Startup Business Financing – The Key to Starting Your Commercial Venture

Startup business financing has always been a lot harder to come across than financing for more established businesses. This is due to the fact that lenders can never be sure that your business is going to be a success and that they will ever see their money again. However, there are a few things you can do to ensure you get approved for that loan.

The first way to ensure you’ll get financing is to have everything in place when it comes to future plans for your business. Put together a solid business plan and this is a great way of convincing lenders that you really mean business and that you will be paying back the loan in future. Your business plan also needs to include profit and expenditure forecasts. It also helps to have a good credit rating, but if not you can try some other options.

It is a good idea to ask for advice when it comes to filling in business loan applications. Make a mistake here and it could cost you your financing. Chances are that you’re going to be required to go to an interview, where a potential financier will interview you about your business and your past success. Be prepared and you will make sure to answer all of the questions correctly, guaranteeing your financing.

There are many different avenues to startup business financing, and getting a loan is just one of them. Take your time to research into the many different routes available to you and you can ensure your business gets the best possible start.

Posted in Uncategorized | Comments Off

A Comprehensive And Holistic Analysis Of The Legal, Financial, And General Business Climate In Dubai

I’m assuming you are interested in setting up a company in Dubai? Otherwise you would not be reading about this. Companies in Dubai have paid their fair share to establish get going. The abundance in the Dubai employment market has made it easier than ever to start a business today and run at full speed tomorrow.

I was also interested in setting up a business in Dubai not long ago. So this discussion is based on my personal research and experience from the time I was serious about the idea. If you want to start your corporation in Dubai you’ll have to go through the Dubai Department of Economic Development or the “DED” as most refer to it.

This agency was formed in order to stimulate economic activity which would grow the emirate of Dubai. Most cities, states, provinces have an agency of similar stature which reviews business applications, approves them and grants them licenses to operate.

Your cost of setting up a business in Dubai will include the following costs:

* License involved with the kind of business activity you engage in (service vs. manufacturing vs. intellectual capital)

* Business and liability insurance (still a comparatively weak infrastructure in comparison with the USA)

* Professional fees (legal and accounting)

* The cost of a local partner (this varies from UAE Dirhams 20,000 to 2,000,000 a year depending on their greediness)

The banks in Dubai are ever ready to give you the initial cash in order to establish your business concern. However, be prepared to sign for the loan with a personal guarantee. Even if the banking companies in Dubai ever lend money to you, it is crucial to show them the proper credentials and the economic performance of your corporation during the last several years. After all, everyone wants to protect their behind.

So as to avoid paying a local partner, various entrepreneurs begin their companies in one of the many free zones in Dubai such as the Jebel Ali free zone. These free zones were instituted by the Dubai Government in order to encourage business formation and foreign investment. These zones are treated as stand-alone entities and they could be your “silent partner” in business.

If you want to get an idea on the amount of money required to start a company in Dubai, check out the DED website Dubaided.gov.ae and choose the “English” option on the upper left hand side of your monitor. This is only if the website reads in Arabic. Once you’re in the English mode, navigate to the eservices menu where you could do the cost simulation.

As much as I’m an entrepreneur at heart who loves to take charge and execute things first hand, setting up a business in Dubai is something that I DO NOT RECOMMEND you do alone. There are several cracks to slip through and they can prove really costly for you both in the short short term and long term perspective.

You need to understand the legal structure and the general rules and regulations regarding finance and commerce in Dubai. Starting your company in Dubai all by yourself can also end up costing you way more than what it should.

If you’re serious about doing business in Dubai, I strongly suggest you consider the team at Global Office FZ led by Christine Orth. As of 2009 Christine has over 6 years with her team and is my single trusted point of contact with everything that has to do with doing business in Dubai. You can read more about their credibility and qualifications here.

This is a very serious move and you’d like to ensure you go about it the right way. Having the right business adviser in order to guide you will make all the difference while you get started and continue to require assistance along the way. I wish you very well and I’m certainly eager to hear about your experiences. Do come back and give us an update. We would be keen on featuring your success story in our Dubai personal stories section.

2010 UPDATE New – Virtual Office company set up with full business license and 3-year residence visa now available in Dubai. Costs begin at AED 18,000 per annum You as an Investor are entitled to get 5 visa for you and staff and can sponsor your family and a maid.

The set up is approved by Abu Dhabi High Court and is being licensed through a Northern Emirates Free Zone that is legally entitled to provide Free Zone business licenses in Dubai.

Their business center is conveniently situated at Dubai Marina with numerous restaurants, hotels and ample free parking in walking distance. To get to know more about our activities, please contact our business partner Christine.

Posted in Uncategorized | Comments Off

Financial Jargon – Basic Finance Terminology Explained

The financial business is adding new terms and neologisms every month due to the increasingly complexity of personal finance and commerce or business relationships. However, for someone that is not familiar with all this jargon it turns very difficult to understand even the basic explanatory brochures or articles explaining common products. To clear some basic concepts, following is a list of common terms used frequently on financial flyers and other pieces of writing.

Collateral, Guarantee, Security

There are two types of loans out there: Secured and unsecured. Unsecured loans are awarded to people without other assurance of repayment than their word (signature) or personal credit. This means that if the borrower fails to repay the loan, the lender has no other means of claiming his money than taking the debtor to court on a long and tedious legal process.

Secured loans on the other side provide the lender with an additional protection. An asset is pledged as guarantee of repayment and in the event of default (lack of repayment), the lender can either repossess the asset or obtain the money owed by forcing its sell on a public auction. The asset pledged as an assurance of repayment is indistinctively referred to as: Collateral, Security or Guarantee.

Provisional Financing, Refinancing, Restructuring, Roll Over Agreement

These terms are often used with different meanings but with the intent of clarifying financial jargon, we suggest the following uses for the terms: Provisional financing refers to a short term loan or line of credit that is used for buying the borrower some time till a more convenient and definite loan can be obtained; Refinancing implies the cancellation of a previous loan with the money obtained from a new one that has different terms (usually lower monthly payments either because of a lower rate or a longer repayment program); Restructuring often implies a series of refinancing agreements that imply more than one debt and more drastically term changes than a simple extension of the repayment program; Finally, a roll over agreement implies the postponement of the loan repayment by obtaining approval for an identical loan with the same lender.

Delinquency, Default, Bad Credit

These terms are often used on articles and flyers about personal financing and non-traditional financing. People that have to face financial difficulties often damage their credit by paying late debts that are due, or missing a payment or missing several consecutive payments. All of these are recorded on the debtors’ credit report and hurt their credit stance lowering their score.

The above situations are referred to as delinquencies: paying late or missing payments. Failing to repay the loan (missing several consecutive payments) is known as default and usually leads to the debt being sold to collection agencies that will try to claim the money by different means. Finally, the consequences of default and delinquencies on your credit along with other problems like excessive debt have a negative impact on people’s credit which is known as bad credit, poor credit or low credit score.

Principal, Interest, Term

The Principal is the amount of money that is lent by the lender to the borrower and has to be repaid. The Interest is the price of the transaction: This price can be expressed as an overall amount but unless the loan is a short term loan, it is usually expressed as a rate or percentage. The term is the period of time for the loan repayment; it can refer to the overall repayment period including the repayment deadline but it can also refer to the repayment frequency whether you have to make monthly, biweekly or weekly payment.

Posted in Uncategorized | Comments Off

Stop Working Hard and Grow Money on Trees

For the average person today, getting ahead financially seems like an almost impossible feat. It’s difficult for many to envision ever escaping the rat race when the cost of living is so high and wages are so low. Seeing no way out, most just suck it up and push through, trying to make the “best of it” the only way they know how – by working harder.
WORKING HARD DOESN’T WORK
The problem with this approach is that the rules of money have changed, and working hard simply doesn’t work anymore. Most people have no idea that the rules of money have changed and that they are being penalized for playing by the old rules. Working hard used to work. Saving money used to work. However, after the rules changed in 1971, working hard and saving money progressively makes you poorer.
Because of a lack of financial education, a number of people find themselves metaphorically attempting to push a boulder up the side of a hill. A very few might make it, but for the majority the hill wins. This is what life is like today for those who don’t have a financial education and choose to play by the old rules and work hard.
The new rules require that your money work hard for you, instead of you working hard for money. You can look at this as “growing money on trees.” The rich don’t work hard for money. The rich have their money grow on trees, and so should you!
WORK TO ACCUMULATE ASSETS
The rich work to accumulate assets. In very simple terms, assets are things that place money in your pocket. Some examples are businesses, stocks, real estate, and precious metals. When we speak of growing money on trees, the asset is represented by the tree. Whether it is a business, real estate, stocks, or precious metals, the tree – as an asset – represents something that places money in your pocket.
How the asset performs is represented by its quality of DIRT. DIRT stands for debt, inflation, retirement, and taxes.
IT’S ABOUT HAVING GOOD DIRT
Having a sound financial education provides you the ability to increase the amount of money that goes into your pocket because of a high quality of DIRT. The poor and middle class suffer due to a lack of financial education. This is why they end up deeply in debt, destroyed by inflation, sold the riskiest of investments, and paying the highest in taxes.
Playing by the old rules is a losing proposition and dangerous! Learn to have your money work hard for you. Learn to grow your money on trees through assets – just like the rich.

Posted in Uncategorized | Comments Off