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Finance Loans

Securing Bank Loans for Small Businesses

Contrary to popular belief, there are very many financial institutions that are willing to fund small businesses.

While it has been a banking trend to prioritize large businesses, the trend is changing to accommodate the numerous small businesses that are mushrooming.

While a bank loan isn’t a type of coffee you just dip your hands into, it is one financial facility that can take your business to the next level.

Securing Bank Loans for Small Businesses

Do You Really Need A Bank Loan?

Sometimes, a small business may require additional capital to expand its output. The business may outgrow its current financial capacity and may need additional working capital to handle its new size.

Every large enterprise that started from the grassroots will have a history of stagnation at a particular point because the operation costs far exceeded the current working capital at that point, and ultimately had to seek additional funding to stay afloat.

Bank loans are potent tools in getting your business to the next level.

Before you are granted that loan, there are a couple of factors the lending institutions will consider. These will include your credit score, your outstanding loans if any, your current cash flow, how long you have been in business, your business assets and investors, if any.

These factors will inform the lender of your risk profile.

Credit Score and Outstanding Loans

Your credit report will inform the lenders of your ability to make timely payments. This will cover all lending avenues like vendor contracts, credit cards, and other informal credit facilities as well as other loans.

Any existing loans will also be considered, together with the current cash flow. If the current cash flow can sufficiently cover the existing loans and accommodate a new bank loan, then you may be approved by your bank for a loan.

All small business owners will have to review these factors, and plan appropriate actions to remedy potential leaks.

Otherwise, you may end up with the extra commitment of remedying these issues while still operating below optimum.

How Long Have You Been Operating?

It’s no secret that banks will favor businesses that are much older. The longer the business has been in operation, the less likely they are to default.

This isn’t convenient for small businesses since they will be at pains to compete favorably with older entities competing for the same facilities.

However, lenders are open to investing in small businesses that have maintained proper financial statements and accounting records.

These will stand in for your business’ lack of decades of experience, and most lenders will assign a relationship officer to guide it on better financial management, thus growing with the business.

Criteria Used to Qualify You for a Bank Loan

Bank Loans Are Financial Tools

There are unlimited scenarios on how a loan can help you, depending on the growth stage of your business.

Bank loans can help your business get more inventory, acquire professional personnel or expand your franchise.

It all depends on how far you want to go. If you have decided that you are going to the next level, then reach out and have a financial institution grow with you.

Business Finance Planning

Do You Have What It Takes to Be a Good Financial Adviser?

Having a Career in Financial Management

how to find a good financial advisorIf you were in the shoes of your clients, would you consider and end up deciding on hiring yourself as a financial adviser?

So many things have been said and written about what makes a good financial adviser – his habits, the innate characteristics which he is gifted with, his credentials and qualifications on paper, and the list goes on. Have you identified yourself with any of those things and attributes?

How about these essential qualities that make for a good financial adviser? Have they crossed your busy mind that is so engrossed in numbers, money-making and investment strategies?

Let us guide you through a rather brief self-assessment. Read on and learn a little bit more about yourself. Do you have these in you to be called a financial adviser, a good one to be more specific?

Characteristics of a Good Financial Adviser


A good financial planner has been schooled and is very learned in business, and financial planning and strategies. Beyond that, he has to have experiential credentials. It goes even further than that. He thinks on his feet and the way his mind works is very adaptably. He knows his clients, their needs and their goals and so he knows how to adjust to them, customize his approach to financial advising accordingly depending on their personal individual circumstances, and ultimately applies his technical knowhow combined with experience based on these contexts.

financial managerHis excellence is not just reflected on paper. He has the street smarts even which is a deemed necessary ingredient in staying power in his chosen career. He has wisdom too. All these he incorporates on the job.

That is what expertise in financial planning is.

What do you think? Do you belong?

Genuine Concern

He cares, and truly, for his clients and their financial health. His profession in finance is never just about quota, commissions and earning for himself. He would not shove a new product which he is selling to a client if he believes it in himself that the product is inappropriate and lacking significance in his given situation.

A good financial adviser finds the time to have actual conversations with his clients over some coffee and makes them feel valued and comfortable. While he does some necessary talking and a lot of crucial financial advising, he too is an authentic listener.

He serves as a partner to his clients, guiding them to financial stability and success. His clients are a priority.

Proactiveness and Initiative

A good financial adviser is a good communicator. He keeps his clients posted with updates in exiting financial issues, concerns and trends which can affect and impact his clients’ previously thought out plans and routes to take in their investments. He is first to pick up the phone to inform his clients if there are any new doors open that lead to new and great financial opportunities.

financial planners in my area

He goes out of his way to direct his clients to the right way.

How are you faring so far? Do you still qualify under the good financial adviser category?

Confidence and Composure

A good financial planner is an expert, communicates effectively, takes action as necessary and is concerned. Equipped with all these, confidence and composure on the job follows.

He is patient, calm and composed as are the online financial advisers on Time may be of the essence but urgency without security is not. So, he takes the time to listen, read, observe, analyze and evaluate before he speaks what he decides and believes will be best for his clients.

Are congratulations in order for you? Do have these foundational features to deserve to be called a financial adviser who is good at what he does?

Business Finance Loans

Importance of Knowing Your Credit Score Ratings

Sometimes, we are placed in a situation where no matter how hard we work, we simply are not making enough money to pay for our expenses. In consequence, we resort to making debts and regardless of the amount (may it be in small quantities or bulk), we put ourselves at risk for falling into a bad financial situation.

what is a good credit score rangeMost often, the safest way to make a debt is through loans. Applying for loans may sound simple, but there are a lot of underlying elements before you are granted one check. Credit companies use several factors such as credit score ratings as the basis for loan application approval.

What Credit Score Ratings Are

Credit score ratings are reports of the evaluation of a debtor’s credit history by a creditor through monitoring a borrower’s capability to pay his/her other credits and bills. These scores are usually quantified through ratings or scoring systems which can help a creditor learn if a borrower is worthy of being granted a loan.

A credit rating is also used to determine how much money a lender can release to a debtor, based on the risks associated with the consumer’s ability to pay. In any case that a loan application is approved, a calculated payment scheme based on these risks is generated, along with corresponding interest rates.

Typically, a borrower with an excellent credit score rating is awarded the maximum loan amount with minimal interest rates, in contrast to debtors with bad credit score ratings who may be granted the applied loan, but at higher interest rates. With this in mind, the need to determine what is a good score range and what a bad credit definition is through a credit score ranges chart is important.

minimum credit score for loan approval

Determining Your Odds by Knowing Your Credit Scores

As mentioned above, a credit score rating can assist in determining if you will be granted a loan or not (depending on payment conditions). Normally, getting info on how you fare before you even apply for a loan from an agency is a good idea to help you understand the schemes that the agency has to offer for you, as a consumer.

For one, you should know how you tip the credit scores scale by having them calculated through an automated scores calculator such as the ones cited in This software is programmed to calculate the statistics of your credit scores in three bureaus credit scoring platforms within minutes, written in a comprehensive report. In general, you should aim for a score higher than 700 to get your loan approved today.

Getting loans may be one of our options whenever we run out of cash to use for our needs or maybe even for additional investment in businesses. It pays to know how good you will fare with your credit score rating beforehand, through automated software for you to anticipate how many loans you will be granted. Ideally, you should have a good credit score (700 and above) to increase your chances of getting better deals. If you are an aspiring entrepreneur who wants to apply for loans for your venture or maybe even if you are just a person who badly needs cash, then you should see to it that you have a good credit score.

Finance Insurance

The Types of Insurance You Need to Cover Your Business in NZ Right Now

If you own and are operating any sizeable business in NZ, you have to ascertain that your trade, properties and people are well covered by insurances of specific kinds.

Business insurance against risks

NZ insurance is named as such because it leaves you at ease and at peace that the investment of blood and sweat, and perhaps your entire life, is guaranteed with adequate protection from crumbling down into pieces should any unfortunate events, whether it be of small or huge impact, occur.

Insurance is your assurance that your business carries on in its usual operations and thrives even despite the inevitable risks just lurking around or the actual realization of such risks.

Presented here are four of the most essential types of insurance which your substantial business needs to be covered with right now.

Commercial Workers’ Compensation Insurance

As a business owner, commercial workers’ compensation insurance protects you and your company from any legal liabilities should an employee of yours incurs injury or at the worst, dies as a result of something that is directly linked or related to working for your company.

In such occurrence, the workers’ compensation insurance will then provide for wage alternatives and medical assistance which in turn, disqualifies that particular employee’s rights or his kin’s rights to file legal complaints against you and your company.

The claim of an employee may even be as mundane and commonplace as incurring carpal tunnel syndrome due to everyday operations of a certain equipment utilized in your company or even the continuous use of computer mouse.

It is best to get coverage for instances like this. After all noncompliance to obtaining workers’ compensation insurance is sanctionable by the laws.

Commercial Property Insurance

Commercial property insurance, as the name suggests, covers for your business’ physical properties.

This is particularly applicable in the incident of natural calamities such as flooding and earthquake resulting in damages to your physical location and its implements. This type of insurance also applies on occasions of fire, theft, vandalism or any deliberate forms of man-made destruction or damages to your office or shop and the equipment and other material properties contained in them.

Commercial property insurance should guarantee the protection of your earnings if there may be any forms of business interruption or complete inability for business operations to continue due to the above mentioned circumstances.

Company liability insurance coverage

Commercial Liability Insurance

This especially applies if your business deals with distribution of products which come along with risks in their usage.

A good example would be a skincare products manufacturing and distribution company. In the event that a buyer of your items claims to have sustained and suffered from allergies or at the worst, more health complications, due to the use of the goods which you are selling, and therefore he is adamant at suing you. Then there will be a commercial liability insurance for you to turn to and aid you in the costs of the legal counsel and the legal processes in order for you to face the charges or better, for arrangements which will not have to be brought to court.

Professional Liability Insurance

This is also called the error and omissions insurance.

If your company provides services instead of products distribution, then you are obliged to acquire professional liability insurance. This is to protect you and your business from any claims of negligence resulting in errors or failure in the performance or rendering of services offered.

This specific type of insurance should be applicable to businesses as wide and far-reaching as a law firm, a real estate development company and IT services providers to the less sizeable or medium-scale businesses such as a hair treatment salon.

Finance Loans

Minimize Your Financial Losses Through IVA

Responsibility to pay loans

We are sometimes placed in a really tough financial situation which may be brought about by our own doing such as making bad financial decisions or it may be due to a bad global economy where the flow of cash is not at its best. Either way, when we are facing a financial crisis, we also face the risk of losing our assets and even getting laid off our work and we resort to making debts which eventually pile up.

To prevent facing bankruptcy, many people apply for individual voluntary arrangement instead. What is an IVA and how does IVA work, are all questions which we will try to answer in this article.

What Does IVA Stand For

An IVA or Individual Voluntary Arrangement is usually filed by an individual who is facing business insolvencies but does not want to file for bankruptcy. An individual voluntary arrangement is similar to a debt loan, where an applicant applies for the scheme with creditors and through a formal and legal agreement, stipulates payment systems which are based upon a debtor’s capacity to pay.

Many financial experts advise individuals with large outstanding debts to apply for IVA instead for filing for bankruptcy especially if they own a lot of valuable assets. By definition, IVAS are supposed only to cover up for business insolvencies. However, recent trends in countries like those in the United Kingdom, are seeing IVA applicants who want to settle their personal insolvency.

Typically, people who want to pay for their personal bankruptcies start with small debts which pile up and become involved in delayed payments, especially since the interest rates for these debts also cover up for tax. Payment period usually varies, and most probably these schemes are based on the capability of the individual to pay for the equity, given his or her current financial situation.

Credit card settlement

Advantages and Disadvantages

While applying for an IVA seems like a good idea, there are also IVA pros and cons that come along with these promises. The pros and cons of individual voluntary arrangement mainly revolve around the debts that it can cover, depending on the methods. Some of these debts include:

1. Credit Cards
2. Card Bills
3. Bank and Personal Loans
4. tax debts
5. Electricity and Gas Bills
6. Secure Loans and Mortgages

While those are the loans which an IVA can cover, there are also some which it doesn’t, depending on advice given by the creditors. IVA excludes:

1. Student Loans
2. Child Support
3. Court Fees and other fees ordered by the court

As you can see, the number of insolvencies that an IVA can cover is more than those that it can’t.

Final Note

If you are considering applying for an IVA, you can check out reliable creditors like Creditfix – individual voluntary arrangement to help you with your debts. As mentioned, IVA can help you deal with your economic crisis gracefully, without having to give up a lot of your assets. Depending on the agreement with the creditors, an IVA can help you pay for a variety of loans and it might be wise to apply for one before your time and money runs out.