Friday, September 14, 2018

How a Current Account Helps in Transacting Business in a Secure Manner

business finance
A business owner should be able to distinguish between his personal finance and business capital under all circumstances. You may open a business current account just to keep track of your business incomes and expenses separately from that of your personal finance.

Apart from improving your financial planning on the business front, a current account will help project your entire financial situation in details. Ascertaining a true and fair view of your business will help you to keep your personal finance segregated from that of your business finance.

Know how a current account helps a business owner:

• Helps in proving creditworthiness

Your creditworthiness may be checked by lenders prior to offering a credit-line. This process gets facilitated once you open a current account. The fact that you hold a current account can be proven very easily when you produce a bank letter stating the same. Creditworthiness can even be checked with the help of inter bank connections. You must continue to pay your bills on time even when you’re seeking a new personal loan. You may calculate the amount that you can afford to repay each month with the help of a personal loan EMI calculator. Your current account will even come to your rescue when you need to show a guarantee to a foreign counterpart, especially when you’re into import or export business. Maintaining your current account with a reputable banking concern will help in simplifying the entire process while proving your creditworthiness.

• Promotes a professional image

Maintaining professionalism is truly important while running a business. It helps in developing your business network, promoting your image, and expanding your business. You can prove your point by using a current account for your business dealings. All cheques that are received and issued by you while transacting business will mention your current account. The seriousness and responsibility with which you conduct business get symbolized by your current account.

• Simplifies banking transactions

Compared to a savings account of an individual, a few extra benefits are offered under a current account. Few effective value-added services are now offered by banks as the competition is becoming stiffer with each passing day. All current account holders are now eligible for these offers as they come at no additional charge.

Current accounts are considered as favorites by all banking concerns as these accounts don’t yield any interest for the account holder. However, most of the current account kits come with benefits like cell-phone alerts, online banking, and doorstep services.

Apart from this, a good number of free demand drafts and pay orders are offered to the account holders. He can even utilize NEFT/RTGs for availing the instant fund transfer facility. Although you don’t need to maintain a certain balance, few banks tend to support you with a zero balance account.

In order to ensure a personalized service for each of these current account holders, a bank provides them with benefits like that of multi-location funds transfer, multi-location withdrawals, monthly statements, free deposits, relationship managers, and free remittances. However, you might need to ensure a minimum balance although each of these services comes in handy with your savings bank account.

The primary objective of opening a current account is to transact business in a simplified manner. This, in turn, helps in running a business more smoothly and accurately.

Wednesday, September 12, 2018

Endowment or Money Back – Which of These Plans Will Protect Your Interests?

money returns
There are times when you may feel confused about the types of investment plans you should buy. This article is intended to clarify your doubts while attempting to compare and pick money back and endowment plans. It takes a lot of researching for you to determine which insurance plan matches your long-term investment goals.

Initially, you may feel confused due to the presence of so many investment products launched by insurance providers at a time. Intermediaries can make certain features seem more confusing while offering a savings plan there by causing more of miss-selling.

Need to Choose the Right Insurance Plan

Most investors tend to choose orthodox plans for acquiring good returns on savings from time to time. This, in turn, will help them achieve savings that can meet both their long-term and short-term financial goals. Money back and endowment plans are among all traditional plans that have grown popular of late. You might get confused about choosing the right investment option when you have certain shaded areas on your policy benefits and returns. An endowment ora money back policy has a certain blend of insurance and investment component. The period of time that lapses between the releases of sum assured proves to be the basic difference of these plans.

Benefits Receipt Term

Money Back Plans:

A certain percentage of the sum assured is paid to the policyholder periodically and the remaining bonuses and sum assured are met on the maturity of the policy term.

Endowment Plans:

Once the policy term is survived by the policyholder then upon maturity all applicable bonuses and agreed sum assured are paid to him.

Buying Criteria

You may accumulate considerable savings by investing in endowment plans if your primary objective is to look for long-term savings goals. It will help you create a fund for managing your retirement years, child’s marriage and other financial obligations. A money back plan is ideal for you when your regular income suffices your short-term requirements only.

Death Benefits

In the event of a policyholder’s death during the terms of his endowment and money back policy, both policies will pay him his applicable bonuses and sum assured. Money back plans will yield income regularly after a specified period. You’ll need to go through the policy paper very carefully while signing up.

At the end of the initial 5 years, you’ll be entitled to receive a survival benefit worth 20% based on your basic sum assured. Likewise, at the end of the 10th policy year and the 15th policy year, you’ll receive survival benefits worth 20%. But at the end of the 20th policy year, you’ll receive 60% of survival benefits alongside the vested bonus. So, that yields a benefit worth 120% for you in total.

Final Words:

You’ll need to be sure of your investment goals prior to choosing your money back or endowment plans and then pick them accordingly. While narrowing down on your chosen plans, you must check out the riders and policy benefits very carefully. In the end, both plans chosen by you are good; in order to achieve a fruitful investment, you must base your decisions on the nature of your investment goals.

Monday, September 10, 2018

Car Insurance - An Insurance Plan For All Road emergencies

coverage on car
Personal vehicle is a necessity in our daily routine. Public transport is easy on the pocket but at times it cannot rely on punctuality and safety of an individual. In case, you have a meeting for your presentation on which you invested your endless day and night. On presentation day you left from home before time to catch bus for your office. But, due to rush or late schedule bus, you miss it. You look for alternate transport option but, it all make your work hard instead of easy and you get late for your office. But if you have your own vehicle, you can reach your destination on time and with full comfort. Car saves you from all odd transport odd conditions, so you should also give your input to save and secure your vehicle.

Car insurance is the best possible way to take care of your expenses that arise during an unfortunate event like the accident, third party liability during accident or theft. Car insurance assists policyholder during financial emergencies that occur because of mishaps. Any bodily injuries that are caused to the driver and co-passenger and reimbursement for the damage or loss that is caused to the third party during an accident. There are various insurance policies and many insurance companies. One should be far-sighted while choosing one insurance plan as it is the only thing that will matter in your time of need. You should be aware of your need and requirements from an insurance plan to avoid any glitch in the hour of need.

Key benefits of car insurance –

Car insurance offers various benefits to the policyholder, but benefits again the same depend on the type of insurance policy that one choose. We can list some of the key benefits of car insurance as following –

• Car insurance offer covers against loss or damage to the insured car.

• It offers cover and reimbursement for various unavoidable risks like damage caused to the vehicle by accident, theft, fire, explosion, strikes or natural calamities.

• It offers coverage against various financial ups and downs that an individual face due to third-party damage or loss.

• One can get personal accident cover by car insurance for a security cover during any car accident. 

Car Insurance is a very vast field and offers various good coverage. There are ‘n' number of car insurance and broadly car insurance can be divided into two types as discussed below –

Third party car insurance policy

This insurance policy is especially for the third person liability security. It is normally not between the insurer and the insured but for a third party who can be anyone affected during the accident of an insured car like fare paying or non-fare paying passenger or any pedestrians. Under this plan, passengers of private vehicles and pillion riders are also covered considerably. In case of death or injury, liability cover is unlimited. As this plan do not offer a wide cover so this insurance plan is affordable. You can take help of PolicyX to choose the best car insurance plan according to your needs.

Comprehensive Car Insurance Policy - This is the umbrella cover against all loss and damage that result due to an accident of an insured vehicle. It protects the insured vehicle against any loss or damage that is caused due to man-made calamities like theft, riot, strike or rt., or natural calamities such as fire, lighting, flood, storm etc. This plan also offers a personal accident cover for the owner and passengers of the insured vehicle. Above all, it also offers third person liability cover so one does not need to buy it separately. But, the premium amount of the plan is also high as compared to other car insurance plan because this plan offers an overall protection cover during the car accident. One can also enjoy various add-on covers at an extra premium amount.

There are many options but only a car owner know what kind of protective cover he/she is looking from and what are the requirements for the same. One should compare various factors like premium amount and claim ratio of various car insurance policy before settling. Third party car insurance cover or a comprehensive car insurance policy, one should opt any based on their need.

Saturday, September 1, 2018

Car Finance explained - A Knowledge base

explaining car finance
Car finance can be a pretty damn confusing field. It can seem like a jungle of meaningless acronyms and abbreviations. Don’t worry though. I’m here to provide everyone who doesn’t know their HP from their BCH with a ray of hope. Here’s my guide to the main types of car finance, their benefits and their drawbacks!

Hire Purchase

Hire Purchase is a pretty old-fashioned form of car finance. It’s pretty much the standard type of finance that people turn to when it comes to getting their hands on a car. With hire purchase, you pay an initial deposit and then pay back regular monthly payments for a given period, until the complete value of the car has been paid off. Interest will also be added to the payments.

My good pal, Wikipedia, sums up Hire Purchase pretty well:

“An arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g. 40% of the total) and repays the balance of the price of the asset plus interest over a period of time.”

This type of car finance is probably the most popular when it comes to offering a route to owning a car, even if you don’t have all the money upfront.

Pros

● Provides a fairly manageable process to eventually own a car
● Relatively easy to get approved for– provided you have a pretty good credit rating
● You’ll eventually become the legal owner of a car, to do what you want with

Cons

● Depreciation means that your car will probably be worth significantly less at the end of a HP agreement than it was when you first started paying for it.
● If you have a bad credit history, getting a HP agreement can be pretty difficult
● The finance company can repossess the car without a court order until you’ve paid a third of its value off

Personal Contract Purchase

This type of car finance is pretty much what would happen if hire purchase and personal contract hire were to have a baby. MoneysavingExpert.com, a pretty good, independent authority when it comes to finance matters, describes PCP as “..one of the more complex financial products available to help you buy a car, but it can be broken down into three main parts: 1. The deposit (usually around 10% of the car's price); 2. The amount your borrow; 3. The balloon payment (a balancing payment you pay IF you want to own the car).”

A cross between buying and leasing, this type of finance gives you the best of both worlds but it comes with a sting in the tail– the huge balloon payment you need to make at the end if you want to buy the car. This is notoriously big, so if you plan on buying the car at the end of the contract, you better start saving now.

Pros

● It combines the best parts of buying with the best parts of leasing
● It gives you the possibility of becoming an owner of a car
● Fixed monthly payments

Cons

● It can work out significantly more expensive than traditional types of leasing
● The balloon payment can be pretty hefty at the end of the agreement if you want to buy
● You’ll have to agree to a mileage restriction. If you go over this, you’ll be charged for each mile you exceed.

Personal Contract Hire

You’ve probably come across a personal contract hire in some form and you don’t even realise. Put simply, personal contract hire is the main type of leasing contract available in the UK. It’s a type of lease that’s aimed at people who use a car solely for their own, personal use – as opposed to business use.

Confused.com describe PCH says that: “PCH effectively involves renting a vehicle from a car finance company. With personal contract hire, you lease the car over the agreed contract period, and pay an initial deposit - normally the equivalent of three, six, nine, or 12 months worth of payments.”

A personal contract hire lease gives you the benefit of not having to worry about the crippling depreciation that affects all new cars, as well as giving you much lower monthly payments than if you were leasing.

It’s essentially because with a contract hire lease, you’re only paying off the value that the car is expected to lose whilst you’re leasing it – not the entire amount like you would with a hire purchase contract.

Pros

● Lower monthly repayments compared to hire purchase and other forms of car finance
● Fixed payments for the entire lease
● You won’t have to worry about how much the car might depreciate in value whilst you’ve got it.

Cons

● Expensive to get out of early
● If you don’t keep up on repayments your car can be repossessed
● You won’t actually be the owner of the car – just the registered keeper

Business Contract Hire

This type of leasing is essentially the same as personal contract hire, except for one seemingly small, but in reality, pretty big, difference – this type of contract hire is designed specifically for businesses! It’s available to any type of business in the UK– whether you’re a small sole trader or partnership, or a massive limited company.

Will Craig, CEO of LeaseFetcher, a car lease comparison site that lets you compare millions of leasing deals, told me: “You’ll often find that the majority of business contract hire agreements have slightly more competitive terms than personal contract hire agreements. This is because the BCH market tends to be more of a lucrative cash-cow for finance companies. For example, you’ll probably get a slightly lower monthly rate on a specific car on BHC than PCH– but we’re talking about savings in the tens of pounds, as opposed to savings in the hundreds or thousands.”

In its own right though, business contract hire, and leasing in general, has some major benefits for companies though – the major one being that with leasing, companies don’t need to expend any capital. The fact that monthly repayments are fixed means that businesses can also benefit from an improved cash flow.

Pros

● Your business won’t face the risk of losing money through depreciation, because you’ll never own the car
● You won’t have any capital expenditure
● Fixed, monthly payments improve the cash flow of your business

Cons

● You’ll still have to face those pesky mileage limits, as well as maintenance schedules
● Getting out of the contract early can be expensive
● You’ll need to get fully comprehensive insurance out on the car

About the Author: Tom Butcher is a freelance writer who recently escaped the world of print journalism. He covers a wide range of topics, including finance, business and motoring.

Saturday, August 11, 2018

Make Freedom from Debt a Primary Goal

debt freedom
Make freedom from debt a priority, even if you do not yet see how you are going to accomplish it. Each time you are faced with a decision, evaluate whether the outcome is going to further your goal of paying off your debt and living debt-free. If not, you must decide whether the rewards are worth the amount you will pay in interest by not paying your debt off early. Suppose taking a particular job will give you valuable work experience that will add to your resume and further your career, but the starting salary is so low that you will have to reduce your payments and pay off your debt over a longer period of time. Is the benefit worth the cost? How about spending your tax refund on a two-week tropical vacation?

Are the stress relief and the time spent bonding with your family or friends worth the sacrifices you might have to make later? Could you shorten the vacation or stay closer to home, and put half of that money toward paying off the loan? What if your company matches your 401(k) contribution up to 3 percent of your salary?

Are you going to gain more from claiming the matching funds and earning a 4 percent return on the savings you sock away, or from using that money to quickly pay off a private student loan with a 12 percent interest rate? Some trade-offs, particularly those that promise long-term benefits like retirement savings or career advancement, may be worth making, and there may be times when, for personal reasons, you choose instant gratification over paying off your loans earlier. At least you are making a conscious choice and weighing the consequences of your actions. When you are aware that you are making a choice, you are less likely to act irresponsibly or in a way that drives you further into debt.

Know Your Financial Realities

The first step to your future financial security is having a clear understanding of your present circumstances. Based on this understanding you will be able to identify your needs and your resources, develop a plan of action, and regularly evaluate your progress to see whether you are still on course.

Income and Outcome

Begin by making a list of all your financial assets, including the money in your checking and savings accounts, investments, and savings bonds. If possible, use a spreadsheet on a computer so that you can do calculations and rearrange the information easily. Next, write down your regular monthly income from all sources. If your income comes at intervals from commissions, contracts, or royalties, write down what you have received over the last six months, and any payments you expect to receive within the next three months, and divide the total by nine. This should be reliable income that you are certain of receiving; note tentative income and pending contracts separately. Now, take a look at your bank statement and credit card statements for the last month, and in another column, write down the amount you have withdrawn from each account. Subtract any major one-time expenditures, such as the purchase of an appliance or payment of a large medical bill. Add up your income and your expenditures, and compare them. If your expenditures for the last month were greater than your income, you need to act quickly to avoid going deeper into debt. Think about how last month compares to other months of the year; was it a typical month, or a month in which you had extra expenses, such as property taxes or Christmas shopping? Are there months when you spend less to compensate? Now make a list of everything you owe: student loans, credit card balances, mortgage, and money you borrowed from a friend or parent.

Create a “Picture” of Your Student Loans

Gather all your student loan documents together and create a chart or a spreadsheet of all your loans. You can begin by going online and looking up your federal loans in the National Student Loan Data System, at www.nslds.ed.gov. Details of private and federal loans obtained through Sallie Mae can be found at Loan Advisor Money Lender. If you borrowed directly from a private lender, look up the information on your promissory note and loan documents, or contact the loan servicer directly.

On a chart or spreadsheet, write down the name and contact information of the loan servicer for each loan, including a telephone number and Web URL, and your account number. Beside each loan, write down the type of loan, the school you attended, the date when the loan was disbursed, the amount of the loan principal, the interest rate, the amount of principal and interest outstanding, the term of the loan, the repayment plan, and the monthly payment and due date. If you have a consolidation loan, remember that it was used to pay off underlying loans that are no longer outstanding. FinAid.org has a convenient chart, at www.finaid.org/loans/studentloanchecklist.phtml, that you can print and fill in. This loan “picture” will help you understand your obligations and make decisions about paying off or consolidating loans. It will also serve as a reference when you need to contact your loan servicer. It is impossible to say exactly how much you will finally pay; the amount is affected by the length of time over which you pay the loan off, whether you have periods of forbearance or make extra payments, and variations in interest rates. You can use calculators, however, to estimate how much you will pay under different circumstances. Add a column to your loan chart showing how much you will pay if the loan is paid off in ten years. Update the chart whenever you make extra payments to bring down the loan balance.

Tuesday, July 31, 2018

Key things you need know to survive in Forex market

deal with currencies
No one in this world can lead to their dream life without working hard. If you look at the experienced retail traders you will find one thing in common. They all are a very hard worker and knows the precise way of market analysis. You might have very access to the trading environment but this doesn’t mean you will be able to make a profit on a regular basis. Losing trades will be always a part of this profession. Though this market offers an extreme level of profit factors to the retail traders this doesn’t mean you will be making a high standard living from a very small investment. If you want to earn more money you need to invest more. But without learning all the details of this market you should never go for big investment. There are few things which you need to know before you start to trade the live market.

Learn from your mistakes

This is one of the most vital things you need to know to become a successful a trader. If you don’t learn from your mistakes you will never fix your existing problems. Some traders often think trading is nothing but gambling. But this is the worst comment, they have ever made in their life. In order to spot your mistake, you must have a trading journal. Some of you might follow the digital journal but it will never help you. Old fashion things are still best when it comes to Forex trading profession. When you write the details of each trade, things will become really very transparent. You won’t be over trading the market since you will be focused on quality trade execution.

Be a confident trader

You have to become a confident trader. Those who lack in confidence can never execute the perfect trade at the right time. Finding the perfect trade setup in your trading platform is very easy but executing the trade at the right time is very hard. This is where you need to show your confidence level. Some of the retail traders might say how to develop a strong level of confidence? Education is the only thing that can help you to develop a strong level of confidence. For the first few months, you need to use the demo accounts so that you are not losing any real money during your learning stage.

Always keep things simple

The rookie traders always love to make things complex. They think by using a complex trading strategy they can easily make money in the long run. When things are too much complex, you will be always under stress. And the first condition to execute a quality trade is the stress-free trading environment. You might be thinking emotions has nothing to do with your profit factors. But if this is one of the most vital thing directly affecting the outcome of each trade.

Use the chart pattern

Chart pattern trading strategy is extremely popular among the professional traders. Majority of the professional price action traders uses the simple chart pattern trading strategy to execute high-quality trades with a very low-risk exposure. The first thing you need to understand to trade the chart pattern is the overall strength of the market trend. Prior to the major breakout, the market will exhibit a ranging movement. At such times you have to stay cautious and look for potential price action trade setups. You might be thinking this is extremely easy but in real time trading spotting the chart pattern and executing a trade is very hard.

So far we have given you the most valuable advice which can change your career. Following these rules seems to be very easy but if you look at the experienced traders you will understand this is the most complex thing in the world. So take your step very carefully when it comes to retail trading business.