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Financial Headaches Facing Small Business Owners

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Fierce and uneven competition in the market is often the downfall of small business operations. Unlike large enterprises where cashflow is continuously trickling in enabling the repayment of business expenses, SMEs will frequently struggle to pay off debts if they handle their finances in the same manner. For the small enterprise, generating income and having enough cash at hand to pay for bills and expenses is one of the most important and challenging tasks. So finding the right solution to keep cash levels flowing and the business moving is paramount to ensuring successful business growth.

smallbusiness tax and australia

Keep the cash flowing

Cash flow is perhaps the heaviest issue for the small businessman. A profitable next quarter doesn’t mean anything if your workers won’t get their pay packets this quarter. Business owners must acquire an acute sense of timing and budgeting. Revenues must sustain the outflow of cash and replenish for the succeeding quarters in time before other expenses are due. With accurate calculation, the small business owner must be able to keep credit in check while predicting the times ahead, especially if there is significant seasonal variation in profits. If you do find yourself in some cash flow troubles due to bad debtors, you may wish to seek the aid of a debtor finance specialist to give you some help with unpaid invoices and get quick cash injection.

Expect the unexpected

The first few months in a business’s life can drive the small entrepreneur’s finances close to negative, with slim to none profits in the first few years. Businesses can generally handle the slow start as long as they aren’t hit with any sudden financial burdens. A large proportion of your profits may already be going towards office rent and maintenance but make sure you also have the correct insurance policies as the last thing you want to pay for is a large payout if a customer slips in your storefront.

Other like expenses such as government special charges and taxes on businesses and products even the price increase of supplies can also affect the small businessman’s finances. Keep a part of your income for these unexpected expenses. Better yet, anticipate these and keep into account when they are exactly due and how much they all amount to. Being fully aware of all potential costs will give you a much clearer picture of where the cash goes.

Prepare alternative plans when a disastrous event occurs.

In a huge business, the loss of an executive might not be as devastating as it is to a small company; they might just promote a person among subordinates that were groomed to follow and continue running the business. This is not so in a small business; if a small enterprise loses a key person, especially if he or she holds a number of responsibilities, the loss will affect the entire business—more so if the key person is the entrepreneur himself/herself. The business may temporarily stop for weeks, months or extended periods of time.

Natural disasters are also source of business interruption. If that happens, keep your cash on hand ready for any damages that need to be repaired. Also keep business policies in check to know when you can resume business the earliest time possible.

This guest post is brought to you by Scottish Pacific. For more information on business cash flow solutions and invoice discounting visit Scottish Pacific.

Australia’s best hotels for corporate meetings and conferences

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Whether you’re a businessman, public servant or representative of an organisation, one task that will come up every so often is arranging a conference for both internal and external figures. It’s a task that usually eats a large amount of one’s time as organisers find information on a range of hotels and other meeting spots before checking them against myriad attributes. Fortunately, however, top hotels for conferences exist in every major Australian city, meaning it is not impossible for you to impress colleagues and stakeholders with your choice of hotel.

australian heritage hotels

An Australian heritage Hotel

Hotel Lindrum, a Melbourne hotel situated in the heart of the city, provides a classy, yet value-for-money option, which is great for those organising a meeting or conference on behalf of a small business. The Lindrum’s Australian Room offers a cosy but highly professional setting for meetings of up to ten people. At $400 for a full day or $280 for a half day, and with a tailor-made menu for meetings offering food and beverage options from $15 per person, a corporate meeting in the Australian Room can boost a small business’ clout without eating its hard earned profits.

The Sebel Pier One in Sydney has breathtaking waterfront views that will charm even the fussiest of conference guests. Overlooking Sydney Harbour, Pier One’s main conference venue is able to fit 440 guests, which makes it a great choice for large conferences of a high-level and prestigious nature. Alternatively, Sebel Pier One has seven smaller conference rooms, allowing for an elegant, yet more intimate atmosphere for corporate small business meetings. While it is on the expensive side, the highly sophisticated atmosphere and the first-rate views make Pier One an excellent choice.

The Crowne Plaza Canberra is in a central location close to the National Convention Centre, giving guests easy access to any large functions occurring there. The Plaza has six meeting rooms which cater for conferences and corporate meetings with few or many guests. Its largest room, The Glebe, fits up to 50 guests in a meeting setting while the smallest room in the Crowne, Pods 1, fits up to 17. Such diversity of rooms in a prime location gives Crowne Plaza something to offer for large and small businesses alike.

The Crowne Plaza in Canberra is not the only one excellent for conferences; Adelaide’s Crowne Plaza also offers outstanding facilities for those in Australia’s south. Like its Canberra counterpart, Adelaide’s Crowne Plaza has a diverse array of meeting rooms, with seven being offered by the hotel. Along with luxury, the Plaza’s state of the art technology in its function rooms is its major strongpoint. The Hindmarsh Ballroom, for instance, includes a built-in data projector and screen which has been deemed as the “latest in technical facilities” by the hotel.

When it comes to size, Brisbane’s Pullman Hotel is unrivalled in the Queensland capital. Located in the centre of the city, the Pullman has the capacity to fit up to 1000 people in its largest ball room, an easy fit for even the largest of corporate functions. For smaller corporate meetings, the hotel also has two boardrooms. On top of all this, the Pullman Hotel also boasts the 50-seater King George Room, which overlooks Brisbane’s King George Square, giving it character for those hosting a conference with a sophisticated touch.

Over in the country’s west, the Duxton Hotel in Perth is an attractive hotel venue for conferences given its five-star facilities and location near the Swan River in the city centre. With nine meeting rooms, ranging from a function floor on the Lower Lobby Level and the six-seater Duxton 5 meeting room, the hotel appeals to those hosting large and small conferences and meetings. The Duxton Hotel is located on St Georges Terrace, which has public transport connections to Perth’s Domestic Airport, making it a great choice if catering to interstate guests.

In Australia’s north, the Vibe Hotel Darwin Waterfront offers four flexible conference and meeting rooms within walking distance of Darwin’s Central Business District. The Vibe is situated in the recently developed Waterfront precinct, which contains many top alfresco restaurants and entertainment areas. Vibe Hotel is also 20 kilometres from Darwin Airport, making it a great hotel to hold a conference if attendees are flying in from elsewhere.

Australia boasts some of the best hotels for conferences and corporate meetings. Hotels in every major city in the country contain conference rooms to cater for both small and large conferences as well as professional atmospheres for even the highest-level of meetings. With central, easily accessible locations and state of the art technological facilities in these venues, a business can easily consider flying into a new location for the annual company conference or function.

Carla C. Burton is a self-employed Travel and Hospitality writer with a BBA in Business Administration from Bond University.  Although a Gold Coast native, Carla moved to Melbourne in 2008 to further her writing career in the Travel industry.  Carla has become a top contributor to many Travel blogs world-wide and thoroughly enjoys the freedom that self-employment has provided her.  To find out more about Carla or to follow her other posts, follow her on Twitter @CarlaCBurton.

Who Pays for Online Credit Card Fraud?

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In this age of new technology, we have begun to live our lives between the online world and the real world. There are now so many ways that we can communicate with our customers, through social media, our websites and ultimately through the transactions that we make. It has never been easier to make the connections we need to keep our businesses above water; but this does come with new ways that criminals can gain access to our companies and customers details and sometimes this can leave all parties involved out of pocket. The main and most common ways that this happens is through credit cards, mainly due to the amount of sites that now accept our credit card details. Here we will look at how and who this fraud relates to and ultimately, who carries the cost.

credit card fraud online

The Credit Card Company

The majority of credit card fraud issues includes fraud, theft and expired cards. In the case of online fraud, currently the easiest way to commit this form of crime, many credit card processors have a zero liability policy that will return the card holders cash to them. Many times the card provider will not allow the transaction to be processed, and the person making the transaction will become aware of this. This allows the bank to investigate the transaction and determine the best course of action.

If a transaction is processed then this will usually leave the credit card company paying the money back to the cardholder and will be covered by their insurance; the turnaround time for reimbursement is, on average, 48 hours.

The Merchants Responsibility

There are times when credit card fraud can be attributed to the merchant, mainly for letting the crime happen on their site. This usually occurs due to a lack of onsite security during the payment process.

One scenario when a merchant is most likely to be charged to foot the bill, is when it can be a proven mistake on their part. A prime example of this was a recent merchant fraud case involving Apple in the UK, was a case of a child using his parent’s credit card to pay for online games. Apple had not integrated this liability into their planning and as the parent’s card details were stored, there were no restrictions to stop the child from using it. Apple had to reimburse the full cost as it was indeed a fault of theirs.

There are ways that, as a merchant, you can make sure that you are protected; the most obvious is to make sure that you have adequate SSL security on your site. This should be displayed throughout a variety of you pages and be obvious at the transaction point. This will, at least protect you if a customer’s details are stolen from your site.

The Customer

The bulk of online fraud transactions are now covered by the banks and credit card companies, but there may be times when the customer is just as liable as the merchant. The majority of credit card fraud cases will need to be proven by the customer and merchant in order for the creditors to make the reimbursement. If you have found fraudulent activity on your account, or one of your customers has experienced this, then it is imperative that you find out what the credit card company classes as an ‘authorized’ transaction as they can differ between companies. In essence, if you have presented your card for payment, then you could be liable for the charges that apply directly to this activity.

The issues with customer liability within this arena is that there are now so many ways that you can pay for things using your card, Paypal, online, offline and many people store their bank statements on their computer. If you then allow someone to use your computer and they take your details, then you are liable – it really is as easy as that.

In conclusion, we are all liable at some point to pay for the crime of credit card fraud, so we need to work together to make sure that we are all as secure as we can be.

Distinguish Your Business with Smart Online Marketing

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There are millions of websites on the internet, and sometimes it can be tough for business to rise above the crowd. A business owner might offer great services and products, but if they can’t differentiate their business from the many others in the industry that also have websites, it is unlikely they will improve their business much.

web site theme wordpress

wordpresstheme

Part of a “smart online marketing campaign”, though, focuses on distinguishing your business from all the competitors and imitators. The most effective online marketing will leave you with a memorable brand and impactful online presence.

1. Polish Your Website

The first step in distinguishing your website is to project a distinguished image. Web users should navigate to your site and immediately think they are dealing with a professional, reliable company.

If your business doesn’t have a website, or if the website you do have is dull, you won’t be able to take advantage of the benefits the internet can have for business. Fortunately, setting up a website has gotten easier and easier over the years. Now, many sites offer templates and low-cost site hosting, so you need neither design skills nor a huge budget for online expenses to run a professional-looking website.

You might think about setting up a blog. Blogs can be very effective because they allow businesses to communicate directly with readers, and with more content (and more page views), the company’s search ranking will improve. To do that, Premium WordPress themes look through some  and choose one that is suitable for your company’s brand. Modify the colors and graphics to fit your style, and you will be good to start blogging.

2. Have a Clear Message

Confusion on your website is only going to encourage users to click over to other sites. If you have five million products posted to your front page, your visitors will be overwhelmed and turned off. If, on the other hand, you are not clear enough about any of the services you offer, your visitors will be similarly discouraged from purchasing your products.

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WordPress theme

Strike a balance by giving customers a clear idea of what your business does and how they can use your website. The shotgun approach to advertising—putting as many products on the screen as possible and hoping for success—will not pay off. Instead, provide an honest account of what your business is and how you can help. Also, don’t over-exaggerate your services. With all of the hyperbole on the net, users can easily recognize it when they see it.

3. Connect with Users

Does your company offer awesome services that can help lots of people? Prove your confidence in the brand by reaching out directly to your potential customers. Engagement is a central part of online marketing, and it is a great way for businesses to express their personality and bolster their reputation.

Get involved in social media. It can feel a bit empty at first, because building a community is slow and you won’t actually sell any products on your social media feeds, but it’s a great way to get noticed. Active social media will eventually result in a larger audience online, with more potential customers coming to your business’s website rather than that of a competitor.

In addition, be sure that you use every opportunity to boost customer service by communicating with customers and addressing their needs. Be proactive in offering answers and advice regarding your field, and get back to customers quickly whenever they have a question or concern. In addition, thank customers for any positive feedback, and always work to modify your company and its online activities according to feedback you get from your visitors.

About author Anny Solway is a dedicated writer at ThemeFuse – a leader in the Premium WordPress Themes area. She likes to discover new ideas about internet marketing, social media and blogging.

Five Common Strategy Mistakes

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It’s easy to make mistakes in business. While big businesses may have the capital cushion to   absorb most errors, small businesses don’t, and a mistake can finish a business before it’s managed to get off the ground. While overlooking a couple of figures in the ledger may be expensive, a strategy mistake can be fatal. So here are five pitfalls to avoid when you’re developing your small business strategy.

small business strategy

#1 – Marketing is NOT strategy

This is one of the biggest mistakes that new businessmen and women make. It may be intuitive to think of marketing as a big part of your strategy, but in fact it is merely a means to an end. A marketing-only strategy overlooks the fundamental points of a business strategy, such as projected growth, product development and other value-based considerations. Yes, marketing is crucial (after all, if people don’t know you’re there, they won’t buy your product!) but don’t let it become the all-consuming factor in your overall strategy. It’s a part, not the whole, so keep it in its place. This approach also prevents marketing expenses from escalating.

#2 – Size matters – be the biggest, be the best!

A common belief is that the bigger your company is, the more profitable it is. While there may be a small amount of truth behind that theory, it shouldn’t be the be-all and end-all of your business strategy. With greater growth comes greater expense, and just because a goal sounds good does not necessarily mean that it will be financially good for the company. A good fiscal balance is essential, so steady growth that’s sustainable and doesn’t put a strain on existing resources is more likely to succeed in the long term than rapid expansion and an attempt at market domination.

#3 – Growth is not a strategy

Following on from #2, let’s reiterate that growth in itself is not a ‘business strategy’ – it’s an aim or goal, yes, but not a strategy! The strategy part is how you achieve that growth, and again to ensure that it is sustainable. Don’t confuse strategy with actions. Strategy is your causation, and growth (if you do it right!) is your effect. The actions you take to achieve growth are part of your strategy.

#4 – Do ‘What you’re good at’ – your competitive advantage

It’s very easy to overestimate your business’s strengths and therefore skew your overall strategy because of the inclusion of incorrect or inaccurate data. Yes, you may be good at making product A, but if your customers want product B then making too much of product A is obviously the wrong strategy. Be realistic about your strengths and advantages, and remember that an advantage is often something more visceral, such as providing a better standard of customer care than your rivals. This gives you a competitive edge in that particular area of the strategy, but it also demonstrates that there may be other parts of the plan that need to be addressed for the overall strategy to work, such as making more of product B!

#5 – High growth markets are where the money is

High growth industries may look attractive on paper, but for small businesses it can be a case of reaching too high, too fast. Growth is also no guarantee that a business will be profitable, and may over-stretch a business’s resources and finances. It could also put your suppliers in control, rather than you. Nobody ever got wealthy chasing after a fast buck, and rapid growth is often followed by extremely rapid decline, especially if you can’t pay your suppliers and they end up cutting you off. Again, the key is sustainability, so ensure that your strategy revolves around the long-term, rather than short-term rapid gains.

Author Carlo Pandian is a management graduate and blogs about finance, small business and technology. He also writes tutorials on Intuit small business accounting software and loves sharing tips for entrepreneurs about how they can boost their businesses.

Low doc loans solutions for self employed business people

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Are you a self-employed professional? Do you find availing loans for your business or personal needs difficult? Did you face unending hassles the last time you applied for loan from the bank?

perth moving and living in WA perth australia

Self employed low doc loans

If the answers for all the questions are in positive then it means you are facing some serious hardships in availing loans, which be quiet disappointing for the future plans you’ve made.

However, the long wait is finally over.

No longer would you be facing trouble standing in the long queue and waiting your turn only to find that the application for loan approval has been rejected.

The answer is in the form of a path-breaking financial products—– “low doc loans” or “low documentation loans.”

How do they help?

Low doc loans are specially designed for the people who are self employed and who face difficulty in furnishing up to date documents related to the income source and various other financial details. There are situations where the produced documents don’t actually reflect the source of consistent income. Hence the application for loan, receives rejection wherever applied.

Regular loans lenders find it very unsafe to offer loans to people categorized under self-income groups due to the instability of their business in comparison to regular income holders.Therefore, lending funds to such individuals is termed as a huge risk and banks generally refrain from lending it to them.

These loans could very easily add on to the list of Non Performing Assets (NPA’s) for these banks.

Other advantages of low doc loans:

· The number of financial documents required to avail the low doc loan is fewer than otherwise. It solves the major problem for the loan aspirants categorized under self-employed groups.

· Low doc home loans in Australia is available up to 90% of the market value of the property. This means that the applicant receives higher amount of the funds than from regular sources.

· The options under this category are innumerable and the aspirant can easily decide on the best possible choice as per the needs.

· Low doc loans offer redraw repayment facility. This is one of the main features of the loans that impart unique credibility and attractiveness to them. This feature is present in much selected regular loan schemes.

· In addition, the applicant receives the option of flexible repayment and unlimited extra repayment without any early exit. This adds a unique cover of security to low doc loans. In short, they have all the necessary features that make them more preferred.

Therefore, even in conclusion, we can state that low doc loans or low documentation loans are the best option for self employed people. However, they should make it a point to enquire about the stamp fee and miscellaneous expenses along with the total repayment amount before applying for these loans.

These loans are easily available at all the banking institutions where they can be easily accessed. It is always better to evaluate your borrowing potential before thinking of applying for low doc loans. Red Rock Mortgage Group is an independent mortgage finance company specializing in property finance solutions.

Is Silver Surpassing Gold?

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Some long-term silver analysts are predicting a huge run on silver over the next few years. They also believe that the gap between the price of gold and the price of silver will be narrowed significantly. These silver bulls base their projections on historical data as well as current trends. This is good news to those of us that are fond of buying silver. After all, considering the price of gold, silver is one of the few remaining commodities that the average investor can physically hold in any large quantity. So why are these silver bulls so optimistic? Most likely it’s related to the driving force of all commodities: supply and demand.

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Supply Gold & Silver

For the first time in the history of modern mining, many of the world’s leading mines are coming up empty. It is estimated that 95% of all silver ever produced has already been consumed and unfortunately most of it ends up in our landfills. If the current supply of silver were evenly distributed among everyone on earth, there would only be enough for each of us to have 1/3 of one ounce. For many years now, the world has been using more silver than it has been producing, yet many people continue to assume that silver is abundant. That hasn’t been the case since the industrial revolution. Major government stockpiles from the past have slowly been sold off for industrial use. For years now the annual global mining production has not been able to keep pace with consumption, both investment and industrial.

Industrial Demand

As opposed to gold’s limited industrial applications, there are literally ten thousand industrial applications for silver.

It is essential to the production of medical, telecommunications, computer and automotive equipment, to name just a few. Silver has many useful qualities; the most valuable to the manufacturing sector is its unsurpassed qualities as a conductor of electricity. As electrical power continues its growing dominance around the globe, the industrial demand for silver is expected to continue to grow dramatically as well. Also, considering China’s mammoth appetite for precious metals that are essential to its continued dominance of product manufacturing, many insiders are projecting an even steeper rise in demand in the short term.

Investment Demand

Just like industrial demand, investment demand for silver is also at record levels and growing steadily. As more and more investors continue to embrace precious metals, many of them are seeing the incredible potential of silver. According to Bloomberg News, investors currently hold over 18,000 tons of silver-backed exchange-traded products, which is the equivalent of over eight months of global mining output. Morgan Stanley and Barclays PLC are predicting that investors will likely buy another 500 tons in 2013. Another sign of growing investment demand is the incredible popularity of the U.S. Mint’s silver Eagle coin. The mint is barely able to keep up with demand and there have been several occasions recently when the mint had to ration sales.

Even though gold continues to perform well and will likely remain the dominant precious metal for investment purposes, silver is likely to close the gap considerably in the very near future. When you consider the dwindling supply and growing demands from investors and manufacturers, you can begin to understand why the silver bulls are so optimistic.

Author Bio:

Jacob Harrison is a precious metals investment specialist from Australian Bullion Company, Australia’s oldest privately-run precious metals wholesaler and retailer.

Best home loans in case of bad credit history

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There is a substantial population in the world with bad credit scores. These people often find themselves totally sidelined from the others when it comes to raise money from banking institutions. The reason behind this neglect is the risk involved in handing out loans to people who may not possibly be able to pay the complete amount on time. However, bad credit home loans offered by some lenders have given hopes to all such people. Recently many players have arrived in the market to make most of the emerging sector of bad credit mortgages. The low doc or low documentation loans provide unique opportunity to bad credit borrowers.

home loans with bad credit history

Red rock is one such financial institution which is one of the leaders in the “bad credit market”. In the present times two types of loans are suggested by the top broking houses to the clients withbad credit history.

Low doc loans:

 

These loans are specially designed for the people that can not avail to the facility of regular loans from the banks because of their impaired credit history. These loans have given a golden opportunity to such people. It provides a unique opportunity to them in obtaining funds for future investment. Their broader types include:

1) Self declared

2) Account statement

3) Asset lend

In the case of low doc home loans the applicant is not required to provide of much of the paper work otherwise needed in the case of regular loans. The system works on a method called self-verification where the candidate has to declare his active source of income. The lenders decide, thereafter, if the application of the candidate is worth consideration or not. Low doc loans are one of the most innovative and sought out loans in the present market and provide lots of relief to the clients with bad credit history. They have completely revolutionized the financial market catering to a new set of client base.

SMSF loans

Self Managed Super Fund (SMSF) loans protect you against the economic depression and helps in the wealth creation. Very few options are present in the market that can provide you the unique opportunity of safe investment and wealth creation at one and the same time.

The SMSF home loans provide investors flexibility and tax relief, to an extent. SMSF loans are an exclusive lending facility that enables a borrower to use his pre-existing SMSF to borrow and invest in commercial properties including shops, showrooms, warehouses and other approved residential properties.

The only mandatory condition is to have a pre-established and compliant SMSF. The applicant is at a considerable advantage as his SMSF can acquire property worth more than the value of available funds in the personal account. Your SMSF assets are secure even in the case of loan default.

The process of Self Managed Super Fund loansis highly advantageous as tax liabilities can be condensed to a reasonable extent. The interest expenses can be claimed as tax deductions by the SMSF. This feature is not found in many other bad credit fund options. Therefore one should consider availing these opportunities as soon as possible.

Author Box: Red Rock Mortgage is an independent mortgage finance company specializing in property finance solutions for investors & borrowers with specialized lending needs

What is a “Means Test” and how it affects your health insurance costs

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Kevin Murphy is a freelance writer and former insurance industry professional. He spends most of his time in his native Australia, and he writes about Health Insurance for Frank Health Insurance.

health insurance in australia with healthcare

The Australian healthcare system changed forever on July 1st, 2012. To many, it was just another July day, but to others it significantly changed the way their health care costs were structured. Among other things, the government passed a law through the Senate that will require Means Testing for many Australian families with private health insurance in order to determine their eligibility for the 30% health care rebate. Along with that, they also reorganized the way that rebates are paid out. They are now in separate tiers that will provide a lower or higher rebate depending on factors like your age and income level.

The day everything changed

Prior to July 1st, 2012, as we all know, there was a rebate of 30% across the board for anyone with private health insurance. This was mercifully uncomplicated and made it so a lot of those families with middle to lower middle class income levels could pay less out of pocket each year for their private health care coverage. The downside was that if you were a family who made $168,001 per year or more, you would have to pay just as much out of pocket for private health insurance as someone who earned millions of dollars a year, making the burden a little bit harder on those on the lower end of the income spectrum. The government wanted to both lighten the load on lower income families and ensure that those who couldn’t afford private health insurance weren’t negatively affected.

Paving a path with good intentions

As with many things that the Australian or any government does, they start out with good intentions. The health care rebate Means Test is meant to help the government be able to more accurately payout health care rebates and prevent overpaying to those who could otherwise afford the treatment they received. The purpose of which was to save the government money and, in turn, put less strain on the already overburdened public health care system. This looks great on the surface, but it could have far-reaching unintended consequences for the entire health care system as it stands.

Is it a fair shake for everybody?

Of course, there are two sides to this coin. Many people feel that putting a higher monetary strain on those with the most money would be an appropriate measure to ensure that those with little to low income have access to affordable, adequate health care. While that looks good on paper, it may do just the opposite, warns Dr. Michael Armitage, Chief Executive Officer of the Australian Health Insurance Association, who predicts that “means-testing the 30 per cent rebate will force people out of the private healthcare sector.”

Dr. Armitage has spoken out against Means Testing since the bill was in its infancy a few years ago. He also warns that “The costs of treating consumers in the public hospital system are expected to rise substantially above what is currently anticipated by the government, with an estimated rise of $3.8 billion over five years, and an estimated 850,000 person increase in public hospital admissions.” If you look at it that way, then the July 1st restructuring could force people out of private health care and back into the public system, clogging an already clogged infrastructure.

Change, good or bad, is happening

While it will be a while before we can truly see the effects of the Means Test on our health care system, we do know that change is in the wind. Whether it’s for better or for worse, only time will tell. Until then, the best advice would be to keep your private health insurance coverage as long as is feasible in order to provide the best possible care for you and your family.

Business debt repayment tips: Find out your debt relief path

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Author Bio : Dan Marshall is a financial writer and enjoys writing articles on the global financial situation, bankruptcy, making money online, the stock market, debt consolidation, and mortgages along with other finance-related topics. He is associated with Oak View Law Group.

debt relief pussy-cat

Entrepreneurs must understand that they need to have the requisite skills to manage their business as well the financial resources in order to thrive in this highly competitive but shrinking economy. However, a good number of entrepreneurs are facing enormous difficulties in running their business efficiently because of reduced revenue and high operational costs. As a result, they are saddled in huge business debt.

Hence, entrepreneurs who are looking for ways to straighten their company’s finances must opt for the various debt relief options that can bail them out from the current crisis.

Reasons to choose debt relief programs

Here are reasons that should make the entrepreneurs opt for debt relief options:

® The profit margin has reduced considerably for the past several months.

® There are atleast 3-4 monthly outstanding payment deadlines to meet that have practically become impossible for them to manage.

® Debt collectors have started making collections calls besides sending them letters asking to make the payments.

® There are different types of loans with varying degrees of interest rates. Moreover, these loans have different loan terms and conditions.

Once, entrepreneurs have figured out their financial shortcomings, then they can approach the debt relief companies for professional help accordingly. In this case, one of the most preferred modes of debt relief is ‘debt management plan’ or DMP. Here is a short description about its process.

How debt management plans work

Debt management plans work in the following ways:

i. Entrepreneurs who opt for the DMP are required to work with a credit counsellor who will guide them through the debt relief program.

ii. Credit counsellors will conduct a personal financial management session with the debtors. During this session they’ll gather all their financial information and decide on a budget as well as debt repayment plan. This plan are devised on the basis of the total loan amount and the maximum monthly payment amount that could be easily afforded by the debtors.

iii. After making a budget and a repayment plan, credit counsellors will start negotiating with the creditors on the debtor’s behalf, conveying them about their client’s financial hardship. At this stage, credit counsellors act as the communicator between the debtors and creditors.

iv. The success of the DMP is based on the consent of the creditors. In this case, debtors may get the advantage of reduced interest rates or waived off penalty charges. The repayment plan should be made following a written agreement between the creditors and debtors. As a result, of this agreement, both the creditors and the debtors will be liable for prosecution in case of breach of contract by anyone of them.

v. Ideally, DMPs should not take more than 60 months to complete.

Lastly, with each passing day, it is become all the more difficult to run a business. This is because of global economic crisis and reduced consumer spending. So, in such a situation entrepreneurs should try to cut down on unnecessary expenses and stop using multiple credit cards. This will help them to stay away from debt and keep their businesses financially stable.