Loans

Outsourcing your day Job

March 30, 2018 by Reporter Leave a Comment

Learn to outsource your job and make more time for this

_{Credit : Flickr Relaxing in Maldives by nattu is licensed under CC BY 2.0}

The outsourcing revolution

Entrepreneurs regularly outsource to save time, access specialised expertise and get work done. In the last decade as access to the internet and data-speeds have improved, particularly in developing countries, an entirely new freelance workforce has emerged online.

Many skilled freelancers are based in lower-cost countries such as the Philippines, India or Pakistan, and can be hired for significantly less than local talent. Fuelled-by, or perhaps fuelling this phenomenon, freelancer marketplaces have exploded in popularity, stimulating a rush of new talent into the global marketplace.

These trends now make it possible for employees to outsource aspects of their jobs to relieve stress and win back time for things they’d rather be doing.

Where to find freelance talent

Virtual marketplaces such as Fiverr.com, UpWork.com and others provide online platforms where freelancers can advertise their services plus examples of their work, their rates and related information. Buyers can search for freelancers by a range of categories or keywords, save profiles of promising contractors and then interact with them by messaging service.

Buyers can post jobs and invite applications from qualified freelancers and when a job is agreed by both parties, these platforms even manage the contract, billing, payment and receipt aspects of the relationship. All of these features make it easy to find, engage, manage and pay for freelance talent, not just for business owners, but for employees themselves.

_{You can access freelancers like this graphic designer using marketplaces such as UpWork.com}

_{Source: Flickr – Credit : Design freelancer working b2b business by thods is licensed under CC BY 2.0}

What kind of talent is available?

If you’re thinking freelancing is only good for building a mobile app or procuring some cheap copywriting, then you might be surprised and the sheer range of talent available.

UpWork.com, which describes itself as ‘the world’s leading freelancing website’ claims that “annually, freelancers are earning more than $1 billion via the site each year and providing companies with over 3,500 skills.”

Need an academic paper written? What about a bookkeeper? Perhaps you need an interior design for a new rental property you’re considering buying? Or how about a webpage translated into Chinese? All these are available, and more, often at very low prices.

Can I outsource my job to freelancers?

If you are an employee looking to outsource aspects of your role, the nature of the work you do will determine what aspects can and cannot be outsourced. Most jobs have a range of common elements that may be outsourced cheaply and effectively.

Outsourcing your general administration can save you hours of unproductive time. Managing emails, scheduling meetings, formatting documents, preparing Powerpoint presentations, filing, managing your digital documents and countless other time-consuming yet necessary tasks can be outsourced effectively to a virtual administrative assistant.

_{Caption: Feeling frustrated at work? Outsource the admin and get your life back}

_{Credit : Flickr – Frustration by peterhess is licensed under CC BY 2.0}

What does it cost?

For as little as $200 per week, you could employ a full-time administrative assistant. That means that for around $10,000 a year, you could have a full-time person working for you, available by phone or email or instant-messaging application, ready to work at a moment’s notice.

Depending on your personal financial situation, it may also be possible to claim the expense as a tax deduction related to your employment. As a result, the real cost of engaging the freelancer may be far less.

If you’d like to outsource but don’t have the money available, there are plenty of ways to find the cash you’ll need at short notice.

Is it legal?

Your employment agreement and the terms and conditions of your employer may or may not prohibit you from outsourcing work without their express approval. Factors like confidentiality deserve careful consideration. As a rule, don’t go outsourcing your entire job like this person did.

Consider also what other aspects of your life admin you could outsource to free up to time you’d rather be spending on more important things.

Should I tell my boss?

Aside from the ethical and moral issues, there’s a good reason you should consider sharing your plan with your boss. If you can make a convincing business case for it, such as the amount of time you could spend acquiring new clients, then your boss may consider reimbursing you for the expense.

What else should I consider?

Managing freelancers to deliver work is a skill, meaning it takes time to learn and perfect. Start by outsourcing small tasks and practice the act of working with a third-party to get back the results you expect. It can take time to develop an efficient and productive working relationship. Don’t put yourself at risk by outsourcing critical work without having a backup plan in place (which may simply be you doing the work yourself).

Bottom line

Jump online and check out a freelancer marketplace for yourself. Start small and learn how to take advantage of the wonderful world of freelance available to you.

How Merchant Cash Advances Are Helping Small Businesses

October 25, 2017 by Reporter Leave a Comment

Small businesses play an important role in the Australian economy by continually meeting the increasing demand for jobs. However, small businesses that want to expand are often held back by lack of working capital and the difficulty of obtaining business loans.

Some turn to local banks, but banks do not make it easy for small businesses to acquire loans if they’ve not been in business for many years. Fortunately, these days there are other financing options for small businesses, and one of them is the merchant cash advance.

So, what is a merchant cash advance, and how does it work?

Merchant cash advances are innovative financial products offered by companies like Brisbane-based Beyond Merchant Capital that are ideal sources of additional working capital for businesses for which credit card sales make up a substantial proportion of their turnover.

To clarify, a merchant cash advance is not a business loan, but rather an advance based on the credit and debit card revenues of the business.

A lot of small businesses turn to merchant cash advance lenders because the application is fast and easy – whereas bank loans can take a long time to approve. Also, paying the advance is faster because the lender takes an agreed percentage from the business’ debit and credit card sales, so the higher the sales, the quicker the debt is paid off.

Pros of a Merchant Cash Advance

You get money quickly.

This is one of the biggest advantages of a merchant cash advance. Unlike bank loans where it takes weeks, or even months, to get approved, merchant cash advance lenders have quick application processes.

As a result, borrowers get a response in hours and if approved they receive the funding in days.

Providing collateral is not a requirement.

The approval of a merchant cash advance is based on the past credit card transactions of the business. If the business has a steady flow of credit card sales, the advance is likely to be approved – whereas with bank loans only about a quarter of small business loan applications are approved.

The amount required to pay monthly is not fixed.

With a merchant cash advance, the monthly payment is a percentage of the monthly credit card sales. So, more cash flow means that the advance can be paid off sooner. On the other hand, if business is slow, it will take more time to pay off the debt.

A good credit rating is not required.

Merchant cash advance lenders are more lenient when it comes to business credit ratings because they base the approval on how strong the credit card sales are.

Cons of a Merchant Cash Advance

A merchant cash advance may have higher interest charges and fees.

Banks are regulated by the government and have access to sources of funding at cheaper interest rates, so can offer business loans at lower interest rates than other financiers.

On the other hand, merchant cash advance lenders’ may charge higher fees and interest rates because their industry is not subject to the same regulations as banks.

Conclusion

Merchant cash advances are one of a number of new products offered by financial services providers that play a vital role in keeping small businesses alive.

This type of financing helps small businesses grow by providing fast access to funding for expansion when businesses see suitable opportunities to do so.

Choosing which type of financing to apply for should be thought about carefully. A merchant cash advance is best suited to businesses with a heavy reliance on credit card sales.

A merchant cash advance can be more expensive than a bank loan, but if the business is thriving, it is easier to pay.

Funding the Future of Social Enterprise

February 6, 2017 by Reporter Leave a Comment

It’s a sad fact that the wealthiest 62 people in the world have as much combined wealth as the poorest 3,600,000,000. The image of a business tycoon lording over his employees, exploiting them for their financial game, is not a cartoon – it is a reality.

You can check your ranking here: The Global Rich List

Thankfully the business world is filling up with social entrepreneurs who are making it their mission to make the world a better place. That they can do this while still creating a viable and successful business is inspired. In fact, many business leaders are reaching out and providing investment and creating enterprises to help their fellow human beings lift themselves out of poverty both at home and abroad.

Poverty is Right at Your Doorstep

When you think about poverty, your mind might be brought to sub-Saharan Africa where millions are starving and homeless and sick. And for $1 a day you can help them through a charity of your choice.

Today, there are more than 2.7 billion people living on $2 a day or less, a number which is greater than the total population of the plant in 1950. And while world poverty levels are shrinking, there is still much we can do, we just don’t often know how.

Impact investor and social entrepreneur Mal Warwick and Paul Polak discuss in their book, The Business Solution to Poverty, that efforts to eradicate poverty have only rarely been directed at poor people or the challenges they face, with donations of food and aid being preferred by NGOs and governments as there’s never enough money available for foreign aid or philanthropy to expand successful programs. They believe, like many others that only the private sector has the resources to address the problem of poverty. But, you don’t need to go to Africa, or the Middle East to find people in need, there is pain and suffering right here in Australia.

In the Business of Helping People

Social enterprises are businesses that trade to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment. Essentially, innovators taking a business-like approach to solving social problems

The Government entices social businesses through initiatives like the The Social Enterprise Development and Investment Fund (SEDIF) which provides funding to social enterprise. A total of 105 social enterprise projects have been funded to the total value of $73.6 million through the SEDIF.

Alternative finance entrepreneur Shaun McGowan of Lend Capital says – “social entrepreneurialism is the new breed of philanthropy and it is attracting Australia’s top entrepreneurial minds.”

The reason it is becoming such a trend is not only the benefits of helping someone in need; there are several synergies that companies look for when offering support to social entrepreneurs and social businesses:

· A natural fit with the brand; with

· Commercial viability to impress investors and customers; that

· Allows them to flex their creativity; and

· Innovate to create something worthwhile and profitable.

The Social Enterprise Awards

The Social Enterprise Awards are the only national awards for Australian social enterprise. Their aim is to both increase the awareness of social enterprises through their high profiled event.

The awards were established in 2013 and are run by Social Traders, one of Australia’s leading social enterprise organisations. Social Traders, help develop, open markets and provide appropriate capital to social enterprises. Through their social enterprise development products and industry leadership activities they aim to break the cycle of disadvantage and build resilience in Australian communities through social enterprise and create impactful change.

Business Ventures with Indigenous Traditions

It is a sad fact that indigenous people in Australia are the most disadvantaged especially in business ventures – it is not always easy… However, social entrepreneurs, The Tjanpi Desert Weavers (NT) were the winners of the 2016 Social Enterprise Award Women’s Impact Award. Tjanpi was formed in 1995 in Ngaanyatjarra Pitjantjatjara Yankunytjatjara (NPY), to provide indigenous women in the community with culturally appropriate employment on their homelands to better provide for their families.

The NPY Lands are vast stretches of the outback, covering desert lands and is an area of extreme economic disadvantage and geographical isolation for Indigenous communities with very limited prospects for employment. The basket weaving tapped into the traditional natural fibre work the NPY women had long been practicing to create items for daily use and special cultural customs. They embraced the contemporary spin on this traditional practice, creating baskets, vessels and vibrant sculptures using grasses, fibres, feathers and other materials collected from the land. There are now 400 artists ranging in age from early 30s to women in their 70s, operating in 26 communities across 350,000 square kilometres of the NPY lands. Their work is bought and sold by the Tjanpi group and has been included in art exhibitions throughout the world.

The sector is one which is growing and will continue to grow. Organisations like Social Traders and Social Ventures both provide resources to social enterprises, bring focus to them and help business people invest in and create their own social enterprises.

Although eradicating poverty and bettering the world, is a daunting task, through enterprises like the Tjanpi Desert Weavers and others, lives are bettered, people are lifted out of poverty while they are respected and listened to. Which is all any of us want.

About the Author

Charlie Wilson is a freelance writer and small business journalist with a broad range of experience in the Australian start-up scene. Connect with him at Authorflair.com for more insights into Small Business and Entrepreneurialism.

Is it the end of pay day loans in Australia

November 10, 2016 by Reporter Leave a Comment

Payday loans, which is a popular concept in the USA now has a flourishing and growing industry in Australia. It has grown in popularity in recent times in the US due to the failing economy and jobs situation in United States. In Australia recent job losses with the downturn in mining industry, random corporate job cuts and poor financial management has led to a growth in pay day loan companies.

There has been a spurt in growth of online payday loan companies that lend based on people filling in forms online and getting a loan with ease. These companies have got millions of dollars in loan books and are now coming under scrutiny for unfair lending practices by the regulatory body(ASIC).

The loan market for small loans or micro loans (payday loans) has gained notoriety not only in the Australia market, which is more recent, but has come into regulators scrutiny in many other countries like India and US and New zealand.

This market caters to people who are in desperate need of money and who most of the times are already in financial strife. Lending to such a group becomes a tricky situation where lending companies needs to grow their loan books, yet can’t really take undue advantage of the person’s poor financial position. Lending to them can put them at more risk and put them customers in more strife.

The question of balancing responsible lending and growing your business at the same time is a very fine line in this niche and local micro lending companies like cash converters and nimble have been taken up by ASIC for not being upto scratch on their lending practices.

Recently, following an ASIC investigation, payday lender Cash Converters (online website at www.cashconverters.com.au ) will refund $10.8 million to consumers who received small amount loans under approximately 118,000 small amount credit contracts. Cash Converters has paid a $1.35 million penalty following the issuing of infringement notices by ASIC.

ASIC had concerns that Cash Converters did not take reasonable steps to verify consumers’ expenses in accordance with its responsible lending obligations and subsequently entered into them in breach of the credit legislation.

Many customers of Cash Converters Loans may be eligible for a refund

· Refund eligible consumers $10.8 million in fees through a consumer remediation program overseen by an independent expert who will report to ASIC; and

Consumers who had two or more small amount loans in the 90 days before taking out another small amount loan through Cash Converters’ website during the period 1 July 2013 to 1 June 2016 should expect to be contacted in due course with information about their refund.

If you think you may have entered into a loan contract with Cash Converters (either in-store or online) that was unsuitable, you are encouraged to lodge a complaint with the Credit and Investments Ombudsman. If you need help lodging a complaint with the CIO, you can talk to a free and independent financial counsellor by ringing 1800 007 007 during business hours.

ASIC’s MoneySmart website has useful guidance on how payday loans work and alternative credit options.

Treasurer Scott Morrison slams banks for not passing on full interest rate cuts

August 3, 2016 by Reporter Leave a Comment

Australia’s Reserve bank has reduced interest rates to a record low, cutting its cash rate from 1.75% to 1.5%. while the reserve bank board and government hopes the further cut will boost the labour market and economic growth, the banks are not entirely supporting this.

Banks in recent times have either not been passing on the interest rates reduction fully or delaying passing on reduction in mortgage rates , in the process making millions of dollars while they delay.

The big four banks caught most people off guard by actually lifting some key deposit rates and increasing their revenue.

Commonwealth Bank will cut its standard variable interest rates for mortgages by 0.13 percentage points. The biggest major bank reduction was Westpac’s 14-basis-point cut for some of its home loan customers

· Commonwealth Bank by 0.12 percentage points

· ANZ by 0.12 percentage points

· National Australia Bank 0.10 percentage point

· Westpac Bank by 0.14 percentage points

Treasurer Scott Morrison Yesterday told Sky News "we would like to see them pass all of these things on".

"What we’ve seen from at least the two that have made a decision is not the traditional response," Mr Morrison said.

"It’s not like they didn’t pass it all on and did nothing else. What they’ve done is they’ve cut their mortgage rates and they’ve increased their deposit rates."

Mr Turnbull said the cuts were not enough. Addressing media in Canberra, he said the banks should pass on the rate cut in full or explain the decision "fully and comprehensively" to their customers

RBA governor Glenn Stevens said in a statement recent data suggested growth was continuing at a moderate pace, despite a big decline in business investment.

Tuesday’s board meeting was Mr Stevens’ second last. He will be succeeded on September 18 by his deputy, Philip Lowe.

7 Things You Can Do When You Own Your Own Home

March 24, 2015 by Reporter Leave a Comment

Owning your own home is a great dream of many young Australians, or even many older Australians who haven’t quite managed to get there yet!

The reasons for wanting to own your own home are rich and varied, and different from person to person. It might be that you love painting the walls of your home every six months. If so, then a rental house probably isn’t for you! Other people like to build things in their living room out of clay and Papier-mâché. This sadly will damage the floor of a rental house, so if this is you, you big artist you, you had better start saving for your own home now! If you’re worried about the finance side of things, why not browse home loans on the Homestart website for some advice and inspiration?

We have taken the liberty of compiling a list of seven things that you can do when you own your own home as an added incentive! So without further ado, let’s get started.

1. You can paint the walls, the ceiling, and the floor any colour that you like! You can also paint them any time you like as well, which means that you can constantly update the living room to suit your mood if you so desire! If you’re a big decorator but concerned about the cost of the paint why not think about getting some wall paper or fun coverings?

2. You can decorate the place however you want and not worry about putting nails in the wall for the paintings! If you have a particularly large collection of art, this is going to be a big game changer for you! Finally you can have the gallery room you have always dreamed of!

3. You can have people around in your backyard and put down a giant slip and slide, knowing that the grass in’t going to be an issue. If you ruin it, it’s your own fault – no landlords to worry about!

4. You can renovate when ever you want to change your home around, without having to ask permission. Think back to all the share houses that you lived in when you were studying and travelling around… I bet there were some rooms that you could’ve put some extra love and care into! Well now you can flex your designer muscles whenever you feel like it. Don’t like that wall? Great! Knock it down!

5. Have a spare room why not think about renting it out on Airbnb for some extra money? It might be just the spare cash you need to start planning a renovation, which after all you can do whenever you want, because you’re a homeowner, remember?

6. You can move out of it and get tenants in to rent it while you go travelling overseas, giving you some pocket money to play with! This one is actually a really key benefit to owning your own home, because the one of the purposes of owning your own home – apart from being a home for you to live in – is that it’s a way to generate money for retirement and to invest again.

7. You can use the money from the home that you own in the form of leverage to buy another house as an investment property. Now, if the last item was key, then this is completely integral to your wealth plan! Think about buying a house not only as a home but also as an investment for your future. Good luck, and happy saving.

The best things come to those who wait (and those who save) so if this list has inspired you, get started today. Don’t waste another moment!

Low doc loans solutions for self employed business people

March 5, 2013 by Reporter Leave a Comment

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?

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.

Bankwatch – Rate Cut Update

October 2, 2012 by Reporter Leave a Comment

2 October 2012 – At its meeting today, the RESERVE BANK OF AUSTRALIA Board decided to lower the cash rate by 25 basis points to 3.25 per cent, effective 3 October 2012

Treasurer Wayne Swan welcomed the RBA’s decision, saying "Australians deserve cost of living relief and today that’s what they got".

Change in rate cut – Oct 2012

Monetary policy decisions are expressed in terms of a target for the cash rate, which is the overnight money market interest rate.

Interest Rate Cuts History 2008–2012


Effective Date	Change in cash rate Percentage points	New cash rate target Per cent
3 Oct 2012	-0.25	3.25
5 Sep 2012	0.00	3.50
8 Aug 2012	0.00	3.50
4 Jul 2012	0.00	3.50
6 Jun 2012	-0.25	3.50
2 May 2012	-0.50	3.75
4 Apr 2012	0.00	4.25
7 Mar 2012	0.00	4.25
8 Feb 2012	0.00	4.25
7 Dec 2011	-0.25	4.25
2 Nov 2011	-0.25	4.50
5 Oct 2011	0.00	4.75
7 Sep 2011	0.00	4.75
3 Aug 2011	0.00	4.75
6 Jul 2011	0.00	4.75
8 Jun 2011	0.00	4.75
4 May 2011	0.00	4.75
6 Apr 2011	0.00	4.75
2 Mar 2011	0.00	4.75
2 Feb 2011	0.00	4.75
8 Dec 2010	0.00	4.75
3 Nov 2010	+0.25	4.75
6 Oct 2010	0.00	4.50
8 Sep 2010	0.00	4.50
4 Aug 2010	0.00	4.50
7 Jul 2010	0.00	4.50
2 Jun 2010	0.00	4.50
5 May 2010	+0.25	4.50
7 Apr 2010	+0.25	4.25
3 Mar 2010	+0.25	4.00
3 Feb 2010	0.00	3.75
2 Dec 2009	+0.25	3.75
4 Nov 2009	+0.25	3.50
7 Oct 2009	+0.25	3.25
2 Sep 2009	0.00	3.00
5 Aug 2009	0.00	3.00
8 Jul 2009	0.00	3.00
3 Jun 2009	0.00	3.00
6 May 2009	0.00	3.00
8 Apr 2009	-0.25	3.00
4 Mar 2009	0.00	3.25
4 Feb 2009	-1.00	3.25
3 Dec 2008	-1.00	4.25
5 Nov 2008	-0.75	5.25
8 Oct 2008	-1.00	6.00
3 Sep 2008	-0.25	7.00
6 Aug 2008	0.00	7.25
2 Jul 2008	0.00	7.25
4 Jun 2008	0.00	7.25
7 May 2008	0.00	7.25
2 Apr 2008	0.00	7.25
5 Mar 2008	+0.25	7.25
6 Feb 2008	+0.25	7.00
Glenn Stevens, RBA Governor said The outlook for growth in the world economy has softened over recent months,Growth in China has also slowed, and uncertainty about near-term prospects is greater than it was some months ago. He also said the terms of trade have declined by over 10 per cent since the peak last year and will probably decline further

Loans

Outsourcing your day Job

How Merchant Cash Advances Are Helping Small Businesses