Loans

Small Loans – Getting Financial Help When You Need it Most

May 10, 2020 by Reporter Leave a Comment

Staying safe and helping each other through COVID has become a focus for us all right now, and safety means our well being – physically, mentally, and financially.

We all need to focus on what matters in our lives and keep things as simple as possible – as there has been a lot of change for us all to get used to.

One of the most important things for us to do though is keep those necessities going – the little things in our lives that we see as essential to our well being.

That’s where a small loan can help, and with social distancing, and the temporary closure of many face-to-face businesses, it’s helpful to know that the application can be completed 100% online.

Unlike large loans say for houses or cars, a small loan is designed to help with life’s necessities. For some of us, those necessities are yoga classes which we can do online, and for others of us, it might mean purchasing a breadmaker so we can make gluten-free baked goods and be self-sufficient at home.

Whatever your situation, we are all in this together, and we all need to focus on what matters most to us and the people we care about.

Whether it’s realising that you now need to purchase a laptop or a tablet so the kids can keep learning from home, or being able to pay a higher than usual utility bill because you are housebound, a small loan may help relieve the pressures we are experiencing right now.

Rates have been officially frozen in Australia by the RBA, so there are no more increases to come while we take measures to look after our health, and plan for life during and after COVID.

If you are looking for a small loan to help, here are a few tips on what to look for online:

1. Is the process simple?

When situations are stressful, and we are all experiencing a lot of change both socially and financially with COVID, you want to keep any processes simple. Look for a small loan online that is straightforward, and that is easy for you to complete. Expect to answer a few simple questions, so look for online applications that can be completed in a relatively short time frame (less than an hour).

2. Are the repayment terms clear?

You want to make sure that you can manage your repayment cycle, and that there are no hidden fees with any small loan. Look for how you access the money, what the interest rate is, and whether you have a short repayment term like three months, or a long repayment term. It can be easy to understand repayment amounts if the loan company has an online tool.

3. Does it fit with your pay cycle?

Be sure that you can fit the repayment with your pay cycle. This can make it easier for you to manage, as you will know when the money will come out of your account.

4. Can you speak to a customer service team easily?

You want to be able to contact a customer service representative of the company when you need them. Check for their operating hours, and whether you will be able to speak with them, email them or phone them.

5. What are other customers saying about the small loans?

Look at what other customers are saying. This will help verify that the online application is as easy as the loan company says it is.

If you are looking for a small loans, remember that simplicity is key.

Look for a small loan that can help you cover the essentials for your family when finances are a little stretched in the short term. It might just be the positive difference you all need in your life to keep you focused on what matters most – the health and safety of your family.

Building A Successful Business By Boosting Employee Satisfaction

April 8, 2020 by Reporter Leave a Comment

It’s been said by experts that employee satisfaction is key to a business’ success. An organisation will fall behind if it isn’t able to retain its employees. Even when the job market is weak, top talent will be able to find plenty of job opportunities. How can a business attract excellent employees and retain them?

When it comes to employee management, there aren’t any strict guidelines that you need to comply by. With that said, you’ll want to make sure you have a clear picture of how your employees are motivated.

Finding Intangible Sources Of Motivation

Naturally, a company will need to offer competitive wages and strong benefits if they want to get the attention of top talent. Unfortunately, paying well may not be enough to retain workers that have a lot of opportunities. Wages and benefits aren’t the only things that employees consider when they’re trying to decide whether or not they should leave a job. Some of the best ways to improve the satisfaction of your workers won’t cost you anything at all.

Some of the intangible things workers look for include:

● Workers want company leaders to communicate with them. They don’t want to find major developments via gossip or press releases. They want to hear about new strategies and plans for the future.

● Workers want to feel appreciated. They want to hear from leaders about the impact their activities are having on the company.

● Employees want to work with leaders who are willing to listen to them.

This is why it’s so important for managers to have regular meetings with the members of their team. During these meetings, leaders should pass along essential information, invite workers to ask questions and encourage them to give feedback. Companies should have an open communication policy that begins with senior management. From there, these policies will spread throughout the business. These values are something that should be expressed in employee handbooks and in any job descriptions that are posted.

Realising the Important Roles of Management

No matter what an employee’s title is, it’s likely that they’ll want to contribute to the organisation they’re working for through their leadership skills. Workers want to be involved in the decision-making process, especially when it comes to decisions relevant to their role at the company. They also want to be recognised for the contributions that they make.

Small business advisors at Lend say “employees quit bosses rather than jobs.In fact, a research proves that 57 percent of employees have left a job because of their manager. Moreover, 14 percent have left multiple jobs because of their managers. An additional 32 percent have seriously considered leaving because of their manager. ” They suggest, “employers need to evaluate the process they are using to select, develop, and train people in management or supervisory positions.

Helping in Career Development

The majority of employees want to develop and advance in their career. This is especially likely to be true when it comes to top talent. If people aren’t able to do their job properly, they won’t stay in that position for long. Training and developing an employee shows workers that their employer is willing to invest in them. Costly training isn’t always necessary. In many cases, companies already have experts on their staff that can train employees. This does two things: it provides the trainer with recognition and a development opportunity, and it gives trainees a chance to learn new skills and information.

Having a Flexible Work Environment

In 2013, The Australian Bureau of Statistics pushed through the Flexible Working Environment (FWE). That same year, a change in the office environment and supporting policies and guidelines were first trialled.

Over the past years, a focus on -People, Place and Technology which are the three key contributing factors needed to build a flexible workforce, has seen a positive cultural shift in flexible working attitudes.

Nowadays,workers are looking for employers that acknowledge that they have responsibilities and interests beyond their job. Employees appreciate benefits like flextime, job sharing, telecommuting, and modified schedules. When used appropriately, these benefits can do a lot to boost employee retention. FindLaw has an article on this subject that goes over some of the benefits and drawbacks of telecommuting.

It’s also crucial that workers have choices and flexible options. It’s important to remember that not all workers are going to be motivated by the same thing. Parents may be interested in on-site child care. Single adults might be drawn to fitness centres or gym discounts. Other workers might want a company phone or car. It’s becoming increasingly common for companies to do away with rigidly defined categories when it comes to time off work. Instead, businesses are offering flexible policies that allow workers to take a day off when it makes sense for them.

Being a Good Listener

If you listen to your workers, you won’t need to wonder what they want. They’ll tell you. Surveys, suggestion boxes, and exit interviews are all excellent ways to get more information about what employees are looking for. Any company that does conduct exit interviews will want to take the time to analyse these interviews. This can help a business to determine where changes need to be made.

Seeking Legal Assistance

When it comes to job retention strategies, companies can’t take a one-size-fits-all approach. If you have questions about human resources management, you may want to consult with an attorney that specialises in employment law.

What the digital banking revolution means for Australian banks

January 23, 2020 by Reporter Leave a Comment

The future of banking is digital, and the Australian financial services industry needs to brace itself for a transformative year ahead.

“A digital transformation is inevitable in the Australian marketplace,” says Myles Bertrand, Managing Director APAC for Mambu, “however many of our established institutions are in dire need of a cultural overhaul before they can really embrace this brand-new world. Banks need to start thinking and operating like fintechs in order to maintain their position at the forefront of the Australian financial services industry.”

Mambu – launched in Germany but operating globally, including in Australia – works with banks, fintechs and telcos to help create a technology-first approach to banking, opening up new opportunities to optimise operations, ensure regulatory compliance and increase customer acquisitions.

In Australia in particular, it is the impact on regulatory compliance that is a key area of interest when it comes to the new era of digital banking.

“The good news is that digital banking is actually going to make it easier for financial institutions to comply with all of the different regulations,” says Bertrand. “It’s going to make it easier to track transactions, keep data safe and will also reduce duplication. So those organisations that make the transition from less secure legacy systems to cloud-based digital platforms, where security improvements are constantly made, can boast greater peace of mind and set themselves ahead of competitors.”

To stay in the game, banks need to be able to roll out products and services at a rapid pace, adding new features to platforms, while simultaneously enhancing existing ones. This kind of agility is next to impossible to achieve with most institutions’ legacy systems. However, composable banking architecture – the quick and flexible assembly of independent systems on a cloud platform – can provide the opportunity for organisations to create a dynamic platform with intuitive, responsive features that can be quickly and continuously updated.

A truly agile platform undergoes short, regular updates with a constant pipeline of improvements that are automatically layered on top of existing cloud technology and allows business to run uninterrupted on the front end. This allows financial institutions to make minor changes regularly, rather than major, infrequent updates that can cause significant disruption and draw the ire of customers, as has been the case with some traditional transformations.

With so many new players arriving in the marketplace looking to capitalise on the impending digital transformation of the industry, the key to successfully transitioning to digital banking is to look for proven, reliable fintech partners with experience and a successful track record in helping financial institutions make the switch. By working collaboratively with a proven digital engine, banks and financial institutions can build innovative integrations into new or existing product channels, creating simple, streamlined and automated customer experiences.

“I think the whole financial services industry – globally, not just in Australia or the APAC region – is going to be turned on its head over the next 12 to 24 months,” concludes Bertrand. “We really want to help banks take the leap and make the necessary changes to embrace the opportunities that digital banking can offer and set themselves up for success.

“As the looming fintech age forces institutions to digitise, innovate and scale to adapt to customer needs, those banks and financial institutions that can move at the pace of a technology company while remaining committed to strength, security and service will be the leaders of this new era.”

Myles Bertrand is the Managing Director, Asia-Pacific, for Mambu, the market leading cloud-based banking platform.

The Most Common Financial Mistakes Made By Startups

September 25, 2019 by Reporter Leave a Comment

As an entrepreneur, your day is full of finding your way, building and refining your services or products, growing your business and achieving your overall goals.

This can make it hard to keep up to date with all of the daily accounting tasks and the bigger picture finances. This is a problem because some important financial decisions and information can fall to the side.

If you are a financial whiz, you might still have a problem creating a financial plan and managing all of the finances. However, this is something that you need to stay on top of because it will affect the stability of the company and your ability to work towards your definition of success.

You will also need the financials to convince and assure your investors of the viability of the business.

Unfortunately, there are a lot of financial mistakes that a startup can make. Fortunately, when you know what these common mistakes are, you can take some steps to avoid them. Many of them are mistakes that you can easily sidestep.

So if you’ve got your financial startup ready to launch, here’s the mistakes you have to avoid.

Mistake #1 – Miscalculating Or Not Calculating Your Cash Burn

Not taking the time to do this will be a major issue. First, you need to know what cash burn is. The burn rate will be the amount of capital your business will go through each month to ensure it operates. If you do not have a clear understanding of this rate, you will have problems achieving your goals before you run out of capital.

A recent survey of new business owners has should that around one-third of them have underestimated their monthly expenses. Almost 20% of those surveyed also realized that they did not have enough financing for their business. It is very easy to miscalculate your costs and this results in your assumptions for initial capital being off. A good step to take will be to keep track of all the expenses you have.

To calculate your burn rate, you need to create a bottom-up projection that uses real-world variables. If you try top-down forecasting, you could be overly optimistic in your sales predictions and this will lead to an unrealistic expectation of revenue. Bottom-up projections are considered more realistic and will show you how much money you need to keep your business going month after month.

Reforecasting is also important and you need to do this. You will have to take into account variable and fixed costs to continually determine the real state of your business. If you are new to burn rates, it is recommended that more research be done on this topic.

Mistake #2 – Not Understanding Your Marketplace Completely

When you do not completely understand your marketplace, you are more likely to misprice your services and products. You should not calculate your costs and then add the margin that you would like to make. You have to consider your market position as well as the value of what you offer. It is better to start with price and work backwards.

When you calculate this, you need to come back to the marketplace and how it affects the price. You need to know who your clients are, what needs your offering fulfils and what you have to offer. Take a look at your competition and what differentiates you as well as the trends which affect your market. All of this will need to be combined to understand your market and how it affects your business.

Mistake #3 – Hiring And Expanding Too Quickly

The people in a company are one of the largest expenses they have. If you want to keep your costs low, your staff expenses should be the first place you look. A mistake that a lot of startups make is hiring too many people too quickly. Too many employees will drain your funds and affect your ability to keep the doors open.

It is not only the recruitment and salary costs that you need to consider. Max Funding ’s business loan team explain, “you also need to consider whether you need a larger office with more equipment and supplies for the new staff. There are also some psychological costs that you need to consider such as what will happen to these new people if your business does not grow as it should and you have to let them go. How your investors will take you needing to disassemble your team will also need to be considered. To overcome all of these issues, you need to hire slow.”

Mistake #4 – Hiring The Wrong People

Finance startup Credit Capital state, “a way to save on staffing costs is to hire for potential and not experience. You should not waste your money hiring experience for the sake of having experience. When possible, you should outsource your non-core tasks such as marketing, accounting and development”.

Mistake #5 – Handling Your Finances Yourself

If you have ended the seed round of funding, have many expenses or are earning real revenue, you need someone to manage your finances on a strategic level. A CFO will generally be the best person for this job. If you do not have much financial activity, a CFO might not be the best solution, but you will still need some help with the daily bookkeeping and accounting.

According to Robinson Accounting’s experts, “while you might have the accounting skills needed for block and tackle accounting, it will not be the best use of your time. It is better to hire a professional to help with this so you can focus on the core business. Administrative tasks can take your focus from where it really needs to be. So it’s vital to weigh up whether you’re actually getting value from saving money but losing time trying to do everything yourself.”

This does not mean that you need to hire a full-time accountant or CFO. If your startup is still small, you should outsource these functions and get the support you need on an as-needed basis.

Do you know of any startup mistakes we missed?

Let us know in the comments!

5 Tips To Buy A House In Australia In A Competitive Price

July 31, 2019 by Reporter Leave a Comment

Buying a new property is a big deal. One should not take it lightly. Proper research and evaluation should be there before making the final purchase. So, tips in this regard will be pretty helpful!

When you need to find your place, you need to get all the help in the world that you can. After you have done your research, you need to know about the proper procedure of buying a property. For this, you need to know about the regulations of the country. A visit to one of the many Australian accounting and law firms is a must.

The Australian Market

The Australian market has been seeing some drop in the real estate prices since 2014. There are many reasons for this drop, and the experts say that the trend will continue in a coming couple of years too.

For a regular customer, the top spots to look for a new property is below:

Photo courtesy: https://www.news.com.au/finance/economy/australian-economy/housing/

These are the areas where the prices are affordable. Most of the people opt for these areas as it favors the customers. But moving to such an area will also require you to know a few things about buying a new house. Here are a few tips for you:

1. Evaluate Your Finances And Budget

You’re probably wondering how much you can borrow from the bank. Good question! Get in touch with your bank and work out a plan. Mortgages are not easy. You need to select the best possible option.

2. First Home Buyers Grant

YES. There is a first home buyer’s grant! If you and your partner haven’t ever bought a property before, there’s a good chance you are eligible to receive the First Home Owner Grant (FHOG). This scheme varies state to state, so be sure to check with your local authorities.

Photo courtesy: https://www.realestate.com.au

3. Research The Market

It is almost obvious. You cannot hope to move into a new place without inspecting the market. You should know about the current trends of your locality. The best way to evaluate the markets is to check the future trends of the market. What will be the value of your property after a year?

4. Use A Buyer’s Agent

A buyer’s agent can be pretty handy in this regard! He will probably help you n the negotiation process. Moreover, he will have the knowledge that you cannot simply gain by visiting the area yourself.

5. Research The Property

You should ask the following questions:

· Why is the vendor selling this property?

· Are they looking for a quick sale?

· How long has the property been on the market?

· Is the buyer willing to negotiate on the price?

· Dos the property has any known issues in the past?

Hopefully, with these tips, you are all set to start your search for a new place! Get going!

5 Tips To Ensure That You Get The Right Personal Loan For Your Needs

April 22, 2019 by Reporter Leave a Comment

With the accessibility to financing today and also to technology, more Australians can access funding hassle-free. Online funding, for one, has become a very normal part of life where those seeking financing can do so with ease in order to pay for a home, car, boat, business, or any personal project you may be embarking on. Traditional financing institutions have a variety of loan products that can meet the needs of the average consumer, allowing you to pursue your goals.

A personal loan is one of the many products offered through lending institutions, and it allows consumers to borrow money for a variety of projects. Typically, consumers only need to supply lenders with the reason for the loan and other important information related to their financial health. Through the many personal loans, Australia can be the backdrop to fulfilling your financial dreams and goals, once you have secured the right financing to meet your needs.

Continue reading to learn how you can successfully obtain a personal loan that best meets your needs.

Consider The Purpose

When looking to take out a loan, consumers should pay attention to the purpose of the loan because it will help them in choosing a loan program that best suits their needs. For example, when taking out a personal loan used to fund a trip overseas, certain considerations will be of import. For one, the length of the loan is important because you want to pay it off quickly so as to avoid interest. The loan amount is important as well because the trip might not require full financing. When thinking deliberately regarding the loan’s use, consumers are more likely to make wise choices.

Get Schooled On Lending

Consumers should also take time to research different lending practices. In the last decade or so, financing has drastically changed to the point where consumers can choose from a variety of ways to fund a project. Furthermore, with the introduction of online institutions and a quick and easy application process, consumers can access funding quickly and easily. Also, lending institutions have made it possible for some people, who typically would not have access to financing, with the ability to borrow. Finally, with many of the lending institutions competing against one another, usual application standards can supplement an application that might not meet the normal standards.

Compare Rate Types

The two more popular interest rate types are fixed and variable with each having their own benefits. Both rates are set by the market and financing institutions, but the fixed interest rate does not change throughout the life of the loan. The variable interest rate loan, however, changes throughout the loan, and the great benefit to borrowers is that they can get a very low rate loan if the market is good, which decreases the total loan amount financed. Alternatively, if interest rates spike for any reason, the monthly payment can balloon increasing this balance.

Prepare Your Budget

Before you apply, consider putting together a budget to see how much of a loan you can actually afford. A simple budget can list all of your expenses and all of your income. Then, subtract the expenses from your income to get an estimate of how much extra income you have available.

Use An Online Calculator

Figuring out how much to borrow can begin right at home because today’s online calculators make doing the calculations very simple. Many calculators can give you a variety of information including monthly payment, interest rate, time, principal balance, and total payments. These calculators range from the very simple that asks you to plug in information to ones that can calculate for different factors.

Guaranteed Approval

Getting approved for a loan is not a difficult feat, especially with all of the tools available to consumers. In fact, most of the work required to get your loan approved can be done from the comfort of your living room. Ultimately, the more prepared you are before applying the more likely you are likely to successfully find a loan that will meet your needs.

Manage Your Expectations – What to Look For in a Property Manager

March 26, 2019 by Reporter Leave a Comment

Being a property owner is an incredible feeling, and it comes with untold benefits. What you may overlook is how consuming it can be to manage your property while also living your life and looking out for that next investment opportunity. Fortunately, there is a solution that has helped millions of homeowners come out on top, and able to mitigate the direct property management and bypass all the drama that can come with the rental market. Hiring a property manager is a worthy investment, but they are not all made equal. If you’re on the hunt for a property manager that will simplify your life, here is what you need to look out for so that you secure a great manager.

Great communication

It’s that million dollar question that everyone answers differently – how much contact is optimal with your property managers in Melbourne? A manager worth their salt will work out quickly just how involved you want to be, and when information should be expedited to you directly or withheld due to insignificance. If you yourself are not sure what sort of communication regime you are looking for, feel it out and understand what their communication structure is with their other investment owners and what they feel is balanced for you.

Reliable and reactive

When residential or commercial tenants are not in your properties, it can be stressful. No matter how good your property manager is, this is simply going to be a fact of life. A good property manager, however, will mitigate that rental income shortfall and be reactive enough to lineup another candidate and get contracts signed swiftly.

None of this is to say that there isn’t a rigorous screening process, it simply means that they will have warm leads ready to go should a lease be broken. An even better property manager will have a sense of whether a tenant is getting itchy feet or looking around, and can work with you to put wheels in motion should that transpire.

Portfolio management

How many properties do you currently own, and more importantly, how many do you wish to own? The number of properties and the size of these developments will govern what sort of property management arrangement you should seek and whether that will need to change as your portfolio expands.

The quality of a property manager does not vary depending on the size and number of your properties, so do your research before you choose. If your portfolio is split over more than one state as an out of state investor, you will need to decide upon the location of where you wish your property manager to reside.

Market driven

The property market is about as agile as it comes, rising and falling all too frequently. While you may not have your finger on the pulse nine times out of ten, it is a reasonable expectation that your property manager does. Look for a company or individual that live and breathe the property market so that they can advise you of the climate as often as you need, and spot opportunities for your existing and future assets.

Like any profession, there are people that see their job as just that – a job. Find that X factor within your next property manager and you will both have a long and successful future together.

You’ve worked hard to build your portfolio, and you want to see it managed and cared for with the same love and attention that you wish to deliver. By taking the time to find the right fit for you, you can set yourself up for an autopilot approach to your assets as you know they are in safe and more capable hands.

Paid invoices make the world go around

January 29, 2019 by Reporter Leave a Comment

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Late payments are the bane of a business owner’s life. They limit cash flow and prevent you from paying your own bills. In the aftermath, suppliers feel disgruntled, your stock runs low, and perhaps you can’t pay your employees. Whatever the effects, it’s safe to say, they’re not pretty. Unfortunately, this is something that typical business insurance policies don’t cover.

So how do you deal with late paying customers and clients? We’re glad you asked because there are a few simple measures you can take to protect you and your business.

Discuss terms upfront

Before you provide a service or a product, make sure that your customer or client understands the payment terms. Some business clients assume that they have 30-days to make payment while others may even assume they have three months. Be sure to clearly outline how soon they must pay so they can budget accordingly.

Ask for 50% deposits

Some service providers ask that their clients make a deposit of up to 50% of the full payment before they carry out any work. This 50% should ensure that your own expenses are covered and allows you to pay your employees or suppliers on time. Not all clients or customers will agree to this, so again, be upfront and honest about your plans.

Make late payments fees part of your terms

Late payment fees are a great way to discourage clients from taking advantage of the line of credit you extended. Once this is clearly outlined in your original payment terms, then they can have no complaints when you charge them extra for being late. Ideally, you’ll never have to charge them as this is more of a deterrent than anything else.

Offer discounts for upfront payments

A 5% discount for full payment upfront is a nice benefit that many of your customers and clients will jump at. While you may make a bit less on the deal, the security of having that payment upfront is well worth the cost. Just ensure that the discount doesn’t mean you lose money on the deal. No need to be too generous!

Consider a short-term loan

If all of your measures to limit or prevent late payments have failed, then you may find yourself in a position where cash flow is low and paying your own bills or employees’ wages is a struggle. In this case, a short-term loan could be the solution. Even if your credit score has taken a beating due to matters outside your control, a short-term lender will still be able to help you. While it’s not an ideal scenario, it does provide you with a safety net of sorts should your clients fail to make payment on time.

Don’t offer credit

This is the toughest one of all but the most effective. If you set a policy that all services and products must be paid for upfront, then you’ll never have a problem with late payments. You may feel like this isn’t possible, but it’s your business, and you can set your own terms. If you are providing high-quality service that guarantees satisfaction, then your clients and customers won’t think twice about paying upfront.

Unfortunately, late payments are part and parcel of business life. Dealing with them could be the difference between staying afloat and shutting up shop. So take a moment to consider the tips outlined above before agreeing to providing a service without upfront payment.

Economic Emergency – What to do When Hard Times Hit

July 20, 2018 by Reporter Leave a Comment

Photo by Noah Silliman on Unsplash

Financial hard times happen to the best of us. Whether it’s a failing economy or the loss of a job, struggling to pay the bills and trying to make ends meet can be exhausting and scary.

While there’s not much you can do to control the economy or even your employment, there are things you can do to improve your financial situation, secure your future, and weather any economic disasters that may loom over the horizon. The list below is designed to help you get through when hard times hit, so you come out on the other side with your financial life intact:

Avoid the Payday Loan Trap

While it’s tempting to head to a payday loan store when you need cash fast, this can be a serious mistake. Payday loans only add to your stress by hitting you with extremely high interest rates and even more outrageous fees if you can’t pay on time.

If you absolutely need cash fast a growing number of responsible microfinance lenders offer small cash loans online with less onerous terms Designed to help you out of a pinch without the astronomical fees, these options can help improve your financial resilience.

Do Away with Unnecessary Things

Many people spend money on non-essential items, leaving them less disposable income for the things they truly need. It can sometimes be difficult to distinguish between which items are necessary and which aren’t. The best way to do this is to write every purchase down along with its price.

At the end of the week, go through the list and decide which items you could do without. When you see the things you buy in a more objective light, it puts into perspective how much money you could be saving by reining in unnecessary expenditure.

Cut Back

Depending on your situation, it may make more sense to cut back on some things rather than cutting them out. For instance, do you really need an unlimited data plan for your cell phone? What about that premium cable package? How often do you actually watch all those movie channels? Cutting back on things you don’t fully use can add up to significant savings each month.

Consider Refinancing Your Home

If hard times have you struggling to pay your bills, but your credit is still in good shape, consider refinancing your home. This simple act could save enough money each month to help you ride out your financial difficulties much more easily.

Re-evaluate Your Insurance Policies

It’s very common to be over-insured, especially when you don’t fully understand complicated insurance lingo. You could be shelling out more money than necessary for more coverage than you need. To find out, and potentially save a lot of money each month, contact your insurance agent to discuss the details of your policies. Be sure you’re getting all the discounts available to you, including good driving record, theft deterrent devices, and safety equipment discounts.

Continue Saving for Retirement

Retirement will come, whether you like it, or not. You have to be ready when it arrives, and that means continuing to save for it no matter what your financial situation. Barring a complete financial loss, don’t stop putting even a small amount each month aside for your golden years, and don’t borrow against your 401k if you can avoid it.

Financial hard times can hit anyone. However, it’s how you react to them that makes the difference. Keeping a level head and using smart tactics like the ones mentioned above will help you ride out the storm with the least amount of stress and frustration.

How to Use Business Debt to Your Advantage

April 23, 2018 by Reporter Leave a Comment

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Debt is good. While this idea seems to go against common financial wisdom, in some cases, debt can be advantageous. The most nightmarish stories involve would-be entrepreneurs trying to establish their start-up in a market only to find themselves drowning in debt, whether the business is a good idea or not.

Using debt does not have to end with your business going under or you incurring a ridiculous amount of unmanageable debt. With a strategic plan that has a manageable budget, business owners can find incurring debt can work to their advantage. Whether standing on solid financial ground or trying to navigate the sometimes tricky business landscape, certain types of debt can be used in positive ways to save you money.

For ways to use debt to your advantage, keep reading below.

More Freedom

While in the midst of financial misery, debt consolidation loans from Latitude and other loan programs offer businesses teetering on the verge of collapse more autonomy. Typically, the ideal loan would allow a person low monthly payments with a low interest rate, something many consolidations loans offer their clients. More importantly, though, consolidation loan programs offer business owners a little more autonomy.

The alternative for business owners would be to seek funding from angel investors or others, but that would reduce the amount of control you have over your business. In situations where your business finances have been overextended, a consolidation loan provides you with a little more control over the everyday operations of your company, and more significantly, you retain full ownership of the business.

Certain industries like manufacturing and retail also benefit in terms of taking on financing. By virtue of the fact that materials have to be purchased to make products, financing these costs allows business owners a little more autonomy. In fact, when demand increases, financing is a realistic solution.

Tax Advantages

One of the major ways debt can be used to your advantage is in terms of offsetting tax liability. Lucky for you, the Australian government offers business owners the advantage of writing off several types of finance-related charges. Some debts that can be deducted include bad debts, credit card charges, and banking fees and charges. You can even deduct the amount paid from leasing an office for the purpose of running your business. In just tax deductions alone, businesses owners save thousands of dollars at the end of the year.

Lower Interest Rate

After completing your taxes, compare the percentage you paid in taxes with the percentage of interest you paid to the bank. Incidentally, this is a lot easier to figure with one loan as opposed to trying to figure out a percentage for multiple loans.

However, depending on the rate of your loan, you can find that debt works to your advantage in terms of the impact your tax deductions have on your interest rate or rates. At the end of the year, if the percentage of your business income you pay is less than or equal to the percentage of income your business pays in taxes, this is one way debt will have worked to your advantage.

Predictability

One of the best ways to use debt to your advantage debt is to use the fact that most loan terms are predictable. This predictability allows you to plan for the future, whether you plan to relocate or expand. Most financial institutions provide business owners with financing solutions that allow them to plan for long-, mid-, to short-term goals.

Using a Disadvantage to Your Advantage

Common financial wisdom dictates that debt-free is the ideal goal most businesses should achieve. However, if you are just starting your business or find yourself in a place where financing is mandatory for growth, debt becomes a necessary evil, maybe. Ultimately, debt can be used in some cases to offset tax liability while in the long run giving your business the autonomy it needs to thrive.