Private Debt Collection

private-debt-collectionDynamism which surrounds the modern economy set up is due, to the rising population in the work force,therefore the financial challenges is almost what top the list as one of the greatest problem among these individuals and different business entities.

Financial challenges can manifest in many different forms like, a situation where you unfortunately loss a job, and you end up trapped on how to pay your bills.What will you do?

This kind of situation will probably make you end up in debts or am I not right? If am wrong then I stand to be corrected. All I understand is that’s how the concept of debt can be analysis though am still open to other ways or concepts which leads us to what we call debt(position where one owes another something whose value can be measured)

Therefore in a debt situation, there can be involved one or more parties where at the end the deal the receiver of the debt must deliverer back what he borrowed according to their terms and conditions.And in a case where one go against the agreed rules of refund,then some legal procedures are recommended to be adhered.

Lets take as a sample a situation where by the time you borrowed from a company, with hope that if things go according to your plans,you will commit the agreement but unfortunately your plans failed.How will you fix things according to the agreement?

This example of you and the party is the best example since it is self explanation that the action will be taken against failing to fulfill the agreement. Now this what is called private debt collection process since you failed to deliver.

Debt collection is the legitimate business procedure measured when the affected parties failed to come into agreement.It the pursuing of what like we outlined above the individual owes the company and there are conventional process considered ethical if followed.

Some the most reliable ways to collect your money are as follows though there are still several options suggested by the corporate laws.

Making of calls;this is one of the most efficient ways since you get the opportunity to interact and directly mend your broken vows as much as it promotes the good rapport.

Individual/personal visits;remains the most vital effective among the suggested debt collection programs though it is limited to close geographical gaps between the parties involved.

Writing of email or letters as a way of reminder is best for the individuals or customers who agreed to pay but they fail to remember the deadline though it stills remains least effective.

Finally taking the matter to court though encouraged but as a last option among all the recommended options.It generally slow and time consuming in addition to that it terminates the customer relationship with the business hence it can easily dent the image of the company involved.

Though it all revolve around the one who lent and the one who borrowed,but the bottom line or the main aim of the debt collection procedures is to ensure that the two parties benefit.It prevents unnecessary conflicts between the parties that participated since it is amicably solved.To add on that the common beneficial factor that manifests is that it gives platform for the review or renewal of the agreements because through visiting or calls one gets to hear from one individual and probably take into consideration.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why You Should Pay Your Bills on Time

Pay Your Bills On TimeAccording to the latest study over eight million people missed repayments last year, and in doing so considerably reduced their chances of being accepted for cheap loans and credit cards. Just under half of the missed repayments were in fact credit card payments. If you miss a repayment or even make a late repayment it not only puts you at less risk of being able to raise finance but will also affect the rate you are offered if you are accepted.

The problem we are faced with in these uncertain times where credit is more restricted than previously, is the fact that all lenders will rely on a person’s credit score not only to decide if they want to lend to that person but also what rate they will charge, and also how much they are prepared to lend. Also when you bear in mind that any missed payments stay on our credit file for 6 years it is not only likely to affect you now but also for quite some time.

So how do you avoid getting into trouble in the first place?

If you have existing credit and have never missed any repayments, but feel apprehensive about your financial future for whatever reason. There are a number of steps that you can take to prevent this from happening.

First you should take of all your debts, including your payday loans. Then work to a strict budget: Write down your income and expenses to identify exactly how bad your situation currently is. Once you know exactly where you stand you should then look at what you are spending your income on each month to see of you can cut down on your expenditure. It is very important that you are very thorough when you do this and do not discard any potential savings no matter how small they may be. The more you can shave from your expenses the more you have to pay our bills.

Consider debt consolidation: consolidating all your expensive credit card and unsecured loan debt into a cheaper rate consolidation loan can save hundreds of pounds each month depending on the sum of all your debts. If you decide to opt for this route there are a number of things that you must do to ensure that you do not get yourself further into trouble. The first thing I would recommend is that you take the consolidation loan our for the shortest term possible where you can comfortably afford the repayments each month, and also have enough to put some money into a savings account for use as a rainy day fund. That way if you have an emergency issue that arises which needs money to resolve then you are not tempted to rely on your credit cards. Which leads us onto what is probably the most important necessity and that is to destroy your credit cards. Failing to do this will more often than not put you in a worse position than you started in if you were to max them out again.

So the important message is to make sure that you do not get yourself into the situation where you are missing any payments. Once you get into that spiral it is ever more difficult to get out of.

What is a Micro Loan and how does it help a Business Owner?

Micro loanMicro Loans, also known as small business loans are a funding initiative by Spring Singapore. It is ideal for business owners who are looking for additional working capital of up to $100,000 with a repayment period of up to 4 years, frequently used to fund small projects, small scale expansion plans, purchases of new equipment and curb with temporary or short-term cash flow issue.
The micro loan has become a popular choice when it comes to additional capital in the eyes of business owners due to its attractive interest rate in comparison to a traditional business loan. However, business owners still find it puzzling when informed of a rejection for their loan application, not knowing what exactly went wrong.


Qualifications for a Micro Loan

To qualify for a Micro Loan, your company must have at least 30% local shareholding to qualify, meaning to say there must be 1 Singaporean/Singapore PR holding at least 30% of shareholdings in the company.

Micro loan qualificationsThe business’s credit history records with the banks or financial institutions are important as well ensure higher chances in loan approval. The owner’s personal credit bureau ratings are vital too.

The business must also be a profitable one with financial records in either the form of a financial statement or the business’s 6 months bank statements.

Here are some of the documentations required for micro loan application:

  • National Identity Card (NRIC) or Passport

Proof of identification as the director and/or shareholder of the company

  • Latest 2 year Notice of Assessment (NOA)

Directors’ personal income taxes to prove earning ability and capacity to repay

  • Latest 6 months Corporate Bank Statements

It shows the transaction history of your company and whether your company has any existing commitments prior to your current application

  • Latest 2 years Financial Statement / Report

The documents usually include the Profit & Loss Statement and Balance Sheet of the company as well as other items such as details of trade payables and trade receivables.

  • Contracts

It would be good to support your application with ongoing or upcoming contracts that can prove that your business is active and has continuous income flow.

Besides the above mentioned criteria, there are still many other criteria for a micro loan approval and it varies across all banks and financial institutions. Approval is also subjected to approval based on the credit processing team of the financier and how much their risk appetite is.

Capitalize.com.sgCapitalize is a corporate loans specialist firm that helps Small Medium Enterprises (SMEs) and individuals to seek, source and obtain capital from across our established network of up to 30 banks, financial institutions, funding houses and alternative platforms. We are always committed to provide our clients with the most suitable loans according to their needs, from the lowest interest rates possible and at the quantum they require.

 

 

Top Dividend Paying Stocks Worth Investing In 2015

Top Dividend to Invest InThere are different types of dividend policies used to pay dividends to shareholders. These include; cash dividends, stock dividend, scrip dividend, property dividend and liquidating dividend. Depending on ones age and investment goals, shareholders differ on which type of policy to be used by the company when paying dividends. Some want cash dividends while others opt for stock dividend. Therefore, this leads to rise in the so-called bird-in-hand theory that states that; cash dividend is better compared to stock or property dividend because, with cash, you get immediate money but with property, shareholders wealth is maximized hence becoming a long term way of dividend payment. Hence, for investors, here are the top 3 dividend paying stocks.

  1. Fortis Inc. This is a company dealing in electric and gas utilities and is situated in Northern America. This company pays $0.34 per share as quarterly dividend or $1.36 per share annually, giving its stock a current yield of 3.45%. Moreover, for forty two consecutive years, the company’s dividend payment has increased making it the most reliable company to invest in.
  2. Whitecap Resource.This is a company located in Canada and deals in crude oil and natural gas. Its monthly dividend is $0.0625 per share or $0.725 per share annually, giving it its current yield of 5.05%. Although there were some speculations that the oil and gas producers would lower their dividends due to influence of low commodity prices, Whitecap Resource has stood out to be the best. In December 2014, it achieved its earnings, income and production hence its dividends are safe and secure.
  3. Canadian Western Bank. Basing on total assets, Canadian Western Bank is the tenth largest bank in Canada. Its quarterly dividend is $0.21 per share and $0.84 per share annually, giving it its current yield of 2.8%. Although it yield is lower compared to the other two companies, it is necessary to note that its dividend payment has been increased nine times since 2010. This is the most financially stable company worth investing.

In a nutshell of things, a serious investor should consider investing in at least one of these companies. Be guaranteed of delivered dividends to you as a shareholder.

What is a Dividend Investment?

What is a dividend investment?Dividend is a payment made by a corporation to its shareholder,it is usually the profit sharing to shareholders. When a corporation earns profits it can decide to re-invest it into the business usually referred to as retained earnings and pay a certain percentage as dividend to shareholders.

The decision making on the amount to be paid as dividends to the different stockholders and that to be re-invested back to business is usually made by the Board of directors.This can be explained further by an example;when a business earns $300 billion profit,the board may decide to pay around $150 billion as dividend and the remaining half of the earning is re-invested for expansion,launching a product or for debt reduction.

If a stock pays a $2 as dividend and there is a possibility you can buy shares for $20 each through a stock broker,the stock therefore is said to have a 10% dividend yield because it is the equivalent rate you are earning money it is the dividend divided by the stock price which gives 0.01 which is 10%. That means that if you were to invest $1,000,000 into dividend stocks with 10% dividend yields, you would get $10,000 as payment yearly.

Basics of dividend investment

#1.High yield price.

The value of investors is to identify a high dividend yield than the interest yield.

#2.High dividend coverage.

This is to identify the risk of the dividend,it shows the range the company earns its profits and the variety of business bringing in profits,also understanding if the cash come from one business that could be vulnerable.How much of the profits is paid as dividend which is the dividend payout ration.

Generally dividend investors don’t like to invest in companies that pay more than 60%of profits as dividends since it might mean there is no growth opportunities.

 

If you have anymore questions, please feel to ask in the comment section below.