What to Consider Before Applying for Small Business Funding

Whether you have just set up your small business or have been running it for a while, there’s a high chance that you’re going to need some additional funding. Although it’s easier than ever to start a small business online with whatever you have in your bank account, many business owners find that borrowing money helps with improving branding, hiring an employee, outsourcing to freelancers or specialist companies, and reaching out to potential customers. Getting a business loan is difficult for many new, small companies. But the good news is that there are several small business lenders who may be willing to accept your application and provide you with the funds that your business needs to grow.

Reasons to Apply for a Short-Term Loan:

First of all, it’s important to determine the right type of funding for your business. If you need the cash to cover an emergency expense or a sudden loss of cash flow, a short-term business loan might be ideal for you. These loans are designed to be taken out for a short period of time to cover unusually high expenses and keep your cash flow positive. They are often used for purposes such as making emergency repairs, hiring additional temporary staff during busier periods, or when you expect your cash flow to improve soon and need additional funds to keep operations running until then. Find out more about qualifying for a short-term business loan at advancepointcap.com.

Long-Term Financing Options:

On the other hand, you might be looking for funding options that are available to your business over the long-term. A business credit card is often one of the most effective funding options available as it provides you with an ongoing line of credit that you can use whenever is necessary for making purchases, upgrading equipment, investing in services, and more.

Getting Your Business Plan in Order:

Whether your business needs short- or long-term financing, it’s important to make sure that everything is in order before you apply. Any lender will want to see a copy of your business plan before they consider your application, so it’s a good idea to go through this document and make sure that it is up to date. If you are just setting up your business and have not yet written a business plan, there are plenty of online resources that you can use to help you create one.

Your Business Credit Score:

Bear in mind that your business’ credit score will be taken into account when applying for short- or long-term funding. This applies to any lending that you have participated in and how it was managed. If your business is currently in debt, it may be necessary to pay these debts down before you can apply to borrow more. Issues like missed payments and defaults will also be taken into consideration. If your business is brand new, your personal credit score may be examined instead, so it’s worth taking steps to improve it before applying.

If your business needs funding, determining the exact type of funding you need and ensuring that your company is in a good position to borrow is crucial to improving your chance of acceptance.

Applying for a Personal Loan? Follow These Tips

Personal loan is considered as one the most convenient way to meet any immediate financial emergency. Whether you have any medical emergency at your home, need to fund your child’s higher education, or even wish to clear all the outstanding debts, personal loan is the immediate choice to get funds without any hassle. These loans are easy to access as opposed to home loans or car loans because banks do not require any security for personal loans. 

The interest rates applied to personal loans are comparatively higher than any car loans or home loans because banks consider personal loans as unsecured and undertake higher risk in providing personal loans. Before applying for the loan, it is essential to understand your financial needs and terms of the loan. Take some time to calculate the EMI amount that you easily afford during your tenure. 

To help you with this, we are here with some important points to consider before you approach your bank and apply for a personal loan.

1.Check Your Credit Card Score

Whenever you apply for a personal loan, the banker goes through your credit report to see the number of applications you have sent to different banks. If your credit report is full of different applications, your credit score falls. So, to avoid any rejection from the bank, it is advisable to check your credit report before you apply for a personal loan.

2.Compare the Interest Rates 

There are several platforms available to compare interest rates offered by different banks. Comparing the interest rate helps you ensure that you receive the lowest interest rate. Also, enables you to select the best interest type which makes the repayment of EMI easier.

3. Calculate all the Costs

When applying for a loan, there can be numerous loan processing charges like prepayment fee, processing fee, late payment fee etc. Consider all the charges to get a clear estimation of the total expenditure. Calculating these types of charges along with EMI help you decide the most affordable loan for yourself.

4. Consider your financial needs for picking the appropriate loan

List up all the requirements and then prioritize them to finance with a loan. There can be numerous financial needs like wedding, medical emergency, buying a vehicle or to plan a holiday. Decide the loan amount based on the expenses associated with your requirements. Consider flexi personal loans if your monetary needs are unpredictable. 

5. Evaluation of your ability for the repayment of the loan

Before borrowing, one should always be ready with the preparation of  repayment. You should have the ability to pay the EMIs using your income. For this, you can use several calculators to estimate the monthly EMIs in advance to plan your payments accordingly.

6. Consequences in case of failure in repayment of Loan 

There might be some serious implications if you fail to repay the loan amount. Make sure you pay all the EMIs on time as delayed or deferred payments will not just make you an unreliable customer for the lender but you will also face penalties which will automatically increase the loan amount.

7. Avoid gimmicks

You may come across some artificially low interest rates by some lenders. These types of gimmicky schemes often turn out to be more expensive than others. Generally these are based upon floating interest rates which makes the interest rates appear low in the beginning but with time it increases substantially.

8. Read the complete loan agreement

It is essential to read all the details of the loan agreement to avoid any unpleasant surprises later on. Understand all the charges, fees and penalties to get aware of the terms & conditions of your loan.

Personal loan might be the last option to meet your financial needs but they do have some drawbacks. What if you plan your money in advance and be ready with your funds for any type of emergency. There are several options available in the market to save your money to get good returns over a period of time. If savings are not enough, you can go for various investment plans and achieve your financial goals. If you need financial stability in your life, investment is a good option to get you there. There are several benefits of investments which makes you get started with it. 

Benefits of Investments:

Quality investment is one of the best ways to achieve your long term financial goals.

 

1. Helps you build wealth-Channelize a part of your monthly savings into investments based on your financial needs. You should be clear about your financial goal whether you need funds for your trip,buy assets, or to plan for your retirement. To start with this, you simply need to set an objective of investments and then accordingly select the tenure and the perfect investment tool for it. 

 

 

2. Beat the Inflation- The average rate of inflation is around 3% and if you invest money, you will earn a 7% average rate of return. This way you will stay ahead of inflation and can increase the money value.

 

 

3. Retirement Funds- The power of compounding works best if you want enough funds after the retirement period. Compounding is when your interest starts earning interest. This way you can earn a good amount for your retirement.

 

 

4. Save on your Taxes- There are several investment options available in the market that can help you save on your taxes.

 

Taking a personal loan to meet your financial needs has its own advantages and disadvantages. If you are satisfied with the terms & conditions of loan agreement, check all the above mentioned points to consider before applying. And, if you want to grow your funds for a safer future, you can go for an investment option. Whether you have a financial goal of 10 years or more, quality investment helps you reach your goal faster. Go for the best suited investment plan according to your needs.

5 Most Promising Financial Products in 2021

Is it time to give your finances a makeover? Whether you have accumulated a large sum of money or you have recently pulled yourself out of debt and you wish to manage your money better, it might be time to do a little inventory and establish some new goals for your wallet.

When you are trying to figure out the best path to improving your financial health, the world is truly your oyster. The financial industry – from the corporate titans to the small fintech outfits – has come up with a treasure trove of products and services to take care of your money.

To make your journey to financial wellness a little easier, we have compiled a list of the top financial products everyone should look into this year:

1. Wealth Management Apps

Do you have time to sit down with a cup of coffee and comb through your financials for a couple of hours? If not, you can automate this process by utilizing any one of the many wealth management Apps available today.

Online wealth management Apps are great because they monitor your spending, update you on your goals, offer personal finance tips, and even encourage you to better take care of your dollars and cents.

Plus, some Apps can even invest for you, with some even using your spare change!

So, what wealth management apps should you consider? Here are a few of the most popular ones:

  • Acorns: This app takes your virtual change out of your account and invests the money.
  • Mint.com: A budgeting website and app that gives you a detailed presentation of your budget, transactions, and analysis.
  • Finch: This innovative hybrid checking and investing App, lets you instantly access your invested funds.
  • Personal Capital: This app tracks your budget while also giving you insight about your investment accounts.
  • Empower: This service integrates budgeting with accrued saving, setting weekly and monthly spending limits.

The attractive aspect of these Apps is that they are free to use!

2. All-in-One Checking and Investing Account

If you have a lot of funds sitting in your checking account, it is dead money. Many consumers will rely on their checking account as an emergency fund source or as a financial cushion. But aside from covering the necessary day-to-day and month-to-month bills, the money in your checking account serves no other purpose. And, since the dollars in this account are not earning interest, these funds are in fact losing value when you factor inflation. 

So, what is the alternative? Perhaps an all-in-one checking and investing account is something to think about for your finances.

This account essentially blends your banking and investing needs into one convenient account, from buying that daily latte to paying your rent to investing in an index fund. And, perhaps the most appealing benefit of them all, is that it provides daily returns. Instant liquidity and regular growth: a savvy financial product for any beginner investor!

3. Robo-Advisors

Are robo-advisors the go-to tool for investing in the future?

Robo-advisors are digital platforms that give users automated and algorithm-driven financial planning services with little to no human supervision. Everything robo-advisors do is based on the information from clients.

Robust financial planning, enhanced security features, and detailed portfolio management – these are some of the features of robo-advisors.

Could they replace conventional financial advisors? Consider this from Investopedia:

“With more than $250 billion currently under management in the U.S., various industry studies predict that the amount managed by robo-advisors will continue to grow at a torrid pace. At one point, many even predicted that robo services would drastically reduce or eliminate the need for traditional advisors.”

Some financial institutions are choosing to blend the human with the robot, providing the efficiency and convenience of a robo-advisor, with access to personalized service where needed.

4. Value Dividend Stocks

Interest rates are at all-time lows across the globe, encouraging consumers to dip their toes in the financial markets to receive more than a few cents on their savings. But what should investors even buy if they’re looking to reduce risk but maximize returns?

Although everything comes with risk, your best option might be value stocks that pay a dividend.

A dividend is a portion of the company’s profit that is paid to shareholders every month, quarter, or year. This strategy is beneficial for two reasons: you receive a capital gain from a higher share price, and you earn a regular income.

Here are some value dividend stocks that have not missed a dividend payment and have been steady in their yields:

  • International Business Machines (IBM): 5.58% yield
  • World Wrestling Entertainment (WWE): 0.99% yield
  • Exxon Mobil Corporation (XOM): 2.20% yield
  • Brookfield Infrastructure Partners (BIP): 3.81% yield
  • Walmart (WMT): 1.45% yield
  • Suncor Energy (SU): 3.44% yield
  • Nutrien (NTR): 3.16% yield

5. REITs

After watching the multiple real estate shows on television, you have probably gotten the itch to participate in real estate investing, whether it is flipping properties or earning rental income.

While appealing on screen, in reality real estate is a hefty commitment, demanding time, energy, and considerable financial resources. Not to mention stress. If investing in real estate doesn’t fit into your current situation, there is an alternative: REITs.

A real estate investment trust, or REIT, is a company that owns and operates income-producing commercial, industrial, or residential real estate. REIT investors earn a monthly or quarterly dividend, without the headache of owning a physical property!

So, what are some REIT products you should look into in 2021? Here a handful to consider:

  • Prologis (PLD): 2.45% yield
  • Public Storage (PSA): 3.60% yield
  • SBA Communications (SBAC): 0.71% yield
  • Equinix (EQIX): 1.57% yield
  • American Tower (AMT): 2.25% yield

The financial industry is known for its impressive number of financial products. You can find anything and everything for any purpose or goal. But knowing what to research and what to buy in 2021 – and beyond – can be a feat in and of itself. For more information on how to get your money to work harder for you this year, talk to someone you trust who prioritizes savvy financial management, or reach out to a financial expert who has experience in any of the products we’ve listed above.

Registering a WFOE in China as a US Entrepreneur: Why You Should Work with an Agency

For more than two decades, China has surprised everyone because of its meteoritic economic growth. Almost all top companies, from Dell to GM, have some presence in China or plan to go there. If you are a US citizen and want to see your company grow rapidly, the idea is simple, incorporate your business in China. 

The Chinese administration adopted a pro-business approach that targets two things, attracting new businesses and supporting them to grow. In addition, the country has a large market that you can capitalize on to catapult your business to the next level. 

To take advantage of these opportunities, you need to register a company in China, but this can be complicated because it involves dealing with multiple offices and preparing loads of documents. This is one of the reasons why you should consider working with agencies of experts. 

Keep reading to identify more benefits of working with an agency for company incorporation as a US entrepreneur.  

Agencies Work with Experts 

The most challenging process of registering a WFOE in China is probably the large number of documents that need to be prepared. Most of these documents, such as articles of association and the business structure might be too complex, especially to those without legal backgrounds. 

However, agencies are run by experts in company registration. This means that they know how to prepare the documents professionally, raising the chances of your company’s application getting approved. 

Having been in the Chinese market for some time, it will also be easier for the agency to navigate through the different entities. Whether it is getting approval for the business name or application for the business license, the agency will make the process simpler, convenient, and cheaper. 

Agencies can Tell You Strategies that Work and Those that Don’t 

For your business to be successful, you need to use the right strategies. However, a lot of businesses fail within their first year because they adopted the wrong strategies. This brings us to the main question, “How do you identity the right strategy for your company in China?” 

By working with an agency, you have the best opportunity to identify the strategies that work and those that do not. Having worked with other companies, these agencies’ experts will have seen what does not work and caution you in advance. See – why risk using strategies that will yield no fruits? 

A Helping Hand during the Early Phase of Business Establishment 

Company incorporation as a US entrepreneur is only the first step in your effort to make it a multinational.

 The next most important step is getting the enterprise started. The agency you select will be there to hold your hand and ensure your company’s entry is seamless. In addition, the agency can also help you with bookkeeping, filing tax returns, and offer important advice for faster growth.  

If you are a US entrepreneur and plan to invest in China, the best route is working with an agency. These firms not only help to simplify the process of company registration in China, but also come in handy to ensure you become successful. With experts on your side, you cannot go wrong! 

Top Reasons You Need Auto Insurance

In simple words, having an auto insurance policy is mandatory in most states. Keep in mind, if your car engages in an accident, an auto insurance plan will protect it. However, if you don’t have this policy around, you will have to cater for hefty financial expenses. Today, most vehicle owners have an auto insurance plan. This is why several companies offer affordable auto insurance plans to the vehicle owners. Here, in this blog, we will enlighten the importance of having an auto insurance plan:

      1. Car Insurance is Mandatory

Long story cut short, this insurance plan is mandatory in today’s time. If you continue to overlook it, you will put yourself at the receiving end of the damage. Every state has a certain set of rules and regulations regarding the auto insurance plan. Sometimes, people also want to settle for coverage limits according to their needs. Especially if you are always on the road and travel very often, you don’t have a choice but to settle for an auto insurance plan. In contrast, you will end up paying for the physical damages to the car from your pocket. In many states, people have to get additional car insurance packages to protect themselves and their vehicles.

     2.  The Leasing Agent Might Require it

If you’re purchasing a car on lease, your vendor might require an auto insurance plan. In such a situation, it is best for you to purchase a certain plan instead of bargaining with the agent. Since the agent is responsible for issuing the vehicles, paying for the auto insurance plan will protect your finances as well. However, if you sift with a car that is not insured, you will have to prepare yourself for hefty expenses in the long run. Make sure to choose the right company for the auto insurance plan. Especially if you don’t have hands-on experience of having an auto insurance plan before, it is best for you to consult a financial expert or read the customer reviews first.

     3.  Protects Your Passengers

Apart from protecting you as a driver, the auto insurance plan will also protect your passengers in the long run. Sometimes, when a car accident occurs and people sustain injuries, the auto insurance plan provides payment for the medical treatment. However, in cases of a personal injury, the company will pay the settlement amount to the other party. Such coverages are ideal for surgeries, doctor bills and the frequent hospital visits. However, if your passengers suffer an accident, they might sue you in the future and put you at the receiving end of the damage. Paying for an auto insurance plan can be challenging but its long term benefits are enormous.

     4.  Auto Insurance is Life Insurance

Although the former and latter are a bit different, the ethos behind purchasing them both is the same. One of the core reasons to get an auto insurance plan is to protect your life . Especially if you’re young and vivacious, you would have several plans for your life. However, it is common for young people to engage in accidents very often. This is why an auto insurance policy can be of great help. A car insurance will not only protect your vehicle but will also save you from engaging in a sudden financial calamity in the long run. Talk to a local agent who can help you find the right auto insurance plan for your vehicle. This way, you will be rest assured about the safety of your car and the people being a part of it.

How Much Does It Cost to Raise a Child?

No matter what you do, where you live, or how much you earn, the simple fact is that raising a child in Canada is not cheap. As parents, our main duty is to deliver love, care, and support for our kids, helping to nurture them into well-rounded, civilized human beings. To do this, you must have adequate funds behind you to ensure your kids are well fed, clothed, and kept safe and protected.

In general, it’s estimated that you will spend between $10,000 – $15,000 each year on your child until they reach 18. While these numbers may seem alarming, there is financial support available which can be a huge help. To find out more, here is a guide on the costs involved in raising a child and what support is available to you.

Maternity Employment Insurance

If you are in employment, pregnant and need to take maternity leave, Canada allows you to do so for up to 15 weeks. However, depending on how long you’ve been in your position and how many hours you have worked, you have the option to take up to 63 weeks of maternity leave from your position. Your employer has an obligation to accept you back into your role after this period and provide the same rate of pay.

Maternity employment insurance can be a source of financial support during your time off work. The purpose of employment insurance is to cover 55% of your weekly earnings. However, this stops at $573 a week. If you are taking extended leave from work, your income replacement will decrease to 33% of your weekly earnings, stopping at $343 a week. Parents in Canada are now able to take up to 18 months of maternity leave, with the payments spreading out over this period.

Registered Education Savings Plan

While it’s not mandatory to set up a registered education savings plan, many people regard it as a cost towards raising a child in Canada. RESP is a government-sponsored initiative that helps to pay for your kids’ future post-secondary education. Each year, you can get $500 for free thanks to the Canadian education savings grant, which will give you a 20% match for the first $2,500 you save up each year until your kids turn 17. Bear in mind, however, that the maximum benefit you can receive is $7,200 per child.

If you’re a lower-income family, you may be able to get a higher match and potentially receive $2,000 which can be put towards kick-starting your kids’ RESP. If you want to learn more, Wealthsimple has a guide on what a registered education savings plan is, the benefits you can gain, as well as limitations you need to be aware of. Wealthsimple is made up of a group of world-class financial experts who can make your money go further and help you invest and save wisely.

Life Insurance

When bringing a new life into the world, it’s normal to put your full focus and concentration in keeping your baby safe and out of harm’s way. Having a life insurance policy in place is vital for ensuring your children are financially supported in the event of your passing. Your children will depend on your income to get by, which is why you must have a policy laid out to leave them with enough cash to support themselves until they reach adulthood.

If you are young, fit, and healthy, many life insurance policies open to you will range between $30-50 a month. In general, the amount you pay each month should cover basic costs like your mortgage balance, funeral costs, and post-secondary education costs. In addition to all the day to day costs involved in raising your child, you shouldn’t forget about taking out life insurance. You can look online for life insurance quotes to help you get a deal that works well for you. Make sure you have a will written too which will also provide financial security for your children.

Canadian Child Benefit

CCB (Canada Child Benefit) is governed by the CRA (Canada Revenue Agency). Canadian Child Benefit is a tax-free monthly payment given to eligible families to assist in helping with the cost of raising a child under the age of 18. If your child has a disability, the CCB could include child disability benefit. If your children are under six years old, you can receive up to $6,765 a year, whereas children aged between 6 and 17 are entitled to $5,708 per year.

Canada Child Benefit was designed to help lower-income families with day-to-day costs. If you are in a household that earns a significantly higher income, you won’t be able to claim as many benefits. With the country currently facing the coronavirus pandemic, the government of Canada continues to provide sufficient support to all families across the nation during these unprecedented times. In May 2020, families who already receive CCB were given a $300 boost per child in addition to their regular payment.

Daycare Costs

Where you live in the country will reflect on how much you pay in daycare costs. While many of us would love nothing more than to spend every waking hour with our children, work commitments are just as important, especially when it comes to keeping your children safe, happy, and healthy. If you and your partner work long hours and you don’t have friends or family nearby, putting your child in daycare is a factor you need to consider. There are licensed daycare centres in major cities like Toronto and Montreal which can cost you up to $2,000 each month.

With the costs of raising a child already incredibly high, you may want to consider having one parent stay at home for a longer period. Because of the COVID-19 pandemic, millions of Canadians are working from home already, which may be beneficial if you have recently had a child. While unlicensed home care is considerably cheaper than a licensed daycare, if you’ve decided on the latter for your child, there are limited spots available, so make sure you put your kid’s names on the waiting list as quickly as possible, otherwise, you run the risk of them losing out.

Technology

As your baby grows into a toddler, there are all sorts of equipment and technology you can purchase and make use of to help with their development. Naturally, as your child moves into their teenage years, there are all sorts of gadgets and tech they will want which will have a significant impact on your finances. Whether it’s purchasing a television, tablet, or smartphone, you need to factor in these costs. To save money, you may want to consider putting everyone on a family plan.

Clothes

Raising a child from birth through to their 18th birthday is expensive in many ways. One of the main necessities that your kids will need is clothes. While big piles of washing are inevitable, there are ways you can save money on clothing your kids. What you may find surprising is that it can cost roughly $15,000 to clothe your kids from birth to adulthood, and this isn’t even factoring in footwear!

If you want to keep costs down, knowing where and when to look for clothes can be a big help. When your child is young, accept and purchase second-hand clothes where you can. Doing so will be an enormous financial help and mean any money you save can be put into other things. As we live in the digital era, your children can benefit from technology. However, that is not to say you have to splurge out on the latest tech. You can purchase second-hand items that work as good as new and won’t have too much of an impact on your finances.

Food

We all understand the importance of eating healthily, so when you have children, setting a good example and teaching them to eat well is key for their development. Rather than spending a fortune on processed food, takeout meals, and McDonald’s, there are lots of healthy alternatives you can make from scratch in the kitchen which will cost a fraction of the price.

If you enjoy cooking and want to give your kids healthy, nutritious meals, learning the basics when they are young will be a tremendous help, meaning you can whip up tasty meals packed with the nutrients and vitamins they need to grow. It’s estimated that the cost of food for children amounts to roughly $1,800 per year. And when you factor in how much food you will need as parents, the total cost can soon add up and be alarming, making it more important than ever to cut corners and cook from scratch.

Bringing a child into the world and raising them to be respectable and hard-working adults takes a lot of time, care, and cash. Having a baby is a decision that shouldn’t be taken lightly, especially if your finances are all over the place. Therefore, reading the guide above should give you an idea of the costs involved in raising a child in Canada, as well as what financial aid is in place to support you along the way.

Unsecured Personal Loan Online

A personal loan is a form of credit that can help you make a big purchase or consolidate high-interest debts. Because personal loans typically have lower interest rates than credit cards, they can consolidate multiple credit card debts into a single, lower-cost monthly payment.

This article will get to know what are secure personal loans and what are unsecured personal loans. If you apply for a personal loan, you ask a financial organization, such as a bank or credit union, to borrow a certain sum of money. A personal loan can be used for various uses, while funds from a mortgage would be used to pay for a home and you can get an auto loan to finance a vehicle purchase.

To help pay for college or medical costs, to buy a large household object such as a new furnace or refrigerator, or to consolidate debt, you may obtain a personal loan. That is better from repaying credit card loans to repay a personal loan. With a personal loan, you pay fixed-amount instalments over a set period until the debt is completely repaid.

Here we will now discuss secured personal loans and unsecured personal loans.

SECURED PERSONAL LOAN

Secured loans are a company or personal loans that require some form of collateral as a condition of borrowing. For large loans for which the money is used to buy a particular asset or in situations where the credit ratings are not adequate to apply for an unsecured loan, a bank or lender may seek collateral. Secured loans will make it easier for borrowers to receive lower interest rates when they are present.

Loans may be guaranteed or unsecured, whether they’re personal loans or corporate loans. For an unsecured loan, to receive it, no collateral of any sort is needed. Instead, depending on the quality of your credit score and financial background, the lender requires you to borrow. On the other hand, secured loans need collateral for borrowing. The security for a secured loan may be the commodity that you use the money to buy in certain circumstances. E.g., whether you’re having a mortgage for a home, the debt is backed by the house you are purchasing. For a car loan, the same will be valid.

UNSECURED PERSONAL LOANS

An unsecured loan is one that is not necessary to obtain insurance or a security deposit. For an unsecured loan, applicants qualify based on their financial background and revenue instead of pledging money. Lenders do not have the right to take physical assets—such as a home or vehicle—if borrowers stop making payments on unsecured loans.

Usually, unsecured personal loans have higher rates of interest than secured loans. That’s because lenders mostly perceive unsecured loans as riskier. The lender will worry that you are less able to repay the loan as negotiated, without collateral. Generally, a higher cost for your loan means a higher premium for you.

What to take advantage of an unsecured personal loan?

When you need cash for a particular reason, an unsecured personal loan might be the best option. For instance, if you have high-interest debt, you may choose to consolidate it into a reduced interest rate personal loan to help lower your monthly debt payments. A personal loan may also help you pay for unforeseen emergencies in the middle of winter, such as repairing a faulty heating unit.

But money cannot be used only so it can be used to pay for items. It’s seldom a smart idea to use personal loans to pay for items you want, such as a holiday or a big-screen TV, instead of what you need. Taking on the excessive debt will bring your finances under a long-term burden and harm your financial wellbeing. It’s best to wait for luxuries, save money, and then make the order.

PROS AND CONS OF UNSECURED LOANS

The most significant advantage of an unsecured loan is the reduction in liability from the borrower’s perspective. You should not risk losing your savings if you take an unsecured loan and can’t afford payments; you just put your credit record at risk. For individuals and firms with unsecured debts, once you apply for bankruptcy, there is even a risk that the mortgage will be forgiven.

As no collateral is needed for unsecured loans, the lender takes on more risk, which typically translates into higher interest rates and less attractive terms. Although unsecured loans for the borrower could be less expensive, it is essential to realize how much more they will cost you over their duration. You can find that it’s more valuable to put an asset down as leverage than the additional money you’ll spend in interest.

The most significant advantage of unsecured loans is that they make it easy for everyone to borrow money; you can borrow money without putting up any collateral, whether you’re a tenant or a landlord. The best advantage of unsecured loans is that they make it easy for everyone to borrow money; you can borrow money without putting up any collateral, whether you’re a tenant or a landlord.

Since unsecured loans are backed only by confidence, the higher the risk for the lender, the higher the risk, the higher the cost of borrowing; lousy credit borrowers will face high-interest rates on an unsecured bad credit loan, but if you have a good credit rating, you won’t be so much of a problem.

CONCLUSION

There are particular benefits and pitfalls of both secured and unsecured personal loans. In the one side, with a lower APR, a guaranteed loan may arrive, but are you willing to gamble the property that you may have to position as collateral? And though defaulting on either unsecured or secured loans can mean that your credit is damaged, you can avoid putting up any property with an unsecured loan as collateral (but be prepared to pay higher rates than you might on a secured loan).

If you’re still unsure if your case makes sense with a secured or unsecured personal loan, you may want to speak to some lenders and figure out if you’re eligible. Ask prospective lenders regarding their rates and APRs and secured and unsecured loan maximum loan numbers.

5 Money Drains That Could Hurt Your Investment Returns

When you’ve had enough forethought to invest your capital, maximizing your return on investment will be a priority for you. Even the best portfolios can have hidden money drains that impede your progress, and knowing where they are will help you to decide what, if anything, to do about it. Sometimes, you might think that these “money drains” are worth tolerating – after all, every portfolio and every investor is different. However, it should be a conscious choice in which you’ve weighed your options and made a reasoned decision. Watch these money drains and decide whether you’re satisfied with them or not.

1. Your Fund Managers’ or Broker’s Remuneration

When people work, they must be paid. When you work through a broker, the fees you pay should be a known quantity. If you buy into a managed fund, it has fund managers, and your investments contribute to their remuneration. If your brokers, or the fund managers that run package investments, are  making you more money than you’d get from simply buying into funds similar to exchange traded mutual funds in Canada that track major indices automatically, it might be worthwhile.

The sad truth, however, is that many managed funds don’t make more money than those run by software. In fact, they can underperform when compared to benchmarks. That doesn’t mean that investment experts are underqualified or have poor business acumen. There are many factors that might affect their well-thought-out strategies. But if they’re consistently costing you money to earn you the same or less than you’d get from a “no-brainer” investment package, your contribution to their earnings is simply a waste of good money and you’d be better off putting it into a tracker fund.

2. “Lazy” Investments

To simplify this concept, let’s make the general assumption that most of the more secure investments aren’t big revenue spinners but can be relied on to bring in dividends and either grow in value or at least maintain it. Riskier investments have the potential for higher gains, but also may lose value if things don’t work out as planned. Of course, this is a generalization and there are exceptions to the rule.

Now, let’s suppose that you’re quite conservative investor – one who prefers the safer options, but you have an asset that’s not performing up to par. That’s a lazy investment, and the money you have tied up there would bring you more income elsewhere.

We often find this happening with property ownership. You have a property other than your primary residence and you’re probably renting it out, getting a (reasonably) secure monthly income from it. But is that income equal to or better than the income you could get from investing in stocks? Is the value of your property increasing sufficiently to make it worth hanging onto? If the answer to either or both of these questions is “no,” consider selling up and putting your capital into other investments instead.

3. Sore Losers

Nobody likes to see stocks losing value, and accepted wisdom is that it’s time to sell if a particular stock drops 8 to 10 percent of value when compared to the amount you paid to get it. But general rules don’t always apply, so do give this some thought before throwing in the towel. If the future looks bright in that asset class and for that investment, but current times are tough, you might want to hold on and wait for a recovery.  Remember, investment is a long-term game.

Let’s look at an extreme example. Following the diesel emissions scandal in 2015, Volkswagen’s stock prices plummeted by 32 percent. Just two years later, the company’s stocks had recovered their value and even exceeded pre-scandal values. Those who sold out at low prices would not have lost any of their original investment capital if they were willing to wait those two years out and investors that sold their stocks at rock-bottom prices lost half of their original investments.

Should they have held on? At the time, it was a matter of opinion. Many people thought that Volkswagen would never recover and, indeed, it was only through a complete restructuring and rebranding that it was able to do so. It’s also worth bearing in mind that investments in Volkswagen underperformed heavily during the recovery period. Would the capital have worked harder for investors even if they sold at the lowest value? That would depend on where they had reinvested.

The bottom line? Do your homework before selling out of a stock because of declining values. Then take an educated guess as to what the future holds and consider what your alternatives are. Now make your decisions based on that. You may be wrong. You may be right, but at least it’s a proactive approach rather than a knee-jerk reaction.

4. Failing to Evaluate and Rebalance Your Portfolio

A balanced portfolio spreads risk by diversifying investment across asset classes. It means that when one sector is doing well, you make up for any losses thanks to returns in sectors that are performing better. As a simple example: if all your investments are in the commodities sector, your investments will only do well when this notoriously volatile sector is also doing well. When it experiences tough times, so do you. So, instead of having all your eggs in one basket, you diversify into tech stocks, industrials, financials, property, and so on. You can also diversify across markets in much the same way.

However, a well-balanced portfolio can become unbalanced over time owing to market dynamics, and you should be ready to adjust the percentage of assets allocated to each sector accordingly. If you’re thinking this takes a lot of acumen and a lot of money to do effectively, you’re right! However, if you are investing in this way, whether on your own or with the help of a broker, you do need to keep your eye on the ball and rebalance, or call for rebalancing from time to time.

One way to escape all this is to buy into one of the internationally recognized funds that pools investment money and then distributes it in a balanced way. This allows you to have the benefits of a balanced portfolio without having to do the work yourself. These big investment funds also have massive resources that allow them to follow markets far more thoroughly than any single person or small brokerage company can. The theory is that you get the benefit of some of the world’s top money minds who are being fed information that few others would have the time or resources to collect and collate. Naturally, rebalancing the pooled investments they manage is part of that.

5. Tax

In closing, let’s not forget that tax can be a major financial drain. Since taxation laws differ from country to country, it would be difficult to give any specific advice other than to say that you need to be aware of the actions that will give rise to tax events and try to minimize their impact. Unless you are an expert in taxation, it would be advisable to consult with someone who is. Yes, these consultations have costs too, but the money they can potentially save you more than makes up for that. Of course, we must comply with the law, but there’s no point in paying more tax than you absolutely have to, and specialist input can save you from doing just that.

Investing in stocks – what you should really know

The stock market brings so many investment opportunities and you are probably already aware of that. If you aim to invest your money in stocks, apart from choosing the right broker there are other important things. Here are some tips that will help you streamline your investment.

How to find stocks to buy on the stock exchange

Start by buying stocks of companies you already know. Then turn to google finance to find companies that you don’t know but work in the same industry as the companies you know. Already this allows you to have an overview of companies in sectors of activity that you know.

Of course, just because you like a company and its products doesn’t mean it will be a good buy on the stock market, but at least you know what they are doing and why the products are good. The key is knowing what makes a business important to its customers and how much longer that will hold in the future. You should ask questions such as If oil prices keep rising over the next few years, which companies are likely to benefit?

What types of shares can you invest in?

If you are wondering in which sector to invest in the stock market, you might be overwhelmed. he truth is there are many sectors to invest in the stock market. There are different types of stocks on market. Apart from private and, public companies share, we can make a distinction based on their primary business activity:

  • Energy
  • Health
  • Raw materials
  • Financial actions
  • Industrial values
  • Information technology
  • Consumer discretionary
  • Consumer staples
  • Immovable
  • Telecommunications
  • Public services

There are also promising new alternative industries such as shares of related companies:

  • Crypto-currencies
  • Blockchain
  • The cannabis industry
  • Start-ups
How do you find the right time to invest?

How to invest at the right time? Finding the right time to trade or invest in the stock market is not always easy. If you want to analyze the stock markets, there are two main methods: technical analysis and fundamental analysis.

Technical analysis or the analysis of charts of the price of an asset

Short term traders especially appreciate technical analysis to determine when to enter and exit the market. This type of financial market analysis is based on three assumptions:

  • the prices displayed include all the information available
  • assets always evolve in trend
  • history tends to repeat itself

Technical analysis is, therefore, based on the analysis of price action. We often add to the latter technical indicators, support and resistance levels, trend lines and much more. The goal is to determine the future direction an asset will take and obtain buy and sell signals.

Among the most popular technical strategies for spotting good times to invest in the stock market, we will find the range, pullback, gap or even breakout trading. The most used technical indicators are moving averages, Bollinger Bands, RSI, and MACD.

Fundamental analysis or analysis of the intrinsic value of an asset

Fundamental analysis is geared more towards long-term investing to capture large moves. Indeed, this type of financial market analysis considers the evolution of economic, social, political and monetary forces that affect an asset’s price.

The basic principle of fundamental analysis is that an asset’s current price does not necessarily reflect its actual value. Fundamental analysts, therefore, seek to determine the intrinsic value of an asset. Then they compare it to the current price. The goal is to determine whether the asset in question is overvalued (potential sell signal) or undervalued (possible buy signal).

Among the fundamental factors to follow for a financial and accounting analysis of a company before investing in the stock market, we will find the announcements of results, the yield, the distribution rate, the prospects for growth, the performance of the company concerning its sector of activity, earnings per share (EPS), the price-to-earnings ratio (PER), etc.

What Beginner Investors Should Expect Over the Holiday Season

Markets ebb and flow over the course of the year, and as the seasons shift, consumer and corporate behavior changes. While some investors like to camp on their portfolios for months or years at a time, a different investment strategy entails tracking these patterns and altering investments to harness the different types of growth.

The winter holidays, in particular, can be a turbulent time for investing. If this is your first holiday season as an investor, here’s a bit of what you can expect over the course of the next couple months:

There Are More Half-days and Full Days off

Even the stock market takes a break during the holiday season. During the fall and early winter, there are an incredible number of holidays when markets close entirely, meaning that no one is on the trading floor and that any trades you make won’t go through until the next day of operation — same as weekends. Thanksgiving Day, Christmas Day and New Year’s Day are full days off, and both the day after Thanksgiving and the day before Christmas are considered partial holidays where markets close early. If you are aggressive in your day trades, it might be wise to mark these important dates on your calendar, so you aren’t surprised when your trades take a day (or two) to process.

Trading Tends to Slow Down

A large number of people take more vacation days over the holiday season, in the hopes of spending more time with friends and family. As a result, there are fewer people at work almost everywhere — including on the trading floor. For almost the entire duration of the holiday season, there are fewer people engaging with the market, either in investment firms or at their home computers, which causes the volume of trades to decrease dramatically during this time of year. Low volume results in a decrease in liquidity. This means it could be harder to get out from under certain investments, so you should choose your investment moves wisely during the holidays.

Stocks Are Less Likely to Move

Another effect of the holiday season is the low volatility of stocks. Volatility reflects how much an asset’s value fluctuates over a certain period; if there is low volatility, it means that asset’s prices tend to be rather steady. While there are places in a portfolio for non-volatile assets, volatility is generally what investors want to see because stock movement — in one way or the other — is what helps to generate wealth. In general, you should expect your earning potential to be lower in the holiday season, but you should continue using investment tracking tools to ensure that your earnings are still going up.

Markets Move Erratically

The holiday season always falls at the end of the year, which is a strange time for the economy. Some businesses are at their most active, while other businesses are all but shut down. Thus, it isn’t uncommon for markets to be less predictable than usual. Erratic markets are common over the course of the holidays, but a bit of unexpected movement shouldn’t shake up your investing plan. Here are a few mistakes to avoid in erratic holiday markets:

  • Don’t invest based on emotion. Seeing certain stocks rise and fall can be equal parts scary and exciting, but you shouldn’t let your emotions overtake your plan.
  • Don’t overvalue daily reports. When markets are erratic, the daily report could say almost anything. Small ups and downs shouldn’t cause you any concern.
  • Don’t look back. It is possible that your portfolio will dip in value over the holiday season, but that doesn’t give you license to focus on the day you had the highest value. You should focus on looking to the future, not back and not necessarily at the present.

How to Plan for Safe Investing

Every investor has their own strategy, so not every investor reacts to the conditions of low volume, low volatility in the same manner. Still, since you are a beginner, you might want some guidance on how to keep your invested money as safe as possible during this time. Some tips include:

  • Be conservative. You probably want to position yourself in safe investments for most of the holiday season, so you don’t need to worry about the sometimes-erratic movement of the market.
  • Trade less. You should probably ease up on your trading for most of the season and hunker down with your current portfolio. You should be extra picky about the trades you do go through with.

Every holiday season is different — and the 2020 holiday season is likely to be especially strange. Still, there are ways to survive the holidays with a healthy portfolio, even when you are a beginner investor.

Belfast Mortgage Broker Explains The Importance Of A Team

In the last decade, a lot of people have started talking about teamwork and how beneficial it actually is. No one can do everything on their own, and that makes sense. That’s a bit different than what we’re told at school that every individual has skills, talents, and gifts that are uniquely their own. 

Without people to share it with, even our best talents will be of little use. The teamwork trend has slowed down this year because of the drastic shift of the workplace. The coronavirus lockdowns forced everyone to spend time at home, and this is exactly why everyone should focus more on teamwork. Click on this link to read more.

You need to know that you aren’t alone and that there are other people working with you. When you combine a lot of people and give them the same goal, the energy they possess will be the main factor in whether it will be achieved. 

If a group of people works together, it boosts efficiency, productivity, and creativity. That’s what makes every business successful. Here are a few important things that come from being in a team.

Great ideas don’t come from a single person

When you think about the theory of relativity, a single person comes to mind, and that’s Albert Einstein. Even though we all associate this discovery with him, he still had help from his friends and colleagues to define the theory completely. 

That has always been the case, even when we look at history. Einstein couldn’t have discovered the theory of relativity if Isaac Newton didn’t lay the foundations of calculus a few centuries before that. Even the greatest minds have admitted that their ideas came to them because they stood on the shoulders of giants. 

Christiano Ronaldo might be the best soccer player in the world, but Manchester United wouldn’t win the Champion’s League if only he were playing. It takes a combined team effort in order to succeed. Visit this link to read more https://www.ama-assn.org/education/accelerating-change-medical-education/how-medical-improv-training-sparks-better.

Different perspectives

When you surround yourself with people who are exactly like you, there is no opportunity to grow. Of course, no one is perfect. That’s why people from different niches sit down and talk to see if they have any common ground. 

Almost all of history’s greatest discoveries and improvements have happened at an intersection between different cultures or industries. That’s not always comfortable, but we all need to step outside of our comfort zones if we want to make progress. This is a challenge, and new challenges offer us more insight than staying in the same spot. 

Having a diverse team is the only way in which you can navigate today’s changing world. Age, experience, gender, and ethnicity all play a role when it comes to performance improvements compared to solely homogenous teams. The anchor Crawford Mulholland group is a great example. Their training causes everyone to be open-minded, and it allows for a better exchange of ideas. 

You won’t burn out

If you work alone, the odds are against you when it comes to burnout. It’s always better to have someone who will pick up the work when you’re feeling down. Then, when the time comes, you will return the favor. 

Sharing the load is one of the best ways to give emotional support to those who need it. You usually understand the needs of your coworkers better than any manager. That doesn’t mean that managers and bosses don’t have a role to fill. When an employee knows that their boss has their back, this is a great mental support to give in more effort after the burnout passes. 

It improves productivity

If you do a good job, and everyone you work with compliments you, that’s an even bigger incentive to work harder. Whenever someone respects your work and progress, you want to push the extra mile. Compliments do wonders, and they can make you take risks that will pay off in the future. 

You might be willing to put forth more ideas. However, this is mainly true about the smaller team. When you increase the number of people, you also increase the chances of an argument coming up. The most important thing is to find the balance. Keep the energy positive, and you won’t have anything to worry about. 

Money Management Tactics for Securing the Capital

The proper money management can provide the traders with a better opportunity to grow the Forex account. Firstly, the traders need to understand the necessity of money management strategies to apply this properly. The novice CFD investors face problems because they are not able to identify their mistakes. The target of the money management strategy is to maximize the chances of gaining rewards and reduce losses. For doing this, the person should aware of the market uncertainty and the different types of components that influence the market. There are some techniques for money management. These are being discussed here.

Trade with the Funds that You Can Afford

People become distressed when they lose money which is necessary for their daily survival. In the initial stage, the traders should not solely depend on the trade for income. The businessmen should arrange some money for food, shelter, and other daily requirements. If anyone does trade besides a job, he or she will able to manage the daily trading cost. When an investor will ensure the security of personal life, he or she will not be driven by unnecessary emotions. So, he or she will able to operate the activities properly.

Gauge Risk-Reward Ratio before Trading  

Investors should determine the risk-reward ratio before trading. They should identify the risk tolerance capability before investing money in security. For this, firstly a person needs to determine how much loss they will able to tackle. Depending on this, the traders are required to place the stop-loss and take profits. The person also needs to analyze the positions of the business field to determine the risk to reward proportion. If necessary, the investors can also use the trailing stop-loss and take profit to gain more profits and limit the uncertain loss. CFD trading is more about accepting managed losses. So, act like the elite Singaporean traders and concentrate on the risk to reward ratio in each trade.

Know When to Exit Trade before Enter

If you cannot exit the trade properly, you might miss the chances of making profits. Sometimes, the traders do not want to exit the trader because they cannot able to determine when the trend will end. Many people do not make any exit plan which ultimately causes loss. Entry strategy and exit strategy both are important for the traders if they want to make adequate profits. Because of the lack of discipline, the investors cannot able to go with the plan. So, people should ensure that they are following the strategy properly

Control the Emotions

Because of emotions, people can lose all the rewards that have been gained by them throughout the year. So, the businessman needs to find out which types of emotions creates problems in the trading process. Then, they should try to reduce the emotions or keep these separate from the trading decision. The avarice of the people is responsible for the failure in the mid-way. On the other hand, because of being afraid, many expert traders also unable to grow the account. So, you should focus on these two components and try to remove these. By doing meditation, the traders can easily avoid these and also feel relax. This also reduces stress and generates energy for the business.

As a trader, you should develop the money management skill that will help you to increase the earning. In the Forex field, everyone wants to profits for which they work so hard. Different types of approaches are being executed by the investors for making profits. However, no approach will works, if a person is not able to make a balance between the risk and the rewards. This is not possible that the investors will not lose any money for doing business. But, this is necessary to control the losses for reaching the peak. So, you should have to apply these techniques for maximizing the profits.  

6 Business Predictions for 2021

The COVID-19 pandemic has thrown unprecedented challenges at the business world, meaning companies have had to deal with the unforeseen and the unknown. During nearly a year of incredible difficulty, uncertainty, and abrupt disruptions, businesses have had to pass through many unpleasant phases. However, 2020 has also provided many lessons and paved new paths. What’s in store for enterprises in the coming year is a matter of speculation, with experts divided in many regards.

Despite the uncertainties, it is possible to make predictions about what we may expect to see next year, at least to the best of our knowledge. Here are six predictions for businesses for 2021 so you can start planning for the year to come.

Business Won’t be Back to Normal Until the Second Half of the Year

Experts stand divided on the question of when everything will get back to normal: there is a broad spectrum of predictions on the matter. Half of the CFOs in major UK companies believe that business-enterprises will return to the pre-pandemic levels only in the second half of 2021. However, others believe that business may get back on track in the first part of the year. And there is a worst-case prediction too that hardships could even last as far as 2024. All we can do is wait to see how everything turns out, as it is hard to make concrete predictions in these times of rapid fluctuations and many unknowns.

Commerce Going Digital for Survival

The pandemic that cut down offline interactions drastically has meant businesses have had to depend on online and digital technologies more than ever. Whether it is for communication, sales, or payments systems, many companies that previously only made a minimal use of modern technologies started incorporating more technological solutions. The trend is here to stay and will become a significant deciding factor of business success in 2021. Most businesses already have an established digital presence through multiple channels including websites, apps, and social media to engage with their customers.

The COVID Vaccine Will Boost Sales

The anticipated vaccine rollout of the COVID vaccine will give a fresh hope to business in 2021. Almost all sectors will see increased activity, with healthcare, hospitality, and transport expected to flourish in particular. The vaccine will be the single most important reason for many businesses that have been in a hiatus for a while to spring back to work. Though issues with regulations, production, and distribution of the vaccine are still uncertain in a number of ways, experts look forward to it as a highly decisive factor for the recovery of businesses from their pandemic-induced slump.

The Customer Will Have to be Studied Anew

The Pandemic has made a drastic shift in consumer behaviour. There is a wide gap between pre-COVID and the post-COVID customer views in terms of their approach to prices and quality levels, the ability to shop digitally, and the kind of products they prefer. A significant proportion of consumers used digital financial services, including internet banking for the first time during the pandemic. Whatever businesses had learned about their customers will have to be relearned in 2021. It will have a considerable impact on how organisations conduct their affairs, plan strategies and advertise products.

UK Unemployment will Rise

The pandemic has rendered many people jobless. Last year, unemployment in the UK was 1.3 million. And predictions are that it will rise to somewhere between 1.9 million and 4 million in 2021. Much of the turbulence currently witnessed in the job market will carry over to 2021. Though the current unemployment rate of 4.8% according to the BBC is comparatively less than during the 2008 financial crisis, it unfortunately looks like it is set to rise in the future.

The Need for a Dedicated Budget for Cybersecurity

The coming year will demand cybersecurity to be a key consideration in any company’s budget. As more and more businesses go digital, the threats from the cyber world increase, such as phishing, ransom ware and hacking. Since many establishments have switched a considerable amount of operations to online only due to the COVID crisis, they may not be fully aware of the hidden threats and thus could be in a highly vulnerable.

For cybercriminals COVID-19 is an excellent opportunity to exploit newly established networks of small and medium companies. Cybercrime has increased more than ever during the pandemic, so companies that have moved online will need to step up their cybersecurity efforts (and budget) in 2021.

Key Takeaways

Since the start of the COVID-19 pandemic, things have been changing and taking new turns from month to month. Therefore, we cannot rely on any prediction as a surety. Factors like delays in the vaccine distribution due to regulation issues or complications with its production, and many other uncertainties could mean that more surprises are around the corner. Nevertheless, taking expert predictions into considerations, while being prepared for things to change, is the best way for businesses to set themselves up for success in 2021.

6 Things You Should Know About Guaranteed Investment Certificates

As you begin to grow and diversify your investment portfolio, there are some key things you need to know about Guaranteed Investment Certificates (GICs). Make sure that you do your research well before investing—this way you will be sure that you are investing in the right type of products and that you will be able to get more benefits for your investment. It is better to be safe than sorry.

GIC Overview

You are probably wondering, ‘what is a GIC?’ GICs are certificates are issued by Canadian financial institutions that are typically issued without any conditions in return for a set of investment documents that can be used as security for the loaned funds. These certificates can be flexible, and come with numerous terms and conditions that vary from institution to institution.

So, What’s the Catch?

When you deposit the money, it must be for a fixed length of time, and interest rates can vary according to the length of the commitment. Purchasing a GIC is lending the bank your money and making interest off of the money for lending it to them. Be aware if you take the money out before the term is up, there is a penalty.

Financial institutions that offer them are legally obligated to pay the principal and interest. And if the bank were to fail, the investor is insured by the Canadian Deposit Insurance Corporation (CDIC) for up to $100,000 CAD.

What do I Need to Get a GIC?

First of all, you need to know that you need to have a certain minimum percentage of asset value as collateral. The higher the risk, the higher the interest rate. So, you need to think carefully when choosing a GIC and make sure that you understand the terms and conditions. Also, in most instances, the interest rate charged will vary on how risky the investment might be. A GIC is typically a safe and smart investment for people who are looking for an additional income stream.

Are GICs Tied to the Stock Market?

There are GICs available that are tied to the stock exchange. These can offer low risk for a high return and are offered through a broker who sells stocks to you through your brokerage account.  Using a broker could allow transparency with the exchange you are trading, since you know who you are dealing with as well as the type of stocks you will be purchasing. However, before you do this, you should do your research. By doing a bit of due diligence, you will be able to make sure you are getting yourself the best deal for your money.

Fixed vs. Variable: What Interests You?

A fixed interest GIC is issued to an individual at a fixed rate over a specific amount of time, usually for a short period of time. These types of policies are generally offered as retirement annuities by banks and financial institutions. You earn a certain percentage on the funds you deposit. When purchasing a fixed GIC, you are basically taking a loan out from the bank to pay the premiums over the duration of the policy. If you don’t have enough money to pay the premiums, you are unable to sell the policy or receive a refund.

Variable GICs, on the other hand, are issued as a variable annuity at an interest rate that varies from month to month. You have the choice to adjust the interest rate—however, you are not legally obligated to do so. This is done because it costs the bank more money to purchase the insurance in a fixed rate policy over a variable rate. If you opt to purchase a variable GIC, you will be charged additional interest based on your initial interest rate. If you change your interest rate at the end of the month, the extra interest will be applied to the remaining balance of your loan. If you choose to purchase a fixed GIC, you have the option to adjust the interest rate and there is no additional interest charged if you change the rate. This option, however, is not available with the variable GIC.

Where do I Get a GIC?

When searching for a fixed GIC, you can search online for the different companies that offer them or look through a local newspaper. While there are many different companies offering this type of insurance, it is important to make sure that the firm is licensed to sell them. You should also read all the fine print on the company’s website and make sure that it is accurate. Some companies are less than honest about the benefits and conditions associated with their policies, so make sure you do your homework.

Why Your Business Needs a 24 Hour Answering Service

What will it cost you to provide cutting edge customer support via phone? It is bigger than you can imagine. A cheerful voice in addition to a warm greeting is almost not enough. 

Customer care reps have to be ready to provide answers to all kinds of queries about their company and the services they offer. Of course, they have to be appealing, but it will be necessary for them to be able to efficiently provide the information that customers or prospects need.

However, not every business can hire someone who can manage this role efficiently. So what can you do if your growing business does not have a budget that can cater for a customer care rep?

Well, what your business needs is an answering service.

This kind of service yields good results most times. It also helps you to reduce the amount of money you would have spent if you had to hire a customer care rep. Your customers are more likely to enjoy this service compared to if your business had a customer care rep.

Now, let us look at why your business needs to adopt an answering service.

1. Make More Money While Saving Money 

Your business will keep growing and the same can be said about your budget. But hiring a set of staff just to take business calls is expensive. Apart from paying the salary of staff, you need to add up cost of acquiring phones, computer, desk, and other things you need to set up the office. You also need to offer health insurance to your employees.

Furthermore, there are businesses that engage the entire team in answering phone calls from customers. But pulling your staff to undertake such task can be distracting and decreases productivity. 

However, an answering service will avail you the advantages of having a professional customer care rep and at a lesser cost. You will get excellent service as well as a well-informed person who will be answering the phones.

2. You Will Retain Your Valuable Customers 

Customers expect that your business should be open 24/7. So, they call in when ever it is suitable for them. Answering phones during work hours alone (which is usually 8 hours), means that during the remaining 16 hours, your customers’ calls will go unanswered. Most callers will not leave you any message or try calling again. In fact, some people hang up as soon as they discover that are not being answered by a real person.

Despite the fact that your business needs to focus on making more sales, building your current list of clientele is also of utmost importance. You can achieve this by partnering with an answering service. So when your customers call in after work hours, they will receive maximum attention. prospective customers also will not be unintentionally neglected. 

Furthermore, if your customer service is poor, you will lose customers. And you know how people are quick to give negative reviews when they do not get the value they desire. One bad review can make a customer choose your competitor over you. And it will take a lot of effort to amend that one negative experience.  

Watch this video to learn how to give great customer service.

3. Project Your Business as a More Professional Entity

Whether it is an intern or the business owner, whoever picks up the phone, becomes the business’ voice. And if the caller is a new customer or prospect, the experience they will have will form their first and probably, only impression about your business; depending on the kind of service they receive. 

However, if your business is affiliated to an answering service, you will have access to dedicated, well-trained receptionists who will make sure that your customers get a good first impression. Also, the calls will be answered on time, in a polite manner, and within a serene environment to eliminate poor network, dropped calls, or any kind of bad experience.

Additionally, customers can’t tell if an answering service rep is actually at your place of work when they call. They cannot also tell if it is a 2-man business or a 1000-employee kind of business. The kind of treatment they get when they call will either project your business as a more professional entity or not. 

4. Your Priorities Will Be Rightly Placed

The volume of calls a business receives every day, especially if it is a small business, might be difficult to handle. Imagine trying to have a phone conversation with one customer, while that is on-going, two or three more callers are calling but you can’t respond. One of the callers leaves a voice message and while you are trying to call back, another call comes in. You can now see that you will still lose customers when you try to do this on your own. 

You will be unable to handle other business activities in addition to all that stress. But if you use an answering service, you can focus more on your work while the customer care rep focuses on caring for your customers. That way, your priorities will be rightly placed, and you will be more productive.

Now that you know how your business can benefit from an answering service, take a step in the right direction. Click on this link: https://www.mltcom.com/answering-services/247-answering-service/ to get affiliated with a professional answering service.

Conclusion

Your business needs to grow and that can be achieved when you focus on making it grow. It will be quite tasking trying to attend to enquiries from prospective customers, generating sales, reaching out to returning customers to maintain the relationship, among other things you need to do as a business owner. 

The business world is quite competitive and if you need your business to thrive, you need to focus on what you are best at. So you and your business need an answering service that will be available on a 24-hour basis while you are busy meeting the needs of your customers. 

Are you legally obligated to be allowed a bank account in Europe?

When it comes to controlling and managing our money today, we have many things to consider. For one, we have to think about kind of bank account we intend to be using for our personal (or professional) goals. For example, you might be considering, as a resident in Europe, opening a bank account. But is this going to be possible? Are you legally obligated to be allowed to open a European bank account?

At the moment, it depends on where in the continent you are based. For example, anyone who is based in a country that is within the European Union (EU) is entitled to a bank account. This is a legal right that is given to you as part of the wider EU regulations. If you are legally a resident in this country, then you are entitled to open what is known as a ‘basic payment account’.

A bank is not allowed to refuse your application if you wish to set up a basic payment account. Indeed, this is information worth keeping in mind when shopping around various banks to work with.

Do I have to use an EU bank in my own country?

Interestingly, as wider EU law looks to bring nations together under more complementary joint law, bank accounts are not protected by country. For example, you are allowed to open a bank account in any EU country so long as you are proven to have EU citizenship. This means that you cannot be refused access to a basic payment account just because you don’t live in the country that bank was actually established in.

This means that you could in theory go and open up a basic banking account in any one of the 27 EU nations that are part of the program today. However, you should take note that this is only for a standard bank account. You might have to go through a more strenuous vetting process, and would be permitted to be refused access, if you wished to open up a different kind of account.

For example, you might wish to open up a bank account for a savings account. While no EU-based bank can reject you for a basic account, they could choose to say no to you if you wish to open up an EU-based savings account.

Exceptions to the rule

However, please note that there are some very limited circumstances in which an EU-based bank could reject your basic account. The primary reason for being rejected would be a failure and/or inability to comply with EU laws and regulations with regards to money laundering and terrorist financing laws. These are very specific laws, though, and are unlikely to apply in the vast majority of cases.

However, you might also be refused access to a basic account if you already have a basic account with a bank in the same country. You are permitted to have access to one account, not multiple accounts. Also please note that most banks will still want to know why you wish to open up an account with them in the first place.

They might wish to know more about your living situation, and whether (or not) you will be residing in the nation for a period of time once you have opened up your bank account. So long as you have no other accounts of a basic nature with any other bank, though, they cannot refuse you outside of if your answers do not satisfy EU money laundering laws.

What about a merchant account?

Of course, not everyone in the EU banking industry is going to have enough access with a standard account. If that is the case, you might wish to open up another kind of bank account in the near future. For example, you might wish to open what is known as a European high risk merchant account.

This has become increasingly common today, as many professionals use such accounts. merchant accounts are quite interesting as they tend to come bundled with various payment processor programs as well as giving you the tools that you need to start accepting card transactions, handling online purchases, and various other factors.

Many buyers online will not use a trader if they cannot be given a guarantee of a totally secure connection. For that reason, the vast majority of buyers will look to set up a merchant account so that your customers will be more inclined to actually use your services.

Many forms of high risk merchant account exist, so it pays to invest time and effort into understanding what this means. Then, you can make a wise choice and make an investment with a bank that can provide you with the service(s) that you need.

Choosing a European high risk merchant account

While you are by no means permitted by law to have access to such an account, those in good standing should have no problem creating such an account. This will help you to start making trading easier, giving you all the tools that you need to take payments and ensure that your business can start trading online or offline if it so chooses.

The best European high risk merchant accounts will give you a highly specific service. Many generic services exist, but looking for something that comes with particular features and add-ons would be highly recommended.

You will normally find that the investment into such an account is a wise idea as it can give you the help that you need to get selling as a professional. High risk merchant accounts are often aimed at those with minimal or poor credit history, or who are engaged in a kind of high risk business that has a high volatility.

Keep this in mind, and you should find it easier to get started in the set-up of a European bank account. Whether for you to use personally on your travels or to give you access to merchant facilities, ensure you do your due diligence on any company you consider. 

Research: Here’s how the corona crisis will affect the banking sector

Although most bankers in North America and Europe expect a longer recovery from the coronavirus crisis, they are already forecasting a recovery in lending next year and a relatively slight increase in bad loans. The most important are the findings of a survey conducted by Deloitte among 69 risk officers and heads of banking departments for solving credit problems in 12 countries in North America and Europe. The research focused on five main areas: economic recovery, credit dynamics, bad loans, and bad credit transactions, as well as restructuring and priorities in the area of solving credit problems.

In terms of economic recovery, 39.1 percent of respondents expect a U-shaped recovery curve. A more pessimistic L-shaped recovery scenario expects 21.7 percent. The respondents’ attitude regarding the application of the moratorium was positive like it was about JerkDolls, i.e., 75% of the respondents consider it an effective measure for preserving financial stability.

In such circumstances, it is not surprising that a (non) significant decline in the disbursement of new loans is expected in 2020 compared to 2019, while expectations are more optimistic for 2021. Disbursements of new loans may increase in 2021 due to fiscal and monetary measures aimed at stimulating banks’ lending activities. Stricter credit standards are expected for loans mainly to households and non-financial corporations.

However, respondents do not expect a significant deterioration in asset quality in the next 12 months. Almost half expect the rate of bad loans to households to increase by a maximum of three percentage points, while two-thirds expect the same growth rate for companies.

However, bankers are more pessimistic for the period after 2021. Almost half of them expect the growth of bad loans to households by three to five percentage points, while a third of respondents expect the same rate of decline in bad loans to companies. In any case, there is a dose of uncertainty from 2021 onwards regarding the actual capacity and readiness of debtors to service debts after the relief in the form of a moratorium ends.

The research highlights how banks have significantly improved their asset quality since the global financial crisis, established higher capital buffers, and strengthened their liquidity positions, leaving the economic downturn in better shape than in the previous financial crisis.

The moratorium on loan repayments imposed by several countries in North America and Europe may temporarily cover up the real damage that the economy may constrain. Therefore, it is not possible to draw reliable conclusions regarding the emergence of bad loans in the coming period since it is not as easy as playing teen porn games online.

Strategies for dealing with bad loans introduced before the COVID-19 virus pandemic now need to be adjusted, which could significantly affect debt service providers and the customer market. Namely, almost a third of the respondents believe that 5 to 10 percent of debtors in the household sector with liquidity difficulties will seek restructuring in the next 12 months.

What happens if you die with no life insurance?

It’s a question that you’ve probably asked yourself. Sadly, a considerable number of people consider life insurance more of a luxury than a necessity. And the payback for that is that if you pass away, your family plus the left-behind estates become fully liable for financing your debts, medical bills, funeral expenses, and other final expenses.

Though not a legal obligation, preparing to pass on is equally important as preparing to live. You may not feel the value for your money, at least not at the moment, but your family will direly need it when you’re gone. That is unless you want them to be homeless due to unpaid mortgages, face debt collection issues, live a sub-standard life, or give you an improper sendoff.

Let’s dig a little deeper into what happens if you pass without a life insurance cover.

Debt Responsibility

Usually, your immediate family isn’t responsible for your unpaid debts if you pass unexpectedly. But if you have an estate or unprotected assets like bank accounts without beneficiaries or investment properties, they’ll be liquidated to cater for your outstanding liabilities.

So if you have huge debts without life coverage, creditors might come knocking, forcing your family to sell your home and other assets to clear your debt. The good news is, with life insurance, your loved ones can use the policy’s proceeds to pay off any debts that you might have incurred in your living days, thus relieving them of any financial distress or the fear of being kicked out of your matrimonial home.

Funeral Expenses

How would you like it if your family takes out a loan or pleads with a funeral home for a discounted payment plan to give you a decent sendoff? That’s precisely what will happen if you leave without life insurance, and your loved ones don’t have enough cash to meet the funeral needs.

Getting your family into a double tragedy of coming to terms with losing you and lacking enough funds to cater for your burial is truly uncalled for. This is why we recommend purchasing life insurance to help meet the funeral, burial, or cremation expenses when you breathe your last.

Additional Final Expenses

Funeral and burial expenses usually are the priority when you pass away. But a few weeks or months after the sendoff, other needs start creeping in. For instance, if you were the sole breadwinner, your loved ones will find it hard to keep up with the same lifestyle or living standard as it were before. Your spouse may no longer afford the same schools for the children, pay off mortgage or rent, pay the utility bills, etc.

What’s more, if you had a strong family bond in your living days, your loved ones may struggle to come to terms with your loss, forcing them into a trauma. This raises the need for professional help, which may be too expensive without external assistance. While it’s not a guarantee that life insurance may cover counseling costs, your family may use the proceeds to pay a therapist for their services.

Medical Bills

Chronic illnesses can be devastating. Most people take their ailing loved ones to hospitals for medical care while holding the hope that they will recover. More often than not, critically ill people barely make it despite the advanced medical care, and to add insult to an injury, the hospital bills keep piling up.

If you pass away without life insurance, your family will be liable to meet all the accrued medical bills. This can be tough, especially if you’re the primary breadwinner in the family. That is why it’s overly essential to take out a life insurance policy to meet such unprecedented costs.

Good news: even if you contract chronic illnesses like cancer that may deny you the regular coverage, you can still purchase non-medically underwritten life insurance where you won’t have to undergo any physical examination tests. The same applies to those in perfect health but would like to acquire life insurance coverage in the fastest and most straightforward manner.

Conclusion

Hopefully, this post helps you realize the importance of life insurance. Life’s uncertainty should be enough motivation to protect your loved ones financially should you pass away prematurely. You don’t want your family to be forced to sell your estate or take an emergency loan to cater for unpaid debts, property taxes, final expenses, and other expenses, do you?

5 Major Pros And Cons Of Investing In Cryptocurrencies By Experts

Traders and investors are going crazy with the cryptocurrencies. Digital tokens like Bitcoin, Ethereum, Litecoin are some of the cryptocurrencies. You can consider them as a currency that you change for goods and services.

The most notable feature of Cryptocurrency is its decentralized nature. That means it is independent and is not controlled by any institution. With centralized nature’s help, it helps the people with the peer to peer money transactions. The blockchain technology powers the transaction and provides security with the public ledger network.

The Cryptocurrency concept is fairly new, so it is hard for the people to accept it. A sense of    something new brings insecurities with the trust, which is what is happening with the cryptocurrencies.You can learn more from BitBolt Login.

Pros and Cons of cryptocurrencies

Even after being a new concept, it holds the upper hand against traditional fiat currency. Some traders think that Cryptocurrency has a future possibility to replace the fiat currency.

Pros

1. Valuable trading software

Thanks to all the hype created by the trades and the investors in the trade market, crypto trade marketing is getting popular among the younger generation. And to encourage their effort, several trading platforms and applications have been surfacing up recently.

Some of the trading platforms are given below:

  • Coinbase.
  • Bitcoin profit.
  • Coin tracking.
  • Bitcoin evolution.
  • Kraken.

2. Easy money transfer

Cryptocurrency money transfer happens with the help of the peer to peer to connection. That means you do not need any third-parties or intermediaries. You can directly send the money to the people you want to send. The transaction process is swift and takes only a few seconds to be processed. Also, the transaction is down with the private and public keys’ help, which makes the transaction more safe and secure.

3. Anonymity

At every transaction, your digital wallet address, Hash, blockchain number, and the miner name are recorded, the transfer process is anonymous. Only the people who are sending and receiving the money can see the identity. This feature helps if you are wary of giving unnecessary information to others.

4. Accessibility

The best part of the Cryptocurrency is that it is accessible 24X7. Cryptocurrency is a decentralized currency; hence, you do not have to wait for the intermediaries to make a transaction. You can commence a transaction as long as the receiver is active. On the contrary, the peer to peer connection is not bound by the national boundaries.

5. Autonomy

In the Crypto trade, you have complete control over your digital assets. No matter how you earn it, where you spend it, or whom you send it, no one will ask you anything. You are responsible for everything related to your digital assets. Hence, you can think of this as one of your retirement plans.

Cons

1. Volatility

The volatility of the Cryptocurrency has been the problem. Though this volatility has given the profitable nature to the Cryptocurrency, it is far too unstable for everyone coming out of the trade with a profit. Though Cryptocurrency is not controlled by any institution, national external affairs, and media can affect the Cryptocurrency’s price evaluation.

If you are a high-risk lover who believes in “high-risk high gain,” then volatility is not a problem for you. I am talking about the other traders who want low-risk investment plans.

2. Complex concept

The concept of the Cryptocurrency is very tricky to understand. So technically speaking, crypto trade is not for the people who lack technological knowledge.

3. Theft risk

Even though Cryptocurrency has no physical form, there is a chance that all your digital assets can be stolen. Hackers have sophisticated tools and advanced software that they use to break through all the security.

Conclusion

Cryptocurrency investments and trades have now become a significant strait forward. And all the thanks go to the trading software that you can easily access and place deals efficiently. Moreover, you also have complete control over your digital assets, and you can keep track of them with the help of the Digital cryptocurrency wallet.

The Most Common Uses Of Personal Loans

Have you ever taken out a personal loan? This financial tool has increased in popularity due to its versatile nature and favorable interest rates it provides to borrowers. People tend to use the borrowed funds for a variety of reasons, ranging from debt consolidation, home remodeling, moving, and emergencies to organizing weddings. 

These loans are most commonly unsecured, repaid in the form of monthly installments over a pre-determined payback period. The monthly installments, interest rates, and time period are determined by the creditworthiness of borrowers. 

Nowadays, there is a myriad of financial brokerage firms, such as https://buttonwoodfinance.com.au, providing clients with beneficial financial solutions by comparing interest rates, lending criteria, and personal loan types from various moneylenders.

Prior to hiring one, take a look at the most common uses of personal credits.

Secured vs unsecured loans

When it comes to taking out a personal loan, borrowers are provided with the opportunity of choosing between a secured and unsecured credit. The former requires borrowers to provide a certain type of collateral in the event of failing to pay the borrowed sum of money back, while the latter requires no pledge on the part of the debtor. 

For instance, when applying for a secured loan, most moneylenders require access to the credit history and savings account of borrowers, as well as some financial assets to serve as a guarantee. The collateral, in the form of a home, a car, or other valuable items, is used to encourage debtors to repay the borrowed amount without delays. Due to the reduced level of risk, lenders are willing to offer lower interest rates and allow clients to get higher credits. 

In contrast, unsecured loans demand no collateral, which minimizes the risk for potential borrowers. In order for moneylenders to approve an unsecured personal credit, they inspect the credit score of applicants. Based on their FICO score, these professionals determine the maximal amount a person can borrow, as well as the interest rates he/she will be required to pay. 

Additionally, people with solid credit scores are more likely to be rewarded with favorable interest rates when compared to the ones with bad FICO scores. In most cases, borrowers have no problem estimating the exact sum of their monthly installments or the payback period, hence being able to plan their finances carefully. Make sure you visit this page for some practical tips about improving your credit score. 

Debt consolidation

Debt consolidation is among the most common reasons for submitting a personal loan application, especially beneficial to people who are already in financial trouble. Instead of paying for multiple loans and credit cards separately, a personal loan would enable you to combine all charges into a single monthly installment. 

Moreover, personal credits are considered particularly favorable for debt consolidation owing to the substantially lower interest rates in comparison with the high annual percentage rates (APRs). As a result, there’s a great likelihood for debtors to repay their credit cards in a reasonable time period, instead of having no hope of ever getting out of debt. 

Home remodeling projects

Another frequent use of personal loans is providing the necessary finances for a home remodeling project, which not all homeowners are capable of financing out of their own pockets. These credits are of tremendous importance to people who can’t afford the necessary home repairs or the desired home improvements.

For instance, many homeowners use the borrowed money to replace or repair their damaged roofs, install a new plumbing system, handle termite property deterioration, and a myriad of other issues that cannot be left unhandled. 

Furthermore, some homeowners decide to take out a personal loan for commencing the long-desired home remodeling project. Whether it’s a bathroom renovation, installing solar panels, or building a swimming pool into your backyards, the borrowed sum of money would be more than enough to cover the cost of the remodeling project you dream of. 

Moving

Long-distance relocation can be rather costly to people who plan to start a new life chapter a great distance from their current residence. Such relocation involves transportation of the household belongings and vehicles across states or perhaps to another continent, as well as purchasing some new pieces of furniture to equip the new home. 

Nevertheless, a personal loan can be of vital assistance when moving, as it will cover transportation and other moving expenses, thus saving you both time and stress. Anyhow, it’s paramount to calculate whether your new source of income would be enough to repay the credit in the required payback period. 

Emergencies

In most cases, people take out personal loans when coping with an emergency that requires an unplanned amount of money. For example, medical expenses are one of the most common reasons why individuals apply for personal credit. Most medical treatments, such as minor surgeries or dental procedures, are rather costly for people to finance without any kind of financial support. 

The same goes for arranging funerals, which are known for being surprisingly expensive. Unless the deceased person left enough money to cover these expenses, family members might not have another alternative but take out a personal loan to arrange the funeral services. 

Weddings

An increasing number of couples decide to get the necessary financing for their big day through personal loans. These credits cover most of the crucial wedding expenses like paying for the venue, the photographer, the wedding planner, and even for the dress of the bride. Some men use the borrowed sum of money to purchase the ideal engagement ring for their future spouses without worrying whether their savings account would cover the cost.

Nowadays, organizing the wedding of your dreams can be overly expensive, hence forcing couples to start their marital life in the red. Instead of using credit cards, future spouses can take out credit with favorable interest rates without going deep into debt.

Final thoughts 

Make sure you hire a financial broker to provide you with the most favorable financial solution. 

It’s worth the investment!