A credit card is one of the most used financial tools nowadays. Whether it’s retail purchases, bill payments, or flight bookings, a credit card is quite beneficial in various ways. But the one thing your credit card is not best suited for is cash withdrawal. Let’s find out why.

What Makes A Credit Card Not Suitable for Cash Advance

Most credit cards allow you to withdraw a portion of your approved credit limit in the form of cash, but it is not advisable to use your credit card for instant cash. Here’s why:

  • Cash Advance Fee: When you use your credit card to withdraw cash, you are charged various fees. Cash advance fee is the major fee. This fee is charged based on the amount of funds withdrawn. Most banks charge you up to 5% of the total amount withdrawn for every cash advance transaction made on your card.
  • ATM Fee: When you use your card at an ATM to withdraw cash, you are also charged by the bank of that particular ATM in the form of ATM fee.
  • Higher Rate of Interest: Interest rates for cash withdrawal are generally higher when compared to the interest rates for retail purchases made on the card. Most banks charge an interest of 18% p.a. on cash advances. Whereas, the interest rate for retail purchases made on a credit card would lie mostly in the range of 15% p.a. to 18% p.a.
  • No Grace Period: You don’t get a grace period for the cash advances made on your credit card. Most banks charge the interest for a cash advance from the date of cash withdrawal. This would make it difficult for you to minimise your expenses.
  • Overseas Transaction Fee: If you use your credit card for cash withdrawal overseas, it just attracts more charges such as the overseas transaction fee. Such charges add on to the usual charges such as cash advance fee and ATM fee. It is best for you to not use your card to withdraw cash overseas.

Keep in mind

  • Use your credit card to withdraw cash only in emergency situations where you require instant cash.
  • Look out for other alternatives before you opt for a credit card cash withdrawal.
  • Know the maximum limit of funds you can withdraw using your credit card. Most cards have a limit for cash advances.
  • Once you withdraw cash using your credit card, make sure to repay the amount quickly in order to avoid paying high interest and to minimise your debt.
  • Make sure that you actually require cash before opting for cash advance.
  • Do not make this a habit or use this facility whenever you need instant cash.
  • Never ignore the terms and conditions associated with your card’s cash withdrawal facility.

Remember that cash advances on your credit card can affect your finances due to the extra charges. It is recommended that you avoid cash withdrawals on your card as far as possible. Consider it only as the last resort for emergency cash.

Many companies at some point in time tend to falter. There could be many reasons for the same. The reasons could vary from internal or external factors that make the company go weak. To curb any further damage or losses to the organization, many financial institutes and banks join hands to restructure the debt of the faltering company and provide it timely support in terms of finance to nurse the sick company back to health.

The other underlying factor is to protect the interests of the stakeholders, investors and similar people who act as potential lenders. Corporate Debt Restructuring (CDR) works out well especially for companies who have borrowed money from more than one institute. CDR comes to the rescue specifically because it works on a larger interest of protecting everybody’s interest.

Corporate Debt Restructuring in India comes into picture when it is on a point of insolvency. The process of restructuring is implemented when the company profits look viable, but due to some unsolved factors, it continues to incur losses. The factors can range from change of interest rates, change in trade policies by the government, change in the currency and various other factors. CDR gives a second lease of life to the failing company by getting different parties with vested interest in the company to get into different kind of arrangements with the organization in terms of exchanging their debt with the investors in return for a percentage of ownership in the shares of the company. The arrangement could also be waiving off a part of the loan or both parties decide not to take action on each other until a fixed period for finding a solution has not lapsed.

Corporate Debt Restructuring in India was introduced in the year 2001. During this year, RBI came up with a mandate that was required to be followed by the banks and other financial institutions. The mandate simply states that if 75% of the creditors agree to help the failing organization, the other 25% will have to agree to help the 75% creditors to save the company. CDR is made available only if the outstanding debt of creditors and debtors should be 100 million or above.

To avail such facilities, one can contact JM Financial firm. The firm specializes in offering a broad spectrum of business solutions. JMFL provides services that range from Investment Banking, Debt, Commodity Sales and Trading, Equity, Financing and Lending, Housing Finance Wealth Management, Portfolio Management Services, Alternative Asset Management, Asset Management, and Distressed Asset Management. Kindly visit their site to know more about their offerings.

There are many cars for sale all over the internet and no matter how many times you hear about internet scams, the internet is still a nice place to buy cars. In fact, it is one of the easiest ways to buy a car. If you want to buy a car on the internet, here are a few tips for you.

Meet the seller in person

Make sure you stick to sellers in your area. It is very important to meet the sellers before you give out any money. Make sure to have someone to come along with you when meeting with the seller. I have always bought a car on the internet and each party always came with an extra person. Avoid sellers that offer to deliver the car to you even with car finance Auckland. Some companies will tell you to send them money but once you send the money, you will never hear from them again.

Look for clear photos

Before buying any car on the internet, look for a seller that provides clear photos of the car. Get as much information about the car as possible. You need to see the interior, the exterior and the engine of the car. It is also important to look for the performance features.

Be wary of poor language

If you receive emails from the seller that contain constant grammatical mistakes, it should be a red flag. You will likely to be talking to robots and not real persons. They may be mass produced emails that are sent to everyone to inform them about false cars for sale. They will try to tell you to send money to them or get your bank information and steal from you. Even if it is not a scam, a genuine seller should put in some effort to show seriousness. Read more: https://www.youthgarage.co.nz/

Oboe reeds play an important and indispensable role in making sure you play the tunes right. If you are starting out with Oboe, the first thing you need to make sure is that the reeds are not too hard. Something soft or medium-soft should work for you. In a market filled with different types and styles of reed, finding something that meets your unique demands is going to be slightly difficult. However, it is important you choose a good oboe reed supplier for the perfect reed for your needs. Let’s get started with how.

Where to buy?
This is where you will need to start your search. Where should you go to buy the reeds. There are many suppliers available online and offline. You may even know the ones that sell the best kind of reeds to you.

You can always research into the supplier and make sure you have the best one on-board. However, even though you have chosen the same make and supplier from last time, chances are you would get a slightly different type of reed, as they tend to change with the climatic conditions and other aspects.

You may want to check into the hardness of the reed and also other physical considerations, and match it with what you have, before making the purchase.

The cost of the reed
The next thing you will need to consider when choosing a supplier is the cost of the reed. Yes, the reed cost varies as per the external factors and also according to the discounts offered by the supplier. Even the brand associated with the reed can affect the cost of the reed.

On an average, the price of the reeds is somewhere between 11 and 14 pounds. If you want a professional reed, then the price can go as high as 20 pounds. The level of professionalism also affects your reed purchase.

The life of a reed
Every supplier has a different version of the life of the reed. Some say it lasts over 6 weeks while, a few others claim it lasts for a few weeks, say less than 4. However, it is important for you to know the life of your reed, and how long it will last, before you make the decision. On an average, a good quality reed from an excellent brand and by a good supplier will last for around 4-6 weeks.

However, to extend the life of the reed, you need to take care of it properly. You should make sure you wash your hands and the mouth before you play the instrument. Make sure you clean the oboe and the reed with a clean and soft cloth regularly. Getting it serviced by the supplier is essential.

The final call on the supplier is made on the basis of the Oboe insurance. The choice of the insurance and the cover offered will help you decide on the supplier. You need to make sure the supplier offers a good deal and excellent cover with the insurance for the instrument.

Covered calls, also called buy-writes, give you an approach to diminish unpredictability in your portfolio and additionally give you a superior premise in your exchanges – however you’ll have to put the work in to make sense of how to choose the best stocks and the best alternatives for this technique.

New to Covered calls? This blog will get you up and running in less than 15 minutes.

What are Covered calls?

Covered calls are a merging of a stock and alternative position.

Covered calls are a net alternative offering position. This implies you are expecting some hazard in return for the premium accessible in the choices advertise. This “danger” is that your long stock will be detracted from you by the call choice purchaser – this is known as task chance.

Covered calls are endless risk, constrained reward. The endless risk is like owning stock, and the restricted reward originates from the short call premium and the value-based increases you may have. In return for restricting your risk, you have preferable chances of gain fullness over a basic long stock play.

A covered call brings down your risk. You are not helpless before the market cost of the stock. You effectively claim it. A practiced contract is not any more a major risk. You’ll need to offer your stock, however you know the cost at which you’d need to offer. A practiced shrouded call as a rule brings about a slight benefit, particularly in the event that you offer it at a strike value that you will offer the stock. You know about the most extreme benefit early, however.

It’s an options technique for a dealer who feels marginally bullish about the basic stock’s position. You figure the stock cost will increment, however just marginally. You don’t hope to make excessively on the stock. Keeping in mind the end goal to expand your benefits, you compose or offer the covered call. You influence the premium in addition to any benefits you to make if the call is doled out. Keep in mind however, the call can terminate useless. On the off chance that it does, you leave with the purchaser’s premium.

A covered call won’t make you rich, however it might give somewhat more wage than straight stock possession would give.

Structure of a Covered Call

The most ideal way for new dealers to perceive Covered calls is visually.
Keep in mind, in the options exchange you can both get long options and short options- each with its own particular one of a kind hazard trademark.

We should begin off with 100 offers of stock- – this is quite simple to speak to. At the point when a stock goes up you profit, and when it goes down you lose cash. This is likewise on a 100:1 premise – if a stock goes up $1, you make $100. In alternatives terms, this gives us a delta of 100.

The following part is the short call alternative that covers the stock. Since this is an alternative, it can get a little dubious on the grounds that the delta (directional presentation) can change. In any case, at alternatives lapse it has clear hazard parameters.

At termination, if the short alternative is out of the cash, it will have a delta of 0. On the off chance that the choice is in the cash, it will have act quite recently like 100 offers of short stock.

The cool thing about mixes in the alternatives showcase is that they have total hazard – that implies you simply need to include them together. This is what a covered call looks like aggregate.

At lapse, if the stock is under the strike value, the position will carry on like stock. Furthermore, if the stock is over the strike value, the position will have no directional presentation.

Yet, hold up – one moment! This is the thing that the hazard looks like at lapse. In any case, shouldn’t something be said about when there is time cleared out? Well… that time implies more risk, and that implies more outward incentive in the short option. So your genuine hazard when you put on an exchange.

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Accounting can be classified into two basic types – financial accounting and managerial accounting. The information that is public to stockholders, customers, creditors, and regulatory bodies is termed as financial accounting. On the other hand, the information of a company that is not made public, such as salaries, profits, and the cost of goods produced fall under the category of managerial accounting. This type of accounting helps make financial decisions about the company which helps propel a business forward in good health.

Bookkeeping on the other hand includes maintaining records of expenditures, on a daily, weekly, monthly and annual basis. This helps keeping a track on the day to day workings of a company and does not create a mess of things when one sits for accounting or when time comes of the auditing of a company.

All in all, a continuous monitoring as well as refining of business should be done by a company on a regular basis. This not only ensures the proper running of the company but also keeps your company’s clients and customers in good faith. They know that you are responsible and would retain maintaining business transactions with your company. It is a matter of trust and that should not be treated lightly.

Xcel Accounting does just that. It is a Dubai based company consisting of Chartered Accountants who strive to provide some of the best accounting services Dubai has ever seen via the company. The various services provided by the company include – part time CFO, accounting outsourcing, internal audits, business plans, business valuation, due diligence, software selection and implementation, accounting workshops and accountant mentoring, etc. The accounting workshops organised by Xcel Accounting are in fact very popular. The company believes that it is important for the clients to have a proper know-how of the various nitty-gritties of accounting, VAT, etc. It is because of this that Xcel Accounting ranks among the best accounting firms in Dubai, in fact it ranks among the best accounting firms in UAE as a whole.

In order to ensure good accounting and bookkeeping the guidelines are –

  • First of all, the daily business transactions need to be entered in the business ledger which would maintain a permanent financial history of the business. This ledger very accurately marks the daily transactions keeping a log of it and this helps evade any discrepancies later creeping up during billing or payment. This also helps maintain an audit trail which can be later interrogated by auditors. All you have to do in that situation is to present your company ledger as a closing argument.
  • The customers and the clients should be handed in regular invoices whose copy should be maintained by the company to avoid any future controversy.
  • A regular cash-flow report should be maintained.
  • The bookkeeper or the accountant should provide a regular financial review of the company. This is needed for the unimpeded running of the company.
  • “Statements” should be sent out to the clients or customers.

You always wondered what NBFC is all about? Even if you did know about NBFC, you could not grasp how the company helps real estate in India? We are going to present some simple facts that will make you understand real estate NBFC a little better.

Huge changes were bought into effect by the end of 2016. The changes that were implemented were through demonetization, Good Service Tax and the Real Estate Act. This caused an upheaval among the construction sector and hampered the rampant progress in India’s real estate sector.

To help the real estate sector get out of the fragile situation, the government encouraged affordable housing schemes to prevent real estate further loses. Unfortunately, it did not do much good to the already fledging sector. Surveys have shown that sales have been sluggish when it comes to purchasing the property.

Through the midst of such crisis, big lenders are looking at means where they can lower the risks. This causes more problems to the real estate sector as there are not many who would like to loan huge amounts as they did when the markets were on an upswing.

This is where non-banking finance companies (NBFCs) have played a major role. They constantly strive to provide and lend loans to such real estate projects to keep the projects afloat. Recent reports have suggested is that out of the 4 lakh crores lend to real estate sector, 1.8 lakh crore is been lend by banks whereas the remaining amount has been lend by the NBFC. This happens to be a cause for concern as India’s real estate is sitting on close to 0.5 million of unsold property.

NBFCs have claimed that more money is been pumped in to ensure that the sale of unsold property takes place. It should be noted that the amount of efforts that are been taken by NBFC is commendable. They have been instrumental in improving the economy of the real estate sector.

The NBFC in India has grown leaps and bounds because even though the economy is sluggish. In terms of profitability, NBFCs are faring much better than the banking sector. This is primarily because of lower costs. This plays a huge factor in lending them loans at a cheaper interest rate. This has caused a huge amount of potential lenders opting for loans from NBFC.

To facilitate a developing country like India, NBFC constantly ensures to lend money to infrastructures that help contribute the growth of Indian economy. The money given is large sums and their profits are only yielded over a period. Banks refrain from lending to such constructions as they tend to be risky. For this reason, NBFC carries more popularity as they are ready to bear the risk.

Summing up the advantages of NBFC, it aids the economy in the following way; It assists in the improvement of financial markets. It is a great way of mobilizing resources as it converts savings into investments. The important factor is that it also generates employment. Finally, it helps to break the poverty circle by serving as a great instrument to help the government.

“What do I do if a tree falls on my car?” is a common question that policyholders seek answer to while buying motor insurance online. For those policyholders who have their got their car insured for the first time, there is no reason to panic if they have their vehicle covered under a comprehensive car insurance policy. Under the comprehensive insurance cover, it is the liability of the insurance company to pay for the repairs and maintenance of the car damaged due to natural disasters.

car insurance policy

When policyholders compare car insurance in India, they have the option to either pay for third-party liability cover only or opt for comprehensive cover too after paying an added amount of premium. It is necessary that policyholders are aware of the extent of coverage they can avail in addition to the percentage of deductibles involved. While some amount of deductible is mandatory, the rest is voluntary. The percentage or amount of voluntary deductible chosen while purchasing the comprehensive coverage decides the amount that the insured will have to pay for damages from their pockets, while the rest is paid by the insurance company.

This can be explained with the help of an example. Assuming a policyholder who has paid for a comprehensive insurance coverage had agreed to pay deductible to the extent of 20 percent. If his or her car gets damaged by a tree that had fallen on it, this means that a part of the expenses towards repair extending to 20 percent would have to borne by the policyholder, the rest being paid by the insurance company. So, if the damage amount to Rs 60,000, the policyholder will have to shell out from his or her pocket Rs 12,000. The rest of the amount, i.e., Rs. 48,000 will be paid by the insurance company.

How Has Technology Propelled The Insurance Sector Forward?

Advancements in technology have already made it possible to compare car insurance online in India before buying. Whether it is purchasing a new insurance policy or renewing an old one, it is always advisable to compare for premium rates and the benefits offered. This is important as people while paying for car insurance are more inclined to look at the premium rates rather than focusing on the credibility of the insurance company or the features of the insurance product offered by the company.

As more people are getting knowledgeable about the significance of buying the right insurance policy, insurance companies are also competing among themselves to offer the best product at the least possible rates. As opposed to car salespersons pitching only about the features of the car to their prospective buyers, the future will see them pitching the various insurance policies that would be in sync with the car they wish to buy. Prospective car buyers will compare insurance to gauge the total amount they would have to shell out for their favourite vehicle. With the income bar rising across various states, more people are hitting the internet to know premium rates of motor insurance online in addition to the features unique to each insurance policy. Innovations in electronic payment methods have now made renewal of policies easier. This means that now insurance (new or renewal of old) can now be paid for at the click of a button.

Despite the damning statistics and the inherent uncertainty in the outcomes of trading, traders continue to take the risk and invest their money with the hopes of getting a return. Experienced traders and share tips have highlighted several ways in which traders lose money. From this information, we have selected top ways traders fail that can assist you to avoid making the same mistakes.

Trading to learn
Most of the traders who have sustained losses from their trading experience acknowledge that they started trading without receiving any formal training from a professional. Armed with only the basic information about markets, some people invest and start trading hoping, ignorantly, that luck will be on their side. Instead of learning how to trade, these investors begin trading to learn how the markets work

Risk management
Understanding the risk level of a trade and the risk category that investments are placed is the first step to avoiding losing money when trading. Conducting a risk assessment of the investment opportunities in the market enables a trader to determine the leverage that they hold against the investment and whether it is worth placing a wager using the leverage.

Money management
Lack of money management skills, traders hold on their stakes for either too long or release them too fast. Therefore, despite making a profit from a transaction, the trader ends up losing money.

At last, traders loses money because they lack a trading strategy or if they have one, they deviate from the plan. For example, a trader without a diversified portfolio is likely to lose money because of lack of risk spreading and lack of intraday tips for day trade. Consequently, trading without a limit order or a take-profit order exposes the trader’s positions to further risk of losing money with the hopes of a ‘miracle’ at any time.

The Small Business Administration (SBA) loans works towards helping small businesses grow and thrive. The SBA does not lend money to small business owners directly; it creates relationships between responsible businesses and trusted lenders. It then lays down the necessary structures and guidelines for both the loan vendors and the business owners to make sure they pay back the loans, while at the same time ensuring a win-win situation. Some of the laid down guidelines and incentives include but are not limited to:

The lenders are assured that the borrowers meet a certain criteria that reduce the chances of default. The business owners on the other hand gain benefits such as little or no collateral, small-down payments as well as competitive rates and fees.

However, despite all these structures and guidelines in play, SBA loan defaults still occur. Some of the economic trends associated with 1 in 6 of SBA loan defaults in the past ten years, between 2006 and 2015 are:

The Great Depression

As a result of the Great Depression, individuals lost their source of livelihoods, homes and standards of living. This means that people could no longer afford the houses they lived in and potential buyers were no longer in a position to invest in real estate. The trickle-down effect led to a strain in the whole real estate sector leading to one of the highest SBA loan forgiveness at the time.

According to research, The Mortgage and non-mortgage loan brokers, residential property managers, the offices of the real estate brokers and multi-family housing construction businesses had the first, second, the highest SBA loan default rate within a period of ten years. This led to the National Association of realtors, which represents professionals in commercial and housing real estate to lose a 26% membership from the peak experienced in 2006. This is on top of the post-housing downturn low faced in 2012.

Online Shopping and services

The consumer’s trend moving towards online shopping led to a 42.7% SBA default rate from 2006 to 2015 for videotape and disk rental businesses. Travel agencies and book stores were also not spared as they experienced a 39.4% and 31.4% respectively.

Brick and Mortar stores struggle

As consumers turned away from visiting some stores, over 221 businesses were affected with department stores, women’s and men’s clothing stores and shoes stores suffering a 40.6%,33.6%,32.9% and 31.6% SBA default rates respectively.

Health Providers positive trends

On the contrary despite, the high rates of SBA default rates in most businesses between the year 2006 and 2015, health care providers were said to be doing great in their businesses. Loans to dentists, optometrists, physician offices, pharmacies and healthcare providers had recorded default rates as low as 5.2%, 4.9%, 5.2%, 5.3% and 8.8% respectively. Health care providers can therefore be said to be the businesses that have received minimal SBA loan forgiveness within the ten year period.