Managing Cash Flow by Cutting Costs
Posted by Pegasus on August 15th, 2011
Managing finances in a small business is way more difficult as compared to a big corporate group since SMEs mostly suffer from financial constraints and face resource crunch. To maintain a smooth cash flow effectively, small firms need to know the art of cutting costs and putting a cap on unnecessary expenditures.
Cut corners to maintain a hold on finances
Trimming expenses become more imperative for SMEs during an economic crisis when financial dynamics alter to a great extent. It is crucial for SMEs to take a stock of their finances from time-to-time and accordingly chart out a cost-cutting plan, which can help it maintain the company’s profitability and avert margins from plunging too low during challenging times.
“Cost rationalisation becomes very significant for SMEs especially when economic headwinds blow in the wrong direction and it is then that they need to tighten their purse strings. Cutting down expenditures on capricious factors will only strengthen the business’ financial position during tough times,” said G Maheswari, proprietor of Kishangarh Marbles, a small-sized Marble supplier in Ajmer, Rajasthan.
From deploying cost-saving technological tools to reducing business travel expenses and keeping a tab on marketing spends, small companies need to adopt several cost-effective operational strategies to cut corners.
“Cash flow issues are one of the most pertinent challenges faced by SMEs in India and most small businesses fail to resolve their credit concerns as they are unable to put a cap on their costs and limit their spending. Companies need to look at various mediums to pare costs and tap all available credit lines to give their business stability,” said P Toshniwal, senior analyst at Rathi Securities, a small-sized securities house in Kolkata.
However, cost rationalisation cannot alone help SMEs attain financial stability. It becomes mandatory for small companies to streamline their management processes as well. Concentrated efforts to enhance business prospects and a well-grounded strategy can help companies to maximise their earnings besides cutting down on costs.
Article Source: http://EzineArticles.com/4066044
Cut corners to maintain a hold on finances
Trimming expenses become more imperative for SMEs during an economic crisis when financial dynamics alter to a great extent. It is crucial for SMEs to take a stock of their finances from time-to-time and accordingly chart out a cost-cutting plan, which can help it maintain the company’s profitability and avert margins from plunging too low during challenging times.
“Cost rationalisation becomes very significant for SMEs especially when economic headwinds blow in the wrong direction and it is then that they need to tighten their purse strings. Cutting down expenditures on capricious factors will only strengthen the business’ financial position during tough times,” said G Maheswari, proprietor of Kishangarh Marbles, a small-sized Marble supplier in Ajmer, Rajasthan.
From deploying cost-saving technological tools to reducing business travel expenses and keeping a tab on marketing spends, small companies need to adopt several cost-effective operational strategies to cut corners.
“Cash flow issues are one of the most pertinent challenges faced by SMEs in India and most small businesses fail to resolve their credit concerns as they are unable to put a cap on their costs and limit their spending. Companies need to look at various mediums to pare costs and tap all available credit lines to give their business stability,” said P Toshniwal, senior analyst at Rathi Securities, a small-sized securities house in Kolkata.
However, cost rationalisation cannot alone help SMEs attain financial stability. It becomes mandatory for small companies to streamline their management processes as well. Concentrated efforts to enhance business prospects and a well-grounded strategy can help companies to maximise their earnings besides cutting down on costs.
Article Source: http://EzineArticles.com/4066044
How to Manage Your Money Effectively
Posted by Pegasus on August 15th, 2011
The way you manage life and money is relatively evident on how you manage your career or business and lifestyle as a person. You may be enjoying a promising career right now or in the middle of setting up your business for more profits or simply wondering how you could surpass your current financial problems and obtain financial freedom in the future that all you must need to know in the first place is the proper way of managing your money for a brighter future.
Think back of the way you handle your money during your college years. Money management during these years may seem different to students since they came from different family cultures and backgrounds. You may have the privilege to live a college life full of fun and luxury compared to other students who work to pay tuition fees for themselves and other expenses involved that you may not be aware enough on how important is sticking to a tight budget. Either way you may be into, you should know and practice effective money management habits for a successful personality and lifestyle.
The Truth About Managing Your Finances
Money, like time and energy, could be preserved, wasted or duplicated to endless amounts depending on how you handle it. You may come from a rich clan with pure money luck along your way or from a poor family but both of you have choices on how you could make more money in the long run to achieve financial freedom.
You maybe rich enough to look for a career after college or even to attend further studies at all but if you just spend all your money for fun and pleasure during your youth and never think about the long course of life, then you will soon find yourself having little or no money at all that your last recourse is to borrow funds or worse be drowned in debt. No matter how rich you are if you will not work or think of ways to maximize and duplicate your resources a hundred fold and be lazy all the time, then you will definitely get a taste of poverty in the end.
On the other hand, if you belong to the group of working students and lower class families but with a strong determination to succeed and strictly practice the best way in handling money issues, then you have a greater chance to succeed and be a multi-millionaire soon or be at least financially free.
Everyone has equal rights to become rich. The secret revealed here is on how well you practice the following points outlined below for fame and money for greater success.
• The best way to start with your money management journey is to pay your bills on time each month.
• Don’t get so many credit cards for luxuries’ sake. A few important cards inevitable to your business should remain but cut your spending habit to a minimum.
• Have your bills consolidated in one loan to avoid higher interest rates for more convenience.
• Get a budget that works for you each month to avoid running out of funds regularly.
• Get your list of expenses and income in a very realistic manner and find more ways to maximize your income while minimizing your expenses.
The key factor in achieving financial freedom with these tips is on the way we deal with our lives, career, business and other habits. Personal preferences and individual attitudes determine your level of success in getting stable money management patterns. Discipline yourself very well and carefully follow the tips shown here and you will soon see the reality of all these things for lasting success and happiness.
Think back of the way you handle your money during your college years. Money management during these years may seem different to students since they came from different family cultures and backgrounds. You may have the privilege to live a college life full of fun and luxury compared to other students who work to pay tuition fees for themselves and other expenses involved that you may not be aware enough on how important is sticking to a tight budget. Either way you may be into, you should know and practice effective money management habits for a successful personality and lifestyle.
The Truth About Managing Your Finances
Money, like time and energy, could be preserved, wasted or duplicated to endless amounts depending on how you handle it. You may come from a rich clan with pure money luck along your way or from a poor family but both of you have choices on how you could make more money in the long run to achieve financial freedom.
You maybe rich enough to look for a career after college or even to attend further studies at all but if you just spend all your money for fun and pleasure during your youth and never think about the long course of life, then you will soon find yourself having little or no money at all that your last recourse is to borrow funds or worse be drowned in debt. No matter how rich you are if you will not work or think of ways to maximize and duplicate your resources a hundred fold and be lazy all the time, then you will definitely get a taste of poverty in the end.
On the other hand, if you belong to the group of working students and lower class families but with a strong determination to succeed and strictly practice the best way in handling money issues, then you have a greater chance to succeed and be a multi-millionaire soon or be at least financially free.
Everyone has equal rights to become rich. The secret revealed here is on how well you practice the following points outlined below for fame and money for greater success.
• The best way to start with your money management journey is to pay your bills on time each month.
• Don’t get so many credit cards for luxuries’ sake. A few important cards inevitable to your business should remain but cut your spending habit to a minimum.
• Have your bills consolidated in one loan to avoid higher interest rates for more convenience.
• Get a budget that works for you each month to avoid running out of funds regularly.
• Get your list of expenses and income in a very realistic manner and find more ways to maximize your income while minimizing your expenses.
The key factor in achieving financial freedom with these tips is on the way we deal with our lives, career, business and other habits. Personal preferences and individual attitudes determine your level of success in getting stable money management patterns. Discipline yourself very well and carefully follow the tips shown here and you will soon see the reality of all these things for lasting success and happiness.
Managing Your Finances
Posted by Pegasus on August 15th, 2011
Where does all my money go? If you are like most people, then you must be asking this to yourself most of the time. You must have more than likely discovered, at a most inconvenient time, that yours is gone! A way to manage your finances in the most resourceful way is one of the hardest things to figure out. If you learn to manage your money well, you’ll enjoy the sense of independence that comes from being in control of your finances, instead of your finances being in control of you.
For most people, it is not how much they earn, it is how much they are able to keep. Spending more than we earn is the recipe to certain financial disaster. Yet most people do just that. The most important thing to do is ‘Organize your finances’. You need to know how much money is coming in, how much is going out, and most importantly where it’s going. This is a task all too many people avoid if in debt, but avoiding your budget won’t make it any better if you’re not making ends meet every month, and that’s one of the reasons people get in debt in the first place. Write down your monthly expenditures and break them all down as much as possible. Are there non-essentials you can eliminate? Are you spending more money than you should be on something in particular? Getting everything down on pen and paper can help show you the real picture when it comes to your finances and so help you make decisions accordingly.
There are a few basic steps one could follow to make his task easier. Firstly, identify your income sources. Your income would include job earnings, savings, gifts, grants, financial aid, money from other sources, etc. You should list all sources of money, even if you don’t consider them to be significant. Secondly, list fixed and variable expenses. It’s usually easy to list the fixed expenses. You know what they are. If you have a car payment or a home loan installment, you know how much it is and when it’s due. The same is true if you have rent, car insurance and other fixed bills. Thirdly, it’s wise to have a savings account and deposit a regular amount on a monthly basis. Even a small amount can add up to a sizable sum over time, when you add to it consistently.
Even small efforts can sometimes help you in a larger way. Like organizing your errands should make a tank of gas last longer. If you plan to pay off a credit card, pay off the one with the highest rate first. This will definitely relieve you for a while.
There is another very powerful thing that you can do to prepare yourself to handle money wisely. If you want to have money, I suggest a good place to start is with your own discipline. If you want to elevate your self esteem and improve your discipline both at the same time, try the following. It will ensure that you have money all the time: Go to your bank. Withdraw the biggest single denominational note you can (say $100). Put the note in your wallet or purse then, and here comes the most important part, DO NOT SPEND IT! Nothing will give you greater self esteem and nothing will build financial discipline stronger than doing this. You will get tremendous self esteem to know that you can afford to buy lots of things if you want. You are in control of that money, it is not controlling you.
Poor financial management is one of the leading reasons that makes people fall into debt. In order to accomplish your goal of saving money, you have to be committed to it. Decide now that you will live on your spend-able income and put the rest away. You’ll be surprised at the peace of mind you will feel when you start paying yourself.
For most people, it is not how much they earn, it is how much they are able to keep. Spending more than we earn is the recipe to certain financial disaster. Yet most people do just that. The most important thing to do is ‘Organize your finances’. You need to know how much money is coming in, how much is going out, and most importantly where it’s going. This is a task all too many people avoid if in debt, but avoiding your budget won’t make it any better if you’re not making ends meet every month, and that’s one of the reasons people get in debt in the first place. Write down your monthly expenditures and break them all down as much as possible. Are there non-essentials you can eliminate? Are you spending more money than you should be on something in particular? Getting everything down on pen and paper can help show you the real picture when it comes to your finances and so help you make decisions accordingly.
There are a few basic steps one could follow to make his task easier. Firstly, identify your income sources. Your income would include job earnings, savings, gifts, grants, financial aid, money from other sources, etc. You should list all sources of money, even if you don’t consider them to be significant. Secondly, list fixed and variable expenses. It’s usually easy to list the fixed expenses. You know what they are. If you have a car payment or a home loan installment, you know how much it is and when it’s due. The same is true if you have rent, car insurance and other fixed bills. Thirdly, it’s wise to have a savings account and deposit a regular amount on a monthly basis. Even a small amount can add up to a sizable sum over time, when you add to it consistently.
Even small efforts can sometimes help you in a larger way. Like organizing your errands should make a tank of gas last longer. If you plan to pay off a credit card, pay off the one with the highest rate first. This will definitely relieve you for a while.
There is another very powerful thing that you can do to prepare yourself to handle money wisely. If you want to have money, I suggest a good place to start is with your own discipline. If you want to elevate your self esteem and improve your discipline both at the same time, try the following. It will ensure that you have money all the time: Go to your bank. Withdraw the biggest single denominational note you can (say $100). Put the note in your wallet or purse then, and here comes the most important part, DO NOT SPEND IT! Nothing will give you greater self esteem and nothing will build financial discipline stronger than doing this. You will get tremendous self esteem to know that you can afford to buy lots of things if you want. You are in control of that money, it is not controlling you.
Poor financial management is one of the leading reasons that makes people fall into debt. In order to accomplish your goal of saving money, you have to be committed to it. Decide now that you will live on your spend-able income and put the rest away. You’ll be surprised at the peace of mind you will feel when you start paying yourself.
Tips For Managing Your Business Finances
Posted by Pegasus on August 15th, 2011
Managing your business finances is extremely important and because it requires different expertise. Realistically, most business owners will require professional guidance to properly manage their business finances. The two most important associates for you to retain will be an accountant and banker.
An accountant will provide assistance in a number of different key areas. He can oversee your bookkeeper, validating cash disbursements. You and your accountant will work together to develop a budget and cash flow statement. The budget will be used to ensure you have an adequate profit margin, or you’ll need to either change your pricing structure or reduce expenses.
Your banker will also require a budget (along with cash flow statements) if you apply for loans. The other crucial statement will be the cash flow statement which is a forecast of your revenues and expenses by month. If you don’t have enough cash coming in each month to pay your suppliers, employees and other expenses, you will either need to have cash in the bank or arrange for other financing.
It’s a good idea to have separate business checking and credit card accounts for your business expenses. It will be easier to track and justify your business costs for tax purposes. If you choose to incorporate, you can protect your personal assets from any business debt. Besides your accountant, you should consider outsourcing other finance functions such as payroll and bookkeeping. Having excess inventory on hand can also drain you cash. Outside consultants can provide financial models to more accurately predict needs.
An accountant will provide assistance in a number of different key areas. He can oversee your bookkeeper, validating cash disbursements. You and your accountant will work together to develop a budget and cash flow statement. The budget will be used to ensure you have an adequate profit margin, or you’ll need to either change your pricing structure or reduce expenses.
Your banker will also require a budget (along with cash flow statements) if you apply for loans. The other crucial statement will be the cash flow statement which is a forecast of your revenues and expenses by month. If you don’t have enough cash coming in each month to pay your suppliers, employees and other expenses, you will either need to have cash in the bank or arrange for other financing.
It’s a good idea to have separate business checking and credit card accounts for your business expenses. It will be easier to track and justify your business costs for tax purposes. If you choose to incorporate, you can protect your personal assets from any business debt. Besides your accountant, you should consider outsourcing other finance functions such as payroll and bookkeeping. Having excess inventory on hand can also drain you cash. Outside consultants can provide financial models to more accurately predict needs.
Positive Reasons Why Repair Bad Credit
Posted by Pegasus on August 15th, 2011
Some people may put off repairing their bad credit thinking that it can only be a big disadvantage when applying for a loan or card. But did you know that having bad credit can also cost you your dream job? Yes, there’s more to your score than just getting a quick loan or card approval.
Why should you be interested in repairing bad credit? Take a look at the following reasons why you should strive to keep your personal credit in good standing:
1. Get the best interest rate. The higher your credit score is, the lower your interest rate would most likely be. This proves to be true whether you are applying for a loan or a card. In fact, you can even get the lowest interest rates from insurance companies – whether it’s on your auto insurance, life insurance, or home insurance, if you have an excellent score.
2. Eliminate security deposits. If you have bad credit, your only option to get approved for a card or a loan would be to submit security. Lenders can ask you to pay cash deposit or submit collateral to minimize the risk of payment default. On the contrary, if you have an impressive credit score, it shouldn’t be difficult for you to get approved.
3. Get a higher credit limit. Having a higher line is a big advantage because it can protect you from exceeding or maximizing your usage. Needless to say if you have bad credit, a creditor would surely restrict your limit.
4. Strengthen your negotiating power. When you know that you have good or excellent credit, you will be more confident in dealing with potential creditors. Negotiating would be easier if a creditor can see that you can handle debt and repayment responsibly based upon the information in your credit report.
5. Get approve for a mortgage more easily. Because a home loan involves a huge amount of money, many creditors have strict standards when it comes to approving mortgage applications. If you have good credit, you would be in a much better position to buy the house of your dreams and get a home loan with the best deal.
6. Choose the apartment you want. Creditors are not the only ones who check credit. Even landlords use credit reports to check a person’s background. IF you have bad credit, a landlord may think twice about accepting you as tenant, doubting your capability to keep up with the rent.
7. No need for a co-signer. It’s not easy to convince a person to guarantee or co-sign credit on your behalf but you don’t have to piggy bank on someone else’s credit history just to get approved for a loan or credit card if you have good credit standing.
8. Get approved for a business loan. When starting a business, creditors would be using your personal credit upon reviewing your business loan application. Of course, you may find impossible to get a business loan if your personal credit is blemished.
Why should you be interested in repairing bad credit? Take a look at the following reasons why you should strive to keep your personal credit in good standing:
1. Get the best interest rate. The higher your credit score is, the lower your interest rate would most likely be. This proves to be true whether you are applying for a loan or a card. In fact, you can even get the lowest interest rates from insurance companies – whether it’s on your auto insurance, life insurance, or home insurance, if you have an excellent score.
2. Eliminate security deposits. If you have bad credit, your only option to get approved for a card or a loan would be to submit security. Lenders can ask you to pay cash deposit or submit collateral to minimize the risk of payment default. On the contrary, if you have an impressive credit score, it shouldn’t be difficult for you to get approved.
3. Get a higher credit limit. Having a higher line is a big advantage because it can protect you from exceeding or maximizing your usage. Needless to say if you have bad credit, a creditor would surely restrict your limit.
4. Strengthen your negotiating power. When you know that you have good or excellent credit, you will be more confident in dealing with potential creditors. Negotiating would be easier if a creditor can see that you can handle debt and repayment responsibly based upon the information in your credit report.
5. Get approve for a mortgage more easily. Because a home loan involves a huge amount of money, many creditors have strict standards when it comes to approving mortgage applications. If you have good credit, you would be in a much better position to buy the house of your dreams and get a home loan with the best deal.
6. Choose the apartment you want. Creditors are not the only ones who check credit. Even landlords use credit reports to check a person’s background. IF you have bad credit, a landlord may think twice about accepting you as tenant, doubting your capability to keep up with the rent.
7. No need for a co-signer. It’s not easy to convince a person to guarantee or co-sign credit on your behalf but you don’t have to piggy bank on someone else’s credit history just to get approved for a loan or credit card if you have good credit standing.
8. Get approved for a business loan. When starting a business, creditors would be using your personal credit upon reviewing your business loan application. Of course, you may find impossible to get a business loan if your personal credit is blemished.
How to Get Bad Credit Debt Help
Posted by Pegasus on August 15th, 2011
If you want to get out of bad credit, you should look for options to get professional help. There are many debt consolidation companies offering help and advice, however if you are not signing up for a charity organization, it will cost you money. When you have bad debts, the last thing you want to do is spend money. There is some bad credit debt help available online as well as from charities. We are going to review your options below to find the best solution for your needs.
Bad credit debt help is usually offered by the Citizens Advice Bureau in the UK. There are also some other charities helping people, but you need to know that because of the current economic downturn it is hard to book a consultation. Some charities have long waiting periods, and there are only a few qualified advisers available. If you can’t wait too long for bad credit debt help, it is not the best option.
You can also look at consumer forums; however you are not guaranteed to get an expert advice. What has worked for one person, might not be suitable for your circumstances. That is why you should look for professional advice, and it is available widely over the Internet and offline, too. There are some great self-help books published to get you out of bad credit.
Be aware of software products offering to get you professional bad credit debt help. They are never able to do that. You need to set up a careful budget and consolidation plan, if you want to solve your problems. The good news is: you have an advantage that you know your situation better than any outsider. But you are going to need some basic guidance and advice before you would get started. Many online publishers have articles on the topic. These are not telling you exactly what to do, as every situation is different.
When you are looking for bad credit debt help, you should avoid easy solutions. Many people will tell you that the best options are IVA and bankruptcy. But they fail to tell you that you will not be able to take on new credit for a long time, and also what happens when you don’t keep up your new payments on your IVA agreement. You might think that only a debt management company can arrange IVA, but you can actually sit down with your bank or contact them in writing yourself to come to an arrangement.
Bad credit debt help is usually offered by the Citizens Advice Bureau in the UK. There are also some other charities helping people, but you need to know that because of the current economic downturn it is hard to book a consultation. Some charities have long waiting periods, and there are only a few qualified advisers available. If you can’t wait too long for bad credit debt help, it is not the best option.
You can also look at consumer forums; however you are not guaranteed to get an expert advice. What has worked for one person, might not be suitable for your circumstances. That is why you should look for professional advice, and it is available widely over the Internet and offline, too. There are some great self-help books published to get you out of bad credit.
Be aware of software products offering to get you professional bad credit debt help. They are never able to do that. You need to set up a careful budget and consolidation plan, if you want to solve your problems. The good news is: you have an advantage that you know your situation better than any outsider. But you are going to need some basic guidance and advice before you would get started. Many online publishers have articles on the topic. These are not telling you exactly what to do, as every situation is different.
When you are looking for bad credit debt help, you should avoid easy solutions. Many people will tell you that the best options are IVA and bankruptcy. But they fail to tell you that you will not be able to take on new credit for a long time, and also what happens when you don’t keep up your new payments on your IVA agreement. You might think that only a debt management company can arrange IVA, but you can actually sit down with your bank or contact them in writing yourself to come to an arrangement.
How to Apply For Online Payday Loans Even With Poor Credit
Posted by Pegasus on August 15th, 2011
Applying for a payday loan online is the easiest and most convenient way to get your cash advance fast. Top rated payday lenders can offer the lowest interest rates and flexible pay-off terms (up to 120 days!) without any credit checks or faxing of documents.
Bad Credit Loans
Most people are worried about their bad credit when they apply for a loan. But the truth is your credit history has absolutely no sway on the credit decision when it comes to payday loans. Most people, who apply for this type of personal financing, have less than perfect credit which is why lenders have to add a high risk premium to the interest rate on the loan. Because of these high risk premiums, payday lenders have been regulated and even outlawed in some states.
Installment Payday Loans
In most cases, you can qualify for up to $1,500 in funds if your checking account is in good standing. And the best part is that you won’t need to pay it back in two weeks: you can opt for a long-term loan and pay it off in several small installment payments. Nowadays, there are companies with massive online lender networks that specialize in installment payday loans.
Loan Application
Another important aspect has to do with the application process itself. Due to varying state regulations and borrowers profiles, there is no such thing as the best payday lender for everyone. Some people may get great rates and loan terms and others get rejected by the same lender. Some people are instantly approved without any supporting documents and others have to fax a pay stub for employment verification, again, required by some states. So, your best bet is to apply to several (3-5) top lenders and go with the loan that suits your situation best.
Getting Your Loan
Most online lenders are set at the Money Overnight method, so you can expect to receive your funds on the next business day as long as you apply before 4 p.m., EST. The funds are usually wired via direct deposit to your checking or savings account.
Bad Credit Loans
Most people are worried about their bad credit when they apply for a loan. But the truth is your credit history has absolutely no sway on the credit decision when it comes to payday loans. Most people, who apply for this type of personal financing, have less than perfect credit which is why lenders have to add a high risk premium to the interest rate on the loan. Because of these high risk premiums, payday lenders have been regulated and even outlawed in some states.
Installment Payday Loans
In most cases, you can qualify for up to $1,500 in funds if your checking account is in good standing. And the best part is that you won’t need to pay it back in two weeks: you can opt for a long-term loan and pay it off in several small installment payments. Nowadays, there are companies with massive online lender networks that specialize in installment payday loans.
Loan Application
Another important aspect has to do with the application process itself. Due to varying state regulations and borrowers profiles, there is no such thing as the best payday lender for everyone. Some people may get great rates and loan terms and others get rejected by the same lender. Some people are instantly approved without any supporting documents and others have to fax a pay stub for employment verification, again, required by some states. So, your best bet is to apply to several (3-5) top lenders and go with the loan that suits your situation best.
Getting Your Loan
Most online lenders are set at the Money Overnight method, so you can expect to receive your funds on the next business day as long as you apply before 4 p.m., EST. The funds are usually wired via direct deposit to your checking or savings account.
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