0 Why businesses get ripped off on currency and what they can do

Businesses trading internationally are unnecessarily losing out on thousands of pounds, dollars & yen when making and receiving international payments.

According to a recent article in the FT, a third of respondents to a survey reported gains or foreign exchange losses exceeding $1m.

Today, we’ve invited Daniel Abrahams, co-founder of My CurrencyTransfer, an OPP award winning foreign exchange comparison website to help better understand how to score a fair and transparent deal on currency.

Always opting for bank rates

A large proportion of SME’s are unaware that there are alternative methods of making international payments. Banks apply hefty markups away from the real rate of exchange, and charge fixed fees per transaction of up to £40 per payment. In the past couple years, we’ve seen a raft of innovation in the international payment space. Using a reputable, FCA regulated non-bank foreign exchange provider can help you save up to 5% on your international payments. On a £100,000 transaction, that’s a saving of up to £5000. Not to be sniffed at!

Honeymoon Rates

SME’s making international money transfers should be aware of a term known in the industry as ‘honeymoon rates.’ Less than transparent currency brokers and banks will offer clients a great rate on day one, only to widen and widen the ‘‘markup’’ away from the real exchange rate over time. It’s important to benchmark every single transaction against the interbankexchange rate to avoid the pitfalls of poor spreads. The difference between the ‘interbank rate’ and the ‘sell rate’ represents the true cost of your currency conversion.

Not managing currency risk

According to EuroTreasurer, one out of every three survey participants reported having increased difficulty even finding a bank that would hedge exchange risks. However, working with a foreign exchange broker lets you take advantage of a number of ways to manage a business’ foreign exchange risk. Often, you can trade ‘at the right rate, but the wrong time.’ Through currency contracts such as: forward contracts, limit orders & stop losses, an FD can help mitigate against the risk of adverse currency fluctuations.

Each customer is allocated a dedicated account manager who can take time to understand the business’ foreign exchange exposure. It’s so important to have a tailored & proactive service that is ‘on your side.’

No competitive pricing

It’s advisable to have a live trading account with more than one FCA regulated non-bank foreign exchange provider. Most don’t and this can often lead to becoming too comfortable with one particular foreign exchange company (think honeymoon rates). On each and every trade, cross compare the exchange rates offered between two reputable suppliers. After all, more competitive quotes equal a better saving! 

The myth of 0% commission

Finally, never be duped into believing that 0% commission means fee free international payments. It’s simply an elaborate marketing gimmick which in no way, shape or form equates to zero cost currency exchange. Whether you transact with a bank or foreign exchange broker, a good or bad currency deal will always be guided by the competitiveness of the exchange rate alone.

Good luck and with a little careful planning, your business will be well on the way to scoring a fantastic deal on international payments.

0 Tips For Hiring Online

The most difficult thing about working with people online is establishing trust and credibility, especially in a team. Without a common physical office to constrict activities, or a room to facilitate regular and emergency meetings, or even just a common space to observe each other’s performance, an employer has to result to different things just to be able to gauge an applicant’s credibility and competence. If you are looking to form your own team from a list of online applicants, here are some tips for hiring that you should consider.

·         Do a thorough background check. Browsing a Facebook account, no matter how extensive, does not constitute a comprehensive background check. With the number of people who want to earn money from home, it is quite easy to attract some people who only want to know how to make money fast. If you want to check out an applicant’s abilities or credibility, search for as many references as you can that might have some deeper insight on him/her. If you can gain access to documents (printed or online) such as bank records, former employer’s evaluation, blog posts, or even just simple testimonies from friends and former co-workers, it would already be a huge help in painting a bigger picture of the applicant. There are also online resources/sites that keep track of people’s job histories, especially if the applicants have already been with them for quite a while.

·         Test for competency. Once you’ve verified the applicant’s credibility, you can test his/her competency through a series of online examinations. Obviously, the test you’re planning to administer should be related to the skills needed for the position. For example, if you are looking for someone to fill the position of writer, then you can have your applicant tested for writing abilities. If you want a transcriber, then you can employ something akin to a speed-typing test. Whatever the case is, do not take the applicant’s word without seeing proof.

·         Require a probationary period. Sometimes, either through sheer luck or by cheating, an applicant undeservingly passes the test. How do you save yourself from trouble then? Fortunately, this is what the probationary period is for. Not only does it provide a certain period of time for the applicants to learn the required skills, but it also tests the applicant’s consistency, adaptability and knack for improvements. Obviously, it would be more beneficial to just lay off those team members who cannot deliver. After all, a team is only as good as its weakest member, so why keep a weak link in place?

Once you’ve mustered all the tricks, hiring online should be a breeze. 

Author's Bio: Jeric is a freelance writer that is interested in sharing information, tips and ideas online through blogging. He has been working online for about 3 years and exploring the many ways on how to earn money online.

4 Keep Your Cashflow Positive – Analysis of Business Finance

You’ve heard it before. Money is the life blood of all business and commerce, whether locally or globally. Therefore, we must not only safeguard our current revenue streams, but understand the simplest solution to opening them up to new possibilities. This could mean the difference between making payroll, keeping the doors open, or shutting down your business permanently. 

Revenue and Profit are two different animals

We see this today with Amazon. They have incredible revenues but their margins are super tight, which makes their profitability significantly less than Apple, but they are playing for the future and can do so because their revenues are exceeding expenses. Even when you are investing in your business, it’s important never to over extend your reach; this means credit should only be used when your business needs to get to market, and will have near guaranteed returns. It’s always best to use cash on hand, and be more liquid than relying on future earnings.

You are losing out on Revenue

Most businesses today don’t make it convenient for the shopper to pay, whether through credit card, moneybookers, Paypal, or other types of payments. You still see signs of “cash only” in 2013, where digital money is becoming the dominant player; as a business man or woman you need to position yourself to capture this lost cash flow. With credit cards and now mobile secure payments, consumers now not only expect every option, they simply demand it. Even if it’s one out of 100 customers, that 1% can mean the difference between expanding, and playing it safe (which according to Seth Godin of Squidoo is a death sentence – you have to dare to be brave and expand, but that requires cash flow).

Research and development Business expansion

If your business isn’t moving forward, it’s moving backward. If your cashflow is barely meeting your expenses, then you won’t be able to see far into the future. Like a chess player, you have to think 15 moves ahead to be a grand master in your industry. With stress, mounting bills, and a stifling money supply, you will think and act as a Pawn, rather than the King / visionary you need to become.

Attracting the Best Partners and Employees

People are proud to work at Google, Facebook, Amazon, eBay, and other major brands that represent a healthy business, with great solvency and liquid assets. If your company isn’t reporting revenues that exceed expenses (don’t cook the books!) then you will scare off the best young talent pool graduating from college, or leaving other companies. Instead, you will be the company they leave to go to a larger, more credible company. Don’t become the starter business for someone to pad their resume; take charge, literally, evaluate what your competitors are doing to remain profitable, and see where you are leaving money on the table. It’s also important to slash unnecessary spending, but most businesses focus on cutting vs growing, which is a recipe for disaster.

Author's Bio: Matt Anton writes on many business and finance topics. He relies on http://merchantaccount.co/ to process payments at the best rates possible.

0 Understanding the Role of a Good Billing Solution in a Business

The business with a comprehensive billing system will definitely achieve success in the industry. The revenue for a business and efficient management of the same will definitely help the business as a whole to excel in this industry. Efficient and dynamic billing solutions help the business to monetize and manage their business relationships better, from which they are able to reap benefits in the longer run as well. Efficient billing solutions help the business houses to manage, administer and handle the daily operations like invoice generations, periodical administration of the financial standards etc in a scientific and effective manner. 

 

These solutions provide management to administer their financial affairs as per the nature of the products and services. These also help the management from the auditing perspective and overall finance management. These solutions are designed to cater the requirement of the companies as per their business culture and pre-programmed financial practices. This multipurpose financial tool helps a company to make a lot of money but surprisingly it is an extremely cost effective tool, which does not require huge investment. This tool definitely enables a company to gain a competitive edge over its competitors in this highly competitive market. 

 

Industries which are benefited

These financial management tools help the companies to manage their billing and revenue affairs effectively. Most vitally the business houses are now able to manage their relationships with their parties, such as vendors, clients etc efficiently. These tools have gained tremendous popularity and these have been designed to cater the needs of all types of business functions in the industry. These tools are suitable to be used in the industries like Communication and allied service providing industries, Different financial institutions e.g. Banks, NBFCs, Insurance companies, different consulting companies engaged in collaboration and conferencing, business houses with innovative styles of business etc.

The characteristics of these tools

There are different features of these tools. They help the business houses in different ways and in different functions. The main features are listed below:

• Charge calculation of recurring nature, especially contemporaneous unit based and seat based charge calculations along with the option of prorated calculations
• Different types of fixed and interim charge calculations on the basis of the activation of the services, usage summary and expiration of the validity or contract of the services etc
• Unit per minute or second calculation, manned seat calculation, unit per cost calculation etc can be done
• Pre programmed algorithms for successful pricing function
• Different calculations on various discounts
• Periodical and unique billing cycle generation along with the feature of end of the period reports
• These are flexible enough to be customized as per the accounting practices and billing nature. Companies can customize these solutions to cater their specific needs
• Bill generation for events with multiple stages and services, capability of measuring and generating the bills of different transactions as per the nature of the services and products
• The solution providers offer flexibilities to the customers by providing round the clock support and resolution to all types of issues and concerns
• Comprehensive product catalogue helps the customer to choose their required solutions along with the feature of customization

The benefits which can be derived from this solution

The business houses can experience multiple benefits by using this solution. The approach of the companies changes altogether after the integration of this billing solution into their core financial management. Some of the key advantages which can be derived from this solution are:

• Suppleness and Adaptability – This solution enables the business houses to adapt to varied situations in quick time. The most complex scenarios can be handled and business relationships can also be maintained properly by using this financial tool
• Flexibility in terms of Marketing – In case of new products and services the companies can fit them into this tool without any hassle and delay
• Cost of Operations gets reduced – Integration of this tool enables the companies to engage lesser numbers of staffs as it helps them to automate the process to great extent
• Support the associated functions related to the audits – The application environment provided by this tool help the companies to resolve the customer issues and other operational flaws very fast
• Quick integration – This is primarily a web based tool and does not require much time for the integration with the core system

Author Bio:

Criss Derek is one of the veterans of financial industry and has loads of experience regarding the various financial management tools. His blogs on Billing Solutions are useful to understand the criticality of successful financial tools.

0 Fiscal Cliff and Housing

It seems that for now we have avoided the fiscal cliff which was supposed to take effect in 2013. It is considered as an economically damaging set of tax increases and spending reductions which is good news for the housing industry, but for how long? The enactment of H.R. 8 or the American Taxpayer Relief Act of 2012 has the following provisions; it has increased income tax, increase in capital gain and dividend rates, exemption and deduction phase-out for all individuals with high-income.It has made permanent the alternative minimum tax relief and has increased the federal estate, gift and generation-skipping tax.

There will also be an extension of certain tax breaks but for a limited time which is generally two years for various business credits, exemptions including new markets tax credit, work opportunity tax credit, and the exclusion of gain on the disposition of certain small business stock. Well, this extension from the Tax breaks are good for home buyers since it will help lessen the number of foreclosure and will help borrowers whose mortgage is upside down to stay in their homes. You may recall, that a law was signed in 2007 stating that debt relief modifications, foreclosures and homes in short sale were no longer taxable and it was supposed to end in 2012. Now, if these tax breaks were not extended, homeowners would not agree in putting their homes in short sale because they would then be facing the tax bill and they would also not agree to the principal reduction loan modification which is way more successful than any other modifications because it leaves the principal as is. This latest development in legislation would do “mostly” good for the people. It somehow prevented the massive tax hikes and deep government spending cuts which could trigger the country to go into recession again. About ninety percent of the new tax revenue which will be collected for the year will come from families who are earning more than 1 million dollar annually. Meaning, only 1 percent of the population will be affected.

However, the negative part of the deal would be; the act did not extend the 2% reduction in Social Security portion of the FICA tax collected from wages, so as a result, a worker who earns a total of $113,000 per Social Security ceiling for 2013 will see an increase in taxes from his earnings of $2,274 this year. If an individual’s income is above $250,000 then expect the tax rate on stock dividends to exceed the current 15% level. Explained as; each extra dollar earned as investment income which includes dividends and long-term capital gains are now subject to the 15% rate plus a 3.8% surcharge under the Affordable Care Act or the “Obama Care” making now a total levy of 18.8% on your income.

In two weeks time the Congress will meet again to raise the debt ceiling. Well, whatever the outcome would be, ordinary citizens are being called to act and let their voices be heard by calling their representatives and let them hear your thoughts on this before it takes effect on March 1, 2013.

About the Author:

Georges Kfoury is the founder and Chief Executive Officer of Leaderscorp Financial Inc. headquartered in Rancho Cucamonga, CA, a leading provider of mortgage financing dedicated towards providing affordable home loans. He founded the company way back 2003 from a ground level, without having the mortgage background. In spite of this, he was able to immediately take the company a level of generating annual income ranging from 8 to 10 million dollars.

2 How To Utilize Scrap Gold To Make Money

Scrap gold is presently a worthwhile business commodity; however it's prudent to know how to trade this commodity so that you can earn a lot of money. Gold always holds a basic value regardless of its state because it can be melted down with ease and reworked. This is to say, out-dated and broken jewellery, decorative properties and watches are worthwhile and can earn you handsome cash. 

What is the value of scrap gold?

The price of scrap gold should always not be less than the current price of gold on the market which is called the spot price. This is to say, if you have some goods that have lost their decorative value, such as broken jewellery, you are still in a position to earn good cash out of them. Prior to selling your gold, always inquire about its current market price. Put the gold in a weighing balance after removing additional fixing and stones and estimate its approximate price using the market value. This guides you on what to expect when selling your gold since this is what it will be able to fetch you in its basic condition. Gold coins are more collectible and therefore they can be slightly more valuable in comparison to the basic market cost. It's beneficial to gather coins and jewellery products, especially those that have precious gems like diamonds and are still in their fantastic state. These are often highly valued by collectors and could be worth a lot of money.

Ways of selling scrap gold

Items in your possession and in good state, for example candlesticks, trays, jewellery, coins and many more can be considered for sale by auction. The online auction and traditional auction house prices have always maintained consistency for collectible gold products; therefore, this is often a splendid place for maximizing money. When selling via online auctions, proper product listing is a critical tool which offers a correct description and weight and puts clear images of the products and hallmarks they may possess. This assists the customers in value recognition and bid for a reasonable price for your gold. Scrap gold can also be sold via auction but don't forget to place a reserve on the lot so that it doesn't go at a cheaper price.

Local pawnbrokers and jewelers are always willing to purchase gold products; however, you should ensure you receive varieties of quotes because they usually don't offer competitive rates. There are also many committed scrap gold dealers who operate in local areas and via the internet. These are often splendid places when offering your scrap gold for sale since they give good prices, closer to the gold base rate, and will always make it easier for you to sell the scrap gold. However, their reputation is worthwhile, so it's always vital to consider this because you will have to post the item for them to valuate it prior to payment. It's wise to employ recorded delivery to ensure that the gold is received by the buyer and you also have proof of the sale.

0 4 Ways A Wannabe Entrepreneur Can Devastate His Prospect

We learn by making mistakes. In fact, if you are not making mistakes; I can dare say that you are not pushing yourself that hard. Every successful and established man has mistakes in his lives and probably these mistakes have made him successful. But this does not necessarily mean that you should feel free to make any number of mistakes while you are running a small business in order to gain experience and make the business a grand success. Nope, since all small business organizers are battling it out to make their two ends meet, making mistakes can destabilize them financially. Sorry, mate but as a small business owner, you simply cannot enjoy the luxury of making silly financial mistakes and get away with it unharmed. It could ring death bells for your business and in some worst cases; you may end up being emotionally and financially devastated. I hope you do not wish to face such devastating end of your business. If that is so, let me make you aware of some common money mistakes made by majority of newbie entrepreneurs that bleed their businesses dry.

Do Not think Too Big: I have nothing against dreaming something big. In fact, I always encourage people to dream big but at the same time, you should not turn a blind eye to your financial position. Dream should not be too big for your wallet. You need to understand the difference between necessary and luxury. For say, if you need to meet your clients frequently, you need not have to stay in a posh hotel all the time. You need not have to dine in a costly restaurant all the time. If you need to create an impression, you need to look good and for that reasons, you just need to have a good haircut, a suit and of course a killer attitude. 

Be Realistic while planning: Since you are getting into business for the first time, you need to make sure that you are not underestimating your business needs. I mean you simply cannot make your business prospect suffer because you cannot predict the expenditure. This commonly occurs when you are on an entrepreneurial journey. Since you simply cannot make an assumption of the expenditures that might befall on you, you need to carry extra cash with you or else, you might run out of cash in the middle of the journey. 

Think before You Hire: I have met countless number of newbie entrepreneurs and they have the same story to share. Yes, they are making less money, a lot less money than what they have planned. And guess the reason why they are earning less; yes they have more persons on board than what they really need. Hire full time employees only when you are confident that you have enough projects in hands to keep that keep those persons busy. If you ask my opinion, I would suggest you to hire freelancers. Though they cost you more than regular employees, they are highly professional in their approach and you do not need to spend money on their training, supervisions and all that.

Die Another Day: I know you are optimistic and you are not going to leave the battlefield without a fight. However, as fate would have it, even your best attempt may prove unproductive and sometimes, you have no other option but to quit for the day. So, before you join the bandwagon of wannabe entrepreneur, you need to have an exit plan ready so that you have enough resource left to tee off your next venture in style.  

Author's Bio:
Michael Evans is a passionate writer and he works for chesterfield-group.com that offers International Corporate Services.

3 Making Your Equity Work For You - 4 Tips On Controlling Your Daily Company Expenditure

Cash flow is the fuel that keeps the company engine running. It is a critical component of the success of any business. Having profit on paper without operating cash will not do the company any good and can in fact lead to bankruptcy. Without cash, the business cannot handle its day-to-day operations and cannot make investments that are necessary for the growth of every business. To make sure that your business is successful, you must ensure that the cash coming in is more than what is going out. Studies have shown that one of the leading reasons that businesses fail is due to cash flow problems. Cash flow comes in two kinds, positive cash flow where the cash received is more than the cash leaving the business, and negative cash flow where the outflow is more than the cash coming in. Negative cash flow can spell doom for a business but there are tips that can help to prevent this situation. By following the tips, you can manage your cash flow and this will help to grow your business.

1. Collecting receivables You have to make sure that you have a good system of collecting and processing receivables. Make it easy for your customers to pay you by providing convenient payment options. If you have customers who are far from you, make it easy for them to pay using convenient options like the depository transfer checks. Give incentives to your customers to pay early by offering prompt payment discounts, and try to avoid offering credit to customers with a poor payment record. 2. Increase sales Come up with promotions and advertising techniques that will increase your sales. You should constantly try to increase your customer base. The more products or services you can sell, the more cash you will have coming into the business. You should also consider selling more goods and services to your existing customers. This might actually be easier and more cost effective than trying to attract new customers. When increasing your sales, try to avoid a scenario where you increase the account receivables.
3. Credit requirements While it is often necessary to give credit to customers, you need to be careful about who you are offering the credit to. Make sure that you carry out research and check references to avoid the risk of extending credit to customers who do not pay their bills on time. If you are dealing with a business that has cash flow problems, you can expect delays in payment. A safer option to giving credit is accepting credit card payments. While you may end up spending a percentage of the sale on the payment, at least you are guaranteed of timely payment. 
4. Monitor expenditure You need to keep an eye on all the cash that is coming in and going out on a daily basis. Do not wait until the end of the month to try to figure out your expenditure. When you monitor the money on a daily basis, you can know where spending can be controlled. The daily expenses might seem like a small amount but they add up and can lead to cash flow problems. Make sure that your accountant questions all the spending made by each team and where possible, look for cheaper options to help in saving costs. If your business is experiencing a problem with short-term cash flow, you should consider taking out a loan. A number of financial institutions offer equity loans or credit lines that can help businesses to remain afloat. The cash from the loan can help to ensure that you have enough operating cash as you wait for your creditors to pay.

Author Bio:
 Susanna is a blogger who has written several articles about different types of loans. She offers advice to business owners about the benefits of private equity and how it can grow their business. She also works as a private consultant to small business owners.