Risks and Costs of Bridge Financing We Must Not Forget

Risks and Costs of Bridge Financing We Must Not Forget

Bridging loans are perfect options for short-term cash needs. But there are a few uncertainties we must be aware of before applying for a bridge loan.

 

Timescale

Whether we are expecting to sell a property or refinancing onto a cheaper loan, we must always keep in mind the timescales. A bridge loan is set for a specific period of up to twelve months. Often, we go for the shortest repayment period to pay less in interest or receive the optimal net loan. There are usually no charges for early repayment.

 

If the loan term comes to an end and we haven’t fulfilled our payments, we will be in default. Such a lapse is penalized financially. Failure to repay within the time stated on the contract results in a penalty and extra interest. Delays are widespread in property sales. It is also true in refinancing. Such delays can cause issues, so and we must be cautious.

 

Exit Strategy

Another risk of defaulting payment is property repossession by the lender. On top of that, we risk damaging our credit history. To reduce the risks, we need a very sound exit strategy. This is a plan showing when and how we are going to repay the bridging finance. Suppose we take the refinance route. It is good to submit a practical application. If we demonstrate our confidence, most lenders do not hesitate to give out the money. The best way to demonstrate confidence is by having a viable and secure exit strategy. Otherwise, they reject loan applications without a clear repayment plan. After all, who wants to deal with risky borrowers?

 

Since we are avoiding high interest, we shouldn’t borrow for longer terms than necessary. In some instances, the lender charges renewal fees when the agreed term winds up. A good exit strategy must have a back-up option and should be ascertained. An example of the exit strategy is the sale of a property. To figure out the realistic price we can expect from the sale proceed, we need to do a lot of homework. This includes researching similar properties in the neighborhood that have been sold and for how much. A valuation is necessary here. It is worth considering how much a property would yield on a quick sale.

 

Costs

Because of the short-term nature and risks involved, bridging loan rates are relatively higher than other loans. As stated above, we must prove our ability to pay the loan. Interest is only charged until repayment. Besides, there are extra fees we must take into considerations:

 

  • Administration fee: Chargeable on anyone applying bridge financing
  • Legal costs: A legal solicitor comes in to set up the facility. Their charges depend on the lender
  • Facility and arrangement fee: May cost up to 2% of the loan amount and included in the loan facility
  • Valuation: A formal valuation report is necessary security for the sale of a property. The valuation fee goes to the surveyor and usually is the only upfront charge. The property must be assessed before issuance of a bridge loan
  • Broker fees:  brokers can arrange a bridging loan, and so they charge a fee
  • Exit fee: Some lenders ask for an exit fee to redeem the loan

A wise borrower looks into the risks and costs of bridge financing. It pays to seek expert financial advice to understand the pros and cons of taking a bridging loan. A financial advisor is the best professional to take us step by step through the loan application process. Their guidance is still viable when repaying ad using the bridge loan. Let us gather as many details as possible to make informed decisions.

 

Posted by David Presutti in Money and Shares
4 Situations Where an Accountant is Required

4 Situations Where an Accountant is Required

In the main, two different types of accountants exist – those who are involved in financial records and those that work out costings for a manufacturer. Also, accountants will audit financial records to ensure financial standards are being met. So, we shall explore from all angles the role of the accountant and just where they are useful in business.

 

Sole Trader or Small Business

An accountant is an ally to a sole trader because the chances are that they will not have the financial skills needed, but more likely, skills in other areas such as selling. They may, for instance, have started up the business because they have specific knowledge about the product that it is predominantly what they now sell or deal in. Financial skills can then either be learned, involving expense and time, or an accountant can be hired to take care of the accounts, the VAT, and matters involving taxation so that returns are submitted on time to avoid any fines.

Accountants will show businesses how to layout their accounts in a standardized way and then they can be easily finalized at the year-end by the accountant who can work out what tax is owed. If a business is over the VAT threshold for turnover (£85,000 at the time of writing) then things are a little more involved day-to-day. It might be worth hiring a book-keeper who will record transactions daily or weekly, deal with invoices, and complete VAT returns.

 

Limited and Public Limited Companies

Generally, larger companies will employ in-house accountants and financial teams to take care of their invoicing, bank reconciliations, VAT, end-of-year returns, and tax affairs. It is invaluable to have an accountant on board who knows about how best to reduce a company’s tax bill by knowing about the different government schemes and tax incentives.

 

Factory

Manufacturing businesses will employ cost accountants. They will calculate the breakeven figures in respect of the production. This will take into account fixed costs, which do not change however much you produce, and work out how many items need to be made before the costs of production make it viable. This kind of accounting is about the day to day profitability. It is what works out the gross profit as opposed to the net. These firms will, of course, still need to employ or call on the services of accountants at the year-end to sort out their finances. Generally, this same accountant will not do both and their production accountant will be specialized in cost accounting only. It is, after all, a full-time job in itself if a factory is to be run efficiently.

 

Auditing

Accountants are also used for auditing accounts. This is required by law in the case of, for example, a public limited company, and is also required when it comes to regulating charities. Firms will often want to do it periodically themselves to make sure that accounting procedures are being correctly followed and nothing dishonest is taking place with the company’s money. Financial roles are responsible ones and positions of trust. It is for this reason that financial work is paid at a higher rate than general office work. It is partly the skills required to do it and also the increased responsibility of managing the money.

For those interested in auditing, audit regulation is concerned with five elements. These are setting standards, formal adoption, implementing in practice, monitoring the compliance, and then enforcing. Auditors, to ensure this takes place, will take a sample of transactions and make sure that the money received ultimately ends up in the bank of the business concerned. The accounts should be laid out in either computerized or manual ledger form so that an auditor can easily follow these transactions. Clarity is important to quickly eliminate suspicion. Financial records should be held securely and copies made as a back-up, as authorities will generally require them to be kept for at least 5 years after the tax submission deadline.

 

So, at least four situations where an accountant will prove useful whether it involves the financial or manufacturing side. Auditing is something that accountants also get involved in to ensure companies are complying with financial standards and that nothing irregular is taking place.

Posted by David Presutti in Think Business
Steps to Manage Your Money Wisely

Steps to Manage Your Money Wisely

Don’t waste your time spending money on things that won’t do any good in your life – an example of bad money management. Did you know that almost half of the American citizens don’t know how to properly manage their cents? Studies have claimed that some Americans, many of whom are not in the fully-developed states, don’t have adequate money management. If you think you belong in this group, we have got you covered. In this article, we are going to share with you our tried-and-tested methods in managing money. So, if you want to know more about it, then keep reading and enjoy!

Create a Budget

The first thing you should do is make your budget if you still don’t have one. You may be asking if this is necessary. Then let us answer that question with another question – Are umbrellas essential when raining and sunny? You should trust us. The first step to a good money management habit is to create a budget first.

We cannot deny that making and following a budget is quite challenging. But these challenges are only present at first. In the end, these challenges will pay off. Budgeting is an important aspect to see full transparency and clarity of our financial situation.

This is the first step you can take to save for the future and pay off all your debt. We can save for our retirement and purchase luxurious things we didn’t have when we were young with budgeting. This step will be the basis of your financial life. Not only that, but it also gives you peace of mind knowing that you know how much you are saving and spending.

Understand Your Income

Try to ask someone you don’t know about the money they make per month. Most of them will deny their income, even though they know internally. This is a concept that talks about the difference between expenses and income. Most people know how much they earn monthly but are unaware of the amount they spend every month.

Nonetheless, this step’s main idea is to find the difference between the total income and expenses of a person per month. A negative result means that your monthly payments are more than your income. To prevent this from happening, you can try to reduce your monthly expenses gradually.

Remove or Slash Unnecessary Expenses

Are you one of those Starbucks lovers? If you tend to purchase Venti Caffe Latte regularly, you are spending around 4 US Dollars from your income. Multiply 4 US Dollars to 365 days; you will be spending approximately 1,400 US Dollars per year by just buying your favorite Starbucks product. To avoid overspending, why not try creating your drink at home? This would save you tons of money in the future.

Take note that you need to learn how to properly manage your money by keeping close attention to how much you spend every day.

Review and Understand Your Credit Report

Your credit card is necessary because they are. When you have a credit card, you usually receive a credit report with a number between 150 to 900. It serves as your grade or score after considering your past and current loans, reported debts, mortgages, and credit cards.

This number helps to know your creditworthiness. This can also affect your capability to borrow money in the future. Reviewing and understanding your credit card report is a must. This helps you ensure that it contains all valid information about you and determines an error.

Use a Financing App or Tool

We cannot deny that most of our finances are complicated. But let us break it down into a way more straightforward concept to understand. But how?

The first step to do this is to remove yourself from a room with a Casio calculator or abacus. Please take note that we are living in a technology-oriented world. This means that we can find free and new tools that can help us to manage our money while making simpler computational and budgeting works. You can find many tools on the internet, such as Quicken. This allows you to control, manage, and consolidate your income in a single place.

 

Posted by David Presutti in Think Business, 0 comments
Different Strategies To Make Money Online

Different Strategies To Make Money Online

The number of individuals who use the power of high-speed internet to make some money is continuously increasing and it’s why having a great provider such as Satelite Internet Now is so important. The decision to earn an online living means that you are opening the door of your bank account for more profits. Social media does not only give you entertainment, but it also helps you to earn money or start a new chapter of your working life. We will provide you with some techniques to help you to make money online. It would be great if you possess several skills and talents. This post is for everyone who wants to use a little bit of their time to learn how money-making online works. No matter what your goal is, the following are the different ways to produce some bucks online.

Get Remote Work

One of the effects of the development of the internet is the freedom to travel the world quickly and to work from home. Aside from that, it also allows individuals to have a more flexible time and lifestyle. For instance, you are a freelance writer and cater to the needs of clients from other countries with different time zones, thanks to technological innovations. Stable and strong internet is the only thing we need to send our work. Even though it is great we can all work remotely with the use of computers, there is still that issue about working too much in front of screens, that is why it is important to take frequent breaks and have a check-in with your eyes. You may want to look over here and see if blue light reflecting glasses would work in this instance.

Also, most employers prefer remote working. It does reduce not only office expenses but also the cost of wages. You may also consider visiting FlexJobs to find a reliable small full-time job ideal for your core niche.

Become a Freelancer

If you possess marketable skills, then the first thing you can do to make a living online is to work as a freelancer. Social media offers several websites you can use to provide your service. If you don’t know what type of website you may want to visit, you may check out Upwork or Fiverr.

One of the examples of a service you can offer as a freelancer is writing. To build your presence online, you only need to put in a little time and effort. If you haven’t yet a portfolio, you may start your writing jobs by visiting middleman agencies or freelance marketplaces.

Sell Professional Services

If you know how to work as a specialist, you can use your skills to earn a living. You can sell professional services by browsing JustAnswer, LivePerson, and other well-known Question and Answer pages. According to JustAnswer, their workers can earn more than a thousand US Dollars a month.

But these professionals are well-equipped, skilled, and knowledgeable about a wide array of niches. For instance, JustAnswer houses professional veterinarians, mechanics, doctors, accountants, attorneys, and a lot more.

Teach English Online

Being a teacher is a favorite profession in this digital world. There are lots of online agencies that can help you start teaching the English language online. The good thing about these agencies is that most of them do not require formal requirements. All you need is to be a fluent English speaker.

Aside from that, English teachers are in high demand. A well-established agency will provide you with lesson plans containing the outline that you need to teach to your students. They are paying an hourly rate of around 30 US Dollars and upwards. To get hired, you should show your teaching skills in an ideal environment. Also, you must follow their dress code.

Even though English is not your first language, you can still earn money through teaching the language you know online. Unfortunately, it has a low demand and only a few infrastructures offer this service. Luckily, you can expect to receive high hourly compensation.

Proofread People’s Writing

If you are a very detailed individual, you can save some bucks by proofreading other’s works. This job allows you to accommodate different types of clients. You may cater to individuals who want to make their résumé look stunning and professionally crafted. The good thing about proofreading is that you can do it in the comfort of your home.

If you are interested in applying for this work, you may visit Upwork and other similar freelance marketplaces. This enables you to post a deal and cater to a wide array of clients. Through this, you can earn a living even in just a short period.

Posted by David Presutti in Self-Employment, 0 comments
5 Things to Know to Become Self-Employed

5 Things to Know to Become Self-Employed

Becoming self-employed is a big decision, as to choose such a way of living will mean giving up a regular income from an employer and then being responsible for your own earnings. If you have a family who rely on you financially, you will want to believe that you can make enough to support them to at least the standard that you did before. In favour of being self-employed, your earning potential is now only limited to your ability to grow the business. Of course, it doesn’t all have to be done yourself. There are teams of people that can help, such as sales professionals who can shed some insight into effective sales techniques to make sure you make enough revenue to run a successful business. They might suggest using a subscription revenue model to try and get customers to re-purchase every month, allowing the business to easily predict their revenue. Perhaps that’s worth doing. Sales professionals could always help you to grow the business. Additionally, this article will look at some of the things that you ought to know to become self-employed in the UK.

Type of Entity

Many business people will start off as sole traders, or partnerships if sharing the knowledge and expertise of running the business with one or two other persons. A decision that is important is whether, in the case of a small business, to make it a limited company. The advantage of this is in being able to protect personal assets, such as a house that is being lived in by a business owner and their family. The disadvantage is in the time and expense to set up and register a new company with Companies House and in the documents required to continue to run it. Specific documentation is required, including a certificate of incorporation, a memorandum of association, articles of association, and share certificates. In addition, statutory registers need to be kept up to date, including a register of members, a directors’ register, a register of directors’ home addresses, secretaries’ registers, and charges’ registers. If the business has not become an incorporation yet but they are planning to, they may want to click here now to see how this can be done before registering with Companies House.

Generally, limited companies fair better than non-incorporated businesses in terms of the tax that they pay, because rather than paying income tax, they pay Corporation Tax on their profits, which at the time of writing was 19 percent. In addition, they can claim a wide range of tax-deductible costs and allowances that are set against profits.

Staffing

The decision about staff may come later in the life of a business if you are to first establish the business on your own and then grow it to a size that means staff is required to help run it. Conversely, you may straight away require additional knowledge and support to help you run the business from its infancy. If you are employing staff in the UK, a relatively new law requires that employers automatically enroll workers in a workplace pension scheme when they are at least 22 years of age, but below pension age, and earn at least 10,000 per year.

To pay staff, you will also need to find out about HM Custom and Excise’s PAYE (Pay As You Earn) scheme, which was set up to collect the required tax and national insurance from employees on behalf of the government. Alternatively, if you can afford it, you could enlist the services of a bookkeeper.

VAT

Being VAT (Value Added Tax) registered has its advantages and disadvantages. It costs money administering the scheme on behalf of the government, but on the other hand, it allows you to claim back the VAT on your purchases. You will, however, have no choice over whether to VAT register if your turnover, in the UK, exceeds the 85,000 threshold permitted. This applies to 12-month periods ending 2020/21.

The Financial Help Available for Businesses

Banks and similar financial institutions will offer financial assistance to small and larger businesses. To be given a start-up loan, a good business plan is required. This is like a household budget and should include all the anticipated income and expenses that the business is likely to receive and incur during a trading year. It should factor in the fixed costs required for start-up and the projected variable costs incurred in running the business. It is also usually necessary to show projected profits for the next 5 years. Long-term, banks can also offer business loans and overdraft facilities to help with cash flow problems and seasonal variations.

Market Research

To establish demand for your product or service it is vital that, before starting your business venture, that you have conducted your own thorough market research. If not your own, that the research is from a reliable secondary source.

In conclusion, there is much to think of to start-up and run a business of your own. Hopefully, this article has given you some idea as to what is involved.

Posted by David Presutti in Self-Employment, 0 comments
The Different Types of Shares Offered by Companies

The Different Types of Shares Offered by Companies

As companies grow, they are often no longer funded by just their founders, but instead, shareholders. A shareholder is defined as an individual or institution who own more than one share of the capital of a private or public corporation. Shareholders are in effect investors in the company but considered members. We shall explore the different types of shares that are available, some more common than others.

 

Ordinary Shares

Ordinary Shares receive a dividend and carry voting rights which entitle the holder to one vote per share. Often companies will create more than one class of this type of share. For example, have “A” Ordinary Shares” and “B” Ordinary Shares. The advantage of this is that it gives a company the flexibility to pay differing dividends to different shareholders. Investors can use sites like https://kryptoszene.de/aktien-kaufen/lufthansa-aktie/ to find new stocks and determine if they’re worth an investment.

 

Deferred Ordinary Shares

In the case of a deferred ordinary share, the company will only pay a dividend to these classes of shareholders once all the other shares have received minimum dividends. In the event of liquidation, they will be last to receive anything.

 

Non-Voting Ordinary Shares

Voting rights on shares can be restricted. It is also possible that non-voting ordinary shares carry no voting rights at all. This may exclude the shareholder from attending the AGM (Annual General Meeting).

 

Redeemable Shares

With redeemable shares, the company has the option of buying the shares back in the future. There can also be options for the shareholder to sell the shares back to the company rather than on the open market, although this is not common. More often than not the redeemable price of the share will be the same as the issue price but can be set differently.

 

Preference Shares

As their name suggests, preference shares entitle holders to a fixed dividend payment that takes priority over that which is paid to an ordinary shareholder. The advantage of this is in cases of liquidation when an order of creditors is determined. The preference shareholder will be ahead of the ordinary shareholder in this situation in terms of receiving any arrears of dividends and their share capital back.

 

Cumulative Preference Shares

With the cumulative element of this type of share, any dividends that cannot be paid to cumulative preference shareholders in lean times, can be made up for at a future date when the company is experiencing higher profitability.

 

Redeemable Preference Shares

This type of share combines the features of redeemable and preference shares. Those holding them receive the benefits of preferential rights to dividends whether the shares are cumulative or non-cumulative. The company can redeem the shares at pre-agreed terms in the future if they wish.

 

Many companies will start off, for simplicity sake, by just offering one type of share, which will be the ordinary share. It provides the shareholder with equal voting rights and a dividend. Where companies do offer different types of shares, there is nothing to stop a shareholder holding different classes of share at the same time. This allows them to benefit from the different rights on offer, with respect to voting and entitlement to future dividends.

So, this gives an idea on the main types of shares that you are likely to come across with a company, whether you are in education wanting to learn about the different types or a private individual or business looking to invest. In terms of investment, there are several options open to you in terms of knowing which companies to invest in. Financial institutions, advisers, and share dealers, know the market well and there are various websites which specialise in financial advice. The Financial Times newspaper is an excellent source for finding out about what is going on with companies and the economy, apart from providing lists of the current share prices and their movements.

Posted by David Presutti in Money and Shares, 0 comments
Key Ethical Practices to Keep Any Business Competitive

Key Ethical Practices to Keep Any Business Competitive

I always try to ensure that my business is competitive by taking a brutal analysis of my ethical behavior and striving to set an excellent example for everyone around me. In industry, ethical behavior refers to conduct that applies fairness and honesty to colleagues and clients. Treating everyone ethically helps our businesses by building customer loyalty, attracting and retaining talented employees as well as avoiding legal problems. The following are some key ethical practices I follow that I have learned over time are crucial to the competitiveness of a business.

Building Customer Loyalty

Treating customers unfairly, for example, by overcharging them is unethical. If clients are unjustly treated, they will not become repeat customers, and they may end up spreading the word to their peers, which leads to losses in our businesses. Having a strong and loyal customer base is one of the critical successes I have seen in companies. I find that serving and working with an existing customer is more economical than acquiring a new one. With this in mind, some businesses may want to improve their customer loyalty. To do this, businesses could find out here about the services that Epsilon offers. That company could help business owners to build relationships with customers, ensuring that they stay loyal to the business.

Improving Company Reputation

Having a good company reputation helps create a positive image of any business. Reputable businesses can expand their client base through word of mouth referrals more than adverts put on any platform. Although, incorporating the best online reputation management software into the running of your business will do no harm to your chances of being able to build a positive reputation. In fact, it will only enhance it. However, having a reputation for unethical dealings in our companies may hurt any chances the company might have of obtaining and retaining new customers. This is especially so in this era of social media and networking where dissatisfied clients are quick to spread negative information about any bad experience they might have had when dealing with our companies.

Retention of Good Employees

Talented employees at any level in our businesses and organization want to be fairly compensated for their dedication to the work they are doing. I try to reward them by advancing them in their careers through job promotions depending on the quality of their work and dedication and not at all by favoritism. Our employees want to be a part of a company whose management tells them the truth about how the business is faring in case there are instances where there will be layoffs and reorganizations. When we practice fairness in our organizations and deal with the employees reasonably, we will have a greater chance of retaining the talented ones. Further, I may also get help from ERP companies like SYTE Consult (sytecg.com/) for team building approaches which can improve employee engagement and the business output. Having a good quality employee engagement can create a positive work environment, hence helping the organization to retain its best members.

Avoiding Any Legal Problems

A few business and company owners tend to cut corners to maximize their profits. We may decide not to comply with the environmental regulations, labor laws, and might ignore workers’ safety or even use substandard raw materials while making products. When the law catches up with us, we may end up paying hefty penalties such as legal fees and being fined by government agencies. In the long run, this ends up impacting our business negatively and even more financially from a large number of fees and fines that will be charged.

One advantage that companies may enjoy when they observe the regulations put in place by government agencies is having a good image in the eyes of the law and the public. They also avoid financial losses associated with breaking these laws.

Conducive Work Environment

Employees also have a responsibility to be ethical from the moment they are interviewed. They should be honest about what they are and what they are not capable of and the level of their experience. When the employees are ethical, we, as the employers and their superiors in the organizations, will be assured that the team we work with can have a great and positive co-existence. We will also be able to trust them with the organization’s confidential information and business secrets.

Employees who are caught up in lies ruin their chances of being advanced by their supervisors and might end up getting fired. Some of our business might end up facing significant losses, for example, in some industries like restaurants and grocery stores where untrustworthy employees steal foodstuff or in finance departments where employees might steal money or misappropriate funds leading to massive losses in our businesses.

We always try to cultivate a culture of honesty and ethics among our employees. We have a simple but detailed code of conduct that we need our employees to read and commit to when we offer contracts. We also hold regular training programs to help our employees understand ethical behavior for their own good, the good of the business, and that of our clients.

These are practices I believe can contribute to the competitiveness of any business in all sectors of the economy.

Posted by David Presutti in Industries Talk, Money and Shares, Self-Employment, Think Business, 0 comments
3 Ways to Save Time in Business

3 Ways to Save Time in Business

In business, time is money. Clients are invoiced by solicitors for the time that is spent on a certain case, accountants will end up charging more where a set of accounts needs to be fully constructed from inside a used carrier bag, and the amount of time it takes to deliver parcels will determine how much a courier can make from each parcel. Let us consider how a range of businesses could save money in terms of the time a range of tasks they are completing are taking.

 

Videoconferencing

A great cost saver for a business is not only to hold less meetings but when they do, to hold them online. This saves the expenses that employees are paid in traveling to the meeting, if it is off-site, and the time it takes for them to travel there. They are on a business’s time when traveling between sites during the working day.

It may not be sensible to discuss complicated business plans by email or even in group chats, but over an internet connection that allows facial expressions, the occasional smile, nodding heads, and voice tones to be noted, it is surely possible, without everyone needing to be present at a physical meeting.

Current providers of videoconferencing include Avaya, BlueJeans, Cisco, Crestron, Google (Hangouts Meet), Enghouse (Vidyo), Gather (lotum), Intrado, Lifesize, Pexip, PGi, Poly, Zoom, Microsoft (VCaaS play with Skype / Teams), RingCentral, StarLeaf, Vonage, and 8×8. So, quite an extensive list to choose from.

Those using Skype, which is based on SIP and H.323 standards such as Polycom and Cisco, can seamlessly join Hangouts Meet via Pexip Infinity Platform.

Backgrounds can be chosen which are more attractive than might otherwise appear behind you. For example, a shelf of books verging on collapse need not be rectified until well into the future, while you continue to work from home when a computer-generated background can be opted for.

 

Group Emails and Chat

When communicating with staff, it can save time to set up groups when using emails and messaging. This will save time when you do not have to create another message for each member of staff to inform them of the same information several staff members need to know. It is well worth the time setting relevant groups up, even if now and again one of those people does not need to know that piece of non-confidential information.

 

Organized Systems

With digital systems, it has become much easier to order information in a presentable way. Individual computer files, for instance, can be grouped into meaningful folders. This, for example on the desktop of a computer, makes the files less daunting to look at when trying to work out which one contains the desired information.

Computer databases can store vast amounts of digital information in an organized way that is easily searchable by a few keywords. Typical inclusions in databases include almanacs, bibliographies, dictionaries, encyclopedias, guides, handbooks, internet resources, newspapers, periodicals, and yearbooks.

Some examples of popular business databases companies use include IBM DB2, Informix, Microsoft Access, Microsoft SQL Server, MySQL, Oracle, PostgreSQL, and Teradata.

For security, computer content can be protected by passwords and encryption.

 

So, just 3 of the ways in which businesses are, through using technology, saving time in business. A lot of time can be spent traveling when meetings can be held online. Information offline can be communicated by grouping several key staff members in the same conversation. Everything can be organized digitally as if it were a physical filing cabinet. Databases allow for a lot more information to be housed in a small space and to be accessible to vast numbers of people. We just await the app that can think for us.

 

Posted by David Presutti in Think Business, 0 comments
Reasons Why the Parcel Delivery Business Has Been Revolutionised

Reasons Why the Parcel Delivery Business Has Been Revolutionised

Technology has changed the way parcels have been delivered in the past and is set to change how they will be delivered in the future, furthermore according to websites like https://www.rmhbangor.org/4-kinds-of-businesses-that-are-flourishing/ the courier business is one of the main sectors that is flourishing nowadays. There is a lot of ways in which parcel delivery has changed over the years, and as we progress with technology, it looks like there is no chance of that slowing down for anyone. This also includes the new technology KIOSK locker stations that are in shopping centers and stores for people to access so they can pick up their parcels efficiently without giving their home address, which suits a lot of people. This article will explore why at every stage the parcel business has been revolutionized.

Vehicles

In terms of the word “van”, the first records of one transporting any goods dates to 1829, although a “caravan” is described with the same meaning dates as far back as the 1670s. In modern times, Mercedes-Benz are credited with inventing the first van vehicle. That is one that could take heavy loads, for which they recognized the need. Nowadays, these types of vehicles are more commonly known as a “Heavy Goods Vehicle”, with suitable hgv insurance needed to ensure that you’re driving legally, as well as having the relevant protection should you need it. This mode of transport has certainly paved the way for how quantities of parcels, which can often be large, are delivered, and therefore revolutionized parcel delivery in that respect.

Faster modes of transport, though, have not necessarily resulted in faster delivery, as a Victorian Christmas postcard appearing on an internet auction site can reveal that despite a Christmas card having been posted late on Christmas Eve, it still arrived on Christmas Day. It was not until 1960 in England, Wales, and Northern Ireland, and 1965 in Scotland, that the General Post Office stopped this Christmas Day delivery. Having said that, delivery is not necessarily about speed, more about when somebody wants something to be delivered, assuming it is not on Christmas Day.

The courier service was invented by Jim Cassey, who called his business Big Four Carrier. He was to start courier services in Seattle, USA, in 1907. This company, for which he borrowed $100 from a friend to start up, is today known as UPS. The courier services which have been set up in the UK since have been in direct competition with the Royal Mail, who have competed by extending, through Parcelforce, the various time frame and insurance options that they provide in relation to delivering parcels. Parcels weighing over 2kg in every case now need to go by Royal Mail’s Parcelforce service or an alternative courier. Founded in 1990, and based in the UK, Parcelforce are now a worldwide logistics and courier service. It has built-up a network of international partners to help it to deliver its parcels.

Sat Nav

To follow a postman’s route is to arrive somewhere in the shortest time possible. Technology has now made this possible, too, through satellite navigation systems which can be attached to vehicles or mobile phones. Sat Nav has become a courier’s ally in respect of delivering parcels. Just by knowing the postcode, drivers unfamiliar with an area can find their way to the remotest of locations, or thereabouts.

Research can reveal that, in the UK, there are almost 1.8 million postcodes in use, with each one covering an average of some 15 properties, but in some cases between 1 and 100 properties. These postcodes can be programmed into navigation systems to provide a map or vocal guidance that takes a user to within doors of their required destination. It is becoming harder to find oneself lost, whether a delivery driver or someone going on a long walk to improve their fitness.

Drones

Drones will now deliver parcels because Amazon Prime Air is set to run a service that will deliver packages of up to 5 pounds within 30 minutes using small drones. These delivery drones will use between 4 and 8 propellors and have rechargeable batteries to provide thrust. The packages can be attached underneath the drone’s body. The drones will be operated remotely, or autonomously, by operators who will potentially be overseeing multiple drones all at once. As this kind of service takes off, it will no doubt become a cheaper, as well as a more convenient option, for households and businesses to have their parcels delivered. A family will not have to, in theory, even be in, if the items can be dropped safely, and softly hopefully, within the confines of a secure walled garden.

So, with advancements in transport, navigation, and ariel possibilities, there has been much to revolutionize the parcel delivery business. The above 3 all provide reasons as to why the increased need for parcel delivery is being more than met by increasingly inventive ways.

Posted by David Presutti in Industries Talk, 0 comments
3 Forms of Financial Help for Businesses

3 Forms of Financial Help for Businesses

Start-up businesses will often receive a loan from a bank for premises, equipment, to buy stock or sundries, and to market or advertise their products or services. After this, there is ongoing help that is provided by financial institutions to help businesses survive financially for the first year and beyond. Money can be generated through turnover but then it needs to be collected in a timely manner so that the cash flow of a business is always maintained. When it isn’t collected, companies such as these california collections agencies or similar have to step in. It is the continuous cash flow that is used to generate more business. This is perhaps more so in businesses that sell products as opposed to provide services. More stock might need to be bought before the money from the old stock has been collected. In the service industry, staff may have been paid before the money for the services they have provided has been received. Either way, the same financial help may be required. For the purposes of his article, we shall assume that the financial institution is a bank providing the products but there are other outlets to bear in mind for finance, too.

Overdraft

On many personal accounts, overdrafts are often not publicized to account holders, so it is often possible to overdraw by a small amount before charges are applied. On business accounts, though, any overdrafts need to be arranged and can work out more costly than taking out a business loan. Therefore, overdrafts should only be considered in the short term as a means of managing cashflow.

Business Loans

A business loan, apart from helping a business through a difficult financial period, can provide a business with a fixed amount to fund a business project that will later see a return. Banks will run credit checks and require collateral. This can mean that even if you set up your business as a limited company to protect your house, your house can now be at stake to secure your loan. A bank will also be concerned at your ability to repay the loan. If the loan is over a certain amount it will generally have to be approved by the bank manager, who has more authority than the financial adviser.

Business Advisers

Many banks will also have special business sections that can advise businesses on financial products. It is now the case that these staff will have to take exams to have gained the required knowledge to sell the products. This kind of regulation can only be good for businesses seeking the best kind of financial help. For private individuals, investments are about making their money work for them, while in business it is about having enough available money to continue trading. It is not always as easy as it sounds as invariably some products are paid for later, on account, and those buying them do not always pay up on time. In certain industries, businesses will have to wait long periods until they are paid. This will be known by banks and so allowed for. It should still, however, be factored into business plans.

Research can reveal that industries that take the longest to get paid, waiting more than 100 days for their money, are those involved in automotive equipment rental and leasing, management of companies and enterprises, oil and gas extraction, and technical and trade schools. Down from this are Architectural, engineering, and related services, building contractors, civil engineering and construction, mining support activities, scientific research and development services, and outpatient care centers, all waiting over 60 days to be paid.

So, a few ways here in which businesses can receive financial assistance and advice to help run their businesses and become successful. On an additional note, there are other forms of help out there that can support these financial requests, for example, businesses implementing management software from websites such as https://www.prosymmetry.com/capabilities/adaptive-project-management/ can aid in being in control of financial projects that need this type of assistance. And there is specific software you can use that might help to inform your decision about whether you need to borrow at all. Things like scenario planning and analysis software can be very useful when it comes to finances, as you’ll be able to prepare for every possible situation you could think of!

Posted by David Presutti in Money and Shares, 0 comments