Financing And Refinancing Through Commercial Loans

Business establishments all over the world need a proper channel of cash flow so that they can maintain regularity in growth and diversification. As it is rightly said, finance is fundamental to the growth of an old business and vital for any businessman to put the business planning take into action.

Loans for business purposes are available by pledging commercial properties or by borrowing without supplying any security. In both cases, there are lots of differences like the loan eligibility, the rate of interest offered by the lender, the loan tenure and repayment conditions. A successful business project is very often an organized one. You have to plan it well and supply with right dose of capitalization. If over capitalization of business can result in lower earning per share, the under capitalization can also have its negative effect in the form of unnecessarily high stock prices that are unrealistic.

A successful businessman always takes care of under investments and over investments. More complex financial aspects are taken care of by the financial experts and brilliant business minds. But, arranging for the daily cash flow requirement is relatively low level task that is handed over to the delegates having authority to deal with day to day functioning of the company. Business loans are one of the easiest means to ensure that any shortage in funds is met effectively at lower rates and in a competitive environment.

If you are seeking funds for a new venture, it will be perfect to take care of every possible aspect so that no problem arises later on. The root level problem that people face is the lack of knowledge when they go out and start searching for a commercial loan at low rate [http://www.loans-park.co.uk/commercial-loans.html]. The second obstacle comes when finance is made available to you. It relates to how to generate profits out of it so that interest payments can be justified. Both these things can be answered by a well-planned and well-implemented course of action. There should be a clear-cut plan of what you are going to do with money and how you are going to generate the profits. This should be your biggest and legitimate concern if you are to reach the top of the business world.

Market trends and in-depth knowledge about the business is necessary before take a plunge into it. If you are not confident, it is not advisable to take commercial business loans and risk your capital; business is surely not a fun expedition. On the other hand, there are people who lose valuable opportunities because they think that the cost of capital is too high. The market rates are bound to fluctuate in the market. There is an opportunity to refinance commercial loans if the interest rates fall drastically in the time to come. So, do not waste too much of your precious time and proceed with your plans if you are confident of the business project you are handling.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting ask4loan.co.uk as a finance specialist.

Two Superior Products of Mitsubishi Cars

If you are looking for the car maker that offer wonderful and trustworthy car in the industry, the answer is The Mitsubishi Group of Companies. Annually, they always try to provide the market and the industry with excellent cars just like other auto makers.

The Mitsubishi has been making a great development in their selling with the production that is increasing of over 12 % since last year. They are still behind the types of Ford and Toyota who take over the car production market. However, with the growth in sales for Middle East, African, North American and Russia markets, two Mitsubishi cars that are the Outlander and the Lancer are giving contribution in gaining valuable ground on their contenders.

Recently, the public is informed that the Mitsubishi Company is ensuring that two of its cars would be well-prepared as a participant for the upcoming model.

The Mitsubishi Lancer 2008 is the model that the company claims as the one of the best selling for sedan model. This car will be holding more features with advanced technology since it has been redesigned by the company. It also has a good and successful record in the rally championship.

It was first produced in 1973 and today has reached the eighth generation that the first production begun in 2007. The Lancer has been amazingly sold for over six million units since the first time it was produced.

The Mitsubishi Outlander 2007 that is known as the type of SUV car is the other outstanding Mitsubishi cars. The sport utility vehicle Outlander has been launched in 2001 and today has reached the second generation that is first produced in 2005.

Mitsubishi has been prepared both of these cars to be ready to reap in sales and profits for the company, particularly when it is launched in the car market of America.

The Mitsubishi cars are now beginning to be more seen on the roads than ever before. The Japanese auto manufacturers always provide vehicles that are equipped with so many high technology features and gadgets for its customers that have not been yet arrived in the western.

The quality of the Mitsubishi cars is now actually beginning to show and the days that Mitsubishi required to solve the fault problem in its cars is long behind them now. The reliability and the reasonable price of the new Mitsubishi cars are the aspects that bring about the interest of the European market to purchase.

The Need for Product Innovation

Developing new products and launching them in the marketplace can be a difficult, costly and even dangerous business. So why do it? Why not leave well alone and be content with profit from existing products, concentrating effort on expanding sales of these products and finding new markets for them?

One reason is that seizing new opportunities as they emerge is a way to increase profits. (To be first in the field with a successful new product gives one the chance of creaming off large profits before effective competition develops.) But the main reason is that it is dangerous to assume that profits from existing products will continue at present levels for ever. The product life-cycle concept tells us that they will certainly not continue for ever. At different rates, over varying time-scales, all products eventually achieve market saturation and then start to decline. Even while sales volume holds up, profits may well not; and retaining sales volume and profits may call for regular updating of existing products.

For most companies, therefore, a programme of product review and development is essential; and, for all companies, to ignore this area of activity is highly dangerous. A McGraw-Hill study in the United States showed that in 1963 the percentage of sales accounted for by products introduced since 1959 was 28 per cent for transportation, 18 per cent for electrical machinery, and so on, through a whole list of categories. In the consumer goods fields successful new products introduced more recently -include a wide range of increasingly sophisticated computer games, the ‘superglues’ and a whole host of pre-prepared meals for cooking by microwave.

In consumer durables we have seen the successful introduction of video cameras and answering machines, with mobile telephones and fax machines for home use not far behind. Innovative services (intangible products) include direct purchase of insurance by telephone and ‘home banking’.

The most ‘safe’ and inexpensive way to launch a ‘new’ product is modifying an existing product.

New Products from Old

We first need to be clear what is a new product. There are basically three clear kinds of new products:

1. Innovative products which are unique products for which there is a real need, not being met satisfactorily by an existing product. Penicillin when first introduced fell into this category, as did the telephone, the internal combustion engine, and chloroform. We can also describe as innovative those products which, while replacing existing goods that have been satisfying existing markets quite well, offer totally different solutions. Examples would be television partially replacing the cinema and the radio, the zip fastener and later Velcro instead of strings or buttons, and solar power for other energy sources;

2. Adaptive products which offer significantly different variations on existing products: they include such items as instant coffee, freeze-dried foods, self-adhesive wallpaper, and typewriters with a memory. Another kind of variation is represented by package changes, styling modifications, new designs and colours.

3. Imitative products are already being sold by someone else but further sales opportunities exist for an additional brand, with or without minor modifications. The divisions between these categories are obviously very fuzzy. Indeed, some authors have distinguished as many as a dozen different ways in which a product can be ‘new’.

The truly innovative product is rare. Adaptive new products can sometimes necessitate a great deal of new technology and extensive research and development, though a ‘new’ product can often be produced by changes to an existing one. These may range from relatively minor changes, which effectively extend the life-cycle of a product, to much more extensive improvements.

An example quoted by Peter Drucker that covers both is nylon, which was introduced in the U.S.A. by Du Pont and fairly rapidly became the dominant fiber in women’s hosiery. However, once this market was saturated, the growth curve flattened. Du Pont had anticipated this and had developed strategies for providing further increases in sales of nylon stockings by such tactics as the following:

1. Introducing a wider range of colors, leading to an increase in the number of stockings bought by each user and a tendency to wear different colors with different outer garments.

2. Developing new uses, such as stretch stockings and socks. In addition, they moved into other fields such as tyre cord and carpets. In this way nylon sales showed an overlapping series of life-cycle curves, giving a continuing upward trend.

The nylon success story depended both upon changing the product for existing users and making it suitable for whole new markets. Changing products for existing markets can be done in a number of ways, in particular by improvements in quality, features, and/or style.