Archive for the ‘Finance’ Category

Advantages and Disadvantages For Internet Banking

Sunday, November 23rd, 2008
banking
Julian Davidson asked:


If you belong to the generation that feeds on technology then Internet banking shouldn’t at all be an issue for you. The Internet for you is the place to get things done quickly without actually going out. Banking is one of these things. For those who are a bit older, the concept of not interfacing with a human inside the bank will be a bitter pill to swallow. They still are yet to be convinced so it is necessary to weigh the advantages and disadvantages for Internet banking.

Apprehensive people know about the many wonders of the Internet and they have heard so much about Internet banking but they are still paying their bills by mail and depositing checks at their branch.

Many people are already using the Internet to shop for items, or even financial packages for mortgages and loans but when it’s time to finalize, they still opt to go to the office of the company they chose and seal things with an agent.

Before comparing the advantages and disadvantages for Internet banking, let us first define the concept so others who do not know yet can have an idea.

The What and Who in online banking

When the Internet started to become very popular and computers began to become more and more advanced, many businesses started to shift their attention to the trend and established their online presence. This same trend also started to reshape the banking industry.

In the past, banks used computers to automate their daily transactions. These days, there hardly is any paper work at all since everything is done online via the bank’s network system. The only thing that serves as a transaction record is the receipt a shopper gets when she’s at the POS of her favorite boutique.

For banks, their Internet presence is a value-added service for existing and new customers.

Online banking goes by so many other names like PC banking, home banking, electronic banking, or Internet banking.

The first ones to test the waters were the large national banks. Soon, regional banks, smaller banks, financial companies, and credit unions joined in and implemented their own electronic banking system based on the Internet. These institutions that have expanded to online have since then referred to as brick-to-click banks as opposed to brick-and-mortar banks. The latter refers to those, which are yet to offer online banking o their customers.

Aside from the brick-to-clicks, there are “virtual” banks that have emerged. These are banks that do not have physical offices or branches, and any tellers or agents. These banks exist only in cyberspace but they still are covered by the same federal regulations that cover the ordinary banks.

Nowadays, the large banks have sites that provide fully secured and fully functioning online banking services that give their customers ultimate convenience. The smaller ones which are a bit more cautious to go full circle offer access to limited banking services like viewing of account balance and history viewing only.

The more banks that go online and succeed in making their services secured, the more that people will have lesser doubts about the advantages and disadvantages for Internet banking.



Vernon

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Bank Foreclosures

Monday, November 10th, 2008
banking
Heather Seitz asked:


Bank foreclosure real estate also referred to as REOs (Real Estate Owned) is foreclosed real estate that is owned by the bank due to an unsuccessful foreclosure auction. There are several reasons the home may have not sold at the auction. The most common reason is negative equity- the bank foreclosure real estate is worth less than the amount owed to the bank. Of course, the bank seeks to receive the outstanding balance of the original loan; therefore, the minimum bid for the bank foreclosure real estate is usually the amount of the outstanding balance of the original loan, plus interest and any additional fees. No smart investor or buyer will consider bidding on such a property.

Nevertheless, an unsuccessful sale will not stop the bank from trying to make an attempt to get the bank foreclosure real estate sold. The bank will consider removing some or all liens and fees on the bank foreclosure real estate in order to get it on the real estate market and resell it to the public. The resell process may be retrying an auction or working through a Realtor.

This is a hot market for real estate investors. Real Estate investors take an eager interest in bank foreclosure real estate property. The market of foreclosed homes may be large; but, not always suitable for some investors. The foreclosed property may not meet some important needs. Nowadays home buyers and investors alike are scrambling through the market of bank foreclosure real estate looking for better deals. Though, most bank foreclosure real estate property is in poor condition, the low sale price of the home highly compensates for the property poor condition.

Investing in bank foreclosure real estate property offers a great return for investors. Bank foreclosure real estate by far offers greater deals than typical foreclosed homes. As an investor you must consider all your options. Make sure you get the bank foreclosure real estate property at the best price. Hopefully, the bank foreclosure real estate that an investor chooses to invest in will give the investor rewards; such as a larger return in profit, either through renting the home out or through selling the home.

There are several ways to search for bank foreclosure real estate property. You can search the Internet, magazines, and newspaper listings. The Internet can lead you to thousands maybe millions of connections. Here you can view listing by state, banks, county, and much more.

You should also invest time in finding a good real estate agent. If they know what you are looking for, they can save you a lot of time and work. They can also help you determine the true market value of the home you are considering investing in.



Wendy

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Making the Most of Your Business Banking Relationship

Monday, November 3rd, 2008
banking
Ann Knapp asked:


Anyone who owns a business can appreciate the need for a bank account to handle bill paying, deposits and payroll. But banks can assist business owners in so many other ways as well. In fact, having a reliable financial partner can help a business reach its greatest potential, as well as provide support during times of financial need.

In addition to offering checking and savings accounts for companies, banks also offer a range of services such as term loans, equity funding, overdraft protection, insurance, pensions, and more.

Banks Offer Flexibility and Capital

Most importantly, banks can offer flexibility for business owners, making life a bit easier for those whose time is already in a crunch. For instance, banks feature services such as night safes which allow a business to deposit cash or checks after normal bank hours. Or, stop-check services can instruct a bank not to pay a check that has already been issued. Open credit arrangements allow businesses to withdraw money from any branch of the bank in addition to the one holding the account. ATMs also provide quick access to cash.

Loans are a large element of the business banking relationship. Generally speaking, there are two types of loans. Short-term loans include accounts receivable loans, working capital loans, and lines of credit. These have a maturity date of up to one year. Long-term loans are for major expenses, such as purchasing property, equipment, vehicles, or financing for a new product. These types of loans typically exceed a year in their maturity time and may range from up to 10 to 25 years depending on the business’ need.

A bank reviewing a loan request will require a written loan proposal. Typically, this includes business and marketing plans, the purpose of the loan, as well as personal financial information. Banks also expect some type of collateral to be designated, which acts as security against the loan in case a business runs into trouble repaying the loan.

As online banking becomes increasingly popular, owners are able to access their accounts 24/7 via the Internet. Not only can a business access accounts, it can also integrate its computerized account system with the bank. Bill payment features online allow owners to pay bills with the click of the mouse or transfer funds to various accounts. Electronic funds transfers also allow money to be moved from one account to an account at a branch or bank on the same day.

Helping to ensure that a business is covered in an unforeseen event, banks also offer owners insurance protection through partnerships with insurance agencies. They can also provide owners with personal life insurance policies.

Banks Offer Guidance for New Businesses

As tried and true leaders in finance, banks are an ideal place to turn to in terms of counseling and guidance for new businesses or those facing the challenges of growth. An established financial institution can help owners identify potential difficulties and suggest products and services such as credit lines that may be useful. Many even offer free counseling to new businesses.

For the new business owner, opening a bank account is not unlike opening a personal account. However, it’s important to provide the proper identification as well as the business’ intended purpose and activities. This information assists a bank in determining the best type of account for the business.

While banks can bring much-needed support and assistance to a business, the business owner can do several things to establish a positive relationship with the bank. It’s important to meet the requirements of a loan and demonstrate to the bank the ability to manage and repay a loan. If something changes, smart owners are quick to communicate with the bank, especially if an owner needs to renegotiate the terms of a loan.

Banks can bring so much to the life of a business - helping to achieve goals, negotiate rough terrain, and support business owners in the pursuit of their dreams. And the really good ones do it all with a smile.



Dawn

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Banking Basics: Choosing a Bank for Your Business

Saturday, November 1st, 2008
banking
Ann Knapp asked:


Banks come in many shapes and sizes - services and specialties. As in any professional relationship, the success of an association first requires thoughtful inquiry and research. Banks can provide business owners with a level of support and guidance but the connection must be a good fit from the start. For example, one makes careful choices about physicians, real estate agents or lawyers. That same attention should be paid when seeking out a bank to handle your business needs.

Prior to selecting a banker, it’s important to evaluate the goals and objectives of the financial relationship. An entrepreneur who knows what he or she needs from a bank will have a much easier time of comparing and analyzing a bank’s services. Also, be aware of the bank’s focus. One bank may specialize in commercial loans for a business while another focuses on home or auto loans. While one bank may excel at services aimed for personal banking, it may or may not offer the kinds of services needed for business.

Specialties

When in the research process, visit a local bank and speak to the bank manager or representative who can answer questions in regards to their business expertise. Does the bank possess specialized services aimed at supporting business needs? Do they have a clear understanding of the challenges, as well as services to assist business owners in handling those demands?

Following are services with which a bank may assist a business:

* Cash management needs

* Advice and guidance in regards to qualifying for a loan which best meets your needs.

* Investment products at varying levels of maturity or risk.

* Special loan programs, such as an SBA loan or government-guaranteed loans, for small businesses.

* Pertinent financial information related to the business owner’s specific industry

In addition to evaluating the services offered by a particular bank, it’s also important to consider what qualifications are required of a business owner desiring a bank or government-guaranteed loan. An entrepreneur needs answers in relation to minimum account balances required, as well as interest rates and charges for account services. Some banks may offer tiered services for businesses. For example, one tier might feature higher interest rates for businesses that maintain higher balances, while another tier features more basic services with a lower minimum balance. Business owners should also be aware of a bank’s access to ATMs, online banking and night deposit services.

Relationship

While a few entrepreneurs may not be as concerned with a friendly disposition as long as they are receiving the best interest rate around, other business owners base their choice of a banker on the personal level of comfort which exists between both parties. Most want to cultivate a positive relationship with their bank - to be treated as more than just another account number. After all, thriving businesses help support a successful bank. Banks as well, seek to cultivate an environment of service which will produce satisfied clients whose businesses benefit from the bank’s support. The best-fit bank offers solutions tailored to a business’ specific needs, providing effective financial management and unparalleled personal service.

Finally, the right bank is one that understands the needs of a fledging and growing business. Running a business always requires some level of risk. Business owners benefit best from those banks that help them manage that risk prudently and effectively. Most importantly, business owners should seek out banks that are interested in their dreams and goals for the venture; banks who possess a personal and corporate interest in helping to bring those dreams to reality.



Joy

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