How to open Archives - Klic and Kown https://www.klickown.com/category/how-to-open/ How to open a private financial institution Wed, 10 Jan 2024 14:30:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.0 https://www.klickown.com/wp-content/uploads/2022/07/cropped-logo-32x32.png How to open Archives - Klic and Kown https://www.klickown.com/category/how-to-open/ 32 32 Expert Strategies for Futures Trading Rooms https://www.klickown.com/futures-trading-rooms/ Wed, 06 Dec 2023 12:58:07 +0000 https://www.klickown.com/?p=273 In the vast landscape of futures trading, there is a myriad of trading rooms, nearly 2000 to be precise. However, the catch here is that

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In the vast landscape of futures trading, there is a myriad of trading rooms, nearly 2000 to be precise. However, the catch here is that a staggering 99.6% of these trading rooms don’t engage in actual trading activities. Instead, they focus on selling education, strategies, and various trading programs. In essence, they are vendors rather than active traders, resulting in a lack of performance data or a credible track record to showcase. The question that naturally arises is: why are there so few trading rooms that genuinely trade? The answer lies in the inherent difficulty of achieving success in the world of trading. Selling trading-related products and services, on the other hand, is often perceived as a simpler and more straightforward path.

When it comes to robot programs in the realm of futures trading, there are nearly 4000 such programs listed across platforms like Striker Industries, Cannon Isystems, Futures Truth, and Collective2. These robots often present performance data or track records. However, a crucial caveat is that this data is primarily based on back-testing and hypothetical trades. In other words, these robots have never actually executed trades in real-time market conditions.

  • Target Trading Pro: A Unique Approach. Amidst this landscape, Target Trading Pro emerges as a unique player with distinct advantages. Starting from February 1, 2021, Target Trading Pro stands out as the ONLY trading room that actively trades both an algorithmic robot program and an order flow-based strategy. What sets it apart is the fact that these trades are conducted every day, live, with real money, and are backed by real brokerage statements. This commitment to real-time trading differentiates Target Trading Pro from the multitude of rooms and trading bots that exist solely in the realm of theory;
  • The Algorithmic Robot Program. Unlike other trading rooms that often resort to theoretical scenarios, Target Trading Pro consistently trades its algorithmic robot program in both simulation (sim) and live trading environments. This real-world application of the robot program provides valuable insights into its performance;
  • The Order Flow Strategy. Another distinctive feature is the implementation of an order flow strategy. Traders can witness this strategy in action on a trading DOM (Depth of Market) in real-time, with real cash at stake. It’s a genuine demonstration of how order flow impacts trading decisions.

Daily Live Trading

Target Trading Pro ensures that every trading day is an opportunity for traders to witness live trading activities. A diverse range of futures, including oil, E-mini S&P500, gold, NASDAQ, Dow, silver, bonds, and the Euro (6E), are traded based on prevailing market conditions. This commitment to daily live trading sets Target Trading Pro apart from the plethora of trading rooms that merely claim to be live but lack authenticity.

  • Transparency and Accountability. Transparency is a core principle at Target Trading Pro. Trades are showcased in real-time with entries, targets, stops, and cumulative profit/loss (P/L) visible after each trade. Nothing is concealed, ensuring that traders have a clear view of every aspect of the trading process. The trades are taken right in front of the audience, fostering a sense of community within the trading room;
  • A Trading Community. Target Trading Pro isn’t just about trading; it’s also about fostering a vibrant trading community. Traders come together, share experiences, and learn from one another. It’s not just a room; it’s a supportive network of individuals on a shared trading journey;
  • Disclaimers and Responsible Trading. As traders explore the world of futures trading, it’s vital to heed the disclaimers and recognize the associated risks. Futures and options trading offer substantial rewards but also come with significant potential risks. Traders must be fully aware of these risks and should only trade with funds they can afford to lose. The past performance of trading systems and methodologies doesn’t guarantee future results.

The CFTC (Commodity Futures Trading Commission) Rule 4.41 reminds traders that hypothetical or simulated performance results have limitations. They do not represent actual trading and are often prepared with the benefit of hindsight. Therefore, they should be viewed with caution. Ultimately, Target Trading Pro emphasizes that none of its stated performance should be seen as an endorsement or suggestion to trade. The creator of Target Trading Pro is a trader and educator who aims to provide real-time proof of trading efforts. It’s important to note that these trades are not endorsements or recommendations for others to engage in live trading. Trade conditions and expectations can vary widely, and each trader’s journey is unique.

The landscape of futures trading rooms and robot programs is vast and diverse. Amidst the sea of options, Target Trading Pro stands out as a beacon of authenticity, offering traders the opportunity to witness real-time trading with transparency and accountability. As traders navigate this landscape, they should do so with an awareness of the risks and a commitment to responsible trading practices.

Understanding Risk in Futures Trading

The world of futures trading is one of great opportunity, but it also comes with substantial risks that traders must navigate carefully. It’s imperative to consider whether futures trading aligns with one’s financial condition and risk tolerance. Delving into this realm requires a deep understanding of the associated risks and potential consequences.

  • Potential for Total Loss. When engaging in futures trading, individuals face the possibility of sustaining significant losses. This risk extends to the initial margin funds used to enter a futures contract, as well as any additional funds deposited with a broker to establish or maintain a trading position. It’s crucial to recognize that trading in futures markets carries the potential for losing a portion or the entirety of one’s invested capital, and in some cases, even more;
  • Contingent Orders and Market Conditions. Traders often employ contingent orders, such as “stop loss” or “stop limit” orders, to manage their positions and limit potential losses. However, it’s important to understand that market conditions may at times render these orders impossible to execute as intended. The high degree of leverage available in futures trading can work both for and against traders, leading to substantial losses as well as gains;
  • Volatility and Unpredictability. Futures prices are known for their high levels of volatility and unpredictability. Various factors, including political and economic developments, can influence the price movements of futures contracts. These factors often lie beyond the control of traders or their brokers. As a result, there is no assurance that traders will avoid incurring substantial losses;
  • Leveraged Investments and Small Price Movements. Futures trading is inherently leveraged, allowing traders to control contracts with relatively low margin deposits. While this offers opportunities for amplified gains, it also exposes traders to the risk of substantial losses. Even a minor price movement in a futures contract can lead to immediate and significant financial setbacks;
  • The Role of Trading Systems. In the world of futures trading, trading systems play a pivotal role in guiding trading decisions. These systems rely heavily on computer algorithms to generate trading signals, offering insights into market trends and potential opportunities. However, traders must be aware that the proper functioning of these systems is contingent on various factors.

Dependence on Technology

Trading systems are highly dependent on the functionality of computer systems. Failures can occur due to issues with third-party systems on which trading systems rely or due to failures in a broker’s hardware or software. Such system failures have the potential to disrupt trading activities and may render trading temporarily impossible.

The Quest for Price Trends

Trading systems often hinge on the identification of significant price trends in futures markets. These trends involve sustained movements in prices, whether upwards or downwards. It’s crucial to acknowledge that such trends may not always materialize. Historical data may showcase instances when price trends were absent, highlighting the inherent uncertainty of futures trading.

Hypothetical Performance and Real Risk

Traders are often presented with hypothetical performance results when considering trading systems. These results are typically prepared with the benefit of hindsight, which may not fully reflect real-time trading conditions. Additionally, hypothetical trading lacks the financial risk associated with actual trading, making it challenging to account for the impact of real financial risk.

Acknowledging Responsibility and Risks

Before embarking on futures trading, traders must engage the services of a broker and meet suitability requirements for trading specific instruments. By accepting the provided disclaimer, traders acknowledge the risks involved in futures trading and assume full responsibility for any financial losses incurred while using trading systems.

Holding Integrity and Accountability

The organization offering trading systems, in this case, trb futures llc, emphasizes its commitment to transparency and accountability. However, it’s essential to understand that trading involves risks, and losses are possible. Traders must not view any stated performance as an endorsement or suggestion to trade. The creator of the trading systems aims to provide real-time evidence of trading efforts but does not serve as a broker-dealer or financial advisor.

Conclusion

In the dynamic world of futures trading, understanding and managing risks is paramount. Traders must recognize the potential for substantial losses, the impact of market conditions on orders, and the unpredictability of futures prices. Additionally, trading systems, while valuable tools, are not immune to technical failures and may not always align with market realities.

As traders embark on their futures trading journey, they do so with a sense of responsibility and a commitment to informed decision-making. Acknowledging the risks and embracing transparency are essential steps toward navigating the intricate landscape of futures trading.

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Trader Table: Your Comprehensive Trading Guide https://www.klickown.com/trader-table/ Wed, 06 Dec 2023 12:04:25 +0000 https://www.klickown.com/?p=211 A Look Inside A Trader’s Workspace Recently, there has been a spike in interest regarding the workspaces of those who trade for a living. In

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A Look Inside A Trader’s Workspace

Recently, there has been a spike in interest regarding the workspaces of those who trade for a living. In particular, there’s a fascination with how their desks are organized and what kind of hardware they use. This has led to a noticeable uptick in inquiries, warranting a closer look at a typical trading setup located in a home office in Vancouver, BC.

Contrary to what some might expect, the setup in question is quite straightforward, consisting of a laptop paired with an extra travel monitor. The second screen is not a necessity but rather an added convenience, often utilized for live training sessions and occasional web browsing or email checking. Fundamentally, trading operations are executed efficiently on a single screen.

The Philosophy Behind a Simple and Mobile Trading Desk

  • Years ago, Forex trading entailed a more complex setup, with three large 23″ screens displaying 4-6 charts each for various currency pairs;
  • Watching up to 18 charts simultaneously, plus additional windows for indicator data, involved tracking numerous elements during a trading session;
  • In retrospect, this seems excessive, yet it pales in comparison to the barrage of information some traders subject themselves to.

The realization dawned that this complexity in trading setups was unnecessary and often stemmed from the misconception that complexity is a requisite for successful trading. The belief that more information and a more elaborate setup would lead to better outcomes was prevalent. However, experience has shown that simplicity often trumps complexity in trading, regardless of the trader’s skill level.

While extensive trading desks boasting numerous monitors are often a source of pride, they are not essential for achieving top-tier profitability. They can even be a hindrance due to their impact on mobility.

The motivation for transitioning to the Emini S&P 500 (ES) futures market was the pursuit of a fully mobile career, enabling trading from anywhere at any time. The goal was to trade efficiently with a single chart for a single instrument, leveraging the consistent opportunities for profit in the ES market, without the need for an elaborate setup. Emini Day Trading Strategies hold a pivotal position in enhancing traders’ outcomes.

Essential Hardware for Professional Day Trading

Multiple monitors on a desk displaying various financial charts and data
  • The essential component from the depicted trading desk setup is the laptop, which only needs to be of moderate range in terms of price and performance to efficiently operate the STA Day Trading System;
  • Extensive travels and living in various countries have proven that with just a laptop and a reliable internet connection, trading and teaching from different locations are entirely feasible;
  • The laptop in use is a high-spec 15″ Sager, equipped with an i7 processor, 16GB of RAM, and an extra video card, although such specifications are not necessary for trading activities.

The significant specification that proves useful is the i7 processor, complemented by the superior airflow of a quality Sager build, which is beneficial for swiftly encoding videos for live training sessions, recaps, and weekly trade reviews for students. Without the need to encode videos, a more compact and portable device like the Surface 3 or the recently announced Surface Book would be considered as a viable option.

The Advantages of a Portable Monitor in Trading

Incorporating a travel-friendly monitor into a trading setup enhances mobility and convenience. Models like the HP U160 are designed to be lightweight and compact, eliminating the need for heavy power cords by utilizing a USB port for power. With built-in protective casing, such monitors offer an optimal solution for traders who require portability in their equipment.

The Advantages of Streamlining Your Trading Environment

A minimalist trading setup fosters flexibility and can significantly diminish the mental and emotional burden often associated with monitoring an array of charts across several screens. Additionally, it curtails the potential for burnout that comes with the inundation of information, promoting a more focused and sustainable approach to market engagement.

Embracing Simplicity in Your Trading Approach

Hands typing on a keyboard with a stock market analysis display on the screen

The trading profession isn’t about the struggle to comprehend dozens of charts daily. It’s about making informed decisions and driving profits. A minimalist approach could be the answer to this. By focusing on singular charting and trading, the process becomes less stressful and more manageable. The transition towards simplicity not only brings clarity to your trading process but also opens up the opportunity for more adventures.

Indeed, shifting to a simpler trading approach requires a mindset change. But, the benefits of this transition are rewarding. A streamlined setup, flexibility, less stress, and the freedom to explore the world while maintaining productivity are the hallmarks of embracing simplicity in trading. It’s well worth considering if you’re looking to boost your trading productivity while enjoying the freedom of location independence.

Conclusion

In conclusion, the streamlined simplicity of a trading setup can significantly contribute to the efficiency and stress-management of a trader. Embracing mobility and clarity over complex multitudes of charts fosters a healthier trading environment and provides the freedom to work from anywhere. Remember, successful trading is not determined by the complexity of your setup but by the smart, educated decisions you make. Making the shift to a minimalist approach might be the key to enhancing your trading performance and the overall quality of your trading life.

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How Many E-mini Contracts Can I Trade in Futures Markets? https://www.klickown.com/how-many-e-mini-contracts-can-i-trade/ Sat, 11 Mar 2023 14:17:44 +0000 https://www.klickown.com/?p=283 Entering the world of E-mini futures trading invites a multitude of strategies and approaches, each wielding its unique potential for success. In this segment of

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Entering the world of E-mini futures trading invites a multitude of strategies and approaches, each wielding its unique potential for success. In this segment of the Emini Day Trading Series, we unravel alternative dimensions of futures trading, delving into nuanced strategies, adaptable market insights, and the critical facets that transcend basic trade execution.

Exploring Risk Management Tactics

E-mini futures trading success hinges upon adept risk management strategies. Traders deploy varied methodologies, from setting meticulous stop-loss orders to delineating risk thresholds and calibrating position sizes aligned with account dimensions. A comprehensive understanding and seamless integration of robust risk control measures stand as pivotal elements fostering sustained profitability.

Embracing Market Fluidity

The distinct edge inherent in E-mini futures trading is the agility to capitalize on diverse market movements. ‘Long’ trades encompass the anticipation of price escalation upon contract purchase, while ‘short’ transactions involve selling with an eye on price depreciation. This adaptive prowess amid shifting market trends offers traders unparalleled flexibility.

Interpreting Market Volatility

The dynamism witnessed within futures markets significantly influences the crafting of strategic trading approaches. Employing volatility indicators like the Average True Range (ATR) empowers traders to pivot their methodologies in response to market fluctuations. Navigating volatile market conditions emerges as a cornerstone for informed decision-making.

Explore the impact on traders facing PDT restrictions.

Elevating Trading Setups

Establishing a resilient trading infrastructure involves meticulous selection of brokers, charting platforms, and essential tools. Tailoring setups to align with individual preferences, technical analysis requisites, and trading strategies elevates trading efficiency and fosters prudent decision-making.

The Psychology of Trading

Beyond the realm of strategies, trading success intertwines with psychological fortitude and disciplined execution. Traders often grapple with emotional hurdles like fear, greed, and impatience. Cultivating a disciplined mindset and effectively managing emotions become pivotal for sustained success in the trading sphere.

Explore more why behavior is matter for traders

Refining Strategies through Backtesting

Subjecting trading strategies to historical market data offers a path to validate and fine-tune methodologies. This iterative process of evaluating strategy performance and identifying areas for refinement serves as the bedrock for crafting resilient, data-driven trading strategies.

Adapting to Market Dynamics

In the ever-evolving landscape of markets, adaptability emerges as a key attribute. Techniques like trend analysis, sentiment evaluation, and macroeconomic comprehension empower traders to navigate market shifts with agility.

Discover examples of E-mini contracts here 

Advanced Trading Paradigms

Venturing into sophisticated trading techniques like spread trading, options, or algorithmic trading widens the spectrum for diversification and potential profitability. While these methods demand expertise, they offer avenues for specialized and intricate trading approaches.

Continual Learning and Development

The dynamic nature of trading mandates an ongoing quest for knowledge. Engaging with diverse resources, from trading literature to interactive webinars and communities, fosters continual learning, fostering the evolution of innovative strategies and market awareness.

Dive deeper into intricate price action strategies.

Conclusion

E-mini futures trading presents a realm brimming with opportunities for traders seeking to conquer the financial markets. Mastery of risk management, a deep comprehension of market dynamics, meticulously optimized setups, and an enduring commitment to evolution form the pillars of sustained success. 

Aspiring traders should strive for comprehensive learning and disciplined execution to flourish within this dynamic trading landscape.

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Registration of financial companies https://www.klickown.com/registration-of-financial-companies/ Wed, 12 Jan 2022 14:06:00 +0000 https://www.klickown.com/?p=57 Opening a financial company is a rather complicated and costly process. It requires the preparation of an individual package of documents, knowledge of the peculiarities of the legislation in this area.

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Opening a financial company is a rather complicated and costly process. It requires the preparation of an individual package of documents, knowledge of the peculiarities of the legislation in this area.

To solve such questions, it is recommended to turn to qualified lawyers. Having practical experience in choosing the best legal form is an additional advantage. Existing law firms will help you in solving many issues, as well as do everything possible to save your time, effort and energy spent on independent opening.

What is a financial company and why open one?
When we talk about a financial company, we are referring to a legal entity that provides various financial services. Financial companies include banks and other financial institutions, credit unions, currency exchange companies, pawnshops, leasing and insurance companies, trust companies, asset management companies, investment funds, management companies and other similar privately owned organizations.

More often two types of companies are opened in the market:
Credit and financial companies (designed to issue and service loans). They should not be confused with banking organizations – the latter offer a much wider range of services.
Investment-financial companies. As the name implies, these companies are engaged in search and attraction of investments, investment consulting.

The difficulty lies in the fact that all financial organizations must be listed in the appropriate register, as well as in time to obtain a license to provide financial services. But that is not all: in addition to this general license, there is a need to obtain a license for each type of financial services that the company is engaged in. That is why the registration of financial companies is fundamentally different from the creation of regular companies and, above all, requires highly qualified specialists providing such services.

What are the conditions for opening a finance company?
In addition, there are special requirements for share capital, staff, premises, composition of fixed assets. They all vary and depend on the type of financial company. Another point to which one should pay immediate attention is the availability of developed forms of standard contracts with future clients and rules for the provision of financial services. Such requirements are mandatory for the creation of new financial companies.

Choosing a law firm, which will help you open a financial company, you should be guided by the following basic conditions of cooperation:

Term of registration – from 1 month. This time is spent primarily on obtaining licenses. For a shorter period of registration, as a rule, ask for a much higher price, so if time is patient, it is better not to rush.

A financial company is registered on a turnkey basis. You will only be required to be present in some places where you cannot do without the founders, and sign the documents.

Registration services are performed in accordance with the signed agreement in full and within the agreed terms.
The cost varies depending on the qualifications and name of the company which will deal with such issues, but on average such services will cost the future owner of 3-5 thousand dollars.

In order to collect the initial package of documents to submit to the state registration authorities also require the involvement of specialists. Trust the law firms that provide such services, and the whole process of registration, from the decision on the name and ending with the transfer of the licenses obtained, will be smooth, without unnecessary problems, almost imperceptibly for you personally.

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What are the stages of registration of financial companies? https://www.klickown.com/stages-of-registration-of-financial-companies/ Thu, 03 Jun 2021 14:10:00 +0000 https://www.klickown.com/?p=60 Before proceeding directly to the process of registering a company, the owner must choose in which area of business he will work.

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Before proceeding directly to the process of registering a company, the owner must choose in which area of business he will work. The type of company directly depends on the sphere of its activity. At the moment, financial companies are divided into two types.

Without a license. Companies of this type can carry out financial activities without a license in areas such as factoring, leasing, providing guarantees and sureties, as well as loans to businesses and individuals at the expense of the company’s capital.
With a license. This type of registration requires a more responsible approach. Besides the services from the previous point, the license gives the right to attract the financial resources of individuals, and subsequently use these funds as a loan. In addition, a licensed financial company has the right to exchange currency and provide clearing services.

So, the license should be issued in the case, in which the firm is engaged in insurance, pension provision and attraction of capital of individuals, in order to make a profit, dividends, interest or other types of charges. The extent to which you choose the right type of company registration can directly affect the success of your business in the future. In addition, the owner has the opportunity to optimize its costs for registration. If the state of your company provides for the position of a lawyer, registration can be done independently. However, in most cases entrepreneurs still turn for help to professionals from independent companies. Finance Business Service company specializes in providing services on registration of financial companies, so you will get highly qualified help and reliable service at each stage of registration of your own company.

Of course, there are peculiarities and nuances of each individual company registration procedure, but the general scheme remains the same. It consists of several stages.

  • Collection and preparation of documents.
  • Registration procedure in state structures and tax authorities. At the same stage, the owner is given permission to obtain a seal.
  • Data on the company is entered into the register of financial institutions.
  • For companies that require a license, it is necessary to collect the appropriate package of documents for certain types of activities.

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How to get a loan for a start-up business https://www.klickown.com/how-to-get-a-loan-for-a-start-up-business/ Tue, 08 Dec 2020 14:02:00 +0000 https://www.klickown.com/?p=54 In the United States, it is easy enough to get a loan for a start-up business if its owner has a good credit history.

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In the United States, it is easy enough to get a loan for a start-up business if its owner has a good credit history. To this end, there are certain types of loans that are made through financial institutions, which are a little easier to obtain because they are in some way guaranteed by the Government, and the financial institutions themselves are much more willing to give loans or credit on favorable terms. There is such an institution as the SBA (Small Business Administration) – an agency under the Government, which is engaged in:

Support for small and medium-sized businesses at the level of events, networking, infrastructure
as well as making arrangements with financial institutions for the provision of various financial terms.

Advantageous terms are negotiated between the financial institution and the SBA. The Government guarantee in this case means that if a financial institution gives a loan to a certain young company, which later does not pay back the loan, the Government guarantees payment on the loan to that financial institution.

U.S. government business support programs: for immigrants
If a business is owned by people who are permanent residents of the United States (even if they are not U.S. citizens), then all small and medium-sized business support programs apply to those companies. Moreover, there are special areas of support for businesses whose employees are immigrants. In addition, there are special incentive programs for hiring employees and staff diversification. That is, if a company hires a mixed workforce, which includes people of different races and ethnicities, it is quite possible to get an incentive for that:

  • both in the form of tax credits
  • and in the form of financial support from the Government.

Companies that are established and run by aliens permanently residing in the U.S. are notionally subjects to government assistance.

The government will certainly be less interested in supporting a business if the company is owned by aliens who:

  • Have no connection to the U.S.
  • Have no residency or documentation of residency in the U.S.
  • and have no plans to obtain the aforementioned documents.

The U.S. also has a relatively uncomplicated procedure for bidding on government contracts. There are two centralized resources:

  • The Federal Government’s website for civil contracts
  • The site for defense contracts.

Of course, it would be much more difficult for a company owned by foreigners or non-U.S. citizens to participate in obtaining defense government contracts. Although it is possible. As for bidding for civilian government contracts, the procedure is not complicated.

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How to start a financial organization from scratch https://www.klickown.com/financial-organization-from-scratch/ Mon, 24 Aug 2020 14:18:00 +0000 https://www.klickown.com/?p=67 Loan-sharking was the name given to high-interest loans from private individuals a couple of centuries ago.

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Loan-sharking was the name given to high-interest loans from private individuals a couple of centuries ago. Today, any entrepreneur versed in the banking sector can join this world and set up a microfinance company.

To imagine the scale of earnings, consider the standard offers in the MFI segment. Customers willingly take loans at 2% a day with the obligation to return the amount and interest in a month. As a result, a year’s worth of appliances or shoes costs 762% per annum. Unbelievable, but it works!

Microloans
Clients willingly take out loans at 2% a day with an obligation to pay back the amount and interest in a month.
Potential clients of such companies are people who live from paycheck to paycheck and, if payments are delayed, are forced to seek funds for current needs. It seems inconvenient for them to apply to a bank for small sums (and the fact that the application for a loan will not be approved), so they go to private individuals.

Before opening a financial institution from scratch, we recommend to get acquainted with its main advantages:

  • quick and unburdensome registration procedure;
  • the absence of licensing;
  • no obligatory insurance fees;
  • No restrictions on the amount of initial capital.

In order for an open credit agency to bring in a steady income, study the business from within. You can personally visit several businesses, ask for a loan and compare their approaches to customer service. Trying to beat all competitors is an impossible task.

Your goal is to formulate your own concept and find a niche in which you will become a leader. By evaluating the weaknesses and strengths of the market players, you will be able to take advantage of the successes and avoid the bottlenecks in your work, which slow down the growth of profits.

How is an MFI different from a bank?
There are differences between a bank and a microfinance-type lending institution that you should take into account before starting your own venture.

Loan amount. The maximum loan that an MFI has the right to disburse is 1.5 million.
Restrictions on currency.
Loan terms and conditions. MFIs not allowed to change the conditions of the loan (fixed interest rate, commitment period, commissions, etc.).
A limited number of operations. For example, MFIs don’t participate in securities trading on the market.
Loyalty. A private organization has less stringent requirements for borrowers and often forgives them a bad credit history, in return for taking a high interest rate on the loan.

Which format of organization to choose?
There are several formats of enterprise organization. So, you can become the sole owner of the firm, involve co-founders in the process (credit consumer cooperative format) or buy a franchise.

Independently opening an MFI
To start a project on your own, you need at least a basic knowledge of working with borrowers, including problem borrowers. The upside of owning a company on your own is that you can count on impressive dividends and profits that you won’t have to share.

You can open a microfinance organization on your own in three schemes:

  • With remote work with borrowers through the Internet;
  • Through the issuing points in your city;
  • Combining both of these options.

You can even work without a legal department and security service. Solving repayment issues from troubled debtors can easily be transferred to a collection agency.

Credit Cooperative
A credit cooperative is a voluntary association of citizens on a professional, territorial or other basis, the purpose of which is to meet the financial needs of its members.

To establish a cooperative you will need:

  • Creation of a regulatory group of 3-5 people;
  • The development and signing of notarized documents;
  • Writing a charter.

Once all the preliminary steps have been taken, all that remains is to register the organization.

Buying a franchise
From the financial and organizational sides it is more convenient to buy a franchise known brand. In this case, most of the costs are borne by the main partner. At the disposal of the subsidiary company provides:

  • accounting and legal support;
  • software;
  • promotional materials;
  • trainings and training courses for employees.

As a result, the risk of non-return of funds is seriously reduced, and the rate of return on investment increases. Of the disadvantages, the most noticeable is the high entry threshold. Therefore, when choosing a franchise, carefully study the conditions, including the amount of regular payments, the degree of participation in the process of the parent company, etc.

Company registration: documents and taxes
The next thing you need to open a microfinance organization is to get registered. The optimal form of ownership is an LLC.

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The main advantages of jurisdiction for incorporating foreign companies in the United States https://www.klickown.com/incorporating-foreign-companies/ Sat, 30 Nov 2019 14:15:00 +0000 https://www.klickown.com/?p=64 When deciding to expand a business with a presence in the States, it is important for foreigners to study the tax system, legal aspects, and corporate law very carefully.

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When deciding to expand a business with a presence in the States, it is important for foreigners to study the tax system, legal aspects, and corporate law very carefully. At home, everything is clear without unnecessary questions, and you know where to start. But how to be in a foreign territory, so that the organization of the business goes in the shortest possible time?

Initially, take into account that without legal assistance you are unlikely to do – the mentality of Americans shows a special passion for legal support, advice and representation you will find everywhere.

The same situation with the registration of the company in the U.S. – the interests of businessmen shall be represented by a licensed agent, who will submit the necessary documents to the registration authorities.

As for the answer to the question of why you need to open a company in the States, the goals and prospects may be different. Therefore, let’s consider the key privileges of the jurisdiction available to foreigners who have founded their own business here. Among them:

direct access to investment, venture capital, public markets;
creation of a structure with flexible management;
obtaining and facilitating trade in the U.S. market;
the ability to get a Green Card for investors and move as a family;
the ability to completely separate personal financial savings and
from corporate finances;

optimization of tax payments;
To get a visa for legal residence and official employment in the States (additional conditions required).
It is possible to open a company in the USA without a personal visit to the jurisdiction – remotely, you work with our experts by power of attorney. However, please note that in most cases a personal visit is required to open a corporate account with a US bank.

Choosing the legal form of the company, taking into account taxation and overall business structure
The most common legal forms of business among foreigners are:

LLC;
C-Corp.

Less popular, but legally allowed company structures include:

Partnership;
S-Corp (corporation with distribution of profits and losses among shareholders, for small business);
Joint Ventures (joint ventures);
Branches (branches of foreign firms);
Foreign Corporations Representatives.

Let’s understand the differences and general points of the most popular forms of business in the USA – Limited Liability Companies and Corporations.

The creation of an LLC is more attractive for small businesses with a small number of participants and no shares. Note that such a company may be treated by the IRS as a partnership, corporation or limited liability company. You should request Form 8832 to determine the status of your business.

As for the C-Corp, it is a publicly traded company, more attractive to large scale businesses and large business groups. Here it is mandatory to appoint a director or board of directors, otherwise taxes are paid (at the corporate rate and personal dividend income of shareholders). Additionally, consider the availability of federal taxes, the rates of which vary from state to state in America.

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