Supply and DemandWritten by Ioannis Evangelos Haramis
An old story says that if you want an "educated economist," all you have to do is get a parrot and train bird to squawk "supply and demand" in response to every question about economy! Not smart enough, but... It's true that theory of supply and demand is a central part of economics. It is widely applicable, and also is a model of way economists try to think most problems through. The theory of supply and demand is a theory of price and output in competitive markets. Adam Smith (1723 - 1790) had argued that each good or service has a "natural price." If price (of bread, for example), is above natural price, then more resources will be attracted into trade (bakeries, in example), and price will return to its "natural" level. We may think of demand as a force tending to increase price of a good, and of supply as a force tending to reduce price. When two forces balance one another, price would neither rise nor fall, but would be stable. This stability leads us to think of an "equilibrium" price. This "equilibrium" exists when price is just high enough so that quantity supplied just equals quantity demanded.
| | Making Your Business Happen with a Commercial LenderWritten by Cameron Brown
If your home business is starting to overflow from office into other parts if house, it may be time to consider finding a building large enough to handle your startup's rapid growth. Most businesses are unable to generate enough revenue at this phase of growth to allow you to purchase a new facility outright. In fact, businesses of all sizes commonly go through a commercial lender when acquiring new real estate. There are literally hundreds of commercial lenders out there waiting to provide you with growth capital. You've probably seen their advertisements pop up on your browser offering lowest rates and best service. With so many lenders to choose from, how can you get past gimmicks to find one that will fill your needs? Let's start with type of business you want to open. Are you thinking of a manufacturing, retail, agricultural, or service business? There are many different types of business, all with their own unique facility requirements. However, not every commercial lender will finance every property type. Here's a brief list of different types of property that a lender may (or may not) finance: · Agricultural (Ranches, Farms) · Automotive (Gas Stations, Car Washes) · Hospitality (Hotels, Motels) · Industrial (Heavy/Light Manufacturing) · Leisure (Golf Course, Amusement Parks) · Mobile Home Parks · Office Buildings/Complexes · Parking Lots · Retail (Shopping Centers, Strip Malls) · Tenant Buildings (Apartments, etc.) Besides finding a commercial lender who will finance type of property best suited for your business needs, you also need to consider what kind of loan options will be best for you. Some lenders are fairly flexible in their loan offerings; non-recourse, mezzanine, and bridge loans may all be useful options depending on your individual requiremnts and circumstances. In addition, many commercial lenders also provide construction financing for borrowers who would prefer a custom facility. Renovation and repair financing is also a common offering by many lenders.
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