Businesses need to consider a few essential matters when assessing a loan agreement, according to DynamicBusiness.com.au.
Businesses need to understand whether they should opt for a fixed or variable rate and what their repayments are schedules to be. Fixed rate loans provide more certainty but less flexibility with regard to early repayments. Variables rates vary in line with market conditions but offer more flexibility. It’s useful to check the default rate of interest which applies when the loan is in arrears.
Business owners should work with an advisor to determine the right kind of business finance for them, according to business.gov.au.
Line of credit
A line of credit is an amount of finance that is usually secured against property owned by the business owner. This type of loan is particularly flexible and the interest rates are low due to the collateral. On the flipside, business owners can lose their home if they fail to keep up with repayments.
Consumer Confidence has fallen but remains high following the recent Federal election, according to the Sydney Morning Herald.
Consumer sentiment fell by 2.1% in October, following a 4.7% increase in September.
The billionaire investor, Warren Buffett provides an insight on how to avoid the top three investment mistakes Wall Street people usually commit. According to him, building wealth in stocks is one of the ways to manage hard times. Continue reading
Borrowers should thoroughly understand their financial position in order to find the most affordable personal loan for them, according to Yahoo!7.
Why get a personal loan?
Personal loans can be used to consolidate a range of high interest debts into one simple, more affordable monthly payment. Credit cards currently charge between 10-23% interest and a consolidation loan can bring this down significantly. Personal loans can also be used to catch up on bills and pay for personal assets such as cars and household appliances.
Debt troubles in the US have cooled the Australian market, with the ASX 200 dipping below 5200, according to the Australian Financial Review.
Shane Oliver, an analyst for AMP, said the trading conditions as very messy. The situation is not being helped by politicians around the world adding to the uncertainty with destabilising rhetoric and policy. Markets in Hong Kong and Japan were also down 1% this week.
A bad credit rating can come about in a range of ways, according to Yahoo!7Finance.
What can affect a credit rating?
Errors in personal information along with out of date information can quickly cause problems. It’s important for people to get a copy of their credit record and quickly correct out of date information.
With the economy becoming more unstable due to inflation, one needs a hedge against inflation. The inflation figure for this quarter is announced as 1.2% increases, which is way ahead than the expected rate of 0.6% hike. To fight this, investors could allocate few of their eggs to inflation linked bonds. Continue reading
Future fund holds a little more than 91 billion dollars to pay the defined benefit pensions to public servants. Over three years, it has returned almost 9.7% annually and over five years, it has touched 8.2% annually. It has beaten its previous record of 7% for three years and 6.8% for 5 years. Continue reading
With the increasing power prices, many business owners are trying to shift to cost saving methods. Removing carbon tax had no effect on the increasing high power bills.
How are you charged?
Business units require more power than a household. The size of the business and the number of working hours determines the amount of power consumed. The business energy bills separate network charges and other on-cost from the per KW/hour rate. Continue reading