Archive for the ‘Economy’ Category

Getting To Know Microfinance Better

Wednesday, November 27th, 2013

Microfinance BetterA mechanism that was started in the developing countries a few years back to help the poor working people is microfinance. There are numerous microfinance institutions that have come into existence and these have been offering tremendous help to the people who want to start up their own enterprises. Through the microcredit loans that people receive they are able to set up their businesses and become independent.

Microfinance was started because facilities such as banks and other money lending companies could not be accessed by the poor working people. Banks and other financial institutions have certain strict requirements which the people having low incomes were not able to fulfill. For instance, the institutions would lend loans only to people who have a source of stable income. But most of the poor people do not have a stable income because they are usually self employed.

An important component of microfinance is microcredit. Through the microcredit facility small scale entrepreneurs are able to improve their businesses and augment their profits considerably.

Microfinance has actually become an effective strategy for combating poverty. Poor people are protected against the high rates of interests that are charged by the informal financial institutions.
Another advantage of microfinance is that it has empowered women to a great extent. Microfinance ensures that there is an equal access and distribution of finances and other resources. Many women have acquired the microcredit loans and have become self sufficient. The status of women has also improved at a tremendous pace from the moment microfinance mechanism was introduced in the developing countries.

Poor people are getting the opportunity of increasing their assets because they are able to build or improve their home, acquire properties, purchase poultry and livestock. People have actually become well equipped and can face any kind of unpleasant circumstances confidently with the help of microfinance.

Necessary tips to follow during recession

Sunday, September 1st, 2013

recession tipsEconomy is something that you cannot guarantee and that is why there are so many ups and downs within a few days. Each and every country in this world at some point of time or the other go through a period of recession. But the question is which among those countries can survive that recession. As a businessman you would obviously not want to go through a period of continuous loss but that happens when the market is down and there is a recession going on. That is why you will see many big companies firing so many employees at the same time. The main reason is to cut the cost to the company that would at least recover some of the losses that the company is running through. Given below are some of the tips that you can follow when there is a recession going on:

• First things first you will have to rethink and revise the marketing plans. Suppose your company is into making beauty products and if after a survey you see that the response of one product is not that good then it would be better if you stop marketing that product for a while.

• Secondly you can focus on the concept of online marketing. Local marketing incurs more cost than online marketing. So if your company already has a website then you should make the most out of it during the period of recession.

• Thirdly you should not focus on lowering the price of the shares immediately. First you should see what the other companies are doing and then take the action. Otherwise it can result on huge losses. You can lower the share prices to a certain extent that would balance the other incomes of your company. So it all depends on your strategy and perfect planning.

What are your debt relief options?

Friday, December 7th, 2012

debt relief,  debtDebt is a financial responsibility and every debtor must be very sincere about repaying their debts as early as possible. They can feel more comfortable after repaying the debt. Though debt repayment is not that easy and that is reflected by the available statistics. There are a few debt relief options which can be used by the people under debt. These options are available with financial advisors and can be had and availed easily.

Credit counseling, Debt Consolidation, Bankruptcy, Debt Settlement, and Minimum payments are some of the best options which can be availed by everyone who is facing repayment of sizeable amount. The best thing about these options is that they are available for everyone. Managing the credit status is important for getting the loans of any kind. Repaying the loans/ debts on time can improve the credit status quite considerably. The debt relief options can help people get rid of their debts easily and comfortably.

What is enterprise risk management all about?

Saturday, September 29th, 2012

enterprise risk management, business tipsEnterprise risk management is also known as ERM. It is a method which deals with an organized management of the risks that are associated with business undertakings. It is also used in achieving other objectivities of the business organization. It is a set of disciplinary measures that try to identify the areas of risk that can affect the business organization and make certain analysis and take the required measures in order to minimize the risks that are associated. In other words, a framework of managing the risks of a business venture is provided by the enterprise risk management.

It will help the company monitor the progress, determine a certain response strategy and make an assessment of the magnitude of the impact. It is a method that is used by most of the business organizations of the modern times and they are very effective when it comes to forecasting risks and taking adequate steps to take care of it.

What is weighted average cost of capital?

Sunday, August 5th, 2012

weighted average cost of capitalThe main areas of taking decisions in the sphere of finance are how to accumulate funds and where to apply them. Both of these decisions are very important on the part of the company. A company will only be interested investing in given project provided that it helps in increasing the wealth of the shareholders and yields considerable returns.

A company has specifically two important ways in which it can manage the requirement of capital of a new project. These two ways are equity and debt. The company is required to pay interest back to the debt holders, the process of which is known as cost of debt. It is also required to pay back dividends’ to the equity holders through the process of coat of equity. These two processes together regarded as the total value of procuring capital for the companies. Normally a company makes use of debt and capital for funding its new projects and that is where the need to calculate weighted average cost of capital rises.

What is weighted average cost of capital?

Monday, April 30th, 2012

weighted average cost of capitalWeight average cost of capital is abbreviated as WACC. It means the calculation of the capital cost of a firm where it considered that the capital in the categories are weighted proportionately. All the sources of capital, such as, preferred stock, common stock, debt that is long term and the bonds would be included in the calculation of the weight average cost of the capital.

When all the capitals are considered equal the result of weight average cost of capital would be increased when there is an increase of the rate and beta of the equity return.  The equation of the weight average cost of capital is calculated by the multiplication of each component of the capital by a weigh that is proportionate and then adding it up. A certain formula is issue by the business for discounting the floe of cash at the weight average cost of capital for determining the NPV.

What is outsourced book keeping and why is it a good choice

Sunday, March 18th, 2012

outsourced book keeping, managing accountsManaging your accounts and resources is one of the major functionalities of any business and more so in case of small and medium sized businesses. It is one of the most effective ways to manage your businesses’ finances with minimal effort required from your end. With various methods of payment, the choices are endless enabling them to choose one which suits them best. Outsourced book keeping has many benefits apart from the financial ones.

First of all, with experts taking care of maintaining the finances, it enables the owners the liberty and freedom to focus on the main business and plan on how to expand it further to generate more revenue. Another major advantage of  outsourced book keeping is the fact that one need not hire anyone else to manage the finances of the business as it is already been taken care of.  Plus, with no accounts department in the office, it clears out some space in the office as well making it look less congested.

Transferring money overseas the modern way

Monday, March 12th, 2012

With more and more people moving abroad for better employment opportunities and better pay the use of money transferring overseas has become an issue of vital importance. There are a variety of ways you can send money abroad without much trouble. The two methods which are used the most are the Western Union Money Transfer and the Money Gram. These are the two world famous companies in this transferring money business. Few other ways which will prove helpful to you are money transfers through credit cards or with the help of Interac Email facility for money transferring abroad.

You can also go for the PayPal methods of money transferring to your loved ones by paying a fee for their services. Another way through which you can transfer your money abroad is by SWIFT Network which you can avail at the various financial institutions. These have become very reliable and efficient ways through which you can transfer your hard earned money in any part of the world.

Limits for Garnishing Pay in the State of Colorado

Thursday, October 6th, 2011

Colorado is located in the western region of the United States of America & is mainly composed of a mountain domain. There have been many issues, pertaining to debt settlements in this part of the country. So if you are a resident of this land, you may be in a position to be pulled into the bars by your creditor for an unpaid debt.

A creditor is eligible enough to deduct his share from your wages regularly. However, he can only do so if you have a wage structure larger the one pre-specified by the judicial institution. Also, a company may impose you a certain deadline to pay back your outstanding debts, after which the firm can claim over garnishing your wages. Also, in some cases, a creditor may impose an additional rate of interest over your current loan or mortgage plans. You need to do a thorough study of these scenario while planning your repayment.

Looking for Jobs Before Graduation

Saturday, October 1st, 2011

With the markets waving to and fro every now and then, it is quite a challenge, yet dire necessity, to attain a promising job. People having a good skill set (a considerable expertise) or previous experience would not find it much difficult to gain growth prospects. However, when you are one of those millions of graduates freshly coming out of your college, there is a very big competition ahead of you, making it a real challenge to find a good first job. Here are some simple guidelines to make sure you build a powerful resume beforehand.

Keep in mind that having prior job experience, of any kind, helps. Even if you have worked as an intern, it reflects on your resume presenting your professional attire & sharpened skills. Do every kind of task (like workshops, seminars, etc.) that will add value to your profile. Also, have a strong network of potential contacts from your field.