Daily Archives: January 2, 2017

Archive of posts published in the specified Day

Jan
2

Global Financing – Hard and Soft Currency

Global financing and exchange rates are major topics when considering a venturing business abroad. In the proceeding I will explain in detail what hard and soft currencies are. I will then go into detail explaining the reasoning for the fluctuating currencies. Finally I will explain hard and soft currencies importance in managing risks.

Hard currency

Hard currency is usually from a highly industrialized country that is widely accepted around the world as a form of payment for goods and services. A hard currency is expected to remain relatively stable through a short period of time, and to be highly liquid in the forex market. Another criterion for a hard currency is that the currency must come from a politically and economically stable country. The U.S. dollar and the British pound are good examples of hard currencies (Investopedia,2008). Hard currency basically means that the currency is strong. The terms strong and weak, rising and falling, strengthening and weakening are relative terms in the world of foreign exchange (sometimes referred to as “forex”). Rising and falling, strengthening and weakening all indicate a relative change in position from a previous level. When the dollar is “strengthening,” its value is rising in relation to one or more other currencies. A strong dollar will buy more units of a foreign currency than previously. One result of a stronger dollar is that the prices of foreign goods and services drop for U.S. consumers. This may allow Americans to take the long-postponed vacation to another country, or buy a foreign car that used to be too expensive. U.S. consumers’ benefit from a strong dollar, but U.S. exporters is hurt. A strong dollar means that it takes more of a foreign currency to buy U.S. dollars. U.S. goods and services become more expensive for foreign consumers who, as a result, tend to buy fewer U.S. products. Because it takes more of a foreign currency to purchase strong dollars, products priced in dollars are more expensive when sold overseas (chicagofed,2008).

Soft currency

Soft currency is another name for “weak currency”. The values of soft currencies fluctuate often, and other countries do not want to hold these currencies due to political or economic uncertainty within the country with the soft currency. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currency to a currency such as the U.S. dollar (invest words,2008). Soft currency breaks down to the currency being very weak, an example of this would be the Mexican peso. A weak dollar also hurts some people and benefits others. When the value of the dollar falls or weakens in relation to another currency, prices of goods and services from that country rise for U.S. consumers. It takes more dollars to purchase the same amount of foreign currency to buy goods and services. That means U.S. consumers and U.S. companies that import products have reduced purchasing power. At the same time, a weak dollar …

Jan
2

Knowing How To Get Approved For Your Tractor Loan

There are some people that have an acreage having a few acres of land or a large yard and have nothing to do with it. It is best that you farm on it so that the land becomes productive. You can after all take advantage of farm equipment loans so that you can get started on your new venture. You’ll surely need a tractor to help you maintain your land however the problem of most people is that they don’t have cash to buy one. Good thing there are actually several ways that you can finance a tractor for your farming. Be sure to follow the steps below because these ways require planning and advice.

To get started, you need to know the exact size of your land. This will also help you enable to find out how many tractors you will need. This is not enough however, of course you will need to find out how much you can exactly afford. Depending on the terrain of your land, you might need one or several types of tractors. A farm equipment loan can definitely cover this for you. Tractors come in an array of sizes and horsepower or engine sizes. You need to be sure that the workload you will subject your tractor to is only that it can carry. Other options for tractors also vary which includes but is not limited to wheel configuration. Again this depends on the terrain of your land and the type of soil that you will toil. There is an online tractor data guide for your information that you can visit to help you determine the type of tractor that you need when you apply for your loan.

Bear in mind that when you shop, shop only for tractors that fit the horsepower that you need, nothing more and nothing less. Also, be sure that you consider your repayment ability. You wouldn’t want to buy something that you really cannot afford. You can look into the classified ads, local sales lots, or again try to go online to look for good deals. The latter option usually can get you hundreds of results within just a matter of minutes so it’s very convenient.

To have a better chance of getting approved for your tractor loan, it is best that you put together an impressive business plan that shows the reason why you need a tractor, how much it costs, and how profitable your upcoming business venture would be because this will determine that method of repayment that you’ll have to pay off the loan.

You can also ask dealerships if they have financing deals to take less stress off of your budget. Most of them do offer financing deals. Be sure that you bring with you your business plan and know the type and model of tractor that you’ll need. Prepare well to show them that you have the ability to pay off everything in due time. In no time, you can bet that you …