finance questions

Debtor financing is gaining continuous popularity to finance the growing businesses. It enables you to pay for the organizational expenses using the slow-paying invoices. It provides a flexible line of credit which depends on outstanding invoices and may be very beneficial for both small and large businesses.

Let us try to know more about Debtor financing, its working, and benefits in this article.

What is Debtor Finance?

Debtor Finance is a non-specific term alluding to items that store an organization by financing its invoices. It is also known as Cashflow finance. The two most basic types of Debtor financing are Invoice Factoring and Invoice Discounting. Both of these tackle the same issue and give same advantages. Be that as it may, they work in a different way and offer diverse features.

How Debtor Finance Works?

As a business conveys services to the customers, the solicitations invoices raised are sent to the financier. The financier then checks the invoices and advances up to 90 percent of the unpaid receipt esteem inside 24 hours. The business can then get to the accessible assets as required. The remaining rate of the receipt is paid to the business once the client receipt is fully paid, less a little charge.

The business can hold control of the accounting and accumulations capacities, or they can select the lender to control this capacity as a component of a full administration arrangement. Most Debtor Finance financiers offer online access to reporting, permitting the business to track installment receipts.

There are two types of Debtor Finance:

Disclosed:

In this type the debtor or customer is informed on invoices that funds are directly payable to the financier. This is termed as Invoice Factoring.

Confidential:

In this type the debtor or customer is not aware of the fact that the funding being provided. This is known as Invoice Discounting.

Invoice Factoring:

Invoice Factoring is a disclosed finance facility intended to enhance an organization’s Cashflow by transforming invoices into working capital. It gives speedy access to up to 90 percent of the estimation of verified Invoices. The remaining equalization, less charges, is made accessible to the business once installment is received from their customer. This facility is a recourse facility. The small businesses which have cash flow problems uses Invoice Factoring.

Invoice Factoring is normally given as a full administration arrangement, with obligation gathering, deals record organization and reporting gave to organizations who don’t have their own credit administration assets. The lender’s expert obligation accumulation administrations can help with gathering obligation expeditiously and proficiently. Be that as it may, with a figuring understanding set up it is still workable for a business to keep dealing with their own obligation gathering if craved.

Invoice Discounting:

The classified finance facility intended to enhance an organization’s cash flow by giving financing against the organization’s outstanding receivables is known as Invoice Discounting. It is used by the large companies which have a proper credit and collection procedure. It gives snappy access to up to 90 percent of the estimation of the confirmed Invoices. The remaining balance, less charges, is made accessible to the business once installment is received from their client.

Invoice Discounting is generally utilized by built up organizations that have an in-house accumulations or credit administration division These organizations deal with their own particular accumulations and needn’t bother with the financier to gather invoices for them. Organizations exploiting Invoice Discounting may not require all invoices funded, and may just utilize it as a sort of overdraft office for critical stock buys or wages. Invoice Discounting permits a business as far as possible on the sums attracted down to control interest costs.

By and large, the length of the record is all around overseen, just the business and the financier know about the Invoice Discounting facility.

Advantages of Debtor Finance:

• Enhanced Cash Flow: Generally the sales are turned into funds within 24 hours.
• Power to Negotiate: It provides the flexibility to the businesses to negotiate better with the suppliers.
• Flexibility: The Debtor Finance facility limits grow in-line with sales.
• Payment Discounts Elimination: It eliminates the need to offer payment discounts to the customers. Debtor Finance fee is normally less than the prompt payment discounts.
• Business Equity Retention: It enables you to access funds for business expansion, through Debtor Finance instead of selling business equity.

Invoice Factoring Benefits:

• It helps in a better credit management.
• It helps to assist the businesses having a strong or weak balance sheet position.
• It helps to assist businesses which may fail to qualify for traditional banking products.

Invoice Discounting Benefits:

• It suits to the businesses which have traded positively and have a positive net assets position.
• It also suits to the businesses that are trading without any creditor problems.

Also known as seller financing, owner financing is growing in popularity in today’s economy. With the credit markets slowing down and people finding it harder and harder to borrow, owner financing is looking better and better as an alternative to traditional financing. Owner financing is when the seller of the property basically agrees to take payments rather than a lump sum. Here are a few things that need to happen in order for the owner to be able to finance your deal:

1. The owner needs to have considerable equity in the property. The owner will usually have their own mortgage they will need to pay back in full when they sell the property to you. If they don’t have a whole lot of equity, they usually can’t offer to finance a whole lot of the deal. The best scenario is an older owner that is close to retirement. Odds are that they have a good amount of equity or even own the property free and clear. They are looking to retire and just want a steady cash flow rather than a lump sum when they sell the place.

2. The owner should have a desire to accept owner financing. If the seller wants to roll the funds over into another property or needs the lump sum of cash for one reason or another, they probably won’t want to take on very much seller financing.

3. The terms need to be right for both parties. The interest rate, duration and repayment structure need to be acceptable for both parties. This usually requires a good deal of negotiation.

If you have all your ducks in a row and seller financing seems like it might be a possibility, here are some of the benefits to consider if you are thinking about locking in owner financing:

1. You might not have to get traditional financing. This depends on how much the owner is willing to finance. If they are willing to finance just a little bit, this might help you lower your down payment or help you qualify for traditional financing, but won’t completely eliminate traditional financing unless you pay the remaining amount due as a down payment.

2. You could get more flexible terms than you would on a standard mortgage. You have the power of negotiating so that both the buyer and the seller walk away with a fair deal. You typically can’t do this with a traditional bank.

3. The seller is still somewhat on the hook for the property. You know that you aren’t getting totally ripped off, because the seller still hasn’t received all their money. There is a possibility that you could pay a little bit of a premium for the deal. If they end up totally screwing you, and the property completely falls apart in a few years and you let it fall into foreclosure, the seller only stands to get the property back. The seller isn’t going to want to lend to you using a bum property as collateral.

If owner financing seems like it would work for you, there is no reason to start looking for properties for sale with owner financing. Even if a property isn’t advertised as offering owner financing, you may be able to talk with any seller and see if they are willing to negotiate on terms.

Your company is facing a variety of challenges – many of them tend to be business financing related. The challenges can be positive in nature, and some might pose serious threats to your business growth or even existence. How asset can based finance aid your firm in allowing you to generate the working capital and cash flow you need to prosper and grow, let alone survive?

Asset based financed helps your firm in both good time and challenging times. The reality is that most business owners and financial managers in Canada currently don’t think we are in ‘good times ‘and business financing continues to be a huge challenge.

Asset based finance comes in a variety of forms – it is commonly in the industry itself referred to as ‘ ABL ‘ financing, and typically your firm would negotiate what is simply or commonly known as an asset based line of credit. The facility provides you with a revolving line of credit very similar to a chartered bank facility – it might also include a significant inventory financing component, and usually address what we could best call special needs or special situations re: turnarounds, growth, distress, etc.

The best candidate for an asset based finance line of credit is a firm that is experiencing strong growth but can’t attract the traditional capital that is used to finance receivables, inventory, plant and equipment, and even in some cases real estate.

An asset based line of credit can best be described as a ‘creative’ financing solution – that is because it takes your balance sheet and finances it to the desired ‘max’ based upon your different asset components. In some cases even intellectual property or patents might be included in the overall financing, although that clearly is not the norm.

Pricing in Canada on asset based lines of credit is all over the map – We tell clients they can expect to pay anywhere near a point or two over prime up to an including 1.5-2% per month. What defines that huge difference in pricing is what our clients are always asking. The answer is that that there are different what we will call ‘ tiers ‘ in ABL lending in Canada, and the overall size and deal quality of your firm will ultimately drive you to an asset based finance partner that more closely matches your needs and your overall ‘ risk profile ‘.

The reality is that asset based finance has somewhat changed the overall face of business financing in Canada and more and more firms, both large and small are gravitating to this form of finance. Deal sizes in Canada vary greatly – we do not encourage clients who have an under 250k/mo need to explore asset based finance because at a certain point the reporting, costs, etc done make sense for neither your firm or the ABL lender.

Asset based lending margins your assets to the extend of their current market value. Inventory financing is a major component of your facility if you require that, and inventory financing in Canada, from traditional sources, is difficult to arrange.

Is there any downside in asset based lending and an ABL working capital facility? Our clients ask. With relative certainty we can say any downside is significantly offset by upside. The facility gives you almost unlimited working capital, and margins assets that might otherwise not be finance able. And don;t forget, this type of facility does not add debt to your balance sheet, you are simply monetizing your hard and in some cases soft assets.

Speak to a trusted, credible and experience advisor in asset based lending who can highlight financing options that make sense for your firm’s survival and growth.

FHA financing has become a preferred route for many home buyers for several good reasons. It has unique challenges as well, though, and home buyers need to be aware of both the advantages and disadvantages when choosing to use this route for their home financing. Let’s review the pros and cons of FHA financing here so you can better understand your options when selecting this route for your home purchase.

Advantages of FHA Financing

• Less Money Needed Upfront - FHA financing currently requires a 3.5% down payment while conventional financing typically requires a minimum of 5% down. FHA financing also does not currently require that a buyer have any additional savings left after purchase while conventional financing typically requires the buyer to have two months of mortgage payments minimum set aside in the bank after closing as a safety precaution. Because of these lighter requirements, the FHA buyer can typically buy a home with less money needed upfront.
• More Flexibility on Credit History – FHA financing normally has more flexibility with a credit history that is newer or slightly bruised. Conventional financing will typically require that a person’s credit history be well established with little allowance for credit bruises like late payments or collections. FHA has more liberal guidelines on this which can help the buyer whose credit is newer or has experienced some challenges.
• Ability to Purchase A More Expensive Home – assuming you stay under FHAs maximum loan amount, FHA financing will normally allow a higher ratio of bills to income than conventional financing will for the buyer with average to strong credit. This can help a FHA buyer be approved for a larger loan amount than the conventional homebuyer in many situations.

Disadvantages of FHA Financing

• More Paperwork – Due to the addition of the Federal Housing Administrations guarantee of FHA loans, there is additional paperwork needed both to approve and close the FHA mortgage. This is typically just a minor inconvenience, but it’s still something that the home buyer should be aware of upfront.
• Higher Property Standards - the Federal Housing Administration places a high importance on the safety and soundness of the properties it finances. Because of this, they hold these properties to a higher standard than conventional financing typically requires. Prior to making an offer on a home with FHA financing, the home buyer should talk with their lender about the property to determine if there are any features of the home that might make it ineligible for FHA financing it its current condition.
• Higher Mortgage Costs - FHA currently charges a 1.75% upfront mortgage insurance premium to the home buyer. This cost can be financed into the loan or paid at the closing, offering some flexibility to the buyer, but either way it is a cost that will need to be paid at some point. Additionally, FHA financing currently has higher monthly mortgage insurance costs than conventional financing in most situations. Both the upfront and monthly cost change periodically so the homebuyer should check with their lender to see what these charges are when they find their home and how they compared to the mortgage insurance cost for a conventional loan.

While there are other minor nuances of both FHA and conventional financing that differentiate the two, these pieces are the primary ones that the homebuyer should considering when determining what type of financing is best for them. For the buyer with strong credit, savings for the down payment and decent room between their bills and income, conventional financing is typically easier and less expensive. For the buyer with newer or bruised credit, limited savings or tighter bills compared to income, though, FHA is a strong option to consider.

Working Capital business financing is never a question of why – it’s just simply a matter of when! Working capital and cash flow are of course the heart of every business. The challenges of obtaining that financing become a question of time.

Perhaps you need cash for for your regular ongoing business cycle – that’s the simple one – you buy inventory, your produce things, you sell, bill and collect. In a perfect world your suppliers give you unlimited time to pay, and unlimited credit limits. And of course your customers pay you in exactly 30 days. Guess what? It’s not a perfect world!

If you are a traditionally financed firm you have access to bank capital for revolving credit lines based on your business needs. But for a growing number of Canadian firms that access to traditional bank capital is not available. Those scenarios require a special expertise in identifying sources of business financing that work for you. The solutions actually are quite numerous – its becomes a questions of which solution works for your firm, what are the costs involved, and does the solution fit within your business model.

The business financing we are talking about can take many different forms – it might include an asset based line of credit, inventory financing or purchase order financing, a sale leaseback on unencumbered assets,, working capital term loans, or accounts receivable financing, otherwise known as factoring.

One of the most important things you can do for business financing is to ensure that the type of financing you source matches your needs. What we mean by that is that you should match short term needs with short term financing. Factoring might be a good example. If your receivables aren’t financed, and you need cash to meet inventory and supplier commitments that type of financing is immediate and addresses your needs. Why would you enter into a five year term loan at fixed payments for a short term capital need or requirement?

The best way to think of short term financing is to focus on the current assets part of your balance sheet – those items include inventory and accounts receivable typically. Those assets can quickly be monetized into a working capital facility that comes in a variety methods. The reality is that your inventory and accounts receivable grow lock step to your sales and your ability to finance them on an ongoing basis will give you access to, in essence, unlimited working capital.

There are some solid technical rules of them around how you can generate positive pricing for operating facilities. By calculating and analyzing some basic financial ratios (we call them relationships) in your financial statements you can get a strong sense of whats available in working capital business financing and what pricing might be involved. Those ratios are your current ratio, your inventory turns, your receivables turns or days sales outstanding, a, and your overall debt to worth ratio. Depending on where those final ratio calculations come in will ultimately allow your working capital financier to put your firm in a low risk, medium risk, or high risk band of pricing?

In Canada working capital rates range from 8-9% per annum to 1-2% per month, depending on what assets are financed and how they are financed.

So whats our bottom line in working capital business financing? It is simply there are alternatives available and you as a business owner of financial manager can assess those alternatives in terms of short term needs or long term needs. Pricing and solutions vary, and your ability to convey the positive aspects of your business to the working capital lender will ultimately lead to a final pricing and solution. Speak to a credible, experienced and trusted working capital business financing advisor to determine what solutions are the best for your firm.

BHPH Financing

What is Buy Here Pay Here Financing (BHPH)?

A BHPH loan is offered through the dealership by the dealership. Traditional practices had you get loans through a bank or credit union, usually of your choice. Since lending practices have become tighter it has become difficult for people with average to below average credit to secure a loan. BHPH is a way around this.

With BHPH you get the loan directly through the dealership so you make payments there as well. Depending on the dealership the payment methods vary. Most will only accept cash, sometimes checks and credit cards as well. It is important to ask any and all questions regarding your payment options. Missed payments at a BHPH dealership are treated as missed payments everywhere else. There can be late fees charged and in worst case scenarios a repossession. If your car is repossessed then you owe the full balance and the last thing you want is a car payment with no car.

What is the difference between a BHPH dealership and traditional financing?

Nothing really. The only real difference are the numbers that go into it. Most dealerships have always offered BHPH financing but advertised it differently. Other dealerships never bothered to take on these types of loans because they are looked at as high risk. Now that it has become almost impossible to finance they’re just now joining the party.

How do I know if I should seek out a BHPH dealership?

If you have gotten declined more than one time at a traditional dealership due to credit history then a BHPH dealer may be your only choice. Some people/places will claim that there are different routes.

For example, internet companies asking for your information for instant approval. They advertise things such as no money down, bad credit welcome and no job history needed. Don’t let these places fool you. They will either use the same or similar lending practices as a BHPH dealer or funnel you to a BHPH dealer in disguise. Sometimes they will funnel you to dozens of BHPH dealers in your area and you may get phone call after phone call. It is often more hassle free to go into a BHPH dealership and sit down with them face to face rather than getting dozens of phone calls over months from these internet websites.

What are some other terms used to describe a BHPH dealership?

Special finance, Bad Credit Car Loans, No credit Car Loans, No Money Down, Alternative lending. If dealerships advertise something like “We finance” then that is also similar if not the exact same as BHPH. If they advertise things like bankruptcy? No problem or Foreclosure? No problem then that is BHPH. You say tomato I say tomatoe? Something like that. It is all the same if you have below average to bad credit but worded differently.

What credit score or what on my credit will give me an indication that I need to go through BHPH?

This is where it gets very confusing for the experts as well as the people they’re financing. Often times the person trying to get you the loan doesn’t even truly understand what goes behind some lenders approvals or denials.

Back in the golden days of lending, a 600 score, a job and a $1000 down could take you a long way. Even sub 500 scores with similar factors could get you a nice car. Now that everyone is so picky even a 700 score might not get you what you want. What’s the highest score? Somewhere in the upper 800′s. The biggest things that will prevent you from getting a car loan are no job, no down payment, no credit history, a repossession, a foreclosure or a bankruptcy. Repos are especially bad because the dealership will scratch their heads and ask “if you don’t want to pay the other guy, why would you pay me?

If you have no job you have a 0% chance of getting financed. All the other issues can be overcome.

What if I want to improve my credit history?

Many BHPH dealers offer this service but not all of them. Some will do it upon request only. Others offer it as a selling point to finance with them. Either way you should make sure this is part of the deal. The main reason you couldn’t get financed was because of poor credit. This will help build your credit history so you can get better interest rates.

What if I want to trade my car in?

BHPH lots do take trade ins. Although, they usually won’t take it as just a down payment. Oftentimes they will give you better trade in value because you are dealing directly with them. They also understand the value much better than if another dealership simply writes down your vin and sends it to a bank. Its way more hands on. A lot of BHPH lots are smaller and need the extra customer base and extra money for your trade in to earn your business can go a long way.

Do Buy Here Pay Here lots rip people off?

This is what scares most people before they even give BHPH a chance. There are many horror stories that go with a BHPH program but not all of them are true. There are different types of BHPH lots that use different methods of financing you. It is also best to understand that BHPH is in essence a high risk loan. How do we know this? Because history has shown us that when financing individuals with this type of credit a lot can go wrong. Cars go missing. People stop paying. People are late. Life happens.

With a high risk loan the cost of doing business goes up in a big way.

So is BHPH the right fit for me?

This is a question you must answer on your own. You need to weigh the pros, cons and ask as many questions about what type of financial commitment you’re getting into. Its when you don’t ask questions and ignore the fine print that things go wrong. A lot of people with below average credit think that they don’t have a choice because of it. Its this type of attitude that will get you in the car that you don’t want with payments you can’t afford. Don’t let a salesman pressure you into a contract where you are destined to fail. Making poor financial decisions is what got you into this situation in the first place its time to start making the right decision!

We forgive you, and we are sure everyone else does also… for what…? Simply because you keep asking about the best factoring program out there and quite frankly you have factoring questions on this ‘relatively’ newer form of business financing.

So, factoring explained. Let’s cover off some key basics and arm you with data to make an informed decision as to whether his type of Canadian business finance works for you.

Step 1 – understanding what we are talking about. It couldn’t be more simple. As you generate sales and receivables you enter into a ‘ program’ to sell those receivables to a third party. As can be imagined, you receive a discounted price for your receivables, because you are getting cash today for something that would normally be collected 1, 2, and three months out.

The cost of factoring is always a key discussion point with our clients. The industry refers to this as a ‘ discount fee’, and in Canada that fee is quite frankly all over the place. We can make a general statement thought that typically the fee is in the 1- 3% range. We can hear our clients already. ‘We’ll take the 1% please!”. The reality is that you do have some control over the pricing in your factoring program, because the key drivers of the pricing are quite simple – the size of you A/R portfolio, the number of customers, where they are located, and their overall credit quality.

While customers tend to always focus on price in this discussion we frankly tell clients that the factoring questions they should be focusing on are more important – how does the program work on a day to day basis and how does it affect my clients and my business processes.

On a day to day basis you are advanced, as you generate invoices, approximately 90% of the invoice value – generally the same day you cut the invoice. Why only 90%. Simply because the finance firm holds back that 10 % as a reserve or buffer and it also covers off the financing cost. Let’s demonstrate a clear example. If you generated an invoice today for $100.00 you would receive via wire transfer 90$ into your bank account today. If you customer paid in 30 days ( you wish!) and the factor firm priced your program at 2% then when your customer paid the invoice you would receive your other 8 dollars back, the 2$ being the finance charge. It’s as simple as that.

Its not hard for our clients to see some of the immediate benefits – all of a sudden ‘ factoring explained ‘ requests become quite clear – it frees up cash flow instantly for general working capital purposes, suppliers can be paid on time, and you can purchase additional products and services that you need to grow your business on a daily basis.

Factoring, aka ‘ receivable discounting’ is different from banking – it comes at a higher cost, and works on a day to day basis significantly differently than if you were able to facilitate a bank line of operating credit. The harsh reality is that while many banks are pushing back on receivable and inventory facilities for small and medium business the factoring industry has kicked into hyper growth mode, seizing the opportunity to finance the liquidity gap in Canadian business.

Speak to a trusted, credible and experienced Canadian business financing advisor who will guide you through the process for success in Canada’s newest mainstream business financing strategy.

PayPal on Apple iCloud Issues

Will Apple ever make it to the Finance Industry after PayPal showed negative reactions to Apple launching their Mobile Payment Service Apple Pay?

PayPal publicly questioned Apple’s credibility in getting into the Financial Industry when it announced recently in the New York Times its open contempt on Apple’s new technology. Putting much emphasis on Apple’s recent issue over iCloud, PayPal reminded the public when celebrities’ intimate photos suddenly went into circulation, throwing doubts on Apple’s credibility to secure financial accounts. The Ad accompanying such remark even stated, “We want our money, more than our selfies!”

The Technology to Replace Apple Pay Wallet

After the success of the Apple Pay, Apple is now launching another technology to upgrade Wallet features. This time, cash transactions are quick and made easy through a phone built-in NFC feature. NFC is a sensor strip built into every iPhone 6 and iPhone 6 Plus phones. This strip is found at the top of the phone and is activated once you hold your phone over a sensor. By simply touching the ID for authentication, transaction is done. With the new Apple invention, cash transactions are more quick and easy. For security of transactions, credit cards which appear on your Passbook are secured in an enclave at the phone as the credit card number is never stored. This makes your card number isolated from your transaction as a security code is sent over the wire. So if you lost your iPhone, it can easily be disabled. With the NPC sensor strip, it can turn your iPhone into debit and credit cards for you. You can use it for online transactions without filling up long forms. Just one tap is all you need. Apple Pay also works with Apple Watch but Apple Company still had to work out for more details. Some third Party Apps are also integrated in the new invention paving way for more apps developers in the future.

Apple on the iCloud Breach Issue

After hours of investigation into Apple Security System, Apple CEO, Tim Cook reaffirmed its vehement denial to the allegation that there is a breach in their iCloud Security Feature. According to the result of the conducted investigation, Apple did not find any reason to support Hollywood Celebrity, Jennifer Lawrence’s cries for breach security after nude photos went into circulation in the internet. Other celebrities involved were Selena Gomez, Mary Elizabeth Winstead, Kate Upton and Kirsten Dunst.

Apple insisted that investigation results showed compromises on user accounts, passwords and security questions. In short, they were done by hackers and not a breach issue on the part of the Company. Apple CEO further advised their patrons to use double security measures. Apple also added more security features to avoid compromises in their product and customers security by sending out alert emails every time they log in into their iCloud using web browsers. This does not exclude even those who regularly log in into their iCloud. However, this will only be temporary as Apple works to find more ways to improve their security against nude-crashes. Apple also got some plans to improve iCloud security by sending out emails and push notifications to iTunes users in cases of any attempts seen to change their passwords, restore iCloud data to another device, or log into iTunes for the first time.

PayPal Irrelevant Issue Raises Doubts on Apple Security

Now that Apple had announced the entry of the Apple Pay, with more sensible features attuned to secure data of its users while doing transaction more easier, this could provide them a portal to the Finance Industry. But after the iCloud issue, which proves to be a drawback to Apple Security Measures, will joining the Finance Industry be a good move for Apple? Will it prove to be their downfall or their breakthrough to the Finance Industry?

With these issues to raise, PayPal, the largest online banking showed reluctance if not dismayed on Apple’s decision to go into Finance Industry. What with the large portion of their market brought to them by Apple?

After celebrities nude photos goes into circulation over the web, PayPal’s negative comment on Apple iCloud Security take its drawback as people started questioning and pointing on its effects on PayPal. The allegation against Apple iCloud does not limit the people assumptions that if it happens to Apple, there is a great possibility that the same thing can happen to PayPal any time. This assumption as to PayPal’s loophole in their security was finally backed up by a blog posed by a 17-year old kid from Melbourne, Australia. This post is relevant and probably the very reason why Apple commanded much attention from PayPal and other online financial and banking institutions. If PayPal is getting restless over transactions involving iPhone, how would it react if hackers would finally treat PayPal to the same extent that they treated Apple?

Apple had indeed shown their great expertise in dealing with such crisis. Once again, they prove to their customers and competitors that they are always ready and capable to develop their products and services. They are giving much focus on the provision of full security, both to their products and customers or users. It is but natural for a corporation as big and as great as Apple, to be facing such issues. But what is important is the fact that they never stop in looking for great innovations for the improvement of every product feature.

The battle between Apple and eBay may take its final course in the long run, when people themselves will watch and measure its final outcome. However, being in the same industry where a company’s credibility is at stake over finances, it’s better to collaborate in providing solutions to any loophole in the technology. Conquering the Finance Industry is still a long run for Apple but with the introduction of the new-featured iPay Phone, will they be able to make it or break it in the Finance Industry? Apple’s entry to the finance Industry will surely bring various reactions on everyone, including existing and potential competitors.

The Issue oni Cloud Security is just a gateway for Apple to consider joining a new Industry but issues such as this one surely leaves a lot to learn and to develop. Finances and Technology always comes hand-in-hand. When you got one in your hand, it takes one great decision to hold on to the other!