Finance Management of Small Business

Managing finances in a business is among the few important things that need to be considered when starting and carrying out a business. It is all about efficiently and effectively utilizing available funds in order to achieve the objectives of the business. Financial management is aimed at planning, observing, organizing and managing the monetary resources of a business.

Small business finance management strategies

Small business finance management is mostly concerned with procurement, allocation and control of financial resources so that a regular and adequate supply of funds is maintained to run a business. Once the funds are in hand, they should be utilized in maximum possible ways at low costs and should be invested intelligently in safe ventures. A few tips that can help you efficiently use your funds while running a small business are:

In the initial years of managing a small business, you need to estimate how much money you need for a decent living and pull out that money from your business income. Now invest the remaining money back into your business for its growth.

Early wins in the form of high profits may urge you to spend it on leisure holidaying or improve your housing status. You need to be firm and defend yourself against such ideas and wait till your business gets a little more established.

The main expense in a business is covering the payroll of your staff. It is advisable not to hire new employees unless you absolutely need them. When things get busy and a lot of work pressure builds up, you may get tempted to hire more people. Try and stretch the existing staff members to their full potential to get through the workload and hire only if necessary.

Try and save up money on applying for loans and procuring inventory. Taking up loans from banks is a common practice in the business world, but it carries an extra cost of its own in the form of interest you pay while returning. Reducing this extra cost can help you add up and save more money in the long run. This can be done by dividing the total money you need as loan and borrowing it in parts over a period of time. This reduces the overall amount of interest you pay back to the bank. Borrowing the entire amount at once will result in you paying interest for the money you are not going to use till later time.

Keep the money separate for paying the taxes and avoid mixing it with other funds. Paying taxes is of utmost importance and since that money is meant to be given away, it should not be kept or used for other purposes.

Bargain the terms of the agreement with the outside contractors and vendors like delivery services, electrician etc., such that you get a grace period in paying your bills. This grace period can be used to manage your funds and prioritize your other bills more efficiently.

Tips to Get Started As a Private Money Lender

When one is fortunate enough to have capital or money to lend to the people who need it, they best thing that they can do it is to offer it those who have the need and the ideas to use the capital in an innovative and productive manner. This would embark the lender on a journey of private money lending. There is a great demand in the borrowers market for those who may be able to offer private money lending and those who have the capital at their disposal for the use of those who are brimming with ideas and innovations, but are not able to put them into action due to the lack of funds and there are times when these ideas do not get due recognition and encouragement from banks or money lending institutions. In such cases, private money lenders and borrowers are able to find their win-win situation.

While private money lending may be a lucrative alternative, it is essential to make sure that a few points are checked before embarking on the journey to money lending. One of the most important points is to ensure that the trade of private lending is understood in a proper fashion. If the lenders start giving out funds with the hope for getting returns, without having the knowledge of safe lending, the entire exercise may lead them to bad debts and losses. A thorough research on the type of lending and the knowledge of gauging the right candidates for lending is a must. It is also beneficial to a great extent to know other like-minded people. With research about the kind of people who get into private lending it becomes simpler to understand their way of thinking and it also helps in understanding how the field can be tackled with expertise. Finally it is important to know the details and the strong points of investments. Not only does it help in investing in the right idea, it also ensures in knowing how effective the borrowers idea of investment may be.

When Finance companies or Financial Solutions companies are asked for an opinion, they would suggest that the private lending should be done with the help of an expert medium. This implies that when a known and knowledgeable team is involved in the field of finance and lending, the private lender and company may be able to make secure and profitable investments.

If you think you are cut out for the profitable prospects of private money lending and have the resources to match your aspirations, make sure you use the safe embrace of Syndicate Finance to lend your capital.

What To Do If Your Wallet Is Lost Or Stolen: A Step-By-Step Guide

Imagine getting home on Friday night, after a stressful week. You’ve been looking forward to this moment all day. All you want to do is just throw some sweatpants on and just relax on the couch. You turn on the TV, grab some drinks from the fridge and get your favorite pair of sweats. You take off your pants, go to empty your pockets, and you heart sinks…
Your wallet. It’s gone.

If this has ever happened to you, you know the sense of fear that accompanies this horrible event. Your entire life is contained in your wallet. There’s credit cards, debit cards, ID, money, insurance card and membership cards. You now could be the victim of identity theft, with repercussions for years.

Here’s a step-by-step guide of what to do should the worst happen.

Before your wallet is lost or stolen: lighten your wallet’s load and scan/photocopy everything inside.

This one tip alone can save you a ton of stress. If you’re like most people, you only use one debit or credit card most of the time. Too many people carry tons of cards “just in case”. Also, take your social security card out of your wallet, along with any passwords, addresses and so on. All of these are like pure gold to an identity thief.

Take everything that you have in your wallet and scan it into a computer. I mean everything – license, health insurance cards, even gift cards to your favorite restaurant. Update it as needed, and make sure that the document is password protected. This is incredibly important because you’ll know exactly what has gone missing and all the numbers to call.

You’ve just noticed your wallet is gone. Don’t panic and retrace your steps.

One of our readers told us a story about a date night with her husband. She went into their favorite restaurant, purse in tow, and went straight to the bar. After a few drinks, she reached into her purse to pay the tab. She realized her wallet was missing. Did she lose it? Did someone steal it?

If you find yourself in a similar situation, remain calm. Make sure you look in all the places it could be, and be reasonably certain that there’s no chance of it just popping up. If you’ve been to stores or restaurants, give them a call and report that you’ve lost your wallet. Yours truly (the author) actually lost his wallet in a clothing store one afternoon. I got home, realized it was gone and called the retailer. Thankfully, they had it and I rushed back in to retrieve it.

You can’t find your wallet. You’re sure that it’s gone for good. Here’s what to do:

STEP NUMBER ONE: CONTACT WHOEVER ISSUED YOUR CREDIT/DEBIT CARDS

Some people will tell you to cancel the cards immediately, but this isn’t a good idea, since it could adversely affect your credit score. What you should do is report your card as lost or stolen. Every card issuer has procedures in place that will suspend those numbers to keep your money safe. You’ll call their number and hear something like, “To report a lost or stolen card, press 2.” In fact, here are the numbers of the four major card companies:

Discover: 1-800-347-2683

American Express: 1-800-528-4800

Visa: 1-800-847-2911

MasterCard: 1-800-627-8372

Make sure that you get brand new cards, with new account numbers. Ask for the same credit limits and the same (or lower) interest rate, with any cashback/miles/rewards transferred to the new cards. Plus, under the Fair Credit Billing Act, you’ll face no liability for a thief’s shopping spree if you report the card as lost/stolen before the charges occur. If someone charges your account before your alert your card issuer, you’ll be on the hook for up to $50.

If you use any of those cards for automatic payments, inform the appropriate companies immediately. This is very popular with student loan repayments – you just link up your student loan to a debit card and put it on autopilot. But if your card is suspended, the payment will not go through and your debt will remain unpaid. This could affect your credit score.

Remember to act fast. You’ll be glad you did, because victims of debit card fraud only pay up to $50 as long as they report the card lost or stolen within the first two business days of realizing the card’s disappearance. It’s most likely that your bank won’t hold you liable for anything as long as you let them know immediately. If wait longer than two days, your liability limit shoots to $500, and if you wait longer than sixty days, you’ll lose any and all money stolen from your accounts. I don’t know why you’d ever wait sixty days, though…
Here are some bank numbers:

Wells Fargo: 1-800-869-3557

Citibank: 1-800-950-5114

Bank of America: 1-800-432-1000

TD Bank: 1-888-751-9000

Chase: 1-800-935-9935

STEP NUMBER TWO: FILE A POLICE REPORT

If your wallet has been stolen, it’s a good idea to let the police know. It’s also a crucial step towards protecting your identity. Make sure you get a copy of the police report! If the theft results in identity theft, you can file a complaint with the Federal Trade Commission, fill out an identity theft affidavit form and attach the police report. This goes a long way in protecting yourself, as it will become evidence in your favor in the case of fraud or identity theft. What you DON’T want to do is get asked, “Well, why didn’t you report the loss?” Not a good look!

STEP NUMBER THREE: SET UP FRAUD ALERTS

This is an important step, because without it, thieves could still open new lines of credit in your name. You need to set up a fraud alert with one of the three major credit reporting agencies: Experian, Equifax, or TransUnion. Once you set up an alert with one, the law requires that agency to report your loss to the others and an alert will be set on all three of your credit reports for free (for an initial 90 days).

A fraud alert lets lenders and creditors know that they must verify a person’s identity before extending any new credit. How do they verify your identity? They’ll usually call you, via the number you put on file with the fraud alert. This makes it impossible for a thief to get more credit and run up huge bills in your good name. Here are the numbers you need:

Experian: 1-888-397-3742

Equifax: 1-800-525-6285

TransUnion: 1-800-680-7289

BONUS STEP: Pull your credit report and look for anything fishy. Some identity thieves won’t do anything with your information while it’s “hot”. That’s why you need to make sure to monitor your credit regularly.

STEP FOUR: GO TO THE DMV TO REPORT YOUR MISSING/STOLEN LICENSE

Everyone keeps their driver’s license in their wallet. It’s also one of the most important tools for an identity thief. Get someone to drive you to the DMV and report your loss. They’ll process an application and reissue you a new license, which will cost a few dollars in fees. The DMV will probably ask you to file a police report as well.

STEP FIVE: IF YOUR SOCIAL SECURITY CARD IS GONE…

If an identity thief gets your social security number, he’s hit the jackpot. You should know your social security number by heart and have NO REASON to carry it with you. However, if you just so happened to have it in there, you need to report it IMMEDIATELY. This is absolutely critical, because you won’t ever get a new number, like with credit cards.

Make sure you call the IRS Identity Protection Unit at 1-800-908-4490. Then, file the loss with the Federal Trade Commission by calling 1-877-ID-THEFT.

Because a thief could easily open accounts in your name with your SSN, I strongly advise you to consider a credit freeze. This makes sure nobody can apply for credit under your name and social security number. These are not free (around $10 or so per credit reporting agency) but it is a vital safeguard.

BONUS: DID YOUR WALLET CONTAIN KEYS? IF SO, CHANGE YOUR LOCKS.

You’d be amazed at how many people neglect this step. It’s not that hard for someone to rob your house this way. All they have to do is make a copy of the key and jot down the address from your license. Someone could even return your wallet to the police, but he or she would still have your key.

Lost and stolen wallets can cause massive damage to a person’s life if the information falls into the wrong hands. With this information, you’ll be prepared, and you can turn what could be a devastating disaster into a minor headache.