Your finances are something that you must be vigilant about, or risk major consequences. There are situations in which you need to make decisions regarding your finances that could have a huge impact on your future financial well-being, and these should be considered carefully to ensure the best possible outcome. One of these decisions involves tough financial times when have urgent obligations but not the funding the fulfill them. When this situation arises, you may be tempted to take out a payday loan. This could be a good decision for you, but it is important to be cautious in order to protect your safety and the security of your financial interests.What Are Payday Loans?Payday loans are small sum, short term loans that act as advances on your next paycheck. In order to take out one you must be able to provide valid identification, proof of average income, proof of length of pay-period, and a verifiable, active checking account. These elements will ensure you are who you say you are, as well as ensure the lender that they will be repaid. These loans last until your next paycheck, when the total amount of the loan, as well as fees and interest, are to be repaid.The AdvantagesThere are certain advantages to choosing payday loans as your financial resource in an emergency situation. These involve not only the application process but the qualities of the loans themselves. As opposed to most other loan products, these do not generally require a credit check. This means that even if you have very bad or no credit you will still have access to a payday loan. Payday loans are active very quickly. Some are even available within minutes of your application being approved. Most others will be available within 24 hours. This is much faster than most other forms of loans or advances. The short time period of the loan means that the obligation is brief and, if repayment happens on time, you will not have to factor the loan repayment into further budgeting. They are easily accessible both through physical money stores that provide other services as well, and through online lenders.The RisksLike with any other financial decision, there are some risks involved with taking out a payday loan. The fees associated with a payday loan can equal a large percentage of the loan amount, which increases the amount that must be repaid. If you choose to extend your loan, these fees are renewed. This can make repaying the loan very difficult. Interest rates applied to payday loans are the highest in the loan industry. These sometimes reach four-digit percentages, and dramatically increase the amount of the loan, especially if the loan period is extended. The short period can also represent a problem in that it doesn’t give you much time to prepare for repaying the loan and budgeting your reduced paycheck for all of your other expenses.Staying Safe with Payday LoansMany people question whether payday loans are safe. This is a viable question, especially when you consider that some people choose to take out these loans through online sources. Anytime you use the internet for a financial transaction there is some risk. Knowing what to look for, and how to properly manage a payday loan ensures that you and your information will remain secure. When using a money store, your information is kept absolutely confidential. Even though your checking account information is collected, you can be sure that this information will only be used for the purposes that you authorize. Online lenders are slightly more difficult When choosing an online lender, be sure that you are using one that is reputable, and offers accreditation from business bureaus as well as insurance. Do research on your chosen lender to see if anyone has lodged complaints against the company. Just like with a money store, you will provide authorization for any payment activities. By making sure that you are working with reputable lenders, you can be assured that your interests are protected and that you will be able to borrow the money you need safely.
Business Capital Solutions In Canada: Accessing Proper Cash Flow & Commercial Financing
Business capital requirements in Canada often boil down to some basic truths the business owner/financial mgr/entrepreneur needs to address when it comes to financing for businesses.
One of those truths? Knowing the true state of their financial condition and what financing they do and don’t qualify for when it comes to meeting commercial lending requirements in Canadian business.
Business Loans In Canada
Whether you are smaller or start-up firm looking for information on how to get a business loan or a larger established firm looking for growth financing or acquisition opportunities we’re highlighting 3 mistakes that commercial loan seekers like your company need to avoid making when addressing, sourcing and negotiating your cash flow / working capital and commercial financing needs.
1. Understand the true condition of your company finances – These are almost always successful addressed when you spend time on your financials and understand how your financial statements reflect your access to commercial loans & business credit in general
2. Ensure you have a plan in place for sales growth and financial needs as it relates to commercial financing
3. Understand that actual hard facts about cash flow which is, of course, the lifeblood of your company
Can you honestly answer or feel positive about all those 3 points. If so, pass Go and collect $ 100.00!
A good way to address your company’s finance plans is to ensure you understand growth finance solutions, as well as how to manage in a downturn – i.e. not growing, losing money, etc; It’s never fun to fund yourself in an economic or industry downturn such as the COVID pandemic of 2020!
When we talk to clients of new or established businesses it seems they are almost always talking about sales, so the ability to understand and focus on the differences in their profits and cash fluctuations is key.
How do cash flow and sales plans and projections affect the type of financing you require? For one thing sales growth usually starts out by consuming your cash, not generating it. A poor finance plan will drag your business down and addressing financing simply gets tougher and tougher.
Three basics always emerge when it comes to your search for the right business capital and financing.
1. The amount of financing you need
2. The type of financing (debt/cash flow/asset monetization) The business loan interest rate will be dramatically affected by whether you choose traditional or alternative financing solutions. Private business loans in Canada come from non regulated commercial finance companies most often known as ‘ alternative lenders ‘. These lenders are typically highly specialized in one ‘ niche ‘ of business financing and may be Canadian firms or branches of U.S. banks and non-bank lenders
3. How the financing is structured to be manageable with your day to day operations
What Finance Company In Canada Can Meet Your Borrowing Needs & Why Is Capital Important In Business
Let’s identify and break down key financings your firm should know about and understand if they are applicable and achievable to your business. They include:
A/R Financing / Factoring / Confidential Receivable Finance
Inventory finance / floor planning / retail inventory
Working Capital term loans
Unsecured cash flow loans
Merchant working capital loans/advances – these loans are geared toward short term cash needs and are typically one year in duration. Loan amounts are typically 15-20% of your annual sales revenues.
Royalty finance
Asset based non bank business lines of credit
Tax credit financing (SR&ED bridge loans)
Equipment Leasing / Sale leasebacks – Equipment financing in Canada is used by almost 80% of all companies looking to acquire new, and used, assets.
Govt Guaranteed Small Business Loan program – Government Loans in Canada are sometimes referred to as ‘ SBL’, aka Note: BDC Finance solutions are available from this Canadian non-bricks and morter crown corporation. A small business loan via the government-guaranteed loan program comes with true flexibility around term loan duration, market rates, no pre payment penalties, and of course the low personal guarantee that is required by borrowers. These two ‘ government ‘ loan solutions are often perfect for financing a new business.
If you’re focused on not making mistakes in your business finance needs and want to capitalize on the solutions your competitors are probably already using seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your cash flow and commercial financing needs.
Stan has had a successful career with some of the world’s largest and most successful corporations.
His employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) In 2004 Stan founded 7 PARK AVENUE FINANCIAL – He is an expert in Canadian Business Financing.
Online E-Commerce Websites – A Great Way to Make Money and Pad Your Resume With Work Experience
The worst thing about either being unemployed or without work experience, is trying to explain things to a prospective employer.Well I found the answer and its something that will cost you little to invest and will probably make you some money in the meantime. What I’m talking about is starting e-commerce websites which you can do without really any technical experience and relatively little money spent. I wish the Internet was around when I got out of school!Once you have any kind of presentable e-commerce website running, you can cover your butt and make yourself look good when accounting for time when you were unemployed or even never had a job in the first place by stating to your prospective employer that you owned and operated your own e-commerce business and show him the actual site(s). There is no way your prospective employer will be able to know how much you made with your e-commerce business and the chances are he will overestimate your revenue ten fold. It’s actually fun owning an E-Commerce website and you’ll learn things later later on through trial and error that you can apply to future jobs. You can actually develop good writing and business skills as its like operating your own business with hardly any investment!Here’s the easiest step by step method of owning an E-Commerce Store that I know of that I do myself:1. Decide on a specific product you want to sell.2. Come up with several Domain Names, as close as you can to the products name.3. Go to a Domain registration site and see if the domain name is available. I would recommend using a .COM domain and failing that a .Net or .Org. Almost all one word domain names are going to be taken so I would try to use the shortest three word domain name or possibly two if it was available. You may need to put a “Store” or My” with a 2 word combination to get an available domain name. Once you settle on a Domain name you need to register it, which will cost you roughly $8-$12 a year. Again try to get the shortest possible name that emphasizes the product you are selling.4. The easiest way I know to launch an E-Commerce site is through a program called “The Easy Store” of which I am a customer. This program is put out and installed by Zeus software and you basically don’t have to do much at all as they do almost everything. What Zeus does is put out an E-Commerce Website that sells all Amazon products and which Amazon is responsible for everything and you make a 4-6% commission for each sale from Amazon. Thus you are investing nothing on inventory, don’t process the order and aren’t collecting the money. Amazon does all that. Amazon then pays you for each item sold through your site. The Easy Store provides you with free web hosting for a year under one of their plans. Basically, if you sign up with the Easy Store, they will do all the entry work for you and walk you through things and give technical advice. You can contact them by phone if you have any technical matters. The Easy Store is not very expensive- note I do not have any financial interest in the company and I’m recommending it strictly as a customer who receives no benefit for recommending it. You do have to become an Amazon Associate which is free and takes less then a day to register. Listed below are two of my Easy Stores for example.5. Essentially the only thing you need to do is to come up with good Keyword descriptions that will come up high in search engines like Google which will draw a lot of your traffic for potential customers. You will also need to submit your domains to search Engines.6. The most important thing in an E-Commerce Store is that it looks professional. For another $80 or so, The Easy Store will custom design a logo for you. My Easy Stores which you can find below feature their custom logos.7. I would also join Google’s AdSense program which The Easy Store will put on your site for free once you register for AdSense. AdSense pays you a variable amount of money for each Google Ad on your site that gets clicked. Registration for AdSense is free. Do not click any ads yourself and do not have friends and family click, because if Google finds out, you will be banned from AdSense.8. Another way to get traffic to your website, is to write blogs and have them published online by different sites as well as your own.Keep in mind you won’t get rich quick and the rarer a product is, in all likely hood you’ll get more customers because there are many E-Commerce sites selling the same niche product. I can’t think of a better and cheaper method for gaining work experience for a future employer and making money at the same time.