Monthly Archives: October 2015

Fixed Asset Management

Fixed asset management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. This applies to all industries because doing so makes the workplace more productive.

Without fixed asset management, the equipment and resources of the company are not used both effectively and efficiently. Think of it like a car. If you do not have the oil changed, it will break down. The net effect is being able to save money instead of spending it on repairs which could have been avoided in the first place.

This is why companies take various steps to manage these closely. For instance, machines that are used undergo regular maintenance. If anything needs to be replaced or replenished, this is ordered well in advance so there will not be any disruptions at the workplace.

If the machines are already obsolete and there are newer models that can do a better job, management must consider the costs of buying it or maintaining the old one. In recent times, new equipment is purchased to avoid being left behind the competitors.

Management also has to coordinate with the various departments in the company to see how each one is doing. This is done on a monthly basis to determine whether the company is achieving growth. If it is not, find out why and then do something about it.

For large companies that need to ship goods nationwide, management has to check on their logistical support. Will it be cheaper to maintain their own set of trucks or should they outsource this to someone else?

If the company is experiencing some hard times because of a few companies that are not pulling their weight, management has to decide whether to sell it or find a way to improve it. Should there be an opportunity to gain something, then they also have to consider if this will be beneficial to their portfolio.

Companies also let their auditing teams conduct an inventory to take into account their fixed assets. Sometimes, they may need outside help to do it and there are a number of established companies that have the manpower to do exactly that. They can even suggest to management improvements that need to be done  that may well be worth the expense of hiring seasoned professionals.

In order for management to see how well the company is doing, the asset management data has to be put on paper. These days, this means computerizing everything so everyone in management will be able to give their input and agree to a suitable plan.

Fixed asset management is what every company needs to survive in the 21st century. This will serve as a guide whenever money has to be used to buy things or whether the funds of a certain project have to be diverted elsewhere.
Before any decision is made, they have to ask themselves a series of questions.  For instance, will this be good for the business long term? How much can we make? How much do we stand to lose? Is this the latest technology around? Is this the best thing in the market today?

These are just some of the questions that companies have to ask themselves in order to practice effective fixed asset management.

Sell Annuity Payment To Refinance Home Loans

Annuity payments correspond to a big amount of money if summed up. It can be acquired in a number of ways. Oftentimes, it is piled up through one’s retirement funds or maybe it is the proceeds of an insurance claim. However an annuity payment is achieved, it all boils down to one thing – the individual who acts as the direct beneficial will receive a good amount of money.

But then again, that amount of money is not readily available to the payee. It would be over a certain period of time in cases of retirement annuity and in a yearly basis like in insurance annuity payments. The amount is paid for in equal yearly installments as per the agreement or until the full amount of money is paid off.

Annuity payments can be used to refinance a house. You can use the money you’ll receive yearly to pay the yearly amortization of your house financing. People who are receiving annuities could specifically schedule their house refinance payment to achieve a more balanced cash flow.

For example, you are set to receive an annuity payment for the amount of $10,000 yearly. If your home mortgage amounts to $15,000 yearly, then it is best that you refinance your home loan and make the yearly payable to match the amount due with the amount payable.

This is how annuity payments and refinance mortgage would work for you. You can refinance your home to perfectly match your yearly cash in and cash out. It would work perfectly for you once you have balanced cash flow, things would look up better for you.

You can also choose to receive your whole annuity in one go. This means that instead of waiting each year for the annuity payments, you can just go to a financial company buying annuities and request a cash quote from them. This way, you will be able to get the full amount of your annuity instantly. You don’t need to wait for several years before you would get your money.

And you can do so much with that cash too. For starters, you can buy off the remaining mortgage of your house to make it fully your own. You can even choose to buy an entirely new house with the money you have.
It’s a good thing that annuities had become a lot more flexible now. Gone were the times that you have to sit back and wait for your money to arrive. Now, you have the option to do just that, or cash in the full amount of your annuity to give you full use of your money.

Refinance your homes today. Or better yet, buy it off using the amount of money you are to receive. You can definitely use your retirement annuity to ensure you of full ownership of the million-dollar dream house that you are living in today.

Today, you can do so much with annuities. It is up to you maximize the benefits that you will gain from it. You can choose to sell your annuity to your full advantage. Or you can just continue receiving it like you used to.
It’s your choice. But if you were to avail of the better option, you should definitely consider selling your annuity to the financial experts.

Why Car Rental Companies Insist On Credit Card For Obtaining Reservation

All the major car rental companies insist on payments by credit card. This is a standard practice because credit cards are fast, secure and reliable.

Almost every company in the field of car renting demands a credit card while renting the car. Apart from seeking credit card, an authorization is also obtained

This is basically done to cover any expenses related to potential damages that may be caused due to a number of factors. In short, the credit card is a kind of security deposit against damage or loss that may be caused.
In case the car is returned in perfect condition, no charge is levied by the car rental company. In such a case, the only fee charged is the rental fee.

If there is any damage to the car, the car rental company will instantly charge the damage cover. This is done as per the terms and conditions of the agreement.

The car rental company does not add up to the credit immediately after renting the car. The only amount that is charged is an advanced charge approval.

This means that some amount is reserved by the car rental company from the credit card. This amount is reserved as an amount that you may have to pay in case of damage to the car.

The car rental companies do not accept debit cards or a check card. The main reason is because it is not possible for the car rental companies to process advance charge approval for the car damage.

How To Get A Credit Card No Matter How Bad Your Credit Rating

Your credit is bad.  Perhaps you have a string of unpaid bills haunting your past.  Maybe you declared bankruptcy within the past 10 years, or defaulted on a student loan.

All of the above can block your access to obtaining a major credit card, such as VISA or Mastercard.
But bad credit is not the only reason you can be denied a major credit card.  Some people simply have never used credit.  People who like to pay cash only, have never financed a car, taken out a college loan, or a mortgage may have zero experience with credit.  In that case, most card companies will reject your application, not because you have bad credit — but because you have no credit rating.

Many women who marry young and do all their borrowing under their husband’s name often find themselves with no credit rating after they are widowed or divorced.  Thousands of women have been denied loans and credit cards on that basis.

Still other people carry too much debt to be considered a good risk.  If you have a car loan, a student loan, a mortgage, two or three — out cards, you are unlikely to be granted another credit card.

But in any and all of the above cases, you can still obtain a credit card. No matter how bad your credit, and even if you have declared bankruptcy, you can still be granted a VISA or Mastercard with a limit as high as $5,000, if you know the write company to call, and how to make your application.

We are going to reveal these card companies and the methods by which you can obtain a VISA or Mastercard later in this report, but first, let’s talk about some of the other things you really should know about credit cards, including annual fees, interest rates, credit reports and more.

Your Credit Rating

How do credit card companies decide if you are a good credit risk or a bad credit risk?  Well, it’s sort of a Big Brother thing.  There are several large agencies in America which track the borrowing and buying behavior of just about every single American who has borrowed money at one time or another.

The three  major credit rating agencies are:              Experian       Equifax       and   Trans Union Corp.  :
When you send in an application for a credit card, the card company contacts one of the above agencies, which pulls your file, if one exists, and let’s the company know if you have any bad debts in your background.

If you have never borrowed money or used credit of any kind, your name will not appear in the data base of any of the above.  If you have, there will almost certainly be information about you.  If you have ever defaulted on a bill, or walked away from a debt owed, that information will be available. If you have never defaulted on a loan, but have made frequent late payments, that is recorded, too, and goes against your credit rating.

25 Percent Error Rate –
If this sounds a bit like Big Brother, most would agree with you that it is. It’s scary to think that some large anonymous corporation is keeping a file on you, but it’s true.  Furthermore, they will share your file with any lending institution that wants to know something about you.  That’s the price you pay to obtain credit.  You’ve heard the statement, ‘there ain’t no such thing as a free lunch.”   When it comes to the game of credit, the lunch is definitely not free, neither in the monetary sense, or in the realm of personal freedom.

To top things off, credit agencies make errors in as many as one-fourth (25 percent) of all their reports.  At this minute, false information about you may be ruining your credit rating.
To check your credit rating for errors, call the agencies at the numbers we provided above.  They will request that you send them a written letter asking for a copy of your credit report.  They will send you a copy of the information they have about you.

Now let’s look at how card companies make the big bucks — interest rates.

Interest Rates
A few decades ago there were laws against charging the kinds of interest rates credit cards get today.  Exorbitantly high interest rates were called “usury,” and were forbidden by federal law.  Just 30 years ago loaning money at 20 percent would have landed any banker in prison.  Such rates were the territory of loan sharks and organized crime.
Today, however, it’s standard business.  Some cards have rates approaching 21 percent.  Some product manufacturers, such as Apple Computer, have credit plans that push a whopping 23 percent.

Most credit card companies attract customers with super low interest rates, sometimes as easy as 5 percent.  But what they only tell you in the fine print, which few people bother to read, it that the interest rate jumps back up after six months.  Many cards that start you out at 6 percent soon jump to 18 percent, or higher.  By that time, most people have chalked up a balance and are stuck.  Most people simply fail to notice when their rate increases. Credit card companies count on that. They like who take no interest in details.  If you don’t watch them, they’ll watch you — and your wallet — and dip into it in the most insidious ways.

No Annual Fee Cards
Some credit card companies charge no annual fee for use of their card. Annual fees range from $18 to $55.  You pay it every year simply for the privilege of using the card.  Other companies charge no annual fee.  You might think, then, that this is a better deal.  Most often they are not. Cards with no annual fee almost always have a higher interest rate.  If you leave a monthly balance, you’ll always pay more than the annual fee in interest charges.  Only if you never leave an unpaid monthly balance can you benefit form a card with no annual fee.

Perks and Freebies
One of those insidious ways is the offer such perks as frequent flier miles or annual rebates.  Use the card so often, and get X amount of frequent flier miles.  Use your card, and get credit toward the purchase of an automobile.  Is this a good deal?  Hardly ever.  As you might have guessed, the offer of rebates and gifts is simply an inducement for you to pay super high interest rates.  Unless you are a big spender and travel a lot, you’ll rarely benefit from this kind of promotion.

Be Choosy
In short, never sign up for a credit card until you compare rates.  Shop around.  Credit card companies are just as competitive as any other kind of business.  That means interest rates that vary widely.  In general, never go for a card that is five percent higher than the current prime rate.

How To Get A Lower Rate
What if you are already on the hook with a major credit card with an agonizing rate of interest?  Pick up the phone, call your card company, and get tough.  Often, if you ask for a lower interest rate, you’ll get one — it’s as simple as that.

As further incentive, you can threaten to transfer your balance to another card company with a lower rate.  Many card companies are more than willing to take you on as a customer by paying off one of their competitors for you.  Of course, you are then beholden to them.  That’s okay if you score a lower interest rate.

How Anyone Can Get a Credit Card
Now what about all of you “hopeless cases” out there.  What if you have deplorable credit, or no credit rating at all.  You may have already been turned down by a half-dozen card companies.  What can you do?
First, you should think long and hard about why you want a credit card in the first place.  If you have a history of bad credit, a credit card may be the last thing you need.  Many people feel that credit cards and the debt they lead people into is a modern form of slavery.

Credit cards are almost magically deceptive and alluring.  They get at the deepest psychological lever of the human mind — a lever which allows people to have the feeling they are getting something for free, when in fact, they are paying two, three, four, even ten times as much for that product because of the interest they will pay on each purchase.

On the other hand, not having a credit card is becoming less and less practical in modern America.  You can’t rent a car without a credit card. Carrying cash is dangerous.  Checks are not accepted everywhere — and traveling to another city or country is extremely difficult without the confidence and identity a credit card brings.

A Secured Card
If you decide you really need and want a credit card despite your past problems with credit, you should get what is called a secured credit card. Even people who have declared bankruptcy are granted secured cards.
A secured card works this way:  you pay a lump sum of cash upfront either to your bank or the card company itself, usually from $200 to $2,500.  The card company will then grant your credit for up to 150 percent of the amount of your deposit.  If you pony up $500, you will be granted a $750 credit line.  If you put up $1,000, you will get $1,500 in credit, and so on.

Your deposit money will earn a very nice 4 to 5 percent interest while it is held as collateral by your bank or the card company.  The deposit money acts like a buffer for the lender.  In the event you default on your card debt, the lender gets to keep your money.  They may still incur a net loss, but the risk is far less.

Additionally, the interest you gain on your deposit will offset the interest on your monthly balance if you have one.  If you get a secured card with an 18 percent interest rate, you can feel good about the fact that your pre-payment is earning 5 percent.

Which card companies offer secured credit card plans?  The following:
CitiBank — Minimum deposit is $300, which earns 4%. Call: 800-933-2484
Federal Savings Bank — Minimum deposit is $250, which earn 2.5%.  Call 800-285-9090
Orchard Bank — Minimum deposit is $400, which pays 4%  Call 800-873-7307
Key Federal — Minimum deposit is $300, which earns from 4% to 5%.  Call 800-228-2230
Signet Bank — Minimum deposit is $200, which earns 5%. Call 800-333-7116.

Using a secured credit card can also help repair your credit rating if you use it responsibly over a number of years. Even if you do not have bad credit, a secured credit card is recommended for anyone who wants the safety and convenience of a credit card.  Secured cards are a safe, responsible way to control your spending, and you actually earn money though interest on your deposit while you enjoy the use of your card.

DISCLAIMER: At the time of writing the referenced banks, companies, and phone numbers were valid. However, with progress and the consolidation of so many companies they may now be outdated – but the concepts and points made are still good. Where you find references outdated – simply substitute the current company.

Entrepreneurs In The Land Of Credit!

No matter who you are, what type of business you’re in, or how long you’ve been around – we all at one time or another have visited the “land of credit”.  It is vital to the reputation of your business that we learn some tips about credit and how to not let it ruin us.  It’s a smart move, especially in today’s political and business climate, when credit laws are changing at what seems like minutes and not months.

“Old-school” business mentors have fostered the idea that a man’s word was his bond, but in today’s business world the majority of people are always assuming – and assuming the worst.  Creditors, debtors or anyone that base their theories on assumptions are headed for failure, and yet it’s done everyday.  When people fail to pay their bills on time, many creditors assume the debtor doesn’t have the means to pay the debt.  These creditors will often set up an arrangement or lower the amount so that you can repay the debt.  This is a step to credit repair, however it takes you to contact the creditor and apprise him or her of your situation.

Staying in contact with your payments each month can help you avoid bad credit and getting into such a situation.  If you have several bills on hand and all the bills are pressing, it makes sense to pay off the debt that benefits you the most.  After this is paid then you can set aside an amount toward the next debt.  Once you follow this strategy it allows you to work your bills down gradually thus repairing your credit standing.

If you don’t have the funds to pay the entire bill, at least pay the minimum amount due so that you can continue using the service.  Many debtors assume they are in debt and there’s nothing that they can do to resolve their problems, and this is the process of giving up on life.  When we give up, it leads to stress and the answer is often right in front of our nose.  Creditors are business people too, and if approached properly will usually try to work with you.
Of course making the wise decision ahead of the game is the ultimate solution to maintaining good credit.  If you research the marketplace before coming to a purchasing decision, you’re well on your way to avoiding bad credit and credit repair hassles.

Many people when taking out a home mortgage loan are not aware of the options available to them.  They’ll walk in the bank door, fill out the application, and accept the terms & conditions when offered to them.  There are many families and individuals who filed bankruptcy because they couldn’t afford their homes anymore, and primarily because they didn’t take the time to check the marketplace first and search the options available to them.

Being informed and educated are two of the best tools offered to us.  There are mortgage loans that offer overpayments and underpayments, and these loans include vacation packages and lump sum payments to the borrowers.  There are also other loans available that offer low mortgage monthly installments and low interest rates with insurance policies attached that will pay your mortgage if you are sick, unemployed, or in an accident.

On the other hand, there are mortgage loans that have high interest rates, high mortgages and balloon payments attached.  When balloon payments are attached to home mortgages it is almost guaranteed that in a few years you’ll be searching for a solution to repair your credit.  There are many home lenders who will not tell you the truth about the variety of home loans available because they are making money and you’re a source of income.  It’s important to scope the terms & agreements carefully, as well as reading all fine print on any loan contract before you sign.  If you’re applying for a home loan and want to avoid bad credit, it makes sense to learn what the fees include and how much those fees are.

Here are some tips about loans that we’ll all take out during our life:
1. Car Loans – When applying for a car loan it’s also important to research the marketplace before agreeing to any terms & conditions.  Make sure you find the best deals affordable to you.  In college I learned the secret golden rule of car dealers, and that is that most dealers up the fees on cars by 15%.  This means that if you negotiate wisely with the dealer you can get a reduction on the vehicle up to 15%.

2. Credit Cards – A word of advice when applying for credit cards, stay away from cards that have fees attached and high interest rates.  Avoid credit card offers that have upfront fees or offer a high line of credit for a fee.

3. College Loans – Always consider investigating student loans before committing your self to a personal loan agreement.  You may be qualified for a student grant from the government if you take the time to research the opportunities.

KNOW THE SCORE by Maureen Stephenson

Building Credit History
Building your credit history is important in today’s time, especially since the laws are changing. We are moving into a system that is making it difficult for us to get ahead unless we have excellent, or at most good credit history.
Credit is important to rent, obtain student loans, and apply for loans or credit cards, as well as getting jobs and especially for entrepreneurs wanting their own business. Nowadays if you do not have a major credit card, it is nearly impossible to make purchases at some areas.

Bad credit only leads to frustration and headaches we want to avoid. If you have bad scores on your credit report, it takes seven long years before the credit is cleared and ten years for bankruptcies to be removed from your files. Therefore, if you want to save yourself some headaches it is time to get started building your credit history.

To do this you have to keep constant watch of the activities on your credit report. To obtain copies of your credit report contact the three B’s. TransUnion, Equifax and Experian have updated copies of your reports. To find out more information go online to get the information needed to get your copies. After you review, your credit reports make sure there are no false claims against you on the report before you proceed to clear up your accounts. If you notice, any false claims make sure to file a dispute immediately with each credit bureau. You are protected under law and it is the credit bureaus obligations to investigate the claims and clear up any mishaps.

Once you get the card or loan, make sure you meet each month’s installments. If you miss any payments the co-signers are responsible to pick up the tab. do not make enemies, pay your dues on time. After about six months of using your credit card or else paying on the loan you will have notoriety and able to apply for credit cards or loans in your own name.

After about one year, you will have built your credit if you continue this procedure and can then apply for a home mortgage loan or car loan. It depends on your income and age when bank lenders investigate your case to determine if you qualify for a loan. Therefore, if you are in your forties and just getting started building credit your applications will take longer for consideration. Getting started early is the trick to building a stable credit history. Now if you have a credit history already you want to maintain payments to avoid complications.

Once you establish a bad credit history, it is harder to get back on your feet again. The best solution for maintaining, building, or else reestablishing credit history is to keep a close monitoring system on your financial tabs. Remember, credit history is important to your future and nowadays everyone judges you by your credit.

Buying Your Dream Car-get The Best Car Loan

These days the dealers of car are providing the customers with various finance packages. So if you are going to make your most spending on getting your dream car, you can surely get various options to finance your car this time. Yes you can borrow the required to purchase the car of your choice in the form of loan in affordable rates. Although you will be offered to take car financing facilities from your dealer from whom you are buying your car yet you are bound to take so rather you are free to take loans from individual lender, banks, lending institutes, online lenders etc. It is generally of about two to five years. To get the right finance or the best finance firstly you need to have the loan of best rates that you can afford very easily. For that purpose you have to shop around the whole market very closely so that you don’t make any wrong decision over that purchase. While taking car loans don’t depend fully on whatever you watch as the commercials of car loan facilities.

Try to get the right concept regarding that and clear out your every confusion about car loan so that you can be a bit confident and don’t make any mistakes in selecting the source of your car finance.  The next step should be to have an exact idea of the charges you are being charged in taking car loan. It is better to calculate the annual percentage rate of the loan you are supposed to take. APR is very important as it helps to calculate the cost of loan and it also help to know your monthly payment. Attractive APR does not always seem to be affordable for you and sometimes if you get interested in getting discount on loans, remember that in that case you will have to pay extra charge for getting that facility. So don’t make any quick decision and if you find the rates of any lender are not much affordable for you, go to another lender as the rates always vary from lender to lender.

Before taking the loan facility you should also make your close vision towards the down payments and closing payments. Look into whether you’re are also paying extra or any additional payments, the main thing is that you need to get the perfect knowledge of the whole payment term of the loans. Another important step before obtaining any best car loan facility is to have knowledge of your own credit history. Whenever you are taking a car loan you have to show a copy of your credit history to your lender so that they can make a glance on your debt ratios and that will help you to get right response of your lender to you.

The whole process is not much difficult, you just to need to know the whole matter, have discussions with various lenders, before going for any option calculate by your own and then compare that with lenders opinion. In this way it will be no more difficult deal for you to perform and thus you will probably have the best car financing.

Tried For A Bank Business Loan, Lately

If you’ve tried to get a loan from the bank for your business lately, you know it’s no slam-dunk.  The promos for SBA loans and loans for minority or women owned businesses sounds great, but when you get nose-to-nose with a banker it’s another story.
Some of the reasons that make it seem so difficult are that many lending officers feel that they’re lending you their money instead of the bank’s.  They take almost personal responsibility for maximizing repayment.
Another is that they are particularly suspect of new ventures. Since 4 out of 5 or 80% fail within the first three years, many lenders require a three-year history of doing business.

Lastly, with all the bank merging and acquisitions that have taken place the decision-making process has been moved far off-site from the local branch.  Add all of these reasons up, and you had better be prepared to razzle-dazzle the banker.

Here are some tips to make lending you more attractive to the bank.  First, start with a two-part presentation.  Initially submit a brief overview of your loan request.  In this overview include:
* Excerpts from your business plan about your business concept, management team, and financial projections.

* Credit history overviews of the principals of your business.

* Brief answers to key lender questions of how much you’ll need, how you’ll use it, and how will you pay it back?

This should be a two to three page document and can be considered a mutual qualifier.  It determines if the bank has any interest in lending you funds before you spin your wheels for hours in front of the loan officer. You may want to end the document with your phone number so that the banker can call you back for an appointment or discussion.
If you’ve dazzled the loan officer sufficiently and have obtained an appointment to meet with him, then it’s time to prepare the “big guns”.  The ammo you’ll come prepared with will be three years of personal tax returns for all the principals of your company and the existing business.  Include credit reports on all principals, a complete and impressive business plan, and collateral and capitalization information. This sounds like a lot of information and will require immense effort, but that’s why business ownership isn’t for everyone.

In addition to being prepared with all that paperwork be prepared for any off-the-wall questions the lender might throw at you.  Take time to think about and originate a 30-second commercial about what you plan on doing and how it will benefit them and the business.

Be prepared to explain away any credit blemishes that show up on the credit reports before the banker has an opportunity to worry about them.  Be sure you’re able to show “cash-flow” understanding and awareness, without which any business is doomed.  Plot your most realistic estimated cash flow and bank account balance.  Make sure the bank balance never goes negative, and for a good touch show the loan repayment as a separate line item.  This shows the banker that you understand priorities.

Collateral may be needed to satisfy the lender’s angst about repayment of the loan, and unfortunately most small businesses have too few assets to satisfy this need.  Many entrepreneurs are forced to pledge personal assets such as their home to allay the bank.  This may seem scary, and it is, unless you’re really sure of your success.

It sounds like a daunting task, but with some preparation and determination it can be done.  It’s not as easy as all the ads you’ve heard, and just the fact that you are starting a “woman-owned” business won’t cut any ice with a banker, but all of life is a gamble isn’t it?
After all, that’s why you’re an entrepreneur instead of a corporate lackey isn’t it?  GO FOR THE GOLD!