Friday, September 19, 2014
Sounds great, but getting approved for financing can be difficult. Here are some of the common hurdles that entrepreneurs face:
● Lack of Personal or Business Credit: Established companies and startups alike have poor or limited credit histories. Some business owners use their personal credit to finance business matters, which exposes them to more risks in case of default. Sole props must rely on strong personal credit.
● Income: Two years of business tax returns with a positive trend are required by most lenders.
● Collateral: Many startups tend to be in fields with limited or unfavorable collateral, such as technology firms or restaurants. Lenders prefer to collateralize a loan with equipment, real estate and cash rather than tables,chairs or food.
● Industry: Banks view restaurants, construction, bars and medical offices as high risk loans. These industries may seasonal cash flow, high A/R or greater liability. .
Has your business loan been declined for any or all of these reasons? You have several alternatives that require little or no credit.
Equipment financing makes it easy to determine collateral, which also eases some concerns about credit. Your industry is also not a factor and lenders focus on your ability to repay the equipment loan alone. Unlike a general purpose loan or line of credit, a bank can lend money on a pizza oven and feel more secure knowing how the money is spent and that there is collateral coverage.
Specialty companies and banks each offer equipment loans. The loan officers work closely with manufacturers and can often speed up approval or push through a borderline application in some cases. Make sure to ask about trade in options to keep pace with changes in technology.
You should work with a CPA to manage capital equipment from a tax standpoint as well. In accounting terms, old machines that have been paid off no longer have a ‘useful life’. This equipment may not be productive and has no write off for depreciation expense. Conversely, new equipment can improve and have tax benefits. Companies should consider these factors to maximize the ROI of equipment loans.
Receivables affect your cash flow and make it difficult to meet payroll, surprise expenses or other overhead. As a solution, you can sell your A/R to a factoring company for quick cash. The factor buys your receivables for a discount percentage, which will vary based on who the A/R is from and how long the receivable is outstanding. A/R from larger corporate that is 30 days out will fetch a higher % than individual accounts in the 60 day bucket.
Companies can also use A/R financing as leverage to expand. A medical office can pounce on discounts for new billing software or technology by selling pending payments from insurance companies to a factor.
Focus on selling A/R with higher profit margins. In basic terms, selling invoices with a 20% margin at 85 cents of the dollar still results in a 5% net.
A company can also get short-term capital by borrowing against future credit card sales. Your credit is not an issue, as the history of credit card receipts is what determines the decision. You will repay the loan plus a premium as a % of daily credit card sales over 6 months to 1 years. Confirm there are no prepayment penalties before signing.
As an example of merchants loans in practice; restaurants could use the money to prepare for catering or special events. The cash buys decorations and hires entertainment before you realize revenues. Merchant loans can also supplement lines of credit or business credit cards to cover shortfalls.
Business owners can use equipment loans, A/R financing and merchant loans in several ways. Each of these business loan alternatives has value at many stages of a company’s growth.
Monday, September 1, 2014
Basic bank accounts are special types of bank accounts in the UK for people who can’t be able to get regular bank accounts. It is important to note that it is harder to get a regular bank account in the UK than in the US. This can be attributed to numerous restrictions in the UK's banking industry barring most people (especially those with poor credit scores/rating) from getting regular bank accounts. Basic bank accounts solve this problem.
As the name suggests, basic bank accounts offer you basic banking i.e. a place to store your money and send money from. They were created for people who were either new to the country with no credit history or had accumulated a bad credit score as a result of bad debt. As such, these "bad credit bank accounts" do not offer overdraft facilities or in-credit interest. Most banks offer their basic bank account holders a debit card for making payments in regular and online stores. You can also be allowed to set up direct debits which is great because it makes paying bills cheaper.
Contrary to popular belief, basic bank accounts aren’t 100% free of charges. Just because account holders don’t have access to credit doesn’t mean they won’t be charged some fees. The accounts usually attract occasional charges i.e. you will be charged for attempting to make payments when your account balance is insufficient. Most banks usually charge an unpaid transaction fee not exceeding £25 a time. It is therefore advisable to know exactly how much money is in your account before you attempt transacting.
Basic bank accounts aren't publicised by banks simply because banks don’t stand to make a lot of money from basic accounts. Unless you make the mistake of using the card when you don’t have money, banks don’t stand to gain anything from your basic bank account. In fact, the accounts attract more cons simply because of the workload the accounts attract (administration costs) without bringing any notable returns. Unless you specifically request for a basic bank account, bank staff don’t offer the account as an option for individuals with bad credit.
You may be wondering why banks bother offering basic bank accounts if they aren't good for business. Well, the answer is simple; bankers know that they can be forced easily by legislators to offer the accounts if they refused to offer them. Such a move would have serious consequences given the fact that bankers would have already lost the goodwill of the people and legislators.
How to open/apply for a basic bank account
As mentioned above, basic bank accounts are for individuals who have poor credit history which is usually caused by bankruptcy, serious defaults or CCJs. The accounts are also available for individuals with no credit history i.e. basic bank accounts for those with no credit history. If you fit in the above description, you can open a basic bank account. Although there are a few unique exceptions, anyone can get a basic bank account. The accounts are specifically meant for people who can’t pass credit checks for standard bank accounts.
It is however worth noting that you don’t have to have be in financial/credit problems to be a basic account holder. You can open a basic bank account to simply help you manage money better. You should however be specific or the bank might offer you a standard instead of a basic account. The only group of people who aren't allowed to operate basic bank accounts are people who have had fraud criminal convictions
To open a basic bank account, you need some form of identification as is the case when opening a regular bank account i.e. a national identification card to current passport. You need a current European Union (EU) member state ID, a current UK photo card driving license or full paper driving license, an ID card issued by Northern Ireland’s Electoral Office, a benefits book or benefits entitlement letters including child benefit, pension, disability, income support and job seekers allowance or a HMRC tax notification or an assessment letter.
In case you have problems providing the above documents, you can use other ID forms. You can visit the Money Advice Service website to see the list of all the requirements you must meet to open a basic bank account with all the major banks in the UK. In case you are unable to provide any acceptable forms of identification, you can contact the respective bank and explain your situation to see if you have any other options. In a nutshell, you shouldn't have any problems applying for a basic bank account in the UK if you have the right ID documents and you don’t have any history of fraud.
Saturday, August 16, 2014
Annuities: These are insurance policies that offer payments at fixed intervals or lump sum at the time of retirement.
Stocks & Mutual Funds: You can choose to invest in many company stocks, however this needs skills as the high probability of great returns is accompanied by high risks too. When one is not very confident about able to manage the trading it is best to enter the market through borrowers funds. These are managed by professionals and the risk associated is lower too.
Bonds: These debt instruments are securities in which the investor lends to a corporation or the government for a certain interest payment and there is a guarantee of the repayment of the bond’s face value.
Cash Instruments: There are many low-risk and relatively short-term options like CDs, that offer fixed rates of interests.
DRIPs: These Direct Reinvestment Plans involve reinvesting the returns or dividends to buy more shares of that corporation.
Exchange Traded Funds - ETFs are traded on stock exchanges and offer unique investment options.
Whatever instrument you may choose to plan out your retirement benefits as early as possible. This is because you’ll have more time to achieve your savings goal and hence can explore a greater variety of investment tools and more time to recover losses, if any and of course, you can compound your saving by reinvesting your returns. This is most useful when you have a good amount of time available at your end.
Calculate & Save
Most people do not pay attention to their expenditure or their cash flows or do not have any understanding of where they are headed to. One can start by making an assessment of your net worth. This can be found out by deducting your liabilities (what you owe) from your assets (valuables that you own). The difference amount between your liabilities and assets gives a clear indication of your net worth and give you a clarity of goals after factoring in your net worth.
Therefore it’s best to set yourself a specific goal or you’ll never be able to meet the same. When this is missing neither will your efforts remain directed or measurable nor will you find enough motivation to keep up your savings and make the right decisions. You may even think of writing down a SMART (specific, measurable, attainable, realistic and time bound) retirement goal for yourself. You may want to define your retirement age, your financial aspirations like where you’d like to live, how much you’d like to spend, post your retirement. This will all add up to a figure which you’ll be chasing to achieve.
Don’t Let Emotions Guide Your Financial Decisions
You may not even realize the extent to which emotions can guide your decisions even when investments are concerned. When your investments are doing well you tend to be overconfident and often overlook the risk factors and end up making bad decisions. And when the investments aren’t performing, you’ll probably be risk averse and avoid even attractive and may not make enough money over a period of time.
Therefore, as far as your investments go, it’s best to keep your emotions in check and take a very realistic and dispassionate look at the opportunity and remember that there will be a risk element and not all will be performing at the same level. Keep your portfolio balanced to mitigate the risk.
The other important factor to look out for is the fees that you pay. These are the charges attached to the investment options and often eat away your profits, reducing your investment’s attractiveness. These may come in the form of Administrative charges, transaction fees, loads etc.
Start Now, if Still Unsure, Ask an Expert
Think about it truthfully, are you postponing your retirement savings just because you are not too sure of the ways and options? Then it is best to contact a professional and get the necessary help at the soonest. You may even decide to do some research or pursue an educational course to get your knowledge and skills updated.
Whatever way you may choose, as has been reiterated, the essence is to start as early as possible. This will give you enough time to plan for a comfortable after retirement life for your family and even give you some cushioning against life’s unpredictable twists and turns!
Monday, August 11, 2014
With the internet being the number one source for nearly everything that plays a major part in our well-being, it’s no surprise that many brokerage firms are moving towards offering their services online. It’s definitely not a surprise that most freelance brokers are utilizing the internet to offer the service either. The main reason many brokers prefer to offer their services online is to get everything digital. Less solves cost of having to purchase paper and ink for printers, which could be quite expensive. Online Brokers also allow users the ability to save time and the effort of having to drive across town just to invest. If you are in the mist of finding an online brokerage company then look no further because you will be provided a thorough comparison between the most used brokerage websites.
With E*Trade, investors will have the ability to start investing at a very low price of $9.99. Investors will also have access to clear, competitive and fair pricings. When opening a Brokerage Cash account, investors will have to invest the minimum required of $500 or if they are interested in opening a new Brokerage Margin Account a minimum of $2,000 is required. Along with that there are tons of account features investors will have access to upon choosing E*Trade some of these features include online banking, mobile tracking, Mutual Funds, Dividend Reinvestment, Local Offices and Broker Assisted Trades.
Scottrade allow investors to participate in online trading at $7 per Market/Limit order. This Brokerage Company even allows investors access to touch tone phone at $7 per Market/Limit order and Broker Assisted at $27 market/limit orders. If you are interested in investing with this company you will have to invest $500 to open a Cash Account, $2000 to open a new Margin Account and $500 to open an retirement account. Just like E*Trade there are tons of features investors will have access to upon opening their account which are online banking, mobile trading, mutual funds and Dividend
Opening a cash account at TD Ameritrade doesn’t require you to deposit any money but you do have to invest $2,000 to open a Margin Account. TD Ameritrade also offer retirement accounts without any deposit minimums. This brokerage company offers online trading market/limit orders at $9.99, touchtone phone market/limit orders at $34.99 and Broker Assisted market/limit orders at $44.99. TD Ameritrade also offer tons of great features such as access to local offices, mutual funds and much more.
OptionsHouse investors will allow themselves to have access to many features including mutual funds, broker assisted trades and mobile trading. At OptionsHouse, investors will be able to participate in online trades and automatic investments at only $4.75 per market/limit order. This amazing brokerage company also offers investors to complete trades over the phone, which also starts a $4.75. There is no minimum required to open a cash account, however you must invest $2,000 in order to open a Margin Account.
Similar to the other Brokerage Companies listed above, Merrill Edge offer some of the same features such as access to online banking, mobile trading and much more. There is no minimum amount required to open a cash account and there is a minimum of $2,000 required upon opening a Margin Account. Merrill Edge offer online trades at $6.95 Market/Limit order, touchtone phone market/limited orders $32.50 and Broker Assisted market/limit orders at $29.95.
If interested in becoming a stock broker yourself, stop by http://www.stockbrokersalary.biz for more information.
Saturday, August 2, 2014
Plan your meals in advance
Some people eat their way right into debt. But you are less likely to repeat such a scenario, if you follow some of these tips.
- Start organizing your meals beforehand, so you’ll save money not buying costly semi-products.
- Planning will help you at the grocery by buying in the lump and shopping for sales.
- You will also reduce waste, if you use the same ingredients in your meals regularly.
- Make up a grocery list and you won’t buy the products you don’t need when you go shopping to the nearest supermarket.
- Use a recipe database, which let you filter recipes based on the products you have in your fridge. So you use what you’ve got instead of going out to buy some more ingredients. Use low-priced apps for meal-planning. It will avert you from going to a restaurant on your way home if you don’t already know what’s for dinner.
- At some point you should learn to cook for yourself. And probably this moment has come. Fast food abuse
Cheap and easy food is very tempting for majority of young people, especially students, because they fall into this trap living on a student budget and unwilling to cook. So students suggest they save their time and money. But they forget how much calories they are getting at once and much big their physical training must be.
Even if you have the cheapest fast food at least twice a week, it will cost you $500 a year. If people could invest all the money they spend on fast food, it would be a significant sum afterwards only after a year of self-restraint. Anyway it is not so easy to control your cravings every time. We need to indulge ourselves from time to time. But if you managed to get into a debt trap in spite of all your attempts, here you will find financial assistance with payday loans at North&Loans.
Save on booze
Clean lifestile becomes increasingly attractive. All of us know enough about drinking less and living healthily. Luckily, these days more and more young people are dropping their bad habits and wasting less money on smoking cigarettes. But still going out for drinks is very common and it is heavy expenses on their money box. Simple calculations prove that using drinks regularly gets expensive. If you go out twice a week to the cheapest student club nights, you spend approximately $20-25 a night on alcohol. That make about $40-50 a week or $2,500 a year! So, if you slow down, you could put by over a thousand dollars in a savings account instead!
Saturday, July 19, 2014
health insurance which can take a lot of burden from your shoulders and helps to assist in the unexpected situations. And if you wish to enroll in a health insurance policy then there are many online health insurance sites to assist you.
There are few tips and the benefits of regarding choosing an online health insurance policy.
Online health insurance quotes
It is the estimated amount of the money that you will spend to get insured under this insurance. If these quotes are provided to you through internet then these are known as online health insurance quotes. These quotes are offered to you by the insurance companies. All these services are free of charge but there are few sites which will charge you with the fee. Avoid those kind of sites and switch to the others.
Health insurance plans
There are several types of family and individual insurance plans available for those who are searching online. You may be surprised by the affordability and variety of these health insurance plans which are being offered on the internet today. Today it is very important to have health insurance coverage because there is no defined time of accidents and expenses and it can put a lot of burden on you and your family budget. There are several national health insurance companies on the internet which will provide you with instant quotes on all types of insurance plans.
There are different health insurance plans online and if you don't know about the plans then you can check the website of the company. A renewed site is definitely going to offer you with the complete details of the plans or you can take the assistance of the customer support. If you will learn about the types of the different health insurance policies then it will get easier for you to get the health insurance coverage at the least cost. Therefore it is best to look out for such schemes and enjoy the benefits of those policy.
Online policy premium payments
Once you have selected your health insurance plan provider, you can do many more things online. You can make payment of insurance premiums that too in a safe and secure way online. An acknowledgment receipt for the same is also forwarded to your email id within seconds for your reference. Your online health insurance policy will not only cover you against the unexpected health concerns in addition to your routine and preventive health needs and it will give you the reassurance that your health is taken care in the best possible way.
Reading the above mentioned benefits of online health insurance policy then you would be keen on purchasing a health insurance policy that would satisfy all your needs.Wait no longer, just go online and begin your search for the ideal health insurance cover. At a time you can have the quotes from the two - three companies and compare the prices of those companies. After that you can easily decide what your next step is.
Experts in the health insurance company suggest that getting the quotes first is the best move you can make. You can also decide which insurance quotes suiting your capabilities for your pay package, preferences and needs. There are so many companies present online and with a little research you can definitely find the best company. Thus you are able to ensure that you are getting the right cover for the individual needs at a price that meets your budget.
Ruby Andrew lives in Bristol, UK and is an avid reader and blogger. Since her early years she’s had a passion for writing. Her articles have been published in leading UK newspapers. Her areas of interest are food, reviews (Book/Movie), Travel, Fashion, Lifestyle, Fitness and Health. She works as a guest blogger on her chosen areas of interest and currently writes on behalf of EHIC card.