Best Car Loan Finance Terms Explained

Best Car Loan Finance Terms Explained

Understanding more about the car finance market is key to finding the best car loan deals for you. You need to know what the main finance terms are, so that you can work out exactly what each loan deal means. If you do not understand parts of your loan deal, then you could be agreeing to something that is unsuitable for you or costs you more money than you realised.

You can research more about finance easily online. You will only need to learn those main terms that will apply to APR products when you are looking for the best car loan deals. Most car loans are straightforward but if you are not used to credit products, then some words may be unfamiliar to you. Take the time to look up anything you do not understand. Don’t be afraid to ask the loan provider more questions to clarify any points on each loan deal you look at.

Car Loan Glossary

There many common terms used in the credit markets. Here are just a few basic terms you may come across when you are looking at the best car loan deals:

• APR (Annual Percentage Rate) – this is the amount at which the loan will be offered to a consumer. All APR includes all interest charges and associated costs where the details must be provided for loans and if you are unsure, you need to contact your lender for more information. Part of finding the best car loan deals is comparing APR offers from lenders.

• Base Price – the base price is just the standard sale price of a vehicle before any optional extras are added such as Sat Nav, alloy wheels, extended warrantees etc.

• Breach of Contract – this is something everyone who signs a loan agreement needs to be wary of. Each loan is a commitment between the lender and the borrower. If either party fails to carry out their responsibilities then it could result in a breach of contract. This could happen if you were to miss any of your monthly repayments on the loan and could land you with some serious financial problems.

• Guarantor – sometimes a loan provider may require you to have a guarantor before they will accept you for one of their best car loan deals. This can occur if you have a ‘less than perfect’ credit history or no credit history at all, at the start. The guarantor would agree to pay the debt remaining from the loan, if you are suddenly unable to meet your responsibilities.

• Installment Plan – many of the best car loan deals are based on installment plans. This means you would be able to pay off the loan in regular monthly installments over a specific time period.…

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Car Loan Advice for First Time Buyers

Car Loan Advice for First Time Buyers

If you are buying a car for the first time you may find the market place a little overwhelming. There are many different makes and models to choose from and many ways to finance your purchase. Get as much help as possible to get the best car loan for your needs.

Car Finance

Very few people can set aside money to buy a new car. This is why car financing deals are widely available. They offer an effective and affordable way for consumers to borrow medium amounts of money to buy a new car. Getting the best car loan for your budget and situation is not always easy. You need to shop around and make sure you understand the market before you agree to any agreement.

Buy Your First Car

Before you decide on the best car loan deal, you need to know several types of cars that you want to buy. This will help you decide how much money you should borrow. Buying your first car can be fun but also stressful. You will want to make sure you get the right car for your needs. Here are some tips for buying your first car:

• Shopping – make sure you shop when looking for a new car. Prices can vary greatly across markets and you can save a lot of money by comparing prices. If you are looking for a dealer showroom, don’t forget to ask about financial options. Dealers may be able to offer some of the best car loan deals on the market and this can save you a lot of trouble.

• Stick to Your Budget – it might be too easy to take away and spend more money than you really can afford for your first car. You must set yourself a tight budget and then stick to it. Remember that even the best car loan deal will cost you money in the long run. You have to pay back the interest on the loan and the more you borrow, the more interest you can pay.

• The Right Car for Your Needs – You need to think carefully about what you will use for your car. If you have a large family then space can be a big consideration. A sporty coupe might be fun but it won’t suit you and can be expensive to insure. Always try to define what you need from your car and then find a model that can meet your requirements and budget.

Once you are sure what type of car you need, you can start looking for the best car loan deals on the market. You will then know how much you need to borrow to get the perfect first car for you.…

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Alternative Sources of Finance for Uganda: Mara Launch Fund

One of the alternative sources of finance for Uganda is the Mara Launch fund. For many Ugandans, particularly those starting out in business with only a concept, this is a good place to start.

Basic information

Target: Start ups and early stage businesses

Sector focus: All

Amounts provided: UGX 5,000,000- UGX 10,000,000

Funding type: Venture capital

Means, rather than providing a loan, the fund takes a % of shares in the company

Key criteria

Model can be repeated across Africa;

Profitable business within 3-5 years (exit period for fund);

Strong management

Further information

search online for “Mara Launch Fund”

Tel: +256(0)414 233 700/800

Who is behind the fund?

Ashish J. Thakkar; CEO,Mara Group;

Alex Rezida, Partner at Nangwala, Rezida & Co. advocates; and

Peter Mukiza, Managing Partner in Uganda for Quantum capital.

What is the process like?

1. Submit business  plan should include information consistent with the key criteria for the fund.

2. Introductory meeting. If the fund likes the plan, the investor will meet the fund team.

3. Due  means the fund “verifies” the information presented in the plan.

4. Term sheet. Document spelling out the basic terms and conditions.

My view/tips for success in accessing the funds for your business

1. Team:Venture capital funds like Mara know that a great team will develop and implement the idea successfully. If you have no internal capacity, have a professional join you so that your plan includes a strong team.

2. Executive summary. Investors are busy people and so your summary, usually one page, should have one aim in mind: “Make them eager to turn the pages”. In order to do this, ensure that your executive summary captures key aspects of the document including the team, the amount required, the process, the activities to date and other information that provides a “snapshot” of your concept.

3. Repeatable model. The fund is looking for good business ideas that will transform Africa. Can the business model be repeatable not only in Uganda but perhaps Kenya, Rwanda, Tanzania?

4. Understand the fund and persons behind it. A core part of a successful business relationship is whether the two parties “connect”. Investors are people and they usually invest if they like the person behind it.

In July, I met Nigel Ball, director of an affiliated entity. He is a very likeable, straight talking professional. I can therefore expect that the rest of the team will be of this nature.

Otherwise, best of luck.

Disclaimer

Inachee is not an agent or connected to this entity, it is an independent thought leadership and advisory firm. The information provided is based on our research and experience. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.…

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Strategies On Ways To Uncover Venture Capital Investors

From the most important concerns of persons who are preparing to begin a organization will be to how are they going to fund their business. Obviously, an incredible business enterprise program wouldn’t function without the need of the funds to run the concept. Some people borrow funds from wealthy friends, some use crowd-funding technique even though other loan in the bank or greater however seek equity funding from a venture capital firm.

Most small business owners opt for equity funding from a venture capital firm. Nonetheless, prior to you seek approval from venture capital investors, you need to ensure that you prioritize their welfare. You should realize that after they invest inside the company, they will be aspect owners and not just mere creditors. Consequently, they will need to view long-term revenue with your company.

Strategies On Ways To Uncover Venture Capital Investors

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Here are other recommendations on how to find venture capital investors:

  1. Make sure to come up with concrete business enterprise plan presentation – most investors look for companies with great plans that they’re able to support. You may not count on investors to are available in without having compelling suggestions for the business enterprise. As a result, ahead of seeking for VC’s, it is best to 1st care for the company plan that you will present to them.
  2. Show the investors the return of investment that they could expect – most investors are seeking to three to five occasions return of investments. You ought to make sure to present to them clearly, how much they must anticipate in return for investing inside your business. Investors might be a lot more confident to commit money in your company when they understand that they may be dealing with a businessman who knows precisely what he’s undertaking.
  3. You should let them realize that you know what they want – VC’s are surely expecting return on their investments from 5 to seven years time. With this, you’ll want to come up with exit strategy in the starting of your discussion. You should be prepared to clarify to them where your corporation is heading as most investors look forward to a further investment opportunity. You ought to be ready to sell, merge or go public with your corporation to satisfy your investors.

Following the tips pointed out within this article will help you uncover venture capital investors that you just have to have for the organization. Even so, you ought to ensure first, that this funding solution is the a single ideal suited for your company. In case you obtain oneself not agreeing on some terms like having these investors as shareholders then you need to appear for other possibilities to fund your company.

It’s also pretty critical to assess your potential investors. You ought to make certain that they’ve long-term record of good results and that they’re reputable. It truly is also incredibly important that you are comfy with their personalities and characteristics as you’ll be partners in the corporation. You will be spending quite a few …

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Derisking To make Your business Much More Attractive To Venture Capital Investors

Derisking would be the method of removing threat components from your enterprise in an effort to make it additional eye-catching to an outdoors investor or to an outside buyer. It’s among the most significant variables in the grooming approach as a way to be an desirable corporation to invest in i.e. “Investor Ready”.

There are dozens of areas and hundreds of ways in which a business may be exposed without knowing it. In the normal course of business an owner may not worry about these factors, as they are within the “comfort zone” of operation. For an external party to get involved however, they need a much more transparent organisation so they are not confronted at a later date with skeletons in the closet.

Derisking To make Your business Much More Attractive To Venture Capital Investors

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It is important because businesses already face uncertainty. And while a venture capital investor may have a reasonable tolerance for risk, they will not welcome unnecessary risk. The goal is to control as many areas of risk as possible, so at least the risks are known. Most companies who have had an internal focus (i.e. have focused on sales, marketing and operations in order to grow) have not thought about all the areas in which they are vulnerable.

The process of derisking limits the areas of exposure, and therefore decreases exposure to uncertainty. It also increases the chance of success through improvements in clarity in almost all areas of the business.

Derisking falls into two areas – one is simply clarification (i.e. creating a contract where an informal arrangement was in place) and the other a change of substance i.e. changing a supplier because it lowers risks.

Some examples include:

Formalising employee agreements. This may mean creating contracts for employees that have previously operated without one, or strengthening existing contracts. Particular issues would be with protection of IP, ownership of IP, confidentiality and restraint of trade after employees leave.

  • Creating / clarifying written agreements with suppliers
  • Creating/ clarifying agreements with customers
  • Moving “ad hoc” sales to contracted revenue where possible
  • Formalising and documenting internal processes
  • Protection of IP – patents, designs, copyright and so on.
  • Protection of data by limiting and monitoring access to key systems (CRM, accounts etc)
  • Key employee insurance (including of the owners) in the event of death.

 Creating or clarifying credit terms and policies. Getting credit offered back within trading terms, and ensuring that all credit offered is documented with the correct application forms and personal guarantees.

 Removing reliance on key personnel, in particular vulnerability to information or relationships which may be lost on their departure. This may mean adding additional points of contact to key client accounts so individual relationships are less critical.

  • Documenting key processes – getting the knowledge out of people’s heads
  • Ensuring insurances of assets are up to date, and sufficient.
  • Lowering legal exposure (liability). Ensuring insurances are held that cover product liabilities and so on.
  • Ensuring compliance with all ATO and ASIC regulations. Creating systems for their ongoing compliance.

As you can see, this is …

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