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Getting an auto loan rejected is a very traumatizing experience. This is because you normally have very high hopes of getting the auto financing to enable you purchase a car. Many people will agree that owning personal cars today is a matter of priority than it is a matter of making fashion statements. A car makes life not only convenient but efficient also. Getting auto loan credit rejections can therefore be a very terrible affair. This however, need not be the case if you went for bad credit auto loans. The majority of people who get auto loan applications rejected are people who have bad credit history. This is because conventional lending institutions are reluctant to lend to people with bad credit scores. The reason for this is because these lenders assume that your bad credit scores reflect on your bad loan repayment history. They therefore, fear that lending to you might result in you making default loan repayments. Bad credit history does not however, necessarily mean that you will not honor your loan obligations. This is the reason why bad credit auto loans are now being offered. The financing difficulties being experienced in the world has led to a rise in people with bad credit history. This has necessitated auto lending institutions to come up with arrangements to help meet the financial needs of this group of people. Bad credit lenders have therefore, come up in large numbers and made it easier for people with bad credit history to get bad credit auto loans. Therefore, whether you have good or bad credit history, you can just as easily get auto financing today, thanks to bad credit auto lenders. It is now left to people who know what they want, to and go and get bad credit auto loans.

Church loans often suffer from several problems, and as a result specialized business finance strategies are required. Typical church financing will involve multiple difficulties. Church loans are probably the most difficult form of commercial financing to successfully close. Churches are an integral part of local communities, so it is necessary to improve church financing solutions. In almost all cases financing will require a very specialized commercial real estate loan that is typically not widely available. Churches are not typical commercial enterprises but they do have substantial business financing requirements. This article will offer an overview of four key church loan financing difficulties and a listing of six practical church financing strategies. Four Major Church Financing and Business Finance Difficulties – Before addressing possible solutions for the most common church loan needs, it is important to discuss the typical barriers to obtaining appropriate financing. Historically church financing has been difficult to arrange for several reasons: (1) Church Loan Obstacle Number One: Church properties are unique. Lenders are therefore concerned that if commercial loan payments are not made in a timely manner and the lender is required to assume ownership of the property, it will be very difficult to find a new owner because of the unique property features. (2) Church Financing Difficulty Number Two: Commercial lenders usually require individual guarantors for church financing, and this is inappropriate for a church loan. The financial structure of churches simply does not lend itself to a traditional lender/guarantor approach. Many commercial lenders are not comfortable with the potential lack of individual guarantors because of the difficulty of reselling the church property if negative financial circumstances occur in the future. It is unfortunately very common for church financing to have been secured only after church members have authorized an individual guarantee for church financing. The need for individual guarantors acts as a serious barrier first because church members might be unwilling to do so and second because there might not be individuals who have enough financial resources to provide an individual guarantee for larger church financing needs. (3) Church Financing Difficulty Number Three: When church financing is obtained, there are frequently unacceptable business finance terms such as very small loans, low loan-to-value (LTV) of 50% to 60%, short-term loans and high interest rates. These onerous terms are tantamount to the church loan being declined, and if the terms are accepted, the church is likely to experience continuing financial difficulties due to unrealistic commercial mortgage requirements. (4) Church Financing Difficulty Number Four: Construction, renovation and land acquisition are even more difficult for churches to finance than purchases or refinancing. As a result, needed repairs are often postponed indefinitely and new churches frequently take many years to become a reality. Six Practical Church Loan and Commercial Mortgage Solutions – There are common-sense financing solutions for the church loan issues described above. Here is an overview of church financing that is now available from some non-traditional lenders: (1) Church Loan Financing Approach Number One: Non-Recourse Loans (instead of guarantors). As noted above, the willingness to forego traditional guarantors does require a non-traditional lender. With this church financing approach, church lending will not depend on individual guarantors. (2) Church Loan Solution Number Two: Long-term business loans. Church financing will be much more successful when it is long-term instead of short-term (payments will be reduced dramatically). (3) Church Loan Solution Number Three: Low interest rates (usually a maximum of prime plus 1-2%). In reality many churches have been taken advantage of and charged excessive interest rates because lenders perceived that they did not have any other realistic options. With payments limited to prime plus 1-2% or less, church financing payments will be noticeably reduced. In combination with longer-term loans, the overall payment reduction will make a significant contribution to church cash flow improvements. (4) Church Loan Solution Number Four: Church loan financing minimum of $500,000. This allows churches to complete most financing in one step rather than piecemeal over a period of years. (5) Church Loan Solution Number Five: Higher LTV (75%-90% is possible). This results in a more workable amount of 10% to 25% (rather than 40% to 50% with traditional church financing) for the down payment or non-financed portion in refinancing. (6) Church Loan Solution Number Six: Church financing can now include new construction, renovation, land acquisition, purchase and refinancing. Due to flexible church loan financing, it is not necessary for any of these important church loan activities to be postponed. Collectively the six church financing solutions described above should benefit a large number of churches by allowing refinancing with much better financial terms and by facilitating the construction of new churches on an accelerated timetable. The six church loan financing approaches should result in financial covenants that will contribute to the long-term financial profile of prudent churches which adhere to the church financing approaches suggested. Regardless of the practical business finance and commercial mortgage strategies that have been described above, it is appropriate to emphasize that arranging appropriate church financing will almost always be difficult. Due to the specialized nature of a church loan, unavoidable complications with the commercial real estate financing should be anticipated. As a result, prudent church borrowers should attempt to acquire a better understanding of these complex business loan issues.

Many times people who have bad credit history are not deliberate loan defaulters. Therefore, they would not automatically default on bad credit auto loans if they were offered this auto service. A good number of people with bad credit history are just as viable credit borrowers as those people with good credit history. They are just as likely to repay their loans as those with good history. Basically, anybody can get bad credit scores and therefore anybody can find that they need bad credit auto loans. Sometimes things that are beyond our control can lead us to make loan defaults. Sudden illnesses or accidents, for example, can shake our financial priorities and force us to miss on loan repayments, make late loan repayments or even be unable to service a particular loan. This however, does not mean that we necessarily have bad credit repayment habits. Therefore, there is nothing to be embarrassed about if you have bad credit history. You should not therefore shy away from seeking auto financing simply because you have bad credit history. The fact that many lending institutions have come up, after realizing that people with bad credit history are still viable borrowers, and are offering bad credit auto loans to people with bad credit history, makes things even more encouraging. Today, it is just as easy to get auto financing with bad credit scores as it is with good credit scores; if you took time to look in the right places. This means that your dream of purchasing a car can just as easily come true with or without good credit history. Even though people with bad credit history have limited willing auto lenders, they can still get bad credit auto loans just as easily. Whatever your situation is, go for the auto finance that best suits you.

Golf course loans and funeral home financing provide a particularly challenging set of circumstances for both refinancing and purchases. For most small business loan programs involving specialized properties like funeral homes and golf courses, the prevailing chaotic bank lending climate has made a bad situation even worse. These specialized businesses are among the most difficult small business finance situations for commercial borrowers.

Buying or refinancing a golf course or funeral home is usually difficult to finalize. Funeral home financing and golf course financing involve problems not found in most commercial loan situations. Refinancing for both of these business categories is likely to be more complicated than the original business financing for purchase.

Fewer Business Lenders – Golf Course and Funeral Home Financing

As a further complication for a difficult business loan for a golf course or funeral home, fewer business lenders are currently willing to offer competitive small business finance terms. There has recently been a noticeable shrinkage in regional and local banks which offer commercial mortgage programs for golf course loans and funeral home loans.

Buy a Business – Business Opportunity Financing

Business financing to buy a business opportunity is a special commercial loan variation in which commercial property is not purchased. In such a situation, the buildings and land are typically subject to a long-term lease. Similar to a conventional mortgage to buy a golf course or funeral home, competitive business opportunity financing is not easy to find.

Avoiding Problematic Commercial Mortgage Terms

Some regional and local banks will probably offer short-term business financing instead of a long-term business loan for golf course financing and funeral home financing. Another key term that can vary significantly is the percentage of value for the commercial financing. It is of critical importance to avoid undesirable commercial loan terms, especially commercial mortgage loan conditions involving length of loan and percentage of value when buying or refinancing a funeral home or golf course business.

Stated Income Business Financing Difficulties

Stated income small business loans (involving minimal or no income verification for the borrower) are not widely available for commercial real estate financing in the current restrictive lending conditions. The use of stated income business financing is not recommended for a funeral home loan or golf course loan, even though a stated income commercial loan has a certain number of benefits when available. A major limitation of a stated income commercial mortgage is the maximum amount which can be financed. A further limitation is the low percentage of value for stated income commercial financing involving either golf course financing or funeral home financing. In other words, a stated income approach to financing funeral homes and golf courses is not recommended even if it were an option.

When Commercial Real Estate Loan Value is Less Than Business Value

For golf course loans and funeral home loans, the commercial real estate loan value is often less than the business value. This is particularly true with a funeral home appraisal. The problem with this disparity is that many business lenders will provide a business loan that includes only the commercial mortgage loan value, and this will produce significantly reduced business financing.

Exorbitant Commercial Loan Fees for Funeral Home and Golf Course Financing

Business owners should be prepared for reasonable business financing fees during the beginning of the business loan process for golf course financing and funeral home financing. Several lenders are taking advantage of the shortage of commercial loan choices for building, purchasing and refinancing a golf course or funeral home. A common tactic is to charge excessive fees of $25,000 and more even if the commercial financing is not finished.

Fewer Commercial Lender Options for Funeral Home Loans and Golf Course Loans

As already noted, the availability of suitable lenders for this specialized type of business loan is shrinking. A viable commercial mortgage for funeral home financing or golf course financing will depend upon a prudent choice involving the lender. It is critical to select a lender with the ability to successfully complete the complex business loan process and at the same time avoid the commercial mortgage obstacles described earlier. It is important for a borrower seeking to buy a golf course or funeral home to be prepared in advance for the limited number of acceptable business financing lenders.

One Solution – Business Consulting and Small Business Finance Experts

In complex commercial loan and SBA business loan financing, the use of a small business finance consulting expert should be conducive to a better understanding of difficulties to anticipate. Since funeral home loans and golf course loans are among the more difficult commercial financing situations that a commercial borrower is likely to encounter, the use of preliminary business consulting should be helpful in obtaining better terms and avoiding serious problems.

 

 

There is still huge interest in the Mallorca property market with the most Savvy and serious buyers looking to buy property in Mallorca right now even though Mallorca doesn’t necessarily represent the best value in Spain for price per square meter, property type and location according to a recent Mallorca property market report carried out by the Spanish property experts Spanish Hot Properties.   Spanish Hot Properties carried out this report to find out why they were having a disproportionate amount of enquires for Mallorca some 30% of all enquiries being for Mallorca and this obviously not being representative of Spanish property market as a whole.   “What we found was that without a doubt was the Mallorca property buyers are the most serious and savvy in the whole of Spain and most importantly they want to buy and are in a position to buy which is quite different from some of the Costas where people may want to buy or are not in a position to buy.   What else we found was that the majority of the people looking to buy property in Mallorca were of the view that they would never get a better time to buy and most importantly believe that Mallorca property prices will bounce back way before any other part of Spain.   They also realized they could get much more property for there money in places such as Costa Blanca & Costa del Sol but believe the Kings Island of Mallorca was the best place to buy and that now is the time to buy” Explained Nick

 

PROPERTY BUYERS ARE HAPPY TO PUT TRUST IN SPANISH HOT PROPERTIES

 

Spanish Hot Properties business model is quite unique and different to most companies in that Spanish Hot Properties find there clients there ideal property first and worry about how much commission they earn from the transaction afterwards which is most definitely not the norm. So why do Spanish Hot Properties work this way? “Very simply our business model is based on referrals from existing clients and doing the right thing for the client.   In Mallorca our clients understand that we will show them properties that we have as direct listings and properties we have with other agents and after all the viewings are completed David our guy on the Island sits down with the clients and together helps the client make the right choice.   However this system obviously only works with clients who are happy to have us work the whole market for them and we even have some clients who actually show us a property on another agents website and we go and speak to the agent on there behalf.   However if you go to lots of agents those individual agents can only help you make a decision about there own listings and may have to put another property down from another agent that might have suited the client better in order to get the sale.   However the Spanish Hot Properties approach means we will always do the right things for our customers and most importantly we will always make something from the transaction which makes good business sense and most importantly we are then recommended by the clients who have used our service.   This is a model which we would love to adopt in other parts of Spain however up until now it is only our clients buying in Mallorca who can see the benefit of such a system” claimed Nick.

 

If you would like more information about the findings from the Spanish Hot Properties Mallorca business report or help in buying property in Mallorca then please feel free to contact Spanish Hot Properties by phone or email.

How to Secure Asset Finance for Soft Play Centres

When setting up your new Soft Play Centre, you are likely to require some form of funding in addition to your own personal investment into your venture. There are several ways to secure such funding and you will need to research each possibility to understand which is right for you and your business.

This document provides an overview of the principles behind Asset Financing, (only one of the funding methods available to soft play centres), so that you can be better informed to decide if this particular type of funding can be useful for you in your new venture.

It has been written by Alex Read, owner of Portman Asset Finance, a specialist finance provider in the soft play market.

Soft Play Finance

The current credit crunch has severely impacted all new start businesses looking for finance. Businesses considered to operate in a niche market such as soft play centres are finding it particularly difficult to source funding. Everyone is acutely aware that traditional high street funding is less and less readily available and thus more difficult to obtain cost effectively for new start businesses.

In this climate it can often be useful to speak to more specialised finance providers who have a thorough understanding of how soft play centres operate and are ideally positioned to help fund these new businesses.

However, asset finance is not suitable for every soft play centre it is important to understand some of the key principles behind it before you decide whether it is the right route for you.

Over Borrowing

One overriding principle is the importance of not over-borrowing to start your business. You must ensure you are not borrowing more than your business can afford. Many new soft play operators get caught up in the excitement of opening their new play centre and lose track of the figures. If you make a significant personal investment into your business and limit your business borrowings you’ll give your business the best possible chance of success.

Type of Finance Available

Soft play equipment finance is most typically arranged in the form of fixed or minimum period lease agreements. Lease payments are fixed i. e. they don’t go up or down and are easy to budget i. e. you know exactly how much is coming out of your account every month. In addition, a percentage of lease payments can be offset against corporation tax to reduce the amount of tax payable by your company.

There are other ways of financing equipment for your soft play business. Finance can be arranged in the form of a Hire Purchase (HP) agreement or a more traditional bank loan. The key difference between leasing and bank loan finance is the security required. A high street bank providing a loan will often require additional security in the form of a charge over a property whilst the equipment is usually the sole security in a lease agreement.

Some lease finance providers are now taking additional security i. e. first or second charges over property in addition to securing their finance against the soft play equipment. This is a direct result of the current economic climate and finance providers are now looking to secure their lending as tightly as possible.

Period of Agreement

Finance can typically be arranged over any period between 2 – 5 years although it is possible to arrange finance over 7 years if required. It is sensible to take finance over a period that is affordable. Here it is vital that you produce accurate cash flow forecasts that incorporate your finance payments. If your business is under financial pressure from day one, it will be difficult to recover in the longer term. It is often worth reducing your predicted revenues in your business plan by approximately 25% to double check you can afford the repayments and cover every eventuality.

The general consensus is that the length of your finance agreement should mirror the useful life of your equipment. If you think your soft play equipment will last you 5 years, then you should look to finance it over a 5 year period. You do not want to be paying finance payments for equipment you have subsequently replaced!

You must also consider that longer finance periods mean more interest to repay. It is a good idea to choose a period that your business can afford without spreading repayments over too long a term.

Criteria

Tenants i. e. non-home owners will not be able to secure funding unless they can arrange a suitable home-owning guarantor. The best option here is to speak to your finance provider who will advise you of the implications.

Most finance companies credit criteria are based on common sense; no one lends to people with current or recent mortgage arrears even if they have been brought up to date. Providers are also very cautious about unsatisfied Count Court Judgements (CCJS) and Directors who have declared themselves bankrupt in the past.

Generally you should either have experience in the leisure industry or at the very least, fully researched your new soft play centre business. A comprehensive business plan is a good indicator of someone’s personal investment of time into their business.

It is important to be as honest as possible with your finance company as they all carry out rigorous finance checks on the Director(s) of new start businesses. If you have had credit problems in the past, it’s best to explain in detail the circumstances.

You must also have of invested personal money into the business. If you have invested none of your own money, a lender is unlikely to lend you any money. You must commit personally to the business.

Documentation required

Although more difficult in the current economic climate, specialist finance providers are still able to assist new start soft play centre owners. In order to gain a finance approval they will commonly ask for the following information: business plan, financial projections, personal net worth statements for the Directors and personal bank statements for the Directors.

Asset Finance is one of a number of options to consider when trying to obtain funding to start an Indoor Soft Play Centre. The above information should be used as a guideline for general use and for specific information you can contact Portman Asset Finance on 0844 800 88 25.

Market Report | March 2010

BackgroundAlbany Portfolio Management (APM) was established early in 2009 to provide a broader base of investors with access to the fine wine market and operates in association with Albany Vintners, a highly renowned and long established wholesale fine wine merchant. APM has one simple objective; to add wealth to its customers.

2010 kicks off with a bang. . . The wine market has positively launched itself into the New Year with the Liv-Ex 100 – the industry’s benchmark index – up some 5. 8% by the end of February. The index has fully recovered from the credit crunch driven dip of late 08, and now sits tantalisingly close to its 2008 high (just 5% below). Notably Liv-ex’s Fine Wine Investables Index, which tracks the 24 wines most commonly found in an investment portfolio, hit an all time high at the end of January. Whether this pace can be maintained remains to be seen – at the current rate of growth we would find the market up by over 40% by the end of the year – but there is much cause to remain bullish. Whilst January’s growth (2. 7%) may have been bolstered by heavy buying in the lead up to the Chinese New Year, the subsequent higher increase in Feb (3%) is a sure consequence of mounting confidence and optimism. Crucially, demand from the now dominant Chinese and Asian markets continues to grow exponentially – the impact of which we cannot over emphasise.




The chart below documents the price performance for each of the wines recommended by APM during its first 12 months of trading from March 09 to Feb 10. All recommended wines have appreciated – some spectacularly – with prices having risen by an average of 23. 8% to date and continuing to grow at an annualised rate of 56. 8%. In the same period the Liv-Ex 100 has risen by 20. 9%.


Due to the growth rate remaining high the volume of early profit taking has been understandably modest with few clients electing to cash in on their investments. Those that did realised an average return net of all costs including our management fee of 13. 4% on an average hold of 6 months.




The ‘market price now’ figure is the average price for the various wines as reported on Liv-ex at the time of composition. Liv-ex draws market feed information from dozens of leading merchants, brokers & auction houses. Please note that this figure is for general guidance only and is intended to give an indicative price that one would pay for the same wines today.

The illiquid nature and ultra scarcity of some wines – notably Pétrus, Ausone & Le Pin – means that trading and availability is both narrow and sporadic. Indeed, at the time of composition, the market was devoid of Le Pin 00 and Liv-ex was not quoting an average price for Le Pin 01 or Petrus 08. We have used a reasonable alternative in each instance. The wines from these Châteaux have a tendency to appear inactive for periods of time followed by sudden and often dramatic ‘steps’ in their yield curves so prices in the market may vary wildly at certain times. We would suggest that the ‘market price now’ figure for Le Pin 04 is unrealistically high.  
Selection policy & portfolio composition

Selection policy & portfolio composition




APM’s aim is to identify low risk, high capital appreciation opportunities. In consequence our portfolios are built generally from the top Châteaux of Bordeaux (currently 93%) and Burgundy (7%). APM deals in well established, internationally renowned estates with a proven, demonstrable track record and ready secondary market. The wines are selected from the following categories:

     1. Bottled vintages approaching optimum drinking: As wines approach this important juncture in their lifespan they become more desirable leading to an increase in demand. They also display a helpful characteristic not seen in any other asset class; a perfect inverse supply curve. Each bottle drunk can never be replaced.

     2. En Primeur (wine futures): This is where the wine is still in the barrel and generally at its cheapest price. Highest potential for gain but traditional volatility and higher risk necessitate caution     3. Undervalued wines from recent vintages: We carefully track buying patterns, demand and fluctuations in taste (particularly from China) for wines from recent vintages to identify undervalued opportunities.   




APM is risk averse when it comes to New World wines due to narrow exit markets and lack of clarity in pricing. To date APM has not promoted the wines of any New World estate.  







Market Summary

The 1996 vintage, which forms the backbone of many of our clients’ portfolios, has dominated trading in the formative months of 2010, accounting for some 16% of trading on Liv-Ex in January. 1996 produced huge, complex and powerful wines in the Médoc that are held in the highest esteem by critics. These wines required long cellaring and patience and are only now entering their optimum drinking age; hence the increased attention. These wines are now being purchased to be consumed, further increasing their desirability, shortening supply and exerting upward pressure on prices. Only Lafite has so far has shown its true colours – appreciating by 36% since we first recommended it in July 09 – but trading was up across all 5 first growths in January with Latour taking the lead. We have been a touch disappointed with the comparatively modest appreciation to date for the Latour and Margaux (20. 6% & 22. 4% respectively) but feel sure that these are set to be shining stars for our clients in 2010. Latour 96 was Liv-Ex’s featured wine in their February market report.


Elsewhere, an interesting polarising effect in the market is developing. While top brands thrive there is a huge stock of lesser Bordeaux Château from respectable vintages (as well as poor Vintages) for which the buyers are rather thin on the ground. This gives two different pictures of the market with some Merchants and Négotiants struggling to survive whilst at the very top end the market forges ahead. This polarising effect has been compounded by the Diagio Châteaux & Estates sell off in the states, but it now seems safe that this will have little or no knock-on effect on the investment market.  




A rising star……. .

For some time we have been tipping Château Duhart-Milon-Rothschild which looks set for a very bright future. Until relatively recently the estate produced some pretty unspectacular wines and even the use of ‘Château’ in the moniker seemed a little optimistic; Duhart has no stone building on the estate, so ‘Large Shed’ would be a little more apt.

However, the estate was bought by the Rothschild dynasty in 1962, and following significant investment, new vines and a touch of Domaines Barons de Rothschild magic, quality has sharply improved, as has image and pedigree. Since 1999 Duhart has been under the control of Charles Chevalier, general manager of Lafite and credited with elevating the profile of its second wine, Carruades De Lafite, to such a degree that it is now considered the equal of the First Growths.

Couple this with a Rothschild re-branding and demand is going through the roof – particularly in China with her love of all things Rothschild.

We believe this wine will follow in the footsteps of Carruades De Lafite, which under Chevalier’s helm has enjoyed stratospheric growth (the 05 leapt from £500 to £2000 in the last two years alone). We first tipped Duhart 05 last year at £460 and continue to tip it today at £600.  

Hitachi Capital Invoice Finance

Your Guide to Invoice Finance

Hitachi Capital’s ‘Guide to Invoice Finance’ aims to help you understand the world of

invoice finance better, to get you through the industry jargon and enable you to consider

how invoice finance can really benefit your business.

There are so many different terms and references made when talking about invoice

finance, discounting or factoring, that it can become confusing. This guide aims to make

things much clearer for you and your business.

 

What is Invoice Finance?

Invoice finance, sometimes referred to as factoring, is simply a way of improving your

company’s cash flow. It is a method of raising cash against your business invoices

through a reputable finance company. Invoice finance allows you to increase your

working capital, whilst ensuring your business has the cash flow it needs to run

efficiently today and to survive and grow in the future. This is particularly important in

today’s business climate.

 

The difference between Invoice Factoring and Invoice Discounting

The differences between invoice factoring and invoice discounting are straightforward.

The service you choose depends on the needs of your business.

Invoice factoring is when a business assigns its customer invoices as well as

outsources the administration and debt management of its sales ledger to a finance

company like Hitachi Capital Invoice Finance.

This method has benefits for you and your business. It frees up your time to concentrate

on more productive issues instead of spending your time chasing payments. You can

also reduce administration overheads and it’s a better option than arranging an overdraft

with your bank. As your company grows, so does the available funding. You don’t even

need to negotiate new terms.

Invoice discounting is a funding only service, when a loan is simply provided by the

finance company, using the customer invoices as collateral. You retain control of your

invoice administration and debt management. The finance company is essentially an

invisible interface between you and your suppliers.

However If you choose confidential invoice discounting, the finance provider can handle

the credit control, in a confidential manner, so that your clients are unaware of the

involvement of the finance provider.

These methods of raising capital are usually more cost-effective than a bank loan or

overdraft. They’re not dependent on the company’s credit rating as the company’s book

debts are usually the only assets managed to secure funding.

Hitachi Capital Invoice Finance, Guide to Invoice Finance, Nov09

 

Benefits of using Invoice Finance

There are a number of reasons why you might choose invoice finance for your business.

Some of the benefits are outlined below. ;

1. Improves cash flow – cash flow is the lifeblood of your business, so it’s important

that it is managed effectively. Having access to money that is owed to your business

will allow you to be more competitive and to further grow the business.

2. Releases cash – invoice finance enables you to raise cash against your business

invoices, rather than having to wait weeks or months for payments.

3. Saves valuable time – your business is relieved of the administrative burden of

invoice management, allowing you to concentrate on other important elements of

your business.

4. Offers flexibility – invoice finance gives you better access to your finances, allowing

you to be more flexible. You can also negotiate prompt payment discounts from your

suppliers, giving you greater savings.

 

Step by step guide to the invoice finance process

In a nutshell, there are five simple steps to the invoice finance process.

1. You supply your goods or services to a customer and issue an invoice for payment.

With factored invoices, they are issued as payable to the finance company.

2. You send a copy of that invoice to the finance company who then pays the agreed

percentage advance against the invoice total, typically within a couple of days.

3. When your customer settles the invoice, payment will either be made direct to the

finance company or in the case of invoice discounting, the payment may need to be

made into a business account held with the lender.

4. The finance company then pays you the balance of the debt minus the agreed

service charges.

5. Monthly sales ledger statements are issued to the borrowing business by the finance

company.

Hitachi Capital Invoice Finance, Guide to Invoice Finance, Nov09

 

 

Why use Hitachi Capital Invoice Finance?

Hitachi Capital Invoice Finance Ltd is a subsidiary of Hitachi Capital (UK) PLC, part of

one of the world’s largest and most respected groups. We are independent of other

banking relationships, so our services will not impact your main bank or credit facilities.

Hitachi Capital is a member of The Asset Based Finance Association (ABFA) and an

independent financial company, so you can be certain that our invoice finance is

reputable and reliable. We offer our services to companies with a turnover between

£500,000 and £10,000,000, including phoenixes.

 

Contact Us Today

If you want to find out more about how invoice finance can benefit your business or

discuss a six month no obligation trial, contact one of our client managers today. We

are one of the only companies around offering this trial.

 

Call: Freephone on 0800 1105 005

Visit: www. hitachicapital. co. uk/invoicefinance

Email: invoice. finance@hitachicapital. co. uk

The 2009 Marbella Property Market Report

An up-to-date report on how the worldwide economic crisis is affecting the property market in Spain’s most important resort city.

By Christopher Clover, owner and Managing Director of Panorama, Marbella’s longest established Real Estate Agency

February, 2009

Before the critical events of September 2008 and the following months, the property market in Marbella was suffering severely, as throughout Spain and the rest of the world, especially in the lower end of the market, and especially with newly built properties.  

As the year advanced, it became clear that Spain’s own economy was nowhere nearly as strong as the politicians were announcing before the March elections. The “easy credit” which was a primary factor in fuelling the Spanish property “boom” of the mid-1990′s to 2006 had virtually dried up. Property companies started to go bankrupt, affecting the entire economy. The Bubble burst, hard times began with a bang and the repercussions ran deep.

On the Coast, the market for “off plan” touristic properties peaked in 2004 and has been on a descending curve since then, reaching crisis proportions last year. Nationally, the demand for new homes hit its peak in mid-2007, according to national statistics. Today, (with reliable statistics still lacking from the Government) the Bank of Bilbao Vizcaya Argentaria estimates that at the end of 2008 there was a glut of between 800,000 and 1,400,000 new unsold homes in Spain (19/12/08, http://prensa. bbva. com), including the Coastal properties, with an estimated 24,000 living units on the Costa del Sol (Diario Sur Domingo, 04/01/09), which will take years to be absorbed.

However, one cannot really analyse the market from the press reports which generally concentrate on new properties and the national market. There are different sectors belonging to different markets in different areas where there is a variance of some of the basic fundamentals at play, and one should not make the mistake of lopping every sector of every market in Spain into the same basket and reaching the same overall simplistic conclusion. For example, until September of last year, it went virtually unreported that the higher end of the luxury market, comprising mostly resale properties, had held up reasonably well, as elsewhere in the world, and the most expensive properties belonging to the Super Rich were even marginally increasing in value.   

The World Financial Meltdown, starting in mid-September, changed the scenario

The rapid slowdown commencing in September began to affect buyers of Luxury Residences not only in Marbella but globally, exacerbated by the credit crunch and the difficulty in obtaining mortgages. A very low volume of sales has characterized the market on all levels in general in the last quarter of the year.

How much have prices dropped from their peak prices?

The percentages stipulated in the following paragraphs are intended to be indicative in nature and are based upon the first hand experience of seasoned agents in the Marbella area who deal daily with buyers and sellers, including property developers.

Properties in this price range achieving the best prices in a shorter selling period are located in better areas, and are usually resales, have descended in value from 15% to usually not more than 25%.

 

Again, the same is true for the most expensive properties as the less expensive ones:  the better the location, the better the market, and the easier it is to sell.

The pricing of properties by their owners, in most price categories, is now far more realistic than in the past. This process has been complicated, as usual, by some agents who tell owners what they want to hear, rather than explaining the realities of the market. Most sellers, however, have already sharply reduced their original asking prices, but many potential buyers do not take this into consideration when they place an offer.

What is selling? 

Barbara Wood, in a well-written market report of Andalucia, stated recently “in the quality resale market it is not so much about over-supply but more a factor of how badly and how quickly does the seller need to get out that is driving the market. ”

There have obviously been sales since last September, but generally at substantially reduced prices, with the notable exception of truly unique properties which cannot be easily reproduced, or which a buyer has not wanted to risk losing by delaying. Many potential buyers think that vendors will drop their already reduced prices an additional 25% to 50%, without careful analysis of either the current market, intrinsic value, historical value, reproduction cost, or comparable sales being made right now. The result is that such offers simply throw a bucket of cold water on most sellers, and do not engage their interest to negotiate.

Other sales have been made between reasonable buyers (looking for a very good deal), and reasonable sellers, (looking to make a sale and move on, often to another property).   Further sales are being made by those willing to trade up or down.   These types of sales will continue throughout this difficult period.

Warren Buffet, who ranked number one on the World’s Billionaire list in 2008, said in an interview last November: “I don’t worry about the things that I really am not going to understand anyway. I worry about what’s important and knowable. ”

What is knowable about the property market in Marbella that will be important in the coming months?

1. The demand factor is still there. The number of potential purchasers enquiring about and visiting properties for sale in this area has not plummeted, as worldwide property market stagnation might suggest. Viewings have dropped around 25% over last year’s levels, as reported by the top agents in Marbella, coinciding exactly with Panorama’s statistics of its own activity. However, enquiries via the internet actually increased during the last quarter of 2008, with respect to DM Properties and Panorama. The difference is that very few offers are being made, and many of these are totally unrealistic, as mentioned above. What is selling is limited to either very sensibly priced properties or very special properties from the standpoint of location, quality of construction or architecture, where a willing seller is ready to sit with a willing buyer and a good agent and see if they can realistically come together in harmony.  

Strong supporting evidence of the still-present demand factor can be found in the study published last December by the company Globaledge (www. globaledge. co. uk).   Claimed as the “biggest ever” study into global demand for overseas property”, the study examined 1. 4 million English-language searches on Google using property and real estate keywords.

In essence, the study measured curiosity and Spain was clearly more interesting to Web surfers than any other destination, beating France into second place by more than a two-to-one margin.

Clearly there is a continuing and increasing demand of people who want to buy property in Marbella, waiting for the right time to move, and some of them will unquestionably act in the coming months. More than a few potential buyers, having located “the right property” for themselves and taken the decision to wait, will be disappointed when they decide to take action and find that their ideal property not only has been sold, but that there are no similar properties at similar prices on the market to replace it.

What else do we know for sure?

2. The off-plan purchaser has disappeared, for the foreseeable future, and will not be missed.   Speculators of this nature only distort the market place. The end-user has taken his place, a good sign of a healthier market to come.

3. Quality locations hold value best: The three most important words in buying property “location, location, location!” remain true. Prime locations in the Marbella area and everywhere in the world are holding property values and selling far better than non-consolidated and secondary locations.

An excellent illustration of the above can be taken with the Urbanization Marina Puente Romano, in the middle of the Golden Mile, beachside, and situated next to the famous hotel of the same name.   There are a total of 248 apartments in this magnificent estate.   Only 13 of them are for sale, at the date of this report.   And of these, only two owners have shown clear signs that they want to sell quickly, have dropped their asking price and are encouraging offers. La Zagaleta, located just outside the Marbella municipal boundaries, representing a quality estate environment virtually unique in Europe, has just 200 completed villas, amongst which only around 25 are for sale. Therefore, those potential buyers who place all sellers in the same category, and are expecting a deluge of properties for sale in the very best areas at rock bottom prices, are in for an unpleasant surprise.

4. Buyer insecurity is history: With the recent provisional approval of the new General Plan of Marbella, which is due to receive definitive approval later this year, buyers will not be responsible for developer’s sins, or failings of prior Municipal governments. Less than 400 living units are considered illegal under the new plan (compared with 19,000 before), and this phase of bad press and buyer insecurity is now virtually in the past.

5. Safe Haven seekers: Trust in banks and their investment products has declined. The stock market has burned so many people, that many will be unlikely to return. The logical alternative or “safe haven” for many will be that of well-located “bricks and mortar”, bought at rock bottom prices, as among the most effective medium for future long-term investment, especially when coupled with usage and the well-known life style factors which make Marbella unique in Europe.

6. After the crisis, inflation: Governments have embarked on immense deficit spending in an attempt to pump their economies out of recession. Along with other measures taken, this enormous amount of money just now starting to be spent will eventually assist in reviving economic activity. But inevitably, printing money, pump priming, will result in inflation, significant inflation, and the prime beneficiaries of inflation will be those who bought properties at prices which are now reaching lows never anticipated only a few months ago.

Sophisticated investor buyers who have seen the above rule work time and time again, are right now in the market, looking to pick up the highest quality real estate they can at the best price, and will continue to be present for at least another two years.

7. A concentration of Wealth: There is a tremendous amount of wealth concentrated in the Marbella area. Economically speaking, this area of Spain will be less affected compared to the rest of the country, due to the higher level of stability in the quality end of tourism, which is its number one industry, and in the so-called residential tourism resulting from the use of first and second homes by international part-time and full-time residents. Wealth attracts more wealth, and there are still lots of wealthy people in Europe who want to live all or part of the year in Marbella for well known reasons.

8. A multi-source market: Although the Marbella market includes a good percentage (easily over 30%) of Spaniards who represent the foundations of the market in the first instance, it is nevertheless substantially more international than it is national. It is a multi-source market. This diverse international market base is the biggest factor which distinguishes the Coast from the national market, and will provide strength for a quicker recovery.

9. British sellers are providing better deals: With the pound plummeting by over 25% of its value at the beginning of 2008, and over 40% since its peaks in the year 2000, many buyers are finding that the very best buys can often be found with British sellers, who count their assets in Pounds Sterling, and can afford to sell therefore for a lesser amount of Euros compared with Euro zone resident sellers.

 What about the future?

The Coastal market will probably start to recover during the last half of 2009, depending on the evolution of the current world situation, but certainly before the national market. However, this recovery will be very slow, and very gradual. One should anticipate at least three years minimum before the market can return to normal activity. In the context indicated, the beginning of a market recovery is defined as “a significant perception by the market of an increase in the volume of sales”. Price levels of course depend on the level of both supply and demand, and as buyers come back into the market in significant numbers, prices will gradually increase.

Why is it possible for a beginning of market recovery so soon?

When the last setback commenced in 1990, the beginning of market recovery took easily 4 years. The market then built up year after year, to a speculative fever commencing around the year 2000 and double digit annual price increases. However, Marbella today is not the Marbella of the early nineties, for the following reasons:

* In 1990, Marbella was seasonal in nature and had a real population (i. e. “off-season residents” including the floating population of people living here but not officially registered), of around 120,000 people. But when recovery was well underway, between 1995 and 1996, there were at least 150,000 people really living in Marbella off season. It was this “core population”, or critical mass of residents in the winter months which allowed Marbella to convert to a 12-month season, where restaurants, nightlife and sporting facilities could have enough business to remain open all year round. Today, this real population off season is estimated to be in the region of 225,000 inhabitants.

* A critical factor in making the above happen was the investment of hundreds of millions of Euros in infrastructure, improvements and new facilities of all types, both by the municipal government of the early Mayor Gil years, as well as by private investment which Gil was influential in attracting to the city. These were the “show business” years of the early Gil government.

* Events and their repercussions move today at lightning speed compared with just twenty years ago, due to “globalization”, interdependence of economies and the speed of communication. As the prices in Marbella reach their lower limits, which is happening already in some categories and in “distress sales”, the word will spread instantly and those who have been waiting to buy will come into the marketplace, which will be the start of what will no doubt be a long period before returning to normal market activity.

* But the most important factor is that there is just not a great number of quality apartments and villas out there for sale in the best areas, i. e. there is a limited supply. Marbella is not, in terms of numbers of villas or apartments, the West End of London, or Paris, or New York. The last official statistics date from the year 2001 census of the Instituto Nacional de Estadística, just at the beginning of the explosion of growth and building fever in Marbella and throughout Spain, and estimate that there were 80,172 living units in Marbella in that year. Extrapolating by the number of building licences granted in the interim period until now, there are only about 105,000 villas, townhouses and apartments in all of Marbella today. Of these 105,000 dwellings, in very rough terms, about 25% would be rated in the luxury end of the market, let us say properties priced over €500,000, and in quality, homogeneous residential areas. And of these, how many might be for sale? Certainly not more than between 5% minimum and 15% maximum. If one takes an overall estimate of 15% on average for all of the quality end of the market in the previously mentioned price range, that would give us only around 4,000 units for sale. Compare that with the estimate of between 800,000 and 1,400,000 unsold living units in Spain quoted earlier, and it is easy to see why we are talking about a different market sector.

It is for the above reasons, therefore, that it is probable that the market will start to lift off later this year. But, in the meantime, before this recovery commences, a gradually increasing volume of sales will be made, generally to buyers who have decided they do not want to postpone their plans further. Generally speaking, the type of properties they will purchase will be well-priced, or viewed as excellent buys for their location, price, condition and lifestyle factor, or rare and unique properties which cannot easily be reproduced. A good agent will have these properties on his books and the knowledge and skill to help the buyer negotiate successfully with the seller.  

There are of course conditions to securing a solid, long-term recovery. Apart from the obvious financial liquidity necessary for the beginning of a world economic upturn, these comprise: transparent, corruption-free and efficient local governments (this is certainly happening now in Marbella with the brilliant management ability and transparency of Marbella’s new Mayoress Ángeles Muñoz and her team); better public services and communication along with increasingly good infrastructure, which has already been ensured by the Regional Government and recent municipal grants by the National Government to the Town Halls; and greater care of our environment for which, finally, all levels of government are bearing the responsibility, as is apparent in the new territorial plan and urban plans for this part of the Coast.

Provided the above comes to bear, and there is solid evidence to this end, Marbella will not only come out of the current recession stronger than before, but will set the standard for other quality resort cities worldwide.

By Christopher Clover

Copyright © 2009 Panorama Properties S. L.

All rights reserved.

Christopher Clover is graduate with distinction in Economics of the University of Virginia (1969); a permanent resident of Marbella since 1973; and the founder, owner and Managing Director of Marbella’s longest established Real Estate Agency, PANORAMA, with offices opposite the

HOTEL MARBELLA CLUB and in the HOTEL PUENTE ROMANO

info@panorama. es         www. panorama. es

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://www. commercialfinance. org. auHOW TO HELP YOUR COMMERCIAL FINANCE APPLICATION SUCCEED -THE THREE CRITICAL FACTORSThese days, whether you are borrowing $500,000 for your first Propery Development or Refinancing a $50,000,000 Equity Line of Credit, it’s all about a few critical factors in determining the Funding Application outcomes. Understanding these will give you a much improved chance of obtaining commercial funding. RISK: It may well be a great Project, but if there are delays, cost increases, lower Sale prices, how will the Lender recover their money?REWARD: See above. Lenders actually lend money to make a profit. Sounds obvious, but many borrowers forget this at their peril. EQUITY: If you can demonstrate you have a significant amount of your own funds invested in the Project it always helps in getting to the front of the queue. After all, if the Lender wanted to build anything from a Rainforest Retreat in the jungle to an Apartment Complex in Adelaide using 80%, 90%, or 100% of borrowed funds , they could do it themselves. SUMMARY: Various weighting factors & averages are applied to all the above. Knowing how to present this information is a key element, and can add much to your chances of success. http://www. commercialfinance. org. auFINANCE BROKERS! *We have an excellent program to assist you*Finance Broker Support   (“ABR” program)Commercial Finance Comparison Lenders offers a full service back-office and deal management solution for professional finance brokers ( i. e. professionals engaged in regularly arranging finance on behalf of clients, for reward ). The principle behind this service offering is that a professional finance broker is able to focus on obtaining and maintaining clients / relationships, while Commercial Finance Lenders handles the “admin” or “packaging” and “follow-up” elements of an application. Professional finance brokers interested in this service are invited to join the Finance Broker Support program as an Authorised Business Referrer ( “ABR” ), and instantly receive the benefits of our complete back-office support structure. Our ABR network is growing to be one of the largest in the country – and the value of being part of a winning team under a recognised brand is becoming more and more critical for any independent broker or arranger of finance wanting to survive in this changing economic climate!How does one go about submitting finance applications through Commercial Finance Lenders as an Authorised Business Referrer ( “ABR” )? Simply follow the three steps below, and Commercial Finance Lenders would be delighted to assist with your clients’ applications: 1. Apply with us to Register as an “Authorised Business Referrer”, and you will receive contact from our office within one business day; 2. We may require some basic information ( profile / brief CV + registration / MFAA information ), and upon receipt / approval will activate your ABR registration. Registration is free and instant (upon activation ); 3. Submit applications on behalf of clients – Simply log in ( if you haven’t already ) and complete the very basic one page finance application / information form.  How does the submission of client transactions / applications work in practice? Commercial Finance Lenders simply requires an ABR to log in and complete + submit the basic one page application / information form; We ask the ABR only to forward us a signed mandate ( generated automatically when the deal / application is logged ), and any documentation they may already have in respect of the client / deal. Thereafter, we are happy to liaise with the client ( i. e. the person requiring finance ), provide advice, collect all required documentation for submission to appropriate financiers / capital providers, and manage the sign-up / closing of the transaction. We are able to advise clients at the outset ( i. e. upon initial receipt of the application and supporting documentation ) as to the prospects of success of their application. In cases for example where we are aware of circumstances ( from experience ) that mean a client’s application is highly unlikely to be successful, we are able to save the client the time and trouble of submission and follow up. We are often also able to suggest alternative structures of products which may in the circumstances accomplish the same result for the client. All communications with the client are typically copied to the ABR, and the ABR is sent regular weekly updates on the progress of all transactions / submissions; Should the ABR prefer us not to deal with the client ( i. e. for all communication to flow solely through the ABR ), this can be accommodated, but the ABR needs to make specific note of this when submitting the application to Commercial Finance Lenders. We do caution however that this tends to slow down the process, and we find this defeats a great deal of the benefit to the ABR from our offering ( i. e. the ABR still needs to be actively involved in the packaging / submission of applications ). What information / documentation is necessary from my client, in order for an application to be submitted by Commercial Finance Lenders? Although each financial product or capital structure to be arranged may have a unique or specialised ‘recipe’ of required documentation, most applications or capital structures will require the submission of at least the following basic five items of standard documentation, eg: full personal & company A & L , Project Cashflow, Business Plan, completed Questionaire & Application. What benefits are there for a professional finance broker in joining our ABR Programme? Independent or even affiliated finance brokers who join Commercial Finance Lenders as ABR’s, receive the following advantages: Credit markets and financiers have become very conservative, given the global credit crisis and volatility in the world’s financial markets. Approval rates for applications for most forms of finance have halved ( or worse ), and now more than ever an application for finance needs to be diligently and skilfully prepared / packaged in order to stand a chance of being approved; Our team is specifically skilled and experienced in this aspect, and is able to seamlessly add this value to any application referred through Commercial Finance Lenders. Commercial Finance Lenders & associated Partners has contractual relationships to provide business to more than 30 various financial institutions and capital providers, many of whom may be more aggressive or have a specific appetite for a particular type of finance. We are uniquely able to analyse any application, and submit it to the most appropriate financier or capital provider ( and often are able to submit to multiple financiers ). This ensures the best possible chance of a successful application for your client. Due to the volume of applications submitted by Commercial Finance Lenders to financiers, we are usually able to obtain better service and turnarounds than our ABRs or their clients may be able to alone. In this way, your clients benefit from our aggregated input to banks / institutions and clients’ applications are taken seriously. In addition, in this market we find that Banks and Financiers are not prepared to accept referred applications, unless a broker has a very significant deal flow, and they have pulled / cancelled referral contracts with all but the largest volume referrers. What fees or commission can I earn as an Authorised Business Referrer? The ABR business model is very simple – 50% of the commission or fee actually received by Commercial Finance Lenders in respect of a successful transaction or application, is shared with the ABR who referred the transaction or application. Higher percentages are shared with the ABR in circumstances where monthly finance volumes exceed certain thresholds; It should be noted however that further terms and conditions may apply and are governed by specific contractual agreement to be entered into between Commercial Finance Lenders and the ABR. Does my client pay more if the deal / application is referred through the ABR Program? No – Commercial Finance Lenders shares its income with the ABR, and the client does not pay any more by virtue of being introduced by an ABR; What does it cost my client to have Commercial Finance Lenders assist with a finance application? We work purely on risk – i. e. there is no fee or commission earned by Commercial Finance Lenders (or therefore by an ABR ) unless an application is successful in receiving an offer. In respect of a number of the more complex finance applications ( such as Commercial Property Finance ), we may charge a service / funding fee in the order of 1. 5% to 2. 5% ( excluding GST ) of the principal value originated. This would however be communicated prior to submission to financiers ( after initial evaluation by us of the application ), and it would naturally be up to the client to accept or reject our proposed fee – in any event, this fee would be the same as would be charged on personal application by the client. It should be noted that any fee raised by Commercial Finance Lenders on this basis is completely separate from fees levied by the financiers, who may well charge their own raising or documentation fee. DON’T DELAY -TOLLFREE CALL TODAY! In Australia 1300 776 703http://www. commercialfinance. org. au

The stock market is a wonderful place to play with your money. A good investment can change your finances so drastically; you will have a hard time recognizing it yourself.

At the same time, a small mistake can actually cost you more than you are willing to risk. The problem is if you do not know which stocks to look for and how to approach these while limiting your risk, you would not be able to get considerable profits.

Natalia Osorio Editor of the “Best Stock Trading” website — http://www. BestStockTradingUsa. com — pointed out;

“…The best way of going about this is to watch out for stock market reports. The stock market report contains technical and fundamental analysis used by brokers and professional investors. They use this to interpret the direction and valuation of equity markets or stocks.

The report provides a synopsis of the stock market from different points-of-view. They contain charts and texts of daily data of the performance of stocks in the market allowing traders to evaluate their stock portfolio…”

They provide long-term views on certain stocks, predictions on how stocks will perform over the course of a day, weeks or even a year. They also provide reports on certain factors that will affect the performance of these stocks.

Stock market reports are provided by a lot of sources. Brokers provide their clients special reports of certain stocks currently in the market. This allows their clients to make decisions with regards to then buying and selling of stocks.

Certain brokerage services also provide these reports for subscription. Most of these contain stock picks for active trading or long-term investments. Other tips offered are entry and exit strategies, stock market commentaries, analysis, trading and investigation education.

Analysis of the stock market is also provided in business programs in television, cable, and newsprint as well as online portals.

Business programs in cable provide the most current and up-to-date information on stock performance. Reports are made on gainers and losers throughout the trading hours.

Online portals providing financial reports and stock market analysis are also good sources of stock performance information.

“…Much of the information you will need over the course of your trading experience will come from stock market reports. So it is best to choose a good source of these reports for yourself. Reputable institutions will provide you the best information in the market.

Keeping yourself well-informed with stock market reports will provide you the best chance of making the most out of your trading. It will give you a more definite and clear view on the stock market and enable you to make intelligent decisions with minimal risk…” N. Osorio added.

Further Information About The Best Stock Trading Course And Additional Resources  By Visiting; http://www. BestStockTradingUsa. com

http://www. commercialfinance. org. au

HOW TO HELP YOUR FINANCE APPLICATION SUCCEED -THE THREE CRITICAL FACTORS

These days, whether you are borrowing $500,000 for your first Propery Development or

Refinancing a $50,000,000 Equity Line of Credit, it’s all about a few critical factors in determining the Funding Application outcomes. Understanding these will give you a much improved chance of obtaining commercial funding.

RISK: It may well be a great Project, but if there are delays, cost increases, lower Sale prices, how will the Lender recover their money?

REWARD: See above. Lenders actually lend money to make a profit. Sounds obvious, but many borrowers forget this at their peril.

EQUITY: If you can demonstrate you have a significant amount of your own funds invested in the Project it always helps in getting to the front of the queue. After all, if the Lender wanted to build anything from a Rainforest Retreat in the jungle to an Apartment Complex in Adelaide using 80%, 90%, or 100% of borrowed funds , they could do it themselves.

SUMMARY: Various weighting factors & averages are applied to all the above. Knowing how to present this information is a key element, and can add much to your chances of success.

http://www. commercialfinance. org. au

FINANCE BROKERS! *We have an excellent program to assist you*

Finance Broker Support   (“ABR” program)

Commercial Finance Comparison Lenders offers a full service back-office and deal management solution for professional finance brokers ( i. e. professionals engaged in regularly arranging finance on behalf of clients, for reward ).

The principle behind this service offering is that a professional finance broker is able to focus on obtaining and maintaining clients / relationships, while Commercial Finance Lenders handles the “admin” or “packaging” and “follow-up” elements of an application.

Professional finance brokers interested in this service are invited to join the Finance Broker Support program as an Authorised Business Referrer ( “ABR” ), and instantly receive the benefits of our complete back-office support structure. Our ABR network is growing to be one of the largest in the country – and the value of being part of a winning team under a recognised brand is

becoming more and more critical for any independent broker or arranger of finance wanting to survive in this changing economic climate!

How does one go about submitting finance applications through Commercial Finance Lenders as an Authorised Business Referrer ( “ABR” )?

Simply follow the three steps below, and Commercial Finance Lenders would be delighted to assist with your clients’ applications:

1. Apply with us to Register as an “Authorised Business Referrer”, and you will receive contact from our office within one business day;

2. We may require some basic information ( profile / brief CV + registration / MFAA information ), and upon receipt / approval will activate your ABR registration. Registration is free and instant (upon activation );

3. Submit applications on behalf of clients – Simply log in ( if you haven’t already ) and complete the very basic one page finance application / information form.

How does the submission of client transactions / applications work in practice? Commercial Finance Lenders simply requires an ABR to log in and complete + submit the basic one page application / information form; We ask the ABR only to forward us a signed mandate ( generated automatically when the deal / application is logged ), and any documentation they may already have in respect of the client / deal.

Thereafter, we are happy to liaise with the client ( i. e. the person requiring finance ), provide advice, collect all required documentation for submission to appropriate financiers / capital providers, and manage the sign-up / closing of the transaction. We are able to advise clients at the outset ( i. e. upon initial receipt of the application and supporting documentation ) as to the prospects of success of their application.

In cases for example where we are aware of circumstances ( from experience ) that mean a client’s application is highly unlikely to be successful, we are able to save the client the time and trouble of submission and follow up. We are often also able to suggest alternative structures of products which may in the circumstances accomplish the same result for the client.

All communications with the client are typically copied to the ABR, and the ABR is sent regular weekly updates on the progress of all transactions / submissions; Should the ABR prefer us not to deal with the client ( i. e. for all communication to flow solely through the ABR ), this can be accommodated, but the ABR needs to make specific note of this when submitting the application to Commercial Finance Lenders. We do caution however that this tends to slow down the process, and we find this defeats a great deal of the benefit to the ABR from our offering ( i. e. the

ABR still needs to be actively involved in the packaging / submission of applications ).

What information / documentation is necessary from my client, in order for an application to be submitted by Commercial Finance Lenders? Although each financial product or capital structure to be arranged may have a unique or specialised ‘recipe’ of required documentation, most applications or capital structures will require the submission of at least the following basic five items of standard documentation, eg: full personal & company A & L , Project Cashflow, Business Plan, completed Questionaire & Application.

What benefits are there for a professional finance broker in joining our ABR Programme?

Independent or even affiliated finance brokers who join Commercial Finance Lenders as ABR’s, receive the following advantages: Credit markets and financiers have become very conservative, given the global credit crisis and volatility in the world’s financial markets.

Approval rates for applications for most forms of finance have halved ( or worse ), and now more than ever an application for finance needs to be diligently and skilfully prepared / packaged in order to stand a chance of being approved; Our team is specifically skilled and experienced in this aspect, and is able to seamlessly add this value to any application referred through Commercial

Finance Lenders.

Commercial Finance Lenders & associated Partners has contractual relationships to provide business to more than 30 various financial institutions and capital providers, many of whom may be more aggressive or have a specific appetite for a particular type of finance.

We are uniquely able to analyse any application, and submit it to the most appropriate financier or capital provider ( and often are able to submit to multiple financiers ). This ensures the best possible chance of a successful application for your client. Due to the volume of applications submitted by Commercial Finance Lenders to financiers, we are usually able to obtain better service and turnarounds than our ABRs or their clients may be able to alone. In this way, your clients benefit from our aggregated input to banks / institutions and clients’ applications are taken seriously.

In addition, in this market we find that Banks and Financiers are not prepared to accept referred applications, unless a broker has a very significant deal flow, and they have pulled / cancelled referral contracts with all but the largest volume referrers.

What fees or commission can I earn as an Authorised Business Referrer?

The ABR business model is very simple – 50% of the commission or fee actually received by Commercial Finance Lenders in respect of a successful transaction or application, is shared with the ABR who referred the transaction or application.

Higher percentages are shared with the ABR in circumstances where monthly finance volumes exceed certain thresholds;

It should be noted however that further terms and conditions may apply and are governed by specific contractual agreement to be entered into between Commercial Finance Lenders and the ABR.

Does my client pay more if the deal / application is referred through the ABR Program?

No – Commercial Finance Lenders shares its income with the ABR, and the client does not pay any more by virtue of being introduced by an ABR;

What does it cost my client to have Commercial Finance Lenders assist with a finance

application?

We work purely on risk – i. e. there is no fee or commission earned by Commercial Finance Lenders (or therefore by an ABR ) unless an application is successful in receiving an offer.

In respect of a number of the more complex finance applications ( such as Commercial Property Finance ), we may charge a service / funding fee in the order of 1. 5% to 2. 5% ( excluding GST ) of the principal value originated. This would however be communicated prior to submission to financiers ( after initial evaluation by us of the application ), and it would naturally be up to the client to accept or reject our proposed fee – in any event, this fee would be the same as would be charged on personal application by the client.

It should be noted that any fee raised by Commercial Finance Lenders on this basis is completely separate from fees levied by the financiers, who may well charge their own raising or documentation fee.

DON’T DELAY -TOLLFREE CALL TODAY!

In Australia 1300 776 703

http://www. commercialfinance. org. au

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled. The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

There are significant opportunities in Finance Functions within Police Forces to be transformed from a silo based culture that focuses largely on transactional activities to a process and metric based culture equally focusing on transactional processing, management information and strategic requirements. This transformation can deliver large cost savings, service improvement and better quality, faster processing.

Car buying has grown simpler by the time due to growth of car finance schemes. Financing your car appropriately takes into account your financial conditions and repayment capacity before giving you a car finance loan. Car financing is practical method to buy a car. Your can become a car owner in less time and own your kind of car at your kind of interest rates. With so many car finance options, there is one for every one.

100 percent financing – Many finance companies offer 100 percent financing for the cost of software and maintenance contracts, which requires no down payment. Because customers don’t have to come up with a down payment, they can make a purchase immediately, rather than hold up the sale with a “wait and see” mentality that often accompanies a dip into cash reserves. It also allows your customers to invest more capital in revenue-generating activities.

Several specialized mortgage finance institutions offer mortgage finance products to home buyers. These savings and loan mortgage finance institutions were also called thrift associations because lenders take in deposits of their savers and use the money to make mortgage finance and loan products.

One of the most misunderstood concepts about leasing or buying a new car with a loan is how the financing really works. We’ll say it again later, but the key concept to understand is that dealers do not finance car leases and loans. Repeat: New-car dealers do not finance cars. However, dealers can affect what you pay for financing.

Accounts Receivable Financing- “Don’t Worry, Be Happy” explores the issues of notification vs non-notification accounts receivable financing, why some businesses fear that their customers may learn that they are using factoring services, and why worrying about these concerns is usually not justified. Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.

Financing a car is a very important process and today with the availability of numerous car finance brokers it has become an easy option to get secure car loans. Today these car finance brokers are playing a vital role in assisting car buyers as well. In this article, know more about various important factors that you should keep in mind while making a selection of a car finance broker.

Are you having a financial business website? Are you happy with the return of your investment in developing the website? I mean to say is the site focused to showcase your business? If the case is otherwise, you are in need of one of the best finance website templates. There are many excellent finance web templates available in the template shops. The matter of success hides inside your wise decision.

Bad credit computer financing is often taken as something that does not have much range of products to offer. But reading about bad credit computer financing will open you eyes to the fact that the options with bad credit computer financing are no less. Acquaintance with your own credit status will definitely give you a chance to get a bad credit computer financing at rate of interest that your credit status warrants. Help yourself with bad credit computer financing with doing the right research.

Let’s take a look at the facts: Housing prices are rising at a clip of 10-15% per year, tuition costs are rising by an average of 10% each fall, and energy costs – well, the average rise in prices depends on the week you happen to be looking at, but double-digit increases have been the norm for the past few years. And now, the really depressing fact: Average wage increases have hovered between a measly 3 and 4 percent for the past three years. Now what, you ask, does any of this have to do with car financing?

Sometimes, even car dealers that work with bad credit can give you a really hard time about getting approved for car loan. This can be really frustrating because you feel like you’ve been to where you need to go to get approved and you still get declined for car finance. What gives? Should you use a buy here pay here dealership or try to find other car lots that accept bad credit? It can seem like there is nowhere to turn.

The good news is that even though car dealers that supposedly accept bad credit, turned you down is that there are places that you can go on the Internet that will approve you for an auto loan based upon your monthly income.

Your payment is approved based on what you make each month at your job and these types of lenders will work with you. Rather than just seeing you as a number, they take more into account than just your credit score. This is a big relief for a lot of people that have had a hard time getting approved and have been declined car finance.

The reason that many car dealers that deal with bad credit they turn you down, is that even though they may specialize in people with bad credit, they made simply not have the lenders needed. There are so many different types of auto finance lenders that it can make your head spin. With the way that the economy has been going lately, more and more subprime auto finance companies are doing less and less business with car dealerships. You can get a much better deal and much better terms arranging your financing online with a legitimate car loan company.

CONTENTS

GIFTS

WRINTING FOR THE INTERNET

SCAMS LISTED

HIJACKERS

VANCATION

INTERENT AUCTIONS

LIGHTSIDE

MODEM DIALLING

MML’S

SCARY

IDENTITY THIEF

WHOLESALE, DROP SHIP

Writing for the Internet is very different, then writing a research or term paper.   You cater to a specific market; people who do not have the time to spend reading a 1500 word article and find only one or two helpful tips. Information that will be easy to understand and people will be able to relate with.

Good English, or fancy technical writing that people would have to consult a dictionary just to grasp your thoughts, are of no help to a person who is marketing on the Internet.   You have to create functional articles that will be easy to understand and people will be able to relate with.

People are looking for how to, where to find information that will be helpful in their everyday marketing. They want to find it on one spot if possible and not spend hours looking for it.

Have a list of your contents, keep your writing to short paragraphs intended for easy reading, this will make it helpful for those who don’t really have the time and are just scanning for information that is helpful.

Such knowledge should be useful to them and will make them interested in reading your future articles as well as your other products and services.

The odd good joke in the middle of your article helps to break the steady reading of information, and gives the person a chance to have a good laugh too.

HIGHJACKERSHave you had your homepage and all your settings changed?You can waste a lot of time trying to figure out what has gone wrong, even having to make a service call. It can be a headache. Hijacking may not be as scary as a virus, but it still has its downfalls. If you ever get caught in a hijack, there are some pretty simple ways to fix them. To fix the search hijack, open Internet Explorer and go to Tools, Options, Programs tab. You will see listing of some of your Internet services.   In the bottom left hand corner, there is a button that says “Reset Web Settings. ” Click that and the registry keys will be renewed. Click OK when you’re finished. Protect yourself from spoof (fake) emails and Web sites. Take the Spoof Tutorial to learn about eBay Toolbar with Account Guard, which warns you when you are on a known spoof site. For more safe buying tips, please visit the Safety Centrehttp:// pages. ebay. ca/securitycentre/buying_safely. html

Help On Vacation Scam

Individuals’ e-mail/or social networking accounts being compromised and used to swindle consumers out of thousands of dollars. Portraying to be the victim, the hacker uses the victim’s account to send a notice to their contacts. The notice claims the victim is in immediate need of money due to being robbed of their credit cards, passport, money, and cell phone; leaving them stranded in Vancouver or some other location.

Some claim they only have a few days to pay their hotel bill and promise to reimburse upon their return home. A sense of urgency to help their friend/contact may cause the recipient to fail to validate the claim, increasing the likelihood of them falling for this scam.

If you receive a similar notice and are not sure it is a scam, you should always verify the information before sending any money.

If you have been a victim of this type of scam or any other Cyber crime, you can report it to the IC3 website at: www. IC3. gov.

I have to admit I fell for a similar scam, only it happen at my house.   I answered the door and found a nice looking well dressed young man, who explained he was embarrassed, but found himself in a tight bind.   He had been visiting one of his relatives who lived on the same street as me.   He left their house and his car broke down a few blocks away.    He walked back to his relative’s house but they had gone out. He had to go to the airport to pick up a sister, but was short $35. 00 for a used battery.

Could I please lend him the $35. 00 for the battery, and after he picked up his sister he would either bring the money back that evening or get his uncle who lives on my block to bring the cash over.   You guessed right.   He didn’t bring the money back, and he didn’t have an uncle who lived on my street.   His scam was he would find out the name of one of your neighbours, make sure they were not home, and then went door to door with his scam.

LIGHTSIDEDuring World War 2, a soldier arrived at the city but found all hotel rooms taken. He begged the desk clerk for anything.   The hotel clerk said he had a double, there was a navy guy in it, but persons in rooms next to him said he snored so loud it was hard to sleep. The soldier agreed to take it.   When the soldier came down for breakfasts the manager asked, “How did you sleep”?  “Great” replied the soldier. “no problem with the other guy snoring all night”? Asked the manger. “No I shut him up in no time” replied the soldier. “How did you manage that?” asked the manager. “Well he was in bed snoring away when I walked into the room, so I gave him a kiss on the check” explained the soldier.   “Then I whispered in his ear ‘goodnight beautiful’, and he sat up all night watching me. ” Multilevel Marketing Plans/ Pyramids

Consumers say that they’ve bought into plans and programs, but their customers are other distributors, not the general public. Some multi-level marketing programs are actually illegal pyramid schemes. When products or services are sold only to distributors like you, there’s no way to make money.

SCARYA new threat to your computer comes in new malware that can infect your computer. It hides until you access specific files or web sites. It can steal passwords, files, and then delete any trace of itself. Brian Denehy, security assurance engineer at Cyber Trust, states majority of new malware uses some type of stealth in an attempt to remain undetected before, during and after an attack. Spyware is loosely defined as, “any program, which gathers information (about you) through an Internet connection — without your knowledge. ” Spyware can gather information about your email address, keystrokes, browser cookies, passwords, credit card numbers, and can send advertisements — even if you’re not connected to the Internet!

Consumers can protect themselves by:

If paying online use a service like PayPal. The minute any charge is recorded on your account you will get a notice from PayPal. Paying with a credit card, bank, it may take up to a month for you to get your statement which gives the con time to clean out your account, use up your credit card limit.

Use strong passwords for all financial accounts and change them regularly.

Obtain and review your annual credit report for fraudulent activity.

SCAREWARE              Most of the pop-ups telling you your computer is infected are scams. They’re among the fastest-growing types of Internet fraud.   It’s just a way to try and sell you a product, mostly junk.  

Pop-up messages telling you your computer is infected with a virus. To get rid of it, all you have to do is order the antivirus software being advertised.   Before you click, though, know this: few Internet security companies use ads to tell you about a virus on your computer. Most of these pop-ups are scams, and it’s one of the fastest-growing types of Internet fraud today.

Wholesale, drop shippers

Vistaawholesale, Drop ship, wholesale

All ads are subject to change and all offers may end at anytime.   I disclaim any responsibility and/or all liability arising out of, or relating to, any item listed in Activity Internet Marketing Report and/or Websites. I adhere to the policies, guidelines and laws of the Federal Trade Commission.

The Effects of Financing Deficit on Leverage Choice of Quoted Firms In A Developing Economy: The Nigerian Experience

                   ONWUMERE J. U. J Ph. D

                   OKOYEUZU CHINWE

 

 

ABSTRACT:   This paper examines time-series patterns of external financing decisions consistent with the pecking order theory. Emerging  markets provide an excellent  laboratory to test the  explanatory power of financing deficit given the under developed markets for corporate control. The adverse selection problem of external financing automatically leads to the standard pecking order in which debt dominates equity. we run a regression with a firm’s change in debt as the  dependent variable and its financing  deficit as explanatory variable.   we control for other determinants of debt issuance. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model  falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model. Our empirical results indicate that the financing deficit alone accounts for 40% of the variation in leverage  and that no single variable is as potent as the financing deficit in explaining the variations in leverage  over the period.     We predict that publicly traded Nigerian firms fund  a much larger proportion of their financing deficit with net external debt

 

 

 

 

 

    INTRODUCTION

 

The basic pecking order theory predicts that leverage is a decreasing function of profitability. Adverse selection problem is the basis for the theory and since liquid assets/ retained earnings do not have any adverse selection problem, they constitute the best source of funds from insiders’ perspective.

Accordingly, the firm will fund all projects using retained earnings if possible. If there is an inadequate amount of retained earnings, then debt financing will be used. This argument leads to the standard pecking order in which debt dominates equity. Frank and Goyal (2003) assume that the adverse selection   problem of external financing automatically leads to the standard pecking order in which debt  dominates equity .

            ∆Dit  = a + bpo  DEFit  +    Eit                      

We run a pool panel regression where ∆Dit  represents net debt issues and   DEFit     represents  financing deficit.

Following the argument of Halov and Heider (2005), that the standard Pecking order is a special case only when there is no asymmetric information about risk, we control for other determinants of debt issuance. The basic trade-off theory states that the level of leverage is determined by trading off the tax benefit of debt against the costs of financial distress. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model. The specification in a nested model  enables us to determine how the financing deficit performs when combined with conventional factors. The pecking order theory implies that the financing deficit ought to wipe out the effects of other variables. If the financing deficit is simply one factor among many that firms trade-off, then what is left is a generalized version of the trade-off theory. The pecking order theory financial behaviour is driven by adverse selection costs and the theory should perform best among firms that face particularly several adverse selection problems.   Small high growth firms are often thought of as firms with large information asymmetric . if internal financing is not adequate, then debt financing will be used.   Thus, for a firm in normal operations, equity will not be used and the financing deficit will match up net debt issues.

The remainder of the paper is organized as follows. section 11 provides an overview of capital structure theories. Section 111 describes the methodology. The empirical analyses of deficit are presented in section 1V. section V concludes our work.

 

SECTION 11

REVIEW OF RELEVANT LITERATURE

In finance capital structure refers to the way a corporation finances its assets through some combination of equity and debt or hybrid securities. The key division in capital structure is between debt and equity. The proportion of debt funding is measured by leverage. There are different factors that affect a firm’s capital structure, and a firm should attempt to determine what its optimal or best mix of financing.

The pecking order predicts changes in mature firm’s debt ratios. These companies’ debt ratios increase when the firms have financial deficits and declines when they have surpluses. By implication, a firm may never have a preference for external finances as long as it is able to meet its investment needs via internal equity funds. But in the presence of financial deficit as mostly the practical case, the need for external finance becomes pressing.

The pecking order theory is formally proposed in Myers (1984) and Myers and Majluf (1984). in the theoretical framework of Myers and majluf, investors are willing to buy risky securities only at a discount because of the information asymmetry between managers and outside investors. Expecting this problem, managers prefer internally generated funds . when external funds have to be raised, firms prefer straight debt, and then a convertible debt, with external equity issued as last resort.

Despite extensive investigations into how firms determine their capital structures, the capital structure puzzle prevails. One of the difficulties researchers face in these studies is that a firm may deviate from its target leverage ratio. these deviations arise because operating  and financial decisions push leverage above or below the firm’s target and transaction costs and market conditions may prevent immediate corrections. This financing deficit is attributed to factors that cause a firm to deviate from its target capital structure.

Shyam-sunder and Myers (1999), provide an influential empirical test of the pecking theory against the tradeoff theory. Using a sample of 157 firms, that had traded continuously from 1971 to 1987, they find that the basic pecking order model which predicts external debt financing driven by the financing deficit, has much greater explanatory power than the static trade off model. They argue that firm’s need for external financing and their internally generated funds may have time-series properties that lead to mean reversion of the debt ratio when firms follow a pecking order financing.

In recent years,Frank and Goyal (2003)find that the financing deficit is positively related to changes in leverage which indicates pecking order financing behaviour. In other words, managers prefer issuing debts to issuing equity when firms tend to make a financial decision by taking external funds. If asymmetric information makes major equity issues or retirements rare, this behaviour is nearly inevitable. The pecking order suggests that managers try to time issues when shares are fairly priced or overpriced. Investors understand this, and interpret a decision to issue stock as bad news. That explains why stock price usually fall when a stock issues is announced. The pecking order theory stresses the value of financial slack. Without sufficient slack, the firm may be caught at the bottom of the pecking order and be forced to choose between issuing undervalued shares, borrowing and risking financial distress, or passing up valuable investment opportunities. Financial slack is most valuable to firms with plenty of positive –NPV growth opportunities. This is another reason why growth companies usually aspire to be conservative in capital structures. Heaton documents some benefits and costs of free cash flow (Heaton, 2002:40-41).

Ho, et al (2006) shows that a firm’s ability to reap growth opportunities from research and development (R&D) investments depends on its size, leverage, and the industry concentration. The authors shed further important insights on the size- leverage interaction. They reveal that large firm’s advantages over small firms disappear as their leverage increases. In general, the pecking order should work well for small young nonpayer of dividend since they face more asymmetric information

 

SECTION 111

METHODOLOGY            A cross section of 60 firms was investigated. Data was obtained from annual financial reports and securities and exchange commission over a ten year period (1996-2005) A cross section of 60 firms was investigated. Data was obtained from annual financial reports and securities and exchange commission over a ten year period (1996-2005)

(The financing deficit variable)

The basic pecking order theory predicts that leverage is a decreasing function of profitability. Adverse selection problem is the basis for the theory and since liquid assets/ retained earnings do not have any adverse selection problem, they constitute the best source of funds from insiders’ perspective.

Accordingly, the firm will fund all projects using retained earnings if possible. If there is an inadequate amount of retained earnings, then debt financing will be used. This argument leads to the standard pecking order in which debt dominates equity. Frank and Goyal (2003) run the following pooled panel regression

      ∆Dit  = a + bpo  DEFit  +    Eit                                         … (3. 1)

 

Where ∆Dit represents net debt issues and DEFit  represents financing deficit. They argue that there is a support for the standard pecking order if  a = 0 and b = 1.

∆Dit  =net debt issued in year t(∆Di =long-term debt issuance-long-term debt reduction)

DEFit =Divt/+ It + ∆wt- ct……. . (11)

Divt= cash dividends in year t.

It= net investment in year t(simply put, changes in fixed assets and long term investments).

∆wt = change in working capital in year t

Ct =cash flow after interest and taxes.

According to theory, the specification in equation (1) is defined in levels. When actually estimating equation (1),it is conventional to scale the variables by assets or by sales. Ayla Kayhan et al,(2007). The pecking order theory does not require such scaling. Of course, in an algebraic equality, if the right-hand side and the left-hand side are divided by the same value, the equality remains intact. however, in a regression, the estimated coefficient can be seriously affected if the scaling is by a variable that is correlated with the variables in the equation. Scaling is most often justified as a method of controlling for differences in firm size. When this variable is positive the firm invests more than it internally generates. When it is negative, the firm generates more cash than it invests; in other words, the firm has positive free cash flow. The interpretation of the pecking order hypothesis, described in Shyam-sunder and Myers(1999) and Frank and Goyal(2003),is that since debt is likely to be marginal source of financing; firms with high financial deficits are likely to increase their debt ratios

Following the argument of Halov and Heider (2005), that the standard Pecking order is a special case only when there is no asymmetric information about risk, we control for other determinants of debt issuance. The basic trade-off theory states that the level of leverage is determined by trading off the tax benefit of debt against the costs of financial distress. Controlling for other determinants of debt issuance helps us to see whether the adverse selection model [that is,(3. 1)]  falsely omits critical determinants of leverage. This allows a nesting of the conventional determinants of leverage from the trade-off theory within an adverse selection model. Following Frank and Goyal   (2003) and Halov and Heider (2005), the set of regressions becomes:

∆Dit   = ao bpo DEFit   + bc    ∆Cit  + bv ∆Vit  + bπ ∆πit  + bs ∆LOGS +   Eit                                                    

                                                                       …(3. 2).

 

          The logic of (3. 2) is simple. The pecking order theory is a competitor to other mainstream empirical models of corporate   leverage. The specification in a nested model as in (3. 2) above enables us to determine how the financing deficit performs when combined with conventional factors. The pecking order theory implies that the financing deficit ought to wipe out the effects of other variables. If the financing deficit is simply one factor among many that firms trade-off, then what is left is a generalized version of the trade-off theory.

  Thus, for a firm in normal operations, equity will not be used and the financing deficit will match up net debt issues.

The pecking order in terms of the relative explanatory power of the financing deficit in observed capital structures can be stated thus:

ßpo =  ßs  =    ßr   =   ßc =    ßp            

ßpo >  ßs  v, c, p        = (Financing deficit dominates).

 

Our version of the regression analysis follows five stages thus

Į t     =        α +  ßpo DEFt        

Į t     =        α +  ßpo DEFt   =   ßs St  +  ßvVt

Į t     =        α +  ßpo DEFt   =   ßs St  +  ßvVt   +   ßcCt

Į t     =        α +  ßs St   =   ßv Vt  +  ßcCt   +   ßp      pt

Į t     =        α +  ßpo DEFt   =   ßs St  +  ßvVt   +   ßcCt   + ßp pt

Where       Į t       =        Market leverage at time t

                 DEFt =         Financing deficit at time t

       St       =        Proxy for size at time t

       Vt       =        Growth opportunities at time t

       Ct       =        Tangibility of assets at time t

       pt       =        Profitability at time t 

 

Our model of target leverage was computed thus:

Į*t       =     Į t      +    DEFt

 

SECTION   IV

Presentation And Analysis

 

TABLE 4. 1a: EMPIRICAL RESULTS ON THE STANDARD PECKING ORDER

Constant

Deficit

R2

Adjusted R2

Std. Error of Estimate

F

DW

0. 20

0. 98

0. 40

0. 03

5. 32

1. 11

(4. 29)+

(2. 31)++

0. 32

 

 

 

 

F        represents F  Ratio, while DW Dursin-Watson.

t         values are in brackets     n = 10

+        signifies one percent (0. 01) significance

++      signifies five percent (0. 05) significance.

The pecking order hypothesis can be stated statistically as

H1: a = 0      (pecking order holds)

          Hi:  a ≠ 0      (pecking order does not hold)

And

Ho: b = 1      (pecking order holds)

          H1: b ≠ 0      (pecking order does not hold)

Table 4. 1a indicates that the constant a is statistically different from zero. However, the slope coefficient b is close to one in support of the pecking order. The coefficient of determination indicates that the deficit explains forty percent (40%) of the variation in market leverage, our proxy for net borrowing.

It is important to stress that the variables used above were scaled by assets in line with empirical method. Scaling is most often justified as a method of controlling for differences in firm size.

The pecking order test implicitly makes different exogeneity assumptions and uses slightly different information set than is conventional in empirical research on leverage and leverage-adjusting behaviour. The conventional set of explanatory factors for leverage is the conventional set for a reason. The variables have survived many tests. As explained in our literature review, these variables also have conventional interpretations. Excluding such variables from consideration may (potentially) be a significant omission. More so, the result above indicates an unexplained variation in leverage of about sixty percent. Including such variable further poses a tough test for the pecking order theory.

Our version of the regression analysis follows five stages thus:

lt = a +bpo DEFt               ……………………………. .                   (as in 4. 1)

lt = a +b po  DEFt +bsSt  + BvVt    ……………………. .                    (4. 2)

lt = a +bpo  DEFτ +bsSt +  BvVt  + bcCt…………………                (4. 3)

lt = a +bsSt  + bvVt +bcCt + bππt …………………. .              (4. 4)

lt = a +bpoDEFt + bsSt +bvVt + bcCt + bππt ……. . …. .                    (4. 5)

 

Where         lt        =        market leverage at time t.

DEFt  =        financing deficit at time t.

St       =        Proxy for size at time t.

 Vt      =        Growth opportunities at time t.

Ct       =        tangibility of assets at time t.

πt       =        profitability at time t.

 

Our empirical results are tabulated in 4. 5b below.

Table 4. 1b:  RESULTS ON CONVENTIONAL LEVERAGE REGRESSION WITH FINANCING DEFICIT IN NESTED MODELS.

Regression Equation

Constant

DEF

Size

(S)

Growth

(V)

Collateral

(C)

Profit

(π)

R2

F

DW

4. 4

0. 20

(4. 29)+

0. 98

(2. 31)++

 

 

 

 

0. 40

5. 32

1. 11

4. 5

0. 36

(5. 90)+

0. 73

(2. 44)++

-0. 13

(-1. 26)

-0. 23

(-2. 47)++

 

 

0. 70

8. 08

1. 45

4. 6

0. 40

(9. 04)+

0. 53

(2. 43)+++

-0. 19

(-2. 55)++

-0. 30

(-4. 35)+

-0. 06

(-2. 78)++

 

0. 86

14. 81

1. 93

4. 7

0. 45

(7. 47)+

 

-0. 18

(-1. 66)

-0. 34

(-3. 26)++

-0. 08

(-2. 58)++

-0. 01

(-0. 42)

0. 70

6. 36

2. 27

4. 8

0. 39

(7. 44)+

0. 52

(2. 12)+++

-0. 19

(-2. 23)++

-0. 31

(-3. 78)++

-0. 06

(-2. 50)++

-0. 01

(-0. 15)

0. 83

9. 53

1. 88

n  =   10

+        Significant at one percent (0. 01)

++      Significant of five percent (0. 05)

+++    Significant at ten percent (0. 10) 

Confirming predictions shared by the trade-off model and the standard pecking order model, firms with more growth opportunities have less market leverage. Confirming the pecking order model but contradicting the trade-off model, more profitable firms are less levered. However, the profitability coefficient is statistically insignificant.

          On the explanatory power of deficit on observed debt ratios, table 4. 1b indicates its dominance over the remaining conventional variables both by the partial derivatives and the coefficient of determination (R2 ).

Again, the financing deficit alone accounts for 40 percent of the variation in leverage while size and growth (put together) make up the balance of 30 percent. Collateral, our proxy for tangibility of assets explains 16 percent of the variations in leverage while the explanatory power of the regression once profitability is added. Table 4. 1b indicates that no single variable is as potent as the financing deficit in explaining the variations in leverage over the period. A one percent increase in financing deficit leads to a . 73% increase in market leverage. A one percent increase in size leads to a . 19% decline in market leverage. A one percent increase in growth opportunities leads to a . 3% decline in market leverage. A one percent rise in tangible assets leads to a decrease of . 06% in leverage while a one percent rise in profitability leads to a decline of . 01% in leverage. Though the profitability coefficient is consistent with the pecking order theory, it is not significant at all. This casts doubt on the plausibility of the pecking order. However, the statistically significant deficit coefficient that dominates other coefficients at all levels indicates that the pecking order is a strong theory in the Nigerian corporate environment. Empirical research along this line includes Graham and Harvey (2001), Fama and French (2002). Halov and Heider (2005).

To test for the degree of multicollinearity amongst the explanatory variables, the table below hereby presents our intercorrelation matrix.   

TABLE 4. 1c: INTERCORRELATION MATRIX OF MARKET LEVERAGE (L) WITH   DEFICIT, SIZE, GROWTH, COLLATERAL AND PROFITABILITY.

 

L S V C Π

DEF

PPMCC.        L.

1. 00

 

 

 

 

 

                   S

0. 63

1. 00

 

 

 

 

                   V

-0. 76

-0. 92

1. 00

 

 

 

                   C

                   π 

-0. 28

0. 49

0. 02

0. 75

-0. 14

-0. 77

1. 00

0. 12

 

1. 00

 

                  DEF

0. 63

0. 32

-0. 31

-0. 28

0. 13

1. 00

Sig (I-tailed) L

.

 

 

 

 

 

                                        S             

 

0. 03

 

.

 

 

 

 

                     V

0. 01

0. 00

 

 

 

 

                    C

0. 21

0. 48

0. 35

 

 

 

                      π    

0. 08

0. 01

-0. 01

0. 37

.

 

                   DEF

0. 03

0. 18

-0. 20

0. 22

0. 36

1. 00

 

 

 

SECTION V

SUMMARY/CONCLUSION.

 

DEBT AND THE FINANCING DEFICIT

          We now look at the analysis of the capital structure decision from a different point of view, the pecking order theory of Myers and Majluf (1984) and Myers (1984). As can be recalled, Myers and Majluf analyzed a firm with assets – in – place and a growth opportunity requiring additional financing. They assumed perfect financial markets, except that investors do not know the true worth of either the existing assets or the new opportunity. Therefore, investors cannot precisely value the securities issued to finance the new investment; If the firm announces an issue of common stock. This is good news for investors if it reveals a growth opportunity with positive net present value. It is bad news if managers believe the assets –in-place are overvalued by investors and decide to try to issue overvalued shares. (Issuing shares at too low a price transfers value from existing shareholders to new investors if the new shares are overvalued, the transfer goes the other way). The interested reader is referred to Myers (2001), Fama and French (2002) and the references cited in these papers for excellent exposition.

          The pecking order theory predicts that the firm will fund all projects using internal equity if possible (Information asymmetries are assumed relevant only for external financing). If internal finance is not adequate, then debt financing will be used. Thus, for a firm in normal operations, equity will not be used and the financing deficit will match the net debt issues.

          The empirical specification for the test of the standard pecking order is given as

          lit = a + bpo D

 

 

CONCLUSION. A statistically significant deficit coefficient that dominates other coefficients in a nested regression model indicates that no single variable is as potent as the financing deficit in explaining the variation in leverage over the period of the financing deficit provides a strong support for the standard pecking order. The result is well in line with the empirical findings of Titman and Wessels(1988)our result was a strong confirmation of the pecking order in the financing behaviours of Nigeria quoted firms.

 

 

 

REFERENCES

 

 

Fama, E. F. and K. R. French (2002a) “Testing trade-off and pecking order predictions About Dividends and Debt,” Review of financial studies,  15, (1):1-33.

Frank, M. Z and V. K Goyal (2003) “Testing the Pecking Order Theory of Capital Structure,” Journal of Financial Economics, 67: 217-248.

Graham, J. R and C. R Harvey (2001)”The Theory and Practice of Corporate Finance: Evidence from the Field, ” Journal of financial Economics,  60, ( 2-3)May: 187-243.

 

Halov, N. and F. Heider (2005) “Capital Structure, risk and Asymmetric Information, “Working Paper NYU Stern School of Business. (December 1st, 2005).

Heaton, J. B. (2002) “Management, Optimism and Corporate Finance, “Financial Management,  31(2 )(summer) :33-45.

 

Ho, Y. K, M. Tjahjapranata and C. M Yap (2006) “Size, Leverage, Concentration, and R&D Investment in Generating Growth Opportunities”, Journal of Business  79, ( 2):851-876.

 

Myers, S. C. (1984) “The Capital structure puzzle”, Journal of Finance, 39, July,  575 – 592.

Myers, S. C. and N. S. Majluf (1984) “Corporate Financing and

Investment Decisions When Firms Have Information Investors Do Not Have”, Journal of Financial Economics,  13, June, 187 – 222.

 

 

 

Titman, S. and R. Wessels (1988) “The Determinants of Capital Structure Choice, ” Journal of Finance,  43, (1): 1-19

 

Can you get an auto loan with a poor credit score? Yes you can, but where you choose to apply makes a very big difference. While many lenders will turn you away and not offer you any help, there are some that are ready and willing to provide you with an auto loan and help you to get back on the road with a new or late model vehicle. In-house dealer financing is not the answer. Although many people do go that direction when they’ve been turned down by a local dealership. You’ll find that it’s hard to find a good loan company to work with if you have a low credit score. That’s common. However, there are good ones if you just get pointed in the right direction. Special finance programs are available through sources on the internet. Companies that specialize in bad credit auto loans are the best source for getting good terms, without having to pay enormous interest rates. Choosing the right loan company to work with can make a tremendous difference in what you are able to obtain. While there are many lenders that have unfair interest rates and “take it or leave it” types of deals, there are some very reputable places that you can go to get a great deal on financing. Even with bad credit, you can still obtain reasonable terms that you can afford. Too often, people simply settle for the first offer that they are given, and don’t do enough homework or research to make a well-informed decision with regard to auto finance. Taking the time to find and apply with a good lender, can make all the difference in the world. You’ll get better rates, better payment terms and can even eliminate your having to have a down payment.

The global outdoor advertising sector consists of those advertising agencies which are involved in the promotion of various brands, products and services through the mode of billboard advertising, transit advertising, street furniture advertising, and digital signage. Outdoor advertising is far more effective than other advertising media especially in areas of high footfall as the potential audience is very high compared to indoor advertising mediums. With the increase in high-rise buildings, availability of advertising spaces have significantly increased in office as well as residential spaces, subways, bus lines and shopping malls, thereby providing more opportunities to utilize these spaces for advertising. The outdoor advertising market has outperformed the other modes of advertising as well as the overall advertising market. Billboards account for more than half share of the outdoor advertising budgets. The revenue from outdoor advertising has shown an increasing trend till 2008 after which it declined due to global economic downturn as the advertisers trimmed their spending on advertising. In the coming years, the industry is expected to grow and capture share of advertising from television, radio and newspapers. Increasing urbanization, mobility and the introduction of digital advertising measures are the major factors driving the industry. Increase in digitalization of out-of-home media makes it more attractive for the viewers and also helps in increasing the visual span. The report also describes the correlation of outdoor advertising’s revenue and the GDP. The outdoor advertising market is highly regulated and the regulations generally limit the size, placement, nature, density and content of out-of-home displays. The entry barriers restrict new entrants to enter the market. The outdoor advertising market is quite fragmented, with the top 3 players being Clear Channel Outdoor, CBS Outdoor and JCDecaux. Clear Channel outdoor is leading the market, followed by JCDecaux. CBS Outdoor and Clear Channel Outdoor generate a significant share of their revenue from billboard, whereas JCDecaux is the leader in street furniture advertising. The report analyzes the outdoor advertising patterns in the global market with focus on the US, the UK, Australia, China and Canada. It also discusses the major growth drivers and challenges for the outdoor market. The report presents the competitive structure of the industry and profiles major players with a discussion of their key business strategies. By combining SPSS Inc. ‘s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests. Table of Contents :1. Advertising Industry1. 1 Overview1. 2 Outdoor Advertising2. Global Outdoor Advertising MarketGlobal Outdoor Advertisement SpendingMarket Breakdown by Region3. Outdoor Advertising – Country Analysis3. 1 The United StatesOutdoor Advertising ExpenditureOutdoor Market by SegmentsOther Industry Statistics3. 2 The United KingdomOutdoor Revenue GrowthOutdoor Revenue by SegmentsMajor Outdoor Advertising Categories3. 3 AustraliaOutdoor Revenue GrowthOutdoor Revenue by SegmentsMajor Outdoor Advertising Categories3. 4 ChinaOutdoor Revenue GrowthMarket Share3. 5 CanadaOutdoor Revenue GrowthMarket ShareMajor Outdoor Advertising Categories4. Market Drivers4. 1 Urbanization Trend4. 2 Increasing Mobility4. 3 Introduction of Digital Advertising Medium4. 4 Growing Disposable Income5. Key Challenges5. 1 Laws and Regulations5. 2 Seasonality of the Market5. 3 Economic Conditions5. 4 Entry Barriers6. Competitive Landscape of Outdoor Advertising MarketComparison by SegmentsComparison by RegionsFinancial Comparison7. Company Profiles7. 1 Clear Channel Outdoor HoldingsBusiness DescriptionKey FinancialsBusiness StrategiesPromote Overall Outdoor Media SpendingFocus on Cost ReductionIncreasing Use of Digital BillboardsCapitalize on Product & Geographic Opportunities7. 2 JCDecauxBusiness DescriptionKey FinancialsBusiness StrategiesContinuing Organic GrowthPromote Acquisitions to Strengthen PositionMaximize the Potential of Advertising Network7. 3 CBS OutdoorBusiness DescriptionKey FinancialsBusiness StrategiesExpansion in Selected Markets7. 4 Lamar Advertising CompanyBusiness DescriptionKey FinancialsBusiness StrategiesReduction in Operating ExpendituresHigh Quality Local Sales and ServicesExpansion of Display InventoryPursuing Other Outdoor Advertising Opportunities8. Market Outlook8. 1 Market Forecast8. 2 Forecast Methodology8. 2. 1 Dependent and Independent Variables8. 2. 2 Correlation Analysis8. 2. 3 Regression Analysis For more information please visit :http://www. aarkstore. com/reports/Global-Outdoor-Advertising-Market-Report-2010-Edition-53471. html

It is very common applying for used car loans when purchasing a used motor car but don’t possess enough ready money available at the time to cover its costs. In Australia, there’s lots of finance company that advertise for used car credit facilities. These lending companies have various policies and packages.

 

When looking for used car finance, you must evaluate the assorted finance packages which can be obtainable by automotive financial institutions. Take particular notice at the car loan interest rates, car finance terms, repayment term, duration of time before the finance gets approved, the loan company’s fees and charges and any penalty fees if you make your payments at an earlier time, amongst other items that build up the total finance package. Even though the used car loans rate is one of the most important components of the deal, additional items would be best not overlooked.

 

Aside from what has been already been mentioned, in your own time to go through the used car loans pricing quote and find the one you will be most comfortable with. To get the best car finance package, be patient as you do your research. You can make the job faster and easier seeing as a effortless seek in the internet can offer you a lot of the information you require on used car loan companies. You can rank the bank car loans according to their interest rates or other criteria that you wish. If you don’t have the time to do research, having a car finance broker do it for you is an alternative.

 

When you want to get serious about applying for finance for used auto finance, ensure you realize the payments that you will need to make. It is simple to do this via a car finance calculator, which is available on the websites of most auto loan companies. This simple car loan calculator, with simple interface, assists you to determine the length of schedule over which you will pay back the finance.

 

After settling on a number of possible car loans lenders that you hope to apply for the car loan, it would be a good idea to verify the background of the financier. Will it be a car loans company that you approve of ? What is its history in loaning and dealing with used vehicle finance borrowers ? What about its integrity, is it known to be an honest company ? These are a quantity of the a small amount of things that should steer you in filtering out the potential companies and in due course remain with the car finance company that you will have a loan of the auto car loan.

 

There are generally two types of used car loans offered by car finance companies: a personal loan and one secured on the car. The finance is normally offered over the payment period which is between five to seven years, with the period of the loan especially much depending on the age of the automobile that you’re buying. Some car finance companies do not provide finance for motor vehicles that happen to be over seven years whilst others lower the car finance period. This differs from bank to bank so do not forget to ask the company about their guidelines on old vehicles. A finance broker specializing in vehicle finance may also be capable that can assist you on this.

 

As well as very old cars, some car loans companies will not take on used car loan applications for vehicles which are imported. For anyone who is purchasing an imported vehicle a personal unsecured loan could be your best alternative. Note that individual finance incurs greater car finance rates than secured finance.

 

Do not forget that the finance that you are applying has add-on finance options you may possibly want included. A few of these may possibly take account of car insurance on the motor vehicle, warranties on mechanical breakdown of the vehicle, unemployment credit protection, disability and or death insurance etcetera. If these items are approved by the car finance company, don’t forget that you will still need to finance the loan over the conditions that are laid out within the finance contract.

 

Another important factor for consideration is the loan source itself, and the ability of the car finance company to raise the cash. Not all loan companies use their own funds, and while some are financially robust enough to weather the storm of a recession, others are not.

 

Notwithstanding that, you can acquire a really good car finance package if you take time to weigh against the car loans interest rates and terms of used car loans offered, by different car finance lenders. Having an experienced car finance broker can help you get a good deal in getting a used car loan that you’ll be able to repay with ease.

The global shipbuilding industry experienced a rapid decline in new shipbuilding orders in 2009 as backlogs remained high and the global economic downturn adversely affected the demand for new ships or vessels. Since 2004, the shipbuilding industry experienced a 3 year boom in terms of new shipbuilding orders, Thereafter, the recent economic downturn lead to a decline in shipbuilding activity from 2008-2009, however it is anticipated that the shipbuilding activity would grow at a CAGR of 26% for period spanning 2010-2013. The demand for ships may either be incremental or replacement demand. The key factors such as growth in GDP, increase in oil demand, availability of shipping finance and other factors contribute to the demand for ships. The ships can broadly be classified into three major categories- tankers, bulkers and containers, among others. The above given three segments account for two-thirds of the world shipbuilding orderbook as in 2009, followed by other carriers like LNG carriers, LPG carriers and cruise ships, among others. Global market environment in the shipbuilding industry has undergone fundamental changes. The present shipbuilding industry is dominated by Asian countries as the industry dominance shifted from Europe towards East since the past four decades. Of the Asian nations, Korea, China and Japan hold a majority share in terms of orderbook. The largest shipbuilding companies in terms of capacity are Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries (all Korean). In the last five years the emerging shipbuilding nations, like India, Vietnam, Philippines and Brazil, have acquired a dominant position posing as potential threat as well as opportunity for the existing shipbuilding nations. The challenges posed by the global economic downturn have directed the shipbuilding companies to diversify their portfolio, make strategic investments in manufacturing and technical capabilities and develop offshore facilities and eco-friendly vessels, giving them a competitive advantage, to lead the industry in the future. The report analyzes the global shipbuilding market with focus on Europe, Korea, Japan and China. It also discusses the major growth drivers and challenges for the shipbuilding market. The report presents the competitive structure of the industry and profiles major players with a discussion of their key business strategies. By combining SPSS Inc. ‘s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests. Table of Contents :1. Overview1. 1 Types of Ships1. 2 Shipbuilding Process1. 3 Ship Building Cycle2. Market Overview2. 1 Global Market StructureNew OrdersCompletionsOrder BookMarket Breakdown by Region2. 2 Major Markets2. 2. 1 Europe Shipbuilding MarketMarket OverviewNew Orders, Completions & Order Book2. 2. 2 Korea Shipbuilding MarketMarket OverviewNew Orders, Completions & Order Book2. 2. 3 Japan Shipbuilding MarketMarket OverviewNew Orders, Completions & Order Book2. 2. 4 China Shipbuilding MarketMarket OverviewNew Orders, Completions & Order Book2. 2. 2 Emerging Shipbuilding NationsIndiaVietnamPhilippinesBrazil2. 3 Market Segments by Ship Types2. 3. 1 Tanker Market2. 3. 2 Bulker Market2. 3. 3 Container Market2. 2. 4 LPG Carrier Market2. 3. 5 LNG Carrier Market2. 3. 6 Offshore Vessel Market2. 3. 7 Other Carriers Market3. Market Dynamics3. 1 Key Trends3. 1. 1 The Shift to the East3. 1. 2 Larger and More Sophisticated Vehicles3. 1. 3 Green Shipbuilding3. 2 Developments in Global Shipbuilding3. 2. 1 Innovative Technology and Creative Process3. 2. 2 Creating High-Value Offshore Facilities3. 2. 3 Exploring New Growth Engines3. 2. 4 Smart Ship Projects3. 3 Growth Drivers3. 3. 1 Drivers According to Demand Type3. 3. 2 Global GDP Growth3. 3. 3 Increasing Oil Demand3. 3. 4 Refining Capacity Growth3. 3. 5 Improving Global Economy and Inventory Restocking3. 3. 6 Bulker and Tanker Orders – Harbingers of a New Cycle3. 4 Major Challenges3. 4. 1 Shipbuilding Financing3. 4. 2 Rising Pressure of R&D4. Competitive Scenario4. 1 Global Leaders in Shipbuilding5. Company Profiles5. 1 Hyundai Heavy Industries Pvt. LtdCompany OverviewBusiness StrategiesStructural and Product OptimizationTechnology DevelopmentNetwork and Synergy Building5. 2 Samsung Heavy Industries Pvt. LtdCompany OverviewBusiness StrategiesNew Technologies and New ProductsLeveraging Shipbuilding Expertise to Grow Wind PowerMega–Block Construction Method5. 3 Daewoo Shipbuilding and Marine Engineering Co. , Ltd. Company OverviewBusiness StrategiesBusiness ExpansionDevelopment of Environmental Friendly SystemsExplore New Opportunities in Resource-Rich Countries6. Market Outlook6. 1 Market Forecast6. 2 Forecast Methodology6. 2. 1 Dependent and Independent Variables6. 2. 2 Correlation Analysis6. 2. 3 Regression Analysis For more information please visit :http://www. aarkstore. com/reports/Global-Shipbuilding-Market-Report-2010-Edition-53475. html

The deepwater oil and gas business is now, without-doubt, firmly established as a major expenditure driver in the offshore sector. Douglas-Westwood has tracked its emergence and growth since the 1990s and pleased to publish the latest in a series of industry-leading studies on the market.

Despite global economic turmoil and oil price fluctuations having a marked impact on activity levels, the deepwater sector is forecast to quickly recover and resume its growth trend, with annual expenditure reaching around $35 billion in 2014 and a total global Capex of $167 billion for the 2010-2014 period. With these figures in mind, the latest edition of the World Deepwater Market Report offers an excellent resource for those seeking a timely update on this dynamic and changing industry.

Building on previous editions, The World Deepwater Market Report provides a detailed country-by-country and component-led analysis as well as an exploration of deepwater production designs, sector trends and development prospects. It also offers comprehensive deepwater case studies including field developments in the Brazilian Santos Basin, Angola, Gulf of Mexico, India and the UK.

The report presents analysis based on unique and proprietary data covering historic and forecast deepwater expenditure breakdowns for Africa, Asia, Australasia, Latin America, North America and Western Europe. Prospects and projects within each of the geographies are highlighted and discussed.

The World Deepwater Market Report 2010-2014 is geared to senior executive needs and assumes no previous reader knowledge of the subject area. It offers an explanation of the key concepts and terms, and explains some of the recent trends and themes in play in the market including supply-side constraints, cost inflation, financing issues and backlog analysis within the subsea equipment sector. The report highlights that drilling and completion of subsea wells will form the majority of deepwater spend over the forecast period.

The World Deepwater Market Report 2010-2014 is the latest in an acclaimed series of business studies used by organisations in over 60 countries worldwide. These include oil majors, investment banks, OEMs, offshore contractors, agencies and government departments. For more information please visit :http://www. aarkstore. com/reports/The-World-Deepwater-Market-Report-63046. html