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Finance

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Many small businesses reach a point where they would benefit from some extra capital to get them through growing pains more effectively, from staffing and HR hurdles to inventory and cash flow limitations. Deciding which option is the smartest financial move for you can be challenging and requires careful consideration. Should you borrow money that you must pay back with interest? Should you look to secure funding from small business investors via equity financing that will, at least temporarily, have a small stake in your company? Choosing Between Debt Financing and Small Business Investors Let’s take a quick look at the main differences between debt and equity financing. Debt financing can be a simple arrangement where you can quickly receive the money you need, and you will be responsible for paying the principal of the loan with interest by an agreed upon date. Whether your business fails or succeeds, you…

A hot real estate market can require you to secure your new home before your old one closes. For many homeowners in this situation, the down payment of their dream home is often more than the cash they have on hand. For these unique situations, private lenders California offer bridge loans. Explore the pros and cons of bridge loans and find out if you should use one for your current real estate situation. The Purpose of a Bridge Loan Many homes in California require a significant down payment. The hottest real estate goes fast, so as a buyer you can’t always wait until your current home closes before closing on your new home. Access the cash you need for a quick closing to beat out the competition and seize the real estate of your dreams. A bridge loan is backed by your current real estate. It comes with a few…

There’s no way to sugarcoat this; Americans have become far too comfortable living debt free. Granted, some of life’s necessities require taking loans, but do you really need to charge that coffee bean grinder? The rise of easy credit has created an instant gratification mindset within which people are seldom willing to save until they can pay for something outright. As a consequence, they often wind up paying far more when interest charges factored into the overall price. Advantages of Living Debt Free Life Thus, we say a penny paid is a penny earned. It’s time for a new perspective on debt. Let’s take a look at some of the advantages of living debt-free. It’s Less Expensive As we mentioned above, buying things on credit can make them cost more. If you carried a balance on a credit card from month to month during 2018, you paid an average of…

When we are young, we tend to become careless when it comes to money. There are many things that we want to buy even those that we cannot really afford. Expenses become higher than our actual earnings and as a result, debt starts to pile up. Then comes the sleepless nights thinking about how to eliminate debt to get all the things in balance. Well, this is certainly not the best feeling in the world and certainly not the most ideal situation to be in. As early as possible, we should manage debts before it gets out of control. Tips to Manage and Eliminate Debt Here are some tips to help eliminate debts and eventually improve your finances. Determine the cause of debts First of all, you need to find out what is the main cause of you drowning in debts. Are you spending too much on branded clothes, shoes…

Car finance is one of the biggest causes of debt for the average Briton. You cannot have money for other expenses or savings when you are trapped under a mountain of debt. But if your financial circumstances allow, you can pay off your car loan early. Not only does this free up money for other things, but it improves your credit score as well. 5 Ways to Pay Off Your Car Loan Early If you no longer want to be buried in debt, it’s time to figure out how to repay your loan – and fast. Here are five ways to repay off your loan early. 1. Pay Half Your Monthly Payment Every Two Weeks Paying off your car loan bi-weekly is a great way to pay off the loan fast. While you’re required to make payments on a monthly basis. You can talk to your auto lender to let…

One of the biggest debts people have today is their student loans. Many people are looking for ways to reduce their debt. The good news is that there are ways to do it. However, these solutions are not for everyone. Student Loans Debt Relief Programs There are qualifications and requirements for each program. You need to find out if you are qualified for one. To get you started, here are ways to manage student loan. 1. Forgiveness Programs The good news is there are forgiveness plans that can cancel student debt. The bad news is that it’s not easy to meet the requirements of these programs. The person gains qualification after rendering service for a certain number of years in a specified career field that includes teaching and the military. Most programs are limited to federal loans. If you have a private loan, you might want to look for other…

An EIN or Employer Identification Number is used by the internal revenue services to identify your business for tax purposes. It is a nine-digit number set up like 12-3456789. So, it is similar to a social security number but can be distinguished. Employer Identification Number EIN numbers are required for any and all entities for the sole purpose of taxes and being able to confirm that you are a credible business. To obtain an employer identification number, you can visit the website IRS-EIN-Tax-ID. You would need to use and obtain an EIN number if you: Recently started or own a business Hired or will hire employees Opened a bank account for business purposes that require a tax identification number Changed the ownership of your business Have or created a trust, pension plan, corporation, partnership, or LLC Are an executor of an estate that operates a business after the owner’s death…