http://www.articlecabi.net/ Articles at Article Cabinet en-us http://www.articlecabi.net/finance1/business-insolvency-help.html http://www.articlecabi.net/finance1/business-insolvency-help.html Mon, 16 Aug 2010 04:00:36 -0400 Lack of enough assets to cover debts is what makes a business be termed as being insolvent. Also, the inability of a company to pay its dues as and when they are due is a situation which leads to its being in the same position. There are usually some potential warnings that act as pointers that a business is about to be termed as insolvent. Keeping an eye on the businesses performance against the actual cash flow is a means through which you are able to read the earliest of the signs. But just how well can a company avoid becoming insolvent?

The greatest way through which you can avoid insolvency in your company is ensuring that you improve your cash flow. In other words, you need to start engaging in those activities which are going to help you make your payments whenever they are due. Note that even in cases when the company is raking in millions in terms of profits, it is still in the danger of becoming insolvent whenever payments are not made on time. The method through which cash flow can be improved is through regular invoicing of customers on time. This is supposed to mean that you need to negotiate payments regularly from those clients who have long term contracts.

Another helpful way through which a company can avoid insolvency is through chasing debts, something which is supposed to ensure that no late payment goes unchallenged. Overtrading is another way through which most companies become insolvent, something which you can very well avoid by not taking lots of orders than you can already fulfill. If you do not have the resources and cash to cope with all the orders that you have, it is advisable that you cancel those which seem unrealistic.

If at all you have realized that regardless of the way things go, you are still not going to be in a position to meet all the financial obligations required of you, then you can as well seek your supplier’s opinion in regard to their adjusting your payment dates and credit limits. If you also have any unnecessary stock lying idle in the business premises you could very well reduce it. Alternatively, you can also opt to sell any underutilized assets that you have in the business, or also opt to have them leased out.

Remember that your creditors could petition a court of law which would in turn order your entire company into liquidation. If it occurs that you are worried about the risk of business insolvency, opt to renegotiate a payment plan which you can meet realistically. Note that if there are those who stand to loose their cash in the event your business folded, are going to be more than willing to agree. Considerably reducing overheads is another way though which insolvency in business can be avoided. But then again the cuts shouldn’t be so great such that operations ground to a halt. For instance, you can opt to cut down on advertising.

]]> http://www.articlecabi.net/finance1/the-ins-and-outs-of-home-loan-refinance.html http://www.articlecabi.net/finance1/the-ins-and-outs-of-home-loan-refinance.html Mon, 16 Aug 2010 01:36:12 -0400
Refinancing is when a home owner gets a new loan for their home. They get the new loan and pay off their old loan. The reason for doing this is to get a new interest rate that is lower. A lower interest rate can save hundreds, even thousands of dollars on the total cost of the loan.

Interest is figured every year a loan is carried. So, what this means is that when a person buy s a home they are not just paying a flat interest charge on the whole loan. What really happens is every year the balance of the loan is charged with the interest rate. That means continuous interest is being added to the outstanding loan balance every year. That can really add up.

Home owners are always looking to get the best interest rates. Sometimes, though, when a person first buys their home they may not have the credit or the current financial conditions can lead to a high interest rate. When rate drop home owners can take advantage by refinancing their home loan.

When the home owner refinances they are basically cutting their total cost of their home down. They are going to be paying the lower interest rate and being charged the lower interest rate. This can save a lot of money.

One thing to keep in mind about refinance is that in some cases it is not the best time to do it. Obviously, if the home owner can not get a lower interest rate then the time to refinance is not good. Also if the hoe loan is relatively new, the home owner should check in their agreement for any early pay off penalties the lender may charge them.
Many times such penalties are only effective within the first two years, but it does not hurt to check anyway as this can be costly. Besides the penalty, though, another thing is if the interest rates have been steady falling it might be worth it to wait a little longer for even lower rates.

Being able to refinance a home loan is a great deal for a home owner. Refinancing allows them to have more control over their home purchase. It also allows them to build equity since the value of their home over the amount they owe will go up.

Once a home owner refinances and locks into an interest rate they will not have to pay the higher interest ever again. The only time they may think of refinancing is if interest rates start to go down again. However, continues refinancing due to falling interest rates is not always ideal and can be expensive. So, refinancing should be something that is done occasionally, and just as a way to get a better deal. ]]> http://www.articlecabi.net/finance1/are-you-looking-for-the-cheapest-loans.html http://www.articlecabi.net/finance1/are-you-looking-for-the-cheapest-loans.html Mon, 16 Aug 2010 01:12:17 -0400 Taking out a loan is a great way to be able to afford what you want, right now. However, it can also pay to be prepared and have your financial situation in complete control before applying for a loan.

However, there are other things that you can do and one of these is to look for the cheapest loans. It is not true that all loans are alike, because many different loan agencies have different types of loans that you can get and different types of fees that are going to go along with the loans. What this means for you is that you are going to be able to find loans that fit your needs, no matter what your needs might be. So, if you are looking for loans, there are several things that you should do.

First of all, you should be very organized before beginning your search. You should have a list that has the amount of money you want to borrow and how you are going to spend it. It should also have the possible amount for a monthly payment you are looking for, and how long you want to have the loan for. Then, it should also have the ways that you plan on making the money that you need to pay back the bank. Then, as you look for the cheapest loans, all you need to do is take your facts and go talk to several loan officers.

When you are looking for the cheapest loans, you are going to be talking to lots of different people and seeing what they can do for you when it comes to your loans. This means that you need to know all of the information about your loan and what you want, and that you also can't be afraid to ask them questions about what they can do for you as a loan officer.

There are many ways that you can go about getting the cheapest loans, so you just have to be sure that you are finding ways to do that. If you are looking for the cheapest loans, you are going to be able to find them, you just have to keep looking for them and you just have to make sure that you are doing all that you can to actually get them. These are things that are very important for you to be doing. ]]> http://www.articlecabi.net/finance1/who-is-the-regulator-of-the-fsa.html http://www.articlecabi.net/finance1/who-is-the-regulator-of-the-fsa.html Sun, 15 Aug 2010 23:51:55 -0400
Today, nearly everyone is responsible to someone else - no matter how high their position. In the United Kingdom today we have a regulatory body within the Financial Services which is responsible for the way in which the industry functions. The Financial Services Authority has been set up by the government as a limited company and is answers to the treasury.

To some people within the industry, the Financial Services authority is seen as all powerful - Judge, Jury and executioner. The question is often raised amongst many brokers - Who is the FSA accountable to?

It is a difficult task that faces the FSA - they have both an obligation to consumers and businesses alike to ensure fair treatment all round. It is essential that the FSA's working practices are constantly reviewed in order to ensure that it is fit for purpose.

In June 2006 the Treasury asked the National Audit Office (NAO) to conduct a review of the FSA, focusing mainly on the three following points - Its economy, efficiency and its effectiveness. In April 2007 the National Audit Office published its findings on how the FSA had used its resources in five main areas of its operation:

- Performance Management
- Working with other UK regulators
- International influencing and representation
- Financial Crime
- The Financial Capability of consumers.

In summary, the National Audit Office's findings was by no means Damming however there were a number of suggestions and outcomes. One notable suggestion was that the FSA should be stepping up their focus on Financial Crime. It was thought that not enough was currently being done in the fight against money laundering - Currently the FSA devotes just under 10% of its resources to its financial crime objectives.

It is only through constant reviews and feedback from industry players that the FSA can continue its financial capability status as a world leader and that it will become fit for purpose for the markets and the industry as a whole that it regulates. ]]> http://www.articlecabi.net/finance1/the-history-of-money-laundering.html http://www.articlecabi.net/finance1/the-history-of-money-laundering.html Sun, 15 Aug 2010 23:33:28 -0400
Following a European Directive in 1991 on the prevention of money laundering, two further important definitions were included in order to clarify the above definition:

- Property: This means assets of every kind, tangible or intangible, movable or immoveable, as well as legal documents giving title to such assets.

- Criminal Activity: this means a crime as specified in the Vienna convention including any other criminal activity designated as such by each member state.

In 1987, the Financial Action Task Force (FATF) on Money Laundering was created as an international organisation dedicated to combat the fight against criminal money. The prevention of money laundering within the financial industry has for a long while been an important objective of many governments around the world. The European commission play a major role within the FATF with many of its EU member states making up a significant proportion its 30 members.

Proceeds of Crime Act 2002

The Proceeds of Crime Act 2002 saw a pooling together of a number of acts and amendments - Most notably, the act deals with the laundering of the proceeds of all forms of crime. No longer were the proceeds of drug-related crimes separated from all other forms.
In relation to reporting suspicious money laundering activity, the new act also extends this again to all forms of crime - This had previously been restricted to drugs or terrorism offences.

Under the Proceeds of Crime act 2002 there are three principle money laundering offences:

- Concealing criminal property: This is essentially property, which a person knows or suspects to be the proceeds of any criminal activity.

- Arranging: This happens when a person becomes involved in a process which they know or suspect will enable someone else to acquire, retain, use or control criminal property.

- Acquiring, using or possession: It is a criminal offence for a person to acquire, use or possess any property when that person knows or suspects that the property is the proceeds of criminal activity.

Contravention of any of the money laundering rules is a criminal offence. In respect to financial advisors and mortgage advisors, two areas of particular concern are:

- Failure to disclose: All suspicions of money laundering must be reported to the authorities.

- Tipping off: It is a serious offence to disclose to a person who is suspected of money laundering that an investigation is being, or may be carried out. ]]> http://www.articlecabi.net/finance1/term-assurances-a-basic-form-of-life-insurance.html http://www.articlecabi.net/finance1/term-assurances-a-basic-form-of-life-insurance.html Sun, 15 Aug 2010 23:31:21 -0400
Term assurance can be arranged for a wide variety of different purposes, both personal and business related. When arranged in relation to business use, this will usually include the provision of 'Key person insurance'. This type of cover is arranged in order to protect against the loss of profits resulting from the death of an important employee (or Key man)

When arranging cover, the term can be set just for a few months or even up to 40 years and beyond. The term will usually be set in relation to the purpose of the cover. For example, if term assurance is used to cover a loan or debt with a repayment term of 25 years then it is likely that the term of the assurance policy will be set accordingly.

It is important to remember that term assurance contains no element of investment as this is again shown whereby if the life assured survives the term of the policy, the cover will then cease and no refund of any premiums made will be given. Moreover, there is normally no cash value or surrender value at any time.

Premiums are normally paid monthly however annual and single premium policies do exist. If premiums are not made within a certain period after the due date (normally 30 days), the cover will then cease which will subsequently mean that the policyholder will be left with no cover.

There are two main types of term assurance which are level term assurance and decreasing term assurance. With level term assurance, the sum assured at the outset remains level during the term of the policy. An example of where level term assurance may be arranged would be an interest only mortgage where the balance of the mortgage remains the same.

As the name implies with decreasing term assurance, the sum assured reduces to nothing over the term of the policy which is usually by equal annual amounts. The most common use of a decreasing term assurance is to cover the balance outstanding on a repayment mortgage. Within the industry this is usually known as a mortgage protection assurance. In this way, the sum assured decreases in line with the mortgage by lesser amounts each month at the start than towards the end. ]]> http://www.articlecabi.net/finance1/the-long-term-effects-of-consumer-debt.html http://www.articlecabi.net/finance1/the-long-term-effects-of-consumer-debt.html Fri, 13 Aug 2010 13:49:40 -0400
Does that mean that our economy has the potential to crash? The potential, yes, but fortunately with safeguards in the economic structure, before it happens, we have ways to prevent it such as the Federal Reserve Bank stepping in to lower prime rates in order to encourage spending. For those who have credit cards with variable interest rates, the reduction in the prime rate will have a positive effect on their ability to repay credit card debt. It means the banks and other lenders can lower interest rates, thus consumers can borrow money at a more favorable rate and make purchases that they thought they could not afford.

On the other end of the scope, an increase in consumer debt also increases the potential for people to file bankruptcy. The detrimental effects on the economy may not be felt for several years since those being hit the hardest by these filings are the lenders to whom the consumers owe money. Retailers are not likely to be affected directly, though they may feel the effects as lenders tighten up their lending policies due to an increase in monetary losses because of bankruptcies and bad debt write offs. Initially the effects may not be felt because those who are filing bankruptcy or failing to pay their bills will be using cash to buy things that they need and want. They will have the income because they will not be paying off their consumer debt. Over time the losses will take their tolls - stores will have to raise prices, banks will have to increase interest rates, and both lenders and credit card issuers will tighten up lending policies to compensate. Consumers will feel the effects of this, whether they are aware of the cause or not.

How long it will take for the detrimental effects of consumer debt to cause a downturn in the economy is difficult to determine. It's not something that is visible overnight but rather something that needs viewed over a period of time in order to see the overall effects that it may have. It is something that will give enough time that our economic leaders will be able to act upon before the economy really does a tailspin that causes many business entities to have to close their doors or seriously cut costs. However, it is unknown whether it will be a real priority for economic leaders or those that can help change the trends. Hopefully, the effects will be kept under control however. ]]> http://www.articlecabi.net/finance1/how-to-avoid-being-buried-in-consumer-debt.html http://www.articlecabi.net/finance1/how-to-avoid-being-buried-in-consumer-debt.html Fri, 13 Aug 2010 13:16:07 -0400
What are consumer debts?

Consumers are debts that one accumulates by buying consumable goods. Consumer debts are non-investment expenditures and you cannot hope to recover any monetary profits from it. If you pile a huge amount of consumer debts, you will have to pay everything from it from your pockets. A good example of consumers debts are those that you accumulate in your credits cards when you go shopping or dining out.

Minimizing Consumer Debts

To help you minimize your consumer debts, you should learn to stick to your budget. At the beginning of the month, you need to list down all your fixed overhead cost such as your utilities, gas, rent, amortization, food, entertainment and others. On the other hand, you can also draw a list of things that you can have in case you have some budget surplus. Note that you need to reward yourself sometimes. However, make sure that you only give yourself a treat after all other expenses have been paid and you still have some money left.

Allocation a certain amount of money for your fixed overhead cost and make sure that you stay within your limits. If you must go beyond your limit, make sure that you do not beyond a few dollars of so. Always remember that when you go beyond your budget, you will need to take out money from somewhere to compensate for the shortfall. If you keep on having budget shortfalls every month, you will end up with a huge deficit at the end of the year. Such practice is not really good.

To stay close within your budget, try to keep tract of all your daily expenses. Keep a notebook where you record all your expenses for the day. You also need to compile all the bills that you receive and then record your bills religiously. You don't really have to be very good at doing accounting to do this. In fact, you can just list all your expense in one column and then add them together. It will not really take you more than a few minutes to do this thing. Besides, the benefits that you can derive out this simple activity are really great.

If you notice that you are spending too much money on something, try to find a way to cut back on your expenses. Note that if you really take a closer look at a given situation, you can always find a way to save some money. In fact, living a frugal lifestyle can be just as rewarding. Imagine being able to sleep well at night knowing your bills have all been paid and you still have a little money left in the bank. Try doing fun activities that don't cost much, like picnicking in the park! ]]> http://www.articlecabi.net/finance1/getting-the-most-from-debt-consolidators.html http://www.articlecabi.net/finance1/getting-the-most-from-debt-consolidators.html Fri, 13 Aug 2010 13:08:53 -0400
First of all, you have to really understand what it is that debt consolidators do. This is the first step to figuring out how you can get the most from them. What they do is debt consolidators buy all of your debt from the various places that you have debt with. This might include banks, credit card companies, other collection agencies, and all kinds of other things. The debt consolidators will buy all of these debts, which means that they are going to be paying off your debts for you. Then, the debt consolidators will issue a single loan that now means you owe them money for all of the money that they paid on your behalf.

What you should know is that debt consolidators actually are usually able to pay less for your debts than you would think. Usually, they can pay off your debts for less than you owe, and this means that they are going to make money on you by making you pay the whole debt. There isn't much that you can do about this, but one of the things that you can do is to be very honest and to tell them that you simply can't afford to pay that much money all at once. If they know that you need a payment plan, they are going to work hard with you to see that you are able to pay for the entire debt. Often, when this happens, you might be able to work out payment plan.

Working out a payment plan with your debt consolidators is something that you can do, and it is something that is going to benefit you very much. The reason that you can do it is that there are many debts that go unpaid, and very often a debt consolidation company is going to want to make sure that they get their debt, even if they have to have it paid at a smaller rate. This is why you should always ask about what kind of deals you can make, and you might be surprised to find that there are lots of deals out there between you and the debt consolidators. Remember also that making a deal is going to benefit both of you, they will get their money and you will have to pay less. ]]> http://www.articlecabi.net/finance1/avoiding-any-credit-card-debt.html http://www.articlecabi.net/finance1/avoiding-any-credit-card-debt.html Fri, 13 Aug 2010 12:45:18 -0400
Sadly, you didn't accept just one offer, but several, so now you have more credit card debt that you can ever repay and don't know what you are going to do about it. You can make the minimum payments, but you know that your balance will never decrease that way.

What's the answer? Rather than dwell on how you are going to eliminate the credit card debt, think about how to avoid it in the first place. Once you graduate from high school or college and begin working, it's a logical desire to have a credit card, and a practical one. After all, if you ever want to travel, you will need a credit card to book airline tickets, hotel rooms, and rental cars. Having a credit card is not the problem; it's what you do with it and how many you have that creates havoc in your life. Card issuers are at fault for soliciting college and high school students that they know most likely depend upon the parents to pay the bills. As long as Mom and Dad are taking care of it, you don't give a second thought to how much you are spending. The problems develop when you graduate and find that your parents expect you to now take over the payments. Oops! You didn't plan on that scenario.

What often happens now is that you begin looking for a credit card with a higher credit line and lower interest rate in order to eliminate the one you have. Your intentions are good - when you are approved for another one, you will cancel the one you have and transfer the balance to the new one. Problem - the new one arrives, and you just have to have a new computer, cell phone, stereo, wardrobe, or numerous other things, and if you transfer the balance from the old card, there won't be enough left to go shopping. It doesn't happen just to young people, either; middle-aged adults fall into the same trap and for the same reason. To avoid this trap, learn to limit yourself to one of two credit cards and no more. If you receive one with a higher credit line, get rid of one you have and transfer the balance, no option. Look for new cards as a replacement, not an addition. ]]>