Consolidation – One Payday http://onepayday.com/ Thu, 24 Nov 2022 13:15:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://onepayday.com/wp-content/uploads/2021/11/icon-2-150x150.png Consolidation – One Payday http://onepayday.com/ 32 32 ECB’s Centeno sees more consolidation in Portuguese banking sector https://onepayday.com/ecbs-centeno-sees-more-consolidation-in-portuguese-banking-sector/ Wed, 23 Nov 2022 19:48:00 +0000 https://onepayday.com/ecbs-centeno-sees-more-consolidation-in-portuguese-banking-sector/ LISBON, Nov 23 (Reuters) – Further consolidation in Portugal’s banking sector is inevitable, Mario Centeno, a member of the European Central Bank, told Reuters on Wednesday, calling recent progress by the country’s banks as “remarkable”. capital strengthening and risk reduction. Analysts said Portuguese banks should bet on M&A deals to secure better terms of competition, […]]]>

LISBON, Nov 23 (Reuters) – Further consolidation in Portugal’s banking sector is inevitable, Mario Centeno, a member of the European Central Bank, told Reuters on Wednesday, calling recent progress by the country’s banks as “remarkable”. capital strengthening and risk reduction.

Analysts said Portuguese banks should bet on M&A deals to secure better terms of competition, despite the five biggest players holding 80-85% of banking assets.

Centeno said the system had made “remarkable progress” in recent years as banks strengthened their capital and improved their risk profiles, while non-performing loans (NPLs) fell to levels nearly in line with the European average. .

“After this strengthening, the consolidation of the banking system (in Portugal) and the strengthening of its institutions are absolutely crucial and it is inevitable that the system, the market, will face it,” said Centeno, who is also governor of the Bank. from Portugal. said in an interview.

While the COVID-19 pandemic and the current crisis had delayed this process, “we will do it, as always, with great tranquility”, he added.

Portuguese banks are still marked by a debt crisis and a surge in NPLs after the 2010-13 recession. They have since reduced NPLs to a total of 11.4 billion euros ($11.85 billion) in June 2022, from a peak of 50 billion euros in June 2016, according to the latest data from the Bank of Portugal.

The NPL ratio for Portuguese lenders was 3.4% of total credit in June, down from 17.9% in mid-2016.

“Although I’m very happy with the development…there’s no point in resting, we have to challenge ourselves,” Centeno said.

“It is important that this maturation takes place with a continuous strengthening of the institutions in their size, their capitalization and above all in their ability to respond to the challenges of digitalization, climate action, because all of this goes through the balance sheets of the banks. “

The largest bank is the state-owned Caixa Geral de Depositos; follow-up of Millennium bcp (BCP.LS); SantanderPortugal; Novo Banco, spun off from the collapse of Banco Espirito Santo in 2014 and controlled by US private equity fund Lone Star; and BPI, owned by the Spanish CaixaBank (CABK.MC).

($1 = 0.9623 euros)

Reporting by Sergio Goncalves and Andrei Khalip; Editing by David Latona and Leslie Adler

Our standards: The Thomson Reuters Trust Principles.

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Budget 2023: Fiscal consolidation and revenue mobilization must be key – Razia Khan https://onepayday.com/budget-2023-fiscal-consolidation-and-revenue-mobilization-must-be-key-razia-khan/ Wed, 23 Nov 2022 17:06:08 +0000 https://onepayday.com/budget-2023-fiscal-consolidation-and-revenue-mobilization-must-be-key-razia-khan/ Chief Economist and Head of Research at Standard Chartered Bank, Razia Khan, said Ghana’s 2023 budget must focus on fiscal consolidation programs and large-scale revenue mobilization measures. Ms Khan added that there must be spending cuts to help restore investor confidence in the economy and also demonstrate the government’s commitment to take bold steps to […]]]>

Chief Economist and Head of Research at Standard Chartered Bank, Razia Khan, said Ghana’s 2023 budget must focus on fiscal consolidation programs and large-scale revenue mobilization measures.

Ms Khan added that there must be spending cuts to help restore investor confidence in the economy and also demonstrate the government’s commitment to take bold steps to stabilize the economy.

She revealed it in an interview with ENTERPRISE JOY in London.

She advised the government to demonstrate Ghana’s debt restructuring plans.

“There should be attempts by the government to curb the growth of spending looking at what has happened in the country with respect to local financing issues over the past few months,” she said. declared.

Turning to debt servicing, Ms Khan said there was a need for the government to show how it intends to service the debt in the budget as “most market participants will use this to infer what the plan is. in debt restructuring”. .

“This could be very necessary due to the impact of the rising inflation rate on the economy over the past few months,” she said.

Khan on Ghanaian Cedi and inflation rate

Ms. Khan suggested a further hike in the key rate by the Bank of Ghana to help stabilize the cedi and slow the rate of inflation.

The advice comes as the Bank of Ghana’s Monetary Policy Committee is meeting to review developments in the economy.

The meeting, which began on Monday, November 21, is scheduled to end on Friday, November 25, 2022. Committee Chair Dr. Ernest Addison is expected to announce the decision on Monday, November 28, 2022.

Ms Khan argued that a tightening of liquidity might be needed, as well as a further increase in the liquidity ratio reserves due to its impact on the local currency and the rate of inflation.

“Inflation is something that affects all Ghanaians, so the authorities’ efforts should really focus on what is needed for stabilization to take place,” she said.

Government on the presentation of the 2023 budget

Finance Minister Ken Ofori-Atta revealed earlier that the 2023 budget will focus on fiscal adjustment programs, value for money and will be influenced by the outcome of ongoing negotiations with the International Monetary Fund for an economic program.

The government is also expected to come up with programs that will help tackle the country’s budget deficit as well as the country’s outstanding debt.

Ghana’s outstanding debt is now over 402 billion yen at the end of July 2022.

Some economic watchers have predicted the 2023 budget will be “tight”, with some already describing it as an austere budget.

An official familiar with the presentation noted that the government will also want to demonstrate its commitment to consolidating public finances on the basis of other programs.

“We will also come up with initiatives that will demonstrate the government’s commitment to value for money next year,” a source said.

DISCLAIMER: The views, comments, opinions, contributions and statements made by readers and contributors on this platform do not necessarily represent the views or policies of Multimedia Group Limited.

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Consolidation of Rivers, continuity budget scales at first reading in the Assembly https://onepayday.com/consolidation-of-rivers-continuity-budget-scales-at-first-reading-in-the-assembly/ Tue, 22 Nov 2022 23:16:40 +0000 https://onepayday.com/consolidation-of-rivers-continuity-budget-scales-at-first-reading-in-the-assembly/ Rivers State Governor, Chief Nyesom Wike said Nigeria desperately needed a unifier who would steer governance affairs without any form of segregation.Wike spoke at the inauguration of the Mgbuitanwo Internal Roads in the Emohua Local Government Area of ​​the state.Mgbuitanwo internal roads were inaugurated by the New Nigeria Peoples Party (NNPP) presidential candidate, Senator Rabiu […]]]>

Rivers State Governor, Chief Nyesom Wike said Nigeria desperately needed a unifier who would steer governance affairs without any form of segregation.
Wike spoke at the inauguration of the Mgbuitanwo Internal Roads in the Emohua Local Government Area of ​​the state.
Mgbuitanwo internal roads were inaugurated by the New Nigeria Peoples Party (NNPP) presidential candidate, Senator Rabiu Musa Kwankwaso last Monday.
The governor expressed grave concern about how the country’s diversity has been grossly threatened by those who have resorted to campaigns based on ethnic and regional sentiments.
According to him, such a parochial trend would make Nigerians more divided than ever along religious and ethnic lines.
The Governor of Rivers State further stated that Integrity Governors are committed to always doing the right thing as long as it helps move the country forward.
“That doesn’t mean don’t vote for a Yoruba man, don’t vote for an Igbo man. That’s not what we need in this country right now. What we need is a man who will bring Nigeria together. We of the Integrity Group will continue to support all that is right, all that will help this country. »
The governor explained that he tried unsuccessfully to persuade the Peoples Democratic Party (PDP) leaders not to let Kwankwaso leave the party because of the strategic importance of Kano State.
“When you wanted to leave PDP, I came to your house in Abuja. I said sir, don’t leave the party. I begged you. I came twice. Those who have never had good intentions for this party, who will want to take control where they have never sown, said no, leave Kwankwaso to leave. Who is he? Let him go! After all, I was Speaker of the Senate when he was Deputy Speaker of the House of Representatives. I said no, he is an asset to the party in Kano State. Kano is very important to our party, so no matter what, let’s keep it; let’s handle it. They said, ‘let him go’.
“I said the more the merrier. We are an opposition party; we cannot continue to hunt our people. Whoever is angry, let’s keep it, they said no. They said I went to see Kwankwaso, I said yes, because I know that with him in Kano, chances are it will be better for us. But if we let him go, the backlash will be too heavy. They said no. Kwankwaso has left us.
The Governor of Rivers State described the NNPP Presidential candidate and former Governor of Kano State as a man of integrity and numbered among the leaders Nigeria needs.
According to him, the NNPP presidential candidate had assured him that his supporters who were still in the PDP would vote for him in the PDP presidential primary, and they did.
Wike has offered to provide protocol and logistical support to Kwankwaso whenever he wishes to campaign in Rivers State.
“If you come to campaign here, I will provide the logistical support for you to campaign. You are a former governor.
He, however, told Kwankwaso that it was difficult for any other party to win in Rivers State.
“Therefore, it will be useless for you to waste resources, thinking that you will win the election for any candidate of your party in this state,” Wike said.
On his comment on the release of the 13% unpaid diversion money from 1999 to date, by President Muhammadu Buhari, the Governor said he never said that other Niger Delta Governors would have to show proof of what they had done with their states’ share.
Instead, Wike said he only expressed his gratitude to Buhari for releasing the money, which helped him execute a plethora of projects in the state.
“I never said that people had to account for their money. I never told anyone. All I said was that people should thank Buhari for me, for giving me money to do all these projects. That’s all I said. If you interpret something different, that’s up to you. Is it wrong to thank someone who has done well for you?
Wike pointed out that his administration has never spent more than 14 months completing a project in the state.
He said the Mgbuitanwo domestic routes were among 20 other projects like the 9th and 10th flyovers which were all reported in June 2021, all of which were completed during the period.
Wike said good governance is about the welfare of the people, and if someone in government or close to a senior official is unable to attract projects to their community, that person has failed.
The governor pointed out that his administration had delivered the interior roads of Mgbuitanwo, where Senator Andrew Uchendu, a leader of the All Progressives Congress (APC), is from.
He regretted that the former senator had not succeeded, while he was in government, in making the path for his community.
Wike also mocked former agriculture commissioner Emma Chinda for failing to entice the government to do the roads for his Ogbakiri community, which his administration was now delivering to the people.
During the inauguration, the Presidential candidate of the New Nigeria People’s Party (NNPP), Senator Rabiu Musa Kwankwaso, praised Wike for engaging Julius Berger Nigeria Plc to provide the best quality of roads in a rural community.
Such a gesture, noted Kwankwaso, speaks of a leader who loves his people and did his best to improve their lot in all areas, including the provision of quality educational infrastructure.
Kwankwaso pointed out that those who undermine the capacity of the G-5 PDP, especially Wike, do so politically at their peril, as Rivers State, like Kano and Lagos, was critical to winning any election.
The NNPP presidential candidate said members of the integrity group led by Wike were good people who would continue to do the right thing and would be judged by posterity on what they did.
For his part, the works commissioner, Dr. Dakorinima Alabo George-Kelly, said that the internal roads of Mgbuitanwo were 39,300 square meters; has a thickness of 200 millimeters, with a binder course of 50 millimeters, a wearing course of 50 millimeters equipped with public lighting and drains.
Regional Manager, South South of Julius Berger Nigeria Plc, Jergen Fitcher said they have continued to provide standard infrastructure in support of Wike State’s development policy.

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India’s fiscal consolidation trend intact; To See Strong Revenues, Debt Stabilization: Moody’s https://onepayday.com/indias-fiscal-consolidation-trend-intact-to-see-strong-revenues-debt-stabilization-moodys/ Tue, 22 Nov 2022 13:00:27 +0000 https://onepayday.com/indias-fiscal-consolidation-trend-intact-to-see-strong-revenues-debt-stabilization-moodys/ Moody’s Investors Service said on Tuesday that the trend of gradual fiscal consolidation remains intact for India and that going forward, the country will see strong performance on revenue and debt stabilization. Moody’s Investors Service said on Tuesday that the trend of gradual fiscal consolidation remains intact for India and that going forward, the country […]]]>

Moody’s Investors Service said on Tuesday that the trend of gradual fiscal consolidation remains intact for India and that going forward, the country will see strong performance on revenue and debt stabilization.

Moody’s Investors Service said on Tuesday that the trend of gradual fiscal consolidation remains intact for India and that going forward, the country will see strong performance on revenue and debt stabilization.

Moody’s senior vice president Christian de Guzman said India’s “Baa3” sovereign rating balances its relatively high economic growth strength against the weakness of one of the most indebted emerging market sovereigns. The health of the country’s financial system is reflected in the deleveraging of Indian companies.

“We expect India to be the fastest growing G20 economy next year… (but) high inflation poses a downside risk to India’s growth as households and businesses have less buying power,” Guzman said during a virtual Moody’s ‘Sovereign Deep Dive’ event.

Moody’s had earlier this month cut India’s growth projection for 2022 to 7% from 7.7% forecast earlier. He expects growth to slow to 4.8% in 2023 and then to around 6.4% in 2024. India’s economy grew by 8.5% in 2021.

It predicted that GDP growth for the G20 economies would slow to 1.3% in 2023, significantly lower than its previous estimate of 2.1%.

Guzman said further improvement in the fiscal situation and a faster-than-expected pace of fiscal consolidation leading to substantial debt reduction would result in positive pressure on India’s rating.

Moody’s had raised India’s sovereign rating outlook to “stable” from “negative” in October 2021, while affirming the “Baa3” rating – which is the lowest investment grade, just one notch below. above unwanted status.

“We have seen over the past couple of years that there is some strength in revenue…Revenue performance has been relatively strong. We believe the trend of gradual fiscal consolidation remains intact…It will be a stabilization of the debt… We don’t see the debt coming down significantly,” Guzman said.

India’s debt ratio is expected to reach 84% of its GDP by the end of 2022, higher than many emerging economies.

India’s budget deficit, the gap between expenditure and revenue, is expected to fall to 6.4% in the current fiscal year ending March 2023 from 6.71% in the fiscal year 2021-22.

The government has set a consolidation target under which it aims to achieve a budget deficit level below 4.5% by 2025-26.

When asked if a weaker rupee would put a strain on India, Guzman said the majority of India’s debt was in local currency and foreign currency debt was on a near-concessional basis from multilateral or bilateral development partners and was therefore on relatively generous terms.

“We do not believe that the depreciation of the rupee will lead to a significant deterioration in the government’s ability to service foreign currency debts,” Guzman said.

(Edited by : Anouchka Sharma)

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Is consolidation on the cards for Air India https://onepayday.com/is-consolidation-on-the-cards-for-air-india/ Fri, 18 Nov 2022 08:42:50 +0000 https://onepayday.com/is-consolidation-on-the-cards-for-air-india/ Is Air India preparing for an overhaul and possible consolidation under Tata? Will all existing brands like Vistara (TATA: SIA JV), Air Asia, Air India Express and Air India operate as a single entity? Although there is no official confirmation, snippets of news from Air India have led to strong speculation in the market regarding […]]]>

Is Air India preparing for an overhaul and possible consolidation under Tata? Will all existing brands like Vistara (TATA: SIA JV), Air Asia, Air India Express and Air India operate as a single entity?

Although there is no official confirmation, snippets of news from Air India have led to strong speculation in the market regarding a unified Air India brand under the Tata Group rather than separate entities with separate various participations of the Tata group.

Tata owns four airline brands – Air India and another full-service carrier Vistara, as well as low-cost carriers Air India Express and AirAsia India. Earlier this month, Air India announced that it was buying the local AirAsia business and merging it with Air India Express into a single low-cost carrier. This consolidation will likely take place by the end of 2023.

This has spurred market speculation that Tata Group is considering a plan to integrate its four airline brands under Air India.

An October 13 exchange filing said the talks “aim to deepen the existing partnership between SIA and Tata, and could include a potential integration of Vistara and Air India.”

Market buzz is also ripe with speculation that Air India is preparing to order up to 300 narrow-body jets, a deal that would be one of the biggest orders in commercial aviation history. Air India Chief Executive Campbell Wilson said last month the airline would triple its fleet of 113 planes over five years, with a “significant” increase in narrowbody and widebody planes.

Air India is also in talks to raise at least $1 billion in a funding round that could value the carrier at around $5 billion, other people familiar with the matter said in late September. The airline plans to add 25 Airbus SEs and five Boeing Co. planes from lessors from December.

Tata was selected as the winning bidder for Air India in October last year after beating rival suitors with a $2.4 billion bid. The deal marked the country’s highest-profile privatization under Prime Minister Narendra Modi, ending decades of attempts to offload the loss-making and indebted carrier that has survived thanks to years of taxpayer bailouts.


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Refinance an existing credit with debt consolidation https://onepayday.com/refinance-an-existing-credit-with-debt-consolidation/ Thu, 17 Nov 2022 01:00:31 +0000 https://onepayday.com/refinance-an-existing-credit-with-debt-consolidation/ Sponsored content Loan problems? You can refinance an existing credit with debt consolidation Credit cards represent a large part of our daily financial transactions. The ability to spend now and pay later is something that comes in handy most often. Whether it’s daily dinners, weekend getaways, or any […]]]>

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Loan problems? You can refinance an existing credit with debt consolidation


Credit cards represent a large part of our daily financial transactions. The ability to spend now and pay later is something that comes in handy most often. Whether it’s daily dinners, weekend getaways, or any ambitious need, we rely heavily on credit cards.

A significant 26.5% increase in transaction volume, value and average ticket size has been observed over the past year. And with the big announcement of credit card-enabled UPI payments, our reliance on these debt instruments will become inevitable.

Likewise, personal loans have been recognized as a trump card in planned or unplanned events. Along with enticing offers, brands and lenders have raised the bar by offering seamless onboarding journeys, end-to-end digital processes, and instant access to credit in minutes.

While debt instruments give you the freedom to spend money you haven’t yet earned, you need to be very careful not to abuse it. They are a blessing as long as you make timely payments and maintain them prudently. A little misunderstanding and you could find yourself in a debt trap situation.

Comfort from spiraling debt

As part of a prudent financial plan, you need to make sure you don’t have multiple debts at once. If you have multiple debts or credits that are spiraling out of control, debt consolidation is your solution.

Debt consolidation is a financial tactic that helps consolidate multiple loans and unpaid credit card bills into a single personal loan. Just be aware of its existing loan foreclosure policies. Using a single personal loan to pay off all dues has a plethora of advantages.

It is rather easy to repay a loan compared to several debts. This reduces the hassle of dealing with multiple lenders and due dates falling on different parts of the monthly calendar. Failure to pay can result in heavy penalties.

Low-Rate Loan Solution

We are well aware of the interest rates that credit cards attract. Not to mention the number of other costs involved. Debt consolidation helps convert all existing debt from 36-45% interest rate to a personal loan at 15-18% interest rate. Wiping out all high-interest debt with just one loan can help save quite a bit of money.

Since servicing a single loan will become a breeze, one due date, one lender to attend, and one EMI to repay, your risk of default will be reduced. Making payments on time definitely improves your credit score. Also, the lower the debts, the better the opinion of your credit profile.

Holding on to debts that you cannot afford can put you in a difficult financial situation. Although debt consolidation can be a temporary relief, it is not a permanent solution to financial problems. Be sure not to use debt securities as an extension of your paycheck and especially not to be enticed by enticing offers and rewards. Always monitor your spending habits and plan your borrowings to maintain your financial health at all times.

Data source – Reserve Bank of India (RBI) data

Learn more about LoanTap here.

The Federal assumes no editorial responsibility for this content.

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Guide to Consolidation Strategy in Acquisitions https://onepayday.com/guide-to-consolidation-strategy-in-acquisitions/ Tue, 15 Nov 2022 19:30:00 +0000 https://onepayday.com/guide-to-consolidation-strategy-in-acquisitions/ Opinions expressed by Entrepreneur the contributors are theirs. The research fund model is a method of invest which allows entrepreneurs to take a unique path to business ownership. It is structured to help researchers (entrepreneurs who engage in the research fund model) acquire, operate and scale an existing business instead of building one from scratch. […]]]>

Opinions expressed by Entrepreneur the contributors are theirs.

The research fund model is a method of invest which allows entrepreneurs to take a unique path to business ownership. It is structured to help researchers (entrepreneurs who engage in the research fund model) acquire, operate and scale an existing business instead of building one from scratch.

By providing a quick path to business ownershipand CEO status, research funds have created a new breed of entrepreneurs – those who embrace the notion of plug-and-play.

A critical factor in the research fund equation is the economic benefit researchers might see for their efforts. Historically, this has meant a 32.6% internal rate of return and a multiple of 5.5x on the invested capital.

Related: How to Find Success at Research Fund Launches

Value creation

With competition brewing in the form of fellow researchers and even some traditional private equity funds showing interest in acquiring small businesses, how do researchers get their edge? They envision combining two or more businesses with synergies in terms of size, geographic coverage, key personnel, or supply chain advantages – in other words, a consolidation.

Programmatic Mergers and Acquisitions (MY), according to McKinsey“remains the least risky approach with the smallest performance gap and the largest share of companies that generate positive excess total shareholder returns (65%)” compared to large one-time deals, selective deals, or organic growth.

What does this mean for researchers competing at the smaller end of the corporate spectrum? This represents an opportunity to bring the tailwinds of M&A-based growth further downstream and into sectors it has not yet touched.

However, in a survey of 185 Entrepreneurship by Acquisition (ETA) companies bought by Harvard Business School graduates over the past decade, only 8% have implemented a consolidation strategy of buying multiple companies in the same vertical.

Challenges

The timing and structure of research acquisitions is often limited to two years. Additionally, researchers are often freshly minted MBAs with limited operational and M&A execution experience, making adding an additional business target to acquire a daunting task. However, the advantages far outweigh the possible disadvantages.

Related: Research funds: what you need to know about this investment model

Advantages

As this business strategy is inherently an operational game, key considerations when seeking a second (or more) target could include additional financial and operational synergies in the form of:

  • Improvements in capital structure thanks to the larger combined size of companies
    • Ability to incur additional debt at a lower rate
  • Reduction of capital intensity
    • Shared fixed assets, working capital and capital expenditures
  • Margin expansion through higher purchasing power and unit economics
  • Multiple arbitrage valuation
    • In the same vein as “greater than the sum of its parts”, businesses when combined often have a higher value than if they were to stand alone.

Related: Data Security and M&A Downside Risk

Choose an industry

With that, what can researchers do to further reduce the risks of research consolidation? The answer to this lies in a refined thesis. Researchers with professional experience in a specific industry (i.e. health care) have an inherent advantage in initiating research with a targeted thesis.

Finding an industry to engage in can be difficult for those with multiple passions. However, the following markers could indicate the correct fit:

  • Fragmented industrial landscape (i.e. medical, dental and veterinary practices)
    • Industries in which business owners primarily operate a single entity or location
  • Mature and standardized industrial operations
    • Companies that have relied on proven practices over the years
  • A large number of companies
    • Many companies serve a similar customer profile but in different geographies
  • A large number of companies included in the target enterprise value of the fund
    • Understanding the average value of a company in a target industry can help filter out opportunities that are too small or too big
  • Historically stable growth and sustainable profit margins
    • Businesses that have operated profitably for many years and serve customers who have (if B2B-based)

Choose a company

Zooming into a deeper layer, businesses characteristic of success in the research consolidation model touch a combination of the following:

  • Industry Competitive Advantage
    • intellectual property, proprietary software, etc.
  • Seller motivated to go out
    • retirement, change of succession plan, career transition, etc.
  • Historically stable recurring revenue
  • Strategic areas for growth
    • geographic expansion, marketing strategy, recruitment of key personnel, etc.
  • Alignment with the financial mandate of the research fund
  • Viable exit vision over a five to seven year horizon

Eight percent is a small but growing fraction of the ETA community that has chosen to go the consolidation route. As more seasoned traders and mid-career researchers get involved, the chances of a consolidation strategy becoming more mainstream will only grow. This next wave of research fund entrepreneurs could bring revolutionary methods in creative funding, operation and business growth – a win-win for budding entrepreneurs and seasoned operators alike!

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How to choose the best debt consolidation lender? https://onepayday.com/how-to-choose-the-best-debt-consolidation-lender/ Mon, 14 Nov 2022 22:41:15 +0000 https://onepayday.com/how-to-choose-the-best-debt-consolidation-lender/ The Good Brigade/Getty Images Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster. If you are considering debt consolidationYou should start by deciding which […]]]>

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Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster.

If you are considering debt consolidationYou should start by deciding which method is best and evaluating your financial and credit health to determine if you are a good candidate for debt consolidation. Once you’ve taken these steps, you can move on to researching and evaluating lenders to find the best solution to help you pay off those crippling debt balances sooner.

Identify the type of debt consolidation that suits you best

The first step is to evaluate debt consolidation options and select the method that is best for you. Common methods include:

  • Personal loan: Many lenders offer debt consolidation loans or personal loans designed to help you pay off your debts faster and save a lot of interest. Debt consolidation loans usually come with a fixed interest rate and a loan term of 1 to 10 years. You are free to use the funds as you see fit, but the idea is to pay off your debt balance with the loan proceeds.
  • Zero APR credit card: Also known as balance transfer credit cards, these debt products can help you save a significant amount in interest and eliminate high-interest debt balances faster. They are generally reserved for consumers with a good or excellent credit rating. You should only consider this option if you can repay the balances you transfer to the card during the introductory period. Otherwise, you could end up paying a fortune in interest.
  • Home Equity Loan: You can convert up to 85% of your home equity into cash and use it to consolidate your debt with a home equity loan. It acts like a second mortgage and comes with a repayment period of between five and 30 years. The interest rate is also fixed and lower than most credit cards, but the main drawback is that your home guarantees these loan products. Therefore, you could lose your property to foreclosure if you fall behind on loan repayments.
  • Home Equity Line of Credit (HELOC): A HELOC is a home equity loan, but you will not receive the loan proceeds in a lump sum. Instead, you’ll have access to a pool of money that you can draw on as needed during the 10-year draw period. Interest-only payments are also required during the drawdown period on most HELOCs. Once completed, you will repay in monthly installments over a term of up to 20 years. The amount of the monthly payment can fluctuate since the interest rate on HELOCs is generally variable.

It’s important to select the best option for your needs, as this will help determine the type of lender you choose. Not all lenders offer the same borrowing options. Once you’ve decided on a consolidation option, you can analyze each lender’s interest rates, loan terms, and fees to determine which offers make the most financial sense for your goals.

Determine your qualifications

Lenders want to know that you are creditworthy and have the means to make timely payments on the loan or credit card you are using to consolidate your debt. This means you can expect the lender to assess your credit score and credit history to determine if you have a history of responsible bill paying.

Lenders will also look at your debt-to-equity ratio to determine if you can afford monthly repayments and if you’re not taking on more than you can handle. Lenders also want to see verifiable proof of income and will be looking for long-term financial stability.

Also, be aware that the most competitive interest rates are generally reserved for borrowers with a good or excellent credit rating. A lower credit score doesn’t always mean you’ll automatically be denied a loan or credit card. Still, you will usually get a high interest rate if approved to offset the risk of default posed to the lender or creditor.

Ultimately, you may find that it doesn’t make sense to consolidate your debt if you have bad credit if you only qualify for a higher rate than you’re currently paying.

Shop around for lenders

Look for lenders that offer the type of debt consolidation you are looking for. Most offer online prequalification with a flexible credit application. If you’re considering a debt consolidation loan, you’ll also get an overview of potential loan costs to compare your options with.

In addition to checking online lenders when shopping, it may be a good idea to check the options available from banks or credit unions. You may qualify for more favorable loan terms if you have a pre-existing relationship with a bank or lender.

Regardless of the type of lenders you include on your shortlist, prequalification takes the guesswork out of finding lenders willing to work with you. Plus, you’ll avoid going to lenders who might deny you a loan or credit card and get an unnecessary credit check.

Assess the lender

Once you have a shortlist of at least three lenders, it is a good idea to compare them side by side and compare the factors below, which will impact the overall cost of your loan, your ability manage it and the customer service you receive:

  • Annual Percentage Rates (APR): This figure represents the actual annual cost of borrowing. It includes interest and fees determined by your credit score and debt-to-equity ratio. Knowing this information for each loan option can help you assess which one will cost the least.
  • Lender fees: Some lenders charge origination fees ranging from 1-10% of the loan amount. Even if the APR is on the lower end, high origination fees might make a different loan product the more practical choice. Similar to APR rates, knowing each lender’s fees can help you determine which loan is more expensive or best suited for you.
  • Characteristics of the lender: Top lenders also have an online dashboard where you can monitor your account, schedule payments, and chat with customer service representatives. It’s also great if free educational resources can help you manage your credit and overall financial health more effectively. Understanding the features and customer service offerings of each lender gives you a better idea of ​​which loan will be easier to manage.
  • Customer reviews: You want to select a reputable lender with a proven track record of providing quality service. Checking online reviews from past clients can be a good way to gain peace of mind before signing on the dotted line with a lender. Seeking accreditation from the Better Business Bureau (BBB) ​​may also be a good idea.

At the end of the line

Before applying for a loan or credit card to consolidate your debt, weigh your options to decide which type of debt consolidation makes the most sense. Plus, get prequalified with at least three lenders to see potential loan quotes and compare your options. This will allow you to make an informed decision, reach your debt repayment goals faster, and save money.

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Chambley talks consolidation at GVACC event – Valley Times-News https://onepayday.com/chambley-talks-consolidation-at-gvacc-event-valley-times-news/ Fri, 11 Nov 2022 14:06:03 +0000 https://onepayday.com/chambley-talks-consolidation-at-gvacc-event-valley-times-news/ Chambley talks consolidation at GVACC event Posted at 9:00 a.m. on Friday, November 11, 2022 School District Superintendent Casey Chambley spoke at the Chambers County School District’s first luncheon since the pandemic hosted by the Greater Valley Area Chamber of Commerce. As the keynote speaker, Chambley discussed the county’s high school consolidation and answered questions […]]]>

Chambley talks consolidation at GVACC event

Posted at 9:00 a.m. on Friday, November 11, 2022

School District Superintendent Casey Chambley spoke at the Chambers County School District’s first luncheon since the pandemic hosted by the Greater Valley Area Chamber of Commerce. As the keynote speaker, Chambley discussed the county’s high school consolidation and answered questions about next steps.

This comes after the school board decided to build the new combined school building that will serve Valley and LaFayette High students in Valley.

According to Chambley, the school board hopes to move into the new building by the 2025-2026 school year. During his speech, he said the school board had hired an Atlanta-based architectural firm called Cooper Carry to advance the building’s schematics.

“They got an order to do some site surveys and looking at different things on the site,” Chambley said. “So they are advancing, that the schematics should now be finished in December. We should be moving forward with other design aspects in January-February.

The school district and Cooper Carry will is hosting an open house on November 17 at the Valley Community Center. The purpose of the meeting is to get community feedback on details such as the school’s new colors, mascot, name, and architectural design. Tables will be set up and citizens will bring a passport to each table to give their opinion.

Chambley said the event will be an opportunity to get to know your community.

The superintendent added that many citizens have asked why there won’t be a similar event in LaFayette.

According to Chambley, the school board needed to find a neutral building that could accommodate everyone, and there was no place in LaFayette that could accommodate them.

“One of the reasons is that if we combine, we have to get to where we stop having separate meetings,” Chambley said at the event. “We didn’t want to do it in any of our high school gymnasiums. We thought there would be too much emotional connection there to hold this event at these facilities.

Chambley said he met with bond agents on Tuesday to secure financing. According to Chambley, when he met the bond agents last year, he could have borrowed $70 million with a debt payment of $2.5 million. Now, as interest rates rise, the payment on the $70 million will be $5 million.

“I tried to get our council to borrow the money last year to move forward and secure the funds,” Chambley said. “I could have borrowed $70 million last year, put the $70 million in the bank, had it in CDs or other interest-earning things and made money to pay the interest even though we weren’t using the money.”

In response to a question from attendees, Chambley said that from now on, the first schematic designs will have the new building at 170,000-190,000 square feet. This means that the building will have a capacity of around 1200 students, depending on what happened with career technology.

“We expect some growth because there is some growth in Chambers County if you look at the census. It’s just growth in some areas,” Chambley said. “We think there’s going to be growth, but it’s developing more on the valley side.”

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More consolidation, fewer new units to come https://onepayday.com/more-consolidation-fewer-new-units-to-come/ Mon, 07 Nov 2022 20:38:03 +0000 https://onepayday.com/more-consolidation-fewer-new-units-to-come/ We are deep enough in the pandemic to see consumer habits more clearly. The initial weight of inflation has been absorbed and its implications are better understood. Labor shortages and supply chain issues running through the economy are revealing their impact. We’re far enough into 2022 to begin to get an idea of ​​how […]]]>

We are deep enough in the pandemic to see consumer habits more clearly. The initial weight of inflation has been absorbed and its implications are better understood. Labor shortages and supply chain issues running through the economy are revealing their impact.

We’re far enough into 2022 to begin to get an idea of ​​how franchise development is being affected, based in part on our recent compilation of unit activity across thousands of brands. Understanding how all of these negative economic influences affect the franchise will help us better understand the development of the franchise in 2023. Of course, we must also take into account the likely next wave that is about to crash in the form of a recession. (and/or the most recent Covid variants).

The basis of franchise development is consumer behavior trends. However, Covid has forced noticeable shifts in consumer preferences, the permanence of which is becoming increasingly clear. The pandemic has changed not only how and where consumers shop, but also what they buy, why they bought it, what influenced their purchase decision, and how they adjusted their long-term comfort with these changes in traditional consumption activities.

Across the franchise, we are seeing business models adapt to changing customer bases. Figuring out which parts of the customer experience can be automated with greater impact on fast delivery and turnaround time, as well as which customer interactions are better handled with a human touch, is an ongoing challenge for brands that affects almost all sectors. The impact on retail brands is obvious, but even in personal services, technology is increasingly integrated into their delivery. This has been a silver lining for many brands struggling with labor issues, as consumers today are much more willing to embrace technology integration than they were before. the pandemic.

Effects on franchise development

How does all of this affect the development of the franchise? Potential franchisees are also consumers and have their own ideas and concerns. Based on some of our franchisee survey work, we’ve heard that many want to know that models have adjusted and are asking how brands are staying ahead of these accelerated changes in consumer behavior. One consequence is that new brands have an advantage in how they present themselves to prospects. A challenge for many mature brands is to show off a new look with existing units projecting a pre-pandemic look.

As we are reminded, inflation is very disruptive. We have spent the last twelve years in a constant cost cutting mode because price flexibility was almost non-existent. Now the world we live in is the exact opposite. Supply chain disruptions, low unemployment, rising interest rates, etc. have increased the cost of doing business. While consumers psychologically accept rising prices for almost everything, value judgments are more influential now, affecting which brands can actually hold higher prices.

Two important keys to being able to raise prices are maintaining quality expectations and delivering reliability. Without raising prices, can brands demonstrate to potential franchisees that their units have the ability to absorb rising costs while still showing good unit economics? They better be able to because prospects will want to see proof.

Consolidation on the rise

Another consequence of the pandemic and now inflationary pressures is an increase in unit consolidation. Consolidation of franchise units generally accelerates when economic uncertainty increases. We saw it in 2008-2010, and we are seeing it now. Covid, changing consumer preferences, labor shortages, supply chain issues, inflation and now possibly a recession are pushing single unit and multiple unit operators less efficient to look for exits to a much greater extent.

To avoid the negative consequences of closed units and bankrupt franchisees, history shows us that the consolidation trend is accelerating further as franchisors strive to address underperforming units facing stronger headwinds. , which often means that the large multi-unit operators buy the units of the small operators. We see this happening now.

This has important implications as multi-unit operators represent the main source of new unit expansion. However, during periods of consolidation, multi-unit operators invest significantly more in existing unit transactions, reducing their appetite (and capacity) for new unit growth.

The money factor

Funding will likely be another bottleneck that will slow down both the flow of new units and the flow of transfer transactions. Many of our lending clients tell us that they insist on unit economics to even consider loans. The underwriting teams are factoring in a 2% increase in loan interest charges for business plans.

Finally, the belief that a recession is imminent has permeated business decisions, including those of franchise candidates. At this point, whether or not it happens is less important than the people who believe it will. History shows that in the early stages of a recession, franchise development declines. In the latter phase of a recession, when layoffs have become a concern for many, franchise development becomes a major driver of recovery.

The shadows of the pandemic and inflation, combined with the anticipation of a recession, will slow down development activity in the second half of the year and, as history shows, probably well into 2023 as well.

Our advice to franchisors? To be successful over the next 24 months, focus on specific operational activities that will allow you to demonstrate compelling transparency in key attributes tailored in different ways to two key audiences: potential franchisees (candidates and multi -units) and lenders.

Darrell Johnson is CEO of FRANdata, an independent research firm providing information and analysis for the franchise industry since 1989. He can be reached at 703-740-4700 or djohnson@frandata.com.

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