Tata completes Quippo Merger Deal

The latest announcement that took place in January 2009 of merger of two companies: Quippo Telecom Infrastructure, QTIL and Tata Teleservices was materialised and completed on 18th august, Tuesday. The merger was done complying with the similar terms making no change in the structure of the deal, except Quippo announcing to pay Rs 33 crore less i.e. 2,367 crore INR (It had agreed to pay Rs 2400 crore in earlier announcement). Quippo will soon be transferring all their towers to Wireless Tata Telecom Infrastructure (WTTI) which is Tata’s tower company and in exchange will receive 49% stake as well as management control of the entity getting merged. Tatas will thus hold a 51% stake. To complete the transaction, board of two companies: Quippo and WTTI held a meeting in Mumbai.
Read more

NYSE Removes Option Trading Fees

The latest good finance news is the waiver of exchange fees for some of the contracts related to short-term interest rates options to boost up the trade. This has been declared by the Liffe derivatives market of NYSE Euronext and is reported in Bloomberg.Trading options contracts for new customers that is based on Euribor or the rate offered by Euro Interbank for three month (based in turn on London-based exchange) will not be required to pay fees for around next six months or for first million trades done. This was stated by Paul MacGregor, who is the director of Liffe’s fixed income, today in an interview. Apart from this, Options contracts of mid- curve and interest rates options of Short Sterling for three months and also valid to avail this offer according to him.
Read more

Motel finance

Motels can be a great investment if your going to run one yourself however a lot of financial intuitions do not like them and you will be hard pressed anyone who lends above 65% on a motel so to even start looking at this option you will need to either have a lot of cash or equity before applying for motel finance another downfall with motel finance is the interest rate is usually extremely high compared to a general commercial mortgaged interest rates.

There is one well known way around this is by using low doc finance and telling the lender you are buying the place as your residents this way you can get a residential mortgage interest rate however the motel can generally not have any more then 6 units in the building to be eligible for residential finance if you can buy a motel that makes a good income this way you will be laughing as your paying half the costs in interest then your competitors on their finance for your motel because you simply researched instead of jumping in feet first.

You will need to do a lot of research before picking the motel you want like checking out occupancy rates how long it has being profitable and if there is areason that the occupancy rates are a lot higher then last year this could be something is being constructed in town and a lot of workers are staying there this would be a bad choice because as soon as the work is finished so will the occupancy rate of your motel

So in conclusion does lots of research try for a 6-unit motel to get residential finance as opposed to specialized commercial interest rate, which will bring your overheads down dramatically.

Business Finance

Business finance is both hard and risky to get as a lot of business finance is unsecured and you will pay a high interest rate for business finance a lot of business lenders will want to see not only every bit of information you have the business you intending to purchase or start the general rule of thumb to even have you business finance application looked at it has to have 3 years of trading history with tax returns dating back to 2years also you usually can only lend up to 60% of the value of the business.

You Will also need to higher an accountant and solicitor to purchase a business to look over the numbers for you and this can run into thousands even if you do not go through with the purchase so choose your business wisely before considering a business loan. You’ll also have to get a valuation done which can range from $1000-$20,000 depending on the costs of the business however don’t this put you off as a small business valuer may only cost closer to the thousand dollar mark.

Generally you would of looked over all the businesses finance and profit and loss statements before even considering talking to a business lender as there is no point applying for business finance if you do not know what your going to buy, you may have 1 or 2 meetings though just to discuss your options just do not sign anything until your 1005 sure on the business you whish to purchase with the business finance.