Why try to finance a car when you will not
Why try to finance a car when you will not even pay your child support
I’ve sold cars for Dodge, Ford and GMC and all the places that I have been I’ve ran into some of the same problems. This one is the worst. Why do people try to finance a car if they do not pay their child support? Do people out there really think that a bank is willing to loan you money if you will not even pay for your children? Or is it that you think that nobody will find out? Whatever it is, I made this article for all of the customers that have made me waist my time making a car deal just find out that they were behind on there child support. This is for you, stop shopping!
When you are is the car business they teach you to ask qualifying questions. That’s how you figure out whom you have in front of you, without being intrusive. Simple questions in conversation like, which lender is your current car financed through. If it is GMAC chances are that you have decent credit, or you did a few years back. How did you like them? If they say they are great, they made their payments on time. If they say I hate them they won’t stop calling me, then you probably have a problem. With that said I usually could feel a person out pretty well before we even sit down at the desk. I never found a way, without being rude to ask. Are you a deadbeat dad?
I never knew how to address that question. Most times you dont even think of it because you will see it only about once a week. Usually a person knows that their behind and they want to try to get approved over the phone, and you can tell them at home to stop shopping. That is understandable but it is those people that say, “I have good credit I don’t owe anybody.” Until you pull their credit and find out they should say, “I don’t pay anybody.” Then they have the nerve to get mad at you when you can’t sell them a car. It’s not the salesman’s fault you can’t finance a school lunch. They puff their chest out and poke their finger on the desk and say, ” if yall don’t wanna do it I’ll take my business down the road.” Or they say, “This is the fourth dealership that I have been in today and everybody keeps telling me the same thing.” Salesmen dont get paid by the hour, why wouldn’t I want you to leave in a new vehicle? That would be like calling a plumber out to fix a leak and him coming out just to say I don’t fix leaks. It is not realistic to think a salesman wants to pass on a sale, or a bank will loan you money if you will not even pay for your own children.
If your not sure what is on your credit report look. It is free and can save you a lot of time and maybe embarrassment. If bill collectors are calling you or your not paying for your children you’re probably not going to get approved. Most places wont even waist their time they send a manager to kick you out. If you can’t even afford to pay for your children it’s not time to buy a new car.
Why a Small Business Card May Make Sense for Your
Why a Small Business Card May Make Sense for Your Company’s Finances
These days, more and more credit card companies are offering business credit cards to small businesses. A business credit card is similar to a personal credit card in terms of it having a reward program and the ability to pay for something first and settle the bill later when the credit card statement arrives. But this is where the similarities end.
The fact of the matter is, business credit cards have a lot more perks to it than an individual credit card. Like a business banking account, business credit cards come with larger credit limits because businesses tend to spend a lot more than individuals or family units. Moreover, a business credit card has a whole slew of other perks that make it an absolute must for any small business.
Managing your business costs
With a small business card you can pay for a business expense up front without having to dip into your companys cash account. While this can be especially useful in times of emergency, it is useful enough for day to day operations like paying for your purchases from a supplier, or footing the bill when entertaining a client.
Most credit card companies offer very low APRs for business cards, or even 0% APR for the first six months. The ability to borrow money without interest is definitely an extremely enticing prospect for businesses, especially when they can make money out of this situation.
Apart from that, a business credit card provides a company the ability to secure multiple credit cards and set different limits on them. This can be useful if you want to authorize your employees to make payments for certain items, and not overspending on their business credit cards.
Segregating your expenses
One of the hassles in business is bookkeeping. In order to keep track of your business finances, you would have to keep track of receipts and sort them into different categories for tax and accounting purposes. Also, you may need to separate your business and personal expenses as well.
With a business credit card, you dont need to do all that. Most credit card companies provide detailed statements of your expenses charged to the card that are grouped accordingly, so you dont have to sort them out. Its like having an accountant for free!
Keeping your business and personal expenses separated is also a cakewalk simply charge your business related payments to your business credit card and your personal ones to your personal card.
Using Business Credit Cards to Finance Small Business
When the economy struggles and default rates increase, lending standards can get mighty tough, especially for unsecured micro-loans. Banks may continue to court small business during these times, but borrowing will be an uphill climb. There may be one source of financing, however, that will remain plentiful and accessible even in tough times: the business credit card.
Not too long ago, under these circumstances, small business entrepreneurs did bank on business credit cards for their financing needs, according the Small Business Administrations annual micro-loan study, which tracks trends in loans of less than $100,000. Even during times when traditional commercial lending essentially remain flat, small business loans can grow by as much as 10 percent. This may be an indication of the success of banks small business campaigns, offering as a come-on a plethora of small business credit card packages or perhaps even the better methods employed by credit scoring agencies.
Today, a business owner with good standing in personal credit cards will have no problem gaining approval for business credit cards. Even in those cases where the applicants credit history is less than sterling, business credit cards are still easier to obtain than ordinary commercial loans. When commercial loans are simply not available and those occasions do arise the remaining fallback may be business credit cards. The business credit card is essentially a guaranteed line of credit, and when banks withdraw their unsecured loan offerings, the small business owner may have no recourse other than securing business credit cards.
Is financing with business credit cards prudent?
It can be the ideal solution during crunch time. Business credit cards give you a 21- to 30-day float on your money. You get a guaranteed loan albeit at high interest rates. The float you get from a business credit card does come in very handy when payments from clients become overdue, or when your business requires unexpected supplies.
This does not mean that business owners dont get into trouble with financing via business credit cards. More than a few of them have. You should not forget that while the average business owner does not generally carry large balances on the business credit cards from one month to the next, the temptation to do so is very real and it is there all the time. Most entrepreneurs are very responsible people and are prudent in handling their finances – but when their backs are up against a wall, most of them will do whatever they legally can in order to save their businesses. Racking up the balance on their business credit cards can become one such alluring option.
Barring extreme circumstances, intelligent and discriminate use of business credit cards may actually help save the business money. If you consider the savings programs carried in many business credit cards, it is possible for business credit card users to earn discounts on a lot of services couriers, car rentals, office supplies, printing, and many others. When you work for yourself, youre always looking to save the pennies. Business credit cards can help you do just that.
Unsecured Business Loans Fuel your business with a low
Unsecured Business Loans Fuel your business with a low cost finance
Every business has a vision and a mission to follow. But, to achieve these, entrepreneurs need to have leadership expertise and adequate capital to finance the business. You may have the vision to reach the new heights in the world of business, but lack of funds may be stopping you from using your skills. You need not feel disheartened, unsecured business loans can provide you with the funds you need for making a mark for yourself as a business tycoon.
Businesses vary on the basis of size. A business could be of small, medium and big size depending on the capital invested and the scale on which business operate. Businesses are also categorized on the basis of ownership or on the way they are managed such as sole proprietorship, partnership and corporations. An individual requires capital to start up or expand the business irrespective of the size of the business. Unsecured business loans can work as a great help in such cases.
Unsecured business loans are designed specifically for UK businesspersons to finance their need for capital to start up or expand a business. Unsecured business loan offers flexibility to a borrower; he can use the loan for any purpose. Purpose of borrowing an unsecured business loan may vary from person to person. The amount borrowed with an unsecured business loan can be used for the commencement of business, expansion purpose, to finance the asset or equipment purchase and refinance or to restructure finances. Some entrepreneurs use the loan proceeds as a working capital. It allows a borrower to preserve his cash and working capital.
The best thing about an unsecured business loan is that it does not require a borrower to put a security against the loan. Thus, the borrowers property is not under any risk of repossession.
Unsecured business loans are available for amounts ranging form 15,000 to 250,000. The repayment period of the loan vary from 1 to 20 years depending on the amount of loan a borrower wants and his or her credit history. This loan is best suited for short term and small cash needs.
A borrower by applying for an unsecured business loan gets the following benefits:-
oRetention of the Ownership An entrepreneur can retain the current ownership in his company instead of raising funds by selling interest in his company to an outsider.
oCash Flow management- Unsecured business loan provides borrower an access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.
oTax Advantage- Interest on the loan is tax deductible. Thus, can help in saving hard earned money of the borrower.
Each loan requires a borrower to pay interest on the amount borrowed. Unsecured business loan are usually provided at higher rate of interest as no collateral is put against the loan. You can either choose to pay a fixed interest rate or variable interest rate on the amount borrowed. In a fixed rate business loan, the interest rate applied to the outstanding principal remains constant for an agreed period that may be the loan term. Variable interest rate imply that rate of interest on the loan is not constant and fluctuates to common standard rate.
You need to understand the fact that the lender is entitled only to the interest on its loan. You are not liable to pay any percentage of the profits or a share in the company that an investor would expect.
A good credit history is always useful while applying for a loan. In case of an unsecured business loan, absence of collateral makes it necessary for a lender to recognize or identify the credit worthiness of the borrower to avoid any default by the borrower in the future. Higher the credit score, higher is the possibility of getting a cheap and fast loan, so work on your credit score and you will see it doing wonders for you.
Though, there are various lenders in the finance market. Online lenders can help you overcome all the shortcomings that you must have faced while borrowing from the traditional lenders. Apply for an online unsecured business loan that will save your time and money. You just need to fill up a small application form online which hardly takes few minutes and the lender will get back to you with the appropriate loan option. If you are looking for the best loan, then dont relax. Collect loan quotes from various lenders and compare them, I assure you will definitely end up with the best deal.
Profit maximization is the main objective behind every business. But, to accomplish it, requires a lot of hard work and dedication on the part of the entrepreneur matched with adequate capital investment. Unsecured business loan can provide with the funds for your business, follow your intuition and work with dedication. And one day you will be known among the top businessman of the world.
Understanding Finance
Finance sounds like a heavy term. It seems to be a thing only for big businessmen or imposing tycoons. This sounds to be not much of a bother to the ordinary person.
If this is the attitude, then it is time to change it. One must see finance in a different light and make things work in a different level.
What Is Finance?
Finance can be defined in many ways. Broadly, however, finance pertains to money and to the many ways it can be managed and controlled. This is the necessary money to support an endeavor or to further pursue a profitable venture.
Thus, taking on this definition, finance is a concern for everybody. It is not about big businesses only.
Why Is Finance Important?
Finance is crucial in any household and to any individual that has a future to look forward to. Here are the many ways by which finance will be significant:
Security
Security is important. This will ensure that no matter what happens, there is some ground to depend on still.
Proper financing can make the household secure from any undesirable possibilities. Like when somebody loses a job, proper allocation of the money beforehand should ensure enough cash to get by while the times are rough.
Growth
Finance also plays a big role in the advancement of any endeavor. For example, a small business can grow larger if the owner knows how to control the money that comes in for a bigger enterprise.
It is not enough to settle with just getting by in everyday. There must be some growth in the pool of wealth and resources that the household depends on. With this, success is a big possibility.
Protection
Good management of the monetary resources should also include the protection. This is a big necessity, especially for those who managed to propagate their resources.
Stability
Good financing also helps in giving the individual or the household a stable future. This means that it a happy retirement can be expected.
There are no debts or obligations to worry over. There are no suits or liabilities to watch out for. The future promises just the plain enjoyment of the fruits of your labor.
Proper Financing
There are many ways to implement a successful financing scheme. It, however, depends on the circumstances of the person and of the situation.
Here is a list of some general guidelines to take care of the finances:
1. Live within the means of the household. Do not spend too much on the unnecessary. Bank on a future first before indulging.
2. Save money. Always keep a portion of the resources for savings purposes. In the long run, this will provide a bigger pool of wealth for the household.
3. Avoid loans or credit cards as much as possible. There are some schemes that promise good offers on loans. However, if not entirely needed, stay away from this. This may only turn into a liability later on.
4. Always think of improving the current situation. This is a must to move up the ladder to success.
5. Study carefully the options. You may have the right vision, but you have to take the right steps towards that. This is also a good way to avoid wasting money and effort on fruitless agenda.
Conclusion
Finance is a matter that concerns everybody. Take it seriously.
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UK Finance for Business
Running a business and becoming successful in that venture requires a lot finance and financial assistance. In UK finance for business can be got from different sources. Business related financial services are provided by many organizations in that field. UK finance for leasing a company or organization, UK finance for debt collection, UK finance for Venture Capital can also be arranged.
There are companies that help a business in hire purchasing and arranging for leasing. You can approach such dedicated companies for such services. UK Finance for hardware funding for the information technology business is also available in companies. Leasing services for small businesses, agricultural and industrial funding operations are available in companies dedicated to that service. A company called Richard Mares Asset Finance in UK finances for agricultural and industrial setups. If you need information on UK finance for equipment leasing, mortgages and commercial finance then you can approach companies like 1st Leasing Company and 1pm.co.uk. Many options for UK finance are available with them. Just check out their website for more details on the different types of finance available with them. For UK finance from 5,000 upwards you can approach companies like 1pm. They work closely with their clients to provide what they need.
UK Finance for companies in the information technology sector can get their financing options from companies like Corporate Computer Lease Plc in UK. Such companies make IT more affordable and you get the UK finance for almost any technology spends. They have successful records of financing in UK for even Fortune 500 companies. This is one of the fastest growing UK finance companies.
Companies like Corporate Business Finance fund you for Plant, Machinery and for other corporate financial services. They provide finance in UK for many services like hire purchase, leasing, operating leases, factoring, release of capital, and commercial mortgages. Each and every business may need a unique funding requirement and it is a tedious task to arrange for funding when you need to run your business. A lot of time is wasted in searching for proper funding. Under such circumstances you can approach companies like these for UK finance for your funding requirements.
For new start ups it is difficult to get finance in UK or elsewhere. Most of the finance companies will fund only the established businesses. But companies like Oak Leasing help even the start ups since they understand the difficulties that the startups face. The problems that the start ups face are only initially. If they have a proper business plan they could come up. The team at Oak leasing would finance your startups and for any new equipments that you need. More details are available in their website.
There are companies that fund only the big companies. Finance for big companies is given by UK finance companies like the Benington Securities. It is a private enterprise brokerage. They cover only the corporate investments. There are many companies that provide UK finance for even individuals. Companies like Troman finance provide funds for the individuals and small business firms.
UK Finance and Auditing Regulatory bodies
The role of the regulatory bodies in the UK Financial dealings is very important. We cannot neglect their role in UK Finance. There are many regulatory bodies for UK Finance and Auditing. Some of them are mentioned here.
A non-governmental independent organization called the Financial Services Authority (FSA) is available in the UK. This UK Finance company is funded by the financial services industry. The policies, plans, and rules of the UK Finance company are transparent and open. It is funded by the companies that it regulates. The website of this organization has information for consumers on their rights and regulation. It also gives information on the financial products available. The financial services industry in the UK is regulated by FSA. They have enforcement powers and investigative powers. They have the power to regulate deposit taking, Insurance investments, and Mortgage lending and general insurance advice.
Financial Ombudsman Service is another organization the helps the customers to solve any UK Finance disputes with the financial firms in UK. Complaints about Banking services, credits cards, endowment policies, health and private medical insurance, mortgages, motor insurance, and National Savings & Investments can be done with the assistance of Financial Ombudsman Service. They also help you on complaints about savings plan and accounts, stocks and shares, and travel insurance. For more details on the types of coverage that is done by them you can visit their website. Before you approach them for resolving the issues it is better you complaint to the concerned organization first. If the problem is not solved by the organization then you can approach the Financial Ombudsman Service for assistance.
The public trust office is another regulatory body related to UK Finance that helps people to control their money and property. The audit commission is another independent regulatory body that is responsible for monitoring whether the public money is spent economically and efficiently. Effective spending is monitored in government services, housing and health services. Fire and rescue services and criminal justice services are also monitored for spending of the UK Finance. The audit commission works closely with the Deputy Prime Ministers office, Department of Health and the National Assembly for Wales. They aim is to achieve excellence in their work. They support local democracy and public accountability. You can reach this office in Millbank tower, Millbank, London. Visit their website for the latest news and events.
Bona Vacantia is an organization that is responsible for administering the estates of person who die without any heirs. The assets of companies and trusts that have failed are also collected by the Bona Vacantia. They also provide assistance to companies and estates. This division does these works with cost effective casework. This work is done within the legislative and legal constraints. They work in business like manner. The dealing is mostly open and informative all through the case.
The National Audit Office is another regulatory body that monitors the public spending on behalf of the Parliament. This office is lead by the Comptroller and Auditor General. The taxpayer is saved by their work.
Tips For Getting Finance After Bankruptcy
Unless you are willing to pay terribly high interest rates, you should try to raise your credit score as much as possible. The lower your credit score, the higher the risk for the lender to grant you a loan and the higher the risk, the higher the rate. This is unavoidable, of course there are special situations that may have caused your financial breakdown, but there are no means to avoid this and lenders cant take subjective facts into consideration when it comes to fixing the interest rate.
Repairing your credit
Repairing your credit may take some time, but here is the way to start. Open a savings account and start making regular deposits. You dont need to deposit large amounts, but the fact that you have an income that lets you put away an amount of money regularly will soon be recorded to your credit history and will highly contribute to raising your credit score and improving your credit history. This is just the first step but as a first step, the most important one.
Credit Cards
Once youve a reasonable amount of money in your savings account, use it to apply for a secured credit card. Secured Credit Cards are just like regular credit cards only that you can only borrow the money that youve previously transferred to an account. There is no risk for the card issuer so youll be able to get it even if your bankruptcy is close in time and your credit is not that good.
After using your secured credit card for a while you can apply (if you havent been offered one yet by that time) for an unsecured credit card. Your credit score improvement will most surely let you get approved without hassles. Make sure you use the card wisely, make small purchases pay the credit card balance always in full if possible, and never miss a payment nor make late payments.
Using your credit card wisely will help you skyrocket your credit score. Now is the time to start requesting small personal loans. Asking for small loan amounts will guarantee that youll get approved. Your regular monthly payments will do the rest, your credit score will soon reach a status where youll be able to request personal loans at very reasonable interest rates.
Final Steps
At this time you should have reached a good credit tag and youll be able to obtain any financial product that you need. Refinancing your home loan would be the next wise step to continue improving your credit score. Or you could request a home equity loan. Either of them will prove to future lenders that you are able to commit to repaying higher amount loans and that youve finally put behind your bankruptcy.
The Value of Finance and Debt Related Domain Names
Why domain names can be a good investment!
We have a number of generic finance related domain names and have recently added to these through the 14,000 investment in debtconsolidation.co.uk and the purchase of debtfree.co.uk.
It’s true that debt consolidation is one of the hottest terms especially in respect of PPC’s and we believe we will get free traffic from people guessing the domains when they are looking for debt consolidation or debt free i.e. people that are looking for debt consolidation will enter debtconsolidation.co.uk in the toolbar rather than searching for debt consolidation on a search engine. Both debt consolidation and debt free are amongst the most searched for terms on the internet and you would therefore expect a percentage of people looking for these terms to guess the domain. Many domain investors use the overture search rank as a key to the potential value of a generic domain. i.e. if a lot of people search for a term then a smaller proportion will second-guess what the domain name will be.
A good generic domain name can also help with search engine placement. Approximately 12 months ago debtconsolidation.co.uk used to be at the top of google for debt consolidation but someone must have failed to renew! www.debtconsolidation.co.uk is already on the 1st page of msn.co.uk for debt consolidation out of 17,265,739 results. Debt Consolidation is a very hard term to get to the top of especially only after website was launched 2 weeks ago. (Website is still temporary!). So I believe domain name has played a big part in it. This seems especially true for msn. Try searching for debt consolidation loans on msn and look at all the domains that are top! Only 1 in the Top 10 doesn’t have debt consolidation loan in the domain name!! That’s the beauty and the value of a generic domain!!
A domain name can also be of use through pay per click advertising (PPC). We advertise extensively through google adwords and what we have found is that the domain can have a direct effect on your Click through ratios (CTR’s) and hence the amount you need to pay per click. We advertise on google and where the domain is similar to the search terms you generate significantly more traffic (hence why espotting (miva) insist you include the search term in your title).
When you are valuing a domain for a business as well as looking at how much people will pay for a PPC it is also worth looking at how much they will pay for a successful application. This is really where the true value can be seen.
We are therefore confident that generic domain names (that are business related) are definitely good investments for the future and it’s wise to buy before others realise it too! We will definitely be looking for new ones that come available.
I think some of the bigger companies aren’t on the same page yet. It is too difficult to get approval for a purchase off someone who doesn’t understand the potential value. Often they also outsource their internet advertising so there is no one in the business that understands the internet.
So to summarise a domain name can have considerable value if it is able to generic free relevant traffic to your website. Also as the internet grows and users become more sophisticated in how they search then we would expect the value of domain names to increase further.
The Untimely Demise of MFS Pacific Finance Limited
The Untimely Demise of MFS Pacific Finance Limited
Amongst the numerous investment funds and financial institutions falling victim to the global credit crunch, one that surely need not and should not have succumbed was New Zealand-based MFS Pacific Finance Limited.
Starting life in New Zealand in 1999 as a subsidiary of ASX-listed MFS Limited (now known as Octaviar Limited), an early venture saw the Company take over the name and management of several underperforming Waltus property funds, later followed by an offer of Debenture Stock and Unsecured Notes to the New Zealand public through a registered prospectus. From the outset the Company made clear that funds raised were primarily destined for lending in the broadly diversified Australian property market, with the same interest rates offered in either AUD or NZD reflecting a significant proportion of second or even third mortgage lending. Figures to 30 September 2007 show one third of such lending as lying behind first mortgage advances from MFS Limited’s own flagship Premium Income Fund, indicating a common interest between mortgagees. Cash raised in NZD but lent as AUD was hedged back to the New Zealand currency.
Over the next few years, MFS Pacific worked diligently to establish itself within the mainstream New Zealand finance company sector with restructuring in early 2007 placing MFS Pacific Finance under NZX listed MFS New Zealand Limited (38 of total assets as a fee in exchange, the Put Option became commercially as well as legally based.
This formal agreement effectively gave MFS Pacific Finance investors legal recourse to the full financial resources of MFS Limited, in support of both Secured Debenture Stock and Unsecured Notes. By mid 2007 the level of parent MFS Limited shareholder funds had reached a massive A$1.5 billion. No wonder the relatively generous fixed interest rates on offer of 9.25 unsecured, attracted widespread support.
MFS Pacific Finance became a significant partner and supporter of financial events around New Zealand, being on hand at major seminars and conferences. Company briefings were open and frank, personnel appeared well informed and competent.
The company seemed to take constructive criticisms on board – such as early disposal of the maligned Waltus name. Details of security type, missing from early communications, were added to later prospectuses. Early attempts to evaluate the Company’s liquidity were originally answered by production of a complicated combined line and bar chart purporting to show an excess of assets over liabilities spread over time but, which to this observer at least, seemed to indicate the opposite. However, later financial statements displayed the assets and liabilities maturity profile in the standard tabular format common in New Zealand registered prospectuses with an overall receivables excess over liabilities of about 2.6 from October 2007 to A$4 in early January 2008 but this was generally in line with the broad ASX losses over the same interval, so little justification for the ensuing rout can be found here. Markets don’t just suddenly react savagely to news that has already been widely known for months.
Further confusion seems to have been generated by suitor City Pacific first showing interest in merging with or acquiring certain financial assets from MFS Limited, then withdrawing, then showing renewed interest, only to withdraw again. City Pacific appears to have problems of its own.
Also, and although flagged in general terms earlier, a Board proposal in early January to address debt by raising A$550 million from shareholders while splitting the company in two must have contributed to dissatisfaction, it does not fully explain the sudden share price collapse.
No, what really hit out of left field in mid January – vital information unknown previously to the market – was that large shareholders, including Directors, were facing margin calls on shares effectively purchased on deposit, margin calls they were unable to meet. This news appears to have unnerved other substantial holders who quickly joined a rush for the exits. As every highly leveraged property owner knows, a modest fall in the market can wipe out ones equity. Margin traders of shares face the same fate but here the financier, or margin lender, usually demands immediate payment to make good any of the finance provider’s losses. Failure to meet such demand may result in immediate sale or confiscation of the leveraged security to limit losses, this being the norm rather than the exception. The decline of MFS Limited shares over several months, in line with market sentiment, was obviously sufficient to trigger margin calls. Dumping of huge volumes on the market, including notifiable directors’ holdings, did the rest.
CEO Michael King’s conference call on 18 January, following two days of trading halt, was intended to present the separation and cash raising issues but instead oversaw a massive volume of trades, approaching 120 million shares compared to normal volumes between one and five million, and a 69 sale of Stella Group for A$1.3 billion equivalent, effectively values that arm at just over $2 billion, compared to A$2.5 billion evaluated by analysts earlier. Hence total shareholders’ funds could take a half billion dollar hit from that one item alone. Nevertheless and even if remaining assets were all to be written down by 50 p.a. interest to debenture holders over the next 20 months.
Lessons
Unfortunately MFS Pacific Finance is beyond rescue as an operating unit in its original form and its passing is a genuine loss to the New Zealand finance company sector. In addition to offering investors currency diversification, MFS Pacific carried the potential to set a new benchmark of financial support for finance company borrowings through the “Put Option”. To date no other parent/subsidiary relationship of companies listed on the New Zealand Debentures Exchange has instigated a similar enforceable guarantee. Perhaps the new “Global Credit Crunch” reality will empower investors to demand just that.
In addition, as more intricate trading mechanisms such as margin trading, stock borrowing and short selling evolve, it becomes clear that disclosure of such potentially dangerous practices must become a mandatory requirement imposed by stock exchanges or legislation if markets are to be open and informed. Private investors have quite enough risks to contend with, without the secret avarice of their own company’s directors and executives exposing them to even more.
But while the mandatory objective may prove an optimistic goal in the short term, ordinary shareholders and fixed interest investors alike can take their own action immediately, wasting no time in sending the “totally unacceptable” message loud and clear to directors and executives where margin trading is concerned.