Why Your Business Should Consider Export Credit Insurance

Author: Hayley Sheean  //  Category: Financial Services

Most of the time business transactions go smoothly – the seller delivers the product to the buyer, the buyer pays the seller, and the seller uses the money to manufacture more products or grow the company. However, there are risks involved, especially when it comes to the export industry. Imagine sending your products to a foreign buyer who then defaults on payments. What if you needed that money desperately? Now, this is where export credit insurance comes in.

What is export credit insurance? It is a type of credit insurance that acts as a safety net for sellers when their buyers default on payments. Business transactions are risky, especially since they involve money changing hands. The risks double when the buyer and seller are from different parts of the world. Exporting a product or service takes a lot of time, money and effort, and since the transaction isn’t local, there’s a lot of waiting involved. It is always devastating on the part of the seller when the buyer suddenly can’t pay or refuses to pay for a number of reasons.

This is why it’s a must for a company to have export credit insurance, especially when a bulk of their revenue relies on international transactions. This is especially true for smaller businesses. It only takes one or two problematic buyers to stagnate a newer company. Even larger, more established companies had to go through budget cuts and restructuring due to problematic international deals. Export credit insurance lessens the risk, making it easier for companies to recover from bad deals. Click here for NicheTC

Accounts Receivables Safety Net

Export credit insurance acts as a safety net for your accounts receivables. In most international transactions, buyers give the seller a partial payment before the delivery and pays the balance once the product or service has been delivered or fulfilled. Rarely do you see an international transaction that’s purely payment first or product first simply because of the risk involved. In most cases, the seller has to wait for the buyer to receive the shipment before full payment can be made. The seller has to take care of the expenses involved in sending their products overseas with the intention of receiving money once delivery has been made.

When buyers default on payments, this hurts the company’s accounts receivable. And any money that flows into the company as revenue is used for something. For example, the company might be planning to buy new equipment with the money they will receive, or use the money to produce more items for sale. When the buyer defaults, the money that will go to growing and continuing the business disappears into thin air. With export credit insurance, you at least get enough to keep your company afloat and continue offering your products and services to other customers.

Safety From Bad Debts

Let’s say your company receives a large order from a foreign buyer. However, you do not have enough resources to fulfill the order. So you borrow money from the bank to manufacture the needed products and facilitate its export overseas. Now logically, some of the profit you will receive from this transaction will go into paying for your loan. If the buyer defaults on the payments, you may not have enough funds to pay for your loan. Export credit insurance acts as a safety net from bad debt. In fact, the mere fact that your company has export credit insurance acts as a seal of trust for most financial institutions. Lenders are more lenient and generous with attractive rates when a company has export credit insurance.

Yes, it’s true that when it comes to business, you have to take risks. But remember, each risk can eventually lead to your company’s demise. And export deals always involve a lot of resources and money. Safeguard your company’s future by investing in good export credit insurance. For more details just visit http://www.nichetc.com.au/

Obtaining Financial Relief via Debt Consolidation

Author: Hayley Sheean  //  Category: Financial Services

Consolidating loans which are outstanding into a personal loan can prove to be a brilliant option for consumers struggling to overcome debt. A lot of them only begin to think about taking this action when their credit report reveals some default or they begin receiving calls from collection agencies. Store accounts, small loans and credit cards normally levy high rates of interest. As such, they can lead to an out-of-control debt-situation rather easily, which makes it important understanding what is debt consolidation in the first place.

Importance of Undertaking Debt Consolidation

Appropriating debt consolidation facilities, before the situation runs out of control is a commendable idea to take. This move enables indebted individuals to attain more manageable payments out of loans which require them to make high-interest instalments. Someone can apply to have a larger loan that has a low-cost rate of interest and utilise the funds to offset all outstanding debt. This could be in form of credit cards, store cards as well as small loans. Making use of a loan for paying off outstanding accounts provides a reliable path to financial freedom.

Avoiding Bankruptcy by Consolidating Loans

Knowing what is debt consolidation and appropriating that information to your advantage involves getting to evaluate any debts you have if considering taking a new loan. You can attain this goal by determining how much amount of cash you owe on each debt in particular and the charges of interest on all these accounts. Certain debts can carry interest rates reaching up to 25 percent. Debts having such high rates of interest can get consolidated through unsecured loans. Such loans offer much lower rates of interest that allows the debtor some sense of relief due to their lower monthly instalments. The move can enable you to cancel a bankruptcy.

Benefits of Debt Consolidation

Maintaining good credit score is critical for anyone as it can lead to dramatic effects on someone’s life. Financiers make use of credit scores to help them decide on whether to approve or decline applications for loans. Having a bad credit score can occasion high rates of interest on approved loans for an individual. Alternatively, it could result into difficult experiences when attempting to have your loan approved.

There are many advantages of seeking for unsecured personal loans from debt consolidation services, including:

·         Paying off Debts: A personal loan can afford you better interest-rates as well as providing you monthly repayments of more affordable nature, leading to improved cash flow.

·         You also get to reduce your indebtedness in drastic fashion. Paying off the more recent loans can improve your credit score too.

·         A loan can assist someone in making on-time payments. Consolidating debts using a new loan means one only requires making payments into a single account. See more at Debt Mediators

·         You end up establishing good habits of budgeting. This is because of the commitment made pertaining to controlling your debts. It marks a positive step towards attaining a new overall outlook in handling your financial life.

Getting to understand what is debt consolidation is vital and applying that knowledge offers a great solution for any person seeking to improve monthly cash flow or who experiences hardships in trying to manage debt obligations. A personal loan utilised for debt consolidation generally makes debts more manageable. For more details, just visit HTTPS://WWW.DEBTMEDIATORS.COM.AU/DEBT-SOLUTIONS/DEBT-CONSOLIDATION/

Steps to getting out of Credit Card Debt: A Debt Helpline Guide

Author: Hayley Sheean  //  Category: Financial Services

With the introduction of credit cards into the market, many people are finding it easier to shop and make purchases online. Not only are they convenient, they are so safe in that you do not need to carry loads of cash as you do your daily errands. However, using credit cards requires you to be careful since indiscriminate use could land you into miles of credit card debt. In fact, many people experiencing financial difficulty right now are most likely doing so as a result of using credit cards carelessly. However, all is not lost since there are a number of debt solution options which are designed specifically to help you get rid of debt incurred from credit cards.

Steps to get out of huge credit card debts

·         Determine what you owe: Many people experiencing financial difficulty do not know how much exactly they owe. This leads to lots of procrastination making them not start managing their debts. Getting to know how much you owe immerses you into reality forcing you to make the necessary changes in order to start paying off your debts.

·         Get professional Help: The services of a financial planner usually come in handy for people experiencing financial difficulty since they are experienced enough to advise debtors accordingly. Financial planners usually help debtors view their situation objectively and also help them devise ways to repay their debts in a definite time frame.

·         Stop Using Credit Cards: Since credit cards are the major cause of credit card debt, many financial planners advise that you stop using them for your purchases. However, it is advisable to remain with one since cancelling all of them may hurt your credit score pretty badly. With a bad credit score, the bank won’t help you in case you need an emergency loan.

·         Track Your Spending: Australians are faced with financial challenges mainly because they do not track how much they spend. This puts them in a position where they cannot know where the money they earn goes. To know how much money you spend, note down every purchase you make in a span of a month. This way you will know where each dime goes. When you know where your money goes, you will be in a position to know where you can cut costs or even find cheaper alternatives helping you spend less.

·         How can you bring in more money?: When you are in debt, you need ways to supplement what you earn so that you can repay some of the money you owe. Think about an extra skill set you may possess that can help you generate more revenue. This way you will earn more money that will help you reduce that credit card debt you have.

·         Be kind to yourself: As you are repaying your debt, you should be kind enough to reward yourself for all the sacrifices you are making in order to pay back your debts. Put aside a small amount of money every day or week to fund your holiday or purchase something you love.

There are numerous ways to help people experiencing financial difficulty come out of debt. It is never too late to start paying them off!