Tag : factoring

Commercial Finance #commercial #mortgage, #business #loans, #property #development #funding, #retail #finance, #bridging

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Commercial Finance | Whiterosefinance.com

Property, Business Purchase & Buy 2 Let Investments. Up to 75% of Property / Business value. Specialists in Pub, Hotels, Offices, Manufacturing & Retail Premises. Special deals for sitting tenants.

Funding for residential and commercial new build and refurbishment projects. Up to 100% of the total funding requirement can be provided in many cases – call us today funding still available .

POS Retail Finance, Loans for Leasehold Business Purchase, Loans for shop equipment, Cash Advances against Debit and Credit Card Transactions.

Low Cost Home-Mover ‘GAP’ Bridging Finance from just 6.5% p/a. Non-status and investor loans from just 0.75 % per month flat rate. Quick to organise we can have funds to you in days.

Flexible, tax efficient and low deposit solutions to aquire any business asset / machinery or vehicle. Sale and Leaseback of existing owned assets to 80% of market value.

Poor cashflow, late payers. Affordable Factoring Invoice Discounting can significantly assist cash in to your business and reduce / redirect overdraft facilities. New start business welcome.

Innovative and Cost Effective financial solutions.

Throughout the major changes experienced in the UK financial markets over recent years we continue to deliver innovative funding solutions for our clients.

Providing the skills and expertise to ensure a positive lending decision is our core strength and we achieve a very impressive success rate for our clients.

Even if your own Bank has refused to support there is every chance we can offer a solution.

We work at a senior level with over 200 UK based alternative lenders across a broad range of Products and Services.

Contrary to popular belief, funding is still available for well supported and professionally presented cases.

Interest rates and terms can be very competitve with fast decisions and decisive action to get the required funds to you in the fastest possible time.

We will quickly assess your funding requirement and can very often be in a position to offer indicative terms the same day.

Working with us will greatly improve the chances of your funding requirement being approved.If it can be funded we will secure the finance for you – guaranteed.

Please get in touch and allow us to demonstrate what service and choice really mean.Contact our team today for free confidential advice, without obligation.

Quick enquiry

Call us today

Telephone White Rose Finance on 0845 838 1954.

White Rose Finance Group Ltd, No 1, Abbey Court, Benedict Drive, Selby, YO8 8RY
Tel. 0845 838 1954 | Fax 01757 700 963

Commercial Finance | Whiterosefinance.com

White Rose Finance Group are Credit Brokers, Authorised and Regulated by the Financial Conduct Authority (FCA). Reference Number – 630772

PLEASE MAKE BORROWING DECISIONS CAREFULLY, YOUR HOME OR PROPERTY MAY BE AT RISK
IF YOU CANNOT KEEP UP AGREED REPAYMENTS ON ANY LOAN OR MORTGAGE SECURED ON THAT PROPERTY.



Invoice Factoring Forum #aldermore,applications #for #payment,construction #factoring,invoice #factoring,invoice #factoring #companies,invoice #discounting,invoice #finance,permanent

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Favell Recruitment are a family owned business started by brother and sister Oliver and Alicia Favell. They are a recruitment company based in South Yorkshire that specialise in the construction sector.

The business started trading in 2014 and to finance it’s rapid growth they entered into an invoice finance facility with Aldermore Bank Plc. They set this up on a the Aldermore ABC product which is a fixed price facility and they had an overall credit facility of £50,000. Sadly, the facility did not generate the required working capital but when they looked to terminate the agreement Aldermore levied early termination fees.

The facility had run satisfactorily but they soon outgrew the facility. In order to double the facility limit to £100,000 Aldermore doubled their fee structure to £900 per month plus an additional 0.65% of turnover for bad debt protection. The facility was also restrictive as there was a 50% concentration limit on the facility and their top customer could represent more than 50% of their sales ledger. This put pressure in Favell’s cash flow as the facility was not generating the required cash.

Favell Recruitment felt that the facility was both restrictive and expensive. As a result Oliver looked to source a better structured facility. A facility was sourced from another lender that provided an increased facility limit, increased prepayment, increased concentration limit, full funding limits on all their debtors and also provided considerable savings.

Lender Aldermore New Lender
Facility Limit £100,000 £200,000
Prepayment 85% 90%
Concentration Limit 50% 100%
Service Fee £900 flat fee 1%
Bad debt protection 0.65% of gross turnover Included in service fee
Discounting Fee Included in flat fee 2.5% over bank base rate

In terms of costs, if we analyse the fees paid by Favell to Aldermore in December we can see that despite borrowing just over £7,000 at the end of December having notified just £23,164 of invoices the fees for the month were £1,230.16. Of this, £900 was fixed cost service fee which represents 3.88% of turnover and this did not include the bad debt protection.
If the new lenders facility had been in place the costs would have been circa £450. This is a reduction of over 60% in costs. Due to the inflexible fixed fee arrangement and the low turnover in December due to the slowdown in the construction industry this may be somewhat skewed. However, the service fee element would have been just £231 compared to £900 and the additional bad debt protection.

If we assume a turnover of £700,000 and average borrowing of £75,000 the Aldermore facility would cost £16,260 versus the new facility of £10,650. Again a considerable saving of 35%.

Favell Recruitment approached Aldermore to advise that they wanted to leave. Sadly, despite the facility being restrictive and expensive Aldermore advised that there would be a termination fee.
Aldermore are members of the Asset Based Finance Association (ABFA) and on Aldermore’s own website they state that “as members of ABFA we take these commitments seriously and are dedicated to ensuring they are RESPECTED at all times.”

If you look at the ABFA Code of Conduct and more specifically the ‘Guidance to the ABFA Code’ it states:

“3.2.3 Where a client requests termination of a facility without the required or any period of notice, even though Members may not have any legal obligation to agree, they are encouraged to give reasonable consideration to such request, particularly where continuation of the facility may cause hardship to the client.”

There is obviously no legal requirement for Aldermore or any other ABFA member to allow a client to terminate a contract early. However, given that Aldermore could not fully fund Favell’s largest customer due to concentration restrictions, it could be interpreted that “continuation of the facility may cause hardship to the client” given that it was restricting profitable trading and growth with their largest customer.

Due to the restrictions on the facility and also what Oliver considered to be excessive fees, Favell Recruitment felt they had no option but to pay the termination fee to Aldermore to exit the facility.
Oliver Favell commented, “This is not a good way to do business especially after it appears they were overcharging us. We were paying a lot of money for a restrictive facility with a £100,000 limit and now we are paying considerably less for a £200,000 facility. All in all I would not recomend Aldermore to anyone ”

With a better structured and more cost effective working capital facility we wish Favell Recruitment continued growth and success.



Best Transportation Factoring for Trucking and Freight Brokers #transportation #factoring, #truck #factoring,

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Trucking, Transportation, and Freight Factoring

Today’s busy trucking world keeps rolling through transportation factoring, the process of selling freight bills to a specialized trucking factoring company in exchange for upfront payment. Freight bill factoring works very smoothly for the freight delivery business model and factoring companies for trucking have proliferated over the last decade.

Freight factoring services through transportation factoring companies can help you spend more time keeping your trucks on the road and less time waiting for your invoices to be paid. Timing is critical in the freight industry, whether you’re waiting at a loading dock for a shipment or waiting for a payment from a customer. The freight invoice factoring specialists at Interstate Capital, one of North America’s most trusted leaders in transportation factoring, understand the importance of timing in your operations. They work hard to ensure that you get paid within hours of pick-up and delivery, without waiting weeks and months to be paid on your invoices.

When you factor your customers’ invoices with a strong truck factoring company, you get paid upfront. You can use that cash for fuel, payroll, maintenance, insurance, taxes, and even new equipment. Freight bill factoring with Interstate Capital can be one of the most sensible financial decisions you will ever make as a motor carrier or freight broker. When you work with a specialist in truck factoring, you gain a partner dedicated to your success today and your company’s growth in the future.

Factoring for Motor Carriers

When you are looking for a top truck factoring company, you can trust Interstate Capital to stand out among transportation factoring companies. Thousands of motor carriers, whether they owned one truck or a fleet, have depended on Interstate Capital since 1993 for funding solutions and benefits that are specifically tailored to freight factoring.

With your own dedicated account manager who specializes in truck factoring and with our easy-to-use 24/7 customer website and mobile app designed for transport factoring, you can receive up to 100% cash advances when you load and payment on delivery. As an extra bonus, Interstate Capital gives you and your drivers one of the best discount fuel cards in the freight factoring company industry, with savings of up to $0.10 per gallon, as well as the ability for us to create and send your invoices.

Benefits for Motor Carriers

  • Fast payment
  • Low factoring rates
  • Interstate Capital fuel discount card
  • Funding from copies
  • Fuel advances
  • After-hours fuel credit
  • Money transfers at no cost to you
  • Registration on FreeFreightSearch.com
  • 24/7 online access
  • Account manager as your single point of contact

How does it work?

Take the next step toward positive cash flow and call us today for all your trucking factoring needs. We’ve been helping motor carriers increase their cash flow for over 20 years and we are ready to help your company enjoy the benefits of this debt-free cash flow solution.

Get an Instant Factoring Rate Quote

Factoring for Freight Brokers

For nearly 25 years, freight brokers of all types and sizes from across North America have chosen Interstate Capital as their freight factoring company because we know how to make truck factoring easy and convenient. As a leading factoring company for trucking, Interstate Capital can pay your carriers directly, freeing up your time to find freight and grow your company.

Not only will your carriers get paid on time, but you can also offer them fuel discount cards for fuel advances and quick pay. Not all truck factoring companies offer the time-saving back-office services provided by Interstate Capital, services like invoice preparation and sending and in-house credit and collections departments. Let Interstate Capital help you focus on what you do best: keeping your carriers loaded and on the road by using our transportation factoring services.

Benefits of Interstate’s Freight Broker funding solutions

  • Fuel advances to your motor carriers with our funds
  • Quick pay for your motor carriers with our funds
  • Carrier payments sent via ACH, wire check, or Comcheck
  • 24/7 online access to images and reporting
  • Credit inquiries 24/7
  • Letters of guaranty to motor carriers
  • No application fee
  • Low factoring rates
  • Collection specialists
  • Your own account manager as a single point of contact
  • Unlimited access to post loads and search for trucks

How does it work?

Freight Factoring: A Winning Cash Flow Solution

Freight bill factoring continues to grow in popularity throughout today’s trucking industry because this kind of no-debt financing represents an excellent fit for the typical freight company’s business model. Freight companies of all sizes, ages, and financial stages factor their freight bills to have the cash in hand they need to pay bills and grow their business. In the fast-paced trucking world, speed is critical and many trucking professionals find that factoring is the fastest way to get paid for delivered loads. Turning the funds stuck in their accounts receivable into immediate working capital is a powerful business tool for thousands of transportation companies whether they are startups or long-established businesses.

When you are pressed for time with significant financial needs, Interstate Capital can get you onboarded as a new client within a day or two after you complete your paperwork. Freight factoring with Interstate Capital can be one of the most sensible financial decisions you will ever make as a motor carrier or freight broker. Now is the time to partner with a trucking factoring company dedicated to your success and increased profits.

Get an Instant Factoring Rate Quote

We highly recommend Interstate Capital to anyone that it’s either starting a small company or if you are a large company. When we started our company, Interstate Capital was helpful in every way in getting us started. We have been with them for several years now and have never had issues with them, they are always easy to get a hold of them and are always there if you have questions and are they are always willing to listen. We get our settlements quickly. We give a Thumbs up to Interstate Capital.

Interstate Capital is great a must just starting out or small business

I’m a owner/operator of a hotshot. I struggled for the first 6 months I was in business with out them. I wish I would have used them earlier, it made my job and my life a lot easier. Everybody there was really helpful. Would recommend them to anybody.

Jacob B.
Freight Broker

I was a skeptic when it came to working with a factoring company. Working in the industry for the last 20+ years, everyone has heard the horror stories. So when it came time to grow and find a strategic partner, we chose Interstate Capital Corp. We had several conversations and meetings with JR. He took the time to understand not only how we conduct our business but helped us evaluate our customer’s aging and credit terms before we became a client. JR offered multiple solutions for our needs. In fact, it forced us to look at our accounting procedures and we found a solution that helped increase our profitability and minimize expenses. Their entire team is friendly and knowledgeable. Signing up was extremely easy, and ICC appointed the perfect representative for our account. I am impressed with their technology, ease of doing business and all the additional free perks they offer.

This is a great company

I have never had any problems when it comes to interstate capital corporation. They are always friendly and helpful. They have gone over and beyond to help resolve issues as they arise. I would highly recommend them to anyone who is looking for a great reliable factoring company.

Heather T.
Interstate Capital Client

The staff at ICC is superb. You couldn’t ask for a more friendly staff. Any requests made are handled promptly and with the utmost care. They will do what they can to help out with a wide array of issues and if one person doesn’t know there are others who are quick to speak up with ideas. They are right there next to you during your trial and tribulations and will share in your successes as well. This company definitely has the factoring business figured out and shows tremendous staying power.

Go above and beyond

As a flatbed woman owner operator I find my own freight ,drive ,deal with brokers etc. I don’t have the time to sit at home and wait for the checks do. paperwork everything that goes with it. As all knows wheels aren’t rolling no money is being made.It’s so much easier to just deal with interstate I have worked with Nancy right from the get go and I will continue.I have worked with other factoring companies but this is by far the best. Grass just isn’t greener on the other side .Been steady solid company .I have found out that they will go above and beyond to help keep you going.



Accounts Receivable Financing #factoring #recievables


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Crestmark’s Accounts Receivable Financing

Accounts receivable financing (A/R financing), sometimes known as a ledgered line of credit or invoice financing, is a great solution for businesses that need more funding that is not available from traditional lenders. Many companies need additional cash flow to support seasonal demands, growth, business opportunities, or solve a short-term cash need. Accounts receivable financing provides your business with flexible and immediate cash that will give your business the opportunity to grow, restructure, take advantage of supplier discounts, hire additional employees, or even to fund payroll. With our accounts receivable financing options, you can access cash without having to give up equity in your company, and it is less restrictive and expensive than equity financing. A/R financing can increase or decrease based on your current business size and needs, allows you to gain administrative support to manage your receivables without additional staff, and gives you access to cash when you request it (based on your eligible accounts receivable).

How Accounts Receivable Financing Works

After you invoice your customer for goods or services completed you provide Crestmark with a copy of the invoice and supporting documentation. Crestmark may then advance up to 90% of the eligible invoice to you, often within 24 hours. Our professional and efficient invoice management team follows up to help ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release the remaining 10% to you, less an administrative fee. And, with our timely detailed web-based reporting, you can check to see who has paid and who has not 24/7.

This accounts receivable financing process will free up valuable time and allow you to what you do best, service your customers and generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company and reduces interest expense. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.

And, because this form of financing allows you to access more cash as your business grows, or less if you need less, you can ask us to either ramp up, or scale back as you deem best for your business.

Accounts Receivable Financing Highlights

Primary Transaction Size

Start-ups to $7.5 Million

Customer credit reviews for new and existing customers
Invoice processing
Collection services (in some cases)
Customized management reports

Accounts Receivable Financing Benefits

Are flexible, can increase as your business grows, and can decrease when you choose
Make it easy to transition back to conventional banking
Make paying off loans and making payroll worry-free
Allow you to meet seasonal demands
Give you the opportunity to reinvest in business and fund marketing to grow your business
Receivables management allows you to focus on your core business
Allows you to take advantage of volume or early payment purchase discounts

Crestmark’s A/R Benefits

Competitive pricing
Fast response time including:
Proposal turnaround within one day
Closing in as early as 7-10 days
Cash for invoices within 24 hours

Is A/R Financing The Right Solution For Your Business?

Your business is unique with working capital needs all its own. Our professional, experienced Business Development Officers will work with you to understand what accounts receivable financing solution best fits your business and cash flow needs, and a team of financing specialists will create a working capital solution specialized for you.

Get Started.



Polynomial Operations Lesson by MATHguide #basic #factoring


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When adding polynomials, like terms must be combined. For instance, 3c and 5c can be added to get 8c. Likewise, 3x 2 y and -7x 2 y can be added to get -4x 2 y. However, 5x 3 y and 10x 2 y 5 cannot be added together because they do not have the same exact variables and the exact powers on those variables.

Let those examples guide us regarding the following problem.

The best way to handle this is to perform the task vertically, instead of horizontally, while aligning like terms.

With this arrangement of polynomials, it’s easier to determine which terms to combine together.

Consequently, here is the solution.

On this next example, care has to be taken.

The reason for care is due to the first polynomial. It is missing an x-squared term and an x-term. This is why place-holder terms must be included.

The vertical placement below emphasizes the correct alignment of like terms to be added.

Consequently, the solution is.

When subtracting numbers, it is possible to change the problem to addition. Here is a case in point.

This problem can be changed to an addition problem. All we have to do is switch the subtraction to addition and then change the second number to its opposite, like this.

When problems are converted into addition, they are usually done more successfully. The answer is -9, which is harder to obtain as a subtraction problem. When dealing with polynomial subtraction, we can do the exact same process. Here is an example of a subtraction problem with polynomials.

We can also change this problem to addition. Change the subtraction to addition and then switch the last polynomial to its opposite. Our new example would then be�

Notice how the second polynomial changed. The -6 changed to 6. The 7 changed to -7 and the 4 changed to -4. Now, the problem is a polynomial addition problem, which is best accomplished vertically.

The answer can be gained by adding like terms. The like terms are those that have the same variables and powers on those variables. This vertical form makes it easier to find and add those like terms.

Combining those highlighted like terms gives us the following solution.

Here is another problem, but this one is in vertical form.

We still have to change this problem to addition. We first have to realize it means we are subtracting the bottom polynomial from the top polynomial. So, we have to take the opposite of the second (the bottom) polynomial. This would give us this addition problem.

Notice that the last polynomial, the bottom polynomial, was changed to its opposite. Now, we simply add like terms and the like terms have already been aligned.

After we add like terms, we will get this solution.

The best way to multiply polynomials is to do so using a visual organizer. We used a visual organizer in grammar school, called a multiplication table. That is exactly what needs to be used for polynomial multiplication. For example, we will multiply these binomials. [A binomial is a polynomial that has two-terms, bi �nomial.]

To do this, we will place the first polynomial on the top of our table and the second on the side of our table. [Some people use the method called �FOIL� instead. However, �FOIL� only works for binomials and is useless for other types of polynomial multiplication problems.]

Now, we will multiply a column times a row. We will multiply �x� times �x� and get x 2 and then place that in the table.

Likewise, we will multiply �x� times �-5� to get -5x. We will put that in the table.

For our last column, we will begin by multiplying “3” times “x.” The result is this.

The last item of the table is gained by multiplying “-5” times “3.”

This leaves us with the following table of elements.

This process has left us with four terms inside the table.

There are two elements within the table that are like terms and they need to be combined together. These are the two like terms.

If we write out these four elements horizontally, we get this polynomial.

We need to combine the inner-most terms, which are the like terms. After adding the “3x” and the “-5x,” we get this solution.

For our next example, we will look at a much more difficult problem. We will multiply a binomial times a trinomial.

Again, we will place these polynomials on the outside of a table. Place the first along the top and the second along the side.

Now, we will begin the process of multiplying columns times rows to gain elements inside the table. Let’s start with “x 2 ” times “x” to get “x 3 .”

Multiply “x” times “4x” to get “4x 2 .”

Multiply “x” times “-7” to get “-7x.”

Multiply “2” times “x 2 ” to get “2x 2 .”

Multiply “2” times “4x” to get “8x.”

Multiply “2” times “-7” to get the final element in the table, which is “-14.”

Alright. We have a completed table! We are almost done.

Notice there are six elements within our table. These elements will be used to gain our solution.

The six elements will be simplified to produce the solution. Notice, however, there are like terms that need to be combined. These like terms have like powers and have been color-coded below.

Taking the elements of the table out and writing them horizontally, we get this unsimplified polynomial. Like terms have been color-coded.

We will combine the like terms by adding “2” with “4” and then adding “8” with “-7.” This is the solution.

Dividing Polynomials: Synthetic Division

This video will explain how to divide polynomials using a special technique, called synthetic division.

Try our quizmaster to see if you understand how to divide polynomials by synthetic division.



Another investment to avoid like the plague – CBS News #factoring #company

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Another investment to avoid like the plague

Flickr user Tracy O

(MoneyWatch) As director of research for BAM Advisor Services — an alliance of about 130 like-minded Registered Investment Advisor firms — I’m asked to evaluate a never-ending stream of products from investment firms. Virtually all of these investments effectively amount to schemes to transfer assets from investors to purveyors.

The latest “investment opportunity” I was asked to review came from a hedge fund. The firm was creating a vehicle that would basically be a “factoring ” operation.

In a typical factoring arrangement, a business makes a sale and generates an account receivable. The so-called factor buys the right to collect on that invoice by agreeing to pay the seller the invoice’s face value, less a fee. Because factors extend credit not to their clients but rather to their clients’ customers, they’re concerned about the credit risk of the business that must pay off the account receivable. That means a company with creditworthy customers may be able to finance itself by factoring, even if it can’t qualify for a loan because of its poor credit rating.

The investment I evaluated was in the form of an interest in a limited partnership in a receivables fund, with the receivables being generated from factoring. What is important to understand is that factoring isn’t a high-return business. Yet the confidential memorandum I reviewed showed a 10 percent return target for the investment, a target that which would be achieved after subtracting the fund’s fees, which were 2 percent of assets and 20 percent of the profits. The memorandum also noted that principal protection was hedge fund’s top priority.

The notes in the memorandum indicated that the receivables fund would purchase assets, with the debtor typically being a Fortune 500 company. The fund would then earn a fee of 1-3 percent in return for accepting the credit risk. The cycle would be 30-45 days. A 1 percent fee with a 30-45 day cycle would be the equivalent of borrowing costs of about 8 percent to 12 percent.

That’s a problem. The reason is that a small company selling to investment-grade customers typically won’t factor their receivables. Instead, they’ll get a line of credit from a bank, secured by the receivables, at a lower cost. In other words, the proposed 1-3 percent fees are too steep, at least for that type of credit quality.

Here’s another thought. Given today’s interest rates, I doubt that any of the Fortune 500 firms have borrowing costs anywhere near 8 percent to 12 percent. Which means the firm selling the receivable could instead finance itself cheaper by simply offering their client better terms to pay off the account receivable earlier. For the investment-grade credit, that would be a great use of their capital. And that’s using just a 1 percent fee. Fees that are any higher make the proposition even more dubious. Are we to believe that the companies selling their receivables haven’t thought of this idea?

The bottom line is that it doesn’t seem likely that the limited partner could generate the quality of loans they described. The factoring business simply doesn’t generate those kinds of returns with that quality of account receivables.

Perhaps the returns would be achieved by using leverage. If that’s the case, then the LP doesn’t deserve a 2/20 fee, as the investors are taking the risks of leverage. The investors can simply leverage themselves at much lower costs. Why pay 2/20 just for leverage? The other possibility is that the LP will be taking on more credit risk.

The most basic tenet of finance centers on the relationship between risk and expected return. Only a fool would fall for the idea that one could expect a 10 percent return, while also having principal protection as the main objective. You can’t mix credit risk and/or leverage with principal protection being the main objective. And if the returns are to be achieved by taking credit risk, there’s a big problem.

Of the three executives listed at the hedge fund, two were sales and marketing people, and the third had a grand total of six years of credit experience. That’s a rookie in that field. You need very strong credit skills to be in the factoring business, which is typically done by buying receivables from weaker credits. CIT Group (CIT ), a major factoring firm, is in that business, and investors don’t have to pay 2/20 to invest in the company. (And an investment in CIT has not been a particularly good one, either.)

Unfortunately, we’re not done. The memorandum also noted that in addition to the 10 percent expected return, investors would benefit from owning a non-correlating asset. If the credits aren’t investment grade, then the correlation of the returns will increase to high levels.

One of Swedroe’s laws of prudent investing is that if something offers a high yield, there’s risk there, even if you can’t identify the risk. Issuers simply don’t offer you such attractive propositions. If such propositions actually existed, they would keep them to themselves, not offer them to you.

Photo courtesy of Flickr user Tracy O

2012 CBS Interactive Inc. All Rights Reserved.

Larry Swedroe is director of research for The BAM Alliance. He has authored or co-authored 13 books, including his most recent, Think, Act, and Invest Like Warren Buffett. His opinions and comments expressed on this site are his own and may not accurately reflect those of the firm.