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Classes of Business Organization

Last Updated on September 5, 2020 By Lisa C. Townes Leave a Comment

The term “Business” is wide in meaning. It includes all those human activities made for the sake of earning profit through the process of production of goods or buying or selling of goods. A Qualitative Businessman starts a business for the sake of earning money, and money is earned by satisfying human needs and desires with certain things.

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What are the Different Natures of Businesses?

Business activities can be of various kinds. These may be fishing, mining, agriculture, cultivation, banking or industry, whether these may be conducted by a Limited Company or by a Partnership firm or by one man, they assign duties to employees whether the business is done on the wholesale or retail level.

In short, every human activity made to earn income or profit is known as Business.

If the goods are produced to fulfill personal needs only, this activity cannot be called business. Earning of profit is the special mark of business.

As compared with commerce and industry the word Business is used in the wide sense. It also includes all those economic factors which help a man to earn profit by satisfying material, spiritual and mental needs of human beings.

There is a close relationship among Business, Industry, Trade and Commerce and they are therefore; taken in the same sense. But sometimes the difference in their meaning becomes very obvious.

Briefly speaking Business means earning profit & there are different types of business organizations, Industry means production, commerce denotes means of distribution and transportation of goods. All Trade types are considered as a part of Commerce.

Importance of Business Organization

The business organization is an act of grouping activities into effective co-operation for a specific objective. It is primarily concerned with the creation and distribution of utilities to earn the profit.

Its study reveals that it covers all spheres, of economic functions and it provides a common link between. the various factors of the business activities.

So effective cooperation among the various factors of production will increase the volume of profit of the enterprise. It guides us to the improved method of organization and operation concerning production, marketing, financing, transporting, and trading.

It restricts wastage of time, material and factory overheads which lower’ the cost per unit. It is to be noted that business organization teaches us all methods and principles of office organization and the best way of performing the secretarial functions.

It provides the adequate solution to many business problems. So it has enabled the businessman to conduct the business affairs efficiently.

Business organization thus consists of the skillful activities of the businessman with a view to promoting trades, commerce and industry

TOP 7 Classes of Organization

Industrial Organization

It is the organization of the industrialists and manufacturers who combine material through various factors of production and supply the finished goods or partly finished goods to the wholesalers.

Whole Sales Organization

It is an organization of the persons who directly purchase goods from the producers and sell them to the retailing organization in small quantities, He thus plays the role of middleman between producers and retailers, He keeps the stock of one or two goods in large volume. He deals in local or national markets.

Retailing Organization

This class of organization includes the persons who take over the goods from the wholesalers and supply the goods to consumers. So he is a link between the wholesalers and the consumers. He keeps the various kinds of goods in small quantity.

As he keeps close contact with his customers he knows their tastes, fashions and demands and he can provide valuable information to wholesalers and producers.

Financial Organization

This is the organization of the financial institution who provide the depositing and financing facilities to the public. It includes all scheduled or non scheduled banks.

Transportation Organization

The member of this class of organization provides transportation facilities to the public in order to shorter the space and create place utility.

Social Organization

This class of organization is formed with a view to promoting public welfare and for community development such as charitable institution, educational institution, hospital and other social and welfare association. It also plays a very vital role in creating the spirit for the service of man.

Government Organization

This is the organization of the various departments which are directly owned managed and supervised by the government. Such as District Council, corporation, railway, electricity, post and telegraph etc.

Things to Consider When Starting a New Business

Last Updated on March 16, 2021 By Lisa C. Townes Leave a Comment

Thinking to start a business in your town, city or country? Its your first try and have no experience on it? Failure fear? Market Trends? and lots of other questions you may have in your head.

No worries! Every successful entrepreneur was once a striving for success. The same way you can be successful. If you have any of Entrepreneur Characteristics in you, you can brand yourself either today or tomorrow.

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10 Most Important Things to Consider When Starting a Business

Let’s dive into the discussion of what things to consider when you are going to start up your own business. These may be more or less depending upon your business plan and idea.

However, these 10 factors are essential when starting a business. People from the United Kingdom may get benefit from starting any of these Small business Ideas.

Product Demand

Before starting a business, the market is surveyed to know which goods are in demand. The businessman also selects a business which is suitable to him and which he can organize well.

Size of Business

The businessman must keep in view the volume of business. He decides whether he has to do business at small scale or large scale. He may limit his business at the local level; and by adopting the business of a wholesaler, he can extend his business to other market.

Form of Organization

After deciding the size of the business, the businessman has to plan the form of organization. He decides whether he has to start the business as a sole proprietor, or as a partnership, or in form of Company.

Suitable Location

Suitable location facilitates business and guarantees its success. The premises where following facilities are available are considered best for business: with sufficient supply of raw material, an easy approach to the market for the sale of goods, water, power and quick means of transportation and protection against risks and accidents.

Concession from Govt

In some enterprises Govt. allows some concession or rebate income to X or in excise duty. In some kinks of business import and export policies are lenient. All these concessions are kept in view before starting a business.

The Arrangement of Capital

Capital is arranged according to the size and bulk of the business. Even after the business has Started capital is required for the purchase of raw material and for the payment of wages and taxes and for miscellaneous, purposes. Capital is arranged keeping in view all these requirements.

Business Policy

Policy is framed before the actual commencement of business. Determination of method of payment and receipts, formula and technique of production are most essentials for the successful business. Future prospects are to be regarded according to the rate of growth. Anyhow policy generally depends upon the nature of business, rate of profit and situation of market.

Availability of a Administrative Personnel and Skilled Workers

If machinery is arranged in business, skilled personnel are also employed to run the machinery and the administration. The owner should be capable of personnel management to adjust Qualified persons engaged in right part of a business which is to be conducted on the right lines.

Availability of Labor

Laborers are the back-bone of a business. Before starting a business the area is surveyed to know whether sufficient labor is available or not; In order to reduce the cost of production, the local rate of wages of labor is also kept in view. It is better to start business in an area where the wages are low.

Means of Transportation

Developed means of communication and transportation are essential for business. These means help to bring raw-material to the factory and also help to transport finished goods to the local and other markets. If these facilities are not available the cost of production will increase, and the business will suffer.

Types of Warehouses

Last Updated on September 30, 2021 By Lisa C. Townes 1 Comment

A warehouse is a place where different goods are stored or accumulated for a temporary period. It created time utility for supply chain management. The need for warehouses arises out of the lack of adjustment between times of production and times of consumption of goods.

At present time the goods are produced for in advance of demand. So before the goods are short in the market, they should be stored.

It is the warehouse that stores the goods from the time of production to the time they are sold. In this way, through proper warehouse management to take maximum advantage of it. Businesses remove the hindrance of time between the places of production and consumption.

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Uses and Importance of Warehousing

Many goods are not produced regularly at the point where they are wanted for consumption and they must be stored from the time of production until they are wanted by the consumer if they are to be used in satisfying human wants. Goods produced at a distance from the consumer must be transported to the consumer.

In order to ensure an even supply, a stock of such goods must be maintained near the consumers as protection against delays and uncertainties of transport and to permit transport in economical units.

Many agricultural goods produced seasonally are supplied to consumers more or less evenly throughout the year. Grain, Cotton, Tobacco, and Sugar furnish can be stored for several years without any deterioration. The demand for some products is irregular. In such cases, storage may be called into use so that production can be more regular.

If factories producing such goods are to be operated throughout the year, the goods produced in the “off months” must be stored until they are wanted by 1he consumers. Storage involves expense, but much expense is often less than the extra cost of providing buildings, machinery, and labor to produce seasonal products as needed.

Moreover, production and transport may be interrupted by fire, flood, strike, cold, or storm. Storage is a safeguard against such risks. It offers facilities to the traders or merchants to get loans from the credit agencies on the goods stored in the warehouse. The credit agencies will be in a position to give loans by the transfer of warehouse receipt, which is a negotiable instrument of title.

It offers goods facilities for the transfer of ownership of goods warehoused therein without the actual transfer of goods simply by transfer of warehouse warrants with the endorsement of the owner thereon. It removes the hindrance of time which would otherwise be involved in obtaining possession of the goods from the places of their production

Types of Warehouses

Public Warehouse

It is operated in accordance with the law for the purpose of storing goods for other people at profit. Sometimes a large arrives in part when it is not convenient for the importer to take it into his custody.

During such periods these goods have to be stored somewhere. Similarly, even in trade, they have to be stored between the time they are made and the time they are required for use. A public warehouse provides facilities for storing all such goods. It thus renders many useful services to the trade.

It enables smaller sellers to carry regional stocks. This factor is very important in competitive markets.

Private Warehouse

This type of warehouse belongs to the owner of goods, usually a wholesaler, who stored his goods. There in order to supply to retailers in future. Goods are produced in large quantities in anticipation of future demand and for unknown customers. The ultimate wholesaler finds it necessary to purchases goods in advance in large bulk and to store them for future supply.

Bonded Warehouses

It is one that is licensed to accept imported goods for storage before payment of customs duties. By storing his goods in a bonded warehouse the importer gains some control without paying the duty. The goods in bonded warehouses are under the strict supervision of customs officers and before the owner can interfere with them, previous permission is necessary.

Government Warehouse

This type of warehouse is mainly located at the important seaports and in most cases is owned by the Dock Authorities. The general public can also use this group of the warehouse on payment of fixed charges.

If a customer cannot pay the rent within the specified period of time, then the authority can recover the rent by disposing of the goods.

Difference between Selling and Salesmanship

Last Updated on February 26, 2020 By Lisa C. Townes Leave a Comment

If you ask Difference between Salesmanship and Selling, most of them will be unable to distinguish and answer. Salesmanship & Selling in general are considered the same thing. People say Salesmanship is selling but actually they are totally different in Business terminology.

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Difference between Salesmanship and Selling in Broader Perspective

SALESMANSHIP	SELLING
Refers to convincing Customer	Refers to transferring the ownership
It is an Art or Technique	It is an Act
It’s Primary Function	It’s a secondary function (after primary)

Selling is a Process

Selling is the process of transferring goods or services to the buyer in return of money or something else by Registered Business. On the other hand, Salesmanship is actually the way you convince your prospect with logic, arguments and product features to buy it from you and not from other suppliers.

Example

You being a salesman came to me for selling a laptop. I already have one that means I simply don’t need it. Now you start introducing me your company’s laptop features, its hard drive, combo drive, registered window, camera, wifi, blue tooth & long battery backup, warranty or guarantee.

After long healthy presentation and discussion, I buy your laptop and pay you cash. Paying cash and receiving laptop is selling and everything before paying cash was Salesmanship.

Salesmanship is a Technique

Salesmanship is technique, learned skill, from experiencing different selling approaches. It is complicated process that needs the effort to get command on it. It cannot be performed easily; it also requires field experience to sale, and Selling is a simple process that even kids can perform.

Example

In a sales job interview; interviewer asked the applicant to sale refrigerator in the winter season in cold areas of country and heater in summer in hot areas of the country.

It seems impossible but it is salesmanship. Usually, you go out buying a mobile voucher, you simply pay to the retailer and buy.

Did he/she ever try to convince you for buying a voucher? Absolutely not but Salesman always does, remember your meeting with insurance policy seller.

In the above example, salesmanship was performed by the first salesman who motivated you to buy his company SIM card and TV Commercials you watch.

The Answer

Conclusively, Salesmanship is primary or 1st phase or foundation. Media is power in this era, TV Ads, Billboards, SMS marketing do salesmanship for the companies, it influence and build up your mind for buying it.

They pay heavy amounts to Advertising Agencies

In conclusion, We got to know that selling is impossible without salesmanship i.e., selling needs salesmanship but salesmanship doesn’t need selling. It is simply convincing prospect, everyone is selling but not everyone is Salesman.

Salesmanship is AN art of influencing another person for the item of persuading him to shop for specific product. it’s going to be thought to be the method of winning the confidence of shopper. per WHITEHEAD.

“It could be a technique of reaching at a standard purpose of view with the prospect in reference to the desirability of same, article, service or thing.” Sales Acquirement or salesmanship can also seek advice from convincing a client by sure technique and he’s very persuaded for purchasing a selected product.

Importance of Salesmanship

accomplishment helps to make demand for brand new merchandise or new brands. It influences to vary in patronage from one supply of provide to a different which ends concentration of purchases of specific product.

because it wins the buyer’s confidence therefore it helps to create regular and permanent customers.

The one who is engaged in convincing the general public desirability of a particular product is named salesperson. He informs the shoppers concerning utility of artifact with a read to as well as him to shop for the products.

He establishes the products can of firm within the market. that the sales volume could simply be accumulated.

He perpetually observes the style, taste, like and dislike of client and informs the producer concerning heir alternative.

He helps to determine shut relationship between the manufacturer and client.

Characteristics of Partnership

Last Updated on March 9, 2022 By Lisa C. Townes 1 Comment

The partnership is the most common form of business structure. In this, a minimum of two persons combine their investments, abilities, experiences, and other things to start a business. The maximum number of partnerships varies in every country. A partnership is different from a sole proprietorship but also the same to some extent.

Like Sole proprietorships, owners manage all business parts to grow and earn handsome profits. Adding different talent in the business, personal relations, experiences, and capital is a few of the most important benefits of the partnership. Although, we can not neglect the disadvantages

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Top 12 Characteristics of Partnership

If you are willing to start a business in partnership, you can do it orally or written. It means you need to set some duties, roles, profit sharing decisions, management decisions, and a number of other things.

Keeping them in writing is best practice, that piece of paper is circulated among partners and also shown to the registration authority in your country. If you are going to write it, you must consider the most important contents of the partnership deed.

1. Agreement

There must be an agreement between the parties concerned. These are the most important characteristics of a partnership. Without the agreement, the partnership cannot be formed. “No agreement no partnership.” But only competent persons are entitled to make a contract. There are some set conditions in a joint business deed.

These are determined clearly before the commencement of business. But it differs from business to business. These documents may be written or oral. But it must be written so that disputes may be settled according to the provisions of the agreement.

2. Number of Partners

There should be more than one person to form a partnership. Types of business partners can be any but there is a restriction for the maximum number of partners. In the case of ordinary business, the partners must not exceed 20 and in the case of banking must not exceed 10 (before nationalization).

3. Business

The objective of partnership formation is to carry on any type of business. It may be manufacturing or merchandise type small or large scale business but it should not be an illegal business in the country concerned.

4. Profit Motive

The basic motive of the formation of a partnership is to earn a profit. The more sales you generate the more profit you make. Its partner’s duty is to distribute it according to the agreed proportion. If there is loss it will be sustained by all partners except the minor.

5. Conduct of Business

The partnership business is conducted by all the partners or any of them acting for all. But each partner has right to participate in the management by law.

6. Entity

It has no separate entity apart from its members. It is not independent of the partners. Law has not granted it any legal entity. Registration of Partnership Business to make it legal and gain more people’s trust.

7. Unlimited Liability

This is the prominent feature of partnership that the liability of each partner is not limited to the amount invested but his private property is also liable to pay the business obligations.

8. Investment

Each partner contributes his share in the capital according to the agreement. Some persons become partners without investing any capital in the business. But they devote their time, energy, and ability to their business instead of capital and receive profit.

A combination of Monetary investment and time investment can develop a strong business brand.

9. Transfer-ability of Share

There is a restriction to transfer the share from one partner to another person without the consent of existing partners. So, the investment in the partnership remains confined to a few hands.

10. Position

One partner is an agent as well as the principal to another partner. He can bind the other person by his act. In the position of an agent, he can make a valid contract with another person or parties on behalf of his concerned firm.

11. Mutual Confidence

The business of the partnership cannot be conducted successfully without the element of mutual confidence and cooperation of partners. So the members must have trust and confidence in each other. Lack of mutual confidence is a drawback of partnership.

12. Free Operation

There are no strict rules and regulations to control the partnership activities in a few countries i.e., no restriction for the audit of accounts, submission of various reports, and other copies to any government authority. So this organization may operate freely without any interference.

If, Limited Partnership

A limited partnership is that form of organization in which the liability of some persons is limited, to the amount of capital which they have contributed to the business and certain persons are liable for all the obligations of the firm. The main characteristics of a limited partnership are as under:

Limited Partner: There must be at least one limited partner.

General Partner: There must be one or more persons with unlimited liability who are liable for all debts of the firm, they are called general partners.

The number of members: There are at least two members but not more than twenty ordinary businesses and not more than ten in the banking business.

Restriction for participation: Limited partners are not allowed to participate in the management of the business. So one partner cannot bind other persons by his act.

Inspections of books: Limited partners may inspect, verify and copy all types of accounts, records, and books at any time.

Compulsory Registration: Registration is compulsory by law. With the registration of the firm, the rights and liability of partners have also been registered.

Admission of a New Partner: New partners may be admitted in this kind of partnership without the consent of the limited partner.

Separate Legislation: It is controlled under the limited partnership act 1907.

Withdrawal of Capital: Limited partner cannot withdraw his capital from the business until he remained a limited partner.

Transferability of share: The share of the limited partner can be transferred to another partner with the consent of all general partners.

Conditional participation in management: If a limited partner conducts the management of a business, he will be liable for all the obligations of the firm.

Proposals and advice: Limited partner is entitled to give his proposals and advice to active partners.

How to Qualify for a Personal Loan

Last Updated on July 29, 2021 By Lisa C. Townes Leave a Comment

A personal loan is unsecured borrowed money, from a bank, credit union, or online lenders, by non- US citizens or resident aliens in U.S. Unsecured personal loan, is not backed by a car or house. The amount of personal loans ranges from $1,000 to more than $100,000. This amount is to be pay back in fixed monthly payments, over the period of two to five years.

Either you are researching about low interest personal loan lenders or going to submit your personal loan application, it is better to know what documents are needed to apply for a personal loan. If you work on the following, it will definitely increase your chances for approval of a personal loan.

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What Documents are needed to Qualify Personal Loan

Personal loans do not require collaterals such as a house or car. So it is getting difficult to qualify for a personal loan as a non-U.S resident in the U.S.

International lenders, banks, and financial institutions have strict eligibility criteria for a personal loan. In the USA, eligibility criteria are much stricter for non-U.S. residents or alien residents.

Here is the list of documents and general requirements for non – U.S. citizens across the U.S.

These Documents can be categorized as

A: Identification Documents

B: Financial Details

C: Credit card report

Detail of the required documents is given below. Make a checklist of the following documents:

A: Identification Documents

Formal processing of personal loans demands a series of documents that help in the identification process of the applicant. Following is the list of documents:

Passport of applicant
Driver’s license
State ID or Social Security card
Your Birth Certificate; applicant must be 56 years of age or older
Certificate of Citizenship
Utility bills
Military ID

B: Financial Details

Personal loan lenders required the following information and details for verification of your Income.

Last 3 months Bank statement
Salary slips for last 3 months and tax returns
If you are self employed, you have to provide income proof, audited financial for the last two years.
- Proof of office ownership and address
- Provide supportive document proving continuity of income
- Tax returns from the last two years

C: Credit Card Report

The application form may require information regarding your debt, liabilities, and assets. If your credit score is strong then you have better chances of approval of a personal loan at a lower interest rate. Credit card scores are general categories as follows:

Sr.	Credit Card Ranking	Credit Card Score
1	Excellent	720 and higher
2	Good	690-719
3	Fair or average	630-689
4	Bad	300-629

It is not possible for you as nonresidents to provide a two-year credit history with a valid credit score within the U.S. or you have a bad credit report. But the good news is you still can apply for a loan with a bad credit score. In this case, you will need nontraditional credit references to increase the chances of approval of a personal loan. Lenders will need the following nontraditional credit references:

Proof of additional source of income and working in U.S. for the duration of at least three years
Payment record of your current rent or mortgage expenses
Non-payroll-deducted medical bills, life insurance and auto insurance
School tuition charges
Paid Utility bills
Add a co-signer in your application. This will add weight age to your request for loan

Tips to speed up the application process

Once you have researched the best lenders in the USA. And finalize the lender who matches best with your need of loan and repayment plan. The next step is to apply formally for a personal loan. Following three steps will speed up your application process.

Make a check list of required documents before you start. Before you start your online application, make everything organized and check the complete list of needed documents. It will save your time, and decrease the chances of missing any important information listed on site of lenders.
Have a Scanned copy of all your documents. Keeping Electronic copy of your important documents is a good idea. It makes easy to complete online application. With a click, you can open the folder of scanned documents and attach the file of required document with online application form.
Start now, finish later. While applying online, if you don’t have everything in hand. Don’t get panic. Just use “save and complete later” function offered on most online application forms.

You can easily complete your loan application if you know what documents you’ll need. Now compare lenders and apply for a personal loan.

The lender will check your credit score which may knock few points off from your credit score. When you qualify for a personal loan, you will receive your funds within a week according to the lender’s term. A personal loan consolidates debt, improve your credit score and covers unexpected costs.

But before taking a personal loan, think things over and then make a final decision. Find the best lenders who offer the lowest interest rates. Be sure that you are borrowing only what you need and be punctual with your repayments.

Smartest Way to Use Credit Card

Last Updated on July 3, 2020 By Lisa C. Townes Leave a Comment

A credit card is also known as “plastic money”. A credit card allows a person to borrow funds from a bank, a financial company, or lender. This new financial tool has the potential to change your life. But credit card use will bring positive change or make your life worse. It depends on the way to use a credit card. If you use a credit card wisely, it will give you financial liberation.

Otherwise, it can let you fall into debt.

Millions of credit card users exorbitantly overcharged because they do not use it in the right way. Hence, it is best to use a credit card responsibly. Take credit card as a financial tool that helps you to build a healthy credit history that will serve you later in life.

The good credit score can make it easier to buy a new car or a new house on low-interest rates and fees. Here are top tips and tricks to help you to avail the benefits of having credit cards and avoid any costly mistakes.

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Credit Card Tips and Tricks

That is why we have come up with tips and tricks regarding credit card usage to help you boost your credit rating. Here is the list of credit card tips and tricks for beginners. Follow these tips to avoid accumulation of interest and getting a bad credit rating:

1. Be Aware with Terms

Make sure that you know all the terms either you have it or going to apply for a new one. You should have prior knowledge about the interest rate, when your payment is due, the fees and all those factors which may incur an increased rate of interest.

It is important to understand the Annual Percentage Rate (APR), which decides how much interest you pay.

2. Keep an Eye on Balance Alerts

Mobile banking services have made it easier to have a check on spending with your credit card. Many large card issuers will notify you via email or mobile text alerts whenever you have spent the amount equal to the threshold that you have set. Mobile alerts will notify you when:

When you have utilized 30% of your credit. For example, if your credit card limit is £1000. Then you should spend under £300.
If spending is unusual means doesn’t fit your usual pattern of spending, or transaction is from an unfamiliar location.

3. Activate Spending Analysis Tools

Spending Analysis Tool is one of the most important features offered by most card issuers. Spending track app allows you to see how much you have spent at the end of the month in different categories like restaurants, travelling, dining in, general merchandise, etc.

This will help you to analyze spending where you have spent more and where you have good control over your budget. Instead of letting your card to fall into debt, use your accounts to help you stay within your budget.

5 Ways to Track Credit Card Spending

Sign up for transaction alert.
Use text message banking to get on-demand accounts updates, such as a balance total.
Despite waiting for credit card bills, log in to your online credit card account and have a track of your account.
Your credit card statement breaks down your spending by categories. This might alarm you to cut unnecessary expenditures and save money for essentials.
According to new federal credit card regulations, you have to provide a snapshot of your credit debt.
This will help you to calculate how much you need to pay each month to pay off your current debt in three years.

4. Pay Your Bills on Time

It is important to pay bills on time to avoid interest. If you don’t, it will damage your credit score. Although it is very important to never skip a payment, still there are chances that you cannot afford to pay the full amount.

In this case, pay a minimum amount of your credit bill. Because if you miss a payment, it could result in a penalty, higher interest rates and a negative impact on score.

Your credit cards become expensive if you do not pay your bill in full and on due or before the due date. Consequently, the interest rate may increase to 20%, converting little debt into big debt.

Mid-Cycle Payments

Moreover, if you develop a habit to charge your card anytime in between the due date, this will make your credit card utilization low. Consequently, it will help to have a good credit score.

5. Is One Credit Card Enough?

Every new credit card advertisement may make you tempted to avail that too. But keep in mind, that every new application for a new card will drop your credit score. At the same time, it will increase the risk of too much debt on you.

So, it is better to keep one credit card especially when you are a college student.

6. Switch Your Due Date to Avoid Missing a Payment

If you are facing problem in payment of credit card bills as if the due date comes at an inconvenient time during the month. Despite missing payment, it is better to call your card issuer to move your due date.

This one simple move will help you to preserve a good credit profile.

7. Get a Reward or Cash-back Card Now

Credit card companies offer attractive deals to win the loyalty of their customers. So choose the best credit card for rewards. It is good for you to take advantage of these offers by using a credit card wisely.

If you are punctual in your full payments, a cash-back credit card is a great way to get some percentage of the amount you spent in form of cash or a reduction in your bill.

Another key point is keep one high-reward card for most or all of your purchases. This is a good way to rack up a lot of points.

Why Should You Be Cautious Of Payday Loans?

Last Updated on July 29, 2021 By Lisa C. Townes Leave a Comment

Payday loans which are sometimes referred to as cash advances or check loans are short-term loans at high-interest rates, typically around $500 or less, that are due on your next payday along with fees.

These loans may be marketed to help people to bridge the gap between their paychecks and unexpected expenses. But the Consumer Financial Protection Bureau says that payday loans can become “debt traps.”That is the reason, you should be cautious of payday loans.

The former president of the United States of America Obama said, “If you lend out money, you have to first make sure that the borrower can afford to pay it back”.

President Obama gave the above statement when The Consumer Financial Protection Bureau, a federal consumer watchdog group, just released plans to further regulate payday lending, a practice that’s viewed as predatory to consumers.

While payday loans are certainly popular, they are often criticized as charging exorbitant fees and interest rates, setting up borrowers to fail, and setting them further back financially.

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How does Payday Loans Work?

Payday loans are marketed with different names such as cash advance loans, deferred deposit loans, check advance loans or postdated check loans — but they typically work in the same way.

If someone is in financial crisis and needs cash fast before he gets his next paycheck, whether for an emergency, to pay a bill, fix their car, buy groceries, or any other reason. They can apply for a payday loan. The lender verifies his employment, bank account, and documents some other information.

And then approves an immediate loan for a certain dollar amount. The borrower may need to write a postdated check made out to the lender that is dated for the same day when his paycheck comes.

The due date of loan payment is usually by your next payday, generally in two or four weeks. Many states allow payday loan lenders to cash your check and get the loan paid off with accompanying fee charges. Different states allow lenders to charge from $10 to $30 for every $100 borrowed.

Why are payday loans bad? The Problems Related to Payday Loans

The Pew Charitable Trust estimates that every year in the United States, about 12 million people borrow nearly $50 billion through payday loans. The majority of payday loan borrowers are employed and of lower financial status.

In a cash emergency, people often opt for payday loans as they may provide instant cash you may need. But before applying you should be aware of payday loans problems.

High Annual Percentage Rates (APR)

If a person gets a two-week $500 loan that charges $15 in fees for every $100 he borrows. According to the CFPB, the Annual Percentage Rate of the above-mentioned loan will be almost 400 percent.

Short Terms

Payday loans are also known as short-term loans as you typically need to repay a payday loan within two to four weeks of the initial loan.

Additional Fees

You may have to pay additional fees on top of the initial loan fee if you don’t manage to pay back the loan within a short amount of time. According to CFPB, nearly a quarter of initial payday loans are re-borrowed nine times or more.

Non-sufficient funds charges, if you don’t have enough money in your bank account at due date to repay your loan. Then additional charges will be add on top of the initial loan fee.
If you do not repay loan on time then you have to pay late fees or return payment fees.
If you are unable to pay your loan on time and want to reschedule your loan’s due date. Then you will be charged with rollover fees on top of the original loan and initial fees.

Payday Loans Won’t Help to Build Credit

Short-term payday loan lenders usually do not report your payment history to the credit bureaus. That is why; a payday loan is not helping you build credit.

Target of Payday Lenders

People with limited financial education, weak credit, and low-income areas are targets of payday lenders. Just to achieve their target market, they follow payday loan laws. Each US State has its own laws, Residents of Louisiana may refer to Louisiana Payday Loan Laws.

Focus on scrutinizing people who are uneducated or desperate for credit. As these people don’t understand technical terms. So they give business to these lenders in form of higher interest rates and additional fee charges.

Why Are They So Disadvantageous?

The big difference between credit cards and payday loans is finance charges. Although finance charges on payday loans run around 15-30% of the amount you borrow. First thought strike to mind as it is the same as expensive credit card finance charges. But it is not.

The reason is credit card interest rates are spread out over a whole year while payday loan charges are amassed in a very short time. APR of payday loans would be around 800% in some cases.

Generally, the borrower has to pay a cost 35 times more than borrowing money on credit cards. If you borrow money for a home mortgage or auto loan to then the loan can cost may up to 80 times.

Do People Take Out Payday Loan Once?

Researches show that taking out a payday loan is a recurring pattern. The Consumer Financial Bureau Stated that 64% of payday loans are extended multiple times which results in fees that are more than the original loan amount.

Only 15% of easy to get payday loan borrowers pay the loan on time within 14 days and the rest of them take out six or more quick cash payday loans a year or roll over their loan within just two weeks.

Is It Detrimental To Take Payday Loans More Than Once?

When you take out payday easy loans often, it starts building a trap that spirals their finances out of control. Overextended finances and more loans with high fees and interest rates make borrowers spent a good amount of their checks once payday hits, and will find themselves short of cash again very quickly, taking out more loans. In this way, this stuff gets crazier.

Other Alternatives of Payday Loans

Financial advisers suggest that although payday advance loans seem like a quick fix. It is better to prefer other options such as; borrowing from a friend or family, asking your employer for an advance, or even taking out a cash advance or make purchases on a credit card.

Outcome

If you are in a financial emergency and need cash now then a payday loan seems the easy way out. But it may end up making your problem worse with their huge fees.

But no matter what you do, it is suggested to educate yourself about the risks and pitfalls of various loans. It is better to look for payday loans alternatives. Take help from credit counselors to develop a budget and work on starting a saving account.

Best Personal Finance App

Last Updated on July 28, 2021 By Lisa C. Townes Leave a Comment

When the concept of the demand and necessities and their difference is clear, the next step in financial responsibility becomes learning what to do with money left after meeting the basic living needs.

Table of Contents

Personal Finance

The management of fee for education, purchasing fixed assets like property or cars, buying the insurance policy, investing and saving for retirement are categorized as Personal finance. It may also involve paying for a loan, or debt obligations.

Financial Planning

The basics of personal finance is financial planning, a periodical process, that requires day-after-day monitoring and re-evaluation. Financial planning process involves five steps, these are

All above is a long and time-consuming process. Now finance management, budget sticking, and investment handling decisions are easier than before because of personal finance applications.

Personal Finance Applications

Expenses track, bills payment and budget creation are precisely fun activities and these tasks are easier now with Android apps. Either someone is trying to save money, track company investments or pay off debt; there are many easy to use apps to help. There are many free personal finance apps available at Google play store. Top 10 of them are going to be discussed one after another based on users reviews, experiences and expert opinions.

10 Best Personal Finance Android Apps

Wallet

A planner that helps to track money spent, plan a budget and save money. Get a report of finances, together with the people being trusted across multiple banks, Currencies and financial institutions. Upload Fidelity or Reward cards. Keep full control of finances.

Wallet Andoird App Reviews

Key or Unique Features

AutomaticBank Updates
Imports or Manual Bank Updates
FlexibleBudgets
Insightful reports
Sharing selected accounts
Loyalty and Reward cards

Money Manager

It allows to manage and record finance, personal, and business transactions, generate reports, and daily, weekly, and monthly financial data review.

Money Management Android App Review

Key or Unique Features

Doubleentry bookkeeping accounting system
Budget and expense management function
Credit/ Debit Card management function
Transfer,direct debit and recurrence function

iSaveMoney

It has a lot of features and functions that will help to plan a budget, record transactions, and forecast budget.

iSaveMoney Android App Reviews

Key or Unique Features

User-friendly directions
Speech recognition
Auto-complete function
Calculator
Budget maker templates
Budget planner templates
Debt and saving calculation based on income and expense info.
Budget forecast.
Daily transactions monitoring
Automatic Draft payment function
Export data in CSV format
Back up and restore data

Monefy

Safely synchronize data between all devices. Create or change records, add or delete categories and synchronize on other devices.

Monefy Android App Review

Key or Unique Features

User friendly interface
Add new records
Multi-currency support
Nice and informative charts
Safely synchronized using dropbox account
Backup and export data
Use budget mode
Passcode protection
Multiple accounts support

Bluecoins

An app to track and plan expenses, plan a budget. Synchronization and multi-currencies support, access to personal financial data on any device at any time and anywhere.

Bluecoins Android App Reviews

Key or Unique Features

Finance made easy
Daily summary
Monthly calendar
Expense, income and net earnings
Cash flow
Budget tracking
Flexible budgeting
Bills and reminder
Cloud backup
Fingerprint and password security
Export reports in PDF, excel & html
Powerful finance search engine

Mobills

Allows a monthly budget creation to take control of the money. Manage money, track spending, and achieve financial goals.

Mobills Android App Reviews

Key or Unique Features

Credit card manager
Financial goals and budgets
Customized graphs and reports
Advanced filters by bill, category, and tag
Cloud synchronization
Financial goals manager
Expenses with Geo-location
Store and save your receipts
Export and import of EXCEL, OFX and PDFspreadsheet
Bill payment alerts
Monthly and annual cash flow graphs
Monthly Budget Planner and Bill Reminder
Debt control

AndroMoney

A personal finance tool for use on your mobile phone. By using this tool, we hope you can better manage your wealth.

AndroMoney Android App Review

Key or Unique Features

Multiple accounts and support account balance & account transfer
Cloud Storage (Drop box ,Google Docs)
Synchronize with other devices
Any currency with downloadable rates
Hierarchical categories with custom attributes
Pie and Bar charts for Expense and Cash Flow
Password Protection
Overview expense and income summary
Back up data to Excel/ Mac Number

Fast Budget

Many tools for managing money like various types of charts or a useful calendar.Possibility to synchronize five devices.

Fast Budget Android App Review

Key or Unique Features

Create and modify accounts
Manage daily expenses and income
Insert daily revenues and outgoings
Scheduled transactions
Summary of cash flow

Daily Expenses 3

Income and expenses organization, money movement recorded by date, the reports review daily, weekly, monthly or yearly.

Daily Expenses 3 Android App Review

Key or Unique Features

Track income and expenses
Modify or delete the records
Backup or restore information
Summary of the month.
Reports review daily, weekly, monthly and yearly
Create graphical reports
Horizontal screen for tablets.

CoinKeeper

Popular personal finance management, budget, bills, income and expense tracker

CoinKeeper Android App Review

Key or Unique Features

Add income or expense
Wonderful ‘coin’ interface
Monthly budgets
Financially planning
Manage a family budget
Quick start, tutorial
Help centre for new users
Reminders for recurring payments
Detailed statistics
Debts management
Code lock
Export to CSV
Support for all world currencies

All of the above apps are free and have more ratings with respect to reviews, expert opinions, and expertise. The above information can be the best approach to consider the best app with respect to the requirements.

Disclaimer: All the videos and downloadable apps are reserved properties of the developer. Images, Videos, and other resources are shared for informational purposes only.

Successful Small Business Ideas 2022

Last Updated on January 24, 2022 By Jason Obrien 3 Comments

So, you are planning to start up a business. It is a great idea. But you maybe not sure how to start a small business at home? There was a time if you wanted to start your own business, you had to grovel to your bank manager, have something extraordinary to sell, and then try to persuade real people to buy it, and then you had a market value in the world of business.

But that was before the internet era when there was no email, no social media, and no CRM software. Now a day, modern technology turned the whole world into a global village. All you need is to have good business communication skills.

Social media and marketing automation now dominate our lives. Today, for home-based, cheap and successful small business in UK; a decent business idea with internet connection and devotion to work is enough.

United Kingdom, UK, is one of the major economies of the world. It drives economy of many other countries as well. Real estate, manufacturing industry, and service industry are the contributor to GDP of the country.

After Brexit and other global economic events, the country is growing again and its change in GDP 2.3% is really a good indicator. So, this is the time for entrepreneurs to go through the most promising business ideas from home which are forecasted to make money in this market.

Table of Contents

Homongous Successful Business Ideas in UK

For better understanding, we will categorize these businesses into different categories to answer your question what is the best business to start from home? If you are a female and want to have a startup, we have listed business ideas for women with low investments here.

IT business ideas; online business ideas

1. Bookkeeping Services

If you are good with numbers and take an interest in accounting. Then check out some free to use accountancy packages to offer bookkeeping services. Accounting is important to businesses, there is huge potential to provide these services at competitive pricing. You can use cloud-based wave accounting or open-source Gnu Cash.

2. Virtual Assistant

Perhaps the most lucrative assignment you can choose today. You can get your clients through sites such as Upwork, Fiverr. Choose clients, rates, and the working hours that work for you.

3. Social Media Consultant

The new marketing place is social media. Facebook and Instagram help you to grow beyond boundaries. You can get complete professional courses with recognized certification through Twitter, Google, and Youtube.

4. Affiliate Marketing Work business ideas

Do you want to earn money for doing absolutely nothing? Yes, it is possible by promoting somebody else’s product and services. For this work, you need a blog or website with good visitor statistics. And that is the tricky part.

5. Review Products Professionally

For this, make a profile on freelancing websites and offer your services as an “influencer” by leaving a review in exchange of money. The alternate way is to build your own website or blog and review products there.

6. Remote Secretarial Services

If you have excellent communication skills and you are well- organized then you can offer your services as remote secretarial services. This requires you to book a meeting, organize calendars, reply to emails, compose presentations, and answer phone calls.

7. Ebay Affiliate Business Ideas

In this commissioned base home business, you will need to work hard to sell other people’s stuff on eBay and take your commission.

8. App Developer

This is the internet business era. In the world of internet, new apps come out every day. This is the market of the future. For this, what you need to do is;

Create your app
Come up with a decent marketing orientation

This business won’t need to invest much money to get started but yes; it requires your time and effort.

This requires a little bit technical knowledge.

9. Be a Business Plan Designer

There are plenty of people who have resources and ideas but they do not have clue how to present their concepts to appeal potential investors. This is a good option for you if you have an MBA-type qualification or you have owned your own business.

10. Freelance Copywriter

Every organization needs some employees to write for them. Now the internet makes it easy for employers to hire someone hourly beside on regular salary package. So, this need opened up millions of opportunities and you could be the one to provide them.

Get started with a website and create an online portfolio. If you do not have a portfolio then create one by working for free then showcase your work.

11. Blogger and Vlogger

If you have any passion or interest like sports, crochet, app development, fitness, or beauty. You do not need to write or talk about it. You can make videos and promote your site on social media and other types of advertising.

You can make cash by selling your items, advertising space on your blog and vlog, and reviewing products.

12. CV writer

Everybody wants a new job and for this they need a professionally written CV. If you can comprehend what employers are looking for, and then you can write CV accordingly then you can earn money.

Get started with a website or register yourself on freelancing sites like Fiverr, upwork, freelancer etc and promote yourself also on social media like Facebook, youtube, and Instagram.

13. Photograph Selling

If you are a professional photographer or have an interest in photography then you can make money by selling your pictures on photo-selling websites. Gettyimages.com and flicker.com are the sites where you can establish yourself.

14. E-commerce Business Idea

You want to sell your products but you cannot afford an actual shop. Set yourself up online and sell all over the planet, read more about cloth selling here.

15. Travel Planner

If you are well organized then this is good for you. Many people have ample money and love to travel. But due to shortage of time they cannot make arrangements of traveling like flight booking, hotel, and car rentals.

With an eye for a bargain, you could make a living as a travel planner to people who are cash-rich and time-poor.

16. ebook Writer

If, you are knowledgeable on a particular subject and you can write a short book about it. Then write it and publish it on the Kindle store.

You can sell your book online here or on Amazon and other sites.

17. Online Clothing Store Business Ideas

The online clothing store is an $80 billion-a-year business. However, starting a successful online clothing store is not just buying a domain and placing an advertisement.

Step one chooses a niche for your site that has earning potential.

Step two is; you have to decide about the products you are going to sell. Because the clothing market is almost infinite so be specific. You can try Ladies, Kids or Gents clothing and start with either winter or summer collection suits.

Step three is to focus on your end goal. This will enable you to implement new trends.

Step four: Outline your business plan for further implementations. Outline your market, your potential shoppers, your products, and list of your competitors.

Step five: And the most important step is to bring traffic to your newly launched online clothing store. Social media marketing is effective and biggest traffic drivers.

Food Related Small business Ideas

Life is becoming very fast and new trends highlight the increased demand for street food, fast food, and plant proteins.

18. Street Food Business Idea

Food trucks selling Indian food with zingy vegetables and drizzled in chutney or Italian Pizza and Pasta could become a common sight. Fasten your seat belt and set up your own street food van.

19. Health Food

People are concerned about their health and they are exploring alternatives to staple foods. This is the time to start a health food business that stands out.

Cleaning Related Small Business Ideas

In UK, half a million people working in the cleaning industry and its worth is around £5.6 billion. It is a competitive industry but think about areas you are interested in and can start a business around it.

20. Windows Cleaning

If you have interests in it then go for it. New equipment for window cleaning made this work easier and now you can work from the ground.

21. Carpet and Sofa Cleaning

Carpet and Sofas always need cleaning. People may turn to a carpet cleaner to get their sofa and carpet look tip top.

22. Car Washing

People love their cars but do not have time to keep them in tip top condition. A mobile car wash business could capitalize on this.

Home Based Creative small Business Ideas

23. Furniture refinishing business ideas

People who love art and a little bit of old school in their lives. They want to refinish their vintage furniture with a touch of modern design. Pick up old furniture and do it up and then sell it.

24. Baking Retailers

You can bake cake according to the desire of the people and sell your awesome creations.

25. Event or Party Planner business ideas

If you are well organized and can keep minor things in the record then you can become a successful event planner.

Obviously some of these home-based small business ideas have more earning potential than others. These works may help you to earn part-time or on weekends. Explore your talent and interest and then plan what kind of business suits you and help you to grow in this technical era.