What Is Portfolio Acquisition?

Portfolio purchases involve the buying of lease contract packages and the remaining payments or discounted cash flows associated with them. It is regarded as a financial term which denotes the collection of investments done by any business organization or an individual.

Portfolio acquisition is done by many companies. Risk tolerance, Investment objectives and time frame are the factors on which the portfolio is designed. The economic value of each factor influences either the risk or reward ratio of the portfolio. It is referred to as the allocation of factors or assets.

The work of the companies is to make the portfolio in such a way that it maximizes your profiles and minimizes those assets which poses risks to it. They choose the most preferred ones by considering the risks and returns in the trade-off.

Many types of portfolios are available. Two of those are market portfolio and zero- investment portfolio. Depending on the purpose for which the portfolio is prepared, the type is chosen.Asset allocation is managed by different principles and investment approaches such as capitalization-weighting, equal weighting, risk parity, the capital asset pricing model, price-weighting or arbitrage pricing theory. Jeysen index, sharpe index and the treynor index are among the other factors.

Portfolio acquisition helps in growth of the company or individual. Detailed planning should be done before making one. It should help in:

• Increasing capitals
• Managing balance sheet concentrations
• Managing capital ratios.

However it should always be kept in mind that the company for the acquisition should be chosen wisely. They should be successful in ensuring that the measures taken to build up the profile show maximum profit.

To know more about portfolio acquisition log on to Atlanticus Holdings Corporation.

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Debit Card Vs Credit Card: Risks And Benefits

Plastic money is the new way of having cash with you without actually having it.With easy cancellation facilities in case of theft these ensure that your money remains safely in your account while you transact with ease.

Does one score over the other on certain counts? The risks and benefits associated with using both are discussed below:

• Using a credit card means taking a small amount of loan from the bank and promising to repay the amount, usually within a month.

• Using debit cards mean using the cash already available in your current account without the concern of having to pay the lender back.

• Debit cards can be used to withdraw money from ATM machines as well. A PIN number is provided which might be required to be punched in sometimes while shopping.

• Debit cards do not require any picture ID before issuance unlike one for credit cards. Thus chances of fraud are high in the former.

• For a credit line, in case you do not pay the bills on time the lending company charges high interest on the balance amount. This is the greatest benefit with a debit card as you do not have to pay any interest on the money since it is all coming out of your existing funds.

• The legal liabilities are strict in case of credit facilities. The consumer liability is $50 for fraud cards if notified within 60 days in written.

• If you report the fraud in a timely manner then you are protected from the unauthorized purchases. The debit card owners may not always have this facility since many of these are contactless, meaning you wouldn’t need your pin if the purchase is below a certain amount.

While the balance may tilt in favour of debit cards some would still favour a credit line for making purchases. Therefore at the end of the day it remains a matter of personal choice.

To know more about financial schemes and services logon to
http://www.atlanticus.com

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5 Financial Emergencies to Have a Credit Card For

Your credit card can truly act as Providence and savior to cope up with financial emergencies although it should not be a source that you rely upon solely for such critical situations. The good angel may have often pestered you to save for your rainy days but coping with financial emergencies means having quite a handsome amount as emergency fund which takes time to accumulate. However, emergencies can crop up anytime- you might have lost your job or compelled to be homebound because of a mishap and to wade over the financial crises which arise in these situations a credit card can act as a handy tool.

Medical Emergency: Medical emergencies are something you cannot afford to procrastinate just because you do not have sufficient funds. Yet, a surgery or hospitalization can drain your financial resources completely whereby, using a card can be a more flexible alternative which gives you the opportunity to make the payments at the instance.

Utility Bills: When emergencies crop up between paychecks and you are left with no money to pay for your electricity, gas, water or phone bills a card can be used for the same and avoid hassles of interrupted supply of such crucial services.

Mortgage or Rent: Your mortgage or rent money is not a small amount and there may be instances where all your finances get exhausted meeting other needs. However, paying the rentals or mortgage amount on-time is important to stave off from your landlord’s persistent phone calls or to keep your mortgage account clear of any defaults. A credit card can come of immense help to pay off the amount which you can repay at your convenience later.

School and Tuition Costs: As a parent not being able to pay your child’s schooling cost is surely the last thing you would want to happen. Yet, if such emergency arises where you are running out of cash at the moment, make the best use of the card in your pocket to provide your little ones the right they deserve.

Business: Finally, any costs related to your business or work such as repairing your car or the house you use for rental purposes can be met by using the credit card and making payments on time.

For consumer loans and cards at the most affordable rates of interests, look nowhere beyond Atlanticus for a customer service experience par excellence.

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5 Myths And Facts About Credit Scores

You might have conveniently overlooked the three-digit number that rules over your wallet, but the indubitable fact remains that your credit score plays a crucial role in your life deciding a number of things- the amount you pay for mortgage or car loan, the interest rates and so on. The score depicts your credit-worthiness or your capability to pay back loans responsibly and without faltering and hence, knowing some facts about this score is imperative to stave off from blemishing it unknowingly.

Myth 1: Credit Score is the only determinant of whether one gets credit

Fact: While credit score is truly something which credit lenders look into while approving loans, it is but only one of the determinants. There are several other things which are taken into consideration as well such as the amount of existing debts, the amount of additional debt that you can manage comfortably with your income as well as the particular underwriting policies of the organization.

Myth 2: Dealing with Cash-Only purchases will help get a good score

Fact: A good credit score is a reflector of your credit history which in turn looks into how you make responsible use of the credit that is available to you. If you choose to make only cash purchases and do not apply for credit anytime you would not have any credit history and your score will be comparatively lower than one who has credit and yet shows a record of consistent and regular on-time payments.

Myth 3: Too many cards affect your score negatively

Fact: Contrary to what it was believed previously credit connoisseurs now state that having a number of cards is an indication of your credit handling capacity which you have done satisfactorily and responsibly for which so many lenders could entrust you with cards after reviewing your past payment records.

Myth 4: Credit Bureaus are always right when determining scores

Fact: A study by the U.S. Public Interest Research Groups almost 8 out 10 credit reports issued by Credit Bureau possess some serious mistakes which can affect one’s scores negatively. Hence, it is important to examine reports from time to time and get the errors rectified as soon as possible.

Myth 5: Checking your credit history affects your score

Fact: While multiple queries done on one credit history can be an indication of your inclination to shoulder more debts, FICO also considers that some consumers may simply be researching for the best rates available in the market and hence approaching various lenders who will consequently carry out checks individually. If all the check requests have been done within a two-week time frame it will not affect your score negatively as it would be seen as a single inquiry.

Looking for a credit offering or a consumer loan? Atlanticus can prove to be your reliable partner in proffering easy credit with affordable rates of interest even with a bad credit history. 

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Things to Know about Portfolio Acquisition

Portfolio acquisition refers to the procedure of buying a group of lease contracts and related discounted payments and cash flow by a company seeking to make new investments. Such acquisition requires in-depth planning and analysis that can be only done through meticulous knowledge of the financial products and devoting considerable efforts and time. Without such strategy buyers may end up looking into every deal and ultimately not emerging successful in any, in spite of speculative bidding. Here are some of the things that every buyer ought to know about such acquisitions and how to make a strategy that culminates into a successful one.

One of the first things to take note of while undergoing acquisitions is a research and review of past deals that have taken place in the financial market, thereby making a shortlist of potential competitive areas.

Next, look into a large and flexible area of target acquirers and make a list of the prospective ones based on the particular geographic preference, processor and technology platforms they use along with credit quality features which fit the acquisition in question in the best possible way. Take a closer look into your customer or client base and understand what they are reliant on most. If the dependence is largely on cards, think of ways to curtail that by proffering better financing options. Once these things are settled, it is essential to set a time-table for introducing the strategy and updating it with latest inputs, while taking a note of the referral sources and the valuation techniques to be used.

If you are on the lookout for portfolio acquisition services, trust on Atlanticus to do the job for you. Harnessed with an experience of over 75 years the company has bought, converted as well as serviced 6.8 billion receivables and more than 7.8 million accounts covering a broad spectrum of financial services like auto loans, consumer loans, credit cards and many more.

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3 Hidden Truths behind Zero Percent Auto Financing

So the zero percent auto financing deal offered by your local car dealer has grabbed your attention and as a buyer on the lookout for a new car it seems a luring bargain indeed. Zero percent financing is one of the most enticing motivators used by automotive dealers and car companies to lure potential buyers and ramp up sales. However, before you get influenced by such advertisements, it is imperative to know the hidden truths behind zero percent financing. For, what might appear to you as an attractive deal may, in reality, mean shelling out more than other alternative financing options.

Short-term Payback: In most cases zero percent financing come with short- month. For those who run their expenses on monthly budget pushing it up to such extent as to accommodate extensive installments might seem difficult. In such cases it is better to look for longer-term schemes where monthly installments will be lower.

Hidden Costs: Although you might be quite happy opting for a zero percent finance, you may be charged overtly on certain other heads such as application fees and extended warranties by your dealer. In the long run you might just find out that you ended up paying more than the other payment options like a cash-back offer which although comes with a higher interest, would have helped you save greater amounts.

Zero Percent Financing Criteria: Finally, even before you hit the showroom excited to buy your dream car, check out whether the car model is under the zero percent finance scheme. You may just wander in to find that the car you contemplated to purchase is under a completely different finance scheme which requires you to shell out a whopping amount in terms of financing charges. It is also worth taking a look at your credit score as zero percent financing is often limited to only those customers with a good credit standing.

To get the best deal out of your auto finance at lowest interest rates, Atlanticus can help you get the car of your dreams.

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Myths and Facts Related To Retail Financing

Currently, retail financing is the best way to ensure that retail businesses grow and flourish. But before you invest or receive retail financing services, here are some myths and facts you should know-

Myth- Retail financing isn’t profitable
Fact- Retail financing offers growth

It is erroneously believed that retail financing doesn’t offer financial growths or profits. But the fact is that this kind of financing enables retailers and investors to take a ‘second look’ in various industries. Consequently, credits are given to retailers through which they can grow their businesses, make changes in their current strategies and receive profits. The process has positive consequences for investors as they can get better investment returns with incremental sales in retail sector.

Myth- Retail financing doesn’t increase wage positions.
Fact- Retail financing increases wage positions

Retail sector has been often associated with minimum wage positions. Therefore, it is widely believed that even with retail finance, individuals will not witness an increase in wage positions. But the truth is that retail finance can increase wage positions by increasing overall profits. With financing, retailers can grow their businesses through incremental sales, which ultimately increase the value of retailed products and results in maximum wage positions.

Whether you wish to invest in retail sector or seek investments, make sure you choose a reliable financial company.

Atlanticus Financial Holding Company offers credit card lending, investments, automotive acquisition, retail financing, loan and portfolio acquisition and other services through its investors and subsidiaries. For more information, visit http://www.atlanticus.com

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