Loans and advances have become an integral part of every business. Do you own a small business? The revenue you are earning initially may not be enough to reach your goal. What shall you do in such a situation? Borrowing money can be the only option. You have to keep some fund in your hand to run a business smoothly. Business is not about capital investment and material supply. The human resources such as employees, vendors, distributors etc. should be paid as well. You have to contact the loan lending organization that will provide you money very quickly.
This is to have a predictable credit card sales capacity. The majority of providers will provide you slightly different terms, however, it mostly hinges upon your evidence of stable credit card sales quantity.
Ease in money borrow –
If you need money for your business, waiting for the fund will be a waste of time. The very suitable option over here is the merchant cash advance. You have to apply for the fund and your money is in your hand. The organizations dealing with such funding procedure won’t take much time to sanction money. Today most of the small and big businessmen are borrowing money for their business. They are getting money without any hassle. No need to wait for months to get your fund reaches you. Just in a few days, you can get the loan approved.
Payback flexibility –
When you are borrowing money, it is for sure that you need to pay it back. But, many individuals have experienced trouble in repaying the money in conventional loan facilities. The rigidities have made their operations really difficult. But with the option of merchant cash advance, you can easily get flexibility while you pay back the money. You can pay as and when you earn profit from sales. The loans can be sanctioned based on the present credit card statement. You can easily pay the entire sum whenever you feel you are capable enough. There is no need to pay the interest for the entire term. Contact the financing institutions for best deal today.
Alignment with needs of business –
Every business has a variety of needs. The capital expenditure might be arranged by you from your savings. But the operating costs of running a business are vital. The financial institutions and banks dealing with small and big business loan are aware of the fact. They will disburse the loan amount easily even if you cannot show enough profit in your business. You can now apply for such loans online. The representatives will call you or visit your home. With your flexible time, they can fix an appointment anywhere you like. Individual businessmen can apply for the adequate loan amount. The authority will sanction it based on the type of business and possibility of repayment. The cash advance option is not a loan. You get an advance amount for your business.
Does your small business have a banking and credit card policy? If not, perhaps you might wish to think on it. Developing such policies and procedures is not a difficult task. It will not take you long at all to make a relatively simple operations manual to cover your banking and credit card strategies.
Below please find an outline or guideline to assist you in developing your own small business banking strategy.
What I usually recommend is that you print out this article and then modify the outline to best fit your business and banking needs. Then after making modification on the article itself and tape it to the a legal pad, then on the following pages of the legal pad write a paragraph or two on each number and letter item. Once you have written and re-written these pages you now have a rough draft, then type in your ideas and plan into a word processor computer program and there is your operations manual which is in place as you expand you business to its full potential.
BANKING AND CREDIT CARDS
I. WELLS FARGO BANK
A. Business Accounts
B. Company Credit Cards
C. Supply Ordering
D. Interest Accounts
E. Numbers Of Locations
II. CREDIT CARD PROCESSING
A. How it Works
C. Royalty Payments
III. ATM CARDS
A. Personal Use
B. Credit Cards
C. Business Fund Commingling
IV. PERSONAL MONIES
Are you looking for a sample letter for loan modification application? So are half of the homeowners in the country. The letter you send in with your loan modification application is just as important as the application itself, if not more so. Here is a great sample letter for loan modification application for you to take example from:
Email Address (if applicable):
To Whom It May Concern:
I’ve sent this letter to you in order to explain my reasons behind requesting a loan modification on my mortgage. Before last year, I had never made a late payment on any of my monthly expenses, but after the death of my husband things have been increasingly difficult to handle. I am requesting an interest reduction down to 6.25% from my current 8.80%. I feel it is a fair percentage for you, and it is just within my means.
Before my husband passed away, we had both been making more than enough to afford our mortgage. Once our interest rate rose to 10.24% and we had no difficulty paying it. However, once he passed away I was left with half of the monthly income I had before. I had been pulling together enough to pay the bills and mortgage by pulling from our savings and the small amount of life insurance I received, but I’ve run dry and have no other option than to request a manageable, fixed interest rate from you.
Without a reduction on the interest, I will not be able to afford the monthly payments. I have to choose between a loan modification and a foreclosure. I would far prefer the former, and you probably would as well. 6.25% is the most I will be able to manage, even if I cut all of my expenses out of the picture. Please consider my application seriously and I hope to hear more from you on the matter.
Notice this sample goes a little in depth about the circumstances of the homeowner seeking loan modification. What’s more, she also has determined her ideal interest rate based on her current income, showing her lender that she is taking the matter very seriously and wants to work with the lender to stay in her home.
While this sample letter for loan modification application is not perfect, it pleads a good case to the lender and puts it all on the table. Your lender needs to know it’s either modification or foreclosure and there is no way around it. They may lose money on a loan modification, but they lose much more on a foreclosure. Get all of your facts, story, and numbers straight and even you can write a compelling hardship letter.
Not paying your taxes on time entails various consequences. If you are having trouble paying your taxes in full, don’t let it hinder you in filing your tax return timely. Consider paying as large a percentage of the amount owed or borrow money from others in order to settle your tax liability in full. Filing a return and not including full payment can save you large amounts of penalties and fees. Moreover, payment plans are available and being on a current payment plans avoids IRS collection process which may include, property seizures, garnishments etc. Most CPA firms can advise you on these matters.
These are the ordinary penalties:
· “Filing Failure” penalty
5% per month on the amount of tax due on the return to a maximum of 25%
· “Payment Failure” penalty
.5% per month on the amount of your tax due on the return to a maximum of 25%
· Both “Filing Failure” penalty and “Payment Failure” penalty apply
The “Filing Failure” penalty lowers to 4.5% per month and “Payment Failure” penalty is
.5% per month. The combined penalty stays at 5%. The maximum penalty for both is 25%. Then, the “Payment Failure” penalty continues at.5% per month another 45 more months. Both penalties can go to a maximum of 47.5%.
Besides the penalties above, interest is charged on late payments. Also when you are self-employed, you take full responsibility for paying the taxes as money is earned through the year.
Payment extensions are provided when it can be proven that unwarranted hardship exists. Inconvenience caused by paying the tax isn’t enough grounds for unwarranted hardship. The taxpayer must show that paying the tax would cause significant difficulty and/or expense. For example, a fire sale, selling property at an extremely discounted price, since the person faces the difficulty of paying taxes.
When a payment extension is granted, interest is still charged but the “Payment Failure” penalty is waived. The payment extension is usually good for six months from the due date of the return. The IRS will lengthen time allowed for a payment extension due to some circumstances..
To apply for a payment extension use Form 1127. Form 1127 requires a taxpayer to provide detailed statements of; assets and liabilities, statement income for each of the 3 months prior to the due date of the tax return and statement expenses for each of the 3 months prior to the due date of the tax return.
Paying Income Taxes With Borrowed Funds
Borrowing money to settle tax obligations is an option. Here are some various scenarios:
· Loan From Individuals
Borrow from relatives or friends. Interest rates are probably lower.
· Loans From Banks Or Other Commercial Institutions
Interest on this type of loan is usually considered a non-deductible personal interest expense. Typically a financially troubled taxpayer has a hard time to qualify for this type of loan.
· Home Equity Loan
Interest rates may be lower than with other types of loans. The interest payments may be tax-deductible. This is usually the cheapest option.
· Credit Card
There are a number of companies approved to accept credit cards or debit cards to pay income tax. Note, interest charges may be high and is usually considered a non-deductible personal interest expense. On top of this interest, the companies approved to accept credit cards or debit cards to pay income tax charge a service fee.
Monthly Payment Agreement Request
File form 9465 to apply for a monthly payment agreement with IRS, this can be done online at WWW.IRS.GOV. This process can be done after a hardship extension expires. Form 9465 requires less information than Form 1127 regarding the hardship extension. No financial statements are required if tax due is under $50,000.
When the amount owed is more than $50,000 Form 433-A Collection Information Statement for Wage Earners and Self-Employed Individuals is required. This form helps the IRS obtain detailed, information about you. Consider consulting a CPA Firm about allowable expenses and national living standards that correspond to Form 433-A.
There is a fee for the monthly payment agreement and it is deducted from the first payment if the request is approved. When the payment agreement request is approved, interest on any tax due date is still imposed. However the “Payment Failure” penalty is reduced to.25 % instead of.5% if the return is timely filed.
The monthly payment agreement has a fee of $120. The fee is reduced to $52 when a person permits the IRS auto debit from their account. In the event the taxpayer qualifies as a low-income the fee is reduced to $43.
Monthly Payment Agreements may be terminated if IRS thinks the probability of obtaining payments are at risk. The IRS will also terminate a monthly payment agreement if the financial information supplied was not accurate or complete.
Other reasons for terminating the agreement are the following:
• Failing to make a monthly payment.
• Failing to pay another tax liability when it’s due.
• Failing to provide updated financial information.
• IRS finds out that your financial condition has improved.
A written notice will be sent by the IRS 30 days prior to changing or terminating a monthly payment agreement. IRS will also provide the grounds for changing or terminating a monthly payment agreement. The requirement for written notice does not apply when the IRS believes the collection of tax owed is at risk.
Thus, it is very important that tax returns are filed properly even if full payment cannot be made. Options like hardships extensions or monthly payment agreements may be availed to prevent further charges, penalties and other serious consequences.
We hope this article was helpful. This article is an example for purposes of illustration only and is intended as a general resource, not a recommendation.
The term “Loan Modification” is one that is being used often and repeatedly in the news and society today. In spite of its prevalent use, many people are not sure of what a loan modification is exactly. Sure, it is a “modification” of a “loan,” but beyond that, how can you tell if a Loan Mod, as it is often called, is right for you?
First, you have to know what it is. A Loan Mod is basically an alteration of the existing terms of a loan. These terms can include the amount/due date of monthly payments, the interest rate, term or duration of payments on the loan. Any alteration that does take place, however, can only be done with the approval of the Lender. This process of working with the lender to alter the terms of the loan usually comes about when a person can no longer afford to timely make the payments on the loan. Often, engaging in and completing a loan modification can save a borrower from defaulting on a loan.
A vast majority of borrowers that are currently seeking Loan Mods are borrowers who have ARMs. ARMs are Adjustable Rate Mortgages, meaning that they are mortgages that do not have a fixed interest rate but one that varies. A major difficulty that borrowers often face when they are in ARMs is that because the interest rate is variable, meaning that it changes, the amount of the monthly payments a borrower is required to make, changes as well.
A Loan Mod is a good option for a borrower who: a) does not want to experience any negative tax consequences and b) does not want to have negative marks on his/her credit report. While there are other means of modifying the terms of a mortgage (i.e. forbearance, or short sale), a Loan Mod will enable a borrower to keep his/her home while making a decreased payment. A Loan Mod is an excellent way to avoid foreclosure.
If you are looking for an apartment to rent in Raleigh NC but you have bad credit, a prior broken lease, a bankruptcy or even a felony or misdemeanor, you may be very well be denied. This is the frustration that is facing many people who propose to look for apartment housing in the largest city in NC without good credit scores or rental history. In the last few decades, apartment complexes have tightened their qualification requirements for new tenants and are not insisting on near-perfect credit before processing an approval.
The fact that you have poor credit or a problematic rental history does not automatically mean that every single apartment in Raleigh will disapprove you; but it does mean that things will be tougher for you in way of finding an accommodating leasing manager. You may have to search harder and longer and many applicants in this category actually end up giving up. If you are in Raleigh and are looking for decent apartment units but your credit is less than flattering, here are a few places to look:
As we mentioned, if you search diligently enough, there will be an apartment or two that will be willing to work with you. These are usually termed “second-chance apartments” and they do exist throughout the city but are hard to find mainly because they do not advertise. Their lack of willingness to advertise is solely because they want to keep their reputation as safe housing communities which accept only the best quality applicants.
One way of finding these types of apartments is to utilize the Internet. The Net has plenty of search results if you are looking for apartments with bad credit in Raleigh. Again you may have to go beyond just a casual search and dig deep. Apartment locators can also be helpful especially nowadays when most of them charge nothing to help you locate an accommodating unit. They may know a place or two where the chances are high you will get approved.
Remember also that even if you do locate an apartment that agrees to work with you, there will be basic requirements to meet. One of them is that you must have a job for at least 6 months. Your income must also be 3 or more times higher than your rent and finally, you may be asked to succumb to a background check to see whether there are any serious felonies in your record.
Speed matters. It can be the difference between winning the Indy 500, catching tonight’s dinner, or making a profit on a real estate fix and flip project. Many real estate investors turn to hard money loans to finance the purchase and renovation of rehab properties, and the need for speed is one of the chief reasons why.
How can you “win the race” in the real estate renovation world?
Renovation projects are extremely time-sensitive, and require funding sources that can respond quickly. Here’s why:
· Quickest Money Gets the Deal: In a high-density area like Washington DC, the competition for suitable fix and flip properties is intense. When foreclosed, abandoned or dilapidated housing stock comes onto the market, it’s often the developer with the quickest access to funding that snaps up the property. If you can’t arrange funding within a couple of days, you might miss a great deal.
TIP: The U.S Department of Housing and Urban Development’s website has a portal that lists all foreclosed properties in the country. Check it out to see what’s available near you.
· Timing your Sale: In most areas, the optimum time to sell a fixer-upper is constrained to a several-month buying season, usually starting in early spring. This means you ideally time your purchase and the completion of rehab to coincide with the selling season. A speedy private loan, available as soon as you need it, is the key to proper timing of your rehab project. A recent Zillow study puts the magic window to sell between mid-March and mid-April, depending on variables such as location and weather. Homes sold during this window sold 15 percent faster and for 2% more. That’s real money in your pocket.
· Flexibility: Fix and flip or construction loans are often structured with a draw schedule, so that funding is released each time you reach a given benchmark (permitting, framing, etc). This ensures a steady flow of funds throughout the project. However, cost overruns and construction delays can occur, and developers often increase the project scope or timeline after initial funding. Whatever your reason for needing additional funds for your project, waiting for a new loan can slow the project down. Hard-money loans can be structured to include several phases, drawing on phase two or three only if needed, and money can be disbursed as quickly as the same day, so that there need not be any interruption to your project.
What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. At the end of each month you can either pay off the whole of the amount you owe or make a minimum repayment. Other kinds of cards include: 1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.
2) A chargecard where you have to repay the full amount at the end of each month.
3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account Do you need a credit card? Using a credit card is a useful way of making purchases: a) A credit card means you don’t need to carry huge amounts of cash around and risk losing it.
b) A credit card means you can buy items over the internet.
c) A credit card means you can make purchases abroad without having to worry about local currency.
d) A credit card gives the opportunity to spread the cost of a large payment over several months.
e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.How do you choose a credit card? The main two UK credit card issuers are Visa and Mastercard. These are accepted in most places and in 130 countries worldwide. Beware of less well known brands that may not be accepted everywhere. Before you choose which credit card is the best for you, remember to read the terms and conditions carefully. Never sign up for a credit card without fully understanding what you are agreeing to. Remember that all the plus factors will be prominently displayed in large print. You may have to study the small print carefully to discover if there are any negative factors.
A list of the current cards on offer in summary is available on this credit card summary page. What You Need To Consider:1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance. 2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals. 3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs. 4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals. 5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&’s no use collecting airmiles if you never fly. 6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments. 7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you. 8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account. 9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit. Will Your Application Be Accepted? Whether or not your application is successful will depend on your credit rating. Your credit rating depends on your credit history (a record of your use of credit) and is based on the record of your ability to repay debt. You can obtain a copy of your credit file by contacting a credit reference agency. There may be a small fee for this service. When you application has been accepted you will be given a credit limit. The credit limit will be fixed when you first apply for your card (although you can ask for it to be increased or decreased later) and the limit, including the amount you have left available to spend, will be shown on your monthly statement. Insurances and Protection. What You Can Do: 1) Take good care of your credit card to ensure that it isn’t lost or stolen. 2) To prevent misuse of your card you must report any loss or theft of your card to the issuer immediately. Many issuers allow you to register all your cards with them so that in the event of you losing a purse, handbag or wallet they can all be cancelled with just one phone call. 3) You must keep all your receipts and also check your statement carefully and report any suspicious transactions. For example payments that you have no record of making. 4) Credit card companies are now issuing cards with PIN (Personal identification numbers) which are known as Chip and PIN cards. Rather than signing your name you will be asked to enter your PIN onto a keypad. You must ensure that you keep this number secret. What The Issuer Will Do 1) The issuer should insure you against loss, misuse or theft of your card. 2) The issuer may also insure your purchases for up to 100 days. 3) Your issuer may also provide protection against you being sold unsuitable or shoddy goods. Important Points To Remember:a) Credit cards can be a very useful tool to help you to manage your finances.
b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up.
c) Remember to set yourself a budget and decide how much you will pay off each month.
d) Check your statements carefully each month.
e) Look after your card to prevent it being lost or stolen.For a glossary of the terms mentioned in this article please visit the credit card glossary page.
Put simply, a Pay Day loan (or its equivalent, called by fancier names like Advance Pay or Cash Advance or Convenient Cash) are high rate loans that either are designed or result in “trapping” its users for a long-term addiction to such loans. One study estimates that the average rate of interest (if calculated, since such loans do not “charge interest, but charge a fee for their service”) is about 390% per annum! So in fact for every dollar borrowed, you pay three dollars in interest in a year.
Now here is a quiz.
How often do Pay Day users return to use the same service at the same usurious (imputed) interest rate?
Again, a study estimates, about 76% of the time!
So like a narcotic, once you get addicted to receiving a Pay Day loan, most of you will not get out of the hell-hole for a long time. That is because most of us, as humans, tend to do what comes of a habit.
So typically you to the Pay Day window say on a Friday of the week you do not get paid. You “pledge” your next week’s paycheck for a fee. How much fee? say 5% of the pay check. Small amount of fee, right? WRONG! You are paying 5% effectively for a week, since your paycheck will already have been cashed next week by the lender. 5% a week amounts to 260% per annum.
It would of course be ridiculous to think of it that way if you were never to return to that window. So you pay 5% that week and live happily ever after, never darkening the Pay Day door. Unfortunately, as statistics show, most of the Pay Day users are repeat offenders. Yes I say offenders because they are robbing their family of hard earned dollars.
Pay Day lenders justify their practice, which by the way is perfectly legal, since the usual usury laws do not apply to them, in a variety of ways. And in fairness, they do serve a purpose–but similar to a doctor prescribing pain killers to an addict. Among the reasons cited by them: high default rate, high risk, difficulty in recovering bad loans, absence of alternative lenders who can serve this sector etc.
So the important question is–what can you do to avoid Pay Day borrowing. Here are some tips.
2. USE S.M.A.R.T. SAVING PLAN
S is for saving
M is for managing your expenditures
A is for accumulating useful assets
R is for reducing debt
T is for tracking your yields.
The important thing is to Start Saving. Force yourself to look at every item of cash expenditure and credit card and debit card expenditures (latter are considered “non-cash”). Here are some ways:
- Forget changing your wardrobe each season. Most of us, men or women, can do fine with about 10-12 pairs of wardrobe–and that includes shoes, ladies and jackets and ties, men!
- Eat out only on special occasions. If you have an urge to eat out, try cooking a new recipe at home. It is a great way to bond with your spouse, son, daughter or older parent
- Start a home business, even as a hobby, but make sure it does not burn cash beyond a reasonable period, like 3-6 months
- Start a retirement plan, a college plan for your child, or simply a 401 K if your employer offers one. You will be surprised how quickly you can adapt to living without that slice of your pay check
- If you have to borrow, try a lower amount with a bank–and insist on paying back over a shorter period. Even borrowing from your 401K is better than Pay Day
- Maximize your home loan or home equity loan
Good Luck. And please, please, stay out of Pay Day loans. They can be as harmful to your financial health as drug overdose for your body.
There is a tax credit associated with the purchase of a “plug-in electric vehicle” (a vehicle propelled to at least a significant extent by an electric motor propelled by a battery capable of being recharged from an external source of electricity).
Tax Deductions Vs. Tax Credits – Deductions reduce the amount of your income that can be taxed. On the other hand, tax credits reduce the amount of tax owed. Congress may grant a tax credit to promote a behavior or industry, such as buying a plug-in electric vehicle.
The tax credit is called the “new qualified plug-in electric drive motor vehicle” credit (NQPEDMV credit). Two-wheeled or three-wheeled electric vehicles aren’t eligible for the tax credit, but, for those vehicles that were, acquired after Dec. 31, 2011 and before Jan. 1, 2014, there was a separate credit available for qualified 2- or 3-wheeled plug-in electric vehicles.
For the vehicle to be eligible for the tax credit, the battery must have a capacity of at least four kilowatt hours, and the base amount of the NQPEDMV credit is $2,500 per vehicle. The allowable credit increases to $5,000 per vehicle based on a formula which increases the credit by $417 for every kilowatt hour of battery capacity in excess of five.
There are some additional criteria to qualify for the tax credit:
• The credit is allowed in the year you place the vehicle in service.
• The original use of an eligible vehicle must begin with you, the purchaser, i.e. the vehicle must be new.
• An eligible vehicle must be used predominantly in the U.S., and have a gross weight of less than 14,000 pounds.
• The credit is allowed if you buy a vehicle for lease to another, but, generally, not allowed if you buy a vehicle for resale.
• The tax benefits otherwise available for an eligible vehicle are reduced unless you make an election not to apply the credit to the eligible vehicle.
• Rules that might limit the application of the credit against regular and alternative minimum taxes are different for the portion (if any) of the credit attributable to personal use and the portion (if any) attributable for business or other for-profit use.
Although the information contained herein is believed to be reliable, the author makes no representation as to the accuracy or completeness of any information contained herein or otherwise provided. The article is for discussion purposes only.
The article does not providing tax; accounting or legal advice and the reader should rely on its own accounting, tax and legal advisors for definitive guidance as to the applicability of the enclosed information to specific circumstances.