Business owners are having a tough time getting a conventional small business loan. Even credit cards, which have been used by business owners to help fund business expenses have cut their credit limits, making it hard to find funding. Many are turning to asset based lending companies as a form of alternative financing. These types of lenders include merchant cash advance lenders, banks making secured loans with direct assets, and factors. The costs to engage this lending may be higher, but in a time when some credit is better than no credit, the rate of financing in alternative asset-based loans has increased 8% in 2008, as explained by the Commercial Finance Association. (more…)

Every year, the government provides a cost of living raise to help with the growing cost of inflation. The amount of increase is based on a series of factors. People can look at the Consumer Price Index to get an idea of what each year’s increase would be but over the years, the average has been 3.2% to 3.9%. While it would be nice to see more especially with the tough economic crisis, many people are grateful for anything. Interestingly, some governmental officials have opted out of a raise but people on Social Security and those working for the Federal Government have been provided with a decent 2009 cost of living raise. (more…)

In an effort to take gas-guzzling vehicles off the road, the government has initiated a program that will give new car buyers a monetary incentive to trade in their older, less fuel efficient cars and trucks. Known affectionately in the media as the Cash for Clunkers program, the Car Allowance Rebate System, or CARS incentive program, will allow a $3500 to $4500 payday to be put into the pockets of those who wish to help the government make traveling greener. By reducing the number of less fuel efficient vehicles on the road, we can save money and help the environment in general by reducing the consumption of fossil fuels.  (more…)

When it comes to the term ‘depression’, there is still argument going on about whether the term applies to our current economic situation. While semantics are a fun way to debate away the time, the fact is that whatever you call it, the economy is in crisis and if this is not a depression, one is certainly a possibility. (more…)

According to a recent report on the legendary investor, Warren Buffet, it’s time to purchase stock in American companies. The method behind what might seem like a bout of madness for the aging investor is that when the total market value of US stocks drops to a level between 70%-80% of American Gross National Product, it’s time to buy. 

Buffet’s fantastic success as an investor is based, in part, on his practice of seeking out undervalued companies to invest in. He soon moved from turning over a profit through stocks in a company to purchasing undervalued companies and bringing the most-successful ones together into the Berkshire-Hathaway brand. But purchasing a struggling company is well out of the average investor’s financial reach. The only remaining option is to purchase a portion of that company as stock. 

It could well be said that nearly every company in the US that has the resources to continue operations is currently undervalued. With the total value of the stock market reaching the 76% mark at best, perhaps Buffet is right and its time to pull some money from under that mattress and invest it. 

Perhaps it comes down to a matter of faith. Once you decide whether or not you believe the economy will recover, the question of investing gains simplicity. If you cannot afford to lose a dime, then just like always, you should keep your money in a safe place and not worry about the stock market. However, if you have some cash on hand and want to research the possibility of creating genuine long-term wealth, it’s a great time to check out the stock market.  photo credit: ArtemFinland

Unless you live under a rock that you are no longer making payments on, you’ve heard about government efforts to revitalize the American economy. As Sarah Palin said so eloquently, “we need to shore up the economy”. As reported by Forbes, the US Senate has approved a tentative $780 Billion stimulus package that must find common ground with the larger US House package. Both proposals use a combination of government funding and tax cuts to promote a new flow of money in the American economy. 

To break it down into simple terms: A similar plan implemented in your personal finances would attempt to solve your money problems by reducing your income and increasing your debt. You could do this by working less and making up for that lack of income by paying for more of your daily needs with a credit card.

That plan wouldn’t make any sense to you unless you happened to be self-employed without insurance and needed to take time off in order to heal up from a work-related injury. In that situation, it makes sense to reduce your income and increase your debt so that you can guarantee that you’ll be able to eventually return to work. 

It’s easy to hear the numbers being thrown around about the current stimulus package and make sweeping judgements about what will or will not work. It’s much harder to find multiple perspectives on a particular situation before forming an opinion. Taking the time to research current events, finance solutions, and ways to save money will not only enable you to make better decisions for yourself, but to influence others to make smart money choices. photo credit: Phil Romans

photo credit: Clean Wal-Mart

A recent article outlining Walmart Corporation’s decision to “go green”by New York Time’s writers Stephanie Rosenbloom and Michael Barbaro should give you hope as a consumer. Why?

Walmart is such a massive company that it dictates the terms by which it purchases products. To put this in perspective, imagine you are the primary customer at a local bakery. You purchase 5-600 loaves of potato bread at this bakery each week and it’s safe to say that they would fail without your business. Understanding your position, wouldn’t you feel comfortable asking your local baker to make potato bread in round loaves instead of the typical oblong ones? Of course you would! Your neighborhood baker would be happily obliged to bake round loaves in order to keep your business. Walmart does the same thing with many of its producers. When Walmart asks GE to produce a different shape of florescent light bulb, GE spends the money to make the new light bulb because it cannot afford to lose Walmart as a customer.

Walmart’s choice to “go green” means that companies the world over have started scrambling to develop environmentally-friendly versions of their products so they don’t lose Walmart as a customer. After only two days of board meetings, Walmart has begun a dramatic evolution toward environmentally-friendly products with a force that legislators can only drool over. Walmart wants to sell you everything. They’ve decided to win your money by offering environmentally-friendly products that will save you money in the long run while costing you less in the short term. Just don’t give them all your money.

photo credit: jurvetson

Auto manufacturing in the United States is big business with a long history. Henry Ford’s implementation of the assembly line as a manufacturing process revolutionized the way Americans built cars. Nearly 100 years later, two major automakers are begging for American taxpayer dollars to shore up business models that have crumbled in the face of the current economic downturn. Chrysler LLC, and General Motors have flown, driven, and begged their way to Washington in an effort to secure the funding needed to keep their company doors open. Here are a few of their stories: (more…)

It’s understandable but also a real shame that a lot of people only give to charities when times are good. That’s because tough times are when charities most need our help - they probably have a lot more people accessing their services and will be financially struggling themselves anyway. But if you’re also finding financial life a bit of a struggle, there are still ways you can help, according to the Five Cent Nickel blog, including:

• Volunteer at a charity. Your time is also valuable and charities always need volunteers.
• Clean out your wardrobe and give some clothes to charity that you no longer need - even in tough times there is bound to be something you no longer wear or no longer fits you well.
• Clean out your cupboards and donate things like kitchen materials that you rarely use.
• Check if your favorite charities are able to accept donations of frequent flyer miles. If you’re not using them anyway then they might be able to do some good.
• Donate blood! It doesn’t cost you anything but it could save somebody’s life.

Who says that you don’t have anything to give when the economy’s so bad? There are plenty of options to consider.

There are a lot of scared and worried people out there right now. If you’re one of them, maybe you could use some of the advice Tina Su gives at her Think Simple Now site on how to overcome fear during the current economic crisis. Rather than dwelling on the problems and feeling worse and worse, Tina has several useful pieces of advice for how to emotionally survive the recession:

• Focus on what you’re able to control: For example, accept that you can’t control the stock market, but you can control your reaction to what happens to your stocks.
• Reduce news consumption: In crisis times, people tend to glue themselves to the TV to find out all the latest (bad) news - just stick to getting the basics instead and don’t make yourself more depressed.
• Be grateful: Don’t think about what you’re losing or can’t have - focus on what you have to be happy about and grateful for, like family and friends.
• Remember that things will get better: The economy runs in cycles. Things will bounce back, although we can’t be sure when.
• Make sure you have an emergency fund: Just in case you lose your job or have unexpected expenses, you should always have an emergency fund, but in times like these it’s even more important to save part of your income every month.
• Choose to be happy: Learn more about maintaining a positive attitude to life and choosing happiness rather than a negative emotion.