With the Fed’s coffer shrinking faster than ever, President Barack Obama has now made it clear that the cash advances that he is offering to corporate America will not be for free. In his recent speech at the Georgetown University, while he defended his economic policies on one hand, on the other hand, he warned people of tough choices ahead. Providing a justification for his moves, he said that each policy “is driven by a larger vision of America’s future, a future where sustained economic growth creates good jobs and rising incomes; a future where prosperity is fueled not by excessive debt, reckless speculation, and fleeing profit, but is instead built by skilled, productive workers.”

Job losses and foreclosures ahead

President Obama’s clear message for corporate America was that the careless usage of the bailout money will not be tolerated any more. Pointing at more job losses and foreclosures in the wake of a major restructuring in the U.S. auto industry and troubled insurance giant, American International Group, Obama talked about implementation of “difficult and unpopular choices.” He also said that hard times are not over yet. As per him, “2009 will continue to be a difficult year for America’s economy. The severity of this recession will cause more job losses, more foreclosures, and more pain before it ends.”

Banks are to be saved

Though a lot of discussion is going on at present about the results of the official ‘stress test’ that was carried on 19 giant banks of the U.S., Obama seems to have a soft corner for the banks. But then, that’s not without any reason. As per his Georgetown University speech, “Of course, there are some who argue that the government should stand back and simply let these banks fail – especially since in many cases it was their bad decisions that helped create the crisis in the first place. (But) The truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth.”

Is it for banks?

Definitely, Mr. President understands the value of a sound banking system, but the question in everyone’s mind at the moment is whether he will commit further cash advances to those banks that will fail the stress test? Well, the answer may be ‘No’, but if he does, then soon we will get to see lot more restructuring and job cuts.

Time for America to come forward

Many will agree that extra-ordinary time requires extra-ordinary governance. Similarly, President Obama’s tough stand can actually be the bitter pill that can cure the economy. But then, he alone cannot do it, the whole of America has to come forward for the cause. And it is more applicable for corporate America, which is getting the bailouts. Companies like AIG should have understood by this time that the billions of dollars that they have got is taxpayers’ money and they have no right to waste it. That’s why President Obama is now all set to make them understand the facts by his tough stand. But even then he needs corporate America and for that matter the whole of America to come forward to make his cash advances work.

A mega cash advance is something that the car dealers need desperately today; it does not matter whether the government offers it or someone else! While all the discussions are focused on the big two carmakers’ bailout plea, the worsening financial conditions of the neighborhood car dealers, mainly those who deal with single brands, are getting overlooked. With the car industry suffering a major fall in demand, the car dealers are deep in trouble, failing even to recover their fixed costs. And the result, more and more car dealers are forced to down their shutters with every passing day.

Severity of the situation

According to figures available at the National Automobile Dealers Association, as many as 1000 car dealers have closed their operations during 2008 forcing over 50,000 Americans out of work. And the reason is quite obvious; they are facing falling sales on a continuous basis for a very long time now. In 2008 alone, sales figures for many brands dropped by as much as 40%. Even worse for the dealers, these figures are expected to plunge further and reach the lowest in the last 35 years. As a result, playing it safe for the future, car dealers are giving up dealership as a profession.

The real cause

The car dealers are actually facing a double blow at the moment including problems in the non-functioning credit system. First, 94% of the car-buyers get their purchase financed. As there is a dearth of car financing, it becomes difficult for most people to buy a car. Most don’t have enough money out of their own pockets, unless they get a cash advance from some source. The second problem for the dealers is the fact that ‘floorplan’ financing is drying up very fast. Even dealers with good credit rating are finding it really hard to get a loan. Dealers generally need around $5 million of inventory financing, and absence of it has hit them really hard, especially to small dealers like Bob.

Story of Bob Cockerham

Bob Cockerham is a small dealer, who shared his story with the Senate Committee on Small Business and Entrepreneurship on March 19. As per Bob, “Despite the fact that we have never been late on a payment and have stellar credit, our inventory financing lender simply said that they could no longer provide us a loan to cover our entire inventory.” He also added, “Without these loans, my business is done.” And that’s the story of most of the car dealers today.

A quick solution is needed

Currently, the bereaved dealers are in urgent need of cash advances to survive the current crisis. And this actually means they need a system to be worked out immediately so that the dealers at least get access to floorplan financing. President Obama saying that the government is standing at the back as the guarantor for those who buy cars is definitely a welcome one. But, that alone will not help the situation to improve. He must have to “immediately revitalize the asset-backed securities market for wholesale and retail auto loans and expand the Small Business Administration Loan Guaranty Program to provide floorplanning and working capital for auto dealers,” as urged by the trade associations representing 20,000 U.S. franchised auto dealerships. If President Obama does not work out a quick plan to give some cash advances to these neighborhood car dealers, then soon he will find more dealers closing shop creating additional unemployment.

Although I don’t like to be in debt, a payday loan is a perfect opportunity to quickly get some cash when you need it urgently. I know many people who didn’t like to take any kind of loans, but when they get into an unexpected financial situation, this loan was their only help.

I was in such a situation. I got a new job, and wanted to leave a great impression on my colleagues on the first day at work. So I bought a suit, a really expensive one. But when I got home, I got not so pleasantly surprised. The stove broke down, and after a couple of hours, the heater did too. I didn’t know what to do. I accepted the fact that I had to take a loan, and the fast payday loans seemed to be the best choice for me.

How to get it?

I really couldn’t believe it was so easy. I only needed to confirm that I was 18 or older, that I had a bank account, and, of course, that I had a job. No faxing, no waiting, no checking of my credit history; it was all over in about hours and the money was in my bank account. You don’t have to have an excellent credit history to get a loan, so everyone can apply. You can even get it online, and all that is left is to go to the bank and withdraw your money. When I went to work the next day, I returned home and made the dinner for my wife and me, and later I watched a show on T.V. It felt great not having to think about the problems I had solved so quickly.

Don’t fool yourself

But don’t think that this is your way of getting some extra cash every month. You have to be very responsible when taking any kind of loan and this is not an exception. This is probably the best way of getting a little extra cash when you really, really need it. But if you take out a payday loan every month, you will be just spinning around. Don’t take a loan to pay off a loan!

But…

Instead, control yourself and your spending. Don’t buy stuff you don’t really need. These loans are meant to be used only in extreme situations, when you have to pay for something right now. Be responsible with payday loans. These loans of $100 to $1,500 can make all the difference, if you use them correctly.

And don’t forget that you had a loan. Some forget that they have to pay a loan, so they are unpleasantly surprised when the payment day comes. Adjust your budget to pay it off on your next payday.

And also, SAVE!

When you take a Payday loan, it is important to keep in mind that you now have a payment to make, and that the money you bring home on your next paycheck will not be as high as usual. So, it is important to do some saving. I tried not to eat in restaurants, but prepared my own food. I held off buying any clothes that I didn’t need and if I absolutely needed something, I didn’t buy brand names, and bought on sale instead. It is very important to plan your expenses until and after the loan is paid off.

Installment loans can help you jump start your dream of having your own business at home. A home business is a great way to add income to your household and to be your own boss. And, if you have been recently laid off, a home business may be the way you can support your family.

By operating your own business, you will get to enjoy the independence and freedom to make your own business decisions and working from home gives you the flexibility of time. And yes, it is possible to have a profitable home business. It will not be easy but with perseverance and hard work you will be able achieve it.

What am I good at?

You do not have to reinvent the wheel! Look at your own skills and what you are good at. Kathy used to work as a Graphic Design Artist and she’s very good at her work. After getting married and having two kids, Kathy has decided to be a stay-at-home mom. But with the economic difficulties, she has decided to start her own business.

She invested in a good computer by taking out an installment loan and started contacting people she knows who may need her skills. After a year or so, she has established a good number of clients and started to make profit. Home business is the best way of turning your talents into profits.

Is my home the right place?

Another important consideration is your home’s suitability as a place of business. Some of the advantages of working at home are – no transportation costs in getting to work, less overhead and no office rental fee. These advantages should be weighed against having the operations of the business inside your own home. By being aware of these concerns, you will be able to avoid unforeseen problems and expenses in the future.

Creating a business plan

Once you have decided on what business to venture into, create your business plan. Write down your projected starting costs and your projected income and costs for the next two to five years. You cannot expect to earn profit probably in the first year or so. So you need to make sure that your family’s finances can weather this period. Changes will have to be made in terms of your family’s lifestyle until your business gets established.

Set to go

Now that everything is in order and you have covered all your bases, what you need now is capital. If in looking at your finances, you realize that you do not have enough, installment loans would be the best option. You may use this money to start buying your important office equipment or materials for the product that you will be selling.

The great thing about installment loans is that they’re quick and convenient. The amount of your loan will, of course, depend on your need and how much you can pay given the period of your loan. So check your business plan, determine how much money you need for your loan and get started. A home business is one workable solution to the less profitable laborious life of stress.