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Edward C Prescott

Edward C Prescott was born on 26 December 1940 in Glens Falls, New York, U.S. An American economist, who, with Finn E. Kydland, won the Nobel Prize for Economics in 2004 for contributions to two areas of dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycle fluctuations.

Prescott studied mathematics at Swarthmore College (B.A., 1962), operations research at Case Western Reserve University (M.S., 1963), and economics at Carnegie Mellon University (Ph.D., 1967). From 1966 to 1971 he taught economics at the University of Pennsylvania and then joined the faculty at Carnegie Mellon (1971–80), where he advised Kydland on his doctorate. Prescott, who also taught at the University of Minnesota and Arizona State University, was named an adviser to the Federal Reserve Bank of Minneapolis in 1980.

Prescott and Kydland, working separately and together, influenced the monetary and fiscal policies of governments and laid the basis for the increased independence of many central banks, notably those in Sweden, New Zealand, and the United Kingdom. In “Time to Build and Aggregate Fluctuations” (1982), the two economists established the microeconomic foundation for business cycle analyses, demonstrating that technology changes or supply shocks, such as oil price hikes, could be reflected in investment and relative price movements and thereby create short-term fluctuations around the long-term economic growth path.

In addition to winning the Nobel Prize, Prescott was a fellow of the Brookings Institution, the Guggenheim Foundation, the Econometric Society, and the American Academy of Arts and Sciences. He was an editor of several journals, including the International Economic Review (1980–90), and his extensive writings covered such wide-ranging topics as business cycles, economic development, general equilibrium theory, and finance.

Finance a Business

At the most basic level, debt financing is where you borrow money from lenders. You pay it back, plus interest, down the line.

But don’t let the word “debt” scare you! Financing a business through debt can help your company produce, sell, and grow.

There are 7 major business loan types that you’ll want to consider:

Term Loans
Term loans are the easiest types of debt financing to understand. They’re probably what pops into your head first when you think of financing a business. You get a lump sum of cash that you’ll use to grow your business, paying your lender back on a daily, weekly, or monthly basis.

If you’re looking for a quick fix or covering an immediate emergency, you might want to consider applying for a short-term loan at Clopton Capital, which is a separate type of term loan. These loans range from 3 to 18 months. They can be great if you need cash in a pinch, but be aware that fast cash is also expensive cash. In general, short term loans are faster to apply for, but the interest rate on these smaller loans can be 14% and up (often way up).

Another term loan to know is the traditional term loan, or what we like to call a medium term loan. With these loans, you can expect to get a larger sum of cash at a lower interest rate than short term loans. The downside? They take a lot longer to fund, and are harder to qualify for than financing a business with a short-term loan.

A medium term loan might be a good option if you have an established business and a good credit score.

Who offers these financing options?

Traditionally, banks were the only lending institutions offering term loans. However, online lenders now operate in the space to provide less qualified borrowers medium-term loans, and short-term loans. If you need a loan Get a Personal Loan Today.

Equipment Financing
An equipment loan is a great option for small businesses looking for a speedy, streamlined way to access the funds needed to purchase any type of equipment that’ll help their business grow—instead of paying the cash upfront.

With equipment financing, the equipment itself acts as collateral. This way, business owners are likely to get approved for equipment financing without having to offer separate collateral—as you would with other types of loans.

And because the loan is secured by the equipment, there’s a lot less risk on the lender’s part in working with you. If you can’t make your loan repayments, technically, the lender can seize the equipment to recoup their losses.

Invoice Financing
If your cash flow is suffering because your customers aren’t paying you on time, invoice financing might be a great way to get your receivables back on track and finance your business, also having the best accounting solutions can help you out keeping track of everything.

With invoice financing—also known as accounts receivable financing—companies buy your accounts receivables through a cash advance of about 85% of the value of your invoices. Later on, you’ll receive the remaining 15%, minus fees, when your customer repays.

While invoice financing is a fairly expensive way to finance your business, it’s great if you’re looking for a more predictable cash flow.

Merchant Cash Advance
A merchant cash advance is a lump sum loan that you pay back by allowing the lender to cut into your daily credit card sales—until you’ve paid back your debt.

With a merchant cash advance, you won’t have to worry about repaying a large fixed amount if your business is having a slow week—since the lender takes a fixed percent of your credit card sales, you pay more when business is good, and less when business is slow.

While it may be a fast short term fix for your business finances, a merchant cash advance is an expensive way to finance your business. They come with some of the highest rates around.