Archive for the ‘Credit costs’ Category
If you are in any of these situations, you here are some ways through which you can get money immediately, legally, and almost without any effort:
Borrowing
The first alternative to get money quickly is to apply for a loan.
To do this, we could apply for a loan to a bank or financial institution, using the facilities that they now offer to extend credit, but this alternative is not recommended if you do not need the money real urgency, and if we’re not confident we can return the money on time.
An alternative to banks or financial institutions, is to borrow money from relatives or friends that we do not put so much pressure to return the money in time, we do not charge interest or at least the interest charge us a minimum.
Doing a garage sale
Another alternative to get money quickly is to make a garage sale, which is to sell items you do not use or that we had, taking as point of sale our front yard or garage.
To do this, we would review our entire house (especially the room we use as a warehouse), mark or would make a list of all the things that we not use or over and that we could sell, and then would pull the front yard or garage and would sell the weekend.
A tip about a garage sale is that we are not so greedy to set prices, but seek to sell quickly all these things that do not use, and get much needed cash.
Sell on Internet auction sites
An alternative to the garage sale is to sell things that do not use or that we over the Internet through auction sites such as eBay and MercadoLibre.
Just a matter of registering for free at any of these sites and ads through which we will offer our stuff, trying to design a good ad that includes images of quality, a clear description of the product, and clear information on price, ways payment and delivery methods.
Sell a personal asset
If we have some important personal assets or property, for example, some property, a car, or jewelry, there’s probably time to get rid of it and obtain the money we need.
To find a buyer, we could try to sell via Internet auction sites, put our ad on a page of ads on the Internet, or placing an ad in a local newspaper.
Accepting the request of the customer and give credit, may be a way to increase our sales and create or maintain a business relationship with that customer. However, accepting the credit can be significant problems of liquidity, or the risk that the client does not pay on the agreed date or even not get us to pay.
In the case of large companies, they have a credit and collections department that allows them to efficiently manage credit and collections thereof. But in the case of small companies or businesses, the decision to give credit to a customer is not something we can leave it to intuition, but is a decision that we should assess it.
Let’s look at some tips you should take before deciding to give credit to a customer:
- First must assess whether we are able to extend credit. If, for example, recently we have started our company and we are short of cash, may not be very convenient to sell even to credit.
- The second is to assess the customer who requests a loan, which includes evaluating your time to market, his business experience, credit history, your ability to pay, etc. Information can be accessed through government agencies, credit bureaus, suppliers of the customer, and the same customer.
- Is necessary to assess either the client, however, the depth of the assessment will depend on the confidence we have in the client and the amount of credit. For example, for a single sale of a few bucks, not worth spending so much time and money investigating the customer.
- If after making our assessment we are still not very convinced of the client’s ability to pay, we must bear in mind that there is always the possibility of requesting some kind of warranty.
- Once we agree to give credit to a customer, you must specify clearly the conditions of the loan and, if possible, you should sign a contract that also includes debt and deadlines, including penalties for late payments.
- We avoid possible credit sales, and if at some point we do not have enough liquidity to extend credit to accept, we must be frank and kindly notify the customer that the problem you ask us.
Finally, a council relates to the granting of credit is to have a program or software that allows us to store information and customer history, and includes detailed records of customer behavior to credit, for example, how were slow pay, how often fell behind in payments, etc.
So that we can better manage our credit and collections, and, above all, we have information that will help us better assess our clients when we subsequently requested a new loan.
Financial assets are typically short-term. A promissory note is a document that reflects the commitment to pay .Authority (which requires funding) for precise reverse fork) to the date of maturity. Therefore, a note is both a financing instrument for the issuer and investment for the holder. The notes may be issued by public authorities, credit institutions or companies, and are always short term. Investors can operate with the notes in three different ways:
* Subscription to the primary market in fixing the price, the discount and the expiration date of the note.
* Buying and selling in the secondary market for notes and posts encirculación. This mode of operation and the earlier they are called “to maturity”.
* Purchase and repurchase. Thus, the investor can invest their funds to the period that interests you. The notes are traded at auction and the price is discounted based on the contract and the time remaining to maturity.
Treasury Bills
Treasury bills with maturities of three to six months or a year are emitted into the sequent, usually fortnightly auctions. Treasury bills may be subject to double operations, which are two purchases, tied the opposite sign, one spot and one at the agreed time. In a double operation the buyer of a Treasury bill is obligated to resell the same person within a period and an agreed price. Therefore, the seller in a double operation is required to repurchase the agreed price and time. In this way you can invest, or borrow funds at very short notice. The lyrics tend to offer higher returns those promissory notes and that despite
That practice has not been withholding tax, financial institutions have to report to the Treasury a list of holders. In the notes on the other hand, in addition to not make the deduction has not been to communicate the list of investors who have enjoyed with fiscal opacity.
When talking about credit, all financial experts agree is that credit should remain intact more expensive in the coming months, so there are difficulties to obtain credit by linking users are now the highest price they would pay.
The price increase is due in part to restrictions on capital reserves that the European Central Bank to require banks operating in the European Union, to avoid future bailouts for banks but institutions will have to maintain higher capital reserves.
It is attached to the liquidity constraints that institutions themselves are the European body when they come into the loan market, which are defined restrictions that higher interest rates have a greater demand for low supply.
How can it be otherwise, the banks and not suffer from excess expenditure in the flesh, but you’ll be taken directly to their customers in the form of loans more expensive, higher interest rates and higher limits, for example, the increase was tied product.
In short, it now seems that we begin to see the light we have a tightening of credit, which is important for the economic development of our society, which slow down even more, our economy.