Annual Percentage Rate – Snippets Mon, 23 Aug 2021 19:51:30 +0000 en-US hourly 1 Annual Percentage Rate – Snippets 32 32 Cash Advance, Banking by Empower Finance Thu, 11 Mar 2021 06:15:01 +0000

The Empower card is the only card you will need. Cash advance of up to $ 250 * without interest. Get paid up to 2 days faster †. Earn up to 10% cash back ^. And never pay overdraft fees again. No matter what awaits you, we’ll help you thrive.

(Empower is a financial technology company, not a bank. Banking services provided by FDIC member nbkc bank.)

You do everything you can to move forward, but some weeks it’s just not enough. Empower will give you up to $ 250 in cash fast when you need it most – No interest, no late fees, no credit checks. Simply pay us back when you get your next paycheck.

Set up paycheck deposit on Empower, and we’ll make that money available to you ASAP. This means up to 2 days earlier than most banks. Total game changer.

Save money on places you already shop, like restaurants, grocery stores, gas stations, etc. No random offers, only great offers that you are sure to use every week.

Enjoy convenient access to over 37,000 ATMs across the United States. Use them as often as you want, whenever you want, and never get charged a single penny to withdraw money.

Our A Team is ready to answer your questions by phone or live chat Monday through Friday 6:00 a.m. to 6:00 p.m. PT. (We also have emails if that’s more your jam.)

Empower also helps you to:

Take control of impulse buys with 24/7 alerts that monitor your spending against your spending limits by category.

Save money for emergencies and big purchases without lifting a finger. Just tell us your weekly savings goal and we’ll take a look at your income and expenses on a daily basis to determine when and how much you can afford to save. We’ll automatically transfer that money from your expense account to your Empower AutoSave account so it’s there for you when you need it.


Money Under 30, Investor Junkie, Money Crashers, Consumerism Commentary, The College Investor, DoughRoller

Your personal data belongs to you, and you alone. We will never share or sell your information to a third party.

We keep your money safe with the latest and greatest bank-grade security features and protections: 256-bit AES encryption, multi-factor authentication, Touch / Face ID.

For more information, visit


* Eligibility conditions apply. Free Instant Delivery is available to eligible Empower Checking Account customers with an activated debit card.

† Early access to paycheck deposit funds depends on when employer submits deposits. We typically post these deposits on the day they are received, which can be up to 2 days before the employer’s expected payment date.

^ Reimbursement offers on purchases with the Empower Card, including categories, merchants and percentages, vary and must be selected in the app. The cashback will be applied automatically upon posting of the final transaction, which may take up to a week after the qualifying purchase.

Empower charges an auto-recurring monthly subscription fee of $ 8 to access the full suite of money management features offered on the platform. Subscription fees will apply (a) after the end of the 14-day free trial for new customers, and (b) immediately for customers returning for a second or subsequent subscription. Empower deposits are insured by the FDIC up to $ 250,000.

Empower does not charge an overseas transaction fee for using the Visa Empower debit card outside of the United States. However, Visa charges an overseas transaction fee of 1%. Empower does not reimburse this 1% transaction fee on overseas ATM transactions or any other overseas transaction or purchase.

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Alberta Wheat Says Its Cash Advance Program Will Be Different Thu, 11 Mar 2021 06:15:01 +0000 Reading time: 3 minutes

Alberta farmers now have another service provider when it comes to choosing a cash advance.

Producers in the province can now choose from 11 organizations – five offering cash advances for grains and oilseeds – when they apply for a low-interest or no-interest loan pledged against their crops, livestock or crops. other agricultural products.

But the Entrance to the Alberta Wheat Board in the administration of cash advances is challenged by its main competitor.

The Alberta Wheat Board of Directors first considered becoming a director of the Advance Payments program almost three years ago at a strategic planning meeting. He seized the opportunity for two reasons, according to general manager Tom Steve.

“Partly because we wanted to satisfy our own curiosity and partly because the government encouraged us to consider becoming a director,” he said. “They think there was an advantage in having more administrators who can communicate the benefits of the program and provide an alternative to producers as to how they access it.”

The Alberta Wheat program is available to all producers in the province, not just those looking for a specific product – a problem that has crept into the past with honey, potatoes and greenhouse vegetables. .

“The reality is that some of the other directors offered it primarily to their members,” Steve said.

But Alberta Wheat’s loan program is largely identical to that of the Canadian Canola Growers Association, a major loan provider in the province.

The CEO of the Canola Growers Association called the news “a little surprising, a little disappointing, that AAFC (Agriculture and Agri-Food Canada) has decided to go in the opposite direction by adding a new director for no apparent reason. . “

Federal officials told his organization last year they weren’t looking for more directors – in fact, they talked about downsizing, White said.

Rick White.


“AAFC said their vision for the future was that there would be fewer program administrators, not more,” White said. “There are already 45 to 50 across Canada. We understood that they were hoping for consolidation in the future, not the addition of directors. “

The cash advance program offers loans of $ 400,000, with the first $ 100,000 interest-free and the remaining amount at a competitive rate.

“It’s the same cash advance, it’s nothing new,” White said. “In our opinion, it’s the same program; we’ve been doing this for 35 years. The CCGA has the experience, the business process in place, the built-in efficiencies and various ways of applying and repaying its advances.

“I don’t think there is anything new that anyone can offer farmers. To us this seems to be more of a duplication than anything else, which is unfortunate because the farmers pay for the service.

But Alberta Wheat president Kevin Bender said his organization aims to be different. He called other early programs onerous, and running around to collect signatures was a deterrent for some farmers.

“We’re hoping it will all be done online much more simply – I think it might attract more people to the program,” Bender said. “We’re just trying to provide another medium for our producers. “

The Sylvan Lake producer did not use the cash advance program, but is now considering doing so.

The Wheat Board, which shares the same staff as the Alberta Barley and also manages the finances of the Barley Council of Canada, will charge an administrative fee of $ 50, the same as the Canadian Canola Growers Association. Both groups offer the prime rate on the $ 300,000 portion of the loan.

Although still in his early stages, Steve said there are 25-30 farmers in the Alberta Wheat online application queue, giving him optimism that this initiative has a chance in an already crowded market.

“Considering that we are in the middle of the harvest, we think this is encouraging,” he said. “We just started the Labor Day weekend; we get a lot of phone calls and inquiries. We are very happy at the moment.

The advance of spring always generates more interest, which will provide a more accurate picture of the overall absorption, he added.

It’s unclear whether offering cash advances will generate a surplus, Steve said, but if so, his organization will consult with the agriculture industry to determine how they will be used. The goal will be to reinvest any surplus in Alberta agriculture for the benefit of all producers, he said.

The federal government bears interest charges on the first $ 100,000 of advances issued, as well as losses incurred due to defaults. These costs average around $ 23 million per year, but they fluctuate with changes in interest rates and the economic environment for farming. The federal government does not provide financial support to administrators of the Advance Payments Program.

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Definition of a Business Cash Advance | Small business Thu, 11 Mar 2021 06:15:00 +0000

If you don’t have other alternatives for providing a line of credit for your business, a business cash advance may be your solution. Business cash advances are like corporate payday loans – easy to get but with high interest rates, according to BusinessWeek. Despite the high costs, cash advances to businesses are a booming industry as of 2010.


According to Business Finance, business cash advances, also known as merchant cash advances and accounts receivable factoring, give businesses money in return for reduced future credit card sales. Merchant cash advance companies emphasize that this is not a loan because the customer “buys” the money with a business asset.


In an early business sale, the buyer must return the principal sum and a fee typically set at about 25 percent of the principal, according to The company generally has one year to repay the advance plus costs. Each week, the seller receives a transfer from the buyer’s merchant account. The payment schedule therefore depends in part on the weekly performance of the buyer’s business.


A business doesn’t need to go through a loan application to get a merchant cash advance and receives the money in a week or less, according to BusinessWeek. According to the Dallas Morning News, many cash advance companies will lend to people with very low FICO scores, sometimes in the 400s. Since repayment is dependent on sales, companies often have an easier time meeting their obligations. than with a business loan.


One of the most expensive ways to finance a business is cash advances. Since cash advances are typically repaid within one year, the effective annual percentage rate on purchase often reaches triple digits. At such high interest rates, the business owner may find it difficult to repay the advance. In addition, some companies obtain advances without sufficiently considering the terms of the advance, which means that the advance could cost more than they can reasonably handle.


Some critics of corporate cash advances, such as Sanford Brown, sales manager at Heartland Payment Systems, based in Princeton, New Jersey, see them as predatory loans. Most states put a cap on the amount of interest a lender can charge, but cash advance companies circumvent usury laws because they technically don’t have a standard repayment schedule.

In 2004, Judge Consuelo B. Marshall of the U.S. District Court for the Central District of California ruled in favor of business owners in a case against Rewards Network, saying that cash advances can be interpreted as loans if the company cash advance refers to it as one. The plaintiff, Anat Levy & Associates, claimed that Rewards Network was in fact an unlicensed lender that offered loans that violated usury laws. Rewards Network customers paid an effective interest rate of 419%, while California allows unlicensed providers to charge a maximum APR of 10%.

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Convert your credit cards to cash Thu, 11 Mar 2021 06:15:00 +0000

November 12, 2020

Convert your credits into cash! Use credit cards to launch your business idea

How to convert your credit card to cash

A credit card is defined as a payment card issued by a card issuer (often the bank) to cardholders so that the user can pay a seller for their services or goods. The user promises the issuer that he will pay the agreed amounts and all other charges. The card holder has a revolving account created by the issuer to borrow money to pay the merchant.

Accessing a credit facility can sometimes be very difficult for some people due to the low credit rating and lack of securities.

This article will teach you how to easily convert your credit cards to cash at a very low interest rate.

Follow these simple steps to convert your credit to cash:

  • Step One: Identify a credit card that will offer you the highest possible amount on the cash advance. Make sure you get this card.
  • Step two: Get four or three credit cards that charge 0% APR (annual percentage rate) when you transfer your balances for at least 12 months. Banks usually offer this offer to their customers after taking out a first credit card with them. Banks are always keen to offer credit cards at favorable rates to customers who can get their 1st
  • Step Three: Take the largest amount of cash advance your first credit card can afford. After receiving the amount, immediately transfer it to your other credit cards at an APR of 0%.

You now have a loan repayable in one year with easy payments at 0% APR. Note that the initial cost of your cash loans is probably the lowest you can get in the banking industry. The card on which you take the cash advance will also have zero balances. Invest the money you transferred in the company of your choice, then pay it off for a year without interest. If you need more money, you can repeat this operation.

The benefits of converting your credit card to cash are:

  • You can easily use it multiple times.
  • Instant cash access.
  • Improved credit rating.
  • History and credit checks are minimal.
  • You don’t need to use your assets to get credit; thus, it is not secure.
  • Easy monthly payments, linked to your initial credit.


A cardholder should know how to calculate their refunds. The methods used to calculate it are simple.

  1. Get the minimum payment;

You will ask your (bank) card issuer to provide you with the minimum payment they need from you.

  1. Calculate the amount of interest;

With each installment you pay, one part is used to produce the principal balance while the other erases the accrued interest.

How to calculate the interest charged to you:

  • Check with your card issuer to find out the interest rate charged on your card. You might, for example, find that the interest rate is 12% APR.
  • Convert the annual rate to a monthly rate by dividing it by 12 months to get 1% per month.

If your card issuer charges this per day, divide the annual rate by 365 days to get an interest rate of 0.0328% per day.

  • Multiply 1%, which is the monthly rate, by your outstanding balance. Let’s use £ 5,000 as the balance due in this case.

Use 0.0328% to get the daily rate if that’s the method your card issuer uses. So you will multiply 0.0328% by £ 5,000.

  • Your loan interest for the first (monthly) method will be £ 50, while your daily loan interest as the second method will be £ 1.6438.
  • Repeat this process to get the amount to be billed each month or for each day.
  1. Calculate the principal;

The amount that remains after deducting interest from the payment amount or interest amount is called the principal balance. The bank will tell you how much you will need to pay monthly, depending on the amount and length of your loan.

In this case, the monthly repayment amount is £ 113. The monthly interest charged, as stated above, is £ 50. Subtract £ 50 (interest charged) from the first payment of £ 113 to get £ 63; this amount is the principal amount paid. To get the new total loan outstanding, we will subtract £ 63 from £ 5,000, which was the original loan balance, to get £ 4,937 as the original loan balance.

You will use this new outstanding loan amount to calculate the interest charged in the second month, as shown in step two above. It is important to note that the lower the balance owing, the lower the amount of interest charged on your card. This means that if you speed up your loan repayment by paying a larger installment amount, you will end up lowering the loan interest and paying off your loan sooner.

  1. Repeat the above steps for each month;

You should have understood by now that if you use the monthly formula, you will have less calculations, unlike the daily procedure.

With the simple steps described above, you can now easily calculate the interest charged and create an amortization schedule. You can use a spreadsheet when calculating the amount to make your job easier.

  1. Check for variations;

The above formula may vary for the following reasons

  • Some card issuers will charge you an annual fee. In this case, you will need to add these charges to your outstanding balance to calculate the interest to be charged.
  • Sometimes the card issuer may have a variable interest rate. You will therefore have to adjust your calculation according to the new prices.
  • If you missed a payment, which you should avoid, you will need to adjust your calculations to zero. Ignoring an amount will result in higher interest at the end of the period.


With the money you received above, you can invest it in some small businesses to earn more income which will be useful for the repayment.

  1. Bakery

With minimal capital, you can start making products and selling them. The demand for baked goods in the UK is very high. You can opt to rent a food truck and get a seat on the busy streets where passers-by buy your produce. Online advertisements are also very common, launch an online retail site where you advertise your products, your customers will place an order online and deliver the goods to them.

The UK government has lowered VAT from 20% to 5% until January 2021, according to CHANCELLOR Rishi’s announcement on the summer return for accommodation, food and attractions. It’s very favorable for start-ups.

  1. Pet business

You can start a dog walking business with minimum or zero capital. All you need is some training on how to handle pets, and you are good to go. You can easily earn £ 6-10 for half-hour to hour-long walks for a single dog. With experience this can be very lucrative as you can walk multiple dogs at once.

With minimal capital, you can also start an online delivery business. Petfoodindustry has reported a significant increase in the online delivery of pet food. So it’s a very viable business idea.

  1. Hairdressing, nail and beauty companies

With minimal capital, you can start offering barber or hairdressing services. Minimal training may be required to enable you to provide these services. You can also open an online retail site where your customers can seek help from the comfort of their own homes. Hair, nail and beauty service delivery tools don’t have to be cumbersome, and transporting them to your clients’ families won’t be hectic.

  1. Offer plant-based foods

With a large population adopting a healthy lifestyle, the demand for plant-based foods is increasing. Customers have also adapted to online businesses and therefore advertising your items online will allow you to get customers requiring these foods from the comfort of your home. You will only need minimal capital to buy these products for resale.

  1. Writing company

If you have writing skills, you can easily make a kill by offering your freelance services. Many companies will hire you to write blogs, press releases, and web content. You will only need a good internet connection and a good command of English. Over time, you can get referrals that increase your work.

  1. Rental of bike rides

Bikes of suitable quality are quite expensive. With minimal capital, you can buy several bicycles, which you can rent to individuals who wish to cycle for short periods.

  1. Storage and warehouse company

You can start a business that acts as a storage facility for small businesses. Small businesses could rent your space monthly for a fee. Small business items can then be shipped from your warehouse directly to the customer.

  1. Transcription services for different languages

The UK is a multilingual country and although English is the most widely spoken language we have nationals from all over the world. Sometimes it can become difficult to do business because there are people from Russia, Asia, Africa etc. You can learn a new language or find someone who speaks multiple languages ​​and use that to translate for your clients for a fee. With the right clients, this can be a very lucrative business.

  1. Online Nursing Services

A large part of the UK population is made up of the elderly. Many older people may find it difficult to leave their homes to go to health facilities because of their age or illness. With minimal capital, you can start a portal that offers them online doctor consultations and have a nurse visit them. Contract several nurses for a fee to start this business.

  1. Sale of used and vintage items

With minimal capital, you can buy old furniture for your family and friends and refurbish them. Later list these articles on social media platforms and resell them. Over time, you will be able to get customers who sell vintage items that they no longer need and resell them for a profit.

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The Smartest Ways to Redeem Cash Back Credit Card Rewards Thu, 11 Mar 2021 06:15:00 +0000

Some of the links on this site contain offers from our the partners.

Cash back credit cards are among the most popular rewards credit cards available today. These rewards credit cards are relatively easy to understand. Redeeming the cash back you earn with them is also pretty straightforward.

How you use the cash back you earn can make a big difference. Rather than using your credit card rewards to buy luxury items or pay for travel expenses, you can improve your overall financial health. While using cash back rewards to get you in a better financial position isn’t as fun as the alternative, you can be happy that you got the smarter money down the road.

How Cash Back and Cash Back Work

Each cash back credit card has its own rewards program that determines how you earn and redeem your rewards for cash. That said, most programs have a lot in common. You usually earn rewards for using your credit card to make purchases. The cash back rate you earn depends on the card.

Some cards offer cash back as a fixed percentage of everything you buy. Others offer bonus cash back rewards in particular categories such as gas stations, grocery stores, or restaurants. “If you are skilled with these cards with every purchase, you could earn between 1 and 4 or 5% cash back,” says Justin Bailey, co-founder and CTO of the financial planning app Vimvest.

Cash back can be automatically applied as a statement credit or placed in a rewards account where you must take action to redeem it. When you’re ready to use your rewards, you can call the credit card issuer or log into your online account to claim your cash back.

How you can redeem your cash back rewards will also vary depending on the card. Most cards allow you to request at least one or two of the following options: a check, credit statement, or direct deposit to a bank account. Some credit card rewards programs even allow you to automatically transfer your money to a savings account. Automatic savings account transfers can help you avoid being tempted to use the money for other things, says Logan Allec, CPA and owner of the personal finance blog Money Done Right.

Smart Ways to Use Cash Back Credit Card

The best use of the cash back you earn depends on your particular financial situation. What may be a smart decision for one person may be less than optimal for someone else. Here are five solid ways to use your cash back to improve your finances.

Pay off high interest debt. Getting out of debt as early as possible is extremely important when it comes to taking advantage of additional income such as cash back rewards, Bailey explains. If you have a high interest rate credit card or personal loan debt, using your cash back to make additional principal payments on that debt is a good choice most of the time. Paying more on your debt reduces the total amount of interest you pay and saves you money in the long run.

It also helps you pay off debt faster. “Debt is like a monster. The higher the interest rate, the faster that monster grows, so you want to get rid of it as quickly as possible,” Allec explains.

Pay for major planned expenses (or surprises). The cash back you earn can help pay for life’s boring big purchases that no one wants to pay for. If you own a car or a house, major expenses such as new tires or a water heater can occur. And when the time comes to make the purchase, if you don’t have the money, you have to go into debt.

You know these big expenses will happen eventually, so you can reduce their impact on your budget by setting aside your cash back to pay for them. While you probably won’t make enough money in a few months to pay for a set of tires or a water heater, saving money over a longer period of time might work.

“Every little bit counts, and I think that’s the beauty of the Cash Back Rewards, especially over time,” says Allec. If you don’t have enough time until you need to purchase the item, you can use both Cash Back Rewards and Regular Savings to reach your goal.

Start or expand an emergency fund. An emergency fund is an essential tool you can use to improve and protect your finances. Most experts recommend saving three to eight months of living expenses for a suitable emergency fund. Your emergency savings can help you make smarter, long-term decisions without worrying about the immediate financial impact. Emergency savings can also help you avoid going into debt by providing a buffer for large unforeseen expenses or a temporary reduction in income.

Just like the cash back you earn in a few months probably won’t pay for a water heater, your cash back probably won’t be able to cover a few months of living expenses either. That said, every cash back dollar you put aside to build your emergency fund helps you reach your goal faster and protect the rest of your finances a bit more.

Save towards major goals. Cash Back Credit Cards can still help improve your finances, even if you don’t have high interest debt and have already built up an emergency fund. Major financial goals, like saving for a down payment on a car or a house, take a long time to achieve.

Allocating the cash back you earn from your credit cards can help you reach those goals faster. It may seem unnecessary to spend the relatively small amount of money you earn on those goals that require thousands or tens of thousands of dollars, but it can make a measurable difference.

Normally, people have to save for these goals for years. In some cases, adding the cash back you earn to your regular savings can help you reach your goals a little earlier.

Invest for your retirement. Generally, the biggest impact your cash back credit cards can have is investing for your future retirement needs. “When you get cash back and invest it over the next few decades, the cash back you get today is going to multiply,” Allec explains.

This is due to the power of compound returns, which means that the money you earn by investing your cash back is added to your investment balance. Then these income can generate additional income on their own. “If you’re relatively young, let’s say in your 30s, taking advantage of these cards can be very beneficial to you,” says Bailey.

The amount of cash back you earn each year may be as low as a few hundred dollars, even if you put all possible purchases on a credit card. That said, applying it constructively rather than frivolously can make a real difference in the long run. Using your cash back in this way can turn a seemingly insignificant amount of money into a major benefit later in your life, Bailey explains.

Let’s say you earn $ 500 in cash back every year. If you invest your $ 500 in cash back this year and get a 6% annual return for the next 30 years, that $ 500 will turn into $ 2,871. If you’re even more diligent and invest your $ 500 rebate this year and each year for a total of 30 years while getting the same 6% annual return, you’ll end up with $ 44,775.

Maximize cash back rewards by redeeming for the best value for money

Some credit cards allow you to redeem your rewards for multiple options rather than just cash back. Travel rewards cards, such as the Chase Sapphire Preferred Card, may allow you to redeem points at a higher value if you use certain redemption options. This special card allows you to book a trip through the Hunt the ultimate rewards travel portal for a value of 1.25 cents per point.

To get the most out of your credit card rewards and put yourself in the best possible financial position, try to maximize the value of your rewards within reason. For example, if you had an upcoming trip and planned to pay cash for the trip, it often makes more sense to redeem your rewards for the higher price of 1.25 cents per point by booking through the Chase Ultimate Rewards trip. Then take the money you would have spent on that trip purchase and put it towards the goal where you allocate your cash rewards.

Remember, Cash Back Rewards are only valuable if you don’t have a balance on your credit cards. Otherwise, the interest you pay is likely to exceed the cash back you earn. As long as you don’t have a balance on your cards, using this cash back product productively can help you prepare for a brighter financial future.

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How to Manage Your Small Business Cash Flow Thu, 11 Mar 2021 06:15:00 +0000

A business cannot survive without money. But what is the real impact of cash flow on a business and what happens when that business has a cash flow problem? Simply put, cash flow is the amount of money a business has, whether that money is transferred into or out of the business. Managing that money can be a bit more complicated, requiring some useful tools and tips.

“Cash flow is the lifeblood of any business, and without positive cash flow, the business can experience problems in operating the business,” said Bob Castaneda, director of Walden University Master of Accounting Program. “Failure to pay some of a company’s most important stakeholders – such as employees, suppliers, or the IRS – can seriously prevent a company from doing long-term business.”

Good cash flow management is a key part of a healthy and growing business. This guide will walk you through the basics of cash flow management and offer tips on how to improve your business cash flow.

Why cash flow management is a crucial part of running a business

“Cash flow management is simple – think of it as the process of analyzing and tracking how much money you get minus the money you spend,” said Chris Terschluse, Head of Marketing and Content at the house of Carillon. “A company’s ability to optimize its free cash flow is generally an indicator that a company’s overall financial health is strong.”

The reverse is also true. If cash flow becomes an issue, it can lead to issues like late payrolls and the inability to pay vendors or suppliers, which could lead to a business downgrade.

Negative cash flow can impact other areas, “such as reinvesting profits into growth opportunities or the ability to properly staff their already existing operations,” Terschluse said. “Studies show that most businesses fail because of poor cash flow management practices. Without keeping track of your cash flow, it’s easy to spend money you don’t have.

Jenn Flynn, Head of Small Business Bank Division at A capital lettersaid a recent Capital One study which found that 42% of small business owners cite cash flow management as a top concern.

“Moving forward, small business owners should consider developing a cash flow management plan,” she said. “This will help measure how much money is coming in and going out each month. This process will also highlight any potential cash flow shortages and allow business owners to anticipate any issues that may arise in the future. a savings cushion can also help business owners prepare for unforeseen expenses or future growth opportunities. “

Keep your cash flow under control

Flynn pointed out that since effective cash flow management is essential to a successful business, planning ahead can help you get there. It is also imperative to understand your cash flow statements.

“A cash flow statement summarizes the money in and out of a business, detailing cash inflows (from sales) and cash outlays (from expenses),” Flynn said. “These expenses include operating expenses like payroll, utilities, insurance as well as taxes and loan repayments. If you are entering a growth phase, take the time to understand what you will need to support your business now and in the future. It’s important to realize that cash flow issues won’t be solved overnight with a loan. A financial forecast will help determine the timing of cash flow needs. ”

Castaneda said that a good enterprise resource planning system used in budgeting can help you capture and track payment commitments in the future by identifying when goods or services are ordered.

“Weekly and monthly cash budgets should be created and reviewed by management to understand the financial condition of the business,” he said. “Treasury strategies can then be put in place, such as financing long-term assets or developing working capital commitments from suppliers. ”

Flynn also said that “understanding how much money is coming in and going out each month, ensuring prompt payment to customers and suppliers, paying bills on time, planning the financial future, monitoring inventory and various other factors” are key to better cash flow. management.

“The best thing a business owner can do is understand the money coming in and going out, know their finances inside and out, and be diligent about saving extra funds for the unexpected. Additionally, we often recommend that business owners consider opening a line of credit even when cash flow is positive, economic conditions are good, and interest rates are low, ”said Flynn, adding that it can help bring peace of mind in the event of a market downturn, sudden spending, or even an unexpected growth opportunity.

Example of a cash flow statement

Source: Courtesy of Chime

Factors That May Cause Cash Flow Problems

Cash flow issues aren’t just for seasonal or niche businesses. Even a business with the most “in” product or service can run into cash flow problems.

“Cash flow issues can be caused by fundamental issues, such as not having enough customers or clients, not charging enough for your services, or just having too many expenses,” said Flynn.

But these are not the only things that can lead to cash flow issues. Flynn added that they can also be the result of more nuanced or unexpected factors – “for example, a client who is chronically late in paying their bills, an unexpected tax bill, or changes in minimum wage.”

Many of these problems show up in seasonal businesses, Terschluse added, as they tend to generate most of their income during the summer or the holiday season. But the main cause of cash flow problems is low profits, losses, overspending, and excessive customer credit.

“To avoid them, make sure your profit margins support and sustain all business operations, that your inventory meets demand, and limit your customers’ credit or incentivize them to pay off debts quickly,” Terschluse said. .

Dewey Martin, professor emeritus at the Husson University School of Accounting, also noted that companies that grow too fast often have cash flow problems.

“As a small business grows, it will have more money tied up in accounts receivable and inventory,” he said. “Reducing the amount of accounts receivable or the amount of inventory held by a small business can improve an organization’s cash flow. ”

Managing cash flow is a process, Martin said, and as part of that process, a business decides when to pay bills and estimates when it is likely to receive revenue.

“Good cash flow management requires companies to prepare a budget for expected revenues and disbursements,” Martin added. “Managing cash flow is essential to the financial health of an organization. It is quite possible for a profitable organization to go bankrupt due to poor cash flow management. ”

Tips for improving cash flow

There are several ways to improve cash flow that can help keep your business in the dark. There are two great ways to improve your cash flow. Increase the money that comes in and decrease the money that goes out.

Collect unpaid debts.

One way to improve cash flow is to collect unpaid debts.

It is important to send invoices quickly. According to Investopedia, accepting electronic payments makes it easier for customers to pay and get funds to you faster.

You may also want to consider offering early payment discounts. It is human nature to defer paying bills until they are due. Providing a prepayment discount encourages your customers to pay earlier, so you can invest in your business faster.

Finally, customer credit checks can ensure that you are dealing with those who will foot the bill reliably. Refusing a sale may seem counterintuitive, but if you are not being paid for your product or service, the sale is not to your advantage.

Reduce supplier costs.

Lowering your supplier costs can also improve your cash flow. You can do this by negotiating and maintaining good relationships with your suppliers. Also inquire about discounts for wholesale purchases.

You may also want to form a buyers cooperative. There is the power of numbers. If your supplier is willing to offer a big discount on big wholesale purchases, you may be able to team up with other companies to make a big purchase that will save everyone money.

Check your inventory.

Inventory can tie up a lot of money. Of course, this is a necessity for many businesses. However, some items will sell faster than others. Some items are seasonal and some simply fall out of favor over time.

If you have a big excess stocks, you can improve your cash flow by selling it. In addition to tying up your money, there’s storage to consider. Sell ​​it at a discount to get rid of it and put money in your pocket.

You may experience a feeling of “what if”. What if an increase in popularity (and demand) is imminent? It is important to be realistic and logical when it comes to valuing your inventory. Keep what sells. Don’t cling to things out of sentimentality.

Equipment rental.

When cash flow is tight, purchasing expensive equipment can be a big hurdle. You may find it more beneficial to rent the equipment. The purchase often requires a large lump sum which can hurt your cash flow. You need to make sure you have the cash on hand to cover lease payments before getting a lease, but leasing doesn’t have as much of an immediate impact on your cash flow.

Increase your sales.

One sure-fire way to improve cash flow is to increase your sales. A small loss of profit per sale is easily offset by an increase in overall sales. Consider offering promotions and discounts. You can also increase sales by improving your marketing strategy, but this will often require a larger marketing budget, which will decrease your cash flow. You will need to determine if the expected increase in sales is worth it.

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Going to withdraw money on credit cards? Watch out for fees Thu, 11 Mar 2021 06:15:00 +0000
Here are the fees that credit cards incur when withdrawing cash;

Credit cards can be an extremely convenient way to manage your finances, but at the same time, they can be very expensive and risky. For example, while it is easy and convenient to get money by credit card, it can cost you a lot of money. Additional interest, as well as other charges such as processing fees, finance charges, cash advance fees, etc. do not make this option a preferable option for people.

Credit cards are known to be an emergency line of credit and can act as a financial safety net to cover an unforeseen cost that arises during a cash flow crisis. However, this comes at a cost.

Here are the fees that credit cards incur when withdrawing cash;

  • Interest is charged at a certain monthly percentage decided by the bank at the time of purchasing the card. Interest will be charged from the date of the transaction until the borrower makes the full repayment. Usually, an interest rate of 2.5-3.5% per month is charged by banks on all cash advances, or about 30-42% per annum. However, this rate varies from bank to bank and card to card.
  • Whenever a cardholder uses their credit card to withdraw money, a cash advance fee is charged. This also typically ranges from 2.5 to 3 percent of the amount withdrawn, or a minimum amount of Rs 300 to 500. Note that these fees also vary from bank to bank.
  • A finance charge is levied on the borrower from the date of the cash withdrawal until full repayment of the amount. Keep in mind that credit card holders must also pay finance charges on cash advance fees at a rate similar to that charged on the amount withdrawn.
  • Reward points promised with the use of credit cards are not offered with cash transactions. Therefore, regardless of the transaction amount, you will not be entitled to any reward points for cash withdrawals by credit card.
  • Credit cards are notorious for their interest-free period, however, with withdrawing cash using a credit card, the usual 45-day interest-free period is not valid. Therefore, with cash advances, interest accumulates until it is fully repaid.

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Cash advance by credit card: what you need to know before withdrawing money from your credit card Thu, 11 Mar 2021 06:15:00 +0000
While credit cards are undoubtedly an easy and convenient way to get much-needed cash, one should carefully consider one’s interest and other related charges before availing of a cash advance on one’s home. credit card.

The cash advance feature is one of the many features available on a credit card that provides instant cash to cardholders. And we are often tempted to withdraw money when needed. However, according to financial experts, withdrawing money with your credit card is not the most ideal thing to do given the huge fees associated with it.

For example, “When you use your credit card to withdraw money, you are charged approximately 2.5% to 3% of the amount withdrawn, subject to a minimum amount of between Rs 500 and Rs. 700, sometimes less or sometimes more, as it varies from bank to bank, ”says Aditya Kumar, Founder and CEO of

Besides the withdrawal fees, you will also have to pay the interest associated with the transactions. Interest charges are separate and quite massive, with withdrawals subject to daily interest charges until the amount is fully settled. In most cases, banks charge interest charges of between 2.5% and 4% per month.

You should also remember that there is no interest free period for cash withdrawals. Thus, interest would be charged on the amount from day one. This interest rate varies from bank to bank and can reach 48% per year.

“Now suppose the amount, whether minimum or total, is not paid on the due date. If this happens, late payment fees of between 15% and 30% would be levied on the outstanding balance, and paying them in addition to principal and interest could be very costly. Therefore, withdrawing money by credit card is not recommended. If there is a shortage of cash, there are other loan options available that could be cheaper than credit cards, ”said Ranjit Punja, co-founder and CEO of CreditMantri.

So while credit cards are undoubtedly an easy and convenient way to get much-needed cash, one should carefully consider one’s interest and other related charges before availing of a cash advance. on his credit card.

Here is an overview of some of the fees associated with cash credit card loans:

Cash advance fees: These fees are charged each time a credit card is used to withdraw money and typically range from 2.5 to 3% of the amount withdrawn, subject to a minimum amount of Rs 500 to Rs 700.

The interest: Interest on credit card cash advances is billed monthly and debited from the date of the transaction until the loan is paid off in full. Banks typically charge an interest rate of 2.5% to 4% per month on all cash advances. The rate varies depending on the bank and the card.

Late payment fees: If the amount is not paid in full, late fees ranging from 15% to 30% would be levied on the outstanding balance.

Moreover, “since there is no interest free period on cash withdrawals by using credit cards, interest starts accruing from day one until the outstanding amount is paid off in full. Thus, cardholders should avoid withdrawing money from their credit cards and opt for other options such as line of credit, which provide the ability to withdraw up to 100% of the card limit. cash credit at no additional cost, ”advises Kunal Varma, Commercial Director. & Co-founder, MoneyTap.

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Cash Advance Fee Warning for Credit Card Users Thu, 11 Mar 2021 06:15:00 +0000

Written by: Emma Lunn


Credit card users can be caught off guard by high fees because they don’t understand what transactions are classified as “cash advances,” according to Totally Money.

A cash advance fee is added to any cash transaction on a credit card. But that’s not just limited to cash withdrawals – there are other transactions categorized as cash as well.

The 2019 Annual Financial Awareness Survey, conducted by OnePoll and commissioned by TotallyMoney, found that most people don’t know that buying lottery tickets, fantasy football entrance fees, and redeeming foreign currencies all trigger a cash advance fee.

How much are the cash advance fees?

A cash advance fee is charged as a percentage of the amount spent on the card or as a lump sum. For example, 3% or £ 3 per cash transaction, whichever is greater. For small purchases, the charges might be higher than the item itself.

For example, a lottery ticket costing £ 2 could incur a cash advance fee of £ 3, which means the fee is 150% higher than the ticket itself. This is before all interest is added.

Interest charges on credit card cash advances generally apply from the time the transaction takes place, rather than having a maximum of 58 days before interest is charged. Cash advance transactions are also generally excluded from any 0% interest offer, leaving customers even more to pay.

Alastair Douglas, CEO of Credit Experts TotallyMoney, said: “If customers aren’t aware of the cash advance fee, they can use their credit card just like a debit card. In some cases, people may not realize that fees or interest are being added until they verify their statement.

“Knowing your fees enables customers to make profitable purchasing decisions. If you’re applying for a credit card, find out how much the cash advance fee is.

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Cash-strapped WAVE transit warns city, county may be “forced to suspend operations” Thu, 11 Mar 2021 06:15:00 +0000

WILMINGTON, NC (WECT) – Transit WAVE is strapped for cash. Wilmington’s bus system depends on money from federal, state and local governments to operate, and some of that money has not materialized as quickly as expected.

WAVE expects approximately $ 1.2 million in state and federal guaranteed funding. Cash flow problems in Raleigh delayed $ 700,000 of money allocated to WAVE in the state budget, prompting the transportation authority to request a cash advance from the city and county.

“On behalf of the Cape Fear Public Transportation Authority, we are requesting a loan or cash advance of $ 700,000 on fiscal year 2021 funding,” Cape Fear Public Transportation Authority CFO Joseph Mininni wrote, in an email to the city and county on Tuesday. “This request goes beyond any additional support envisaged for the 2020 financial year. Without a loan or advance, the Authority will be forced to suspend its operations from February 15 of this year.”

Asked about the possibility of suspending the bus service next month after the Transportation Authority board meeting on Thursday, WAVE director Albert Eby downplayed the worst-case scenario described in the email.

“We have an agreement with the City of Wilmington that they will give us or may give us cash advances or advances against certain grants, so we’ve started the process, but no, we certainly don’t anticipate any interruptions. in service, ”Eby said. He later added that WAVE learned Thursday that the state would release $ 175,000 of the delayed funds this week to address the cash flow shortage.

While this will bring some relief in the short term, it might not last long. Wilmington Mayor Bill Saffo expressed serious concerns about the cash advance request when WECT contacted him by phone Thursday afternoon.

“This [request] was sent to [council members] yesterday, and we were all taken by surprise, ”Saffo said. He explained that a few years ago the city helped establish a fund balance for WAVE which he recalled to around $ 800,000, to help the transportation company deal with cash shortages in situations like this one. He believed the city was supposed to be notified if that balance of funds were to be depleted.

“Why is there no money in the fund balance? Saffo questioned the proposed cash advance. “Are we going to be in the same situation in 6 months, 8 months?

Eby and WAVE board members stressed that public transport is never a profitable business and depends on public funding to subsidize the service that many residents rely on to get to work and at their medical appointments. They said they are disappointed with the implications of some local leaders that the authority’s financial problems are the result of mismanagement.

“Until people see public transport as a service like any other service provided by the county, until they do and stop thinking about making our public transport systems generators. money, we’ll always have this problem, ”Cape Fear Public Transportation said Chairman of the Board, Steven Kelly.

Saffo said he expected a decision to be made on the cash advance request within two weeks.

Copyright 2020 WECT. All rights reserved.

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