Many consumers will see the Christmas pinch magnified this year as the UK continues its struggle to escape recession.
While irresponsible lending through credit cards and other lending products contributed to the credit crunch, credit cards should not be ruled out as a tool for helping consumers to get by, as when used properly they can help to ease the pressure that comes with Christmas.
One option is to take advantage of the interest free durations offered on most credit cards, allowing you to spread your annual Christmas spend over a longer period of time, without paying a penny in interest for borrowing.
There are lots of credit cards to choose from, so finding the best card can sometimes seem confusing.
The two most attractive features are 0% periods on purchases and balance transfers. If you plan to use the card for purchases, you should look out for the longest 0% purchases duration, and if you want to transfer existing debt in order to avoid paying interest, search for the longest 0% balance transfer period.
It is also possible to mix the two, allowing you to avoid paying interest on debt transferred onto the card, as well as on the purchases you make using the card. The Halifax all-in-one and the RBS all-in-one credit cards are each offering 9 months 0% on both features, so either would be ideal if this is what you are looking for.
If you simply want a card with the longest 0% purchases duration then consider the BT 0% Purchases Card, offering a 10 month interest free duration.
Alternatively, if you wish to transfer an existing balance while paying no interest for the longest duration, check out the Virgin credit card, with a market beating 16 months 0% on balance transfers.
Whichever card you choose, the golden rule you must always stick to is to always ensure you pay off at least the minimum amount each month, and to clear your balance before the 0% duration expires to avoid paying any interest.
Something else to remember is that credit card companies charge a transfer fee when moving a balance onto a card (usually around 3%), so bear this in mind when looking to make use of this feature.
If you are fortunate enough to be in the position to clear your balance in full each month, then you don't need to worry about 0% offers as you won't pay any interest. However, there are still a number of cards offering rewards every time you use them for you purchases.
Reward credit cards offer special benefits such as cash back, or points earned as the card is used that can be exchanged for goods and services. If used properly, these cards effectively reward you for making your normal purchases.
There are several types of credit card reward schemes to choose from, including air miles, gift vouchers, store vouchers and other goods and services. When used correctly, these cards than be very rewarding. An effective way of making the most of these cards is by using them for as many purchases as you can. These include things like grocery shopping, bills, fuel etc. This way you will be rewarded for things you need to buy anyway.
It can take up to a month to process a credit card application so now is the time to apply to be sure it arrives in time for your Christmas shop.
Saturday, 14 November 2009
Friday, 13 November 2009
Savers to be informed of rate changes
The new European rules will take effect on November 1, and specify that all banks and building societies are required to provide advance warning to customers of reductions to rates paid on bank accounts.
Savings accounts providers will also have to communicate details of rate changes to account-holders when a bonus period comes to an end. This is likely to affect the majority of savers, as most top-paying variable rate accounts now offer introductory bonus rates, which generally revert back to an uncompetitive rate after this period ends.
Account providers have been criticised in the past as many savers are unaware that their account no-longer pays a competitive rate.
The new law follows months of rate cuts to accounts made by providers, often without informing customers, despite the fact that the Bank of England base rate has remained unchanged at its record low of 0.5%.
Two of these - Halifax and Leeds Building Society, recently trimmed rates on a range of their accounts by up to a quarter of a percentage point.
a spokeswoman for the Financial Services Authority (FSA), which will oversee the rules, said: "The changes are aimed at ensuring customers know what is happening to their accounts,"
"The rationale is they are told ahead of time so they can move if they want to."
The new requirements will be rolled out in two stages.
The first stage will come into effect from November, ruling that banks and societies are to give customers at least two months’ notice before making any reduction to rates on most instant access savings accounts and current accounts.
Letters, e-mails or texts must be sent out by providers (depending on the chosen communication method when the account was set up), informing customers of an upcoming rate cut.
The second stage will become effective from May 2010, and will focus on a new notification regime for notice and other instant access accounts, including individual savings accounts (Isas).
These Banking Conduct of Business (BCOB) rules are still to be finalised but are also expected to provide savers with advance notice of cuts made to interest rates.
Experts said that the proposed rules would be a major improvement on existing notification rules.
Some providers already inform savers of rate cuts, but under the industry’s current Banking Code they are not required to do so.
Savings accounts providers will also have to communicate details of rate changes to account-holders when a bonus period comes to an end. This is likely to affect the majority of savers, as most top-paying variable rate accounts now offer introductory bonus rates, which generally revert back to an uncompetitive rate after this period ends.
Account providers have been criticised in the past as many savers are unaware that their account no-longer pays a competitive rate.
The new law follows months of rate cuts to accounts made by providers, often without informing customers, despite the fact that the Bank of England base rate has remained unchanged at its record low of 0.5%.
Two of these - Halifax and Leeds Building Society, recently trimmed rates on a range of their accounts by up to a quarter of a percentage point.
a spokeswoman for the Financial Services Authority (FSA), which will oversee the rules, said: "The changes are aimed at ensuring customers know what is happening to their accounts,"
"The rationale is they are told ahead of time so they can move if they want to."
The new requirements will be rolled out in two stages.
The first stage will come into effect from November, ruling that banks and societies are to give customers at least two months’ notice before making any reduction to rates on most instant access savings accounts and current accounts.
Letters, e-mails or texts must be sent out by providers (depending on the chosen communication method when the account was set up), informing customers of an upcoming rate cut.
The second stage will become effective from May 2010, and will focus on a new notification regime for notice and other instant access accounts, including individual savings accounts (Isas).
These Banking Conduct of Business (BCOB) rules are still to be finalised but are also expected to provide savers with advance notice of cuts made to interest rates.
Experts said that the proposed rules would be a major improvement on existing notification rules.
Some providers already inform savers of rate cuts, but under the industry’s current Banking Code they are not required to do so.
Thursday, 12 November 2009
Pay off cards quickly 'to avoid Christmas debt difficulties'
Aussies planning on funding Christmas by using credit cards are being urged to ensure they pay off the balance as soon as possible.
Those considering how they will fund their expenditure over the Christmas period are being advised to do so with caution.
Chris Whitehead, chief executive of Credit Union Australia, claims that people looking at how they will meet the cost of gifts, food and other seasonal expenditure in the run-up to the festive season should draw up a list of the things they want to buy in advance.
From here they should create a budget to help them figure out how they will pay for such items, something that could mean they are less likely to make impulse purchases.
In taking this action, he tells the Australian Associated Press that people should be able to avoid starting the new year in a significant amount of credit card debt.
"Many shoppers use credit cards to make their Christmas purchases - thinking they can pay the balance off in the new year," Mr Whitehead points out.
However, he claims that although people may be looking to make use of the interest free period deals attached to cards, when such offers end those who have not taken action to make repayments may find themselves "suddenly financially overcommitted".
"The key is to ensure you are able to pay the balance in full each month, avoiding surmountable debt issues," he adds.
And despite recent research indicating overall growth in outstanding card balance has slowed down, "there is no room for complacency and consumers should continue to pay off any existing credit card debt and spend smartly over Christmas".
Shopping around for the best offers on goods was among the tips for saving the Credit Union Australia head also recommended.
His comments follow a study carried out by Access Economics revealing that residents in Southern Australia currently have a strong willingness to spend money, with expenditure in the state due to return to the peaks seen in 2007 by the middle of 2011.
Those considering how they will fund their expenditure over the Christmas period are being advised to do so with caution.
Chris Whitehead, chief executive of Credit Union Australia, claims that people looking at how they will meet the cost of gifts, food and other seasonal expenditure in the run-up to the festive season should draw up a list of the things they want to buy in advance.
From here they should create a budget to help them figure out how they will pay for such items, something that could mean they are less likely to make impulse purchases.
In taking this action, he tells the Australian Associated Press that people should be able to avoid starting the new year in a significant amount of credit card debt.
"Many shoppers use credit cards to make their Christmas purchases - thinking they can pay the balance off in the new year," Mr Whitehead points out.
However, he claims that although people may be looking to make use of the interest free period deals attached to cards, when such offers end those who have not taken action to make repayments may find themselves "suddenly financially overcommitted".
"The key is to ensure you are able to pay the balance in full each month, avoiding surmountable debt issues," he adds.
And despite recent research indicating overall growth in outstanding card balance has slowed down, "there is no room for complacency and consumers should continue to pay off any existing credit card debt and spend smartly over Christmas".
Shopping around for the best offers on goods was among the tips for saving the Credit Union Australia head also recommended.
His comments follow a study carried out by Access Economics revealing that residents in Southern Australia currently have a strong willingness to spend money, with expenditure in the state due to return to the peaks seen in 2007 by the middle of 2011.
Saturday, 7 November 2009
Live Forex Quotes - How Useful Are They?
One thing about the Forex market that you should know about is that there is a massive amount of information out there for you to actually decode when talking about the currency market. When you are looking at the Forex market, there are so many economic indices, price changes, tracking information, swaps and pips - that there is plenty of data for you to actually play around with. While you might think that the first thing you need to do is to get some sort of number crunching software for yourself, or perhaps a trading system, you might be right, but at the end of the day, you need to be able to get call outs to what you need to do.
And this is where the whole concept of the Forex quote is and this really gives you an insight to one of the critical parts of the whole trade currency, which is the price. Price is the driving force for the market and one of the more important indices to the market. When looking at price readings, you need to be on the right market track, and of course being able to know that the price of currency you are backing would increase in time to come, because that is the whole point of the market.
When you are talking about this, the price rates are basically being divided into many sections. The first thing about live Forex quotes is just that they would be able to tell you some of the important indices that you need to know about when talking about real time CFP quotes from all over the continent. Depending on the service that you have signed up for, what you are going to be able to do is to get the quotes based on the region specific currency pair that you are trading in.
Now, how you respond to quotes is of course one of the ways that you are going to ensure that you will at least succeed in the market, and the thing about this is that you are going to be able to make life a little easier for you if you can pair this with some technical and fundamental analysis of your own. This sort of on the fly information can be useful when you do not have the time (especially in the fast paced generation that we live) to find the trade signals on your own, and that's where quotes come in to fill in the blank pretty well.
So, live Forex quotes can be useful, it just depends on how you are going to use them and how they are going to benefit you in the first place. If you look online, you would realise that there are many companies out there that are offering this service. Signing on means you have another channel of information that you can use to make money off the market, but of course, it does take some skill and some experience to be able to use them to their fullest degree.
And this is where the whole concept of the Forex quote is and this really gives you an insight to one of the critical parts of the whole trade currency, which is the price. Price is the driving force for the market and one of the more important indices to the market. When looking at price readings, you need to be on the right market track, and of course being able to know that the price of currency you are backing would increase in time to come, because that is the whole point of the market.
When you are talking about this, the price rates are basically being divided into many sections. The first thing about live Forex quotes is just that they would be able to tell you some of the important indices that you need to know about when talking about real time CFP quotes from all over the continent. Depending on the service that you have signed up for, what you are going to be able to do is to get the quotes based on the region specific currency pair that you are trading in.
Now, how you respond to quotes is of course one of the ways that you are going to ensure that you will at least succeed in the market, and the thing about this is that you are going to be able to make life a little easier for you if you can pair this with some technical and fundamental analysis of your own. This sort of on the fly information can be useful when you do not have the time (especially in the fast paced generation that we live) to find the trade signals on your own, and that's where quotes come in to fill in the blank pretty well.
So, live Forex quotes can be useful, it just depends on how you are going to use them and how they are going to benefit you in the first place. If you look online, you would realise that there are many companies out there that are offering this service. Signing on means you have another channel of information that you can use to make money off the market, but of course, it does take some skill and some experience to be able to use them to their fullest degree.
Friday, 6 November 2009
How to Trade Currency in 4 Easy Steps
If you are going to trade in the Forex market, what you need to do is to get some sort of information on the market and how you are going to trade in it of course. What you need is more than some general information, but what you need to be doing is to find out how you are going to get connected to the market in easy and measured steps.
This editorial will talk a little about how you are going to do this, from the comfort of your own home and without any hassle at all. The first thing you need to do is of course read as much as you can about the Forex market and learn all you can about the ins and outs of the market. So what you can do is sign up for some online courses and basic information on the Forex market, and a good way for you to do this is also to speak to some people who have been trading in the market for some time now. They would be able to give you some good information on how the market works, whether or not you should be trading there in the first place.
The second thing you need to do is to get yourself signed on with a brokerage and what you need to do is to find a reputable one for yourself. All you can do is to research on some of the great brokerages out there and find out which one can suit you for your own needs. Talk to the brokerage of your choice and find out what services they have for you and whether or not they would be able to get you on a market of your choice. The other thing that you need to do is of course to, as best as you can, to actually get yourself onto one of the more reliable demo courses out there.
The great thing about a demo account is that it is able to help you trudge along the market and of course make some insight on how the market works. It is the best way for you to learn because there is almost no risk involved in the first place, because you are not playing around with real money. You are given dummy money but are allowed to trade in live market situations, and you can learn from all the mistakes then and there.
So, these are some of the ways that you can trade currency in just a few easy steps. Of course, the most important thing about this is that you need to hoard as much knowledge as you can on the market and the sort of market situations that are available. This is the way to ensure some measure of success for the market and that you do not end up in the percentile of traders or retail traders who do not make it to be resounding new success in the market.
This editorial will talk a little about how you are going to do this, from the comfort of your own home and without any hassle at all. The first thing you need to do is of course read as much as you can about the Forex market and learn all you can about the ins and outs of the market. So what you can do is sign up for some online courses and basic information on the Forex market, and a good way for you to do this is also to speak to some people who have been trading in the market for some time now. They would be able to give you some good information on how the market works, whether or not you should be trading there in the first place.
The second thing you need to do is to get yourself signed on with a brokerage and what you need to do is to find a reputable one for yourself. All you can do is to research on some of the great brokerages out there and find out which one can suit you for your own needs. Talk to the brokerage of your choice and find out what services they have for you and whether or not they would be able to get you on a market of your choice. The other thing that you need to do is of course to, as best as you can, to actually get yourself onto one of the more reliable demo courses out there.
The great thing about a demo account is that it is able to help you trudge along the market and of course make some insight on how the market works. It is the best way for you to learn because there is almost no risk involved in the first place, because you are not playing around with real money. You are given dummy money but are allowed to trade in live market situations, and you can learn from all the mistakes then and there.
So, these are some of the ways that you can trade currency in just a few easy steps. Of course, the most important thing about this is that you need to hoard as much knowledge as you can on the market and the sort of market situations that are available. This is the way to ensure some measure of success for the market and that you do not end up in the percentile of traders or retail traders who do not make it to be resounding new success in the market.
Thursday, 5 November 2009
What Is Candlesticks Trading?
There are many trading methods out there for you to consider when you are playing in the Forex market and one of them is of course, candlesticks trading, which is a popular method for trading among those that adhere to the Japanese method of looking at prices. One of the best ways to trade is through the price charts that have been generated through this trading method. If you know anything about the Forex market, it is that there are so many ways you can trade in the markets that are the most dynamic and volatile in the world today.
One of the unique things about this method of trading is that it actually provides ways and special cues that you can look at to make price reading and reading the action of the prices all the more easier. In this way, you can actually read the price actions much easier, and you can get an insight into market sentiment with the price actions that are displayed over with the candle sticks chart that you have before you. Of course you need to know that these bar charts are only as useful as your own information on them, so what you need to do is to gain as much knowledge as you can on the whole trading methodology.
Those that use these price actions will be able to predict all sorts of price actions and price trends that you need to know about, even reverse trends that will help you to make some sense of the market. You need to be able to combine with this trading methodology with some good technical analysis, which will augment the entire process and give you the information that you need to make some sense out of the market. Furthermore, you can also know about trade signals and gain a unique insight to how to read the entry and of course, points of exit in the market.
At the end of the day, it is a very visual form of trading which requires you to gain some skill in reading the charts ultimately. The bar charts that you are reading give you a good way to gauge market emotions, and of course you would be able to find specific patterns and ways that you can read into the market. There are many patterns that are available for you to look at and actually make some sense of, so what you need to do is to make sense out of them.
If you need some help on how you are going to trade, then you can look online for some information and of course, speak to traders and brokers who are familiar with this form of trading. This is one of the more significant ways that you can trade in the open market and of course, the best way you can learn this is through a trading course that can give you the option to play around with Japanese candle sticks. Through these trading courses, you'll be able to spot your mistakes regarding candlesticks trading.
One of the unique things about this method of trading is that it actually provides ways and special cues that you can look at to make price reading and reading the action of the prices all the more easier. In this way, you can actually read the price actions much easier, and you can get an insight into market sentiment with the price actions that are displayed over with the candle sticks chart that you have before you. Of course you need to know that these bar charts are only as useful as your own information on them, so what you need to do is to gain as much knowledge as you can on the whole trading methodology.
Those that use these price actions will be able to predict all sorts of price actions and price trends that you need to know about, even reverse trends that will help you to make some sense of the market. You need to be able to combine with this trading methodology with some good technical analysis, which will augment the entire process and give you the information that you need to make some sense out of the market. Furthermore, you can also know about trade signals and gain a unique insight to how to read the entry and of course, points of exit in the market.
At the end of the day, it is a very visual form of trading which requires you to gain some skill in reading the charts ultimately. The bar charts that you are reading give you a good way to gauge market emotions, and of course you would be able to find specific patterns and ways that you can read into the market. There are many patterns that are available for you to look at and actually make some sense of, so what you need to do is to make sense out of them.
If you need some help on how you are going to trade, then you can look online for some information and of course, speak to traders and brokers who are familiar with this form of trading. This is one of the more significant ways that you can trade in the open market and of course, the best way you can learn this is through a trading course that can give you the option to play around with Japanese candle sticks. Through these trading courses, you'll be able to spot your mistakes regarding candlesticks trading.
Wednesday, 4 November 2009
IRAs, Roths, and 401(k)s with Taxed and Untaxed Minimum Required Distributions (MRDs)
IRA and Roth IRAs are two examples of government-regulated retirement savings plans - called qualified plans. Both are generally personal plans you set up at banking-type institutions that you can contribute to and withdraw from yourself. Other examples of qualified plans associated with work are 401(k), 403(b) and their Roth versions- like Roth 401(k).
This article explains which qualified plans have minimum required distributions (MRDs) associated with them and some strategy.
Qualified plans such as 401(k)s, and IRAs were created with specific tax characteristics as an incentive for people to save for their retirement by contributions from their working income.
There are fundamentally two different qualified plan type tax characteristics. I'll call them
* Deductible Contributions then later taxed, and
* Nondeductible Contributions then never taxed
Taxation and Obligations for the owners (i.e. plan contributors) of the plans
The tax characteristics of the 'deductible contributions' type plans are represented by your 401(k) at work or your own IRA. Your yearly contributions to each plan are limited but deductible from your income in the year of contribution. But the income tax of both those contributions and all earnings they create are tax-deferred until you withdraw money from your plan.
Whenever you withdraw from these plans, the withdrawal amount in that year is added to your income to be taxed at your income tax rates. Since qualified plans are geared for retirement, you're penalized with a tax of 10% on your distribution in addition to whatever income tax is incurred if you're under 59 1/2.
Lastly, government-regulations obligate you to make at least a minimum required distribution (MRD) each year from your IRAs after you've turn 70 1/2.
The tax characteristics of the 'non-deductible contributions' type plans are represented by your Roth 401(k) at work, or your own Roth IRA. Your yearly contributions to these plans are limited, but they're not deductible from your income for taxation. So they're taxed. But the advantage now is that they and all their earnings and gains will grow each year tax-free - not just tax-deferred.
Additionally, when you withdraw from these Roth-type plans, the money comes out tax-free. But you must wait to withdraw your money until reach 59 1/2 or be penalized as above.
If you're the owner of a personal Roth IRA, you have no obligation to make any MRDs ever. If you leave your Roth IRA to your spouse, she also has not obligation to make MRDs either.
If you have a Roth 401(k)s, you must make the normal RMDs as those with non-deductible contribution types above, but - like all Roth plans - the money comes out tax free.
What about plan beneficiaries after you die?
All beneficiaries of plans -401(k)s, IRAs, Roth 401(k)s or Roth IRAs - must make MRDs except the spouse beneficiary of a Roth IRA if she chooses to be owner. But remember, RMDs or withdrawals from Roth plans always come out tax free.
How much money must come out in an RMD?
The MRD for a specific year is the value of your IRA (or total of all your IRAs if you have more than one) as of Dec. 31 of the previous year, divided by your life expectancy factor (from IRA table found in Appendix C of IRS publication 590 (online)) for that specific year. So, each year your MRD will change since the value of your IRA will change and your life expectancy will change. A new calculation must be done each year.
You can withdraw more than your MRD, but you're penalized if you withdraw less. You're penalty is a tax equal to 50% of that part of your MRD you didn't withdraw.
Reasons for converting to a Roth IRA Tax free growth and tax free withdrawals forever is hard to pass up. And that's for owners, spouse beneficiaries and nonspouse beneficiaries.
Only the nonspouse beneficiaries need to make RMDs - but they're still tax free ones. And those RMDs are based on the beneficiary life expectancy. So if their young, very little has to be taken out.
It makes good sense to convert any Roth 401(k) to your own Roth IRA for the freedom of not having to make RMDs by the owner or his spousal beneficiary. The conversion is tax free.
Conversion from a 'deductible contributions' plan to your Roth IRA requires you to pay income tax on amount you choose to convert. For 2010 and beyond there's not income limit prohibiting you from making the conversion - as there has been.
Holding money in a Roth IRA keeps it safe from future increases in income tax rates that plague holders of 'deductible contributions' plans.
This article explains which qualified plans have minimum required distributions (MRDs) associated with them and some strategy.
Qualified plans such as 401(k)s, and IRAs were created with specific tax characteristics as an incentive for people to save for their retirement by contributions from their working income.
There are fundamentally two different qualified plan type tax characteristics. I'll call them
* Deductible Contributions then later taxed, and
* Nondeductible Contributions then never taxed
Taxation and Obligations for the owners (i.e. plan contributors) of the plans
The tax characteristics of the 'deductible contributions' type plans are represented by your 401(k) at work or your own IRA. Your yearly contributions to each plan are limited but deductible from your income in the year of contribution. But the income tax of both those contributions and all earnings they create are tax-deferred until you withdraw money from your plan.
Whenever you withdraw from these plans, the withdrawal amount in that year is added to your income to be taxed at your income tax rates. Since qualified plans are geared for retirement, you're penalized with a tax of 10% on your distribution in addition to whatever income tax is incurred if you're under 59 1/2.
Lastly, government-regulations obligate you to make at least a minimum required distribution (MRD) each year from your IRAs after you've turn 70 1/2.
The tax characteristics of the 'non-deductible contributions' type plans are represented by your Roth 401(k) at work, or your own Roth IRA. Your yearly contributions to these plans are limited, but they're not deductible from your income for taxation. So they're taxed. But the advantage now is that they and all their earnings and gains will grow each year tax-free - not just tax-deferred.
Additionally, when you withdraw from these Roth-type plans, the money comes out tax-free. But you must wait to withdraw your money until reach 59 1/2 or be penalized as above.
If you're the owner of a personal Roth IRA, you have no obligation to make any MRDs ever. If you leave your Roth IRA to your spouse, she also has not obligation to make MRDs either.
If you have a Roth 401(k)s, you must make the normal RMDs as those with non-deductible contribution types above, but - like all Roth plans - the money comes out tax free.
What about plan beneficiaries after you die?
All beneficiaries of plans -401(k)s, IRAs, Roth 401(k)s or Roth IRAs - must make MRDs except the spouse beneficiary of a Roth IRA if she chooses to be owner. But remember, RMDs or withdrawals from Roth plans always come out tax free.
How much money must come out in an RMD?
The MRD for a specific year is the value of your IRA (or total of all your IRAs if you have more than one) as of Dec. 31 of the previous year, divided by your life expectancy factor (from IRA table found in Appendix C of IRS publication 590 (online)) for that specific year. So, each year your MRD will change since the value of your IRA will change and your life expectancy will change. A new calculation must be done each year.
You can withdraw more than your MRD, but you're penalized if you withdraw less. You're penalty is a tax equal to 50% of that part of your MRD you didn't withdraw.
Reasons for converting to a Roth IRA Tax free growth and tax free withdrawals forever is hard to pass up. And that's for owners, spouse beneficiaries and nonspouse beneficiaries.
Only the nonspouse beneficiaries need to make RMDs - but they're still tax free ones. And those RMDs are based on the beneficiary life expectancy. So if their young, very little has to be taken out.
It makes good sense to convert any Roth 401(k) to your own Roth IRA for the freedom of not having to make RMDs by the owner or his spousal beneficiary. The conversion is tax free.
Conversion from a 'deductible contributions' plan to your Roth IRA requires you to pay income tax on amount you choose to convert. For 2010 and beyond there's not income limit prohibiting you from making the conversion - as there has been.
Holding money in a Roth IRA keeps it safe from future increases in income tax rates that plague holders of 'deductible contributions' plans.
Tuesday, 3 November 2009
Increasing Your Income
You've got to make money before you spend money. If you think of the kind of financial advice you usually get from financial advisors, you'll probably find that it's pretty much entirely focused on the second half of that sentence: saving and investing money.
That's certainly a legitimate approach, but it's severely limiting. How much can you really save and invest when you're dealing with a limited amount of income? Read on to find out about another approach.
A company's financial situation has two aspects: what comes in and what goes out. Obviously, it's important to keep track of what goes out and make sure you get a fair return on your investment.
But no matter how much you scrimp on expenses, you can only save so much.
So why not look at the other side of the equation--how much comes in? Why not focus on increasing your income? After all, there is really no limit to how much income you could make.
Not that it's necessarily easy, but it's much easier than saving more when there's nothing left to save. That's why I focus on helping my business-owner clients increase their company's income. By increasing the business revenue, more money flows to the household and the net worth increases.
And increasing the business income isn't really rocket science either: think about your own business. Increasing income really comes down to four main functions which are closely connected:
1. Create demand for your products
Improve your marketing functions – get bright ideas on how to create more demand for your services or products. Improve your internet presence, your brochures and company image. Open new lines of communication with your public, such as surveying them to find out what is desired.
2. Promote yourself
Get out there to let people know who you are. Make phone calls, send letters, join referral groups, be active in the community, and get your face known. For the best effects, make sure you're dressing well and smiling. If you do that, people will think, "Hey, I like that person." And we all like doing business with people we like.
3. Sell your products
How well do you close the people who responded to your marketing? You can market all you want, but if you don't close, you aren't going to get paid. Look for ways to improve your sales process: take a course in sales techniques, attend seminars, standardize and drill your sales process with friends to get their feedback.
4. Improve the quality and delivery of your product
You also need to make sure that your products live up to people's expectations. If you don't have good product, you won't survive very long. Look for ways to improve the quality of your product and how efficiently you deliver it to your customers.
All of this may seem outside of what you'd expect from a financial advisor, but if you think about it, it shouldn't be. People come to get advice on how to improve their financial condition, and increasing their income is the most important thing they can do. And if an advisor can help them look at their business and make it grow, that will help them achieve their goals all the more quickly.
That's certainly a legitimate approach, but it's severely limiting. How much can you really save and invest when you're dealing with a limited amount of income? Read on to find out about another approach.
A company's financial situation has two aspects: what comes in and what goes out. Obviously, it's important to keep track of what goes out and make sure you get a fair return on your investment.
But no matter how much you scrimp on expenses, you can only save so much.
So why not look at the other side of the equation--how much comes in? Why not focus on increasing your income? After all, there is really no limit to how much income you could make.
Not that it's necessarily easy, but it's much easier than saving more when there's nothing left to save. That's why I focus on helping my business-owner clients increase their company's income. By increasing the business revenue, more money flows to the household and the net worth increases.
And increasing the business income isn't really rocket science either: think about your own business. Increasing income really comes down to four main functions which are closely connected:
1. Create demand for your products
Improve your marketing functions – get bright ideas on how to create more demand for your services or products. Improve your internet presence, your brochures and company image. Open new lines of communication with your public, such as surveying them to find out what is desired.
2. Promote yourself
Get out there to let people know who you are. Make phone calls, send letters, join referral groups, be active in the community, and get your face known. For the best effects, make sure you're dressing well and smiling. If you do that, people will think, "Hey, I like that person." And we all like doing business with people we like.
3. Sell your products
How well do you close the people who responded to your marketing? You can market all you want, but if you don't close, you aren't going to get paid. Look for ways to improve your sales process: take a course in sales techniques, attend seminars, standardize and drill your sales process with friends to get their feedback.
4. Improve the quality and delivery of your product
You also need to make sure that your products live up to people's expectations. If you don't have good product, you won't survive very long. Look for ways to improve the quality of your product and how efficiently you deliver it to your customers.
All of this may seem outside of what you'd expect from a financial advisor, but if you think about it, it shouldn't be. People come to get advice on how to improve their financial condition, and increasing their income is the most important thing they can do. And if an advisor can help them look at their business and make it grow, that will help them achieve their goals all the more quickly.
Wednesday, 21 October 2009
Tips On Getting Your House Insurance Right By Jason Hulott1
There are many different types of packages when it comes to home insurance and it can be difficult to choose which type of cover and package to go for. Insurance can cover fire, theft and even liability, however there are many exclusions within policies and you should make sure that you read the small print. To help you here are some tips to get you started.
Make sure that you correctly value the contents of your home. If you are going for a new for old policy then make sure that you value your items at the price it would cost you to buy those items now, not how much you paid for them when you bought them.
If you have expensive items such as computer equipment, mountain bikes or family heirlooms then these won’t usually be included in the cover so don’t automatically think that they are, these will have to be added on as extras to your policy.
You can get cheaper insurance by making sure that your home is secure. Installing mortise locks and deadlocks can cut down the cost of your premiums as can installing security lighting around the outside of your home. It is worthwhile checking the small print of your policy because some policies state that these have to be in place and if not then your claim might not be paid.
Make sure that you keep written documentation of the value of the items in your home and whenever you make new purchases add them to the list to keep it up to date. It can be surprising how things mount up if you don’t care and you could soon find you have greatly underestimated the value of your possessions.
When looking to purchase your policy you should always shop around for the best deal. When it comes to buying insurance you can get the cheapest premiums online.
Doing a simple search from one of the popular search engines will reveal hundreds of online insurance companies all competing to give you the best deal.
Resource: http://www.isnare.com/?aid=152301&ca=Finances
Tuesday, 20 October 2009
7 Advantages Of Trading Stock Online By M. Xavier
Online stock trade is an exciting and thrilling way of investing in financial market via internet. One has to be properly well versed with the ups and downs of the stock trading in order to prevent dejections and losses for every time you trade.
Basic Concept Behind Stock Investing
Before getting involved in the stock trading, you should be well versed with its concept as this will help you in achieving success every time you trade. When you purchase a stock, you become a shareholder in the company. Now this invested money by the shareholder or investor will be used up by the company in expanding the business to earn profits.
These profits will be observed in the rising prices of the stock. Now the investors owning the stocks in the company can sell that growing stock in order to make profit as they will get more amount than they invested originally. The same concept is there behind the losses in stock trading that is after investing in stocks of a particular company if the company starts going in loss or the rate of that particular stock begins to decrease, the investors are also in the category of loss.
The stock trading has become very interesting and easy because of the discovery of internet. If you are interested in trading stock online, then create an online account through any online brokerage firm. It is always recommended to select a venerable and renowned brokerage firm so that you should not get into wrong hands.
For example, Ameritrade and ETrade Financial are most renowned in the stock industry. Now, the brokerage firms will create your an online account through the company. By using your account, you can trade stock online by setting financial goals, buying and selling stocks, etc.
Benefits Of Trading Stock Online
The discovery of internet has occupied its own space in the industry of stock market. There are numerous advantages by trading stock online:
1 - The most advantageous aspect of trading online is the immediate access to the account and one can easily be updated with the latest stock information and news of the company in which you have invested or want to invest.
2 - In this method of trading stock online, the charges of the brokers are also minimal which are around $7 to $10 per trade.
3 - There is a proper check over the portfolios by using the accounts opened through brokerage firms in online stock trading.
4 - The other most important benefit of the online trading is that the company permits the investor to chart the profitable stocks and to update the investor with latest news and updates of the stock market.
5 - Online stock investing has helped a lot in saving time and money by enjoying the thrill of trade at your convenience in the ambience of your home.
6 - There is another facility provided by the online brokerage firms to contact the other trained brokers and investment counselors for the guidance if required while trading.
7 - The online stock investors also enjoy liberty to decide the things in their own way. Therefore, it is the right method to invest money with complete freedom
Hence, enjoy the fun of online stock trading by investing liberally.
Resource: http://www.isnare.com/?aid=153000&ca=Finances
Send Money to Mexico Through Myriad Methods
Many banks employ the government program Directo a México to help immigrants send money home as fast and inexpensively as possible. All fees are paid by the sender, not the recipient, and the money can be received as early as the next day. Some banks have their own specialty programs, such as Bank of America, which allows account holders to send money to Mexico for free through Safesend. With Wells Fargo's ExpressSend service, you can send up to $2500, or about 32,500 pesos, for a fee of $5 to $7. The money will be transferred to BBVA Bancomer, Banorte, or HSBC Mexico.
Another way to send money to Mexico is to use a money transfer company. If you go this route, you will simply locate a service, pay a fee of anywhere from $5 to $20, and either transfer to a bank account or provide the name and location where your recipient will pick up the money in Mexico. The fee is usually a percentage of the money you are sending, though some companies charge a flat fee. Your recipient would then need to supply either a password, identification, or both to show that the money is for them, and would not have to pay a fee. Most money transfer companies provide the options of sending money from your bank account, credit card, or from cash, and allow the recipient to choose between getting the money in their account in the form of pesos, or picking it up at a location near them.
If you plan to send money to Mexico often, a prepaid debit card should do the trick. If you go this route, you will simply select a prepaid debit card company, have a card sent to your family, and then add money either online or by phone. Once your relatives in Mexico receive the card, money transfers will be instant. You will usually be charged $5 to $8 no matter how much you send. Each time your family members use the card, they will be charged a small fee, usually a percentage of what they buy. If they want to get money from an ATM using the card, they can expect to pay less than a couple dollars, or about 25 pesos. Checking the balance on the card is free.
You will likely want a way to send money to Mexico that is easy and inexpensive for you, and also instant. You have many options when helping your family out financially from the United States, and most of them are quite convenient since they are available online or by phone. Select based on what you think you and your relatives will need. For example, if your family members do not have a bank account, perhaps sending a prepaid debit card would be easiest. If they live in a small village with no ATMs around, sending a debit card might not be a good idea. Consider such aspects when committing to a money sending method.
Another way to send money to Mexico is to use a money transfer company. If you go this route, you will simply locate a service, pay a fee of anywhere from $5 to $20, and either transfer to a bank account or provide the name and location where your recipient will pick up the money in Mexico. The fee is usually a percentage of the money you are sending, though some companies charge a flat fee. Your recipient would then need to supply either a password, identification, or both to show that the money is for them, and would not have to pay a fee. Most money transfer companies provide the options of sending money from your bank account, credit card, or from cash, and allow the recipient to choose between getting the money in their account in the form of pesos, or picking it up at a location near them.
If you plan to send money to Mexico often, a prepaid debit card should do the trick. If you go this route, you will simply select a prepaid debit card company, have a card sent to your family, and then add money either online or by phone. Once your relatives in Mexico receive the card, money transfers will be instant. You will usually be charged $5 to $8 no matter how much you send. Each time your family members use the card, they will be charged a small fee, usually a percentage of what they buy. If they want to get money from an ATM using the card, they can expect to pay less than a couple dollars, or about 25 pesos. Checking the balance on the card is free.
You will likely want a way to send money to Mexico that is easy and inexpensive for you, and also instant. You have many options when helping your family out financially from the United States, and most of them are quite convenient since they are available online or by phone. Select based on what you think you and your relatives will need. For example, if your family members do not have a bank account, perhaps sending a prepaid debit card would be easiest. If they live in a small village with no ATMs around, sending a debit card might not be a good idea. Consider such aspects when committing to a money sending method.
Thursday, 15 October 2009
Trade Financing - How Trade Finance Can Help your Company Grow
Paying employees, rent and suppliers are the three biggest expenses that most business owners face. If you are a wholesaler / reseller and buy and resell goods, your biggest expense is likely to be supplier payments. On the other hand, if you provide services, your biggest expense is likely to be payroll. Either way, making sure that your suppliers and employees are paid on time is critical. The solution to these challenges is to obtain an infusion of working capital, and that is where trade finance can help you. Trade financing helps ensure that you always have the funds to pay employees and suppliers – and thus – have the resources to grow your company. Do you have clients that take 30 or more days to pay their invoices? Or, if you are a distributor, do you have clients that have placed large orders, depleting your capital resources? There are two trade finance tools that can help you in these instances. The first tool is called factoring financing. The second one is called purchase order financing. Factoring Financing Factoring is an ideal financing tool for companies that can’t afford to wait up to 60 days to get paid by clients. A factoring company can provide you with an advance of up to 85% on your slow paying receivables, providing you with working capital to pay employees and business expenses. Factoring is quick and can provide you with a payment within a day or so after invoicing. Purchase Order Financing PO financing is ideal for companies that resell goods to government or commercial clients. It can provide you with financing you need to deliver on your large orders. Purchase order funding works by providing you with funds to pay suppliers, enabling you to close more and larger sales. The transaction is settled once your customer pays for the goods. Conclusion Companies that need either domestic or import export financing can benefit from factoring and purchase order financing. And as opposed to traditional bank financing, both are relatively easy to obtain and can be set up in a few days.
Accounts Receivable Financing- Think Differently!
Borrowing money is as American as apple pie. Americans borrow money to purchase houses, to finance automobiles, and to pay for luxury items on their credit cards every day. It is a rare individual that can pay all cash for their house, their car, or their credit card bill
every month. The U.S. economy thrives on credit because of the recycling of cash when these purchases occur. America is an economic powerhouse, partly because collectively we borrow so much money to have things today, instead of saving the cash to buy these items some day, if ever, in the future. Economic theorists are of the opinion that when you purchase a house, the cash recycles about seven times: to the realtor, to the title company, to the mortgage broker, to the lender, the butcher, the baker and the candlestick maker, and so forth. We live in the land of opportunity. You do not need a college degree or pedigree to become an entrepreneur. All you need is the ability to organize, manage, and assume the risks of a business with a sufficient amount of cash to fund the business. Borrowing money is the American paradigm for success for individuals and for businesses. According the American Heritage Dictionary, a “paradigm is:1. One that serves as a pattern or model.2. A set or list of all the inflectional forms of a word or of one of its grammatical categories: the paradigm of an irregular verb.3. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline.Usage Note: Paradigm first appeared in English in the 15th century, meaning "an example or pattern," and it still bears this meaning today: Their company is a paradigm of the small high-tech firms that have recently sprung up in this area. For nearly 400 years paradigm has also been applied to the patterns of inflections that are used to sort the verbs, nouns, and other parts of speech of a language into groups that are more easily studied. Since the 1960s, paradigm has been used in science to refer to a theoretical framework, as when Nobel Laureate David Baltimore cited the work of two colleagues that "really established a new paradigm for our understanding of the causation of cancer." Thereafter, researchers in many different fields, including sociology and literary criticism, often saw themselves as working in or trying to break out of paradigms. Applications of the term in other contexts show that it can sometimes be used more loosely to mean "the prevailing view of things." The Usage Panel splits down the middle on these nonscientific uses of paradigm. Fifty-two percent disapprove of the sentence The paradigm governing international competition and competitiveness has shifted dramatically in the last three decades.”For more dictionary information please see: The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2000 by Houghton Mifflin Company.Published by Houghton Mifflin Company. All rights reserved.What does this have to do with accounts receivable financing? Banks exist primarily to loan money to people and businesses, on a safe and sound basis according to federal banking regulations. The banking paradigm for businesses involves offering checking and savings accounts to take money in, and offering various types of business and personal loans to “get the money out”. Their goal is to make a profit on your cash for the bank. To qualify for these loans you have to prove, to the bank’s satisfaction, that you have the clear and present ability to repay these loans. If you are a startup company, a company that is growing very rapidly, or an established company that is affected by a sudden negative event, the banking paradigm may not work for you. Perhaps, you need to think differently; perhaps your perspective is “inside the banking paradigm box” and you need an alternative. What is inside the box thinking? According to 'Thinking Outside the Box'? By Ed Bernacki Published April 2002:“Thinking inside the box means accepting the status quo. For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented." That was in 1899: clearly he was in the box! In-the-box thinkers find it difficult to recognize the quality of an idea. An idea is an idea. A solution is a solution. In fact, they can be quite pigheaded when it comes to valuing an idea. They rarely invest time to turn a mediocre solution into a great solution.” Mr. Bernacki distinguishes “inside the box” thinking vs. “thinking outside the box” as follows: “Outside the BoxThinking outside the box requires different attributes that include: • Willingness to take new perspectives to day-to-day work. • Openness to do different things and to do things differently. • Focusing on the value of finding new ideas and acting on them. • Striving to create value in new ways. • Listening to others. • Supporting and respecting others when they come up with new ideas. Out-of-the box thinking requires openness to new ways of seeing the world and a willingness to explore. Out-of-the box thinkers know that new ideas need nurturing and support. They also know that having an idea is good but acting on it is more important. Results are what count.”If your B2B business does not have enough bank credit to expand at the rate you need, or if your B2B business cannot take advantage of growth opportunities because of lack of funds, you may need to think differently: think outside the box. Think of using the virtually unlimited financing that is available from accounts receivable financing. To think differently, you may need to overcome the two most common “inside the box” concerns regarding accounts receivable financing.Objection: “Our customers will not want do business with our company if they know we are dealing with a commercial financing company to finance our accounts receivable”.Think Differently: Accounts receivable financing allows you to offer credit terms, like the bank. Many businesses prefer to resell your products or services and earn a profit before they have to pay you for your product or service. Accounts receivable financing generally involves notification to your customers of the arrangement to “manage” your receivables; and verification from your customers that your product or services were “satisfactory”. From your customer’s point of view, someone in their account’s payable department is changing the “pay to” portion of their check to the address of a commercial finance company. Usually the check is cut payable to you and sent to a P.O. Box of the commercial finance company. In certain situations, notification may not be required at all; this is called non-notification factoring.Objection: “Accounts receivable financing is too costly”.Think Differently: Accounts receivable financing is a paradigm for success; you will have the necessary working capital you need to fulfill larger orders by accelerating your cash flow. You will need a gross margin of 20% or more, in general, for this type of financing to make economic sense. There is an inverse relationship between the cost of financing and the size of your credit facility: the larger the credit facility, the lower the cost. In other words, the fees and rates will be less for $500,000 per month than for $25,000 per month.The bottom line: Accounts Receivable Financing- Think Differently! is intended to help you think “outside the box” and become more profitable. One tried and true paradigm for achieving this result as an entrepreneur with a B2B business is accounts receivable financing. Copyright © 2007 Gregg Financial Serviceswww.greggfinancialservices.com
every month. The U.S. economy thrives on credit because of the recycling of cash when these purchases occur. America is an economic powerhouse, partly because collectively we borrow so much money to have things today, instead of saving the cash to buy these items some day, if ever, in the future. Economic theorists are of the opinion that when you purchase a house, the cash recycles about seven times: to the realtor, to the title company, to the mortgage broker, to the lender, the butcher, the baker and the candlestick maker, and so forth. We live in the land of opportunity. You do not need a college degree or pedigree to become an entrepreneur. All you need is the ability to organize, manage, and assume the risks of a business with a sufficient amount of cash to fund the business. Borrowing money is the American paradigm for success for individuals and for businesses. According the American Heritage Dictionary, a “paradigm is:1. One that serves as a pattern or model.2. A set or list of all the inflectional forms of a word or of one of its grammatical categories: the paradigm of an irregular verb.3. A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an intellectual discipline.Usage Note: Paradigm first appeared in English in the 15th century, meaning "an example or pattern," and it still bears this meaning today: Their company is a paradigm of the small high-tech firms that have recently sprung up in this area. For nearly 400 years paradigm has also been applied to the patterns of inflections that are used to sort the verbs, nouns, and other parts of speech of a language into groups that are more easily studied. Since the 1960s, paradigm has been used in science to refer to a theoretical framework, as when Nobel Laureate David Baltimore cited the work of two colleagues that "really established a new paradigm for our understanding of the causation of cancer." Thereafter, researchers in many different fields, including sociology and literary criticism, often saw themselves as working in or trying to break out of paradigms. Applications of the term in other contexts show that it can sometimes be used more loosely to mean "the prevailing view of things." The Usage Panel splits down the middle on these nonscientific uses of paradigm. Fifty-two percent disapprove of the sentence The paradigm governing international competition and competitiveness has shifted dramatically in the last three decades.”For more dictionary information please see: The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2000 by Houghton Mifflin Company.Published by Houghton Mifflin Company. All rights reserved.What does this have to do with accounts receivable financing? Banks exist primarily to loan money to people and businesses, on a safe and sound basis according to federal banking regulations. The banking paradigm for businesses involves offering checking and savings accounts to take money in, and offering various types of business and personal loans to “get the money out”. Their goal is to make a profit on your cash for the bank. To qualify for these loans you have to prove, to the bank’s satisfaction, that you have the clear and present ability to repay these loans. If you are a startup company, a company that is growing very rapidly, or an established company that is affected by a sudden negative event, the banking paradigm may not work for you. Perhaps, you need to think differently; perhaps your perspective is “inside the banking paradigm box” and you need an alternative. What is inside the box thinking? According to 'Thinking Outside the Box'? By Ed Bernacki Published April 2002:“Thinking inside the box means accepting the status quo. For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented." That was in 1899: clearly he was in the box! In-the-box thinkers find it difficult to recognize the quality of an idea. An idea is an idea. A solution is a solution. In fact, they can be quite pigheaded when it comes to valuing an idea. They rarely invest time to turn a mediocre solution into a great solution.” Mr. Bernacki distinguishes “inside the box” thinking vs. “thinking outside the box” as follows: “Outside the BoxThinking outside the box requires different attributes that include: • Willingness to take new perspectives to day-to-day work. • Openness to do different things and to do things differently. • Focusing on the value of finding new ideas and acting on them. • Striving to create value in new ways. • Listening to others. • Supporting and respecting others when they come up with new ideas. Out-of-the box thinking requires openness to new ways of seeing the world and a willingness to explore. Out-of-the box thinkers know that new ideas need nurturing and support. They also know that having an idea is good but acting on it is more important. Results are what count.”If your B2B business does not have enough bank credit to expand at the rate you need, or if your B2B business cannot take advantage of growth opportunities because of lack of funds, you may need to think differently: think outside the box. Think of using the virtually unlimited financing that is available from accounts receivable financing. To think differently, you may need to overcome the two most common “inside the box” concerns regarding accounts receivable financing.Objection: “Our customers will not want do business with our company if they know we are dealing with a commercial financing company to finance our accounts receivable”.Think Differently: Accounts receivable financing allows you to offer credit terms, like the bank. Many businesses prefer to resell your products or services and earn a profit before they have to pay you for your product or service. Accounts receivable financing generally involves notification to your customers of the arrangement to “manage” your receivables; and verification from your customers that your product or services were “satisfactory”. From your customer’s point of view, someone in their account’s payable department is changing the “pay to” portion of their check to the address of a commercial finance company. Usually the check is cut payable to you and sent to a P.O. Box of the commercial finance company. In certain situations, notification may not be required at all; this is called non-notification factoring.Objection: “Accounts receivable financing is too costly”.Think Differently: Accounts receivable financing is a paradigm for success; you will have the necessary working capital you need to fulfill larger orders by accelerating your cash flow. You will need a gross margin of 20% or more, in general, for this type of financing to make economic sense. There is an inverse relationship between the cost of financing and the size of your credit facility: the larger the credit facility, the lower the cost. In other words, the fees and rates will be less for $500,000 per month than for $25,000 per month.The bottom line: Accounts Receivable Financing- Think Differently! is intended to help you think “outside the box” and become more profitable. One tried and true paradigm for achieving this result as an entrepreneur with a B2B business is accounts receivable financing. Copyright © 2007 Gregg Financial Serviceswww.greggfinancialservices.com
Accounts Receivable Financing- Hot
The word “hot” has over forty different meanings, according to the Merriam-Webster Online Dictionary. As used in this article, the word “hot” is used to mean:“6 a : of intense and immediate interest b : unusually lucky or favorable c : temporarily capable of unusual performance (as in a sport) d : currently popular or in demand e : very good ”. The words eager, zealous and fresh are second place synonyms for the hot idea of accounts receivable financing.When a B2B business suddenly needs financing fast, it is hot. It is hot because it is on fire with potential business: money is needed to power this growth.According to the Wikipedia, “"Money (That's What I Want)" was a 1959 hit single by Barrett Strong for the Tamla label, distributed by Anna Records. The song was written by Tamla founder Berry Gordy. It became the first hit record for Gordy's Motown flagship label.” The song was hot. It has been recorded by over twenty different artists; it reached number 23 on the Rhythm and Blues Charts. The lyrics to “Money (That’s What I Want)”, as recorded by the Beatles, go like this:“ The best things in life are freeBut you can keep 'em for the birds and beesNow give me money (that's what I want)That's what I want (that's what I want)That's what I want (that's what I want), yeahThat's what I wantYour lovin' gives me a thrillBut your lovin' don't pay my billsNow give me money (that's what I want)That's what I want (that's what I want)That's what I want (that's what I want), yeahThat's what I wantMoney don't get everything, it's trueWhat it don't get, I can't useNow give me money (that's what I want)That's what I want (that's what I want)That's what I want (that's what I want), yeahThat's what I want…”The Beatles were hot. It is an interesting fact that it took the Beatles many years to personally make substantial money even though they were the hottest band on the planet. For years they sold more records than any other group, but the profits did not find their way into the individual Beatle bank accounts. When in the course of a B2B business’ development does the business get “hot”? Here are a few examples:1) A video game developer labored for years to create novel technology and interesting new types of multi-player games for the internet. They were almost put out of business one year when a burglar broke into their office and stole all of their computers and office equipment. A major corporation in the video game business offered them a contract to develop a new game; substantial progress payments were offered for meeting the contract milestones; the challenge was to meet a very tight production schedule. All of a sudden, the business was hot; they needed to hire thirty new game developers. How could they meet the increased payroll requirements and accomplish the goals in the contract?2) A small distributor of novelty products from Australia established a California corporation to sell their products throughout the United States. They introduced their product to many major department stores. After of several years of marketing they landed several new contracts for five times their previous year’s sales. All of a sudden, the business was hot. How could they pay for the product and provide the items to the department stores?3) A manufacturer of products for the military struggled to survive for five years. They invented a terrific product. Unfortunately, they were involved in patent litigation and other disputes that burdened them with substantial attorney’s fees. After years of struggling, the disputes were settled and the attorney’s were paid. The manufacturer was “cash poor”. They negotiated an order for their products that was several times their previous year’s sales. All of a sudden, they were hot. How could they manage their cash flow to take advantage of the new opportunities? If these businesses could sing, “Money (That’s What I Want)” could be their anthem. Accounts Receivable Financing may be the answer to their universal cash flow issues and requirements for substantial growth. Time is of the essence because these businesses, all of a sudden, are hot. In five to ten working days, or less, accounts receivable financing may be obtained to make these businesses ready for prime time. The process is relatively simple. The business completes an application for financing. They give the appropriate accounting information and details regarding their customers to the finance entity. The finance entity conducts a due diligence review regarding their financial condition, and the strength of their customers. If there are no issues, a process is started whereby the businesses deliver their products or services to their customers and the finance entity advances 80% to 90% of the contract amounts. When their customer pays the finance entity it pays itself back the funds that have been advanced, deducts the agreed upon fees, and the business receives the difference. This accelerates their cash flow. It eliminates the wait of thirty to ninety days to receive payment from their customers.Sometimes there are other complicating issues such as tax problems, UCC-1 lien priority matters, subordination of pre-existing financing, the need for purchase order financing to pay for costs of production, or letters of credit to guarantee international trade- all in addition to accounts receivable financing to make financing a hot business work correctly. Often these issues will be overcome successfully.The bottom line: if your business is ready for prime time and your sales are hot, if you feel like singing “Money (That’s What I Want)” like the Beatles, Accounts Receivable financing may be the cash flow solution for your business’s success. Copyright ©2007 Gregg Financial Serviceswww.greggfinancialservices.com
Monday, 7 September 2009
Prepaid Credit Cards - The Facts By Stuart Laing
The idea of a prepaid credit card has been around for a number of years, but it's only now, with the level of personal debt soaring, that it has really started to take off.
But what is a prepaid credit card? How does it work? And most importantly, can it help you avoid getting any deeper into debt?
The Basic Idea
If you're familiar with the idea of a prepaid phone card or a prepaid gift card, the idea won't be new to you. It's basically just a credit card without the credit. You load money into your card account and can then spend it using your plastic card as you would with a normal credit card.
These prepaid credit cards are accepted by hundreds of thousands of retailers and online merchants.
Dozens of financial institutions offer prepaid accounts backed by either Visa and Mastercard so they can be used globally. In fact, anyone who accepts credit cards will be able to accept your prepaid card.
And the uses are almost endless;
Top up your cell phone
Pay your bills
Buy groceries and petrol
Shop online
Book flights, hotels, tickets
Hire cars
Transfer money to family and friends
You can even withdraw cash from your account at millions of ATMs all around the globe
And once you've spent the money in your account, you can 'recharge' it with more money.
The Benefits
The main benefit is that these cards are extremely flexible. You can load money onto your account using cash, bank transfer, or even using another credit card (but that's probably best avoided if you want to avoid debt).
And because most prepaid cards are backed by Visa or Mastercard, you can use them anywhere in the world as you would with a traditional credit card. In fact, the use of these cards is so similar to credit cards that they're usually called prepaid credit cards, despite the fact that credit is not involved.
The only difference is that you have to fill up your account with your own money before you use your prepaid card, which brings us to the other main benefit. It's impossible to get into debt using one of these cards, because if you don't have any money in your card account, it won't be accepted.
That gives you more control over your spending. It allows you to set a budget and put that amount in your account. There's no risk of overspending on one of these cards, which is a major advantage if you're trying to escape debt or are worried about getting into debt. And as with credit cards, you'll receive a regular breakdown of your spending on the card, which is great for keeping track of your spending.
And because you're not advanced any credit, there's no interest to pay and no credit checks to get one of these accounts. That means everybody is eligible to get a prepaid card, even if you have a bad credit record.
Other benefits include;
Travel: These cards have the same travel benefits as normal credit cards. They're accepted worldwide, especially those backed by Visa and Mastercard. You can withdraw cash from millions of ATMs across the globe. If you select the right prepaid card, you'll also be able to take advantage of foreign exchange services without paying fees. And if you lose your card, just contact your provider and they'll provide you with a new one.
Safety: If you use your card to make a purchase (by phone, internet or in person) and it is used fraudulently, the provider of your card will cover the loss just like a traditional credit card. These cards are also safer than carrying cash, which brings us to the final prepaid benefit.
Children: Prepaid cards are the perfect way to provide your children with a safe way to have access to money that you can control. Many prepaid cards are open to people of all ages, although as with traditional credit cards, some companies restrict the use of their prepaid card to people aged 18 and over.
As for the debate over whether it's a good idea for children to be allowed a prepaid card, some people argue that it will make children more financially aware from an earlier age. They claim it will teach them to understand the value of money and develop better money management skills as they grow up. It will allow them to budget without the risk of getting into debt.
Other people claim that it will encourage them to develop reckless spending habits, especially if their parents keep topping up the account. If parents are too generous, their children could get used to the pot that never runs dry, and get into serious debt when they eventually get their own credit cards.
Ultimately, it's a decision that all parents will have to make for themselves, but if used responsibly, the benefits of prepaid credit cards heavily outnumber the disadvantages, for all users.
Resource: http://www.isnare.com/?aid=133058&ca=Finances
Find the Best Bad Credit Second Mortgage By Brad Stroh
Nobody ever intends to end up with bad credit. When you decide to consolidate your credit card debt and student loans or make home improvements and realize your credit is not what you had hoped, it can be a big blow. The good news is that you still have options. A secured loan or a loan secured against some kind of collateral is easier to obtain for people with bad credit than an unsecured loan. However, remember that a loan secured against your home means that the lender takes your property if you cannot make your payments, so be sure that you need and not just want that loan.
Types of Bad Credit Second Mortgages
Just like a second mortgage for people with good credit, you have two choices:
* Home equity loan
* Home equity line of credit
Both loans are determined based on the amount of equity that you have built up on your home -- the amount that you still owe on your mortgage subtracted from the total value of your home. When people think of a second mortgage, they are usually thinking of a home equity loan, in which the borrower receives in a lump sum, usually at a fixed interest rate. A home equity line of credit or HELOC can be used more like a credit card, with the borrower able to withdraw smaller amounts over time. With a home equity line of credit, your payments against your balance open up your credit reserves for you to borrow against again.
Home Equity Loan Pros
Obtaining a second mortgage can be a wise choice even for people with bad credit if you can also use your loan to improve your credit score.
* Making your payments on time and in full on your mortgage can be one of the best ways to improve your credit score.
* Using your second mortgage to consolidate debt can be very wise. When consolidating debt be sure that you are paying off debt with higher interest rates than the rates on your second mortgage.
* Using your second mortgage to pay for education can help you to obtain a higher paying job that will make it easier for you to meet all of your obligations in general. However, if going to school means taking time off of work, you will want to be sure that you will be able to make all of you payments on your first mortgage and second mortgage or you may risk losing your home.
* Using your second mortgage to pay for home improvements can raise the value of your home. If you are making the improvement because you are interested in selling, be sure to request the loan before you put your home on the market or it will be very difficult for you to obtain a second mortgage.
* Keeping your good interest rate on your first mortgage can be a good reason to get a second mortgage as opposed to refinancing your first mortgage with cash out. You may end up with a high interest second mortgage, but in the end, you will be saving money.
Home Equity Loan Cons
You always want to do your research when you take out a loan. Be sure to consider these cons before you put your home on the line.
* If you are already struggling to make your current mortgage payment, adding another monthly responsibility may damage your credit further and cost you your home.
* You may be able to get a better interest rate refinancing your current mortgage that you are able to on a second mortgage. First mortgage rates are usually lower than those on second mortgages and if you can get a lower interest than you currently have, a cash-out refinance may be a better option for you. Be sure to shop around before you make your final decision.
* Lenders may try to take advantage of your poor credit history in order to take your home. Make sure that you understand all of the terms of your second mortgage loan. Balloon payments, which require you to pay the full balance at the end of the term or the fluctuating rate of a HELOC, may put your home in jeopardy if you are unable to make your payment to your lender.
Even with bad credit, you can get a second mortgage, but be sure to investigate all of your options before you sign on the dotted line. For more articles on Bad Credit Second Mortgage, visit Bills . Com
Resource: http://www.isnare.com/?aid=399155&ca=Finances
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