National Australia First-Quarter Cash Profit Rises 18% on Business Lending

11:25 PM |

National Australia Bank  Ltd.

National Australia Bank Ltd., the nation´s fourth-largest lender, posted an 18 percent increase in first-quarter profit and said it´s well placed to absorb fallout from government banking reforms and natural disasters. Unaudited cash earnings for the three months ended Dec. 31 rose to A$1.3 billion ($1.3 billion), the Melbourne-based bank said in a statement today. That compares with A$1.1 billion profit reported in the same period a year earlier. Chief Executive Officer Cameron Clyne has stoked earnings by expanding the bank´s business lending, which outpaced rivals in the quarter, after Australia´s regulator rejected his bid for asset manager Axa Asia Pacific Holdings Ltd. The shares rose to the highest in three months after Clyne said he expects to see demand for business lending accelerate this year. "The market´s assessment of the risk associated with NAB will continue to decline each time the bank delivers a sound `business as usual´ outcome, as they have today," said Angus Gluskie, who manages about $350 million at White Funds Management Pty in Sydney. "The continued reduction in bad debts, and limited impact of recent weather events were important issues the market was looking for."

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The upcoming travel-website consolidation

11:21 PM |

RIVALS can quickly become allies if it makes business sense. Last year AXA Private Equity and Permira competed fiercely in takeover battles of two European travel websites. AXA won the upper hand in the bidding war for Go Voyages, a French travel website, while Permira snapped up eDreams, a Barcelona-based travel website that AXA also coveted. Now the two private-equity firms have joined forces in a takeover bid for Opodo, Europe’s biggest travel website.
With their recently formed alliance AXA and Permira are hoping to merge Opodo with Go Voyages and eDreams to create a proper European rival to Orbitz and Expedia, two American firms which are the market leaders. The official deadline for the bids in the auction of Opodo, run by JPMorgan, an investment bank, was January 25th. Apart from the private-equity duo, Carlyle, an American private-equity firm that owns Orizonia, a Spanish tour operator, and Expedia are likely to have submitted bids. In a few days Amadeus, the Spanish travel-technology firm that owns Opodo, is expected to reveal to whom it will sell the website, which was founded by a consortium of European airlines and first launched in 2001 in Germany.
Is consolidation good news for travellers? Generally a higher number of competitors means more choice for consumers, but in the fragmented online-travel business some consolidation is good news for buyers. The market leaders in France (Go Voyages) and Germany (Priceline) capture only a bit more then one-tenth of the online-travel market in their respective countries. Bigger companies have more negotiating power when they haggle over prices with airlines, hotels and insurance companies. “I don’t see a threat to consumers in a little more concentration,” says Christoph Klenner at the European Technology and Travel Services Association in Brussels.
The bigger question for European travel websites is how they can manage their relationship with airlines in the future. In America, the gloves are already off in what is increasingly a stand-off between airlines that want consumers to book directly on their websites and price-comparison websites, which lure consumers with claims that they offer the easiest way to shop around and find the cheapest flights. In December 2010 American Airlines stopped using all of Orbitz’s services as well as Expedia’s service for individual travellers because of a contract dispute. Southwest Airlines only makes its fares available on its website. And Delta Airlines told three smaller sites—CheapOair, OneTravel and BookIt—that their services were no longer required.

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Starting Small Business check out Bridging Finance

11:18 PM |


Starting a business up could be hard, but obtaining a small business loan sure got easier. Getting overwhelmed by bills and costs could easily drive a new business bankrupt, and some funding is usually enough to pull you through. Remember that everything needs to start small, so businesses are no exception. Who knows, in a few years the small business you started could make you a millionaire. Before dreams are realized however, you still need to survive arguably the most difficult part of starting a business; the investment you make at the start.

The choices a person can make will determine their future. If you didn't make your business investment right, then all will go to waste. It is quite a risk to take, but it is something that is necessary for a bright future. Not all is dependent on the choice either. Depending on the choice made, a lot of funding might be required. This is where business loans come into play. Business loans are designed to fund your investment choices, and hopefully push you towards success.

With business loans, the lender will usually keep in touch with the borrower throughout every step of the way. This lasts for the duration of the loan, since the lenders offering business loan packages are usually experienced in that area. Therefore, if they foresee a loss in the near future, they are able to warn you beforehand and discuss your remaining options. Remember that if you become bankrupt, then the lender won't have their loan repaid, and hence will also be at a loss. They are almost forced to steer you towards success, which is a win-win situation for new business starters as they receive both funds and guidance.

Not all investments need to be business related. Some see starting new businesses as a hassle, and prefer a different type of investment. The most commonly seen ones may be homes, and for a good reason too. Not only are the value of property very steady (and highly unlikely to decrease in value), but you can also make an additional profit by putting it up for lease.

There are a range of options open to the owner, and they all have their benefits. Live in the house, lending it to others for extra profit, make it a holiday resort, etc. There is a special type of loan for this, known as bridging finance, and it is quite similar to any other loan. It does have a noticeably higher limit, making this ideal for housing investments. All in all, properties are a relatively safe investment, and they are a good investment at the same time.

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Credit card debt management

11:14 PM |


People are facing credit card debt, but few understand how to use debt consolidation or debt management to solve it. Some people use the excuse that credit card payment credit so quickly that we did not understand most of the concepts behind it. Unfortunately, the concept may have been misinterpreted by some, but the reality is that the concept of credit and borrowing needed to pay the bills only in accordance with the terms agreed upon with your existing creditors for having money - thousands of the year. Now is the time to stop finding excuses to blame others for irresponsible borrowing, and begin to manage credit card debt. The first step is to stop the deterioration of the situation that was not well. You have to get control of your spending habits. Interest is to make your balance grow. Exercise control and learn how to manage credit card debt responsibilities will help you to avoid this in the future. Start using what you have - cash. Avoid buying a boost simply because there is a sale. If you have to use a credit card, and use what you already have the budget to cover daily expenses and the regular use of just less than 70% of available credit you has. However, try to leave the credit card spending to cope with emergencies and a tent, if you have self-discipline to do it.
loan consolidation is a possible solution. April low cards allow you to transfer multiple balances on one card, and the elimination of many of the monthly repayments might encounter. Again, it is not extra money for free. Compare all the options available and the transfer of understanding all the terms and conditions. All else fails, talk to your creditors and negotiate lower interest rates and fees. In fact you can also ask you to extend the loan. There is no guarantee that it will not agree to it, but you should try at least. Of course, if you can achieve this you can reduce your credit card debt and eventually pay off all of us.
other critical key is not to apply for another card every time you reached the limit of the current card. That is asking for trouble. Chances are that, if there are too bad your circumstances you probably would not have approved anyway. In addition to your credit card, before all others try to avoid any additional insurance balance in other areas, such as a loan from family or friends, or creditors. However, if you can afford to pay, and you just increase your debt load. At the end of the day it should focus on the needs rather than luxury spending. You can achieve a life free of tension, manage your money wisely and to remove any outstanding debts, credit card or otherwise. No better time than the present to start!

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