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Engaging a good professional entertainer for your child’s birthday party is almost a sure-fire way of making the party an enjoyable and successful one. But what type of entertainer fits the bill?The most important consideration is the age of your birthday child. If he/she is between 1- 3 years old, you may want to keep things simple. Children of this age are generally unpredictable and there is no cookie-cutter formula on choosing the right entertainer for children of this age. Children of this age tend to have shorter attention spans and varied temperaments.On the other hand, kids aged 9 -12 consider themselves all grown up and usually scoff at what they consider “kiddy” forms of entertainment. But if your kid is between the ages of 4 – 8, then he/she is at an age where they are old enough to understand jokes and enjoy fun-filled interactive games or activities with lots of movement. This makes hiring an entertainer for kids in this age group easier and more worthwhile for all.When it comes to hiring the entertainer, the many people think of hiring a clown. Clowns are bright, colourful and perform weird tricks that make people laugh right? Well, be careful before deciding to hire a clown for your kid. Coulrophobia or fear of clowns is not uncommon in some kids (and even grown-ups). To them the bright colours and weird clown makeup just add up to a really scary experience.We recommend that instead of a clown, there are some other popular choices of entertainers to consider for your kid’s birthday party.MagiciansMagicians, specifically those specializing in children audiences, are common choices as kid’s party entertainers. Good kids’ magicians perform bright and colourful magic such as producing a huge bouquet of flowers from an empty vase or making colourful handkerchiefs appear and disappear in the blink of an eye.Magic is a popular choice of entertainment for children because it gives the children a sense of wonder where they can suspend their disbelief. When a magician makes an object appear, disappear or float in front of their eyes, it lets them believe that such things are possible and that they may one day be able to do such things as well. It inspires creativity and wonder that is only lacking in today’s modern world.Children within the 4 – 8 year range are generally the most appreciative and participative audience. 1 – 3 year olds are too young to really comprehend magic while the 9 – 12 year olds are more interested to find out how a trick is done than enjoy the show. This is not to say that these kids will not enjoy a magic show, but rather the kid’s magician will have to tailor his show accordingly to suit children from these age groups. If you looking for a magician, check his experience and ask how he intends to tailor his show to cater to your young audience.JugglersJugglers are fast becoming a popular entertainment choice at birthday parties. Their sublime juggling skills combined with entertaining routines make them a hit not just with the kids but the whole family.Jugglers who perform at kid’s parties are usually prepared to demonstrate different kinds of juggling skills. They may also juggle with different items such as balls, clubs, rings and more. Their props are usually brightly coloured to give them more visual appeal as there is nothing more eye-catching than seeing a juggler keep 3 or 4 different coloured balls in the air at the same time.Some jugglers also involve the audience in their routines, making the show audience participative and fun for the whole family. It is also not uncommon to see jugglers who combine elements of magic into their show as well.As with magic shows, juggling shows require the audience to appreciate the skill that the performer is exhibiting. Younger children may not fully understand or realise a juggler’s skill while older kids may tend to get bored after a while seeing the same performer attempt to juggle different things. However a good performer will be able to make his/ her routines entertaining enough and engaging enough to suit most kids of different ages.Puppeteers/ VentriloquistsPuppets add an extra dimension of fun to any party. Kids love to see a funny looking puppet animal telling stories and cracking jokes. Puppets also make the entire show look bigger as it appears that there is a cast of performers rather than just one performer doing the show. This is one of the main reasons ventriloquist shows are a hit at parties.The classic image of a ventriloquist is usually of a performer sitting on a stool with a wooden dummy on his or her lap, performing with that character throughout the show. However, many ventriloquists these days perform with brightly coloured foam or latex puppets instead and they usually have more than one puppet character in the show. This adds an element of variety to the show, which is crucial for keeping kids engaged. Some performers also add more interactivity to the show by getting the puppets to interact directly with the kids and crack impromptu jokes with them.A ventriloquism puppet show is versatile enough to entertain almost all kids and even adults. Younger kids will be captivated by brightly coloured talking puppets while older kids will be able to appreciate the jokes and interact with the puppets. A ventriloquism puppet show is something that can be a fun for the whole family.The good news is that these days you don’t just have to settle for one or the other. There are professional birthday party entertainers who provide multi-dimensional performers. So the next time your kid has a party, consider looking for a magician who is also a ventriloquist or a ventriloquist who is also an expert juggler.The choice is yours!

There are so many home based businesses online… Which is the best? How do we qualify?Many people have come up with different judging criteria. People tend to compare the different business models, and everyone says his or her business is the best! The truth is different business models will suit different groups of people. It is virtually impossible to find a business that can satisfy everyone.Most netpreneurs or online marketers are involved in more than one business online, and they will choose one of the businesses and label it as the primary business. However, it is not uncommon to find that the primary business undertaken may not be the main stream of income at all, and doing business online boils down to doing internet marketing for it to be worthwhile.The most vibrant of online businesses would have something to do with internet marketing. Qualified leads, autoresponder system, squeeze pages and traffic generation are all examples of business dealings that have something to do with internet marketing…Anything to do with marketing and web traffic generation will essentially be the most sensible and sought after businesses. It doesn’t, however, mean that businesses selling real products and services that are not related to marketing and traffic generation are not perfect businesses.Health products, games, education, sports etc. are all revenue generating businesses too! So, what is the best business for us? We will never know until we’ve taken the first steps to check things out and literally take the calculated risks to join a business whenever a business opportunity is presented to us.Do we then need to join all the businesses being presented to us? Of course not!Sometimes, the best business for us may not be something we’re familiar with. Usually, we prefer to look for a business that we have a particular interest in. Whatever it may be for you, the key to finding the perfect business is in the reason why we’re looking for a business.For instance, John searches the internet for a home based business so that he can work from home. He doesn’t enjoy his current job and is surfing the internet for a way to earn a full time income away from his boss. Sometimes, the question we need to ask ourselves is this: Are we really looking for another job or are we looking to be our own boss?If you’re looking for another job, then being your own boss may not suit you. When you run a business, your focus is in growing the business, and you need to be disciplined to do only what is necessary, be focused on the big picture and on how to integrate your business processes for growth, and be able to delegate or outsource jobs out to other people in order for yourself to be free from unproductive use of time which is the only irreplaceable resource.When you want a job, you’re looking to use your time to perform a routine task in order to be paid for the time you spend on the task. Well, there are many who have chosen to run a business online, but they are running it as if they were doing a job. It is a common mistake for someone looking to run his/her own online business to end up doing another job. Even for some who are making quite a killing online are killing themselves in the process… So, when someone comes along to enlighten them that they can actually take a break, they may find that quite a difficult thing to do!The job mindset has not been converted to the boss mindset yet. So, beware! Most online businesses can actually become the worst jobs in the world if we start undertaking it as if it were another job. It is such a thin line… The people who are truly enjoying themselves being their own boss are those who understand how to leverage their time and know the difference between a job and a business.Once we know what we’re actually looking for and have the correct mindset in place to run a home based business online, then the next question would be… What are the online businesses available for our taking?Basically, it boils down to SALES. Be it a product or service, we need to SELL it to make money and be in business. Internet Marketing is just part and parcel of this most avoided word… If we are good at marketing over the internet, then we can truly do business online, whatever we SELL. Note, even preselling is a form of selling disguised in the word marketing… In preselling, we prepare the customer to be sold via reviews, “unrelated” topics that will lead the customer to appreciate and see the reason for buying etc.To me, the Best Home Based Business Online must be one that provides us with the essential internet marketing system that most online business seekers need… and this system must be tested to work and be reviewed time and again. It must also be a good income stream with reliable support and a good and solid compensation plan.Well, some time ago, I have found a business that will basically teach anyone how to fish and it meets all the requirements that I’ve personally had in mind. I then joined it right away to see if it is what it claims to be. The point is this: I could have easily chosen to sit and watch the opportunity pass me by… but because I took action, I was able to find out that it’s indeed the perfect business for me.If we don’t check things out and take calculated risks, there’s no way to find out what’s Best for ourselves. To me, it’s a dream business for almost anyone, but I can’t say the same for everyone. Thus, what’s Best is actually subjective and we need to learn to respect the different perspectives held by others and not be pushy about what we view as the Best. When we keep an open mind, we might begin to understand why another person’s Best is something else.So, when someone rejects your offer, never be discouraged. The business is most probably not suitable for him/her. Instead of imposing your views, move on… There are many fishes in the ocean of life =)Let’s look at the Big Picture. If everyone sees the same Best, the world would be quite boring… Don’t you think?With all that said, our BEST today may not stay at the top position tomorrow! It is important to realise that the internet landscape changes very quickly so that we are prepared to adapt to such changes. Cheers!

Personal loans are usually unsecured loans for a small amount of money. They are given for any use. Banks have not always been so happy to give personal loans, though. Personal loans are not profitable because they are short term loans on such a small amount.They are also unsecured which banks tend to try to avoid since it is completely relent upon the individual to get the money paid back. However, more and more lenders are seeing personal loans as being a great way to connect with customers.When searching for a personal loan a person needs to first establish how much money they would like to borrow. Typically a personal loan is for a small amount, such as a couple thousand dollars. They should also consider if there is an alternative way to get the money besides borrowing.This will help a person avoid debt problems should they end up not being able to payback the personal loan. Once they have decided on the amount of the loan and that getting a loan is their best option they should shop around for the best loan.If you are looking to borrow more, say around 20,000 then it might be advisable to use a loans broker. These brokers will have access to a whole range of different lenders and offers.So if you have bad credit or are self employed they will be able to find you a suitable lender. Of course there will be a small fee involved, so it is best to speak to a few brokers and see what they to offer.Personal loans have various terms depending upon the lender. It is very important to get the terms and conditions of the loan before ever applying. Every time a person applies for a loan their credit is checked. Too many credit checks, especially in a short period of time, can bring down a persons credit score. Always narrow down to one or two choices of lenders before applying.One of the best places to look first is a credit union. Credit unions typically are more willing than a bank to extend a personal loan. They are also more willing to offer loans on amounts as small as 500.Using a credit union will help a person to not borrow too much, just what they need. They will also likely get the best interest rates and have a better chance of getting approved for the loan.A personal loan should be used sparingly. It is not wise to use personal loans when you are having debt troubles as this just creates more debt problems. A personal loan is perfect for someone who has an unexpected expense come up or who just needs some extra cash.They are not good to be used to pay regular bills or make payments against a debt. Using a personal loan is this way is a sign you have debt problems. Remember a personal loan is another debt that you will have to repay.As long as a person is smart and shops around they should be able to handle a personal loan and get the money they need fast.

If you have been looking for a new car or truck recently, you may have wondered whether your credit score will cross the lender pass mark. The sad truth is that credit scores have been dropping nationwide, as consumers are facing worsening economy and declining income. Banking crisis did not help much either, making many financial institutions tighten their criteria for new loans and increase the rates on existing ones. This all caused many of us to get behind on bills and loan payments, resulting in poor credit grades. Many people who had credit yesterday are challenged with poor credit situation today.Credit Scores and Auto LoansIn the past years, a credit score of 640 or above would easily qualify you for an auto loan. However, many people who enjoyed near-prime credit rating only a couple of years ago are now struggling in the mid-to-high 500 score range, finding it impossible to qualify for many loans and credit cards. The situation with auto loans is very different, however, favoring bad credit borrowers. As they are considered secured loans since the car you finance serves as collateral, there are less stringent requirements endorsed by banks and other lending institutions.Another important thing is that automakers were on the top list of industries who were hit the worst during the recession, and they are trying to make their way to higher sales. Therefore, they encourage auto lending today by lowering the criteria endorsed by their lending subsidiaries and by issuing incentives to independent lenders. This all resulted in more relaxed requirements for borrowers who are willing to take out an auto loan. That is exactly why today it is easier than ever to qualify for auto loans even with very poor credit scores.Go Online To Get the Best Lender QuotesDo slow auto sales and decreased lending mean that banks are going to approve you and offer the best terms possible? Not exactly. Traditional banks still endorse very conservative approach to application processing, filtering out candidates with past credit problems. The good news is that there are multiple online lenders who offer a more aggressive approach to auto loan underwriting. They are willing to take bad credit risk that traditional banks refuse to take. That is why in order to make your auto loan application a success you should seek all possible sources of financing.Online lending platforms offer a great deal of convenience for auto loan shoppers, as they allow making one application that is disbursed among participating bad credit auto loan companies. Thus, a consumer gets an unparallel advantage of getting attention of multiple auto lenders, ensuring better chances of approval and best possible auto loan terms. For many auto loan applicants it is only a matter of several minutes to get pre-qualified for a loan from online bad credit lenders. If all the supporting documentation is in place, such as recent paystubs and identity verification documents, the entire transaction may be completed the very same day. All you have to do afterwards is to walk into a dealer showroom to pick a car or a truck that appeals to you most, avoiding possible embarrassment, knowing that you have financing in place.

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?