When looking to start a small business on your own, you can easily go crazy with all that excitement involved.Read more
Choosing right credit card can be amongst the major decision to keep your finances on track. Here are 6 tips that you should consider for choosing a credit card.
APR is actually the cost that you bear for borrowing through your credit card when you do not pay entire balance every month. APR offered by different cards can be compared and it will be helpful for you in selecting the one that comes at cheapest price. Other things should also be considered like incentives, charges and fees.
If the balance is not paid off by you every month then you will have to repay some minimum amount. Typically, it’s about three percent of total due balance.
Sometimes, you are charged a specific fee for using the card every year. This fee is included in your due amount that has to be paid. It should be kept in mind that interest has to be paid on this fee amount and on the spending as well, unless the charges are paid in full. The credit agreement should be checked for establishing what kind of other charges you may have to bear.
This is one of the most significant considerations to be made. Quite often you are told that your card comes with 0% APR. It means there would be no interest charged at all. However, that’s usually an introductory rate. So make sure to read their fine print and finding out what exactly would you be charged in terms of interest.
Usually, these points keep adding up whenever you spend using your credit card for buying different items. Usually, this option is only available for shopping at specific shops. You can later use your reward points to shop for free. So, it is important to determine where and how you can use the reward points and then consider the likelihood for you to use them.
Cash backs allow you to get refunds and it usually depends on the amount you spend using your card. Consider what amount you’d normally be spending using your credit card and that whether you will be able to reach the minimum qualification limit to avail cash backs. For instance, the criteria for getting cash backs may be that you have to pay the entire balance every month. Consider will you be eligible for that.Read more
A company could own but not possess money
People owe each other money all the time; same is the case with businesses except the money is sometimes large enough to save a company from insufficient cash flow. Supplies are bought by someone and they usually do not pay in full until the entire product is sold. This means a lot of a company’s money is stuck in the market. This kind of money is included in the company’s receivables and this is the money actually owned by the company but not possessed by it.Read more
Insufficient cash flow, entropy of business
In any business, it is critical matter to understand the path of each and every penny that goes to and from the hands of a company. Cash flow of a company must be such that it not only could keep its machinery running but also earn profit. But cash flow cannot always remain healthy. Due to recession or other causes, a company may lose its worth and may end up with an insufficient cash flow. When this problem arises, the risks of a company going bankrupt elevate.Read more
Every business needs thrift every now and then
Businesses are always prone to recession; many problems can strike a business and affect its cash flow. Cash flow is life of business, and insufficient cash flow could mean bankruptcy. Money starts a business and money is what keeps it running. Businesses are supposed to generate money with which they run and earn profit for the owner. Banks are the places where extra funds can be gained when needed; which is usually at the start of a business and during a recessive session of the business.Read more
In order to raise funds for your business, you are required to consider a lot of funding options that are available in the market. Debtor finance is a type of business funding options and you must consider its pros and cons before availing the option. It is a concept wherein the agency keeps all your trade receivables as security in exchange of cash.Read more