The number of loan products have increased over the past 20 years as economic necessity and a demanding public in need of specialization to solve financial circumstances. From personal loans, educational loans, business loans and even municipal loans. The entities that took part in the creation of the various financial products are actuaries, risk management professionals, “information and informatic engineers” and Wall Street amongst others. It was necessary to create, enhance or break down for better or for worse loan services and products to keep money fluid in a diverse marketplace that required funds to address niche demographics.

Personal Loans
Signature Loans – A signature loan is just as it sounds. One applies for a loan and gives a signature on a promissory note to repay the loan in a certain amount of time. That amount of time is called a “loan term ” and may be from six months to five years. Signature loans usually require good credit and the criteria for loan approval are mostly based on the borrower’s credit and and to a lesser degree on assets. Not all signature loans have the same parameters for qualifications. Some loans may require the borrower even with good credit to account for assets to show the lending institution for underwriting purposes. The institution may or may not place a lien on the assets but nevertheless wants to have documentation proving that there are indeed financial or physical assets owned by the borrower. Signature loans usually come with lower interest rates than other types of consumer loans like payday loans, credit card advances, title loans and some car loans. More on these topics later. Who are the lenders in signature loans? They range from large subsidiaries of auto manufacturers to banks, savings and loan institutions, finance companies and payday loan companies.Credit Card Loans – Credit Card loans or cash advances from credit cards are another form of personal loans. These quick loans are more readily available to the general public and does not require a credit check. To obtain the initial card more than likely required a credit check or at least the process of identification for secured credit cards. Credit card loans or advances usually come with higher interest rates and also other fees for having access to the cash. Various entities allow access to the credit card cash advances from bank tellers, check cashing facilities and automated teller machines (ATMs). The fees vary based on source used to access the funds. To lower the fees for cash advances some use check cashing facilities to have the card charged and receive cash back in turn for not having to incur the fees of ATM machines as cards are assessed a fee twice; first by the ATM company and also their bank. The interest rates on credit card loans or advances are usually higher than signature loans. There are some states that have usury laws that have lower interest rates on credit cards. The loan or advance on a credit card is not a “term loan” as with most signature loans. It is more or less a line of credit the borrower has access to when they need it as long as there are funds available on the credit card. Interest on consumer loans are no longer tax deductible as in previous years. They were designed for short term borrowing needs but many have come to use their credit cards as a regular source of funds in tight economic times or between paychecks.Wedding Loans – A relatively new form of loan to carve out a niche for the lending industry and meet the needs of the increasing costs of weddings is the Wedding Loan. Because of the expense of weddings which can range into six figures, it sometimes requires a personal loan or even a business loan of the families involved to provide a proper wedding. Wedding loans can be secured (using assets for collateral) or unsecured (signature loans) to obtain funds for the ever growing need to pay for the escalating wedding costs and all the various services and products that a successful matrimonial ceremony would need. The credit criteria and the term may vary based on the amount needed and financial status of the people involved.Payday or Cash Advance Loans is a fast growing market because it usually requires the least of credit criteria used for loan approvals. One can have bad credit for a quick and instant loan. Just having proof of income, proof of identity and a checking account is all that is necessary to secure funds. Even today many have checking accounts without checks one can still obtain a cash advance by asking their bank to produce a one time check to give to the payday loan agency. Many payday loan companies and stores can get approval with no faxing of documents as they utilize other means for proof of income. Although payday loans come with very high annualized interest rates they sometimes are the only source of emergency cash loans for those in need.Automotive, Motorcycle, RV (recreational vehicle) and Boat Loans – These personal consumer loans are usually not signature only loans but asset based loans. In other words a financial lien is placed against the asset to secure a loan to purchase or refinance the car, boat et al. These consumer loans may sometimes require a down payment of five to twenty-five percent to secure enjoyment and use of ownership. Because these are not funds that are already available as with credit cards they come with a “loan term” from one to six years depending on the choices of the consumer, the marketplace and the credit status. The interest rates can range from very low usually offered by manufacturers of cars, motorcycles, RV’s (recreational vehicles) and boats to very high if the borrower uses a credit card, a finance company or a “buy here – pay here” lender – or the car dealer who finances the purchase of the car by giving the borrower a term of months and years to pay the balance of the loan off.

Business Loans
SBA (Small Business Administration) Loans are loans that are given to small businesses which are not able to qualify for a loan from a financial institution for various reasons from lack of business history, lack of collateral to “secure” the loan or not having an adequate credit history. The SBA is not a direct lender but acts as an underwriter on behalf of the bank that funds the loan for the business entity. If the borrower defaults on the loan the SBA will pay the bank a percentage of the balance for taking the financial risk to loan the funds to the business. There are various types of SBA loans which will not be covered in this article but a future article will explain in more detail.Conventional Business Loans are loans that are either unsecured meaning no asset is used to approve the loan or secured and called “asset based loans” where assets from inventory, equipment, accounts receivable or real estate are used for underwriting for loan approval. Conventional business loans are given to business entities that have great banking relationships, established business credit history with trade lines with other businesses they do business with and good standing with various credit reporting entities like Dun & Bradstreet. There are short term loans with interest only payments with the balance due at the end of the loan usually referred to as a “Balloon Loan”. There are also longer term loans that are fully amortized (principal and interest in each payment) paid over one to five years or more.Equipment Leasing is a financial instrument which technically is not a loan. Meaning based on tax ramifications and who owns the equipment – leasing is just that – leasing an asset owned by another entity. Leases are usually from large corporations or a bank. The lease term can vary from one to five years or more and there usually are tax benefits to the business entity in leasing new or used equipment.Equipment Sale Leaseback is a transaction to use equipment that is already owned by the business or municipal entity to secure funds for the present need for operations. The term can vary from one to five years and the amount of funds can vary based on credit history and a percentage of the fair market value of the equipment. The company then in turn leases the equipment back in usually a monthly payment. The company or the lessee normally has different choices on what they want to do with the equipment at the end of the term. They can roll the lease transaction into newer more updated equipment or software. They can buy the equipment for one dollar or ten percent of the fair market value of the equipment.More and more companies are leasing today as opposed to paying cash or using bank lines or loans.Merchant Cash Advance is used by businesses that need fast cash and can’t qualify or don’t want to go through the process of getting bank approval for needed funds. A Merchant Cash Advance is also not a loan product but it is the selling of assets or credit card receipts at a discount. In other words the Merchant Cash Advance company buys the credit card receipts and then attaches a fee usually every time the business “batches”, settles or closes the day’s or week’s sales until the funds advanced are paid off. There is no term with merchant cash advances as it is not a loan so there is no set payment amount or period. The paying off of the advanced funds vary based on a the credit and debit card transactions of the day or week.Factoring Accounts Receivable Invoices enables a business entity that normally has to wait 30 days or longer to be paid by other businesses or governmental entities. Again factoring is not technically a loan but a selling of invoices at a discount for cash now. In a typical transaction the company applies with a Factoring Company and the company looks primarily at the credit of the other business or governmental entity that the company is doing business with. Based on that as long as the client of the company is a solvent business or government agency the invoices are bought and funds are dispensed to the business usually within three days of due diligence on the company they are transacting business with. In other words the funds are dispensed after there is a credit check and processing of the other company. The dollar amount that is advanced can vary from fifty percent of the invoice to eighty or ninety percent depending on various factors such as the size of the invoice to the credit criteria of the other company or governmental entity whether it is a city, county, state or federal agency.Medical Factoring is a financial transaction that benefits medical entities like hospitals, clinics and various health care professionals that have to wait to receive funds for services performed on patients. Like Factoring and Merchant Cash Advances Medical Factoring is the selling of assets in this case invoices for cash now. In many instances the health care industry receives payment from third party entities like insurance companies, Medicaid and Medicare and state entities that provide funds for those in need of medical procedures. The medical facility or professional in turns sells the invoice(s) on a on going basis or one time for cash now. Once there is an interest is selling the receivables then a Factor steps into analyze the billing so that funds can be advanced. This process can vary in length but is usually shorter in length than the process of getting bank financing.Contract and Purchase Order Funding allows companies to bid on large projects for governmental agencies, hospitals, universities, prison systems and municipalities or also to sell to larger corporations even if the business does not have the credit or bank approval or the wherewithal to service or fulfill a large contract order. Similar to Factoring which works hand in hand with Purchase Order Funding it is not a loan but a simultaneous transaction that involves advancing funds based on the credit of the governmental agency or larger company and the size of the contract. The funds that are advanced are for the cost in completing the order of products or performing services. So the profit that will be gained is not advanced but the costs as in raw and finished material, transportation, production, labor, expertise and any other costs involved in completing the contract. Once the contract is completed or once an invoice is ready to be sent to the client a factoring company which is sometimes owned by the same company buys the invoice at a discount and the funds that would normally be advanced to the company are usually used to settle the amount advanced for the material and other services that were needed to complete the order. Contract and Purchase Order Funding usually requires large transaction amounts as opposed to factoring that can be utilized for invoices as small as one hundred dollars. With the use of Contract and Purchase Order Funding companies that were locked out of the process of bidding on large contract s may become players in multi-million dollar deals.Commercial Real Estate Sale Leasebacks are similar to Equipment Sale Leasebacks featured in this article. Instead of utilizing owned equipment to secure cash when bank borrowing is not wanted or not available the commercial real estate is used to access funds now. This can vary from office buildings, medical buildings, retail franchises, industrial buildings and manufacturing to large utility plants. This frees up cash “locked” away in real estate. Many entities find that at the present time the business they are in whether it is retail, manufacturing or another field that the holding of commercial real estate is not in their best financial interest for now. They prefer to put to use funds for their industry. So a retailer selling retails goods decides to focus on the retail operations and to lease the space because that real estate when factored into a myriad of calculations does not fit their financial goals during the present time. Yes the ownership of commercial real estate is an asset and can be used as a security for a loan but may also be viewed as a fixed non-performing entity that does not meet the needs of the business, organization, group or individual that owns the building. Commercial Real Estate Sale Leasebacks are another form of getting access to funds and has increased over the years.

Success FactorsHow to Discover the Love, Innovation and the Entrepreneurial Fitness Required in a Global Network Marketing BusinessForwardTo everyone that is doubtful of hope – this is for you!Let’s begin. A few short weeks ago, unbeknownst to me, I had the privilege of meeting someone on an airplane bound for Adelaide, Australia; who would lead me onto an exciting path of discovery. We momentarily chatted at the back of the aeroplane on my way back from Nadi, Fiji; in a chance meeting in which I would say ‘yes’, I would like to hear more about the business model that had established her recent financial freedom and success (more to come on this encounter with an interview in the later chapters).Eager to progress my knowledge, I spent the next 4 weeks researching the industry, the organisation, the people behind it and the sequences and processes to their wealth. The learning curve was exponential – and this is my reflection. At this point in time, I was coincidentally completing my final MBA capstone research project in Adelaide, so I took the opportunity to research her discussion with me in depth and convey the message across to my followers from an Australian scholarly point of view. I had no idea about the industry, albeit little rumours here and there to complement my somewhat biased and disappointing initial online research. I found nothing positive but like an underworld that nobody truly knew about – it intrigued me because I felt that something was right.The bastion for wealth had its scent in the air. This could be its last refuge – I thought. I had to form an immediate action drill to advance a pincer movement onto this burgeoning interest. It was now or never. I wasn’t sure if it was the timing or the opportunity – the right thing to do though was to jump first and ask questions later. This is the later part of that quick equation that transpired in my entrepreneurial mind. This educative curiosity from an Australian scholarly perspective is now alive in the words that you will feel and as we go through the journey together; towards health, wealth, a great life with grand relationships and most importantly learning about the chances to glow youthfully throughout the adventure. This enlightenment was my beginning into a new and evolving industry. A new road was carved and you may feel the moments morph around your own personal experiences or fantasies. I dived immediately into the books and into the school library; the search for the golden nugget had begun. Line by line, word for word, dissecting the information and honouring the objections with gratitude. My hope is that this communicated knowledge helps novice beginners similar to myself, take that intriguing next step towards calculated risk taking, growth and most importantly, self-discovery through the facts.I hope that you gain some business value in my research and that this value inspires you to create your own decisions when the time comes for you to approach your own destiny!In Gratitude and Thanks.David.Chapter 1Introduction to Network MarketingNetwork marketing, multi-level marketing, direct sales, referral marketing, pyramid selling etc, the names are endless. For the purpose of simplification we will adhere to this business model simply as network marketing for ease of navigation, and understanding throughout the book. All of these names; simply exemplifies a unique marketing strategy for the sale of products or services where the revenue of the network company is derived from a non-salaried workforce selling the company’s products or services. Pretty simple system – just made complicated to confuse the novice beginner like myself.1.1 History – How Did It Start?By accident to be honest. This is how the story goes and it all starts with an ingenuous idea conceptualised in 1930 by a man called Carl Rehnborg. Carl was an American businessman who lived in China between 1917 to 1927. Carl observed the benefits of using supplements in a diet that could be beneficial to a human beings health. According to Amway publications, Carl’s study became the ‘ample opportunity to observe at close range the effects of an inadequate diet’. With the knowledge he attained in the nutritional literature, he then started to envision a dietary supplement that would assist proper body functioning in any sort of diet. Carl then decided to go back to America to start his own company out of his learnings in China. He founded his company called The California Vitamin Company. In 1939, he renamed the company to Nutrilite. Carl utilised his friends to sell the vitamins but things initially looked disappointing. The vitamins were piling up on the shelves, unused and forgotten. It was heartbreaking for Carl. Until an idea lit up in his mind, to develop a kind of selling by informing people about the product. He shared the vitamins to more of his friends, to the friends of his friends and so on. You can see where this is going right? Alas – network marketing was born!The business model grew further when Jay Van Andel and Rich DeVos became the distributors of Carl’s products. The three noticed a phenomenal increase in sales. KABOOM… !! Network marketing was unleashed into the world. They later set up a competing company (because competition is good in a capitalistic economy) called Amway and they also bought a controlling interest in Nutrilite in 1972. In 1994, Amway took over full ownership and is one of the largest network marketing companies in the world today.1.2 How Do They Get Paid?As the business world innovates and disrupts, network marketing compensation plans evolve to attract new recruits and customers. It is a very simple strategy for expansion to capitalise on the available market share. It is different for every network marketing company just as there are different salaries for different corporations. However the most common is the commission based on the two revenue streams. The first stream of compensation can be paid out from commissions of product sales. The second stream of compensation can be paid out from commissions based on recruiting similar minded distributors. The amount of compensation varies between network marketing companies. I would have to study every single company in the world to understand this – alternatively I can study the success stories because success always leaves hints – in the results.Chapter 2Demographic ExamplesLet’s look at some quick examples of the people who have seen the opportunity and taken the leap. Here we witness the amazing stories of different individuals who have tasted the recent fruit of success in network marketing – becoming phenomenally wealthy.2.1 TeacherSarah Robbins always dreamed to become a teacher. So she became one. She thought she could now have all that she wanted with a limitless appetite for continuous personal growth and development. However, the economy stumped in the US of A, challenging her thoughts on the economy.She had heard of the Rodan & Fields products. She then decided to join so she could earn an extra income and expand her personal development at the same time. Unexpectedly, with her initial goal to earn just a bit of extra income, she earned more than she thought, even more as a teacher. Her career in network marketing grew and she decided to focus on it rather than her teaching career. She was earning six figures at a very young age. She joined the millionaires club and becoming the first distributor to be inducted into the Rodan & Fields Hall of Fame. Sarah continues to educate people on the benefits of network marketing and benefits of its wealth through her unique educational style.2.2 WriterEric Worre, an ordinary writer spent 30 years working in network marketing once he saw the light. He spent most of his 30 years as a distributor and eventually became the president of his own networking company – The People’s Network. He then decided to retire as a distributor and continued his journey in network marketing as a coach and helped network marketing novices, organizing sales presentations. He then wrote ‘Go Pro – 7 Steps to Becoming a Network Marketing Professional’ in 2013, to reach and educate more network marketing aspirants. It has sold more than 1.5 million copies and has been on six best-sellers lists on Amazon.2.3 Single MotherDonna Johnson is an example of a network marketing miracle. A single mum who did not have anything before she started in network marketing. No college degree – just an ordinary swimming coach in a little American town. With her determination to succeed, she now earns more than $1 million per year and is the leader in one of the top network marketing companies, Arbonne. She is now one of the biggest earners in network marketing and has a bed and breakfast business in Jamaica amongst other entrepreneurial ventures.2.4 Government WorkerRebecca Simon is a modest mother who was brought up in one of Adelaide’s toughest suburbs. She recollects how she would travel to work every day and sit at an uninspiring desk job, knowing deep down inside that she was capable of more. Today she is building her own resort on an exotic south pacific Island – just three years after she started in network marketing. More on Rebecca’s inspirational story later on in the book.Chapter 3The Feminine Revolution40 years ago, when the empowerment of women took off, many loved their new found independence and the opportunity to dress in a suit and drive off to a esteemed corner office. Things have changed a lot since the 70s and 80s, today she is just as happy to pull on comfortable yoga pants and skip the travel to the office altogether. Instead of tolerating negative office stigma and glass ceilings, modern women are heading towards the unique opportunity to be their own CEO, have control with no limits on their annual income. Some other reasons why network marketing industry is proving to be amazing for the ladies are:Drum roll…
3.1 Work – Life BalanceBeing burnt out today is no longer the exception, it is the norm. People have to put up with inflation, rising food prices, cost of living, raise families and commute sometimes for hours to get to, and back from work. The amount of work to be taken home is also increasing, teachers working to plan their workloads weeks in advance and project managers working extended hours to launch projects on time. You have heard it before and again, the balance has gone out of whack but some refuse to accept the truth.3.2 EnvironmentMost career women have worked in team environments and enjoy the collaborative and interpersonal communication that goes with it. It is no surprise that the network marketing industry has exactly that and for most women joining the industry, it is this support and collaboration that they miss the most from a usual 9am to 5pm, sit in the corner and do your work routine.3.3 Choice to ChooseNetwork marketing gives women the freedom to choose who they would like to work with as business partners. They choose who they recruit, who they work with and who they would rather not. This choice to choose is empowering and exciting at the same time for women in the industry.3.4 Global Empire at Your FingertipsYou drive around cities and towns nowadays and still see the for lease sign up again at the shop that closed around the corner. You wonder why some businesses prefer the old way of doing businesses in a time where digital disruption is taking stores online. The brilliance of network marketing is that apart from an initial modest start-up fee, there are no overheads, no garages for stock keeping, accountants, legal advisers, etc, you get the idea. The brilliance with network marketing is that most if not all the work can be done from your mobile phone or laptop computer. Your store is online!3.5 Cool Rewards and IncentivesThere are hardly any places left in the world where a large corporation hosts large global events that also reward women for trips, cars, gifts, holidays etc, all whilst developing women business capabilities and personal development. Name a lady who doesn’t like to be pampered from time to time with absolute luxury?3.6 Glass CeilingWith 82 percent of the network marketing industry made up of women, more and more are rising to the top, claiming multi-six- and seven-figure annual incomes. The world is your oyster in this industry for women and those that grasp the opportunity are confirmed with a gift, and if utilised, become extremely wealthy. No glass ceiling in the industry. Effort equals reward!3.7 Freedom of TimeLet’s face it, we all need more freedom, money and time. Where else can you get that? In the industry business partners are told to work at least 2 hours per day to grow their businesses. That’s an average of 8 hours from Monday to Friday. If done correctly this is all one needs to sustain a healthy and wealthy lifestyle from passive income brought in by the industry. Freedom has the allure to pull and no one will ever say no to an opportunity to get more!And, finally, perhaps the most important reason of all…
3.8 AuthenticityThe network marketing business model thrives on the values of femininity such as nurturing support, collaboration, and authenticity – all of which are inherently feminine traits that are easily transferrable into the business model. The more women show up as their natural caring selves, the more successful they become in developing long term substantial relationships in growing their teams and customer base.Chapter 4The Meek Shall Inherit the EarthThe worlds middle class is becoming much larger, the worlds education system is being made more accessible and demographics from the poorest suburbs on the planet have made that extraordinary leap from third world country struggle – to developed world multi-millionaire. Let’s have a look at some examples.4.1 The Gift of AdversityStudies and research have proven time and time again that those from minority, ethnic or migrant backgrounds go that extra mile to achieve their goals in life; if given a small and fair chance to give an opportunity a ago. With that attitude and hunger in network marketing, most if not all, go on to become extraordinary wealthy, becoming multi-millionaires and leaders. There is just something magical, mystical, unknown and empowering about enduring as an underdog from one of those aforementioned backgrounds. Turning adversity and challenges on its head can be the source of generational wealth for years and years to come. Let’s research an example of a network marketing company that is capturing this driven demographic.4.2 KyaniKyani is a global network marketing giant who has successfully positioned itself for global dominance in developing countries to assist the worlds growing middle class. A new starter but safely past the initial 10 year start up survival phase, and rapidly expanding into some 60 plus different countries over the short space of time, Kyani doesn’t limit its sales in developed economies but has strategically given interest to the worlds developing nations such as Honduras, Guatemala, Kazakhstan and Slovakia to name a few. You only have to grab a copy of Kyanis annual network marketing magazine to see proof of the overflow of the minority demographics from countries such as Korea, Turkey, Hungary and the Philippines who are being inducted into the 7 figure salary clubs. Most had disadvantaged starts in life and were from the ordinary occupations such as soldiers, hairdressers and tradesman.Let’s look at some life examples.4.3 Les BrownAfrican American global inspirational speaker, Les Brown didn’t have the best start in life. In fact it was horrible. However, he turned that pain around and become an inspirational example of hope for the world. Les Brown often refers to another historic global icon Ralph Waldo Emerson in his speeches who coined today’s existence as the ‘age of self-reliance’. Les Brown champions unorthodox underdog mental motivation and entrepreneurship – qualities that are found in those that are from minority, migrant and ethnic backgrounds.4.4 Robert KiyosakiFrom a military and Japanese Hawaiian background – Robert Kiyosaki, the award winning Rich Dad, Poor Dad writer; has proven that network marketing success and wealth is not reserved for any demographic. Success can be achieved by anyone, and from any background.Chapter 5Global Icons in Network MarketingNow, let’s look at some well-known global figures who have aligned their businesses with the network marketing industry.5.1 Warren BuffettThe man needs no introduction as a philanthropist and investor and usually sits in the top 3 of the richest people on the planet. He is valued at nearly 70 billion USD and owns Berkshire Hathaway. Berkshire Hathaway owns three network marketing companies, Kirby, World Book and the Pampered Chef. To this day Warren Buffett calls purchasing these network marketing companies – the best purchase he has ever made!5.2 Richard BransonA man that also requires no introduction. One small branch of the Virgin Group that often goes unmentioned is Vie at Home, a network marketing company formerly known as Virgin Vie. Vie at Home made over $60 million of profit in its – first year maiden of existence! Ouch!5.3 Donald TrumpYes, no political affiliations here but when asked on the David Letterman show: What would you do if you lost everything and had to start over from scratch? Trump replied – “I would find a good network marketing company and get to work”.5.4 Bill ClintonIn 1997, Bill Clinton endorsed network marketing in his remarks to the Direct Selling Association. President Clinton stated that ‘You strengthen our country and our economy not just by striving for your own success but by offering opportunity to others… Your industry gives people the chance, after all, to make the most of their own lives and to me that’s the heart of the American dream’.5.5 Jim RohnOne of the worlds pioneers in personal development and network marketing. Today remains one of the founding fathers of the personal and professional development movement and mentored motivational leaders like Tony Robbins. Jim Rohn found the light and opportunity within the network marketing industry and within 6 years – turned his fortunes around to become extraordinarily wealthy, by the age of 32.Chapter 6SummaryWith our brief history and introduction lesson complete, we will go from a beginner to more advanced network marketing challengers and the strategies that will equip the beginner early in the journey. We will unearth deep scholarly research to help structure your leadership for both, the local and the rising global markets.This Australian scholarly research will include vital business concepts that have been proven to increase the chances of success by leveraging both digital and offline mediums. As a bonus and later on in the book; the author personally will outline how his global and MBA experience has helped him in the industry.I sincerely hope that this book adds insurmountable value to your life, those around you and most importantly, your bright future.Thank You.AboutDavd was born in Fiji. At 20 years of age he enlisted into the British Army at Stoke on Trent in England. He served all over the world for a decade as an engineer and team leader. Some of his postings included Germany, Bosnia Herzegovina, Cyprus, Australia and Afghanistan. He moved into civilian life in Australia on May 22, 2012 and rose quickly through the civilian and public service leadership ranks. He graduates in November, 2018 with an MBA degree from Torrens University Australia and lives in Adelaide.