources.

A survey carried out by the UK’s Forum of Private Business found that 26% of businesses were hunting out alternative financial products, with 21% seeking them outside of the traditional main High Street lenders. In fact, in another survey undertaken by the Federation of Small Businesses, it was discovered that only 35% of respondents used a traditional overdraft facility in 2011.

So, if banks are continually reluctant to lend to all but the lowest risk businesses, how can the remainder of the UK’s business population finance growth? Here are some of the increasingly popular alternative sources of finance to investigate.

Better Management of Working Capital

This may appear to be an odd source of finance but very often businesses are sitting on undiscovered cash reserves which can be used to finance growth. A report issued by Deloitte in 2011 revealed that the UK’s largest businesses were sitting on £60 billion of unproductive working capital. Inefficiencies in how working capital (debtors, stock and creditors) is handled can unnecessarily tie up your cash. Cash can be unlocked and released back in to the system thereby allowing self-financed growth plans by taking a close look at credit procedures, how credit terms are granted and how outstanding payments are chased.

Ensuring that stock is kept at an optimum level via better inventory management is another area where cash can be released to support and finance growth. Take a good look at your inventory management process and identify areas where cash is trapped.

Good management of working capital is not just about better control of debtors and stock, it is also about maximising the terms given by creditors. Are you too eager to maintain a first class relationship with your suppliers by paying well before the due date? You can positively impact your cash position by taking full advantage of terms offered by your suppliers. Have you fully leveraged your position by seeking an extensive of terms from say 30 days to 45 days?

Being more efficient in how working capital is managed can release sufficient funds to self-finance growth plans.

Personal Resources

With traditional avenues of funding being more difficult to access business owners are now looking to their personal resources to fund growth. Whether it be drawing on cash savings, using personal credit cards or taking additional mortgages on residential properties, such sources are an instant solution. A survey by the Federation of Small Businesses found that 33% of respondents had utilised their savings to fund growth. As well as being more immediately accessible using personal resources is often a cheaper source of finance.

Family and Friends

Sometimes referred to as the three F’s – family, friends and fools – this can appear to be a less stressful way of raising finance. In some ways it can but it can also be a journey fraught with danger. Tapping into their personal network business owners source finance by either seeking a loan and offering to pay an interest rate higher than that on offer on a High Street savings account, or offering a slice of equity in the business in return for investment.

Raising finance in this way can be relatively easy because the request and fulfilment is very much based on personal trust. Typically a Business Plan would be presented highlighting both the investment opportunity and the risks but at the end of the day success is down to the depth of the relationship and level of trust.

The danger in raising funds this way is that the nature of the relationship will change from that of a personal nature to a business transaction. Failure to regularly pay as per agreed terms, or even total failure to pay, can irreparably damage the relationship so tread with care.

Asset Finance

The Asset Finance industry is based on the concept of either preserving cash or speeding up access to it. Asset finance, which consists of invoice discounting, factoring and funding of asset purchases, has been available as a source of finance for many years, yet it’s only now gaining more recognition. Figures released by the Asset Based Finance Association, a trade association representing the industry, show that to the third quarter of 2011 the amount financed by the Association’s members increased by 9% compared to the same period in the previous year. Whilst the increase may not seem significant it is against the backdrop of a fall in traditional bank lending.

In a world where ‘cash is king’ asset financiers help preserve cash by financing the purchase of assets such as vehicles, machinery and equipment. Because the financier is looking to the underlying asset as security there is usually no requirement for additional collateral. According to the Asset Finance and Leasing Association one in three UK businesses that have external finance now utilise asset finance.

Asset financiers can help speed up the flow of cash within a business by allowing quicker access to cash tied up in the debtor book. An invoice discounting and factoring facility gives businesses the ability to immediately access up to 80% of an invoice instead of waiting for the agreed credit terms to run their course. Such finance facilities will speed up the velocity of cash within the business thereby allowing the business to fund a high rate of growth.

New players such as Market Invoice are entering the market to allow businesses to raise finance against selected invoices. Tapping into high net worth individuals and funds Market Invoice acts as an auction house with funders ‘bidding’ to advance against certain invoices.

Crowfunding and Peer-to-Peer

A relatively new phenomenon is the concept of raising finance by tapping into the power of the crowd. The historically low rates of interest payable on savings have led to depositors seeking out new ways to increase their returns. With business owners struggling to raise the funding they need it’s only natural that a market would be created to bring these two parties together.

CrowdCube entered the market in 2010 to match private investors seeking to be Dragons with those businesses looking to raise capital. Once a business passes the initial review stage their proposal is posted on the site and potential investors indicate the level of investment they wish to make with the minimum amount being as low as £10.

Businesses looking for a more traditional loan should consider Funding Circle. Established in 2010 Funding Circle also matches individual investors looking for a better return with those businesses seeking additional finance. Businesses can apply for funding between £5,000 and £250,000 for a period of 1, 3 or 5 years. As a minimum the business has to have submitted two years Accounts with Companies House and be assessed in order to arrive at a risk rating which guides potential investors.

As the crowd sourcing concept matures we are likely to see more players enter this market to capitalise on the need for better investor returns and easier access to business finance.

There is More Than One Way to Fund Growth

Accessing finance to fund growth plans does not have to be difficult if you are prepared to seek out alternative providers. Funding growth is now no longer the exclusive preserve of the traditional High Street bank and it’s now down to business owners to seek out the alternative routes.

Sources of business finance can be studied under the following heads:

(1) Short Term Finance:

Short-term finance is needed to fulfill the current needs of business. The current needs may include payment of taxes, salaries or wages, repair expenses, payment to creditor etc. The need for short term finance arises because sales revenues and purchase payments are not perfectly same at all the time. Sometimes sales can be low as compared to purchases. Further sales may be on credit while purchases are on cash. So short term finance is needed to match these disequilibrium.

Sources of short term finance are as follows:

(i) Bank Overdraft: Bank overdraft is very widely used source of business finance. Under this client can draw certain sum of money over and above his original account balance. Thus it is easier for the businessman to meet short term unexpected expenses.

(ii) Bill Discounting: Bills of exchange can be discounted at the banks. This provides cash to the holder of the bill which can be used to finance immediate needs.

(iii) Advances from Customers: Advances are primarily demanded and received for the confirmation of orders However, these are also used as source of financing the operations necessary to execute the job order.

(iv) Installment Purchases: Purchasing on installment gives more time to make payments. The deferred payments are used as a source of financing small expenses which are to be paid immediately.

(v) Bill of Lading: Bill of lading and other export and import documents are used as a guarantee to take loan from banks and that loan amount can be used as finance for a short time period.

(vi) Financial Institutions: Different financial institutions also help businessmen to get out of financial difficulties by providing short-term loans. Certain co-operative societies can arrange short term financial assistance for businessmen.

(vii) Trade Credit: It is the usual practice of the businessmen to buy raw material, store and spares on credit. Such transactions result in increasing accounts payable of the business which are to be paid after a certain time period. Goods are sold on cash and payment is made after 30, 60, or 90 days. This allows some freedom to businessmen in meeting financial difficulties.

(2) Medium Term Finance:

This finance is required to meet the medium term (1-5 years) requirements of the business. Such finances are basically required for the balancing, modernization and replacement of machinery and plant. These are also needed for re-engineering of the organization. They aid the management in completing medium term capital projects within planned time. Following are the sources of medium term finance:

(i) Commercial Banks: Commercial banks are the major source of medium term finance. They provide loans for different time-period against appropriate securities. At the termination of terms the loan can be re-negotiated, if required.

(ii) Hire Purchase: Hire purchase means buying on installments. It allows the business house to have the required goods with payments to be made in future in agreed installment. Needless to say that some interest is always charged on outstanding amount.

(iii) Financial Institutions: Several financial institutions such as SME Bank, Industrial Development Bank, etc., also provide medium and long-term finances. Besides providing finance they also provide technical and managerial assistance on different matters.

(iv) Debentures and TFCs: Debentures and TFCs (Terms Finance Certificates) are also used as a source of medium term finances. Debentures is an acknowledgement of loan from the company. It can be of any duration as agreed among the parties. The debenture holder enjoys return at a fixed rate of interest. Under Islamic mode of financing debentures has been replaced by TFCs.

(v) Insurance Companies: Insurance companies have a large pool of funds contributed by their policy holders. Insurance companies grant loans and make investments out of this pool. Such loans are the source of medium term financing for various businesses.

(3) Long Term Finance:

Long term finances are those that are required on permanent basis or for more than five years tenure. They are basically desired to meet structural changes in business or for heavy modernization expenses. These are also needed to initiate a new business plan or for a long term developmental projects. Following are its sources:

(i) Equity Shares: This method is most widely used all over the world to raise long term finance. Equity shares are subscribed by public to generate the capital base of a large scale business. The equity share holders shares the profit and loss of the business. This method is safe and secured, in a sense that amount once received is only paid back at the time of wounding up of the company.

(ii) Retained Earnings: Retained earnings are the reserves which are generated from the excess profits. In times of need they can be used to finance the business project. This is also called ploughing back of profits.

(iii) Leasing: Leasing is also a source of long term finance. With the help of leasing, new equipment can be acquired without any heavy outflow of cash.

(iv) Financial Institutions: Different financial institutions such as former PICIC also provide long term loans to business houses.

(v) Debentures: Debentures and Participation Term Certificates are also used as a source of long term financing.

Conclusion:

These are various sources of finance. In fact there is no hard and fast rule to differentiate among short and medium term sources or medium and long term sources. A source for example commercial bank can provide both a short term or a long term loan according to the needs of client. However, all these sources are frequently used in the modern business world for raising finances.

Equipment Financing/Leasing

One avenue is equipment financing/leasing. Equipment lessors help small and medium size businesses obtain equipment financing and equipment leasing when it is not available to them through their local community bank.

The goal for a distributor of wholesale produce is to find a leasing company that can help with all of their financing needs. Some financiers look at companies with good credit while some look at companies with bad credit. Some financiers look strictly at companies with very high revenue (10 million or more). Other financiers focus on small ticket transaction with equipment costs below $100,000.

Financiers can finance equipment costing as low as 1000.00 and up to 1 million. Businesses should look for competitive lease rates and shop for equipment lines of credit, sale-leasebacks & credit application programs. Take the opportunity to get a lease quote the next time you’re in the market.

Merchant Cash Advance

It is not very typical of wholesale distributors of produce to accept debit or credit from their merchants even though it is an option. However, their merchants need money to buy the produce. Merchants can do merchant cash advances to buy your produce, which will increase your sales.

Factoring/Accounts Receivable Financing & Purchase Order Financing

One thing is certain when it comes to factoring or purchase order financing for wholesale distributors of produce: The simpler the transaction is the better because PACA comes into play. Each individual deal is looked at on a case-by-case basis.

Is PACA a Problem? Answer: The process has to be unraveled to the grower.

Factors and P.O. financers do not lend on inventory. Let’s assume that a distributor of produce is selling to a couple local supermarkets. The accounts receivable usually turns very quickly because produce is a perishable item. However, it depends on where the produce distributor is actually sourcing. If the sourcing is done with a larger distributor there probably won’t be an issue for accounts receivable financing and/or purchase order financing. However, if the sourcing is done through the growers directly, the financing has to be done more carefully.

An even better scenario is when a value-add is involved. Example: Somebody is buying green, red and yellow bell peppers from a variety of growers. They’re packaging these items up and then selling them as packaged items. Sometimes that value added process of packaging it, bulking it and then selling it will be enough for the factor or P.O. financer to look at favorably. The distributor has provided enough value-add or altered the product enough where PACA does not necessarily apply.

Another example might be a distributor of produce taking the product and cutting it up and then packaging it and then distributing it. There could be potential here because the distributor could be selling the product to large supermarket chains – so in other words the debtors could very well be very good. How they source the product will have an impact and what they do with the product after they source it will have an impact. This is the part that the factor or P.O. financer will never know until they look at the deal and this is why individual cases are touch and go.

What can be done under a purchase order program?

P.O. financers like to finance finished goods being dropped shipped to an end customer. They are better at providing financing when there is a single customer and a single supplier.

Let’s say a produce distributor has a bunch of orders and sometimes there are problems financing the product. The P.O. Financer will want someone who has a big order (at least $50,000.00 or more) from a major supermarket. The P.O. financer will want to hear something like this from the produce distributor: ” I buy all the product I need from one grower all at once that I can have hauled over to the supermarket and I don’t ever touch the product. I am not going to take it into my warehouse and I am not going to do anything to it like wash it or package it. The only thing I do is to obtain the order from the supermarket and I place the order with my grower and my grower drop ships it over to the supermarket. ”

This is the ideal scenario for a P.O. financer. There is one supplier and one buyer and the distributor never touches the inventory. It is an automatic deal killer (for P.O. financing and not factoring) when the distributor touches the inventory. The P.O. financer will have paid the grower for the goods so the P.O. financer knows for sure the grower got paid and then the invoice is created. When this happens the P.O. financer might do the factoring as well or there might be another lender in place (either another factor or an asset-based lender). P.O. financing always comes with an exit strategy and it is always another lender or the company that did the P.O. financing who can then come in and factor the receivables.

The exit strategy is simple: When the goods are delivered the invoice is created and then someone has to pay back the purchase order facility. It is a little easier when the same company does the P.O. financing and the factoring because an inter-creditor agreement does not have to be made.

Sometimes P.O. financing can’t be done but factoring can be.

Let’s say the distributor buys from different growers and is carrying a bunch of different products. The distributor is going to warehouse it and deliver it based on the need for their clients. This would be ineligible for P.O. financing but not for factoring (P.O. Finance companies never want to finance goods that are going to be placed into their warehouse to build up inventory). The factor will consider that the distributor is buying the goods from different growers. Factors know that if growers don’t get paid it is like a mechanics lien for a contractor. A lien can be put on the receivable all the way up to the end buyer so anyone caught in the middle does not have any rights or claims.

The idea is to make sure that the suppliers are being paid because PACA was created to protect the farmers/growers in the United States. Further, if the supplier is not the end grower then the financer will not have any way to know if the end grower gets paid.

Example: A fresh fruit distributor is buying a big inventory. Some of the inventory is converted into fruit cups/cocktails. They’re cutting up and packaging the fruit as fruit juice and family packs and selling the product to a large supermarket. In other words they have almost altered the product completely. Factoring can be considered for this type of scenario. The product has been altered but it is still fresh fruit and the distributor has provided a value-add.

Here’s a news flash: Women are poised to surpass men on the nation’s payrolls for the first time in American history. According to a recent report by the New York Times, four out of five jobs lost in the current U.S. recession belong to men-a consequence of the surge in layoffs within distressed, male-dominated industries, such as manufacturing and construction. This emerging workplace trend may ultimately be a momentous boon to women-shifting their power and influence, both at home and on the job. It also represents a new call to action for women-and employers.Another news report offered a different take: “Jobs of 22 Million Women Threatened by Global Financial Crisis,” says the International Labor Organization, as conveyed by the Bureau of National Affairs (BNA) in the March 16 issue of its Human Resources Report. In a report issued in advance of International Women’s Day on March 8, the United Nations agency said the global unemployment rate for women could reach 7.4 percent in 2009, compared with 7 percent for men. This trend also serves as a wake-up call for women as employers face difficult decisions about workforce reductions-causing women to work even harder to “make the cut.”The hidden element
Over and above these contradictory headlines, there’s a third factor affecting professional women in the workplace-one that is hidden or seldom addressed. Before the economic downturn and unemployment hit the marketplace, many women were already facing a personal crisis: while they had been busy during their careers securing more power, they became sicker and sadder. This trend has been subtly taking place across a wide range of age, income, and marital status spectrums. Now, at a time when jobs are suddenly a necessity, working women are generally unhappier and struggling to cope with the increased demands they once sought in the quest for “having it all.”Whichever headline becomes the final truth in today’s workplace dynamic, women facing these changing times have both unprecedented opportunities and obstacles. For many, they find themselves in a holding pattern as the employment landscape unfolds. Meanwhile, employers are beginning to see women in different light.Unprecedented opportunities-and obstacles
Women may now gain access to professional power and influence that were previously out of reach. As a result, women everywhere can shape their lives and careers with a greater sense of empowerment and serve as vital role models for future generations of women and girls. Additionally, many women are likely to emerge as sole or primary breadwinners for their families and, in turn, begin to revise and update old and rigid gender roles at home-balancing domestic roles and responsibilities more fairly and flexibly. For men, these shifts offer new chances to stretch and grow as well. But don’t be fooled. These emerging and unprecedented opportunities-for women, men, and organizations-will be matched by extraordinary obstacles.The present plight-and fight-of professional women
Before the current economic downturn, women were already beset with a number of crises-personal and professional-and were seeking radical change in how they work and live. According to my research-a yearlong national study in partnership with the Esteemed Woman Foundation-seven out of 10 women, particularly those in their middle years, say they are at a major turning point in their professional lives. After devoting years to building successful careers, they feel that their professional lives and identities no longer work. Consequently, most are facing at least one of 12 “hidden” work/life crises, including chronic health problems, financial bondage, and failure to balance family and work.12 hidden crises women face
My research helped confirm that a true professional crisis is far more than a “tough time.” It is a no-turning-back situation-a point in time that demands reckoning and reevaluation. So how do women know when they’ve reached that point? When they frequently find themselves saying, “I can’t do this”-the desperate cry, or negative mantra, of work-life crisis-and consistently have deep-down feelings of disempowerment, they are likely experiencing one or more of 12 hidden crises. Among the crises:- Suffering from chronic health problems
Failing health-a chronic illness or ailment-that won’t respond to treatment
The mantra: “I can’t resolve my health problems.”- Losing their “voice”
Contending with a crippling inability to speak up-unable to be an advocate for themselves or others, for fear of criticism, rejection, or punishmentThe mantra: “I can’t speak up without being punished.”Facing abuse or mistreatment
Being treated badly, even intolerably, at work-and choosing to stayThe mantra: “I can’t stop this cycle of mistreatment.”- Feeling trapped by financial fears
Remaining in a negative situation solely because of moneyThe mantra: “I can’t get out of this financial trap.”- Wasting real talents
Realizing their work no longer fits and desperately wanting to use their natural talents and abilitiesThe mantra: “I can’t use my real talents.”- Struggling to balance life and work
Trying-and failing-to balance it all, and feeling like they’re letting down who and what matters mostThe mantra: “I can’t balance my life and work.”- Doing work that feels wrong
Longing to reconnect with the “real me”-and do work they loveThe mantra: “I can’t feel good about my work.”The call and the action-what employers can do
For women, a professional crisis is saying that change must occur-now. That doesn’t mean it will be easy-most likely, it won’t-but, one step at a time, every woman can create her own breakthrough. Moreover, considering the shifting or “new” workplace and an increasingly difficult and demanding business environment, organizations must be there to help-understanding and supporting women’s unique challenges and contributions.The predominant male competitive career model has been, up until now, slow to recognize and respect women’s differences. The work landscape has changed dramatically, and despite the headlines that women are losing headway as a necessity for a company’s survival, this long-standing model has four key elements that no longer work and must be modified; these elements are:1) a bias for linear or continuous employment histories;
2) an over-emphasis on “full-time” and “face-time;”
3) the expectation or belief that “ambitious” professionals will be most committed in their 30s (when many women are having babies); and
4) a guiding principle that money and power are primary motivators.Now is the time to revise and reform this model. How? By expanding it with new thinking and initiatives that meet the needs and wants of women.I believe, and my research confirms, that now is the time for such a reform. To survive and thrive in a shifting workplace and complex business world, organizations must rise up and be constant, committed, and contemporary champions for women. I offer eight strategies for getting started:1. Embrace women as women.
An abundance of workplace research shows how and why women differ from men and contribute in unique and indispensable ways. Undeniably, women have distinct values and priorities, needs and wants, styles and approaches. A recent medical study shows that men and women even have unique physiological reactions to crisis and stress, and companies are best served when there is a balanced representation of both genders in leadership roles. In fact, it has been said that if Lehman Brothers were “Lehman Brothers and Sisters,” our current economic crisis might not exist! 2. Foster support.
Develop an internal support system for women. Create a woman-to-woman mentoring program, sponsor women-only networks, and initiate an ongoing forum for women to connect, converse, and collaborate. Essentially, encourage women to come together-formally and informally, face-to-face and online-to address challenges and opportunities, seek advice, and celebrate individual and collective successes.3. Train for growth and expansion.
Commit to training and development. Help women build new hard and soft skills through formal training programs and, wherever possible, one-on-one executive or leadership coaching. Provide regular access to internal and external seminars, and promote women’s involvement in “stretch” assignments. Put women on new projects and teams-including special task forces-and broaden their distinguishing gifts, talents, and abilities.4. Focus on flexibility.
Women’s need for flexibility is bona fide and fundamental. In consideration of weighty realities such as childcare and eldercare, implement new programs, policies, and procedures that foster optimal flexibility-telecommuting, flextime, job sharing, part-time offerings, and more. Additionally, institute incentives and rewards that go beyond the traditional framework of money and power. Ask women what they really want, and work to incorporate those incentives into the company’s recognition and reward programs. 5. Expand the options.
Grow the options for how women can contribute over the arc of their careers. Recognize the fluid nature of women’s priorities, and consider differing career paths and trajectories-up, down, and across. Experiment with a variety of options-all providing for unique opportunities for “on-ramping” and “off-ramping” as women’s lives and priorities shift at home and on the job.6. Encourage work-life balance.
Women are increasingly beleaguered as they try, and fail, at balancing work
and life. What’s more, research shows that working women, even as sole breadwinners, are still shouldering most domestic responsibilities at home. Companies, in response, must be champions for work-life balance and wellness for women-offering internal resources or outside referrals to programs focused on striving for balance, pursuing a healthy lifestyle, and managing stress.7. Empower women leaders to “walk the talk.”
Years ago, as a corporate VP in a large national marketing firm, I was “put down” by the head of HR for my choice to take a full week off to move my family, including my husband and our two small children, to another city. “I moved to another town with my kids last month and only took a half day,” the HR leader said. Criticizing my personal choice, as wife and mother, was a “less than” form of leadership-lacking a critical sense of empowerment, balance, and support to women. Worse, the source was at the helm of HR-and a woman.Today, just as President Barack Obama is a powerful and “visual” role model for change, the workplace needs women leaders to serve as visual role models-working and living from the core values of women everywhere. Organizations must embrace this need from the top, actively spotlighting female leaders who walk the talk and encouraging male leaders to outwardly support them.8. Measure efficacy.
Programs that support women-attracting, engaging, and retaining strong and skilled female talent-are essential to organizational success. It’s one thing, however, to develop and implement those programs; it’s another thing to evaluate them against key business measures or metrics. Commit to regularly assessing-quantitatively and qualitatively-how ongoing initiatives to support women impact business measures such as recruitment, retention, engagement, productivity, wellness, and more.Bottom line
Today, with a dramatically shifting workforce and do-or-die business environment, no employer can afford to ignore or overlook the unique needs and contributions of female talent. From the HR department to the executive suite, organizations must answer the call to action and support women in unprecedented new ways.

Two decades ago there wasn’t really any type of cyber law. Today, we can’t pick up a newspaper, without reading something about legal issues that involve the Internet, or the companies that do business there. The record and movie industry has been distraught over piracy, copyright infringement, and stolen intellectual property. And they have every right to be, but they aren’t taking it lying down.

In fact, we now see that many of the cyber laws on the books are there because the movie and record industry has sent their lobbyists to Washington DC to get laws passed to prevent this theft. Has it worked? Yes and no, the piracy still exists, and it is doubtful if it can all be stopped. The European Union has just come out with a new law to protect companies from individuals downloading without paying for movies, and songs.

Software companies are also being ripped off, and it’s not just in places like China where you might expect, a lot of stuff happens in the United States, and the Internet is worldwide, as we cross the digital divide. Sometimes people can’t afford songs or movies so they download from a website which has pirated the songs and movies, and then there are the people who build websites who distribute this material who find ways to get a hold of it, usually you legally themselves.

Recently there was a very interesting article on cyber law and one of the big problems in the Wall Street Journal. The article was titled “Warner Bros. Probes Online Leak of Potter” by Loren A.E. Schuker published on November 24, 2010.

It turns out that Warner Bros had their latest Harry Potter film stolen a full four days of head of its debut according to the article. Although the full movie was not available, the first 36 min. were, and the folks that love to play around with file-sharing were able to get it for free. Now then, I’d like to express my opinion on this topic – and then ask some questions, philosophically of course.

If the movie companies can’t get a return on their investment because their films and movies are stolen and given away for free, then they are less likely to spend big budgets on big movies in the future, because they will not be able to make a profit. Indeed, this creates a huge risk in the marketplace, and the reward is not there, if the work will only be stolen.

This is a detriment to not only the United States but also countries like Brazil and India who are also now making movies, along with China. How they protect their movie industries, as they will have the same problems as we do here. How much is at stake – hundreds of billions of dollars per year. That is well over the gross domestic product of at least 300 of the world’s nations – stolen in cyberspace.

Even though we have laws in the United States, the EU, and other countries it is doubtful that cyber law alone can stop this problem. It appears that cyber law is only keeping the honest people honest, and the criminals are moving around too fast to stop, even with the recent domain name repossessions by authorities. Please consider all this.

Many novice investors seek information regarding online investment opportunities. Of course, we all want an expert at our disposal. However, most of us cannot afford an expert. A wealth of knowledge is available on the internet for those of us who need the basics to get started. For many novice investors, it may be difficult to discern which sites offer credible information regarding investing. Our guide will discuss the information available for online investors.

Insider Trade Tips

Investors will research and find numerous sources of information regarding online investment opportunities. Investors may receive insider trader tips on a daily basis. This will help them determine which stocks are expected to perform well. Novice investors appreciate this type of advice. Often novice investors are not aware of how to predict which stocks will perform well based only upon news information or information about the business. These tips are especially useful when trading online without the direct help of an experienced investor. Trading software is also available to assist novice investors in making sound business decisions.

Investment Strategy Tips

Many websites offer individuals investment strategy tips on their website. The tips may be regarding stocks, bonds, Exchange Traded Funds (ETFs), commodities or other types of investments. Investors are given advice on how to invest in both a bull market and a bear market. The strategies are remarkably different. In a bear market, investors may tend toward safe investments with moderate growth. In bull markets, volatile investments may yield the most return on investment (ROI).

Online websites will also teach investors how to select sound investment opportunities. Market trends will be revealed to help investors make sound decisions regarding investing. Search for companies that offer investors free seminars and online forums. These webinars will teach investors the basics of investing.

Portfolio Diversification

Portfolio diversification strategies are also discussed online. Investors will be informed of the percentages that they should invest in various investments. For instance, experts recommend that approximately 35% of an investor’s portfolio be in precious metals. Precious metals are safe during a declining economy. The price of gold, for instance, rises when the economy is in decline. Investors should be aware of how to structure their portfolio to avoid catastrophic losses.

Investors will learn the difference between safe investments versus volatile investments. Mutual funds are an example of a safe investment. Stocks are a more volatile investment. The more volatile the stock, the more investors must watch the market to avoid losses. Recommended percentages of investments will be revealed through tips offered online. The information provided will be based on historical data, as well as, the current market state. Investors will learn how to identify opportunities, analyze investments, purchase investments and monitor investments.

Daily News and Streaming Quotes

Much of investing requires monitoring the daily news and predicting how political movements, business deals and the economy will affect a particular security. The financial status of a company and its leadership will also affect the stock prices. Acquisition of a new Chief Financial Officer, for instance, may signify growth and change within a company. This indicates that stock prices may increase. Therefore, investors could conclude to enter the market while the price is still low.

News sources that are offered real time are the best types of news sources. Investors will learn how various news releases will affect stocks. Investors should check new sources daily to determine how the news will affect their securities. Many websites offer DVDs to teach investors how to interpret news releases. Investors will find a wealth of knowledge that will move them forward in their investing career.

Market Analysis

Many online websites will analyze stocks and investments for investors. Websites are also available to select the top performers daily. These watch lists will help individuals make decisions with the help of experts who have knowledge of market trends. Other websites will offer daily stock picks to consumers. These individuals invest as a group, which seem to offer more security than investing alone.

Investments can be an integral part of your long term financial plans. Whether you are preparing for your children’s education, saving for retirement, or you have other plans for your money, investing is a great way to increase your financial resources. And so, a common question has emerged about investment and the benefits of real estate versus stocks. Real estate is generally regarded as the best type of investment, but just as you have a personal preference for chocolate or vanilla ice cream, your own personal interests, expectations, and preferences will influence your decision to invest in real estate business or stocks.

Historically, investment in properties has been considered the more stable option. Many investment professionals will probably tell you that this is the least risky investment; yet, despite real estate being the safest investment choice, it is not always the most profitable. Depending on the type of investment, there are potentially huge gains. If you had invested in beach front house in Vancouver’s Kistilano neighbourhood in the 1970s, you certainly scored an excellent investment. Likewise, had you purchased Microsoft or Apple stocks before these companies took off, it may be difficult to find any real estate investments that can compare. So then, how do you choose best investment? Let’s discuss some of the benefits of each type of investment.

Benefits

Many of us are more comfortable with investment in properties, because it is associated with a physical property that you can inhabit, renovate, and sell as your needs see fit. We also tend to identify with the importance of owning a home; so its type of investment is both a tangible and one associated with measures of success.

Some other benefits of real estate investment include:

You are less likely to be defrauded in this type of investment because you can evaluate your investment more thoroughly. You know the condition of the property and its current and potential value.

You can leverage real estate investment against debt more safely than stock market investments, and even if the value of your home or property depreciates, you still own that physical property.

Real estate investments provide an excellent hedge against inflation as property values increase along with costs of living and the purchasing power of your native currency.

Land investments can be developed to further increase your return on investment.

Investments in properties can immediately impact your cash flow through rental or leasing agreements.

Stock Benefits

While stocks are certainly the riskier of the two investment options, there are still some benefits that make stocks an attractive financial opportunity.

Stocks are a relatively effort free investment type.
High quality stocks reliably increase profits from year to year.
Dividends can be reinvested in your stock portfolio.

However, stocks also bring a number of drawbacks that make them less appealing, especially to more conservative investors. The stock market is tumultuous, especially in our current economic climate, and losses can be significant. Furthermore, stock prices are very difficult to predict, so knowing when to buy or sell stocks can pose a significant challenge. Ultimately, stocks are more suitable to experienced investors who have knowledge of the stock market; but for a stable, long-term investment that is unlikely to lose value, real estate is your best choice.

The right investment for achieving the stipulated purpose is quite challenging. What you need is focusing on your goal and monitoring every step taken. We will talk about the common proposes why people invest and investment options appropriate for them.

Fulfilment of Financial Targets

The foremost step is to set your financial targets or goals. For their fulfilment don’t just rely on long term investment, rather blend it with short term investment instruments. Taking an example, if you want to gift a bike to your son on his birthday, then it’s beneficial if you go for short term investment.

The pattern of investment changes with the desired goals. So set a goal first and then decide upon the investment accordingly. Also, decide upon the financial instrument, you want to fulfil your set target with, as there are many investment alternatives. Those, who prefer high returns rather than fixed interest income over a stipulated period of time, then they can go for riskier options such as growth stocks, shorting etc.

Investing for Retiring Rich

Retirement is one of the common reasons, people plan their investment for. The uncertainty associated with the sustenance of the pension system over the coming time period makes one investing for the same. Also, inflation is also one of the major reasons for planning retirement investment. In the scenarios, where your pension can get ceased or reduced due to certain reforms then retirement investment proves helpful to you. It is a long-term investment, in which majority of your capital is tied to the investment. Retirement portfolios contains blend of stocks, debt securities, index funds and other money market instruments. As the age of the investor progresses, the portfolio is altered with low-risk securities so as to ensure adequate returns.

Reasons for a Big “No-No” to Investing in Stocks

After discussing about the purposes to invest, now we will talk about the two major reasons that forbade investing.

Not having proper Knowledge

When you are not acquainted with the investment instruments thoroughly, then its better not to pool your money here and there, as it can ruin your investment. Unless you have sufficient knowledge about investing, don’t just throw your money chaotically. Take every move cautiously so as to make your investment productive.

Need to Get Out of Debt First

In case, you are already due with your debt payment, then in such a scenario, employ your surplus earnings in relieving off the borrowing. Let’s take an example. Suppose you have taken a $1500 loan at 9% interest and you get an increase in your salary worth the same amount, then instead investing the additional amount in other ventures, pay off the debt with the same. Investing in other sources could be beneficial if the return is equal or more to the interest amount of debt, which is not certain that you would get.

Conclusion Investment goals changes with the changes circumstances. So, watching out for every investment option available according to your purpose is the key. Keep altering your investment with your changing purposes. Otherwise, an investment with no purpose will be a failed one. But, having adequate knowledge about investing and investment tools will serve the purpose.

You have several options when it comes to choosing the your top long-term investments. Your choice depends on several factors like exactly how much you can afford to invest, what type of returns you are looking for and how long is long-term for you. But the most important thing to keep in mind is that you should invest in markets with which you are familiar. For instance you should understand how to invest in real estate before you opt for this market and not just jump in because everybody is saying that it is a good opportunity. The same holds true for any other investments.

Most people are attracted by the notion of a quick profit, but at least a part of your portfolio must include some long-term investments. You must be pragmatic about this. As your age increases, your income potential is likely to fall. Long-term investments will give you financial freedom after retirement. Whether it is medical expense or fulfilling a long cherished dream, you will be able to decide for yourself if you have made wise investments.

There are some negative sides to even the best long-term investments. When you have made an investment, your money is also blocked for a long time and you will not be able to access it before your investment matures. Apart from this, long-term market trends cannot always be predicted correctly. If your investment performs poorly, you are liable to lose all your money.

However, that is a common risk of every type of investment. Since we do not know what will be the condition of social security or Medicare in the future, it is safer to choose longer term investments.

There are many different avenues of investments. These include stocks, bonds, real estate, funds and precious metals. It is difficult to decide which of these would be the best long-term investments.

So, the golden rule of investment is that never invest in anything which you do not understand. Real estate is often a viable option, especially if you can locate a property with a lot of potential and can afford to buy it. You can remodel it and sell it for a profit. Renting can be quite lucrative depending upon the location of the property. It is recommended that real estate form at least a part of your long-term investment.

Stocks are another option, but except for certain well established companies, they are not a good bet for longer term investments. Bonds are generally less risky. Most experts recommend that precious metals like gold form a part of your long-term investment because it is the best available store of value.

Whichever option seems the best investment for you, you should follow a few ground rules. You need to be systematic about your investments. A good rule of thumb is to keep aside about 15% of your pay-check for investments each month. Finally, be careful when choosing your stockbroker or mortgage company so that your investment remains in safe hands.

Automotive adhesives are high performance structural glues that take very little time to cure and are capable of offering excellent bond strengths both to dissimilar and similar substrates. These cementing agents are created for improving vehicle performance and are also known for enhancing the car’s comfort and safety features by making it lighter. You can use these glues for completing a wide range of installation and repair jobs. They have both exterior and interior applications, for instance, you can use them to repair deck lid flanges, hoods, interior dashboards, doors and roof panels of cars. Automotive adhesives are formulated specially for sticking surfaces made from steel, aluminum and other metals together. They have emerged as perfect substitutes of mechanical fasteners and welds and have played big role in increasing the durability and reducing weight and manufacturing costs of modern-day vehicles.

What are the main reasons behind the popularity of these cementing agents? As mentioned in the section above, automotive adhesives are instrumental in replacing mechanical fasteners and welds to join different kinds of dissimilar and similar substrates. The main reason, for which they have become the most common choice when it comes to repairing vehicle parts, is: they don’t require priming or degreasing to join car parts. If you use these glues, you will not more be the victim of issues like failure and fatigue in areas surrounding the fasteners and welds. To know more about the reason behind the popularity of these cementing agents, get acquainted with their benefits:

• They are capable of increasing the overall stiffness of your car allowing it to offer improved acoustic performance and handling.

• These cementing materials are capable of decreasing costs by minimizing weld spots. When these adhesives are used, manufacturers can opt for mid-strength steels instead of using high-strength steels.

• Use of these cementing materials reduces weight of a vehicle significantly, which in turn decreases CO2 emissions.

• The durability of a car’s body and chassis increases notably after application of this glue type. This ability of the bonding agent makes it a perfect remedy for failure and fatigue found around the fasteners and spot welds.

• You can use these glues to successfully prevent occurrence of corrosion triggered by environmental conditions.

• The manufacturing procedures of the majority of the modern-day vehicles involve use of automotive adhesives. Laboratory analysis of these vehicles has revealed that use of structural adhesives make their parts more crash resistant and that too without increasing their overall body weight.