Heavy charges on the Credit Cards

The latest survey conducted in France points out the lack of transparency in the banking community regarding fees and charges levied by them on credit card transactions. Sense of opacity and injustice are the two main feelings expressed by the artisans and traders surveyed by the   on the commissions charged by banks on credit card transactions
According to the latest survey , commissions  weigh heavy for these entrepreneurs. Between 0.5% and 1% of their turnover for the three quarters of them, plus a set fee from the rental payment terminal at the telephone terminal via the contribution for those offering financial payments on credit.
 Over 40% prefer to limit their costs by denying the CB below a minimum purchase, while nearly half say they are aware that these practices adversely affect their turnover business.

The banker did not explain how the amount of commission or the default interest is arrived; entrepreneurs are forced to do their own calculations and analysis more over variation as a function of turnover for some of the industry for others, even the client's head for 28%!

For artisans and traders surveyed by the Team, the solution lies in greater transparency of bank with one hand, the average rate of release that would allow them to play competition and, secondly, the provision of summary of fees charged. In contrast, only 20% considering Government  intervention, with setting a maximum charge of credit card transaction or incremental costs of commission.

The term loans

Banks may grant loans to businesses in the short medium and long term which is called as term loans. When talking about the term loans they are defined according to the duration of the loan. The term of a loan is important; the conditions for long-term loan are not the same as that of the short term loan. In real estate, loans given out are most long-term loans that is the repayments spread over a period of more than 7 years. For the short-term credit, it is a credit whose duration does not exceed 2 years. Most of the short term loans are given out for the consumer products. Generally 70% of the maximum net amount of investment will be given as term loan and the additional 30% need to be raised by the borrower himself.

Though each bank shall fix their own lending rate of interest, the interest rates for the short term loans will be more than the long term loans. The duration for the short term will be less than two years. The term for the medium term loan is between 2 to 7 years and for the long term loan it is between 7 and 15 years which depend upon the nature of investment and the repayment capacity of the company.

The short-term loan is a loan whose term is less than 2 years. The medium-term loan is a loan whose duration is between 2 and 7 years. The long term loan is a loan whose duration is between 7 and 15 years (especially for commercial property). Depending on the nature of investments and the repayment ability of the company, a grace is possible. Apart from the interest, the borrower has to pay one time processing fee or the administrative fee and yearly recurring insurance premium against which the loan is raised.

Impact of the Japanese Earthquake on US Treasury Bills

Will  the natural disaster  bring Japanese to sell out  their holdings of U.S Treasury bills?  Which will  lead to higher interest rates and therefore a fall in housing markets?  Historically, the Japanese are major buyers of U.S. debt since the beginning of 2010 and they are the top most too. With a good earning population and a high level of savings, the Japanese bought lots of US Treasury bills through their pension funds and insurance in particular.
          The Treasury bonds of United States hold by Japan is around 768.8 billion dollars, and Japan  is ahead China(755.4 Billion dollars) in 2010.After the disaster, it is necessary to rebuild the nation which  will become a first and foremost  priority for Japanese.

     Following the massive damage that occurred in Japan due to the earthquake and tsunami, they will have to reconstruct their country. For the reconstruction they have to raise huge fund and The Japanese has to finance this reconstruction by selling the U.S. Treasury bonds they hold with them.  Selling Treasury bills could cause a financial collapse or at best to raise the rate at which the U.S. Treasury borrows.
     For he will return more attractive to buyers. By rising interest rates on treasury bills, the bank will raise the interest rates, subsequently it will make difficult for investors and companies wanting to make money, threatening to raise unemployment and reduce business investment in the European countries. Higher rate of interest will show a heavy impact on real estate market and the hence real-estate market will be in down trend throughout the world.

     If the withdrawal of Japanese investments in U.S.  would take place, that would entail a high risk of rising interest rates and therefore higher rates of real estate financing that might make it impossible for many European countries and the borrowing will be minimum to the real estate purchase.  Perhaps the rise of oil with petro-dollars will offset the withdrawal of Japanese assets in U.S.?

Financing needs of a Business Plan

The purpose of this part is essential to determine the amount of different funding requirements deemed necessary to ensure the successful completion of the project.
- Need to block funding
- Amount of funds sought
- Return on Investment

Financial documents (see below)
Financial documents in this section should show all the various assumptions and choices made in the development plan (market share, industry growth, costs, investments, sales, etc..), Without revealing to inconsistency.

Output modes investors
Are taken into account by investors as capital gains may be realized by the investor and the liquidity of the investment.

Schedules
Financial Summary

Shared vision and shared the business plan over several years (3 minimum), the synthesis is to transform the information collected and presented in numerical predictions articulated for each period:
- Income statement,
- Cash flow statement
- Balance Sheet

The income statement
Presented on 3 to 5 years it will be monthly or quarterly for the first year.

The cash flow statement
As for the results, it is monthly or quarterly for the first year, giving it a character of annual cash flow forecast and in subsequent years.

Stock
It follows from the operational forecasts (income) and changes in cash flows.
From a starting balance sheet, corresponding to the start of the project, it is proposed for the end of each period of one year of activity.
Thus, in summary, on the economic and financial process of building a business plan is presented as follows:

To form his company size and its financing needs, all entrepreneurs will take care to first identify clearly and precisely what it needs to pursue sustainable business, the resources to implement an outcome will be. Adjustments are being made by the following iterative search for the best balance. It will avoid the opposite approach would be to their needs according to size of capital available to it.

Finally and most importantly, the owner of an SME will never lose sight that beyond these elements 'mechanistic' specific business plan, its primary mission is to sell its business plan to its bankers, partners, teams and other partners. .. Perhaps the theme of another post!

Components of a business plan

Rapid synthesis of the development plan in a few dozen lines, the executive summary should present the key points of the project to enable donors (shareholders and banks) to prompt a general idea and make them want to know more.
This includes:
- Presentation of the offer
- Description of the contract
- Description of Team
- Financing

Presentation of the offer of products / services:
The fundamental purpose of this section is to reach out clearly the characteristics of products and / or services.
The highlighted are:
- The nature of the offer
- Advancement Project
- Key technologies, patents, trademarks
- Prices and rates charged or proposed

Market - Competitive Environment
The market is a delicate operation, especially in emerging markets.
- Market characteristics and actors involved
- Customers

Targets:
The development plan is a management tool that is needed to draw lessons from the past and allow some adjustment. As such, the plan should include objectives that steps the company will achieve.

Business strategies:
The purpose of this section is to outline the strategies adopted to achieve the objectives. The key elements of this offer are products, pricing, distribution and communication.

Management Team - Management - Human Resources:
It is present in this part of the project's key people in describing their role, their experiences and their complement  are  to reveal the correspondence between them and the project.

Legal Aspects:
The description of the legal structure and capital allocation, as well as policy changes in the capital, is needed to assess the degree of coherence of the legal structure chosen (with the possible obstacles or constraints) in relation to development considered the company.
- Form - Calendar
- Changes in share capital
- Industrial Protection.