Categories
Investment

Commodities Continue to Boom

Commodities

Commodities have seen an explosive boom in 2021, thanks largely to last year’s Covid-19 market downturns. Commodities have risen by 21% over the first six months of the year despite economic inflation, which makes them the top performing asset group of the markets. With people travelling less and being stuck at home more, the trend has shifted towards spending on physical goods. This is one of the biggest factors influencing commodities, combined with the fact that travel is slowly opening up again and industries are returning to normal, so fuel demands–and therefore petroleum products–are rising again. The Bloomberg Commodity Spot Index tracks the price of various raw materials, and at the end of July it was closing in on the record number it hit in 2011. So, what are the key factors playing a role in this commodities boom, and which commodities are thriving?

Petroleum products

Aside from the uptick in demand from countries increasing their travel and the return to normal industry output levels, mining and oil companies have cut down their spending on new projects, resulting in a supply decrease. Since last year, oil companies have reduced extraction and supply of oil in order to mitigate the impact of Covid-19 on prices, so oil remains at a lower level of supply. This, combined with the recent OPEC+ meeting, which helped settle the dispute between the UAE and Saudi Arabia, has led to an increase in the price of oil, which in turn impacts the demand for petroleum products overall. West Texas Intermediate (WTI) crude oil was one of the top performers for this year so far, increasing by a whopping 52%. Bloomberg reported that on the 2nd of July, US oil consumption had hit a record high, albeit seasonally adjusted, which bodes well for oil in the markets going forward.

Natural resources and metals

One of the most significant comeback stories in the natural resources realm of commodities was Anglo American. The mining company announced $4 billion in dividends, and even though the company’s profits were overshadowed by its rivals, it was still a noteworthy turnaround. Additionally, global leading iron ore miners Rio Tinto Group and Vale SA announced in July that they will give back over $17 billion in dividends.

Steelmakers have finally been able to recover from almost a decade of trouble and are finally able to pay it forward to their shareholders. ArcelorMittal SA, for example, one of the biggest steelmakers in the world, was able to offer a $2.2 billion share buyback program this year, after selling all its shares and ending its dividends program five years ago. Mineral-wise, nickel is making great strides in the market recently, as it hit $20,000 per ton and is on track towards reaching its highest price since 2014. Aluminium prices reached over $2,600 a ton, making this another metal being driven by increasing demand. Copper is yet another winner when it comes to metal commodities in 2021, nearing $10,000 per ton, even in the face of strikes in Chile.

Natural gas

Despite economic inflation worldwide, we’ve seen a serious rally in natural gas prices as demand has returned at an exponential rate. UK natural gas rates are nearing record highs as utilities battle to refill their inventories and Europe struggles with a supply issue. In China, thermal coal futures rose very near a record high, and across Asia, liquified natural gas prices are surging over the summer as importers attempt to compete with their prices. With the world’s shift towards renewable energy, however, many wonder what’s next for fossil fuels like natural gas. It’s a good time to make sure you stay on top of the news to see how the factors that influence commodities are changing. This includes the likes of economic inflation, recessions, and technological innovation, especially in the renewable sphere.

Choose commodities to trade with iFOREX as CFDs

When putting your CFD trading portfolio together, you can choose commodities to trade with iFOREX from a wide variety including petroleum products like WTI oil and natural gas to metals like gold, silver and nickel, to agricultural commodities like wheat, corn and soybeans. When you choose commodities to trade with iFOREX as CFDs, you’re joining one of the leading global brokers that offers excellent trading conditions, an innovative trading platform, and exceptional client support.

Knowledge is powerful when it comes to online trading and you can easily keep up to date on the latest world events with iFOREX’s Economic Calendar, which offers the latest financial updates at your fingertips, and with filters so that you can easily find what you’re looking for. Sign up with iFOREX today and trade with knowledge and confidence.

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Business

How to Turn Your Gold Coins Into Actual Cash When You Need It

 

Collecting gold coins is often regarded as something that people with money and time would get into as a hobby. It can be an expensive hobby depending on how much money one has to spend and the kind of coins they collect, however, collecting gold coins isn’t exclusively for people with money to burn. It can also be a lucrative hobby and an investment vehicle that can help you get cash when you need to liquidate your investments. Selling gold coins is easy. There are many avenues that one can go about liquidating your gold, however, it is important to be prepared and to have as much information about gold coins and the selling process so you can get the best deal. Here are some suggestions on how and where you can sell your coins that you might want to explore.

Local coin shops

There are a number of gold buyers and sellers who specialise in coins. If you happen to know of a coin dealer near you, that could be a great place to start. Coin dealers have extensive knowledge of what is going on in the coin collecting world and would know which coins are in demand and have a higher value because of that demand and which coins are bought solely for their gold content. The benefit of choosing this option is that you will be dealing face-to-face with gold buyers, which often results in immediate cash – no waiting for someone to send you a check in the mail. However, there aren’t a lot of coin dealers around and which can be inconvenient if you aren’t living near one. The price that you get in a coin shop might not always be the best because, the dealer buying your coins needs to make a profit to cover overhead costs involved in running a brick-and-mortar establishment.

Coin Shows

Coin collectors often create communities where they live. They often host coin shows where enthusiasts, display their collections, put up their coins for sale and generally share their love of collecting. People usually travel from far flung areas to sell or buy coins. These are also a great place to meet with like-minded coin enthusiasts to learn more about collecting gold coins, buying or selling gold coins. Having dealers and collectors in one spot is convenient however, most coin shows focus on selling rather than buying gold coins from collectors. If you live far from places where these coin shows are being held, the cost to travel makes them inconvenient. These shows happen intermittently and you may not have the time to wait for a show to roll into your area.

Pawnshops

 Pawnshops are great because they offer you the option to use your coins as collateral for a cash loan. If you do not repay the pawnshop loan as per the agreement with the pawnbroker, you will forfeit your coins and the pawn broker can resell them, often at a higher price than what you received as a loan.

Online Gold Buyers

There are many online gold dealers, including auction sites that give you the convenience of selling your gold coins from the comfort of your home. The downside of going online is that you don’t get paid instantly. You have to ship the coins to the dealer to even get an appraisal and offer. This can take weeks! The other issue that people have with online gold buyers is security. There is a lot of risk associated with shipping valuable gold coins to a buyer you have never really met.

Smelters and Refiners

For gold to be clean and pure enough for use in different industries it needs to go through a refinery. Refineries also melt down old gold jewellery and coins, refine the gold to remove impurities and reform what comes out of that process into a bullion bar, bullion shots or gold coins. Smelters and refineries are a great option to look at when you have a large number of coins or a lot of jewellery. When you choose a refinery to sell your gold to just know that the amount you will receive for your gold will purely be based on the melt value and nothing else.

For most gold pieces, the amount that you can expect is close to spot price. When it comes to gold coins, the spot price, particularly affects U.S minted coins that were struck before 1965. It does not affect rare coins and collectable coins whose numismatic value exceeds the price of the yellow metal itself. Bear in mind that most refineries will only deal with gold buyers who can sell gold to them in volume.

Take some time to look at each of the options presented. Where the pros and coins for each option and choose the one that will work best for you.

Categories
Finance

5 Moments in Debt Coping When Refinance is a Good Choice

Debt Coping

It’s not easy coping with debt. It’s what everyone that borrowed money from a financial institution at least once knows. What you want to do is be free from debt, but this is not possible in most cases, and if it is, you need to work smart to do it.

Loans are made for lending institutions to make profits out of their clients’ need for money. Of course, at the same time, they help with clients’ needs for life investments. There are all kinds of investments and needs for loans.

From business loans to money needed for buying a house or a car. In some cases, people borrow money for going on a vacation or moving from one place to another. These things are expensive and you have no choice in some cases. See what people usually need money for and ask for a loan here.

If you already own a loan, and you want better terms because of any reason, you’re thinking about refinancing your debt. This is a common practice and lots of borrowers are doing it. However, not every situation requires something like this.

To know when this might be a good reason, you need to know the five most common situations in which refinancing your loan is a smart idea. Follow up and see what these moments are, and if you find yourself in some of these situations, be sure to ask your lender for a refinance.

1. You have no money for the monthly rates

There are destinies in the world as many as there are people. Some might have lost their job, and others had to accept another that had lower payment than the previous one. In this case, the family budget becomes lower and it becomes harder to pay the monthly rates.

It happens to everyone at some point in life. You accept a loan that you’re supposed to repay for years, and sometimes even decades, so it’s normal for life to have its ups and downs. When the downs come, you need all the help you can get.

Refinancing your debt is the help you’ll get directly from your lender. They might be open to creating another loan that will suit your new needs. It’s smart to be open with them and tell them about the situation. It’s in both parties’ interest to find a mutual solution.

The banks hate to deal with lost mortgages, and they’ll do anything to see their clients reprogram the loan to be able to pay it back monthly. That means, whenever you find yourself in a situation to not be able to repay, go to the same or another lender to ask for better terms.

2. You make a lot and you can pay off earlier

There’s always the life’s up when you’re doing great and you have the opportunity to pay off the debt earlier. You might get a promotion or transfer to another job where you make more money. This is a situation when you want to invest in your debt freedom.

As mentioned earlier, go to the lender and explain to them what the situation is now and how it is changed. Tell them that you’re eligible to end the loan faster. They’ll happily accept the news because if you manage to pay out the loan faster, you’ll be eligible to get a new one.

It is in their best interest to refinance the loan and make new terms. They’ll probably make a higher monthly rate, and you’ll spend more every month, but instead of paying 10 years, for example, you’ll pay only seven years.

This way, you’ll be free to think about your next move when the loan is completely repaid. You might want to live debt-free, or you might want to invest again. This is what the lender will surely suggest, but it’s up to you to decide what you’re going to do with your money and time.

3. There’s a better interest rate elsewhere

You’re not married to your loan provider. You can always go to another place and ask them to refinance your old debt. That’s what you should do once in a while when you find better terms.

What you need to do is occasionally check the offers coming from other lenders and see what they have to offer. Go to them and talk to an employee there. Tell them about your situation and see what they have to offer.

They might not have anything valuable for you, but some of them might have loans with interest rates that are way lower than what you’re paying right now. If the terms are better then why not accept a loan that is better than the previous one.

The interest rate is the most valuable feature of every loan. When someone offers a deal, the first thing you need to check is the interest rate. If the entire plan shows that you’re going to pay less than the previous one, and all the other terms are acceptable, then don’t hesitate to accept the one.

4. You have more loans and you want them all under one umbrella

When you have more loans, it’s hard to cope with all of them. You need to pay attention to every detail, amount change, and missing a deadline for one of them means instantly getting a poor credit score. You don’t want this to happen because it’s hard to get that credit score back in shape again.

One of the worst things that will destroy your credit score is having a ton of loans. When you need another one urgently, the lender will see you as unable to pay them back, so they’ll reject your application.

Imagine you get sick and you need money for the surgery, but you have a loan for a boat and a wooden cabin in the mountains. You might even lose your life over something like this. That’s why you should always prioritize refinancing and get your debt in order.

5. You need another loan and you want to upgrade the existing one

Everything might be going great for you and you don’t need to change anything financially with your loan. You’re able to pay in time, the loan is designed just the way you want it, and there’s no need for any changes. But, you want to redecorate at home.

That’s when you need to look for the best refinancing out there. You need to check for options because not all of them are the same out there. Sometimes you will need a thoroughly worked plan, but no matter what you choose, make sure you choose an affordable loan.

To find one, you should go to billigrefinansiering.com where loans are tailored based on your needs. Spend some time researching and find other options too. It’s essential to get a loan that you can take, yet get the job done.

If you need redecorating and renovating at home, then you need a loan that will be added to your already existing one. The lender should adjust your needs and provide the money. You’ll get the funds to do the job, and your existing loans will not change dramatically. That’s the ideal option.

Conclusion

When you find yourself in one of these five situations, then you can be sure that you need a refinancing plan. If you do, then you must spend some time researching the market. You should find an affordable refinancing plan that will suit your interests perfectly.

When you’re done researching, talk to the lender about the potential loan. Tell them your needs and opportunities and see what they have to offer. It may be too easy to get the job done, but if it’s not keep searching until you find the best.

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Business

5 of the Biggest Civil Judgments of All Time

Judgment Collectors

Do you remember the 1994 McDonald’s lawsuit involving a cup of coffee? The lawsuit gained notoriety around the world as an example of excessive civil litigation. Even though a court awarded the plaintiff $2.86 million, she ultimately received $640,000. Meanwhile, the case became the flash point of a debate over tort reform, a debate that still rages today.

The tort reform debate continues because courts are known to award some pretty impressive amounts that often seem excessive. How excessive? Just check out the awards described below. They represent some of the biggest of all time.

1. 1998 Tobacco Settlement

Back in the 90s, 46 states, the District of Columbia, and five U.S. territories got together and sued the tobacco industry on grounds that cigarette manufacturers were willingly making an addictive product despite knowing its deadly nature. They won.

When the dust settled, the world’s four largest tobacco companies were forced to pay some $10 billion annually to ostensibly cover the costs states and territories would incur treating cancer patients. Twenty-three years later, those payments are still being made. Tobacco companies have already paid hundreds of billions.

2. 2014 Bank of America Settlement

The 2008 housing crash led to a slew of civil lawsuits against banking institutions. One such institution was Bank of America, which was accused of selling risky mortgage derivatives. The lawsuit contended that such derivatives were partly responsible for the crash. Bank of America eventually settled with Fannie Mae and Freddie Mac, admitting culpability and agreeing to a $9.3 billion judgment.

Unfortunately, the settlement wasn’t the end of Bank of America’s troubles. A subsequent lawsuit settled a few months later added an additional $16.6 billion to the bank’s bill.

3. 2010 BP Oil Spill

You might remember the BP oil spill that took place in the Gulf of Mexico in 2010. The tragic event killed eleven people and did considerable environmental damage that took the Gulf Coast years to recover from. Obviously, BP was sued by multiple parties. They eventually settled with Louisiana and four other states in agreeing to pay $18.7 billion. That settlement ostensibly ended all of the civil lawsuits pertaining to the spill.

4. 2013 Murdoch Divorce Settlement

Not all sizable judgments are the result of lawsuits against big corporations. Sometimes, even personal matters can result in significant judgments. One such case is the 2013 divorce settlement between the late Rupert Murdoch and his second wife, Anna. After more than three decades of marriage, the two split. Anna was awarded $1.7 billion.

The Murdoch case represents one that would have gone to a judgment collection agency had Murdoch refused to pay up. Salt Lake City Utah’s Judgment Collectors says that these types of cases going to collection are rare, but it happens from time to time.

5. 2009 Pfizer Settlement

Judgment Collectors also says that sometimes settlements are the result of a combination of civil and criminal actions. One such case is the 2009 Pfizer settlement regarding a number of prescription drugs, primarily a painkiller known as Bextra. That case revolved around allegations that Pfizer broke the law in marketing the drugs in question.

Settling for $2.3 billion in penalties allowed Pfizer to put the case behind them without facing any additional criminal charges. Critics argued that the penalty wasn’t high enough, given that Pfizer revenues could cover it in a matter of weeks.

Current tort law allows for incredibly sizable judgments when circumstances warrant. Very few judgments are worth tens of billions, but winning millions isn’t a bad option. No wonder tort attorneys don’t want anything to change.

Categories
Business

What are the uses of an online business directory?

online business directory

The directory is the list of businesses categorised in a niche for the customers to easily reach for your product and services. The directly helps in categorizing the business based on location, size, and activities.

A business directory works similar to Yellow pages and is especially useful for identifying the local businesses precisely. With the development of technology, online directories are useful with native search functionality. The directories allow the better search of business using locations such as Zip Code, state, or local area.

The business directories have a list of all types of business under a business type, activity, and services offered. The key information mentioned in the online business directory is:

  • Business name,
  • Addresses,
  • Telephone numbers,
  • Location,
  • Contact Information,
  • Type of service or products the business provides
  • Number of employees,
  • Locality
  • Website
  • Professional associations
  • Social media links
  • Customer reviews
  • And more!

Online directories help with better exposure to your business and branding. Every business should consider having a listing in the online directories to show up the business details, including name, contact details, website information and customer reviews to attract more customers toward their business.More information related to business can also be updated in the online business directory. Brand visibility is extremely important in the competitive world.

Directives in internet media are beneficial especially for marketing. Various companies and businessmen now try to figure out various methods of marketing their products and services to invite the audience to use their products and services. And the options for marketing online are numerous.

Online directories will also provide the filtering option for the customers to narrow down their selection based on the requirement to reach the right service provider.  And this helps the businessmen to connect with their target audience even more comfortably, by ensuring they select the right option while updating the business profile details in the directories.

Another benefit of adding the business profile on the online directory is to improve the business reputation. The online directory also offers the option for rating by the customers. Rating is a way to tell the audience using the directory that s yours is a reliable business. A higher rating on the directory helps the business in attracting more potential customers towards them.

Boosting search engine optimization is the added benefit of listing in the online directory. Your business will be easier to locate when the customers use a search engine such as Google to find you online.

A well-updated business profile in the online directory will increase the ranking in the search engine result page of Google.

All of the benefits of listing your business, product or services in the online directory can be availed at the most cost affordable price. Hence, an online directory is a cost-effective method of branding your website. Most of the business directory offers free listing, and some even provide the most cost-efficient premium listing options. The business directory also helps you to update your information when needed.

When the directory helps in attracting more customers to use your product and services, you are sure to get the best return on investment.

Categories
Business

5 Tips to Know When You’re Looking for Manufacturing Recruiting Firms

Manufacturing Recruiting Firms

In today’s way of work and business, it’s really hard to find manufacturing workers. Engineers are highly paid by they are hard to find; especially good ones. That’s why most companies who need these types of employees, ask for professional recruitment companies to do the job for them.

However, even good recruitment companies are not easy to spot. Some of them can deliver outstanding results, but others won’t provide anything good for you. When it comes to manufacturing recruitment, you can say that it is extremely hard to know which ones to hire. Learn more about the manufacturing business here.

That’s why in this article, we’re going to tell you 5 crucial tips that you must have in mind when you’re searching for the right recruiters out there. Follow up and see what these tips are and be sure that they’ll help you locate the perfect company for your needs.

1. Look for a firm from a nearby area

If you’re doing business in California, you can’t take a recruiting firm located in Boston that operates on the East Coast. You need someone local. That doesn’t mean to look only within your neighborhood and a few blocks away, but still keep it closer, so you can be sure that the results are going to match your needs.

Of course, if there are no matches nearby, you’ll have to go with the other option, but until then, make sure you’re hiring a local firm that will help you find the best person for the job living in your area. This person will be available right away, and they’ll have way fewer expenses to get to your office, unlike this other person that will need to move entirely from one coast to another.

2. Check out their reputation

Probably the most important thing, when you’re looking for manufacturing recruiting firms, is their reputation. Just like anyone else in the business world, not all companies enjoy the same reputation. You want only the best ones for your needs.

To find out who the best is, you need to go to the internet and search for their names. See what people who managed to work with them think about their work. That means checking what people who were looking for employees, and the employees themselves think about a particular recruitment firm.

You don’t want to hire a person who had to go through hell to get the job. This person is not going to be happy at your place from day one, and that won’t even be your fault. At the same time, you’ll have to pay for the recruitment agency for providing the talent you’ve been looking for.

3. Make sure they are specialized in your field

Some companies out there present themselves as simply recruitment firms. They claim to find whatever you need. It’s worth knowing that every single one of them is specialized in one area more than another. They all have connections in the business world, but some of them have more connections in the healthcare business, others in leisure, and some in manufacturing.

You want the last ones as this is the business you’re running and looking for employees in it. Do some research to find out who is perfect in the area you need. It’s best to ask for friends and colleagues, and even experienced employees that already had the chance to find a new job this way.

4. Ask if they can promise a delivery in time

When you need to fill in a position, every day without a worker is losing money for your company. That’s why you need this person as fast as possible. Ask the recruiters about how long will it take for them to find the right person.

If they can’t tell you a precise time, it means that this can go on for months. Some recruitment firms go through rigorous testing procedures to find the right candidate, which takes too much time. They do this because the retention rate of their hires affects their reputation.

5. What’s their quitting policy?

Some companies will give you a chance to get another prospect if the old person quits their job before a fixed period. People quit for many reasons, and only the businesses lose from this. That’s why recruiters often offer to replace this person for free. If this is an option, then consider it a big plus. Even if the new employee quits, you’ll get a replacement fast. See why people quit here: https://www.thebalancecareers.com/top-reasons-why-employees-quit-their-job-1918985.

The retention rate is a highly important feature for everyone. Businesses that thrive always have employees that are loyal and work there for years. On the other hand, replacing a worker is expensive, and no business wants to hire and sack people all the time.

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Insurance

5 Things an Agent May Not Tell You About Term Insurance

Advertisements coaxing you into buying term insurance plans are often way too convincing. What they fail to mention is that a standard term plan is a lot more complex to read, analyze, and even implement.

Essentially an insurance policy that covers the members of the kin after your demise, the term plan is hardly laden with investment-specific benefits. Unlike a life insurance policy that appreciates with age, a term plan is beneficial only if it is settled after the insured has departed.

Although the benefits to the family are immense, there are a few things that you would need to understand before opting for a term life insurance plan as agents hardly talk about these, when it comes to recommending plans.

Factors to Take Note of: Underrated yet Undeniably Important

Even if your agent proffers half-baked information regarding a term plan, you must try and factor in these aspects before proceeding:

  • Claim Settlement Ratio

Perhaps the most essential aspect of a term insurance plan, the CSR often signifies the credibility and genuineness of the insurer. As you should know that the insurer doesn’t simply entertain claims once the insured has departed for the heavenly abode. Most insurance service providers run detailed investigations into the death while some have guidelines and norms regarding the nature of bereavements that are covered.

It is the prerogative of your agent to bring you insurers with the higher CSR value, which signifies the number of claims honored against the ones filed. If the agent doesn’t let you know, you can always check for the same at the IRDAI portal.

Therefore, instead of relying extensively on a term plan calculator to ascertain the premium rates and the sum guaranteed to the family, it is equally important to check the CSR before proceeding.

You certainly wouldn’t want your family’s claim and expectations to be rejected citing an unnatural cause of death, accidental death, death outside the country, and any other excluded factor.

  • Role of Riders

Probably an extension to the first point, your term insurance agent must help you full-proof the entire policy spread by recommending valid riders. You should know that a standard term plan only covers the elementary aspects and you must add in permanent disability, accidental death, critical illness, and other riders to ensure that claim settlement is processed swimmingly after your demise.

While the inclusion of riders adds to the premium value, you can always determine the same beforehand by using a term plan calculator.

  • Comparative Benefits

Unlike any other product, even term plans need to be compared. The agent, therefore, should offer insights relevant to the features, death benefits, rider costs, sum assured, overall cost structure, CSR, and other pointers, for some of the more sought-after insurers. The comparative approach would then help you make better and informed decisions.

  • Exclusions

Regardless of how well you choose, every term insurance plan misses out on certain attributes, which then falls in the category of exclusions. Your agent must explicitly let you know about the omissions, which often include coverage for suicidal deaths, accidental disability, or more.

But then, if the CSR still looks lucrative enough, you should work around these exclusions with relevant, supplementary riders.

  • Waiting Time Frame

Like most policies, even term plans have specific waiting periods before a particular claim is honored. Smaller waiting periods attract higher premiums and your agent should let you know about each aspect before proceeding.

For instance, if you, as an army staff, plan to get a term policy, it is advisable that the agent lets you into the timeframe that the insurer puts forth before the claim can get honored. Long waiting periods aren’t going to be useful in this context, even if they attract lower premiums.

Bottom-Line

A term plan is arguably the safest financial net that you can get for the family. But then, finding the right one can be a bit irksome as agents often leave out 5 of the most important aspects of the same, as covered in the aforementioned sections.

Therefore, to avoid discrepancies, the opaqueness of approach, and even unnecessary misunderstandings during claim settlement, it is advisable to get the policy from Finserv MARKETS. This would eventually help you choose better and sleep well knowing that the claims are most likely to get settled, every single time.

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Finance

Embedded Finance: Everything You Need To Know

embedded finance

The emergence of embedded finance is reshaping the financial services industry. By incorporation of banking products to any company’s products and services, the financial services industry ceases to exist independently, and finance suddenly becomes omnipresent.

For non-bank merchants, embedded finance is the best way to establish more personal connections with their customers, generate new revenue streams, and create a completely new way to interact with money. By embedding finance into financial services, brands can reimagine how they relate to their customers and acquire new customers.

What Is Embedded Finance?

Banks historically dominated financial services including payments and lending. As highly regulated entities, banks have for the longest time built custom tech stacks. These two realities made it digitally impossible for banking services to leave the confines of the bank itself.

As a result of the Open Banking movement and supporting legislation, such as PSD2, these barriers have been effectively dissolved. As a result, banks, fintech, and other regulated entities are now able to connect non-finance companies to their platforms using APIs.

Why Should You Be Paying Attention To Embedded Finance?

Financial services and the economy, in general, should experience unprecedented growth through embedded finance in the coming years. The integration of financial services allows banks and companies deploying them to learn valuable information about their users, allowing them to provide more targeted lending and insurance services.

Data collected in this manner will enhance the efficiency of this process. Consequently, we may see a change in how merchants engage with customers. For instance, they may offer personalized banking (such as discounts) and more accurate loans in the future.

How Can Implementing Embedded Finance Benefit Companies?

Payments are more easily controlled

A major advantage of being a financial services company is being able to manage the payment process for clients. Ultimately, customers will no longer be redirected to third-party sites, but will be able to complete the entire process under one “digital roof”. The benefit of this is not only that it translates into a better payment experience, but it also allows companies to better understand how their customers pay.

Added value to customers

With embedded finance, companies can completely reimagine their relationships with customers. In addition to offering Alternative Payment Methods (APM), merchants can also offer localized payment options that might be appealing to their target audience.

Lower costs

Merchants can also benefit from embedding the payment process by eliminating expensive payment providers such as card networks, which results in a lower cost of payment processing.

To Conclude

Convenience reaches a whole new level with embedded finance. Almost no payment is made, so the concept of payment falls away. Customers no longer have to take out their debit cards and go to a separate screen to enter their payment information, now they just need to click the “Buy Now” button to purchase the item. The process saves them time, energy, and builds trust with the merchant. In the future, Open Banking and PSD2 will make this the norm rather than the exception.

Categories
Finance

5 Top Mistakes that Can Pull Down Your Credit Score

Credit Score

A credit score is a 3-digit number that is estimated by credit bureaus using your credit history. The score can range from 300 to 900. When you wish to take a loan, lenders will check your credit score to know whether you can repay it. Lenders prefer a score nearer to 900 (like 750 or more). As it rises, you can get more approvals for new borrowings at higher limits.

Here are the 5 main mistakes to avoid to maintain a good credit score.

#1 – Credit Card Inactivity

What’s the point of having a credit card and not using it? This can pull down your credit score.

What to do:

  • Compare the features and benefits of different types of credit cards.
  • Apply for one that best suits your needs.
  • Keep using your card to maintain good credit use, credit behaviour and loan repayment history. This can boost your credit score.
  • Using your card continuously can also prevent your account from being closed, which would affect your credit score.

#2 – Late Payments

Your credit score can fall if you don’t pay your credit card dues or loan EMIs on time. One or two delayed payments may not harm the score but repeating this over a long period will have an impact.

What to do:

  • Pay your loan EMIs and outstanding card bills on time.
  • You may choose automated bill payments. To do this, you can provide standing instructions to the bank to debit your savings account before or on your payment due date.

#3 – Settling and Not Closing Outstanding Dues

Settling means partially paying your total outstanding dues. This includes principal and a part of the interest charged by the lender. Just paying this minimum amount is not good enough.

What to do:

  • Check your card documents to know the due date to pay the minimum amount and the due date for the outstanding payment.
  • Repay the outstanding dues in time. This will also prevent any late fee charges.
  • You may consider taking a soft loan from your employer or borrowing from your family or friends to pay off all debts in full on time.

#4 – Accumulation of Unpaid Debts

Before taking a loan, do consider how you will pay the monthly instalments. If you simultaneously have home loan, auto loan, personal loan and credit card dues, you may not be able to repay all of them in time and your credit score can be impacted.

What to do:

  • When you have taken a loan, avoid taking another one before repaying the previous one.
  • Be aware of your monthly income and expenses to know whether you can make EMI payments against loans and pay off your dues on your credit card.
  • Convert your credit card dues to EMIs, so you can easily repay in time.

#5 – Not Checking Documents Carefully

Errors in your loan document or card statements can lead to confusion and delayed payments. This will impact your credit score.

What to do:

  • Check your credit card bills carefully.
  • Get any errors rectified as soon as possible.

A high credit score can get you credit cards at the lowest interest rates. With lower charges, you can clear outstanding dues even faster, which can further improve your credit score.

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Insurance

Considerations to Remember When Buying a Commercial Insurance Policy

Commercial Insurance Policy

Multiple factors at once impact the success or failure of any business. For that, entrepreneurs need to consider all these elements that may have an impact. This includes designing a business plan, procuring necessary financial support, implementation of that business strategy and lastly having a backup plan if things go down south. This backup plan is by way of an insurance policy to cover the various business risks. At first, identifying which types of risks your business faces is crucial and accordingly you can select a commercial insurance policy for it. This article mentions a few tips that can help you select a suitable coverage to safeguard your business. Let’s have a look –

#1 Understand your legal obligations

A commercial insurance is not mandatory for all. Albeit, the prevailing government regulations make it essential for an establishment to purchase a commercial insurance policy. For instance, organisations for whom the Workmen Compensation Act is applicable deem it necessary to have the backing of an Employee Benefit Insurance plan. Thus, the business owners need to be aware of the potential risks in their business and accordingly purchase a commercial insurance policy.

#2 Familiarise with the industry risks

No industry is the same as others. Hence, it is crucial to identify the risks associated to the business. The type of risks not only change between different industries, but also for different geographic locations. For instance, a professional providing advisory services can be sued for errors or mistakes whereas a food chain can be liable for any health concerns to its customers. For this reason, it is important to identify the risk based on the industry you operate. This way you can smartly select the right commercial general liability insurance.

#3 Determining the coverage for your insurance policy

Once you identify the risks involved for your business, the next step is to select an appropriate commercial insurance policy. Since budgets are allocated for all business components, selecting a policy within your budget is crucial. A cheaper insurance cover might be tempting considering your finances but might lack adequacy for the business. Whether you are looking for a marine insurance policy for your good, or a liability insurance cover to protect your business interest, make sure to choose enough coverage. Based on the damages, these amounts are determined and thus, a smart selection is essential.

#4 Select a reputed insurance company

Going with a reputed insurer benefits by ensuring timely settlement of claim along with coverage for multiple business risks. Moreover, reputed general insurance companies have a positive feedback among its customers and choosing one becomes a hassle-free experience.

#5 Understanding the policy terms thoroughly

There are myriad insurance policies that are available. These plans have different features and cater to different scale of operations. As a business owner, you must carefully understand what forms part of inclusion or exclusion and whether it can help to mitigate the various risk that surround your business. This will ensure there are no gaps in the policy coverage and if any, can be planned in advance.

These are some considerations to remember when buying a commercial insurance plan. Make sure to check the above steps chronologically to avail the best coverage for your business.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.