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Funds sources

Roy — Thu, 09 Feb 2012 23:52:38 +0000

Every now and then, an opportunity comes knocking to an entrepreneur. More often than, however, those opportunities come when he or she is short on funds. Fortunately, there are many money lenders who can provide additional funds. But to be safe, the entrepreneur should be sure that the source is a licensed money lender which is accredited by the government for him to get protection. Like insurance on his submitted collateral (should it be required), and of course, insurance for himself.

Once it is established that the money lender is authorized, he can proceed with the processing of loan. An entrepreneur would not want an opportunity pass him by just because of lack of funds. He knows better that it is not everyday that opportunities will come knocking at his door. But while he is on the lookout for opportunities, the entrepreneur also knows which one to pick and which one to pass.

What is important here is that, while he may not liquid at all times, he have a list of licensed and authorized money lenders, and other reliable funds sources, so that when a good and feasible venture comes his way he will be ready and he would not “miss the bus,” so to speak.

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Getting additional funds

Roy — Thu, 23 Jun 2011 02:42:56 +0000

Most employees who rely on their twice a month salary often find it hard to make both ends meet. More often than not, they avail of payday advance from their company, if such privilege is available to them. Which is better, because most companies do not charge interest on those advances and the employee does not incur additional expenses in the form of finance charges.

Unfortunately, not all companies provide that benefit to their employees that is why workers rely on outside lenders which charges interest on money loaned. It is inevitable, unfortunately, that the regular wage earner would go to money lender sometimes.

Some finance companies have websites that allows processing of loans online and the proceeds would either be credited to the employee’s bank account or picked up at their office, saving the borrower time going to and from, just following up.

Other lenders take a couple of days to process the loan while some provide same day loans processing and releases. This is especially true if the borrower already has a record with them.

But while money lenders, finance companies, and the like, are always there to help in your times of needs, always remember that these have costs. They carry interests, finance charges and other processing costs. The key is to be prudent, as much as possible, to avoid resorting to them. And if it cannot be avoided, make sure that the money borrowed will go to their intended use.

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Xoom special offer on the Pacquiao-Mosley fight

Roy — Sat, 23 Apr 2011 22:54:56 +0000

Xoom.com, a money online transfer company, tied up with DIRECTV to for a special offer to Xoom customers to watch the Manny Pacquiao “Pacman” Pacquiao versus Sugar Shane Mosley fight for free on DIRECTV Pay-Per-View (PPV).

The company is excited to bring this opportunity for the first time. It will be available to new Xoom customers who send money to the Philippines. This promo is valued at $55. “Manny Pacquiao is a world-wide boxing phenomenon and is idolized by many Filipinos. We’re very excited to bring his fight to his biggest fans for free,” said John Kunze, President and CEO of Xoom.com

The mechanics to avail of the free viewing of the Pacquiao-Mosley fight is easy – first time Xoom.com customers just need to send a money transfer of $150 or more to the Philippines between April 20, 2011 to 10:00 p.m. PST May 7, 2011. They can then order the Pacquiao-Mosley fight from DIRECTTV Pay-Per-View by calling 1-800-531-5000 or online at directv.com/boxing. Within two weeks after the fight, eligible customers will receive the $55 Prepaid Reward card from Xoom.com towards the Pay-Per-View fee.

Of course, those who would avail of this promo from Xoom.com must have an active subscription from DIRECTV to qualify. Monthly cable TV and equipments are additional. The promotional offer is available only for the standard-definition “SD” feed of the telecast. Customers who purchase the telecast in high-definition “HD” may still participate in the promotion, but will only receive reimbursement for the SD price ($55), and will need to pay for any price difference.

To get to know more about this exciting offer from Xoom.com, visit xoom.com/manny. The promo is also subject to the terms and conditions of DIRECTV. This offer is subject to change without notice and valid until supplies last.

Xoom.com was founded in 2001 in San Francisco and is backed by leading venture firms Sequoia Capital, New Enterprise Associates and Fidelity Ventures.

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BSP said Banco Filipino ran a ‘Ponzi’ scheme

Roy — Wed, 06 Apr 2011 09:34:49 +0000

The Bangko Sentral ng Pilipinas (BSP) said in its 170-page opposition filed before the Court of Appeals that Banco Filipino Savings and Mortgage Bank was operating using the fraudulent “Ponzi” or pyramiding scheme. BSP filed the said report to justify its closure order and place Banco Filipino under the receivership of the Philippine Deposit Insurance Corp. (PDIC).

In the Ponzi scheme, named after Italian Charles Ponzi who earned notoriety for the technique in the 1920s, a company pays out returns to investors not really from its own profits, but from the investors’ own money, or those paid by subsequent depositors. The BSP said Banco Filipino lured its depositors by offering an interest of 6 to 14 percent for special savings while other banks were only giving 1.8 to 3.3 percent. The BSP alleged that the investments received were used to pay the interest of old deposits and fund its day-to-day operations.

The BSP also said that Banco Filipino owner Albert Aguirre and other directors, officers, and so-called interests of the bank borrowed P2.2 billion of the depositors’ money and never paid them back. It added that the only recourse left was to place under receivership of PDIC to protect the bank’s depositors, creditors, and the public in general.

The central bank also noted that Banco Filipino paid its officers and consultants P250 million, and that P245 million in legal fees were handed out last year to former Securities and Exchange Commission chairperson and Banco Filipino vice chairperson Perfecto Yasay, and lawyer Harry Roque. The BSP said Banco Filipino also violated the caps and limits set.

“Banks are not created for the benefit of its directors or officers. Instead Banco Filipino was being run to the extreme prejudice of its depositors since it was violating various laws and BSP regulations, including its refusal to submit periodic financial statements for the few years to hide its true financial weakness,” the BSP said.

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High risk game did it for Banco Filipino – BSP

Roy — Thu, 24 Mar 2011 12:39:06 +0000

The Bangko Sentral ng Pilipinas (BSP) said that Banco Filipino Savings and Mortage Bank was engaged in high-risk, high-yield schemes to attract depositors. But when the withdrawals started getting heavy, the bank failed to meet its obligations.

“As long as people were putting in money, then the music continued for them,” BSP Deputy Governor Nestor Espenilla Jr. said. “With other banks, the interest rate on deposits was 1, 2 or 3 percent, but Banco Filipino offered 14 percent… the problem is, people forgot the risks involved,” he added.

He also said that BSP had the authority to close banks offering excessively high-risk products. Taking note of the full-page advertisement of Banco Filipino on the newspaper claiming it had P30 billion in assets, Espenilla said that if indeed it had adequate resources, the bank should not have stopped servicing the withdrawals.

“If you are a bank, and you get deposits from the public, then you should have the resources to pay those deposits,” he said. “If the bank did not bring those funds elsewhere, then why was it not able to pay its depositors?”

In its full-page advertisement, Banco Filipino claimed it had inventory of valuable real estate properties which were acquired through foreclosures in the 1980, “These properties are coveted by many groups,” the advertisement claimed.

Listing some of its prime properties, the bank mentioned the following on the advertisement: 84 hectares in Daang Hari in Cavite; 78 hectares in Quezon City; 102 hectares in San Jose Del Monte and Norzagaray, Bulacan; 42 hectares in Naga City; 38 hectares in Pagudpod Beach, Ilocos Norte, and assets in Las Piñas and Parañaque.

“These assets have aggregate value of at least P30 billion. Total deposits are only P15 billion,” the bank said. “The Monetary Board and the Bangko Sentral are fully aware of the valuable assets held by the bank, which are worth much more than its liabilities.”

The Philippine Deposit Insurance Corp. (PDIC), which is the bank’s receiver, will convert these assets into cash to pay the bank’s deposits and creditors.

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PDIC to process payments to Banco Filipino depositors

Roy — Fri, 18 Mar 2011 07:47:26 +0000

After ordering its closure, and putting it under the receivership of the Philippine Deposit Insurance Corporation (PDIC), the next order of business is how to give back the money to the bank’s 177,652 depositors of Banco Filipino Savings and Mortgage Bank. BSP Deputy Governor Nestor Espenilla Jr. said that from the total number of depositors, 97 percent are considered small depositors and covered by the deposit insurance of P500,000 each.

Espenilla said that PDIC immediately took over the head office of Banco Filipino in Makati City on Thursday afternoon in order to secure vital records and documents, as well as prevent further dissipation of the bank’s assets. “The BSP is coordinating closely with PDIC so that deposit insurance can be paid out as soon as possible. In this connection, the condition, coverage, and quality of the records and document of Banco Filipino will be material in ensuring immediate service to depositors,” he said.

The first to be issued payments are depositors with balances of P5,000 and below, which account for about 53 percent of the total account holders. The BSP said these depositors no longer have to file their deposit insurance claims. The PDIC would immediately process and mail payments within the week.

Depositors would be receiving their money in the form of postal money order, which they can convert to cash at postal offices or at branches of Land Bank of the Philippines.

Meanwhile, those with balances above P5,000 will have to file their claims and they will still have to be validated.

“For depositors with account balances of more than P5,000, claim forms will be distributed during Depositors’ Forums to be conducted nationwide next week. During the forums, procedures, instructions and requirements for filing claims will be discussed. The schedule for claims receiving will be announced shortly after the examination of bank records,” PDIC president Jose Nograles said in a statement.

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Why time deposit is still a viable investment option

Roy — Mon, 28 Feb 2011 14:44:59 +0000

Jesus Vicente-Garcia, executive vice-president and branch banking head of Philippine Veterans Bank, believes that time deposit remains to be one of the simplest, safest and most rewarding investments . Despite the many investment options available in banks, Garcia explained that a time deposit is a sound option to grow one’s investment because it enjoys higher interest rates.

Compared to a regular savings account, a time deposit is assured of a maximized return. Garcia illustrated a P500,000 investments on Veterans Bank’s Maxi-Return Time Deposit as an example. In their time deposit, a monthly compounding interest rate of six percent will net for the depositor an interest amount of about P174,000 at the end of five years. The actual interest amount will depend on the date the time deposit was opened.

The bank EVP was quick to add that the interest rate isn’t the only reason why a time deposit is a viable option. He said, “Aside from the high interest rate that you’ll get on your time deposit, it’s also a safe way to grow your money. Your investment is intact from the start as a time deposit is not driven by market factors like investment in stocks, or in mutual funds, or UITFs (unit investment trust fund).”

Garcia also added that time deposits are covered by the Philippine Deposit Insurance Corp. (PDIC) guarantee. Being a traditional bank product, they guaranteed up to P500,000 per depositor. UITFs are not covered by PDIC guarantee.

Short term time deposits are advisable for entrepreneurs who would like to get higher interest rates than a regular savings account, yet allow them flexibility to have the funds available should they need them in their business. A long term time deposit, on the other hand, is best for those who can afford to have money tied up for a long time, and without immediate need. Longer terms obviously would higher interest rates.

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Ayala Land mulls sale of Homestarter bonds this year

Roy — Sat, 26 Feb 2011 02:24:24 +0000

Ayala Land Inc. (ALI) is planning to offer P2.02 billion worth of investment bonds, which the company called “Homestarter,” this May. The property giant would like to offer the bonds to retail investors who would like to put up seed money to buy residential units. This will be the fourth time that ALI will be offering the Homestarter bonds and also the largest since they offered it in 2006.

ALI chief finance officer Jaime Ysmael said, “The increased size is intended to support the significant increase in residential launches this year. The bonds are intended to support our sales effort by providing an opportunity for prospective buyers to save up on the equity required for the purchase of residential units.” He added that the bonds will be sold through a general public offering to retail investors.

The company tagged BPI Capital Corp and SB Capital to underwrite the offering, as stated in their disclosure to the Philippine Stock Exchange. The investment instruments will be price d at 100 percent of face value and will mature three years from initial issue date.

ALI will use the proceeds from the sale of bonds for their general corporate purposes. The company has already set aside P33 billion in capital outlays for 2011, the largest capital spending to be committed by a company in a single year.

The Ayala Land Homestarter Bonds were created to boost residential sales while allowing the company to raise fresh funds. With these instruments, investors are required to set aside at least P5,000 a month for the next three years, or a total of P180,000. During the investment period, a bondholder may, at any time, select an Ayala-developed property under various brands, such as the Ayala Land Premier, the Alveo, Avida property or its new brand of affordable housing called Amaia, and apply the bond as payment.

If bondholders forego of the option to use the bonds as payment for properties, cash plus the interest earned will be paid on the maturity date of the instruments.

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Learning foreign exchange trading

Roy — Wed, 23 Feb 2011 05:53:41 +0000

Entrepreneurs who know the in and out of the lucrative foreign exchange business are making a killing. If you have the money and time to invest, you might want to consider investing in foreign exchange too. Just in case you do not know anything about the business, there are many online sources that can teach you the rudiments of the industry.

One company, the iFOREX, recently just launched a unique education program, the main target of which are those who has no or little experience in the foreign exchange industry, or Forex. One of the leading online trading company, iForex wants to broaden its reach by teaching more people on online currencies trading.

Learning the Forex trading business can be easily learned by iForex’s educational packages, which includes a one-on-one training session.

However, iForex isn’t limited to newbie traders alone, because they have been providing state of the art service to intermediate and professional traders as well. Anyone can be among those who are gaining in this industry. If you believe that foreign exchange trading is for you, and to learn more about iForex, its services and tutorials that are customized into over languages, you can visit their website at www.iforex.com

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Personal Loans for additional capital

Roy — Sat, 15 Jan 2011 22:31:12 +0000

An opportunity comes when we least expect it, but an astute entrepreneur is always on the lookout for this. That is why when he stumbles upon a really hot opportunity, he does not hesitate to get Business Loans if lacks the funding just so the chance for another investment opportunity would not escape him. He would always know which opportunity to grab and which one would not be worth his time.

For an aspiring, start-up, or a newbie entrepreneur, getting a business loan may not be an option as he does not have business papers or enough collateral to offer for security yet. He could apply for Payday Loans or personal loans in lending companies who accommodate employees in need of emergency fundings.

Loans however should be his last option. Because borrowed money have costs and if not managed properly, the finance charge could cause him to lose. Make sure the opportunity is worth the additional cost, or as often advised by expert, use money with the least costs. Like savings, borrowed money from friends or relatives without interests, or sell some personal assets and convert them to cash to be used for additional funding.

And if it is inevitable that a loan is needed to acquire the additional cash, be sure that it would be used for the intended investment and would not be diverted to other non-earning expenses… which the most common mistakes of the inexperienced who suddenly receives extra cash.

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When investment opportunities arrise

Roy — Sat, 08 Jan 2011 02:46:13 +0000

There is nothing more frustrating for an entrepreneur, whether seasoned, aspiring or a star-up, than when an opportunity drops on his lap and he has no excess cash to invest. Especially when it is a low-risk and high return investment opportunity. It would have been nice to that excess cash when such opportunity come, otherwise, the entrepreneur could just avail of Online Loans to get the additional investing money that he needs. It is not such a bad decision actually, especially if the returns on the planned investment is higher than the cost of the money borrowed. Or if the cost of the money is actually higher, and yet the benefits could be reaped in the long run, it is still a good investment decision.

For employees who wants to escape the rat race and become entrepreneurs, one of the most common source of capital is getting Personal Loan, either from their company or outside lending companies who accommodate employees looking for additional with minimal or no securities required other than a certificate of employment.

Another source of extra cash, and perhaps most common, are Credit Cards as most employees and entrepreneurs have one. Credit card companies made it easier for anyone who have regular income to acquire one these days. Whatever your choice is, just be sure that the investment, and its long term benefits, exceeds the cost of money borrowed.

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Too much holidays spending

Roy — Sun, 02 Jan 2011 02:09:54 +0000

Christmas and New Year has just passed and like most people, nothing brings out the spender and the generosity in you like the Christmas. And when the smoke settled down, you find yourself short in cash and an instant cash advance immediately entered your mind as one of the options to help you make it through the next payday.

So you seek out where to find sources of instant cash, lending companies who are willing to lend with least requirement and fast processing time. You both looked for offline and online cash advance sources. You tried to find as many as you can, so you can compare which one has the lowest interest and the most affordable terms. You do not want to get tied up with loan for a long time. You are looking for emergency cash.

That is the right idea. If you did find an instant cash advances company who is willing to accommodate you on such a short notice, remember for what purpose you are getting it — just to tidy up, until you finally recovered from too much holiday spendings. So manage you finances well. Money borrowed has costs, if not handled well, you might yourself in deeper trouble than before. Next time, be wise in your spending.

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Wise investing

Roy — Tue, 21 Dec 2010 23:03:00 +0000

Wise entrepreneurs know that it is not advisable to “put your eggs in one basket,” that is why you find them having diversified investment. They would either have another business, have a joint venture with other entrepreneurs, or spend in their excess money in bonds to earn passive income.

Many would prefer the bonds investment, as like what I mentioned, it is a passive income. Entrepreneurs are always on the lookout for passive income. You can blame it on “Rich Dad, Poor Dad” book which taught that instead of working for money, you should “make your money work for you.”

That refer to passive income, where you invest in bonds, penny stocks, and other investment instruments, and then you do not have to work for it because your money grows in time. If you understand the how to play the stock trading, you know you can invest in blue chips, which could cost higher but are bound to give you higher returns.

Another advise from many entrepreneurs when it comes to investing, invest only “money you can afford to lose.” That means, your excess cash – money that you will not be needing, because of your liquidity, for a long period of time. Chances are, investments could hold your money for some period. Be sure to check and forecast your finances before investing in bonds and stocks.

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The holiday rush and saving money on your cards

Roy — Sat, 18 Dec 2010 14:02:12 +0000

Christmas is indeed around the corner, and the mad holiday rush is on. Make sure you have enough cash just in case you spot a great sale or something you think is a perfect gift for “someone who has it all.” Unfortunately, many banks are closed during the holidays, and you really do not want carrying big cash around, and for a good reason.

One good thing though, is that many stores now, especially those in the malls, have merchant accounts and therefore you can purchase with the use of your credit card. That is the benefit of having a good credit, you really do not need to carry cash. Paying with the plastic is much more convenient really.

But be weary though, that convenience can be very tempting. You have to be wise in using and managing your balances in your credit card. Before you know it, your credit card bill could pile up if you are not conscious of your purchases.

One good way to save money is to pay your credit balances in full, instead of just the minimum amount due. That way, you can avoid the finance charges on the balances left on your card. Remember that you are just using your card as a convenient way of paying for your purchases so you won’t have to carry cash.

So shop and join the holiday rush and pay with plastic money if you must. But be wise, and always pay in full, if you can, when the credit card bill arrives.

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Wanting to get a good deal

Roy — Fri, 17 Dec 2010 22:57:05 +0000

We all one to get a good deal, I mean who doesn’t, right? We all want to get more for our money. So as we look out for better deals, it’s lucky that we could stumble to some coupons. These coupons are also available online, and sometimes they are called promotional codes, discount codes, online promotion codes, or what-have-you.

In music, it’s no different. There are lots of sites that offer discount codes, discount coupons, discount promos and more. Sites like Best Online Coupon has something like Musicians Friend coupon codes where you save up to 88% in discounts. The good thing about that, is you are getting originals and bootleg are pirated copies. You do not have to resort to piracy to get cheaper deals.

With Best Online Coupon’s Musician Friend Coupons, you can save on your purchases and at the same help prevent the spread of piracy. It’s like hitting two birds in one stone. Save money, and doing your share. It could make a perfect gift for the holidays.

But Best Online Coupons isn’t just limited to music there are a lot of great offers which could get great discounts. If you haven’t completed your Christmas shopping for your gift list, why not check them so you can save and complete your list.

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Short of funds this holiday?

Roy — Sat, 11 Dec 2010 23:12:35 +0000

The holiday season almost, always brings out the shopaholics in us, and that’s just because we love to buy gifts for our love ones. Unfortunately, this thoughtfulness often depletes our finances. Good thing there are payday loans available for us to stretch our budget so we can buy the presents we think our love ones deserve to receive.

Because while we should be practical and prudent, even in a occasion like this, we still could not let the holiday pass without showing the people we love how we feel for them. It is also a good way to express our gratitude to them for being there in the year that just passed.

So if you still need to buy more gifts and yet you are already short on cash, try to look around for payday loans, and try to scout for more than one. That way, you can compare their rates, their conditions – penalties, service charges and the like. You do not want to find yourself in a fix sooner or later, right?

If you do decide to avail of those payday loans, make it your last resort. And be sure to plan your finances so you can immediately pay if off. Remember, it’s money with a cost. If you can find alternate gifts which are cheaper and yet express the same thought, that would be better. Happy holidays!

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Jueteng for good?

arbe — Thu, 30 Sep 2010 07:10:11 +0000

How many years ago since our former president Joseph Ejercito Estrada was kicked out on the palace because one of the issue that he was involved was in jueteng. Does the government really needs this fight against this illegal gambling? Or many in the government are making money for themselves out of it.

Now that the issue has been discussed again by the senate and the congress. Can they this time trace who is or who are the real jueteng lords that behind all this.

But what if the government agrees on others saying that why not legalize the jueteng? On some point, now that jueteng is illegal, there is the fact that many poor people are making a living out of it. Imagine if the jueteng is disbanded many people will lose their living. So for some they are asking that why not legalize the jueteng instead of disbanding it so that it can help people have a job in a legal way.

The government can also have a good profit out of it if they can manage it properly. And can be another source of capital investment from the foreign investors.

So why not the administration consider this all over again? We can never really tell if this will be the one of the turn outs of this administration.

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Printing your business collaterals

Roy — Sat, 14 Aug 2010 01:45:13 +0000

Starting on your business, you need to get the word out there that your company is existing and that you can provide the services and products that your potential target market are looking for. Printing your brochures, letterhead, business cards and other collaterals are tops on the list. With today’s technology and availability of desktop printing at our fingertips, it is very tempting to do all of these on our own, thinking that it would save us money. But actually, if we are not careful, we could actually be losing more in the long run.

Flyer Printing and other business and marketing collateral, should always be entrusted to professionals. You may think that it will cost you more, but it is actually a very good investment, especially when you are just starting in your business and wants to establish your company image.

Professional printers hire graphic artists and expert marketing people who knows how to best represent your company by designing a logo, color combination and other details that will best represent your company, your goals, your products, services and the image you want to be known for. Don’t fret the extra cost. Your company’s image is always worth the investment.

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Reverse and other mortgages

Roy — Sat, 17 Jul 2010 10:27:41 +0000

One of the options of senior citizens when it comes to financing or getting additional cash, whether for personal use or to invest in business is the reverse mortgage where they offer their equity in their house as collateral. And during the term of the loan, they have no cash outlay, meaning they do not have any loan amortizations to pay. When the homeowner dies, or leaves the home for some reasons, the house is sold and the proceeds of which will be applied to the payment of reverse mortgage.

If this the first time you encountered this type of mortgage, the most obvious questions you might want to ask is how the reverse mortgage works and why do the borrower does not pay any amortizations on the loan? And is it really a feasible way to get additional cash for a person in his old age? Should he even have to apply for a loan at all? And who in his right mind would lend to an old man? And other stuff like that. While it may really sound complicated, it is fairly a simple deal at all. The old man borrow, enjoys the money in whatever way he chooses, he dies, the house is sold to pay the loan. Loan finished.

The best way to understand reverse mortgage, is to compare it with the forward loan. Simply put, in a forward loan, the borrower remits regular payment on the loan, and as his balance on the loan decreases, his equity on the house increases. As oppose to a reverse mortgage where he never pays any amortization for the loan and all interest in his loan is added to lien on his property. And when the property is sold upon his death, or he left the house for some reason, the proceeds will be applied on the lien on the property – which the loan plus all the accumulated interest.

Heloc vs Hecm loan

Another type we can compare reverse mortgage (HECM) with is the Home Equity Line of Credit (HELOC). We all know what a reverse mortgage or HECM is, HELOC on the other hand, is a loan where the lender agrees to lend to the borrower a maximum amount which he can avail over an agreed period of time, which called the term of the loan, likewise with borrower’s equity to the house as the collateral.

As opposed to forward mortgage, the borrower does not receive the lump sum amount of the loan in advance. It is like a revolving fund which he can draw from whenever the need arises, such as house renovation or emergency hospital expenses, as long as he doesn’t exceed his credit limit and his credit term.

Now, as to which of the three is the best option for a borrower is really on a case-to-case basis. The borrower must consider the projection of interest rates, his liquidity in the next five or ten years, and the fluctuation of the economy. He can discuss this better with a credit consultant before he ava

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On getting loans for capital

Roy — Mon, 24 May 2010 14:07:33 +0000

Many believe that the best way to get out of the rat race is to be an entrepreneur. And they are right. However, usually the problem of mos aspiring entrepreneur is where to get capital. Personal Loans are usually that way that most entrepreneurs start, that is after exhausting their savings, and they still need additional capital.

When getting personal loans, be sure to find the one with the least cost. Meaning, the one with the lowest interest, or no interest if possible. Like borrowing from parents, friends and other relatives.

Payday Loans or salary loans comes the next option for most employed individuals. While this already has costs involved, that is interest on the borrowed amount, it does not require any collateral. Usually a certification of employment and/or a proof of salary received.

And then there are some who rely on pawnshops for additional capital, where they bring their jewelries or anything of value accepted by the pawnshops.

Business Loans usually come last, and this is for established businesses who needs additional capital for expansion. These types usually require documents like financial statements and there might also be a need for a collateral to secure the loan.

Whatever is the choice of funds sources, it is important that the borrowed money be used for their intended purpose and should not be diverted for another expenditure, no matter how tempting it can be. An entrepreneur must learn how to be prudent and practice delayed gratification.