Posts in Category: Financial Services

How Credit Insurance Policy can Facilitate Business Growth

Trade credit insurance is an instrumental tool in the protection of businesses from both political and commercial risks, which are usually beyond the control of business owners. It enhances the quality of the company’s bottom line and enables it to enjoy immense profits with minimal risks of unforeseen clients’ bankruptcy. Additionally, credit insurance boosts the level of confidence of entrepreneurs, helps them in the extension of credit to new customers, and enhances access to funding at affordable rates. Insurance brokers such as Credit Insurance Company, NTC offer political and export risk policy to protect businesses that specialize in exporting products overseas.

Basics of credit insurance

A credit insurance policy with a reputable insurance company is a diverse partnership that safeguards firms against unexpected risks of bad debts. Once an entrepreneur acquires the policy, the insurance company will conduct a thorough analysis of the creditworthiness of insurable clients and allocate them a fixed credit limit, which is the exact amount it will cover in case the client does not pay.

Buyers monitoring

The insurance firm monitors the customers all through the policy duration and guarantees covered buyers’ constant creditworthiness. Entrepreneurs are allowed to access the database of the insurance business and learn about competitors and other companies that handle the same line of products like them.

Flexibility

The policy is a bit flexible since businesses are allowed to extend credit limits and cover additional buyers.  However, the service provider must assess the risk associated with new coverage before approving the extension request. In case the request is rejected, the provider is legally bound to offer a detailed explanation on the rejection reason.

Goal oriented

The primary purpose of a credit insurance policy is to cover few risks that occur and assist policyholders in avoiding foreseeable losses. The indemnification feature of the policy works when the unforeseeable loss occurs. Insurance brokers like Credit Insurance Company, NTC offer exceptional claim services by liaising with insurers to ensure business owners get their compensation on time.

      Vital benefits

Apart from giving business owners a peace of mind, credit insurance has numerous advantages.

Disastrous loss protection

A credit insurance policy protects receivables, which are usually the most valuable assets that are exposed to a significant amount of risks.

Access to funding

The policy offers increased accesses to working capital at competitive prices. The increased borrowing creates a platform for the business to grow and eliminate chances of cash flow crunches. The policy enables entrepreneurs to maximize the availability of their working capital based on the receivables they pledge to their lenders. Insurance agents for example Credit Insurance Company, NTC develop an efficient debtor control plan on behalf of businesses to help them in avoiding a disturbed cash flow.

Safe platform for sales expansion

A credit insurance policy is an effective strategy for establishing a successful business empire at a minimal risk of failure. Companies experience a fast-paced growth without worrying about unforeseeable risks of failure.

Innovative credit solutions

Credit insurance offers entrepreneurs comprehensive market intelligence on the creditworthiness of their buyers. A risk management plan is implemented to reduce credit losses. For more details on trade credit insurance, click on this link: http://www.nichetc.com.au/

Learn About How to Get a Hard Money Loan Approval

Hard money loans are lent to borrowers to finance real estate investment opportunities or other collateral backed loans. Therefore, private investors as opposed to banks fund hard money loans. This loan might be the best option if a borrower does not have high enough credit to secure a bank loan. Therefore, if you opt for a hard money loan, it is advisable to consider reliable experts such as experts for Evoque Lending California has to offer to take you through the basics of this private loan.

In addition, it is important to note that hard money loan is used as a bridge loan between construction financing and long-term loans. On the same note, certified experts for hard money lending such as Evoque Lending California has today advise that, the Federal Reserve or the office of thrift supervision does not regulate hard moneylenders. Therefore, the application process of hard money loan can be different from that of a bank loan. For you to get a hard money loan approval, you need to learn about these processes.

Find a reliable hard moneylender

If you are looking for hard money loan after a rejection from the bank, you might be tempted to consider the first lender you find to help you get the loan as fast as possible. However, experts advise that you should resist this temptation. Instead, take your time and do your research properly on hard moneylenders in your locality. This is because some lenders can be genuinely interested to in helping you finance your project, but others can be little more than loan sharks. Therefore, you need to be very careful when looking for hard moneylender to ensure that you do not deal with a swindle.

As a lender you consider some questions and he should provide a satisfactory answer to them. Ask him if he is in good stand with his investors and you should also ask to know if the lender has any pending lawsuit from his investors from bad loans or foreclosed properties. In addition, you need to know what types of projects this lender has financed in the past. Therefore, if your preferred lender answers all your questions appropriately, then you can trust him to take you through hard money loan application process.

Consider the pros and cons of hard money loan

In this case, you should learn the basics of hard money loan and decide whether you can apply for it or not. For instance, experts suggest that hard money loan is designed to be a short-term investment that can last for twelve months. Therefore, you should figure out if you would be able to repay this loan in that period. Another thing you should know is that hard money loans have higher interest rate than long-term loans. Their interest rate may range from 12% to 20%. Therefore, you need to learn about the entire basics of this private loan and agree to it terms and conditions, thereafter you can proceed with the application process.

These are just but a few basics on how to get a hard money loan approval. For more information on reliable experts for hard money loan, check Evoque Lending California has today, visit http://evoquelending.com/

Understanding Audit Protection

The accounting industry has grown in the past 5 years in Australia showing annual growth of 2.1% since 2011. This is because random audits by the ATO are something normal. Businesses should expect them and be prepared for the same. While they may not find anything wrong with the preparation or need for adjustment to be implemented by a firm, there will be costs that will be incurred during the entire process that can sometimes run up to thousands of dollars. An audit insurance becomes the basic shield that you will need to protect yourself against the effect of the costs involved as a result of the audit. An audit insurance company will usually charge a small fee as the time and costs for the entire audit to take places will be taken care of.

What is Audit Protection Insurance

In case you are wondering what this is, audit protection insurance is a policy that an audit insurance company offers businesses, superannuation funds that are self-managed or to an individual. They are usually designed to cover the expenses that a business or individual is likely to incur as a result of an audit or review conducted in their premises. It’s the Australian tax office together with other state and government bodies that are in charge of conducting these reviews and domestications. They are usually conducted to ensure that there is compliance with legislative and tax requirements. Some of the things that the audit may cover include superannuation guarantees, goods and service tax, workers compensation among many others.

Choosing a Company

When it comes to audit protection, the services of one insurance company policy always tend to be different from the next. Therefore, before you choose to buy a policy from an insurance company, ensure that you are armed with the relevant information first before proceeding. Also ensure that you understand the different terms and conditions before agreeing to anything since it is typical to find an insurance company that will refuse to pay in the event that they have a condition they put forward, and it was not met. This is very important to make certain that your interest comes first and is well protected. Additionally, depending on the individual or business that is applying the cover may differ. Therefore, ensure the cover that you go with is one that is suitable for you.

What Are Covered

An audit insurance company normally offers their policy to individuals and businesses to cover the bits of undertaking the random audits, revisions as well as investigations so that compliance with the relevant laws is established. The audit and reviews that are usually covered will include fringe benefits tax, payroll tax, goods and service tax, stamp duty among other legislative and tax requirements. Other costs like bookkeeping fees, legal fees and the advisor such as the surveyor’s fees are also included in other covers. Depending on the audits that will take and the type of business that are involved, professional fee may differ.

That said, there are many benefits that come with having insurance audit covers for a business and with the increased random audits across Australia, you ought to be protected.