Credit Managers?

Here are a few ways that customer credit limits established by the credit department can and should be used to help streamline the order release process while helping to control credit risk:

  • Establish a credit line for every active customer, including COD customers. Make certain customers are aware that credit lines can be changed from time to time, with or without advanced notice at the sole discretion of the credit department.
  • Always remember that credit line established for a customer is intended only as a guideline, and should not be used arbitrarily to deny credit to a customer.
  • It is important to update credit files and review credit lines at least once a year and adjust them based on the amount of credit risk associated with doing business with a customer. Major credit lines may need to be reviewed quarterly.
  • Work proactively with sales to determine what credit limit customers will need. Try to qualify customers in advance for higher credit limits. Why? Because it places a serious strain on the business relationship if orders are held by the credit department pending receipt of additional information needed to make an informed decision about whether or not to release the pending order.
  • Don’t rely on personal guarantees to ‘shore up’ a high-risk account when establishing a credit limit. In a worst case scenario both the company and the individual guarantor will file for bankruptcy protection.
  • When establishing a credit limit for a high-risk applicant that is a subsidiary of a low risk parent company, recognize that a parent company normally has no liability for the debts incurred by its subsidiaries.
  • Don’t over-use credit limits. Establishing appropriate credit limits will reduce the number of orders that end up on credit hold.

Category Categories: Financial

Manage Credit Card Debt

Carrying balances on credit accounts is a notoriously unwise credit usage decision, but it’s a trap into which many young money-users fall. If you have accrued a pile of credit card debt, it is vital that you turn your financial ways around and properly manage this debt to ensure that it is paid off as quickly as possible. By managing this debt intelligently, you can overcome it and venture into your financial future a reformed credit card user who is free from your previously overwhelming credit card debt.

  • Pay more than the minimum each month. If you pay only the minimum, paying off your credit card debt will be a lengthy process. Bankrate.com illustrates this by explaining that a $2,000 purchase will end up taking you 30 years to pay off if you only make the minimum payments on an 18-percent interest rate account.
  • Steer clear of your credit limits. If you haven’t already maxed out your accounts, don’t. The closer your balance is to your credit limit, the worse the impact on your credit score. Balances that nestle up to the credit limit are seen as a sign of over-extension.
  • Check your credit account statements several times a month. If you are still using your credit accounts, keep on top of your purchases by using your credit company’s online system to check on the account. This will help you keep track of how much you have spent and act as a reminder not to amass even more debt.
  • Keep a balance sheet if you find yourself frequently overcharging on your credit cards. Use an empty check register or a similar financial documentation sheet to keep a tally sheet of your credit card purchases. At the beginning of the month, write the amount that you can afford to charge and pay off that month at the top of the sheet, as if it were your account balance. As you make charges on the card, deduct these amounts from this available amount. When it gets to zero, stop charging; you are out of money.

Category Categories: Credit

How to Overcome Debt Problems

According to CNN Money, the average American family holds over $10,000 dollars in credit card debt alone. The average interest rate on cards is in the mid teens with some cards exceeding 20 percent. Overcoming debt problems seems impossible for some but the truth is it’s quite simple. It just takes time, discipline and patience.

Track Your Spending

  1. Make a list of everything you spend in a month. At the end of the month, review your list. You will likely find several items that easily can be cut from your spending.
  2. Create a list of bills and other expenses. Gather all of your bills and place them in a pile. List who you owe money to, the total amount and the amount due each month. With credit card and loan agreements list, also the interest rate.
  3. Pay down your highest interest debts first. These cost you far more money in the long run and usually carry heavy penalties for late payments. The sooner you can pay these off the better.
  4. Avoid paying just the minimum. With credit cards, the minimum payment just covers the interest. Pay more than the minimum each month if you can afford it. You’ll start clearing the balance faster.
  5. Put any left over cash in a savings account. Even small amounts start to add up. As the money accumulates you’ll have an emergency fund or extra cash to put toward debt.
  6. Ask for help. If your income isn’t sufficient to cover your monthly outgoings then consider credit counseling. A good credit counseling service can negotiate with your creditors and try to freeze interest and late fees. They can also help you with creating a reasonable budget.

Category Categories: Financial

5 Common Pitfalls For Wasting Money

However good you think you are with money, there are several easy mistakes that people often make, resulting in money being wasted. We’ve compiled a list of just some of the ways that people (unknowingly) waste money every day. Hopefully next time you reach for your wallet, you’ll think twice about fluttering away your hard-earned cash.

1 – Grocery shopping on an empty stomach: We’ve all done it at some point, filling the shopping trolley with lots of things that we don’t need, just because we’re hungry at that time. Have a meal before you go and concentrate on buying only the essentials.

2 – Not bothering to find the best deal: Unfortunately, not everyone is blessed with lots of spare time to locate the best deals…but that’s no excuse. Unless it’s absolutely vital that you buy the item there and then, bide your time. Check online and find where the best deals are. The savings will soon add up.

3 – Buying something just because it’s on sale: A good rule of thumb; in most cases, if you wouldn’t have considered buying it at full price, don’t buy it just because it’s discounted!

4 – Paying a dubious bill or added charge without questioning it: Most people keep mental tabs of how much they expect to pay on bills, however vague these might be. If you open a bill and there’s an unexpected charge or the amount seems higher than usual, the chances are that something’s wrong. Make a call and find out exactly what you’re paying for before you make any payment.

5 – Calling 0845 from a mobile: Sometimes, there’s no avoiding it. 0845 numbers always crop up and many of us only use mobile phones. 0845 numbers aren’t included in mobile contract minutes and can cost a small fortune if you’re left on hold. Most companies have numbers to call from overseas. These will quite often be local numbers and there’s nothing stopping you from using that number and using your monthly minutes.

Category Categories: Credit

Bridge Your Monetary Voids with Short Term Cash Loans

Are you in urgent need of hard cash? If yes, then there is no need of knocking anybody’s door as you can easily and instantly availed required funds through Short Term Cash Loan. You will be approved an amount instantly within hours after completing the loan application. Therefore, the loan amount is transferred in your bank account within 24 hours for its timely use. These short term cash loans are specific loans for and can be use in urgency.

These loans are called short term loans because you are applying for a loan which needs to repay within two weeks. Short term cash loans are based on your next paycheque. You are required to repay the loan amount with interest fee when you get your paycheque. If unable to repay on time, you can easily extend the loan duration by requesting your lender. But this term, borrower has to pay extra fee against the loan.

You can borrow ?100 to ?1000 under short term cash loans. But the loan amount depends on your monthly salary and repayment capacity. Note that short term cash loans are solely based on the verification that the borrower is a regular employee from last six months and gets a fixed salary. That is why the lender approved short term cash loan without collateral and credit check. Some lender may take a post dated cheque from the borrower as security, containing the borrowed amount and interest fees.

However some lender charges very high interest fees and late fee. So you must ensure that you take the loan only in emergency condition. Still, there is a need proper research which might results in fees short term cash loan. Also note that these loans approved without credit checks. This means even bad credit borrowers are given the loan instantly without any credit enquiries. Online application is best way to apply for the loan. For online process, you just need to file an online application form correctly. You might face disapproval in case of wrong or incomplete information. So, be particular about the information.

Category Categories: Debt and Loan