“I pay for everything in cash, I never finance anything” or “I’ve never had to take out a loan, I don’t believe in it”. Every so often, I encounter this type of feedback from a business owner. The attitude usually goes along with a strong, hands-on work ethic for an owner which has built their business from the ground up. They have worked long hours, suffered through the ups and downs and sacrificed family time and vacations to make their business survive. Their belief is, if they cannot pay for something with cash then they do not need it.
I respect the energy and devotion but I also take note that the strategy seems to apply to small, family owned businesses with a small number of employees which have remained flat in their growth and have stopped expanding years ago. Expansion and reaching new markets are not typically part of their business plan and they are happy with a fixed income often servicing the same clientele they have for years.
The downside of never financing anything is the limited amount of expansion which can occur. In essence, they cannot grow beyond what is in their bank account at any moment in time. For example, a small business with $100,000 of capital desires to purchase a new $40,000 machine which will speed up production or bring them into a new market or simply replace an old machine; if they decide to pay cash that will leave them with $60,000 in cash reserves. If they encounter an emergency which requires $30,000 then that will leave them with little cash cushion in their account. They have also limited themselves in the case if another opportunity should surface at the same time they would not be able to take advantage of it like paying early for inventory to get a good discount.
The other negative of never borrowing is that your business will not have any established comparable credit so in the case when you do decide to finance anything, the likelihood of getting approved is marginal. A lender will not be able to assess your ability to pay back debt since you have never had any. Some business owners feel it should be viewed positively that you have never had to borrow but in the finance world it is not a positive. No credit history equals no loan.
The mantra in financing is ‘it is easier to finance equipment than it is money’ which is primarily true. Yes, you can get low cost capital from your bank if you have an established credit line but that line will have a limit. It is not a good move to use your credit line to finance an asset or equipment because that line should be used as either a last emergency resort or for short term borrowing. Finance rates are now in the 4-6% which can be stretched out to 5 years and sometimes longer. Many times, when expanding in a careful and planned manner, the finance payment will be less than the added revenue of your new equipment. This is true of energy and cost efficient industrial machines, solar systems and LED lighting.
Financing equipment for your business offers you the opportunity to expand, create more profit and reach new markets and clients. For those that want to know the benefits of never financing anything it is this; you will never owe anybody anything, no monthly payments, no interest and no chance of borrowing more than you can pay back but in that perceived safety there is also some risk and missed opportunity.
There was a time, not too many years ago, when relationship articles were the hot topic. They still are, but they’re not the hottest topic anymore. In its place is now money and security.
One of my publishers, whose opinions I greatly respect, was talking to me about the kinds of articles that most people are reading these days and we thought that with people so concerned about wanting to meet and marry their soul mate, that they were the articles most people gravitate toward. We were wrong.
I was looking over the stats of the articles that I’ve written over the last four years (over 900 articles) and what I discovered is that relationships, which used to be the prime focus of people, has been steadily losing ground to articles about money.
People are now more concerned about financial security than meeting their soul mate. There is more of a here today, gone tomorrow, way of looking at their lives. And business articles, which used to be a big drawing card, don’t seem to have the same impact that they used to.
Today’s hot topics center around getting money for nothing. People have always been attracted to articles about getting a lot of money without having to work for it, but lately, it’s been almost a mania, as evidenced by all the people who set up gofundme websites. This concept is now called crowdsourcing. I call it panhandling or standing there with a begging bowl in your hands asking strangers for money.
I had heard a story about a lazy, spoiled, twenty-one-year-old girl, who is in excellent health, setting up a gofundme website asking people to donate money so that she can go to Japan on a two-week vacation. The hands out, begging bowl concept, annoyed me so much that I wrote an article about it. And, wouldn’t you know it, but the number of people who read that one article climbed much higher and much faster than most of my other articles.
People take a look at Bill Gates and Warren Buffett and all they can see is the billions of dollars they have and they want to have what those two men have. They don’t see all the hard work that went into accumulating that wealth, nor do they see the kind of hard work they do to sustain their wealth. They just see a lot of money and they think they are entitled to the same riches.
Sad to say, but we’re living in a lazy, selfish, society these days and we’ve lost our moral compass along the way. We need to get back to the things that are really important before our whole society comes crumbling down around us.
There are literally hundreds of article and books devoted on budgeting money carefully. I will write on two methods that help me budget money carefully in hopes that others may be able to use this knowledge to help them in their future endeavors.
Method #1: If You Use A Credit Card, Always Check Your Statement Online At Least Once A Week
Most Americans probably own and use a credit card whenever they make purchases, either because it’s convenient and/or because they can get reward points for it. Most Americans are probably aware of the countless stories and articles about credit card debt. However, most credit card debt could be avoided if one pays attention every week to their credit card statements every week.
Whenever I look at my credit card statement every week, I can see how much my balance is as well as what I am spending my money on. When you take a look at what you are spending money on, you can see what expenses you are acquiring that are not always necessary such as eating out or buying things you might not need. It is always important to keep track of your purchases so you can understand where your money is going and if you are making purchases that you can try and trim down a little. The main takeaway from this method is always be aware of how much you are spending.
Method #2: Always Be Aware Of How Much Money Is In Your Bank Account
Most banks will allow you to see your statement online. This is very useful as it allows you to access how much money you have in your account at all times. You should always be aware of how much money you have so that you know how much you can spend. Financial problems often occur when people spend money and are not aware of how much they are spending and how much money they actually have to spend. The main takeaway from this method is always be aware of how much you have available to spend.
It is quite normal for the people to buy the cars on finance. The cars price is not paid upfront in full in the normal practice. People take recourse to the financing options available to them so that they are not troubled to take the so much money out from their pockets in one go. Rather, they opt for taking a car loan and paying monthly instalments to the finance companies. This car finance arrangement is beneficial for the car makers, car users and even the finance companies. Car makers have more sales, car users fulfil their aspirations and the finance companies act as a crucial bridge between the supplier and end-consumer earning commissions.
If you are looking to have a car of your own choice, you can fulfil your wish without hurting your pocket or making out-of-turn expenses. The car finance companies have different models of working. You can select the one which suits you the best-for personal use cars or for business cars. Here are some of the common models of engagement:
1. Car Lease: In this model, the financer will purchase the car and hold the title to it. It will give the car to the customer for a monthly lease. When the residual life of the car is over, it can be sold at an auction. If the price received at auction is less than the one determined by the official regulator, then the customer shall make good the loss to the finance company. The rationale behind this is simple, that the financer did not want the car for his own use and was a way to facilitate the customer to drive in his sown car. So, there is no reason for him to sustain losses.
2. Hire Purchase arrangement: In hire purchase arrangement, the title of the car is drawn in customer’s name only after he has paid the full amount of instalments and all the instalments. The car finance company holds the ownership or title in this case as well but the open of auction is not open.
3. Chattel Mortgage: In this model of car loan arrangement, the financer does not hold the title to the car. Rather, it is the customer who has the ownership of the car with him from the very beginning. The finance companies do, however, have a charge on the asset because they have provided the loan to the customer for purchasing the car.
4. Packaging the car with the salary of the employee: Many companies have this arrangement called the Novated Car lease arrangement. In this, the employee chooses the car and the employer pays for the car instalment from the salary account of the employee. If the employee leaves, the car and its obligations go with the employee and are passed on the next employer, if he or she so desires.
Due to the different natures of these arrangements, it is important that the customer inquires about the incidence of taxation (sales tax, income tax, etc) and the quantum of the same before opting for any one of these car finance options.
Car insurance is an unavoidable expenditure that most people detest. The initial steps in getting car insurance at a good price often be extremely annoying, most people stop paying the premium after a certain period of time because of the high costs involved. Many people consider car insurance to be a fixed cost, but it is not. You will be surprised to know that the cost of car insurance can be lowered easily. Here are a few clever tricks that can help you to decrease your car insurance rates:-
Review regularly: It is very important to review your policy regularly on an annual basis. This will ensure that you get the best rates and additional discounts if available. It is best not to depend on your insurance agents as they will not review the policy unless they are asked to.
Online research: Don’t stick to one company or insurance agents. You can do your own research online and find out the best deals. There are plenty of comparison sites that compare various policies online. By choosing to buy car insurance online you can get a clearer idea on the rates you should be paying and also give you more leverage to negotiate the price.
Combine Policies: By bundling different insurance policies you can take advantage of discounts from multiple policies. Furthermore, it man make your life simpler by providing you with one point of contact for all your insurance queries.
Maintain a clean record: This is one of the easiest ways to pay less for insurance. If you have no previous records of accidents and traffic rule violations, you can use your clean record as a bargaining tool to obtain cheaper car insurance. Additionally, many insurance companies also give bonuses and credits for every additional year of safe driving.
Plan ahead: Most people become distracted by the exteriors and looks of the car irrespective of the cost. However people fail to realise that the shiny expensive car they bought is going to drain more money from their pocket in the form of insurance. A cheaper car will get you cheaper insurance.
When it comes to saving on auto insurance, it’s all about knowledge and research. Many car insurance companies offers discounts and deals through which you might be able to get cash back. Try to ensure you fill in every section of the form you can to give the comparison services a better chance of finding the best deal.
If such circumstances have made your life bitter then you require 6 Month Loans, a cash alternative works quickly to ease you, so that you can defeat your financial burden. What you would not like to …
If such circumstances have made your life bitter then you require 6 Month Loans, a cash alternative works quickly to ease you, so that you can defeat your financial burden. What you would not like to face during your cash urgency is further delay in getting the funds on credit.
There are many cash arrangements available in Canadian finance market. Your choice can also be any traditional fiscal assistance. But do not forget that conventional fiscal source never helps you within few hours or a day. Its time consuming procedure proves it a meaningless option for you. On the contrary half year loan is an arrangement which comprises all the simple dealing methods. This is why the popularity of this credit assistance has attained new heights.
What are the benefits this fiscal option has?
Its application procedure does not get your precious time at all. All you have to do is to spend only five minutes.
You do not have to drive your car to reach the office of money lending firm towards depositing your application form.
You can simply complete the sign up formality without going anywhere. Everything is available on the click of your mouse. So, search any credible website ant fill an application.
You are not restricted when it comes to submit the form on Sunday. It is an online registration formality which can be fulfilled on any day.
You find that your application gets registered quickly and easily. Reply from money lending company also comes without any delay.
Financer approaches you with his offer. The loan amount you are offered by lender ranges from 100 to 1500 dollars. It does not prove a heavy dealing for your pockets as lender charges minimal rate of interest.
If you accept his offer, he approves your loan and transfers the cash in to your bank account. It all happens in the time of less than a day only. SoFree Reprint Articles, you get the right solution of your cash shortage within minimal time.
You get the money to be used by anyhow.
Money lender cannot become an authority to decide that how you have to use the sanctioned money. You can spend your 6 Month Payday Loans according to your wishes. You are free to clear your various bills and payment of credit card. This cash help can also comfort you during the purchase of any electronic accessory or scenery.
Are you searching a call centre for setting appointments for insurance agent leads? The first thing you need to look for is the experience. You need to search for a call centre with considerable experience in outbound lead generation. There are two processes of telemarketing – outbound and inbound. Out of these outbound seemingly is most difficult. Insurance appointments setting is an outbound process. It needs a specific call centre equipped with hundreds of callers handling thousands of calls per month and a database management team. It also requires a human resources department who needs to keep a flow of the qualified telemarketers and also train them.
Telemarketed insurance appointment setting is not a new process, as the telephone is being used for a long span of time as a main direct marketing tool. A telemarketer devotes around eight to ten minutes on the phone with a potential prospect that they are not only interested in your product, but they qualify too. The telemarketer sets an appointment for you to call back or meet with the prospect at their place after confirming the interest and criteria.
There is no competition between telemarketing and other forms of lead generation. Almost leads are created online from banner ads and affiliate websites and this a bit problematic. These leads are resold to several agents and are not pre-screened, unlike insurance appointment setting. One more form of insurance agent lead generation is Mailers. These leads only result in a deal. Most people just throw away the mail. Phone book advertisement is also a form of insurance agent lead generation. Yes, it seems unbelievable, but some people still pop into their phone book in search of businesses. Phone book advertisement generates a good lead, but it is as affordable as a telemarketing campaign, which will optimize the quality of the lead. With these forms of lead generation you don’t get enough online submission, nor you get enough responses to your phone book advertisement. But with telemarketing you choose your own criteria to match the ideal prospect and all the other leads are separated out so you only have to pay for qualified leads.
Another advantage of telemarketing is insurance appointment setting. Search for a company that can set appointments for your insurance agents guaranteeing each appointment. This way you only have to pay according to the appointment and not according to the lead. While ordering insurance appointment setting you will have to look at the services that guarantees maximum contacts, voice recording of all generated leads, filtered criteria and also guarantees responsiveness. Find out about the lead management software to present and track the campaign. Check out the past insurance appointment setting experience.
Would like to add here, there are various online businesses focusing on telemarketers insurance live transfers lead. These leads are efficient for many reasons. Click on the link to know more about live transfer leads.
Availing of debt consolidation loans in Australia is easy with many financial institutions including banks offering such loans for needy individuals. However, the rate of interest levied on such loans varies according to the credit rating of the individual. The lower the credit rating the higher is the rate of interest levied and vice versa. Needless to say that most people considering such loans usually have a low credit rating due to their high outstandings and are therefore only eligible for loans at a higher rate of interest. The new loan, thus, adds to the financial burden of the debtor. Most people are thus wary of such loans and prefer to explore other options including mortgaging of property which is extremely risky.
How to Manage Debt through Loan Consolidation and Restructuring
A much better option is to approach one of the numerous debt management agencies who can help consolidate and restructure the existing loans. They also help in regaining control of finances by identifying repayment goals and drawing up a plan to achieve these goals systematically. There are numerous private as well as government agencies that negotiate loans at feasible rates of interest as well as repayment tenures. Thus by availing Debt Consolidation Loans in Australia through debt management companies individuals with multiple loans and low credit ratings can easily get lower rate of interest on the loan. This advantage is unfortunately often lost in the case of individuals who prefer to manage debt on their own.
Managing Multiple Debt Repayments with Debt Consolidation
Debt consolidation help is an ideal solution when one is struggling with managing multiple debt repayments and all the associated administration and organization that go with it. However it is best to understand the implications of loan consolidation before proceeding with this method of debt management. Debt consolidation merely transfers debts from multiple loans to a single debtor. In some cases the loans being transferred may be from different loans like credit card, personal loan, home loan, etc. some common practices involved in loan consolidation are credit card balance transfer (wherein a higher interest debt is moved to a lower interest card, personal loan consolidation (this helps reduce interest paid and settle debts at the earliest) and student loan consolidation.
Managing Spiraling Debt with Financial Discipline
A disciplined approach is required to overcome the problems associated with spiraling debt. Government as well as private agencies in Australia are providing debt consolidation help for persons facing spiraling debt and related issues. These agencies chart out a customized plan for debt consolidation based on individual details like disposable income while also providing advice on ways to cut expenses. This two pronged approach along with constant monitoring helps debtors regain financial freedom in a systematic manner. While credit score will not improve immediately, debt consolidation will help you reduce and effectively manage debt over a period of time. A debt consolidation loan gives you the simplicity of tracking a single bill as well as lower payouts towards loan repayment.