Real Estate

JP Morgan and the future of direct hard money lenders

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In early December 2015, JP Morgan announced a strategic partnership with OnDeck Capital, an alternative lending company, to originate, underwrite and distribute loans specifically for small businesses. The news shocked the banking world, as evidenced by a 28% increase in a single day in OnDeck’s share price and has long-term implications for alternative lenders, of which hard money lenders are a critical part. .

The association spooked many private lenders and made them worry that the major banks might be thinking of controlling their domains. JP Morgan’s association with OutBack seems to indicate this. Banks are already big. Will they take over the alternative loans too?

On the one hand…

Banks, like JP Morgan, have clear advantages over direct hard money lenders. And they know it. These include the following:

Product construction. The biggest names in traditional lending institutions, like Charles Schwab or Bank of America, can afford to extend long-term loans and lines of credit to clients that sometimes extend to five or more years. By contrast, out-of-pocket alternative lenders can only offer loans that are, at best, limited to three years. These suit people who are desperate for some kind of money, even if it is “short term”. Banks have the advantage that their loans last longer at lower rates. Additionally, some major banks (such as Wells Fargo) have recently launched perennial loans with no maturity date. This makes it difficult for direct hard money lenders to compete.

Great interest. Hard money lenders charge notoriously high lines of credit; think of somewhere in the 70-80 percent range. Traditional banks, on the other hand, half. To put that in perspective, consider that one of Bank of America’s basic small business credit cards (MasterCard Cash Rewards) has an APR range between 11 and 21 percent, not for a term loan or a line credit, but for a credit card! Alternative money lenders may advertise their business by touting its impressive speed and efficiency, but it is the high interest factor that deters potential customers. And once again the banks have the upper hand.

Borrower’s risk profile. Banks only accept applicants who are convinced they can repay. Banks look at your credit history and FICO score to determine your worth. Hard money lenders, on the other hand, get their business by taking on the riskiest cases from a tax point of view. As a result, and unsurprisingly, hard money lenders have a median default rate of 16% and forecasters predict that many more borrowers will default in 2016 as prices rise further. In short, it can be said that banks deposit the “cream of the crop”. Hard money lenders, on the other hand, tend to take the ‘cream of the shit’ (because those borrowers are the ones who generally don’t have a choice) and sometimes, though not always, lose accordingly.

Macro sensitivity. Just yesterday (December 16, 1015), the Federal Reserve issued its long-awaited rise in interest rates. The increase is negligible (from a range of 0% to 0.25% to a range of 0.25% to 0.5%), but is in addition to an already onerous private loan interest rate. The slight increase may add little to the impact of the banks. It adds a lot to the already high interest rate of the private lender.

It’s more …

Above all, banks have access to a wealth of data that private hard money lenders lack. Databanks include years of experience and libraries of account, expense, and risk data. Therefore, they can write credit with greater predictive certainty and confidence.

Banks are also diversified and connected to each other. They are a homogeneous body with access to shared information. Hard money lenders lack this. In theory, they cannot assess the creditworthiness of a single borrower based on metrics captured from a variety of products offered by banks.

Secondly …

This is not to say that banks will dominate the hard money lenders industry and capture their business. Hard money lenders have been successful as evidenced by their growth and the industry is stabilizing further. TechCrunch.com’s Tom SEO predicts that unconventional lenders, including hard money lenders, will survive and may even prosper. This is due to three things that are happening right now:

  1. Hard money lenders cut their loan-to-value (LTV) levels – that’s huge. Until a month ago, one of the aspects that most scared potential borrowers was the low LTV ratio where borrowers received misery for their property (as low as 50-70%). More recently, competition pushed lenders to stretch it to 80%. Some offer full percentage rates. This has gone a long way towards increasing the attractiveness of the hard money lending industry.

  2. Technology: Technology helps online directories rank lenders based on locations, loan offers, rates, and prices. Aggregation triggers bids that encourage lenders to set up convenient and quick hours, and sometimes at more reasonable prices. The Internet also helps hard money lenders in the sense that it helps them do a customer background check. Banks can have access to valuable treasuries of data. But Google (and other engines) give lenders access to unprecedented resources. These resources improve over time. Private lenders use these data resources to guide their transactions.

  3. Alternative lenders creating full service solutions will survive. Tom SEO believes that private lenders offering a “one stop shop” for all types of banking needs will hit the mark. By offering a range of products and services that are compatible with traditional banks, while at the same time avoiding excessive overheads and maintaining operational efficiency, these private hard money lenders could carve out their own niche and displace test banks to a certain population.

In shorts …

So if you are a direct hard money lender or are thinking of becoming one, the future is not entirely bleak. Banks, like JP Morgan, may dominate right now, but they will never displace you. You offer advantages that they do not have and people need you.

Shopping Product Reviews

3G technology in mobile phones

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Third-generation technology, better known as 3G technology, has arrived in the United States and is here to stay. What 3G doesn’t do is have an obvious impact on a cell phone’s look, feel, or design. What 3G does dose, however, is promising faster communication services that include fax, voice, and even Internet services. This can be offered 3G uses global roaming without interruptions. New applications and multimedia entertainment can be used to their full capacity thanks to the 3G network. The first 3G network was actually launched in Japan and is now offered by companies like Cingular in the United States.

In the same vein of 3G technology, Verizon has decided, together with Sprint / Nextel, to offer its own version of 3G services, but it is called Ed-Vo. Other companies like T-Mobile do not plan to implement this technology with their services until 2007. So what exactly is 3G technology? This technology will bring wireless data services to your phone like you have never seen before. This technology has speeds approximately three times faster than a 56 Kbps connection at a connection speed of 2.4 Mbps, equivalent to using a cable modem. 3G networks allow users to quickly and easily read web pages, watch music videos in real time, and use video conferencing to the fullest.

The experience you will have using 3G technology with a cell phone will be similar to using your home computer with a broadband connection. It seems that handhelds are definitely the way of the future. With each company pledging to spend billions of dollars to upgrade to a 3G network, this technology is surely worth the price that we will all undoubtedly pay. But with a loss each business will have to upgrade, the need arises to win over customers, so look for new and improved phones to launch when your favorite business upgrades to use this system.

Sports

Hockey or hoops?

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I don’t know about you, but I miss the good old days. The days when I was young enough to sit and watch sports from the time I got home from school to after I went to bed. Or even in my college days, where class was optional and pizza was plentiful. He came and went from game to game, and maybe a third one if possible. And this was always the time of year that he loved the most. The Stanley Cup playoffs or the NBA playoffs alone may not be the biggest sporting event. March Madness would surely have something to say in that argument. But put them together and you could have a couple of months. Unfortunately, my college days are behind us, and with that comes the cruel fate of waking up at 6:30 every morning to join the rest of the world of work. Let’s just say that games that last until 1 a.m. and a love of sleep don’t usually mix very well. In any case, I can’t seem to find time to watch all the sports I used to do. So the question is what to choose? Let’s examine why the postseason, if any, is really worth sacrificing sleep.

The competition. I guess this would depend on your definition of good competition. In NHL you have top-down balance. Currently, the top two seeds in hockey have left before the conference final, and the top 4 seeds in the West withdrew in the first round. On the other hand, the NBA appears to be heavier at the top, leading some to argue that this contributes to better competition in the later rounds. I’d give the go-ahead for hockey here. I realize that there are many people who simply do not understand hockey and find it impossible to see. But for those of you who appreciate the incredible level of skill it requires, you will notice that hockey more than any other sport is played at the highest level during its postseason. While Oiler’s win against the Red Wings in the first round may not be the best in terms of attracting fans to keep tuning in, it shows me that the league is ultra competitive from top to bottom. Chalk one for hockey.

The stars. This category may seem like a no-brainer to many, but not to me. Just by name recognition alone, most Americans would say that basketball has the biggest stars without a doubt. That may be true, but it seems the only reason we’ve heard of half their names is because we can easily find them in a police document. When it comes to promoting star players, no one focuses more on it than the NBA. But personally, I would rather be known to few than hated by many. Still, to be fair, I have to give it to the players, although it could be argued that since Jordan was gone for good, the Mario Lemieux name was the biggest in both sports until he retired earlier in the year.

The action. It’s not even close to me. While basketball may have that spectacular play per game that makes you jump out of your seat and scream, hockey is a constant barrage of high-intensity action, heavy hitting, jaw-dropping display of skill, and even the occasional fist fight. Ask Rasheed Wallace, who apparently feels that his team can play hard when it feels like it, and go all the way to the final. Give it a try in hockey, and you will probably get a piece of Plexiglas pierced through. Not to mention that a loss of focus, while perhaps resulting in poor defense in the NBA, can result in something more dangerous in hockey, like a puck to the face. Hockey takes it safely.

Convenience. Sometimes you just want to get straight to the point and not bother sitting for two and a half hours of a game before the outcome is actually determined. This is where basketball definitely beats hockey. There is nothing worse, especially for the casual hockey fan (although some would say there is no such thing), than sitting down to watch an entire hockey game clicker in hand, and while quickly changing the channel to check the score of another game, lose a goal! On the other hand, if you watch most of an NBA game, you are likely to witness most of the score, as it is constant throughout the game. The real convenience of basketball is that everyone knows that you really only need to tune in to the last quarter, if not just the last 5 minutes of an NBA game to see the best part. If you tried it in hockey, you would probably be out of luck and sometimes even a 1 goal game is already over for all intents and purposes. You may get lucky and stumble upon a game that heads into overtime every now and then, but you will usually find that the game is pretty much settled. So if you are looking to save time and simply tune in to the decisive time, the NBA is the game for you.

Overtime. Speaking of overtime, two words: sudden death. While a basketball game going into overtime can end in a 12-point beating victory, hockey games in the overtime playoffs always deliver the drama they deserve. No time limit, win the first goal. It doesn’t get better than that, okay?

Schedule. This is a category in which the NBA drives me crazy. What used to be a real selling point for me in the past has become another annoying by-product of the NBA’s main office. I understand that your main goal is to generate income, but do you really need to play only 2 games per night and spread the games from the first round over a period of two weeks, if not more? Some teams have almost 4 days off between games, just so the networks can extend their coverage. What’s the use of extra slots anyway, if they end up dropping viewership per night? For me, there is nothing better than two games at the same time to pique my interest. When TBS and TNT staggered their start times and showed 4 games per night between 7:00 p.m. M. And 1:00 a. M., My interest has never been greater. Now I can’t even keep track of who’s playing on a given night. At least the NHL moves its series, sometimes even scheduling two teams to face each other on consecutive nights. Score another for hockey.

Cheerleaders. This one clearly goes the way of the NBA, though think about the impact cheerleaders could have on the game of hockey. I was recently at an Islanders game on Long Island and witnessed my first hockey cheerleaders skating on the ice. Imagine your typical sexy cheerleader in the same tight-fitting uniform and short skirt, except she’s now carrying a snow shovel and skating fast on a very cold ice surface. Do I need to say more? Talk about something positive. Basketball takes this, but only because hockey hasn’t caught on yet.

So while basketball is clearly the most popular sport in this country, I would say that when it comes to the postseason, the Americans could miss out on the most exciting professional postseason tournament of all. Now if they could just put some smart Americans in charge of promoting the sport instead of the stupid Canadians who are apparently running the show, maybe this sport would finally take off in popularity. Oh cool down Canadians, I’m just kidding. Well not really, but I want to thank you for giving us the excellent Kenny versus Spenny TV show on CBC. I always wondered how long a human being could go without things like eating or sleeping when it came to a bet. Until next time, enjoy the playoffs, whatever they are.

RAC’S RANT will appear twice a month on SportsLizard.com

Tours Travel

The coach’s house

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The Coach House, Oklahoma City is everyone’s choice when it comes to the best upscale dining experience in Oklahoma. Since 1985, The Coach House has kept this reputation intact. This exclusive restaurant is in good hands with the experienced and renowned chef Kurt Fleischfresser overseeing everything. The ever-changing menu continues to attract OKC residents and visitors to the city to sample exquisite cuisine that brings out the best of regional specialties.

But it’s not just food that means quality. Guests are greeted by a warmly lit room covered with wood paneling. The atmosphere is elegant and warm. Then there is the friendly service from the staff that will make you feel right at home. Add to the seasonal menu an excellent list of award-winning wines and you have the complete dining experience, a fact reinforced by the four-diamond rating it has received (the only restaurant in Oklahoma City to receive the rating). Fine china and bedding add to the experience too.

The Coach House also hosts informal wine tasting meetings. Private dinners are no better than at this exclusive restaurant. The setting is perfect for a board meeting, rehearsal dinner, or other occasions. The restaurant can also propose and plan the menu for any type of meeting or special occasion. Speaking of menu planning, The Coach House, as part of its catering services, can customize a menu for groups of 20 to 300. It can also provide the necessary staff for the party in your home, including kitchen staff, waiters and waiters for a meal-course, and also takes care of all the required rentals.

Guests staying in luxury at OKC hotels can enjoy exquisite and elegant dining at The Coach House, Oklahoma City.

Technology

What differentiates cats from other animals?

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There are many differences between cats and other animals. All cats, from big wild cats to small domestic cats, have common characteristics. Scientists claim that the cat species evolved about 40 million years ago from an animal similar to weasels. To make a comparison, human erectus, the first human being, evolved about 1.8 million years ago.

The first domesticated cats are attributed to the first Egyptians who lived in the Upper Egypt area of ​​the Nile. These early house cats were valued because they hunted and killed small rodents and snakes. These plague animals constantly damaged the grain, which was the main source of food for the Egyptians. Cats were an effective way to deal with these pests, so people kept them around.

As humans and cats met and their fear disappeared, a stronger and closer relationship developed between them. The Egyptian people were amazed by the agility of the cats, their physical and hunting abilities. On the other hand, the cats enjoyed a safe haven and received food from the people. Furthermore, the Egyptians were fascinated by the cat’s ability to see when it is dark and to flexibly escape dangers. The indifferent behavior typical of cats also contributed to their elevated status.

The high position of the cats allowed them to travel up and down the Nile River in grain boats. Their presence on the ships ensured the protection of the grain from animals such as mice, rats and other small rodents. Under these favorable conditions, the cats multiplied and spread throughout the Nile region.

The cats’ abilities and values ​​allowed them to rise to the rank of royal members. It soon became illegal to harm and kill cats. The Egyptians began to call the cats Mau since this word resembles the sound of the meow. Later this name was replaced by the word Urchat. Soon a feline goddess known as Pasht (similar to cat and cunt) was created and the Egyptians worshiped her. The modern names for cats that we use today have evolved from ancient Egyptian names.

The Romans continued the domestication of cats because they also valued felines for their hunting abilities. This allowed cats to spread throughout the Roman Empire. The fall of Rome ushered in a really difficult time for felines. Cats, and especially blacks, were considered evil creations and were associated with witchcraft. Therefore, they were hunted down and killed.

According to historians, cats were so quickly domesticated due to their ability to eliminate pests, their physical flexibility, and their special behavior. Cats are generally completely independent, but they can also live in families and groups. While dogs need to be with people and require people’s attention, cats can do it perfectly on their own. Felines are animals that do not need special emotional closeness or approval.

The cats that we know today and have as pets have some of the characteristics of their ancestral ancestors. Some people do not like feline behavior and prefer dogs as pets. But there are people who exactly value the independence and behavior of the cat, and are happy to have a pet at home. Cat and dog owners are completely different in their individuality because they value different for characteristics.

It is not easy to train cats but it is really possible. There are cat shows where you can see amazing tricks performed by felines. You can train your kitten to follow basic commands and approach when called by name. Many experts believe that cats can be trained if they want to do this, and cat owners cannot force their pets to do something against their will.

Another difference between cats and other animals is their agility, balance, and strength. Felines can jump three times their height, something humans cannot do. You may have heard the old saying that a cat has nine lives. This saying comes from the cat’s ability to avoid various physical injuries. Therefore, it is not surprising that felines can often escape different disasters unscathed.

Cats are unique in their ability to see at night, their physical strength and flexibility, and their disability. In reality, cats don’t pretend they don’t care. The truth is, they don’t really care. You may not like such nonchalant behavior, but felines don’t care either, so you’d better accept it.

Home Kitchen

Planning your kitchen remodel

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Planning your kitchen remodel

If you are planning to remodel your kitchen, there are several things to consider before you begin. Below are a series of steps and guides you can take into account to make your kitchen remodel a fun-filled and constructive event.

A basic plan

A well thought out detailed plan is a must before you start remodeling your kitchen. This plan should be designed with the current good and bad aspects of your kitchen in mind. Next, you need to decide whether you plan to design the kitchen yourself, use a kitchen or interior designer, or work with a cabinet dealer or home center. Modern usage trends and optimal use of space should also be taken into account.

Floor

Laminate vinyl has been a popular choice for kitchen flooring because it is available in a variety of designs, textures, price ranges, and colors. This has today replaced linoleum, which was a favorite during the days before. Ceramic tile, hardwood floors, and eco-friendly materials are other good options for an attractive and durable floor.

Optimal workspace

Modern trends show that today nuclear couples or families often cook together and share kitchen chores. Therefore, the workspace in today’s kitchens must be used in such a way that more than one person can work efficiently without getting in the way of the other person. You can also create separate workspaces by separating workspaces with sinks, microwaves, or other appliances.

Storage space

Modern trends also indicate that today, with women exercising, very few items are cooked from scratch and there is a need to increase storage space for items. Therefore, cabinets have entered the scene in a big way. You can choose between framed and frameless cabinets and can be ordered from standard or custom design manufacturers. Check deployment, tilt, and other storage features within cabinets.

Kitchen sinks

Sinks are an important element in any kitchen. These are available today in a variety of colors, materials, sizes, and design options to suit every pocket. You can choose from cast iron, stainless steel, plastic, and top or bottom mount models. You can also select from one-bowl, two-bowl, deep and shallow models.

Considering appliances

When buying appliances for your kitchen, remember that they should follow the entire kitchen design concept. Choose built-in or freestanding styles and select material ranges to match the color combinations and materials used in your kitchen.

At totalremodeling.com we have a wide range of options to suit all your design requirements. From helping you choose the right materials, colors, and designs, our experts are here just to make your kitchen remodeling exercise a wonderful experience.

Auto

Why buying a used car is the smartest decision

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Buying a new car is an exciting adventure, but it can also involve a lot of running, dealing with different car dealers, and a lot of research. New cars are expensive.

In 2015 the median price for a new vehicle was reportedly $ 33,500 and just as you leave the dealership and hit the road in your new vehicle, your car’s value almost immediately drops by at least 11%. The value of a new car also drops nearly 20% each year, reducing the value by nearly 30% in the first year alone.

That begs the question, why wouldn’t everyone buy a used car? The reasons range from wanting you to be the first and only owner, knowing what you are buying, and not wanting to do the proper research.

While a new car should never be considered a bad investment, there are other options that can save you thousands of dollars, and the difference in vehicles is usually not far behind.

For example, if you search, go to the dealerships and find the type of car you want, you should not stop there. Keep shopping and look for used vehicles of the same model, based on use and mileage, you can save more than $ 10,000 in some cases.

Many people think that used cars are broken or beaten up. And while that may be true, chances are when someone is selling your old one because it is still in good condition and is probably looking for a change too. Doing the right research and working with the right people is important in finding the best deal available.

Here are five of the best used cars you can find for under $ 15,000.

1. Cadillac CTS 2011-2014 – The Cadillac CTS was a turning point for the automaker, making it more competitive by offering a more affordable price while maintaining the luxury, comfort, and driving precision of its older models. This midsize car is one of the best options when looking for a used car.

2. Mazda 6 2014-2016 – While this may be difficult to find, it is one of the best new models you can buy used. The Mazda 6 has a great, clean interior, plenty of storage space, and a variety of up-to-date technology throughout the vehicle.

3. Honda CR-V 2012-2016 – For a compact SUV, the Honda CR-V is one of the best bumps for your investment when buying used. Practical and reliable, the CR-V is one of the newest and best models you can find.

4. Toyota Camry Hybrid 2012-2015 – The Camry Hybrid is a great option when buying used and looking for a cleaner ride. Offering a comfortable and efficient ride, the Camry Hybrid also returns approximately 40 miles per gallon, saving you even more money.

5. Toyota Tundra 2007-2013 – In terms of trucks, it’s hard to find a better deal than the Toyota Tundra. Durable and reliable, the Tundra is ideal for working, towing, and essentially anything you could want from a truck.

Buying a used car is the smartest decision. Not only will you save money, with the right amount of time searching and the right research, you can save a ton and use that money elsewhere.

Try taking the actual car you’re looking at to a personal mechanic as well, allowing them to check the vehicle to make sure there aren’t any issues. That is very important to make sure the car is in good condition both inside and out.

There are many great places to buy used cars, allowing you to test drive and check your vehicles before making any purchases. If you take the time to do the proper research and make the right purchases, you will save on your new vehicle. For the new car buyer, it makes sense to buy a used car, saving you money almost immediately and in the long run.

Regardless of whether you choose to buy a new or used car, you’ll want to keep your new purchase protected. Finding cheap car insurance near me is the best option to stay safe and covered no matter what event you may encounter on the roads. The right insurance company will be with you every step of the way, whether it’s on a new or used car.

Digital Marketing

Movies and entertainment: the definition of documentary film

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A documentary film is one of several creative modes, including narrative fiction and experimental avant-garde. Documentaries have a purpose, a point of view and a focus, and they evolve from the training process, either as a scriptwriter or spontaneous. Documentaries are limited to reality or current affairs.

Most of the production requirements for documentaries refer to the fact that there are no sets, no actors are used, and real people are played, not actors.

Throughout history, documentaries have been recognized for having a great impact on cultural meanings. Many film schools around the world teach the art of documentary making. Schools and classes teach to understand the fundamental aesthetic tools of documentary film, such as the operation of the camera, sound, structure and also the interview.

Classes will often include exercises leading to the production of a documentary film project, so that students can learn directing and production skills, as well as the various types of documentaries.

There are always issues that both students and teachers deal with in documentary cinema that have to do with the development of ideas, pre-production and production itself.

Students in documentary film classes watch video segments that represent major trends in the history of documentary making. Usually there are guest filmmakers who lecture in the courses to guide and provide further education.

Documentaries are a very challenging form of filmmaking, often controversial. Historically, the genre begins with the first films of the Lumière brothers known as “current affairs films”, and ends with the latest postmodern explorations. The classics include Flaherty, Grierson, Riefenstahl, Rouch, Vertov, and Wiseman, along with contemporary works. The Documentary Course examines how changes in social and political realities, changing technology, as well as people’s personalities and talents continually redefine what the term documentary means. Both ethical and aesthetic issues are also taken into account.

Documentaries often present challenges for cinematographers who typically must work alone or in small teams. They must learn to capture meaningful and beautifully framed images during low-budget and often chaotic circumstances that generally surround film making. Typically, the emphasis is on cinema verité filming and lighting with very small equipment. Some aspects of the digital camera are shared with students as they work.

Documentary films are also a very popular art form. Award shows have a place for documentaries and many are often covered by film critics, as demonstrated as early as 1942, when there were four winners, including: The Battle of Midway; Kokoda front line; Moscow fights back; and Prelude to war. In 2009, a recent documentary on military medicine, Fighting for Life, is expected to win awards.

Business

The Best App to Do Forex Trading With No Commission

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Forex Trading With No Commission

If you are looking for the best app to do forex trading with no commission, you have to understand that the market is extremely competitive. This means that even if a company advertises itself as the best app to do forex trading with no commission, you should exercise caution because many such companies are scams. They will take your money and not give you any tangible results. In fact, they may even be scams themselves!

You need to understand that there are many forex trading no forex commission robots that are currently available in the market. The market is so competitive that you need to consider this when deciding which program to buy. The easiest way to go about it is to go in for a free trial. This will help you in knowing whether or not the app is worth your money.

Many of these apps are available on the internet for free. However, many websites offer such offers but make sure that they are genuine. If you have a good read with an expert who has used the particular robot, you will have more faith in its working. However, if the same expert gives the same negative assessment after using the software, you can be sure that it is a scam. In such cases, you should not believe anything that the expert says.

The Best App to Do Forex Trading With No Commission

You should go in for an authentic app that gives you a trading plan and gives you a sign is that it is profitable. Since the forex trading market keeps you engaged all day, you should find an app that keeps you busy all day long. In this regard, you can go in for an app that has a wide variety of options like currency pairs. Some of these apps also have a practice mode. Hence, you do not have to spend money to test it first.

You should also ensure that the app has an easy to understand interface. The trading platform should also be simple. You will not need any sophisticated knowledge to trade in the app. In fact, you can simply download the app on your smartphone and follow the simple trading strategy. There is absolutely no reason why you should pay money to learn the tips and tricks of the trade in forex trading. This is certainly the best way to do forex trading with no commission.

It is true that you will lose some money while playing. However, it is important that you do not invest your money in the wrong places. If you are looking for a free forex trading app, look for an expert advisor that has been downloaded hundreds of times. If you do not want to take chances and are willing to take some risk, then you should invest in an expert advisor that has been used by other traders. This will ensure that you get maximum profits while doing forex trading.

Business

Cash advance for merchants: processing, advantages and disadvantages

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A merchant cash advance (MCA) or business cash advance is a variety of loan that lends money to businesses and startups quickly and efficiently. Business financing options, along with short payment terms of typically 24 months and regular rewards, paid every business day, characterize the MCA. The system opposes the usual higher monthly payments of traditional bank loans and the associated longer disbursement times.

In general, MCA can be used to describe short-term business loans and future accounts receivable from credit card sales. This type of financing is available to companies that have a stable and continuous credit card operation, including restaurants, retail stores, pharmacies, etc.

How does a merchant cash advance work??

The process for obtaining a merchant cash advance is generally quick. The most important step is the identification verification of the company that wants the loan. The necessary documentation for this includes:

  • Government issued proof of identity

  • Processing of bank and credit card statements

  • Business tax returns

Once the ID approval is processed and finalized, it is only a matter of days before the business receives the borrowed amount. Subsequently, they receive a lump sum and return it by generating sales to customers.

To repay the loan amount, the borrower offers a percentage of the sales, as specified in the contract, to the lender on a daily basis. It can also be done through the connected merchant account, calculated based on sales processed by debit and credit card. In this case, check and cash sales do not count towards the daily quota.

Offsets can also be taken directly from the borrower’s bank account through Automated Clearing House (ACH) payments. By this logic, small businesses with low credit and debit sales rates may also qualify for MCA by opting for ACH rebates.

MCA amounts that can be borrowed range from a few thousand dollars to more than two hundred thousand dollars. Regardless of the amount rented, the payback time is usually very short. In most cases, this is about 18 months.

Advantages of MCA:

MCA has several benefits, some of which include:

  • An effortless application process: MCA involves a fast application process and it is possible to borrow money in one day. It is also easy to qualify since, in this case, the credit history of the loan is less significant than the history of sales.
  • Flexibility: MCA supports numerous payment plans and methods and allows borrowers to use funds as they see fit. Since payments depend on a percentage of daily transactions, debtors do not have to pay if they have low income. It leads to cash flow problems that can lead the business into deeper debt.
  • Lack of warranty: MCA loans are unsecured, which means it does not bind borrowers to any collateral. For companies with limited assets, this feature is a boon.

Cons of MCA:

The downside of MCA encompasses:

  • Possible cash flow problems: MCA requires a specific amount from the borrower’s future sales dedicated to repaying the borrowed amount. This results in an issued cash flow that can lead to deeper debt for the business.
  • Comparatively higher costs: The cost of obtaining an MCA, like factor rates and not interest rates, is much higher than many other types of financing. Factor rates do not depend on a specific period, and therefore paying in advance does not help you save money.