Financing vs. Layaway

When it comes to getting the things that you want and need in life, there are many options for purchase. For those of you considering financing and layaway, here are a few of the pros and cons for both:

Financing- Financing something that you want or need is a great way to get that object right then and there. When you finance a product you are able to leave the store with it that day which is very enticing to many people. Financing options very from store to store, but the general idea is that you are offered a line of credit to pay for the object and that you make monthly payments for a predetermined amount of time until the object is paid in full.

One of the downsides to financing something is that it does require a credit check and a hit on your credit. If you are over extended and finance too many things it can negatively affect your credit. Another problem with financing, is that there is usually an interest rate involved meaning you will pay much more for the item over time than you would have if you paid cash. Before you finance something you should make sure you can afford the monthly payment and don’t mind the hit on your credit.

Layaway- Layaway may not be as popular as it used to be, but it is still a really fantastic way to get the things you want without having to pay for them up front. With layaway there is no credit check required and no line of credit opened up. Generally you will have to put a bit of money down to secure the item that you want to purchase, and then you will have to make monthly payments to ensure that the item is held for you. A lot of layaway programs don’t require a minimum monthly payment, they just require that you make some sort of payment. When the entire balance is paid off you are then free to take the product home with you, as you will own it out right. The downside to layaway is that you don’t get to take the product home with you right away and you have to wait until it is paid in full.

Both methods of payment have their pros and cons. If you absolutely need something right away then financing is the way to go. On the other hand, if you can afford to wait, you may be better off going with layaway as you won’t spend any extra money on interest and you can still get the product that you want. When it comes to finances there is no reason to rush your decisions. Take time to figure out what is best for you and then stick with your decision.

Arizona bankruptcy attorney, Benjamin Skinner, helps those who have found themselves struggling to overcome debt due to life emergencies or financing issues.

Guest post: 5 things to look for in a lending network

US-PDGov

By: Amy Zimmerman

Over the last few years, getting financing for business projects has become a herculean task. In fact, even getting short term financing to repay debts since the global recession in 2007 is an arduous task. Most traditional financial institutions have introduced stringent measures which leave most borrowers out. Amidst this backdrop, lending networks have developed to fill in a gap left by traditional financing options.

If you are struggling to finance your business or you are in search of a quick loan, getting an insight on 5 things to look in a lending network is imperative.

What are some of the benefits you get from such a network? For starters, a lending network provides an easier financing option because the time spent since application to the point of getting cash is shorter. This convenience is compounded by the fact that interest rates on financing are lower than in traditional institutions as reported by CBS in 2008. In most cases, you can even get better rates to refinance your mortgage and other debts which is a much needed reprieve in the current economic doldrums.

A lending network can either consist of peers or even lending institutions which have large networks such as banks and lending programs which will suit any customer's needs. With so many of these groups around, what are some of the 5 things to look in a lending network?

Type of services offered

Everyone has unique needs and as such, the lending network you choose must offer a wide range of services. These range from refinancing options, mortgages, auto loans, bad credit facilities, short loans among many others. Moreover, if you want to join as a lender, then the network should also be ready to absorb you.

Reputation

One of the most important among the main 5 things to look in a lending network is of course its integrity and prudence in financial dealings. Many networks have featured in the news for all the wrong reasons and hence, research and read reviews and testimonials from past clients. Check your local BBB to learn of any complaints regarding the service, especially on professional conduct.

Experience

Evaluate the company's record in the financial industry to ensure they have the expertise to manage a financial portfolio. Check the company's website and evaluate staff training and individual experience in the industry before committing to work with the network. You can also look at its partners in the financial sector to ascertain whether the network is a stable financing option.

Privacy policy

Check your lending network's privacy measures to ensure it has a stringent policy. This will reduce the risk of losing your personal and financial information especially in the contemporary internet world where hackers abound.

Customer service

In most cases, you will have looked far and wide for a good financing option and hence, a lending network with dedicated, informed and sympathetic staff will definitely be the best option. Unhelpful customer service is an indicator of a more deep rooted problem in terms of the network's working ethics and practices. As such, move on if you are no comfortable with the kind of assistance provided.
Other considerations include the interest rates, licensure and other requirements. One crucial aspect among the main 5 things to look in a lending network is of course the nature of eligibility requirements. If they are overly stringent, then keep looking.

Amy Zimmerman regularly reviews online lending services. Be sure to look into the trustworthy report on Lending Club at Lending Club scam to make a clever financial judgment regarding this service.

Understanding Dutch Auctions and Direct Public Offerings (DPOs)

Dutch auctions are public offerings of financial instruments made directly to the public via an auction process. The purpose of Dutch auctions is to generate capital for corporate or government ventures such as an Initial Public Offering (IPO) or a government bond issue. In the case of an IPO, the Dutch auction may also include bids that determine the total number of new shares issued. In Dutch auctions, as the name indicates, the price of a financial vehicle be it bonds or stocks, is bid on by the public before a final price is determined. According to a Bloomberg Businessweek article by Mark Frankel, called "When the Tulip Bubble Burst", Dutch auctions emerged in the seventeenth century in Holland during a period in which tulips were a highly valued and bid upon commodity.

Process:

The process by which a Dutch auction is performed is not always the same. In some cases the Dutch auction may begin at a low price and rise until the first bid comes in. In this instance the first highest bid is the issue price. However, other times groups of shares may be bid upon within a price range until a specific number of shares are bid on thereby creating an accepted bid price range. Still other times the offering price may be high, and decline until an initial bid value is reached. Even if different methods of bidding are used, the key principle in a Dutch auction is that the prices are bid upon directly by the public rather than resolutely determined. However, according to Epiq, a supply management corporation, Dutch auctions are not the same as similar auctions that don't use the first or highest bid.
Examples:

Examples of Dutch auctions are numerous. The U.S. Department of the Treasury utilizes a Dutch auction process for bonds, treasury inflation protected securities (TIPS), notes and bills. Individuals can bid either competitively or non-competitively by opening an account at Treasury Direct then submitting bids on products at the closing auction rate, or at a pre-determined yield that may or may not fall within the bid range. Many public companies such as Google, and Fannie Mae have also used Dutch auctions. In the case of Google, the dutch auction was used for an IPO, however for Fannie Mae, the purpose was more likely to raise capital to help finance ongoing costs associated with mortgages.
Pros and cons:

The benefits of Dutch auctions and direct public offerings via Dutch Auction are they may lower underwriting costs by eliminating the expenses associated with testing and attempting to raise market demand for the new offering through marketing campaigns. However, according to an article in the Wake Forest Law Review by Peter B. Oh, the possibility for price manipulation in Dutch Auctions exists via the issuer and the bidders via bid rejection clauses and bidding behavior that contradicts the principles of equality and accuracy presumed in the Dutch Auction Process.  Oh also points out Dutch Auctions may lead to an undervaluation of the auctioned financial instrument as was the case with Google's IPO which lowered its Dutch Auctioned determined price.

Sources:

1.http://bit.ly/bJIas0 (Wake Forest Law Review)
2.http://bit.ly/bnvcHH (Georgeson Proxy Solicitation)
3.http://bit.ly/cCLK5a (Epiq Advanced Supply Management)
4.http://slate.me/cHPKIz (Slate)
5.http://reut.rs/9v07nM (Reuters)