Loans are instrumental for making businesses grow especially for startups and small businesses. Even large corporations heavily depend on borrowing for business expansion. Loans may also be required for maintaining the business operations because of the uncertainties of cash flow that puts enormous pressure on finances. When talking about business finance, it is all about loans and borrowing, and it is quite natural that business owners are used to it. Even the steady businesses face uncertainties at different times, and this makes it impossible to do some steadfast financial planning to maintain a steady flow of money. It is almost impossible for entrepreneurs to forecast the fund requirements for many months in advance accurately and they must stay prepared to meet any unforeseen financial requirement that may crop up interim.
It happens that in some situations businesses experience a heavy outflow of cash and the management suddenly faces so much cash crunch that they are unable to meet payroll expenses. Businesses must make use of growth opportunities that suddenly crop up, and it requires immediate investment for which it is necessary to arrange for funds instantly. Since this is an unplanned investment, it becomes imperative to avail loans for seizing the opportunity which could be too costly to miss. Many such unforeseen requirements of funds keep coming up, and borrowing is the only way to cope with the situations. To meet multiple requirements of funds arising at various times or sometimes at the same time, business owners get used to living with several loans.
Learning to cope with loans
Many loans running concurrently are something quite natural for businesses, but often the task of managing multiple loan accounts and dealing with several lenders becomes quite harrowing. Since the borrowing happens at different times, the lenders are not only different but also the loan amount, interest rates and terms differ. Keeping track of several loan accounts with varying dates of payment and varying amounts becomes a very tedious job that requires a dedicated workforce to look after, and managing loans can become a costly and confusing affair. Creating additional resources to service the loan accounts and paying too much attention to it distracts the focus of business and threatens to hamper growth prospects. But at the same time, it is impossible to run businesses without taking loans. Knowing how to deal with loans conveniently will make life easy for business owners and this is what you can learn from this article.
Find the root cause of the problem
Borrowing is not bad for business andloans are the backbone of business finance. Sometimes, loans can pose problems for business owners only if the amount is so big that it is beyond your capacity to repay or if you are unable to manage the loan accounts smartly. Dealing with multiple borrowers is often the most strenuous part of borrowing which puts too much pressure on business owners as they find it difficult to balance the finances and ensure timely payments. Missed payment dates can be very bad not only because it damages credit score but because of the intense follow up by lenders that can be a very bitter experience and hard to deal with. The apparent loss of trust turns lenders more aggressive as they become doubtful about recovering their dues and keep chasing hard for payment which gives sleepless nights to borrowers.
Debt consolidation is the solution
When faced with such a situation, you must never panic because there are ways of mitigating the problems by carefully analyzing the situation. If funds are available for making monthly payments but handling multiple lenders and managing many loan accounts that run concurrently is the cause of discomfort and inconvenience then there is a simple solution to the problem. By talking to the debt management at experts at Nationaldebtrelief.com, you can explore the option of consolidating the debts so that you have only a single loan account to deal with. It means that you can still enjoy the outstanding loan amount but without the stress of handling several lenders. The method ensures financial buoyancy while focusing on better loan management without affecting your borrowing goals.
Focus on the business and not loans
Although business owners must arrange for finances, they must devote the maximum time for running the business efficiently and plan for growth. It must never happen they spend so much time thinking about finances that they are unable to concentrate on the core areas of business that can lead to business growth. But this is what happens when poor loan management creates so much stress that you spend most of the time to work out ways of managing the loans in a better way. The distraction can be very damaging for a business that suffers from a lack of proper support.
To reverse the situation and bring back the focus on business operations and growth without being obsessed in managing loans, debt consolidation is the most preferred solution that gives a fresh lease of life and encouragement to drive the business in the right tracks.
Take one big loan
As you can understand from the literary meaning of the term debt consolidation, it is the process of replacing many loans by one big loan so that it becomes easy for borrowers to handle the loan account provided they have money for making monthly payments. The first step in the process is to make a list of lenders to figure out the total outstanding debt and then find out a new lender who agrees to lend that amount so that you can pay back all existing lenders and left with just one new lender and a single loan account. But before you take the decision, you must be sure that the arrangement will work for you after taking into consideration your overall financial status and your business goals in short as well as long term. Your business comes first and whatever you decide must have a favorable business outcome.
Cost saving opportunity
When you go for debt consolidation the most visible benefit is that you can do away with multiple lenders while continuing with the loan but differently. Since your business is dependent on the amount you have borrowed and you still have access to the money, you can address the financial needs of business very well. But there is another big benefit that you can derive from debt consolidation that though not visible affects your finances positively.
When you are taking a debt consolidation loan, you get the opportunity to bargain hard with the lender and avail better interest rates than what is prevailing. By lowering the interest, you can lower the monthly payments and in the process generate saving. You must keep this aspect in mind when shopping for a debt consolidation loan. Getting a loan at a lower cost is a huge benefit as you can use the additional money for business betterment.
Work out the best numbers
It is a numbers game when you are looking for lenders willing to offer debt consolidation loan. Since the new loan must help to pay back the existing loans and even save money, you must compare multiple offers to work out which offers are best for the purpose. Do some number crunching and try out various options to see, which offer gives the best benefits. The task might not be easy if you try to do it manually as you must compare too many variables to arrive at the right decision. To do it fast and correctly, you can use some online calculator created especially for debt consolidation that gives you the complete picture of the loan offered to you by considering the tenure, interest rate, and other costs.
Recoup your finances and credit history
People might avail debt consolidation out of desperation, which is partly true but not always. When done out of desperation, debt consolidation might not give you the desired benefits except that you can reduce the number of lenders. You must take a positive approach to debt consolidation by treating it as a resource for re-organizing your finances. When you get a favorable debt consolidation loan that generates saving, it allows you to bolster your finances.
Taking a fresh loan means that you get a fresh opportunity of servicing the loan in a disciplined manner that helps to improve your credit history. This is very important for business owners as they must avail loans as long as they are in business.Therefore, your aim must be to hit two birds with one stone – better debt management and cost saving and not just doing some fire fighting activity that provides momentary relief without any long term gain.
The process of debt consolidation might sound simple, but its implementation is not easy as it entails hard negotiation with your existing borrowers and finding out a lender for a debt consolidation loan. It is not easy to make your borrowers agree to accept your proposal for paying back. By engaging a debt consolidation company both tasks of negotiating with borrowers and finding a new lender become easy.
How to deal with unexpected summer costs
Have fun saving money over lockdown, did you?
Sure, the distinct lack of expenditure over the past 15-16 months have been great, but things arestarting to get back to normal.With a return to normality,you’ll probably find your day-to-day spending is steadily rising to where it was before.
The next few months are set to be interesting ones from a budgeting perspective. Many rescheduled social events like weddings, stag and hen dos and other big celebrations that were postponed over the past year and a half are all getting crammed in close together. For those participating, that can rather quickly take monthly spending from next to nothing to an awful lot.
Indeed, summer is a classic time for unexpected costs to rear their head, but with this year especially likely to be a shock to the financial system, what can you do to deal with them?
Reasons your budget isn’t working
If your budget has gone from being watertight to looking shaky recently, these could be some of the reasons:
- You haven’t given it enough thought: Saving money over 2020 and beyond may have happened to you organically. By that we mean you didn’t make any budgetary decisions to generate savings, they just happened. Now that life is back to normal the associated costs come with it, so you might need to put more effort into your budget to stay in the black.
- You’re spending more than you’re earning: Again, this perhaps wasn’t a particular worry over the past year and a half with nothing to do, but that might have stopped youfrom thinking about where and how you’re spending your money. With every wedding, party or event you attend, you’ll be spending a small fortune.Those costs may well suddenly add up to more than your income on the month.
- You’re not budgeting properly for different categories: Now that a lot more recreational spending is back on the table, you may have to address your category spending and apportion more funds to having fun. That spending should come at the cost of another area, though, which is a key thing to figure out to get your budget in shape.
- You aren’t adjusting it: Summertime, and summer 2021 in particular, is always a period of higher spending. With holidays and general fun in the sun to consider, you need to account for that in your budget. Planning your finances to spend more now and save more later will help you to recover from the bigger spending months.
Building an emergency fund
Emergency funds are essential for dealing with unexpected costs, particularly if you’re getting to a point where you’re spending about as much as you earn again. Right now, you might be thinking about how next week’s stag do is going to affect your budget, but what if the boiler breaks down or a pipe suddenly bursts? Sudden, unanticipated but essential repair costs like these can send you into financial chaos if you’re not ready for them.That’s where an emergency fund can help.
You can build an emergency fundby aiming to set aside three to six months’ worth of living expenses. This might seem like a mammoth task, but if you put little bits of money aside gradually – as much as you can afford every month –you’ll build towards it quicker than you might think. Then, when a rainy (or chaotically sunny) day comes, you’ve got that all-important safety valve to keep you financially afloat.
Just remember to assess your finances and ensure you are only putting away an amount of money that will not leave you short.
Cryptocurrency Trading Platforms
Binance exchange is an altcoin trading platform founded in 2017. It offers more than 100 trading pairs between different cryptocurrencies. It also offers some fiat pairs only between cryptocurrencies. Binance deducts lower fees than other platforms up to 0.1% for both maker and taker. The fee reduces trade volume over the platform up to 0.02%. Besides these, if you want to trade through Binance, you need to learn more about it to make good of it.
Gemini is the most popular cryptocurrency trading platform because of its security and transparency. As scams and hacking activities are very common these days, Gemini aims to provide its users will secure, reliable, scalable platforms to save their assets. Moreover, Gemini’s new user can win the reward of 10$ on depositing 100$ in his account.
BlockFi is a crypto trading platform that comes with the most interesting feature of lending to earn interest in your holdings. Alongside coin trading, you can borrow depending upon your assets. If you hold your tokens, you can win interest for holding them. BlockFi also rewards its users with different offers from time to time.
Kraken is one of the most prominent global cryptocurrency platforms with a wider range of selected tokens and coins. It also facilitates you with margins, but you need to learn before starting your career here. Unfortunately, Kraken offers limited coins or tokens to US users, unlike internationals.
Robinhood is an emerging crypto trading platform in the world. It has just bitcoins and ethers but aims to expand quickly. No doubt, it has some limitations, but it is free of cost trading costs. It can be the best option for you if you are new to the crypto world.
Coinbase is a prominent cryptocurrency platform in the US founded in 2012, just a few years after the Bitcoin release. It is a licensed exchange covering over 40 states of America. It is a very easy-to-use platform with higher liquidity and a wider choice of altcoins. It charges a higher fee than other platforms up to 2.99$ concerning Dollar values.
eToro started from Europe but now expanding to the united states as well. It offers a wider range of digital assets to trade. Most importantly, it provides a practice account that helps its user to understand the platform before investing.
Bitcoin IRA is a different crypto trading platform from others. In many exchanges and digital wallets, you exchange currencies and earn a profit, but you have to pay platform tax. Bitcoin IA is the best crypto wallet where your profit is in your account, and there is no tax deduction.
There are many cryptocurrency trading platforms in existence, but you need to explore them before investing. Choose a secure, stable, and reliable platform to protect your digital assets.
Job Searching Tips for Recent College Graduates
Although you do have a six-month grace period to start paying your student loans, it’s natural to worry what you’ll do if you don’t find a good paying job by then. In the event you are still unable to lock down a stable income, you may consider refinancing your student loans to save money. Refinancing can modify the interest rate and terms of your loan to make them more manageable, especially if you’re not earning enough to even be financially secure. Before you worry about loans, though, here are three things to keep in mind while you’re applying to jobs.
Focus on Skills, Not Job Descriptions
If you don’t have any relevant work experience, focus on what you know how to do, instead. The goal of a resume isn’t to show employers what you’ve done but rather what you can do for them. While prior experience is always great, you shouldn’t let it deter you from really selling yourself as a talented, eager candidate. In the event your experience was not in a related field, try to draw out any details from your responsibilities that carry over. Align your resume to each job’s specific needs, which will drastically improve your chances of getting a callback. Avoid turning in the same resume to different employers; even if you only change the wording on a few lines, it shows you care enough to read what an employer wants.
Don’t Say No to Internships
You may think interning is for undergrads, but it actually might be your ticket to a full-time position. Interning isn’t for everyone, and if the gig is unpaid, it certainly won’t work for a lot of people. But most internships function more like temporary jobs, which means you are paid hourly or given a fixed amount for working a set amount of time.For recent college graduates, internships can provide the experience, skills and connections they need to qualify for positions in the field of choice. You may also find a mentor in one of the company’s employees who can give you insider knowledge and teach you things that you’d never have found out on your own. Many jobs also promote interns into employees if they perform well enough. So, it may not be your first choice, but if you’re looking for work and considering a part-time job anyway, it’s worth considering.
Stay Connected to Your Fellow Alumni
Your university’s alumni community will allow you to network with other graduates who have found work in your desired field. They can offer you tips, provide some sound advice and possibly even recommend you for positions in their own company. Sometimes, job recruiters even check out alumni groups at universities to find candidates that are available for immediate start. Make that point clear whenever you mention you’re looking for a job.
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