Credit is an aspect that worries many individuals. Of course, the majority of businesses need credit for their operation, not just expansion. It is important to understand that there is a thing called corporate credit. Corporate borrowing power differs from personal credit by the fact that banks and other lending groups do not investigate the entrepreneur's personal credit; instead they look into the borrowing power of the business itself, when it comes to making a call whether or not to grant a loan.
Thus, the method of establishing corporate credit entails initially creating a corporation or LLC which will be granted this credit. As soon as the corporate line of credit is solidified, credit judgments will be carried out based on the LLC or corporation and not the entrepreneur's personal credit standing. However, when considering cash lines of credit with banks, there is an exception. A business credit card, business line of credit, or business loan shall also investigate your personal credit standing, in particular your individual credit score, revolving debt percentages and derogatory. One of the most beneficial aspects of establishing good business credit is that business owners don't have to personally guarantee as much as with consumer credit. Instead, the LLC or corporation will bear the vulnerability. And so, the owners of the business’s personal assets are safe if the corporation cannot repay its debts. A lot of the risk that people believe is mingled with beginning a business is removed by this. Opportunities for many things are provided by business credit, just like consumer borrowing power. For starters, businesses may obtain credit cards granted with a range of limits, according to how big the business is. Gaining business tools and developing corporate credit is very helpful for new businesses. Remember that even though credit cash lines are in most cases personally guaranteed, the loan under the heading of the business will not show up in personal credit bureaus, thus guaranteeing security for your personal revolving debt rations and that is very important! Second, corporate borrowing power may be utilized to obtain leases for items like vehicles or machinery. Of course, if the business owner does not have sufficient credit to get these things, this can be very helpful. Lines of credit can be acquired with many other companies with the use of corporate borrowing. These things can be accomplished without knowledge of the personal credit of the owner of the business. As long as good corporate credit is maintained by the business, there are many purchasing opportunities. You need to take heed of some forewarning advice concerning corporate loans. As is the case with individual credit, it is essential to stay current with repaying. You can destroy your corporate credit as easily as you built it. Your company might suffer if you don't make payments on time. For any queries consult with the experts at CL King & Associates. The firm offers investment research, equity and fixed income sales and trading, prime brokerage, investment advisory, and clearing services. Call at 518.447.8647 Click here to learn more!
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Investment banks like CL King & Associates are financial institutions that provide services to individuals, corporations, and governments. These establishments help in raising financial capital while also handling mergers and acquisitions. Let's take a look of how Hollywood depicts these institutions and their employees in the movies. Here are just a few of the movies made about Wall Street. 6) Margin Call (2011) is an independent production that portrays MIT PhD graduates in the mortgage backed securities environment. Even though it was not a blockbuster hit, it debuted to high acclaim at the Sundance Film Festival. This depiction of a multi-billion bet gone horribly wrong during the Great Recession takes place over a 36-hour period during the beginning of the financial crisis. The movie features the group of morally questionable employees at the company during their miscalculated business moves. 5) Money Never Sleeps (2010) is the follow up to Wall Street. 23 years after the original, the film brings Michael Douglas and Charlie Sheen together again on the big screen. After being released from prison for insider trading, Gekko in now on the outside looking in on a world he once commanded. Hoping to fix a broken relationship with his daughter, Gordon makes friends with her fiancé whom later figures out Gordon is still the master manipulator. 4) Rogue Trader (1999) is a true story about Nick Leeson, a 27 year old that establishes a bogus account for unauthorized trading. His actions brought Barings, one of Britain's oldest investment banks, to the verge of financial collapse overnight. The reviews were second-rate at best, but the real story is better. Leeson served six-plus years in prison, and today he is humorously a partner in a financial advisory firm. 3) Barbarians At The Gate (1993) is the tale of the legendary leveraged buyout battle for RJR-Nabisco. R. J. Reynolds bought Nabisco in 1985 and after three years it became one of the major hotspots in the leveraged buyout mania. After coming up for auction, the company was sold to Kohlberg Kravis Roberts, a private equity enterprise. Being the biggest leveraged buyout in history, this business transaction spawned a book and this film. 2) The Bonfire of the Vanities (1990) is based on the book with the same name. It was published in October 1987, the same month and year Wall Street suffered its most devastating one-day crash in history. This story is a drama-comedy about ambition, social class, politics, racism and greed in 1980's New York City. A box office flop, the film did receive some distinction by being nominated for five Golden Raspberry awards for worst film of the year. 1) Wall Street (1987) featured Michael Douglas as Gordon Gekko. The film is the one by which all other finance films are measured. Gekko is a corporate raider whose mantra is "greed is good." The movies cultural impact was vast; from finance to fashion this movie influenced those on Wall Street for many years to come. There are many movies and movie scenes portraying the workings of investment banks. Maybe the next time you're in one, you'll see it in a different light. When looking for an independent investment banking firm, consider CL King & Associates. Learn more about the firm at http://www.clking.com/ or call at 212.364.1830 Wholesale banking is often defined as banking services which are provided between merchant banks and other financial institutions. Although, wholesale banking is also a term referred to the wide range of financial services that are provided by financial institutions to various businesses and corporations as well as the government. Retail banking and wholesale banking are two different things. Wholesale banking focuses more on corporate style entities and high-value transactions, while retail banking focuses on individual customers and sometimes small businesses. Sometimes a bank will engage in both wholesale and retail banking. Wholesale banking provides the normal banking services such as checking and savings, certificates of deposit, safe deposit boxes, annuities, retirement funds and other investment opportunities. There are many packages to choose from at a wholesale banking company. Many people discount wholesale banking because they feel their money is not safe but their money is just as safe in the wholesale banking industry as it is in the regular banking industry. Wholesale banking includes providing a large range of services to large, corporations, midsize companies and small businesses. These services are often offered at a discounted rate based on the number of services included in the package. This approach makes it more attractive for a company to place all their financial matters with a single institution rather than spreading them out into different banks and agencies for each banking service that the business needs in order to function. Real estate developers and real estate agents in addition to market investors and others that operated by buying and selling properties or other forms of investments use wholesale banking. The advantage of the wholesale banking is in this application is the ease of access to the total financial portfolio, which makes transactions and transfers between accounts much easier. Wholesale banking also has features that allow for efficient transfers of funds, stock ownership and other financial instruments between financial institutions. Wholesale banking packages that are extended to businesses and government entities can include a range of other financial services as well. Discounted interest rates are commonly included as part of the incentive package for entering into a wholesale financial arrangement. In addition to such valuable support services as consultation on investments, help with the details of major merger acquisitions and various underwriting services are also included in wholesale banking support. Many of the larger banks like CL King & Associates are actually wholesale banks that deal with large corporations and governments but also deal with regular individuals. You might own a small business and want to deal with the wholesale banker, but don't know where to find one. You can ask your real estate agent who helped you find your business location if he or she knows of a good wholesale bank or you can look in the local phone book or through the Internet and find several wholesale banks willing to deal with your small business. They do not discriminate on how small or how larger businesses if you want to put your money in their bank and bundle it with packages such as savings and IRAs and CDs that they will be happy to assist you. If you want to learn more, then consult with the experts at CL King. Call at 518.447.8647 |
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