What are Bonds and how do they work?

Bonds can be a great strategy for your business if you need money to invest in the business.

What are Bonds?
A bond is a fixed income investment in which an investor loans money to an entity which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer.

How do bonds work?
Businesses may issue bonds directly to investors instead of obtaining loans from a bank when they need to raise money to finance new projects, maintain ongoing operations, or refinance existing debts.
The indebted entity issues a bond that contractually states the interest rate that will be paid and the time at which the loaned funds must be returned. The interest rate, called the coupon rate or payment, is the return that bondholders earn for loaning their funds to the issuer.

Does your company have bonds?

Choose Virtual Office for Your Company

Nowadays, renting luxury office not always is not smart and necessary. Business became global and international and for this reason it it time to think about new options. It is time for virtual office.

A virtual office is a working space created virtually with the aid of computers and other digital equipment, i.e. without using physical premises. The functionality of a virtual office can range from a simple call forwarding to a full virtual working space for many employees, equal to a real physical office.

A virtual office has a number of benefits and advantages over a traditional, physical office. These are as follows:

• Lower costs;

• Local presence;

• Prestige;

• Employee convenience;

• Better information management;

• Possibility to choose space with better internet connection;

• Staff will not be late because of traffics;

• Connect and work with employees, customers and business partners from all over the world;

• Benefits from being able to manage your time more effectively;

• A more productive work environment;

• More opportunities to hire part-time or contract workers;

• It helps you to be eco-friendly;

• You can hire more employees if you need;

• No need for relocation.

Cost of a virtual office is less than that of a traditional office. Although virtual office services may differ depending on the specific needs of each customer, they usually include the following aspects:

• Legal address

• Call, document, mail and e-mail forwarding

• Virtual working space

• Conference calls

Now you know what virtual office is, and how a virtual office can make your life easier as a business owner. When setting up a virtual office, it is important to remember that it might not be enough to provide a sufficient economic substance to your business, which is why it is important to maintain a balance between going fully virtual and leaving some economic activities in the real space. As the actual amount of economic substance required is very different between jurisdictions.

What is INC?

If you want to open your own company, the first thing you should do is to decide what kind of legal structure your company is going to have. INC is one of the options. Would you be better structured as a limited company? The more you know, the clearer your options will be.

What is INC?
Incorporation is the formation of a new corporation (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, sports club, or a government of a new city or town. This article focuses on the process of incorporation; see also a corporation.
INC stands for Incorporating and when a company has the letters “Inc" after its name, it means the company has been incorporated.

Your company also can use:

• Corp. - If a company uses it, then the company usually is incorporated, but may not be.
• LLC is an abbreviation that means the company is a limited liability company.
• Co. is an option that simply states the business is a company, and it may not be incorporated.

Why your company should be incorporated?
Incorporated company means that the company formally designated itself as a corporation under the laws of at least one state. The incorporated company must follow all laws pertaining to corporations. Inc. means that the company is set up for success with a solid legal basis.

P2P. When lender and borrowers meet

Business owners don’t let money to be static. They invest, earn, spend it. Finances always are in movement. One of possibility to invest and take a loan is Peer-to-Peer.

P2P lending (also known as social lending or crowdlending) is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.

Take a look on video from Mauldin Economics to find some facts

Traditionally, business owners submit applications for the loan from bank, funds or are looking for investors. With P2P loans, you can invest in borrowers with good credit ratings and bad credit ratings.

Some countries has P2P platforms when one side can find other side. Platforms connect the public to businesses in need of funding.

Forbes says that P2P lending takes 2nd place in a list of the best investments to make in 2018.

Some advantages of Peer-to-Peer lending are

• Easy, fast online application process and easy to open an investment account online

• Lenders can be individuals or organization

• Lower interest rates compared with banks

• Loans available for most of your needs

• No hidden fees in monthly payments and fixed interest rate

• No prepayment penalty if you have possibility to pay off the loan earlier

• You don’t have to provide collateral such as house or car. Loans are unsecured.

• The initial investment is low

• You can invest in many loans because number is not limited

• You can reinvest the payments you receive or withdraw the funds from your account

Have you ever tried P2P lending?

Is Franchising right for you?

Many businessmen are looking for better option of business grove. There are many possibilities and one of it is franchise.

 Franchise is an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company's products.

Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains

1. name of company will be recognized immediately, 
2. tried and tested products with built-in customers for region, continents or even all over the world,
3. standard building design and equipment, so you do not need to waste time on details and save budget,
4. support in running and promoting the business at the time of starting the business,
5. ongoing help in promoting of the service or product,
6. detailed instructions and control too,
7. ready training of employees.

Franchise often is fitness clubs, beverages, children's services, television shows, hotels.

According to Franchise Direct, the most popular Global Franchise is McDonald's, KFC, 7 Eleven (store), Burger King, Marriott International (hotel).

When you choose to start franchise business,you need to be sure that you want to follow specific rules and want to choose this type of business. Maybe, you need some advices, consultations from specialists to see all advantages and disadvantages before you make a choice.

Don't be shy to ask because it is your future.