Make Loans Your Assets Not Liabilities

• Nittany Grace
• June 16, 2019
• Funding & Loans

It is the typical mentality of the people that they always find ways to make life easy which is why the banking system always exists. Loans are generally most suitable for paying to buy assets like motor vehicles and car, business startup and to pay off debts. But what is a loan?

Everything You Need To Know About Loans

In terms of finance, loans can be defined as the lending of money by one or more individuals, public or private sector, organizations and many more in the form of money, property or other material goods.

This is done usually in the form of written or verbal agreement with a temporary transfer of property or asset as collateral from the owner to the borrower who promises to return back the property once the loan is repaid.

When you are in need of money, you can take up a loan to meet your financial needs. However, you need to have a better understanding of the various types of loans to determine which loan can be a suitable option for your requirements.

Loans can be classified into different categories

• Secured Loans – A secured loan is a loan usually backed by collateral which acts as a secured debt owed to the creditor who gives the loan. The primary advantage of secured loan is, you can gain access to more money when compared to other loan types.
• Unsecured loans– They loans don’t need collateral, but it is lent only on the basis on the creditworthiness. This means that if there is the default, the lender cannot immediately seize assets and sell them.
• Demand loans– It is a rare form of a loan that the lender requires the borrower to repay at any time. It has no maturity date, or payment schedule rather requires only a 24-hour notice.
• Subsidized loans– Much similar to student loans generally offered to the undergraduate students for their financial need. When you receive a loan as subsidized, it need not pay the interest for the amount you have borrowed.
• Concessional loans– These are low-interest loans generally issued by development finance institutions or non-governmental finance organizations
• Personal loan– These are loans borrowed from a bank, credit union or online lender which is usually repaid as a monthly installment for a certain period of time.
• Commercial loans-These are short term loans secured or unsecured which are majorly used for purchasing inventory, machinery or financing for equipment.

When you have a better knowledge of the different loan categories, you can make your loan as assets, not liabilities. For example, a business loan can be met with different kinds of options.

They are plenty of advantages that business loans generally offer

• You can expand your physical location – It is common for the business owners to get the itch for growth but unfortunately they will not have the right source to proceed further. So they wait too long to expand the business and hit a certain milestone. Apparently, business loans can help you better manage your business growth and propel your success in the future.
• Build a business credit– It you want to improve your credit without putting down any money upfront, a secured loan or business loans can be the ideal solution for you. Building credits are one of the major concern for most American business professionals and small business owners. However, these loans will provide a helping hand for these individuals and help to boost your score.
• Purchase of equipment for business needs – Buying equipment for a new business is an important, yet often stressful part of getting ready to launch. When you are in need of new or used equipment for your business, you obviously require enough capital and investments to meet the expenses. One of the best ideas is to go for equipment financing which by itself acts as collateral for your loan.
• Purchase of inventory particularly for seasonal business – Inventories are a valuable asset for the business. Perhaps a wise idea to reduce tax is by purchasing inventory. Most businesses use the financing to purchase quick-turnaround inventory.  When you need to finance your business inventory, term loans may be the best solution, and this will certainly help you get better.
• Pay off the potential debt- Every now and then, and you will have a great business opportunity to grow your business and require additional equipment and machinery to support your expanding business. You might have taken loans during every occasion, and at a certain point in time, you might be stuck with more than one loan. In order to manage the outright cost, you can purchase one big loan and pay off the debts of the smaller loans which has more interest rates to balance your financial status.

Closing Thoughts

A profitable business can benefit from acquiring a loan. Loans are needed ones when you are down with the financial conditions, and your profits are not appreciable.

So you can use these loans as a catalyst for increasing the overall profitability and growth of the business and convert into assets.…

Select The Customized Personal Loans

• Nittany Grace
• April 10, 2019
• Funding & Loans

If you have started looking at personal loans, you may be wondering what sort of circumstance you can make use of it and what should you do to get the right type of loan.

The main objective of using a loan is to help save money, pay off debt, cover financial emergency, and help build a better financial future for yourself.

What Is A Personal Loan? A Complete Guide

In recent years, an increasing number of consumers have started taking personal loans to meet financial needs especially the business owners and entrepreneurs. Personal loans are general purpose loans which can be used at your discretion.

To get yourself eligible for personal loans is not an easy process rather it requires strict qualification criteria and the services who renders these loans follows a unique set of rules.

Credit cards are easier to get, and people take loans using their line of credits. However, the interest is seemingly higher with credit cards. Moreover, when you miss a payment, your interest rate goes up further high and turns into a real nightmare.

Therefore, in order to get rid of these debts, people generally opt for personal loans which are generally offered at lower interest rates. Perhaps paying off high-interest loans like a line of credit, student loans, could save you a lot of money.

In addition, you don’t require to place an asset as collateral unlike other loans like a home loan or car loans. So, when you fail to repay the loan, the lender cannot seize your property.

However, when you are at default or failure to make regular payments, the lender can flag this issue to the credit bureau, hiring a collection agency or file a lawsuit against you.

Apparently, this negative markings on your credit will certainly impact your creditworthiness and next time, and you will not be eligible for a loan. But what are the basic eligibilities for your personal loan?

Eligibility Criteria For Personal Loan

Personal loans requirement is not standard however the basic eligibility requirements are age, occupation, income, ability to repay your loan and the location you reside.

In order to get qualified for the loan, one of the main criteria is you should have regular income source irrespective whether you are a salaried individual, a business owner, self-employed or an entrepreneur.

The other important aspect that significantly impacts the loan eligibility criteria is your credit scores. The higher the credit scores, greater the chances of getting qualified for the loan.

Let us look at the different types of personal loans. Knowing the types, you will have a better perception of choosing which loan could be more beneficial for you.

• Unsecured loans- These are loans that are issued and supported only by the borrower’s creditworthiness rather backed by any type of collateral, such as online payday loans. They are usually approved by lenders very fast, sometimes on the same day of the application. For home renovation projects, unsecured personal loans are ideal options. They generally don’t require any property of collateral to guarantee your loan.
• Secured loans- Secured loans can be borrowed for a higher loan amount with lower interest however you need security like an asset such as home to secure or guarantee your loan. Technically the asset becomes part of the debt you owe when you pay the loan back, your ownership of the asset increases.
• Fixed rate term loans– These are term loans from a bank for a specific amount, and the interest rate remains the same for the entire loan term. Term loans are blended which is a combination of principal and interest for every monthly amount, and it doesn’t change over the term of the loan which means, the payments are done on a fixed rate.
• Variable rate term loans– They are quite the opposite to fixed-rate loans, where the interest rates are charged on the outstanding balance. This invariably depends on the market interest rates changes. In a nutshell, the interest rates fluctuate over time in line with prevailing interest rates.
• Line of credit– This type of loans allows the consumer to borrow only the amount you need and offers a variable interest rate depending on the amount you borrowed. One of the advantages of this type of loan is, it is pretty lower than the fixed rate loans.
• Car loans– it is a sum of money the consumer borrows in order to purchase an automobile. When you get the auto loan for the right vehicle and at the right time, it can save you thousands of dollars
• Student loans– This type of loan is designed to help the students pay for their post-secondary education and is repaid over time. Whether you are a part-time or full-time student, you can apply for a loan through this program.

Closing Thoughts

When you are looking for your business expansion, a business loan apparently will help to brighten the future of your business.

If you don’t qualify for a business loan, a personal loan would be an ideal solution.

However, while choosing the loan, go for the lender who offers great loans products with lower interest rates. This would certainly save you hundreds of dollars.…

Choose What Brings Maximum Return

• Nittany Grace
• January 31, 2019
• Financial Planning

Risks and returns are inter-related. Lower the risk, lower the returns. Nevertheless, when you want higher returns, higher will be the risk. Generating high returns is not an impossible factor when you follow the right strategy, you can expect desired results.

Short Term Investment To Bring More Revenue

When you want to generate high returns, it is always advisable to invest in market-linked investments than in fixed-income investments. With this rise in the cost of living, it is imperative to choose the best form of investment to generate high returns. But you should know that is always accompanied by the minimal extent of risk.

However, you have to keep other things in consideration. When you are nearing your retirement age, and you are accruing money for your son or daughter’s higher education, at those instances you should not take chances and put your money in risk because any fluctuation in your investment will certainly affect their future and career.

But there are suggested few methods of investments that often yield high returns with low risk. Let us discuss some of those investments and become a better person in stocks and investments.

Investment # 1: Stock Market

The stock market is one of the most crucial mechanisms of a free-market economy. For a freshman to the stock market, things would seem very simple. All you need to do is just go to a brokerage firm and open an account. However, it doesn’t end up with this, and you need to have a vast knowledge about the deposit restrictions, commissions and other diversifications involved around it. But when you know the nook and corner of the process, you can be a king and play with the money. You will know when to make the right investment and how to earn the highest returns.  One of the best ways to invest money is to purchase assets that either create income, increase in value or do both. Even experts say that buying and holding a stock is a successful investment strategy which could help you earn higher long term returns.

Investment #2: Peer To Peer Lending

With the advancement of technology and the rising online services, peer to peer lending has become as one of the most popular forms of investment to get high returns. In recent years, the government has regulated the peer-to-peer lending that majorly focusses on small businesses. However, you need to be aware of the fraudulent companies that are available in plenty, which tries to eat up your hard earned money. So, make certain that doesn’t become bait to these scammers. If a loan company ask you to transfer money or to request a bank draft to pay the fees before issuing the loan, you should be suspicious.

One of the main advantage of peer to peer lending is, these companies’ offers screening tools and portfolio setting for your investment gain. Based on these tools, you will have a better insight for which loans you will be eligible for. So based on the loan, you can make 25% of down payment and start with your money. However, when you feel it is rather insecure, you can spread out your investments over hundreds of loan.

Investment # 3: Equity Funds And Equity-Linked Saving Schemes

Equity funds are mutual funds that are basically invested in stocks. They are usually hedge funds that buy ownership in business through common stocks. When you invest in equity securities of US, the companies provide long exposure to capital growth besides providing economic growth opportunities in the US market. However equity funds are designed for investors who have a higher risk tolerance, but in more instances, they can expect high returns. The income through equity funds is mainly generated through dividends and capital gains.

One prominent type of mutual funds is the Equity-linked savings scheme which provide high returns and ensures the best tax saving. It is a diversified equity mutual fund that invests across sectors.

Investment # 4: High-Interest Savings Account

It is a type of savings account that pays higher interest than standard savings accounts. When you become a new client to a bank, you could earn around 3% of the interest for the first six months. They are much different from a chequing account which is purely based on everyday transactions, however higher interest savings account are framed in such a way that the consumer can save some really good money for a consistent period of time. So, you can make your money work by opening a savings account in any one of the leading banks. Moreover, there are no limits for withdrawal, so liquidity is higher and maybe a draw for investors.

Closing Thoughts

Just because, these options work on the limited time frame, it doesn’t mean they don’t yield decent returns. Perhaps these choices are best options to make your investments and earn high returns. Be ready to face the risk and enjoy earning making more money!…

How To Get Business Funding And Loans

• Nittany Grace
• January 29, 2019
• Funding & Loans

Make easy investments with personal loan for self employed employed profesionals.Take your business to the next level with easy & quick business loan.Finding financing in any economic climate can be challenging, whether you’re looking for start-up funds.Plan a presentation and make the appointment.

…

Financial Arrangement – A Detailed Overview

• Nittany Grace
• December 20, 2018
• Financial Planning

Financial arrangement or Accrual Rules are a comprehensive set of policies that is majorly associated with the tax treatment of debts and debt instruments and transactions including concerned debt factors. However financial arrangement between spouses if often an intense issue that is quite complex. Perhaps it is much more complex than the divorce formalities.

Financial Arrangements Between Spouses

Marriage provides particular rightful and financial protections for both couples. However, some couples who are living in a relationship without getting married share some joint budget. So, when the relationship doesn’t work out, or things go sour, complexities begin. The process of making financial settlements during the course of divorce is called ancillary relief under the Matrimonial Causes Act 1973. Apparently, this is applicable only for the married people. When their marriage is legalized, there are more possibilities of law turning in favor of spouse and children.

Some of the financial arrangement that is carried out after the divorce is

• Lump Sum Order

In the divorce action, the court has the authority to make an order to make a lump sum payment from one spouse to another within a specified period of time. However, it doesn’t involve the third party payment despite the couples

• Transfer Of Property

Also referred as property adjustment order, the court has the power to change or transfer ownership of property irrespective of the condition whether only one spouse is the owner of the property and it is jointly held by both the parties.

• Pension Plan Order

According to the Family law act, a pension plan can be divided one year after separation. However when your spouse agrees not to divide them, then it can be enjoyed solely by the other spouse.

However, these maintenance orders will cease automatically when the spouse gets married to another partner, or the child turns 18.

The other common examples of financial arrangements are

• Loans Between Parties

A person who is subjected to financial arrangement rules is held responsible for declaring all his income and expenditures using solid evidence irrespective whether your financial arrangement is revenue or capital nature.

• Forgiveness Of Debts

When a taxpayer cannot service debt because of financial distress, a creditor may forgive all or a portion of the debt. If the amount still remains after the taxpayer declare his losses, there are further consideration that still reduces the portion of the debt.

• Division Of Assets Or Deferred Property Settlement

It implies that a series of payments over a period of time has a conflict to the term agreed to complete the settlement. In order to make an adjustment for the delayed payment, the borrower has to make some interest to compensate for his delays. Apparently division of assets happens, when the father writes a will to share the property between the wife and children or during divorce settlements.

Financial Arrangements For A Group Insurance Plan

When it comes to business, financial arrangement options are available when business develop and reaches a certain level. Financial arrangement for group insurances are majorly classified into three types

• Fully- Insured

Group insurance plans are fully insured in most companies. With a fully insured financial arrangement plan, the employer pays the premium, and the insurer pays for the claim, the process is pretty straight forward, and there is no hidden risk involved with the fully-insured methodology. The only major difference between the fully insured and self-funded insurance arrangement is, determining who assumes the insurance risk, employer size, and market share.

• Self-Insurance

Self-funded financial arrangement is generally chosen when the recipient no longer wishes to have the underwriting services of the insurance carrier. Nevertheless, they want to continue with their administrative services, which is majorly the claim settlement and judgements.

Self-insurance arrangement is predominantly followed by the bigger organizations and industries comprising of hundreds of employees requiring annual medical and dental claims surpassing 400,000 dollars. When the employee strength is higher, there are possibilities of resulting in fluctuations and things going vulnerable; therefore in order to avoid certain risks, companies generally go with underwriting services.

• Retention

The retention arrangement hits a perfect balance between the fully funded and self- funded arrangements. With this type of arrangement, the underwriter uses past claims based on the demography, trend factors, and price fluctuations and predict the future expenses and eventually determine the premium. At the end of every financial year, when the premium exceeds the costs, then the extra funds are used as a reserve or refunded to the sponsor. On the contrary, if the costs surpassed the premium, then at the end of the financial year, the premium amounts are increased to adjust the difference in amounts.

The Bottom Line

In the most generic cases, the retention and self- funded financial arrangement is usually applicable only to the short-term funding, dental and medical care coverages. So, based on these aspects, the business owners can determine which financial arrangement is right for the employees and your company to avoid complexities and make your business function on a smooth road.…

Importance Of Savings And How To Be A Smart Saver

• Nittany Grace
• November 30, 2018
• Financial Planning

Most people’s budget revolves around three aspects: food, housing, and transportation. It is a well-known fact that these factors almost take up two-thirds of the expenses. In addition, you will have other things like paying off debts, prioritize saving and many more. When many people try to find how to save money, they usually end up with saving few dollars here and there.

How To Save Money Effectively

Although it is good to make small savings, however, the smartest thing to do is to look for the big savings.  When you focus on big savings, it would definitely save you thousands of dollars at the end of every financial year. Perhaps this would require some sacrifice but saving money takes discipline. A shocking strategic survey shows that 33 percent of American are left with nothing when they retire. This is a really pathetic situation to think about their lifestyle in their older ages.

So, planning ahead for the future is very crucial not to make yourself to become a part of that community. Before planning how to save money, in the first place you should know why it is important to save money.

Importance Of Saving Money

There are a few reasons why you need to consider savings.

• Save For Emergency

Many people fail to prepare for the future. Saving for emergencies should be a top priority for every American because saving at least 500 or 1000 dollars every year will help you to meet unexpected financial challenges like

1. Car maintenance and repairs
2. Kids school project
3. Maintenance work in your home
4. Health challenges
5. Paying fines for parking offences
6. Emergency flying to visit your close friend or relative

• Become Financially Independent

Adulting is fairly difficult. It is not a simple thing to pay credit cards, manage student loans and budget – all big things by you, without the help of your responsible dad and caring mom. It is a real intimidating process. However, a surprising figure shows that more than 40 percent of young Americans have expressed that they love being financially independent. So how they do it?

1. Build a game plan to pay your loans
2. Improve your credit scores
3. Rent up a place that fits your budget
4. Maintain a bank account of your own
5. Understand the concept of health insurance plans
6. Reduce money on transportation like commuting on public transits and make use of car-pooling.

Although the ability to save money is crucial, it is more important to make savings on your spending. In addition to that, you should aim to

1. Reduce taxes – There are a number of ways to trim your taxes though the Congress makes changes to the tax laws

• Deposit pretax contributions into a 401k or other tax-deductible retirement account. The more you contribute, the more you reduce the gross income which is the main criteria for your tax calculation.
• Paying off debts is often advisable however don’t pay off your student loans because it can save you lot on taxes

2. Sign up for automatic savings, and this will really help you reach your financial goals. If you want to become a better handling person on your money, you probably need a savings plan. When you have an automatic savings account, you will likely build the habit of spending less than you usually do. Over time, this habit will enable you to live even with smaller earnings.
3. Shop smart, make use of deals and save at least a dollar on your shopping – Make budgeting on your shopping. For instance when you don’t have a budget for shopping clothes, better avoid going to the mall on Saturday. When you don’t have the option, obviously your push for overspending is certainly avoided. However, you need not to get bored or waste your day instead you can spend the lovely evening on a beach or park enjoying with your family and friends. However, whenever your shopping is mandatory because your wedding anniversary is falling the coming month, then make your shopping in a wise manner. Look for the deals around, compare prices for the best deal. If you find online prices are better than store prices, make your purchase online and save some pennies.
4. Do the necessary expenses. Otherwise, it will lead to unnecessary expenses. For example, your car will require regular maintenance to function effectively. However, when you want to save money and avoid doing its maintenance, it will lead to major repairs and create a situation to spend more on repairs and maintenance.

Closing Thoughts

To sum up, the best way to become a better saver is to make it part of your lifestyle. Avoid situation that pushes you to overspend. When you have plenty of cash in hand, obviously you have an intent to make some shopping.  So understand your emergencies, calculate your risk and practice to live smart by managing money in the wisest way.

 …

Maintain Your Lifestyle With Perfect Finances

• Nittany Grace
• November 5, 2018
• Financial Planning

If you don’t earn much, it is certainly hard to manage life. When essentials are not met, everyone has a common perception that saving money makes no sense. However, at some point in time, every individual should start their savings. This will definitely improve your financial status over a period of time. How important is financial planning?

Importance Of Financial Planning And How It Improves Your Lifestyle

Financial planning helps you to determine your short term and long term financial goals to create a balanced plan to meet the goals. In order to create wealth, you need to create a perfect financial plan that is fueled by goals. Perhaps when you have a better understanding of the basics of personal finance, you can apparently avoid or at least eliminate your debts. Although there are certain financial planning that is taken care of professionals, there are many basic financial strategies that every individual can design.

There are powerful reasons why you need financial planning

• Income – If your budget and manage your income more precisely, you can handle other expenditures and tax payments without challenges. In addition, you can use your spare income to grow your wealth and make assets
• Cash flow– It is important to know the cash flow to determine the cash position. For a business to be successful, you need cash at all times. So, unless you monitor the cash flow, you cannot render a smooth operation for your business.
• Improve your lifestyle – When you manage your household finances in a smart way, it will obviously provide you with peace of mind. You would be sure that your life is moving in the right direction and you are securing your life as well as your loved ones. Ultimately you will have fewer worries about your financial future
• Pay off debt– When you are accumulating debt, then it indicates that you are not managing your debts efficiently. Lingering in debts acts as a bigger hindrance to achieving your goals. However, when you are committed to managing your finances more responsibly, you can figure out a pay-off plan to get rid of your debts as early as possible.
• Assets– Accruing assets will indeed show that you are growing in your life. However, your accumulation of assets should not be accompanied by liabilities. If there are liabilities, then you cannot determine the exact value of the assets. In addition, the liabilities will add burden to your life. So responsibly managing of finances will help you prevent liabilities.

There are countless ways to get your finances in order. Having the right financial goals will help to improve your life.

Let us see a few outstanding goals that would unquestionably improve your lifestyle.

• Don’t live on the financial edge– When you read the investment portfolios of successful entrepreneurs without facing liquidation for a considerable period of time, you will realize how effectively they have managed their finances. These business owners ensure that their money is tied up with properties or long-term investments so if there are any challenges, they will always have a portion of the accessible asset to handle situations
• Design a budget and stick to it – Creating a budget either in a professional way or unprofessional way is one of the effective methods in managing your money properly. When you have a budget, you will know your financial position besides knowing how much you earn and how much you spend. Based on this, you can cut down unnecessary expenses and wisely use your funds. Planning your expenses weekly help you to maintain financial allocation. When you plan ahead, you can cut off take out foods and buying things at a higher price.
• Savings– Most companies offer a retirement savings plan to divert a portion of their income into these accounts automatically. Perhaps, this is a valuable savings tool, and in fact, you can make greater savings in your taxation. Retirement plans are pretty smart savings because when you transfer from a company, you can set automatic transfers from checking or savings accounts to tax-advantaged accounts.
• Find ways to avoid purchases – it is a common perception of the consumer to buy things when it is on sale. Although you don’t require the things, yet you will go for it when you get at a lower price. This is called impulsive buying. This is one of the major factors that result in overspending. Similarly, when you are intended to purchase an item, give it a second thought whether you will get the same item with a better price elsewhere. This will give you sufficient time to think before purchase and plan financially.

Bottom Line

When proper financial management is done, you will not leave a financial mess behind. To have a better understanding of how things works, you can also consult a financial advisor who can save you a lot of money. They have greater economic insight and offer you a comprehensive analysis of financial savings which will certainly improve your lifestyle.…