Author: Ronald Martin
Merchant cash advance is a form of lump-sum funding that is particularly designed for use by small businesses. This funding involves short repayment periods (usually under 24 months) and is paid in small regular amounts, mostly paid on a daily basis. It is worth noting that the funding is not a loan as the money is based on the business’s future credit card sales or revenues. Before these advances are given to any business, the provider has to evaluate the business’s credit card payments influx to ascertain whether the business will be able to repay the grant. Despite MCAs being seemingly beneficial to business, are they really necessary? Should you take MCAs?
They are quick
Merchant cash advances are processed quickly within a few days. This is because the processing of the funding does not involve detailed paperwork. The providers take 1-2 days to study the business’s credit card records to determine whether the business qualifies for a cash advance. There are lots of financiers who offer this type of funding, and as such, it is relatively easy to find a financer within your locality.
MCAs are unsecured
Merchant cash advances are unsecured, and as such, the business owner does not need to have collateral when applying for the advance. This protects the owner’s property, and assets incase sales decrease, and the business is unable to repay back the advance. However, to safeguard their interests, the providers of these advances may require the business owner to make a personal guarantee. This is an agreement that states that the borrower is responsible to personally repay the advance.
Repayment depends on sales
The best thing about merchant cash advances is that the repayment is made as a fixed percent of the day’s sales. Therefore, if the business makes low sales, then repayment will also be low. This goes a long way in ensuring that the compensation does not plunge the industry into financial hardships when sales go down. Repayments adjust automatically in respect to the performance of the business’s sales.
Why you need to be careful when applying for MCAs
Most business owners, especially the new ones often find themselves in a fix after applying for loans and advances whose terms they do not understand. This is why there is need to be cautious of MCAs so that you do not put your business in a situation it may never recover from. Reasons for exercising caution when applying for MCAs include:
The repayment structure and costs of MCAs may be confusing and hard to understand. Additionally, contracts for these advances are full of unfamiliar terms that may be hard to understand for new applicants. Due to this, you need to ensure that you understand all times before signing the agreement ad contract for the advance.
MCAs can put the business into unending debt cycles
The ease and speed with which MCAs are processed may put the business at the risk of entering into debt cycles which may be catastrophic for the industry. In the long run, these debts may pile up ad strain the business’s finances beyond the limit. If left unchecked for long, these obligations may cripple the industry and its operations.
Like in other forms of borrowing, it is advisable to be cautious of taking too many merchant cash advance. This may hinder the business’s growth and expansion especially a substantial amount of the sales is being used to repay the advances.
The idea of cashing on a pension can sound a misguided and hasty decision. The Financial Services Authority makes it clear in most instances you will receive less amount when you cash in your pension than waiting for the retirement age.
One of the things you need to assess is the immediate need for cash you have. Do you serious need the cash? It is human to want more cash. Thus, it is necessary to be impartial at that stage and choose whether you should release your pension.
If you find it is necessary to proceed with Cashing In Pension, you will get adequate advice about potential losses of unlocking funds. A professional adviser will offer different of options to help you make most of your pension plan. For instance, you can cash about 20% of the pension tax-free, and the remaining amount will be used to offer an income. How much is the income after cashing your pension will depend on several factors like type of scheme. The type of scheme can either be an occupational or personal pension. You will be advised accordingly by an expert financial analyst.
After getting all the information you need, there is a need to follow the right process of cashing in for usage. The process is well-handled by an accredited and experienced person in the field.
Reasons to cash in your pension
There are several reasons quoted for pension release. Some of them include:
- Paying off your debts and credit cards – a lot of people are in debt nowadays
- Helping out your children – it is very difficult for the young people to venture into property
- Paying off your mortgage – It is a satisfying action, and there are several endowment policies, which have failed to meet expectations with current and unexpected arrears.
- Holidays – nowadays, cruises are quite popular amongst pre-retirement generation
- Luxuries – these include cars, extension, adding a new kitchen, and much more
It is true taking money out of your pension plan can greatly reduce the amount of income, which you can get on your retirement. It is necessary to give adequate consideration before you start to release the cash from the pension. Moreover, any reduction of your future retirement can affect both you and your family. Before you decide to go for this option, you should decide whether you have adequate money to survive through the retirement. There are many companies that specialize in pension release.
The method you use to handle your finances will always appear on your credit. If you can do it well then that is good news for your credit, but some do not have enough time to do so, or they would forget about it, and in the end, they will end up hurting their credit score as well as their credit report. The independent review of Sky Blue also explores the best tips of credit and finances. Here are tips on Credit and Finances
Using Common Sense
There are a lot of options for you to manage your finances. Some choose just to do it using the common sense ways, but if you are the busy type who travels a lot, then you can opt for credit monitoring services. These services will keep you updated because you will be notified of every change in your credit. You will find out if you have exceeded your limits, new bills and much more. Also, there are now applications available for your convenience when it comes to managing your finances. You can download these applications in the App store. Each application is different from one another. Others give you tips on how you can improve your credit score; some will tell you the things that are affecting your credit, and some just offer the basic services. Just choose the best one that suits you.
Doing a free credit check regularly
Doing a free credit check regularly can be helpful because you can see all of your activities and know if there are unsettled issues in your account. If you want to manage your finances, you have to know where you stand first to fix the items that need fixing. Checking your credit report will also let you track your credit score and know about its disposition. The better you manage your finances; the better your score will be.
Finish off your Debts and other Balances
Finishing off your debts and other balances plays a big role in your credit score. How you pay your bills is what your credit score is mostly based on. Paying regularly and in time will give your score a quick boost and of course missing out on your bills will just end up hurting it, this will not only lessen your debts, but this will also be a positive record for your credit report.
Make a List of The easiest thing to do first
Making a list may be the easiest thing to do that will help you with your finances. All you have to do is jot down your expenses and keep yourself within your budget. You can even list down the things you have to do first to keep yourself organized and to prevent financial mishaps. You’ll be able to compute your monthly expenses so you’ll know what to expect for the following months.
You can do more than what is listed above to manage your finances and keep your score up. Your credit will show how financially responsible you are; it is a reflection of the whole you that’s why it’s best to start so that you can benefit from it in the future.
Truth be told; when it comes to loans, choosing a loan provider is one of the biggest decision you can make today. It is important to find the best loan provider before taking a loan. There are hundreds and hundreds of loan providers out there, and if you have never dealt with them before, you could easily get confused on whom to choose.
Best loan providers
During this period, talking to your friends and family members is the best and probably the first thing to do. It is very likely some of them have taken out a loan within the last few months, and they can prove to be very resourceful when you are looking for the best lender. They can refer you to some of their best lenders. However, don’t take what you are told as the gospel truth until you talk to them.
Size of the lender
The size of the lender is also important and must be considered at all times as that will determine how much money you will be able to get. For example, if you are looking for a very large amount of money, going for a big bank instead of a small credit union will make a lot of sense.
Reputation and experience
When it comes to money matters, reputation is king. For this reason, when you are choosing a loan provider. Take you time and go through their reviews; doing this can be incredibly useful because it will give you an insight into what it is like to work with a particular loan provider.
See what other people are saying about that particular loan provider and if there are some questions you have, don’t hesitate to bring them up. That can save you some problems later on.
As if that is not even enough; when it comes to choosing the best loan provider, the amount of experience they have is paramount, and you may want to factor in also. Working with a lender that has been in the industry for a considerable length of time is highly advisable. With that, you will get the best services.
If at the end of the day you will end up with a very long list, compare what each one of them is offering. For example, you can ask them for loan estimates as that will allow you to easily compare different loan from the different loan provider. At the end of it all, go for the best lender that comes with great loan services and the best rates in town.
‘Bobtail Liability’ cover is an auto insurance policy that provides added insurance cover to the owner or driver of a truck when the truck is not being used for the transportation of goods. Bobtail Liability Coverage is used for a truck that has no trailer attachment or truck on which a trailer is attached to but which carries no load. Bobtail Liability cover is as well referred to as dead-heading liability cover.
A truck driver would usually have a company’s basic insurance cover that protects him during the transportation of the goods with the truck. Bobtail liability cover takes care of those periods that the truck is not being used for the conveyance of goods during which time the truck is not covered by the company’s standard liability insurance policy such as when the driver is on his way home after work.
Why get Bobtail insurance cover?
A driver of a truck is usually covered by the liability insurance policy of the company he or she works for. As soon as the driver of the trucks delivers the goods he is conveying to clients, and the truck is empty, he is no longer covered by any insurance policy at that time.
Thus, truck drivers go for bobtail liability insurance policy cover to ensure that they are covered all the time. While the company’s insurance policy protects them when they are conveying goods, the bobtail cover protects them when the goods have been delivered, and they are no more carrying a trailer or other shipping consignments.
Again, the majorities of truck drivers transport cargo to many locations and work for more than one company. This means that they can just deliver cargo to a place and drive immediately to another location to convey other goods which may or may not be similar in nature and form. Truck drivers may also work as autonomous contractors or work for a cargo dispatch company. Thus, they frequently transport and dispatch cargoes for different companies which may have varying types of insurance policy cover. Bobtail cover, thus, offers the driver insurance coverage when he is traveling between companies and cities without cargo.
Important facts about bobtail liability cover
Bobtail insurance varies broadly regarding their worth. Most frequently, the value attached to the policy is not to have anything less than one million in liability insurance because truck trailers are high duty vehicles. Nevertheless, in some cases, you would require extra cover at a very minimal rate.
Coupled with the liability protection, you’ll require an extra protection for the automobile in case of any accidents that may occur as a result of fire outbreak, or loss that you may incur as a result of theft, vandalism or weather effects.
Bobtail insurance cover helps truck drivers to function with limited numbers of risk both during the time of active cargo transportation and at other times when the truck is not actively transporting goods. To benefit from this all-round protection, all you require is to update your insurance policy with bobtail liability cover.