The Reality Of Payday Loans
Pay day loans or pay day advances were a thing of the past. Most people who worked in the formal sector had not even used this service let alone heard it. It was the hard work that they put in that counted and so they counted on promotions.
Fast forward to the second decade of the 21st century and they are now a trend. They have become a service that is widely used by at least 25% of persons in the formal sector. Why you ask? This is because the cost of living has risen and profits among companies have fallen.
Since the economic crunch of 2008, we have seen a rise in the costs of food, mortgage, telephone bills, fuel, health services and in the education sector. Pay day advances from lenders such as http://www.mypaydaylender.co.uk are widely applied for by households especially the breadwinners who have to complete paying the bills; be it electricity or the mortgage. But is there really a motivating factor as to why people are obliged to request a pay day advance?
Well I could ask, why can’t someone endure those few couple of days doing side hustles to boost their incomes? Because a pay day loan is only a benefit in the short run but when you look at the long run, it is actually a loss.
Short term gain
First you have to deal with the interest that you have to pay. So that means you actually pay more for that advance cash. This mostly happens during the festive season. People mostly look to get the advances early so that they can enjoy and revel during this season which calls for celebrating. But then January comes along and then its back to square one and reality hits you. Its mid-January and you are practically broke.
So what am I trying to say here?
Taking a pay loan advance is not a necessity. You can start by planning on how to evade this by budgeting your monthly income right from the word go. I must say this will take some lean spending at some point in the month, cutting on electricity usage and all that. In the long run, you will have escaped some very dire consequences.
‘m not saying that it’s wrong to do that or a taboo for that matter but we must be wise in our spending. But this is just my opinion and that according to me is the reality behind payday loans. I think that this would be the first step to actually evading the temptation of taking a pay day advance.
5 tips to manage cashflow and improve business costs
Whether planning a start-up or reviewing financial management and operation of an existing business, there are usually two questions at the forefront of the mind: how do I manage cashflow best? And how do I keep business costs low?
To list down every recommendation, trick, piece of advice, process and consideration to address these fundamental areas of business success would require an extensive textbook… so this article offers five quick tips to establish control over your cashflow and business costs, and the impact they have on your profit, survival and growth:
1. Invoice smarter
Slow-paying customers can present a huge issue for small businesses in particular – especially when those businesses are experiencing the same issues as your business and waiting for their own cash to come in. It can be a tricky cycle.
Ensure your invoicing process is streamlined, invoices are promptly mailed out and the invoice content is clear and easy to read. Simple omissions such as failure to include purchase order numbers and payment terms can bring on setbacks and delays.
Assess whether your business is able to go one step beyond and make the payment process easier and faster for your customers. Electronic payment systems, or discounts offered for rapid payment of invoices, can speed up transactions and may also improve processing times on your side.
Just because a price has been quoted, or you have been paying the same rate for years and years, doesn’t mean that is what you have to pay.
Work hard to negotiate with your suppliers since many are willing to discuss pricing and rates (they want to retain your business after all!)
Every little bit might just help – whether addressing standard utility overheads such as energy and phone bills, or working to pay less for the office stationery – it could have a significant impact on your bottom line.
3. Get close to your accountant
Many businesses, particularly smaller ones, look to liaise with their accountant only at a time of need.
A solid accountant can provide invaluable advice and serve as a useful resource, sharing knowledge, insight and recommendation all year round.
Services such as cost management, profit management, investment, funding consultancy and general check-ups can help you keep things on track and optimise the health of your balance sheet.
Build a regular relationship and dialogue with your accountant to drive smarter business decisions, higher profits, reduced taxes and improved cash flow
4. Explore alternative credit and funding options
A wide range of alternative funding solutions are available in the market – non-bank lending is now at its highest in five years as more and more SMEs recognise the benefit of short-term, affordable cash flow solutions.
Beyond the company credit card, hire purchase agreements, leasing arrangements and overdrafts – cash flow products such as crowd-funding and invoice finance could provide much-needed cash and capital to help you manage seasonal demand, or the challenging peaks and troughs of delayed customer payments. If you have followed the previous tip and have a good accountant, they will be full of advice and recommendation on the best path for you.
Overdrafts, premium funding, lease facilities and cashflow funding products such as factoring can all be excellent tools to help match cash supply with outlays. These arrangements take time to set up, so you need to be prepared in advance.
5. Plan, plan, plan – and stick to it
Heavily monitor your balance sheet and your cash flow budget.
The continual review and action planning for the credit you arrange, the bills you pay, how you pay those bills, and when your payments are coming in are all critical for the survival of the business.
It is important to revise your cash flow budget periodically which an accountant can assist with and deliver as an automated, streamlined process. Simple exercises such as payment prioritisation, strategic management of credit terms, weekly cash flow projections and payment collections all form the foundations of the dynamic accounting function of a business.
A solid system in place such as this will also allow you to plan for lean times and schedule purchases and allocation of capital when you need it most.
Have you ever thought about owning your own franchise? Hundreds of thousands of business owners around the United States own franchises, and for good reason. Depending on the franchise, the owner can stand to pocket a significant amount of money on a monthly and yearly basis. Keep reading for a few reasons why you should take the next step and invest in a quality franchise soon.
Financing – It’s pretty simple – lenders are more inclined to loan you money to finance a franchise because the franchise is already established, and has a proven track record of making money for those who invest in one. Your lender will be more likely to shell out cash because they see franchisees as lower risks when it comes to defaulting on payments.
Support – One of the biggest reasons why franchise owners love owning a franchise is because they get the feeling that they are never alone. When you own a franchise, you are basically part of a large family that is constantly growing. If you ever have a question, all you have to do is pick up the phone and call the franchisor to find out the answer.
Marketing and Advertising – Your franchisor will take care of a lot of the advertising and marketing initiatives necessary to help maintain the success of the franchise. If you have ever watched TV, you know that it seems like every other commercial is for McDonald’s or Subway. Even if these commercials get old, they’re doing their job whether you like it or not.
Multiple Locations – When you are part of a franchise system, you will always have more room to grow and open other locations. For instance, men and women that own a home care franchise often times open up other senior care franchises in towns adjacent to the one that they started in, allowing them to have a large share of the local market.
Buying a franchise with a popular franchisor can mean big money for you in the future. Lenders are also more inclined to dish out money to franchise owners, so get that financing and start paving a path to your success.