Tuesday, October 30, 2012

$50,000 Personal Loans With Bad Credit: Beating The Financial Quagmire

Large loans are not easy to secure when an applicant has a poor credit history, but the good news is there are loan packages available, even to those with the lowest credit scores. Getting a ,000 personal loan with bad credit is not out of the question.

True, it might seem highly unlikely to get loan approval with low credit scores, especially for such a large sum of money. But if your application is strong enough to survive scrutiny, and does enough to tick the important boxes, then approval is possible. Of course, choosing the right lender is important too.

The great advantage in securing a large personal loan is that it can make a huge difference to clearing existing debts. But, remember to spend time considering the ideal terms in line with your budget and needs. When a strategy is decided upon, the chances of the loan application succeeding increases dramatically.

Know Where To Go

Banks seems to have had their day in the sun. This is down to a few reasons, but principally because the lending options have increase. Banks are not the only option when seeking a ,000 personal loan with bad credit, with their terms typically tough. Now, online lenders provide an affordable alternative.

Online lenders offer a superior loan product because they have had to survive a very tough industry. Their niche market is in lending to bad credit borrowers, making loan approvals with low credit scores a reality. All that is needed is for the income level of the applicant to be enough to meet the monthly repayments.

Amongst the principal attractions is the lower interest rates that they charge in comparison to the banks, but the repayment schedules are more flexible too. In fact, large personal loans are set to be approved so long as the criteria are met.

Income and Security

The role that income plays in securing approval on a ,000 personal loan with bad credit is not small, but neither is it the principal issue to decide the matter. What is more important is how the income compares to the existing debt, and if there is sufficient excess income to cover the repayments of another loan.

What we are referring to is the debt-to-income ratio that the applicant has. The accepted lending limit is set at 40:60, which means a maximum of 40% of available income can be used to repay loans. So, it does not matter how much money is actually earned, but how much of the income is left over to make the repayments.

Getting approval with low credit scores is possible if the ratio is stuck to; it is something lenders insist on. And if the 40% limit is breached, then the application will be rejected. In that event, finding some form of security can help the cause. Whether collateral or a cosigner, the chances of getting the large personal loan are definitely enhanced.

Cosigners or Collateral

Security is something that lenders like to see included in an application, but there are differences between an item of collateral and the addition of a cosigner when seeking a ,000 personal loan with bad credit. Collateral provides extra security, but it can be tricky finding an item worth ,000. A cosigner is a more popular choice.

A cosigner offers a guarantee that the monthly repayments will be made, and this practically guarantees approval with low credit scores. This is because lenders always prefer to receive cash than have to take control of the item of collateral. Simply put, finding a cosigner is the superior choice when seeking a large personal loan.

Friday, October 26, 2012

The FDCPA Against Collectors

A debt collector may not be held legally responsible in any action brought under this subchapter if the debt collector shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error. In a nutshell, there had to be intent on the part of the collector. A bona fide error is not a willful violation. Alternatively any collector who violates the Act can be held legally responsible for his actions. You have a right to sue a debt collector who has violated the act notwithstanding error. Additionally, an employee of an original creditor does not fall under the FDCPA because the Act specifically states "someone who in the day to day operation of their job- collects debts and is a "debt collector". (Who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another).

Many employees of banks, furniture stores and medical facilities are not debt collectors. The law covers debt collection agencies and debt collection attorneys or even original creditors if. they regularly collect debts in their daily duties "(California statute). - Not all states may support "original creditor exceptions". Remember too that if it is to your benefit, State law can rule over Federal: "a State law is not not in agreement with Federal FDCPA if the protection of such law afforded any consumer is greater than the protection provided by the Federal law". What this means is that Federal always rules if the State law conflicts but just because the State law may offer more protection, doesn't mean it is a "conflict". If the two laws DO conflict with each other than Federal wins. It's called the supremacy Clause and it is found in the U.S. Constitution.

So, if you have been physically abused or abuse by a collector you can take action.

Generally the Fair Debt Collection Act Prohibits:
-You cannot be harassed
-They cannot tell third parties about the debt
-They cannot call you after 9 p.m. or before 8 a.m.
-They cannot threaten you or use scare tactics
-They cannot legally sue you for an expired debt
-They cannot contact you once you put them on notice not to
-They must be able to verify the validity of the debt

People fail to meet their credit obligations for a variety of reasons. These range from over-extension of finances to unemployment and illness. Whatever the reason, every person is protected by the federal Fair Debt Collection methods Act. Congress passed this act to protect consumers from harassment by debt collectors. Personal, family, and household debts are covered under the act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

Mini-Miranda Warning
If a collection agency or collection attorney forgets to add the mini-Miranda in its communications it can result in violations. Any communication with a debtor must always include the mini-Miranda specified by the Act. 15 U.S.C. 1692(e)(11). This notice is usually placed on all dunning letters utilized by collection agencies. For violations see smith v. Trans world Systems, Inc., 953 F. 1025 (6 th Cir. 1992).

Limitations on contacting the consumer
A debt collector may only contact a person between the hours of 8 a.m. and 9 p.m. Debt collectors may not contact the consumer at his job if the debt collector is aware that the employer prohibits personal calls. A person may notify a debt collector in writing if he or she does not want any further contact with the collector. Once this notice has been received, the debt collector must stop all communications, except to notify the person that a specific action will be taken.

Can debt collectors tell someone else about your debt?
No! A debt collector can discuss your debt only with your attorney, a credit bureau, the creditor, and the creditor's lawyer. However, the debt collector can contact other people to find out where the debtor lives or works.

What debt collection methods are forbidden?
Debt collectors may not harass, intimidate, threaten, or embarrass you. Debt collectors may not make false or misleading statements, such as falsely associating themselves with a government office or credit bureau. They may not use misleading or false threats of imprisonment or criminal charges.

Threatening to Take Legal Action
Collection agencies often threaten to sue debtors. The FDCPA prohibits collectors from stating that he will take action that cannot be legally taken or that is not intended to be taken. 15 U.S.C. 1692(e)(5); Case law:Bentley v. Great Lakes Collection Bureau, 6 F. 60 ( Cir. 1993).The FTC has indicated that collectors may not even imply that an action will be taken unless such action is legal and there is a reasonable likelihood at the time the statement is made that such action will be taken.

What to do if a debt collector violates the Act
Keep detailed records of any communication you have with the debt collector. Include time, date, and the name of the person with whom you spoke. Keep a copy of all written correspondence between you and the debt collector. Also, if a debt collection agency orders your credit reports before they have validated the debt then they may have violated the FCRA and the FDCPA. You may sue a debt collector.FDCPA-Sec.. - Civil liability

We have a sample letter for FDCPA violations

We also have a debt collection log sample letter to keep all notes

Read all Consumer Statutes> (opens in new window)

Collection agency laws by state

Restrictions on garnishments

FDCPA opinion letters by the FTC. These letters are a gem!

Locate a collection agency

Statute of Limitations to sue under the FDCPA
The FDCPA provides for a one-year statute of limitations. 15 U.S.C. (d). The limitation period begins to run on the date a communication is mailed, and cannot be extended by the Rules of Civil Procedure. Case law: v. U.S. West Communication, Inc., 967 F.2nd 259 ( Cir. 1992).If you are going to sue for damages under the FDCPA you must do it within one year or forget it.

Can you sue the Original Creditor for FDCPA Violations?
in the vast majority of cases, creditors do not have any liability arising from the FDCPA. However, the term "debt collector" does include creditors who, "in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts." 15 U.S.C. (6)(A). But... and this may be a long shot, you can try to claim "negligent referral" by an OC who sends the debt to a CA without ever billing you.

What is considered debt validation
This may be one of the most confusing aspects of the FDCPA. Debt validation means to have the CA prove the debt, (1) belong to the right debtor and (2) not already paid prior. Many CA are now fighting back against a debtor's request for VOD because they claim, the FDCPA states they only have to prove it is your debt and not paid prior. This is an area that will definitely need attention from lawmakers to clarify. However, in our opinion, VOD does include proving the debt is valid beyond just showing it belongs to the right debtor. So stick to your guns when requesting proof of the debt because you have an absolute right to make sure the debt is valid in its balance as well as contract information. Be concise in your request for VOD. Don't ramble on and on asking for everything under the sun, because that may not be supported by the FDCPA. Ask for your signature, balance due, posted payments, any credits and date of last payment and activity. These are all valid requests in our opinion and could be effectively argued under the FDCPA for VOD.See this article for more about VOD>

Wednesday, October 24, 2012

Knowing Your Revenue Streams

KNOWING YOUR REVENUE STREAMS
To maximize your revenue from martial arts school, you must have a clear understanding of your revenue streams.

Read these carefully. Not all will apply to you, but wouldn't it be nice if they did? One clear requirement for successfully utilizing most of these is that you will have to use agreements rather than month-to-month programs.

Revenue Stream 1
Down Payments on New Student Agreements

Also known as a registration fee, this is the initial investment a student makes to join your school. Typically, this is at least two months' tuition. For instance, a program is 9 down payment/registration and per month for 12 months or ongoing.

Revenue Stream 2
Down Payments on Renewing Agreements

This is the initial investment a student makes in order to renew or upgrade in your school. The best strategy for this has been the Black Belt Club. If you do not have a solid system for upgrades and renewals, this stream is dry for you.

Revenue Stream 3
Monthly Tuition
This is the lifeblood of your school. As you grow your school, your monthly tuition should grow as well. Ideally, your monthly tuition would cover your base operating expenses each month. For instance, if all the monthly expenses, including your salary, totaled ,000, your monthly tuition collections from your billing company would cover that amount. In that very healthy scenario, these other streams are 100 percent profit. Mind you, this is not easy to accomplish, but even 75% of expenses paid from your billing check would be good.

Revenue Stream 4
Product Sales
Consider your retail shop as though it were a separate business. Open a separate business checking account for your retail, and deposit all gear sales revenue into that account. Use an American Express card or any other credit card that requires pay-off each month to pay for equipment purchases. When you place an order, pay for it with your credit card. This gives you up to 30 days to sell the equipment to your students. As they pay for the equipment, deposit the funds into the retail account.

When the credit card bill for the equipment is due, pay for it with a check from the retail account. Since you are usually doubling your money, this retail account will grow fast. Your credit rating will grow, as well as your rewards for using the card. Ideally, you will build a large cash reserve and save money on plane tickets and vacations, too.

Sell thousands of martial arts products and supplies directly from your website. You choose which products to sell, set the retail price, and still only pay wholesale. Veteran schools have reported that they have tripled their retail sales using this valuable service.

Best of all, student payments go straight into your bank account and you are billed your wholesale rate, allowing you to better manage your cash flow and not have to wait for your referral check to arrive.

Revenue Stream 5
Special Events
Even if you don't charge for testing, you will want to host at least one special event each month for your student body. These can range from nunchaku seminars to board-breaking, "Fear Into Power" seminars. These are not only pretty easy to manage, but they are a lot of fun. My nunchaku seminars were always packed with 30 to 50 students and would generate around 0-,000 per event. The fee of included two rubber nunchaku to use in the class, so it was almost pure profit.

Birthday parties would also go under this category. A two-hour 0 birthday party is not only a revenue generator, but also a lead generator. Some schools have at least one birthday party per week, so it's a proven winner.

Revenue Stream 6
Testing/Grading Fees
I didn't include these with Special Events, because exam fees are a little different from special events. Most exams for stripes occur in class, and they usually don't require a fee. The main graduations on the weekends require additional work and staff, so it's reasonable to charge for these events.

Typically, exam fees range from to and increase with rank. Black belt exams can be as much as 0 to 0 but, to justify this higher fee, you should provide additional prep classes for the black belt candidates.

Some schools are large enough that they rent auditoriums to showcase their graduating black belts or to conduct the exam. The exam fee should cover these additional expenses.

Revenue Stream 7
Fast Track Testing
This is a touchy subject and has to be handled carefully. The idea is simply that some people are willing to invest more money to get through your belt system faster.

Revenue Stream 8
Paid in Fulls
In recent years, Paid In Fulls (PIFs) have made a huge comeback. MASS and other such organizations have championed the cash out as a way of getting maximum revenue from a student base that will more than likely drop out anyway. As much as I dislike the idea of treating all students like potential dropouts, smart use of Paid in Fulls can significantly boost your bottom line.

Revenue Stream 9
Renewals and Upgrades
Black Belt Club and Masters' Club are the most popular and proven renewal programs. For now, we want to focus on the renewal as a revenue generator.

Common practice has been to upgrade someone to a BBC or MC and replace his New Student agreement or program with the more expensive BBC or MC program. In most cases, the renewal had a registration of 9 or so, and tuition increased per month.

Another popular strategy is to keep the student on their current tuition plan, but charge them a one-time or annual fee to upgrade to BBC or MC. For instance, a student is paying 0 per month for her current program. A BBC or Masters' Club upgrade is presented as an annual upgrade for 0.

Revenue Stream 10
Discounting a Past-Due Contract
When I was a publisher for Martial Arts Professional magazine, we sold advertising to clients who wanted to reach and sell to our readers. On occasion, an advertiser would want to cancel the contract. In the world or publishing, the process for doing this is called shorting the contract.

In exchange for committing to a set number of ads, the advertiser would be given a discount for each ad they placed. Shorting the contract meant that the ads the client ran would be re-billed at the one-time rate and, if he paid the difference, we'd release him from the contract.

Revenue Stream 11
Career Training Programs
For years, I've taught the importance of creating a Leadership Team of assistant instructors to help you provide a higher level of service to your students. Typically, the Leadership Team is a by invitation only program for Black Belt Club members.

More and more schools are expanding Leadership Team programs into a precursor to a full-blown Career Development program that trains students to become martial arts school owners and instructors. Students pay for the right to attend staff meetings, practice role playing, and venture "into the kitchen" of the school.

Tuition for these programs are as high as ,900 for a two-year course. Keep in mind that, in order to offer this, you really have to know this business cold and create a solid curriculum on par with a vocational school, because, in a sense, that's what you are offering.
Student Audit

This is not so much a revenue stream as a way of plugging leaks in your cash flow. The Student Program Audit is a single sheet of paper with three columns and 11 rows. The columns are for a student's first, second, and third programs within a school. Typically, these are New Student, Black Belt Club, and Masters' Club, but any program will work.

The first six rows are the various payment options a student might use in your school. The next two are the start and end date for the program, which are followed by a check mark to make sure the Party Responsible for Paying is noted in the agreement and that the injury waiver has been signed. Your job is to audit each and every student's file to make sure you have each of these important items in the student's folder.

The first few times you do a Student Audit, it is like found money. You will be amazed at how much important paperwork is missing. More than that, you will be stunned at how many students are training who have expired or have no record of payments.

Staple one Student Audit to the outside of each student file.

Build Around Your Core
Not all of these revenue streams will be for you. That's why the Core Dynamic of Finding Your Own Voice is so important. I personally helped create many popular trends in this industry. I also made it clear what programs I would never teach, even though I developed and sold them. What is good for me may not be good for you. Know what you like, and why you are doing this for a living, and then build strong revenue streams around those core programs.

Thursday, October 18, 2012

Real Estate Investing

Hard Money Lending is Improving Your Community

Recent troubles in the real estate market have left many homes vacant and often unattended. These vacant or blighted properties cause many problems for local communities. As the level of decay increases the houses become safety and fire hazards, attract criminal activity and vandalism, and lower the property values in the neighborhood. These blighted properties thereby increase the demands for local government services, such as police and fire, as well as code enforcement. Local officials spend a lot of time trying to track down the owners of these properties to enforce building codes, but often to no avail.

Local communities would greatly benefit from a renewed interest in these vacant properties. But with banks cracking down on their lending policies, many real estate investors have become unable to obtain traditional loans through banks, and other financial institutions to purchase and rehab these properties. Many savvy real estate investors however are now turning to hard money lenders to finance their purchase and rehab of these vacant properties.

Hard money lenders assess the value of the property and make a lending decision based on the property's equity. An individual's credit score is much less of a factor in these lending decisions; so many more real estate investors are able to obtain these loans. As more of these properties are purchased and improved, the property value of the entire neighborhood increases.

These hard money loans are short term loans, often with higher interest rates. But for the purpose of purchasing a vacant property, improving the property, then reselling, this type of loan is a perfect fit. The loan can be obtained quickly (much more so than a conventional bank loan), and used to purchase and improve the property, then a quick resale recovers the investment and returns a profit.

With more real estate investors turning to hard money loans, more vacant properties are getting a new life. These properties are being refurbished and sold, bringing new families to these previously blighted areas. With the removal of these "eye sores" in the neighborhood, property values increase, and the drain on local government services are relieved. Overall community vitality is greatly improved by the removal of these blighted properties, and hard money lenders are facilitating this community renewal.

HMBCribs.com
Hard Money Bankers, LLC

Friday, October 12, 2012

Warning Signs of a Changing World Economy

Since the early 90s there has been quite a bit of change in the world economy. This change can be seen in how countries interact with one another, how many Third World countries are coming out of poverty, and the general shift in how work is being done. In this article multiple ways in which the world economy has changed will be examined, both for the good and the bad.

One of the biggest signs that the world economy is shifting is the way in which Third World countries, such as China and India, have come out of near poverty to become major influences within the world economy. They have quickly surpassed such major economies as France, the United Kingdom, and Germany to become major powers, and have a major influence over the money in the world. These countries, once known for mediocre products and an overabundance of people, are now producing many of the world's major brands and shipping them throughout the world. India is producing top-notch engineers, IT professionals, and business professionals at an astounding rate.

While these countries are thriving, other countries are still continuing their battle to just simply get by. These impoverished nations struggle to provide food, water, and basic essentials such as schooling to their population. It is true that the rich keep getting richer and the poor keep getting poorer. Unfortunately for these nations their struggle may continue for decades to come.

One of the largest shifts that we see here in the United States is a transition away from "normal" jobs such as mining, manufacturing, and farming. These industries, once a stronghold in the United States, have largely been outsourced, or were taken over by major corporations that have reduced much of the major workforce in these industries. Knowledge work, such as banking, finance, technical computer programming, account management, and high-level engineering are all much more valued in the United States. This is in stark contrast to what the United States was built on in prior centuries.

Another sign of the changing economy is how integrated much of the world is. A person in the United States can now easily contact somebody in India, China, or Romania and outsource much of the work that would normally be done by that individual. High-speed Internet and faster computers have both contributed to this factor. As the Internet and computer speeds continue to increase, so too will the world's interaction. While many normal individuals will not see this change, large corporations are taking advantage of these operations now.

Another major change in the world economy has just manifested itself. With the downgrading of the United States credit rating by the S&P, many countries will reevaluate their current partnership with the United States. Although most may not change their current relationship, there may yet be ripples that will affect many countries, including the United States in the decades to come. With a chink in the United States armor, there is a greater possibility that other countries will step up and attempt to lead the world.

It is reported that 8.75 million jobs were lost during the recession. These jobs mostly paid moderate to high salaries and wages. One example, talked about in a recent article, stated that a woman who had earned an hour as a health department caseworker lost her job and is now working for an hour in an after school program. Her husband, who had a ,000 a year job, was laid off and is currently unemployed. There are literally millions of stories like this and the real devastation will probably play out for decades to come. Consumer spending accounts for 70% of the U.S. economy and with little chance of regaining these decent paying jobs, consumer spending will probably dip lower than it already is. In the face of data such as this, a quick recovery of the U.S. economy is unlikely. This represents just one of the signs of a changing world economy and one can wonder if this is temporary or a permanent leveling of the world economy field.

We must continually stay vigilant in this ever-changing world and remember that we must adapt to whatever situation may present its self. Written by John F Smalley

Monday, October 8, 2012

Choosing the Right Pool Builders: A Checklist

You've always wanted a pool and now, after years of saving and budgeting, you're finally ready to make the big leap. You're excited and you want to get started now, especially with the blazing heat and the stir-crazy kids.

No matter how desperate you are to get the ball rolling, you need to remember that a getting a swimming pool is a big decision a permanent fixture in your backyard. There is a process you need to go through to pick pool builders that will build an aesthetically pleasing pool that fits into your budget without cutting any corners on the quality of construction.

There are tons of Pool Builders out there, and they all claim to be the best. How do you tell who is really the best option for your life and your budget?

Follow this checklist of the top five things to consider when choosing which pool builders are right for you:
1. Ask the pool builders for a list of references. Contact those people and ask how they feel about their pool and the service that they received. If the pool builders are unable to provide great references, or if they do not provide any testimonials from happy customers this tends to be a bad sign.

2. Take your time. This is a big decision and is not something that you should rush into. Instead, comparison shop and get bids from different pool builders. And don't take the first design you've been shown if it isn't exactly what you want. Only entertain working with pool builders that will work with you to find the pool design of your dreams.

3. Get out there and see their showroom. Make sure that the employees are helpful, knowledgeable and respectful. After all, you will be dealing with these pool builders for an extended period of time and you want to know that they're doing everything they can to make you happy with the entire process and the finished product.

4. Don't sign a contract during your first appointment. When it's all said and done, the first contractor you meet may be the best. But, as with any investment, don't sign anything without taking the time you need to explain exactly what you want, and to get the promises you need in writing. You have to interview several pool builders to know that you are making the right choice,

5. Make sure you have any promises or "deals" in writing. Some pool builders may offer the world while they are trying to get your business and then drastically change their tune later in the process. If your pool builders offer you some amenities for free or a discount on the construction process, get them documented clearly, so you avoid any confusion.

The lesson that you should really take from this is that you are looking for the best people in addition to the best prices. If you call around and only try to get the best quote, odds are you will not only end up with a disappointing pool, you will also get hit by a bunch of unexpected charges from pool builders that make their living providing poorer services and products.

So, when you are trying to pick out your ideal pool builders look at their past work, their staff, and don't be pressured into signing a contract you don't understand.

Wednesday, October 3, 2012

Business Administration Tips

The following article suggests useful business administration tips for all those contemplating a career in management and administration. Read on...

Management is defined as the skill of coordinating all the organizational resources, be it human, financial or material, in order to achieve organizational goals. A degree in business administration equips a person to perform this management function in the best possible way. So, for all those who are contemplating a career in business management and administration, given below are some useful business administration tips, with regards to management education, as well as the job profile that you can expect in future.

Business Administration Tips on Management Education

To make a career in this field, you will need an Master of Business Administration (MBA) degree from a recognized college or university. The degree provides education in all the major business administration and management fields. Here's a list of subjects that you will study in a business school:
1. Marketing
2. Financial Management
3. Accounting
4. Human Resources Management
5. Statistics
6. Economics
You will learn about basic theories and principles of management as well. If you get into a good business school, there will be guest lectures by some high profile professionals from the corporate world, which in itself is a great learning experience. Solving case studies, giving presentations, participating in group assignments, working part-time in a company or doing internships, are some other things you can look forward to doing at a business school. Once you pass out of the school, you will have a complete knowledge of management process in business administration. You may read further on benefits of an MBA degree. A management school will also equip you in all the required management skills, the list of which is given below:
1. Planning
2. Organizing
3. Decision Making
4. Problem Solving
5. Communication
6. Hiring
7. Controlling
8. Customer Relationship Management Skills
9. Leadership
10. Team Building
11. Negotiation Skills
Business Administration Tips on a Manager's Job Profile

The role of a manager in business administration, depends on the kind of organization he is in. Initially, his job may be limited to his chosen field of specialization, i.e. he might be a manager in the marketing department or in the finance department. However, as he moves from junior management to mid career level, he will be heading one of the departments in a company and performing functions of planning, organizing, staffing, directing and controlling, in his department.

Planning
Planning involves setting both short-term as well as long term goals and arranging them in a logical sequence as to which one needs to be achieved first and so on. A manager needs to plan for what to do, how to do, when to do and by whom it should be done.

Organizing
This function mainly involves setting up a structure in the department or the organization. Setting responsibilities for each and every person or department, how they will correspond and work together, who will supervise whom, all fall under this management function.

Staffing
A manager needs to hire right people for any given job. So, he invites applications, interviews people and then hires them to work in the organization.

Directing
A manager motivates and leads his team so that they give their best to meet the organizational goals. A manager has to find the right balance between being sensitive to his staff needs, as well as getting the job done in time

Controlling
The manager assesses and keeps a check on the performance of his employees so that the desired results can be achieved. There is a set "rewards and punishments" formula in every organization, which a manger follows to ensure maximum work output from his employees.

To perform the above functions, a manager needs to be creative, fair, sensitive to the needs of others, a good leader, motivator, problem-solver and a sound decision maker. When he reaches senior management, he will be required to over look all the departments in the company. A person with a degree in business management and the required managerial skills, can become the CEO of a company.

Here's hoping that the above given business administration tips have solved your query, "what is business administration and management?" satisfactorily. An MBA degree will open a host of career opportunities for you in the corporate world. So, without waiting any further, start career planning today!

Monday, October 1, 2012

Net 30 Accounts:How To Build Business Credit The Right Way

As soon as a company (vendor) extends a line of credit to a business on "Net 30″ day terms you can purchase their products or services up to a maximum dollar amount and you have 30 days to pay the bill in full.

So if you're business were to purchase 0 worth of products today, then that 0 is due within the next 30 days. Keep in mind it's always best to pay 15 or even 20 days ahead of the due date so your company credit report reflects that your business pays 15 or 20 days sooner than terms.

It's simply a matter of asking yourself if you would rather have an 80 paydex score or a 90 paydex score?

First let's review some key facts that you should know about Net 30 Accounts:

1) You can obtain products and services your business needs and defer the payment on those purchases for 30 days, thereby conserving cash flow. This is called "Net 30″.

2) When your first Net 30 account reports your "tradeline" to Dun and Bradstreet, the DUNS system will automatically activate your file if it isn't already. This is also true for Business Experian and Small Business Equifax.

3) Some net 30 vendors will approve your company upon verification with as little as a Tax Identification number and a 411 business listing.

4) Some vendors will require an initial prepaid order before they can approve your business for net 30 terms.

5) You must be patient and allow time for the vendors' data reporting cycles to get into the reporting systems of bureaus like DNB. In some instances a supplier may send their data file to a business credit bureau once every 45 days.

6) It takes a minimum of three reporting tradelines to establish a business credit score (Paydex) with DNB.

So what's the best way to build business credit with net 30 vendors?

Once you open an account with a vendor, you must consistently use it. For example, when you receive a 0 Net 30 credit line, you must make purchases from that vendor each month for a period of at least a year.

You will build strong scores in as little as 120 days, but to fully optimize your credit profile you need to use the accounts longer.

Don't make the big mistake of making just one purchase in the first month, then another in month four and another in month ten. You need to consistently use all your new credit lines each and every month.

Make purchases and then pay-off those purchases in full at least 15 to 20 days early (by day 15-10 in the case of Net 30 accounts) every month.

By following these steps you will be building business credit history for your company in the most effective way possible. Consistency and responsibility is the key to maximizing your scores and enabling your business to qualify for larger credit limits, favorable terms, and the lowest rates possible.