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Making a Car Insurance Claim

27 Jan

After an accident, it is always a good idea to get the police involved, even if an exchange of insurance details with the other party has occurred.  Some insurance companies will ask for a police report to back up the policyholder’s version of events.  This will help to determine who is at fault when it comes to paying out for damages incurred to vehicles or property. 

Ensuring each party exchanges insurance details and car registration information is the first step.  If it is possible to take photographs of the cars’ positions, damage to the vehicles and property, that may also be useful for future reference.  Calling the insurance company while the details of what happened are still clear in the mind is also a good idea. 

The insurance company will ask for all the information they need in that first call.  They will take the other party’s details from you so that they can liaise with their insurance company regarding the accident.  They will clarify exactly what has happened and make arrangements for the car to be inspected at an approved garage. 

Depending on the garage report, they will decide if the car can be repaired or not.  If the car is not to be repaired, this is what is known as a “write off”.  The insurance company will then pay out to the policyholder the value of the car, pre accident state.  If the car can be repaired then they will arrange to have the car taken away and will cover the cost of repair.

 
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Posted in Car Insurance, Insurance

 

Business Loans and Overdrafts

25 Jan

Perhaps the most common form of business loans are overdrafts and bank loans.  An overdraft is related to a business bank account and allows the bank’s customer to borrow funds, over and above the money contained in the account, to an agreed limit.  Most banks will consider extending an overdraft to business customers with a good track record of making repayments or being in credit.

A bank loan, on the other hand, is usually a separate sum of money that is borrowed for a set time period, with a repayment schedule that is fixed.  Interest rates on bank loans can also be fixed or variable.  To warrant a bank loan, businesses are expected to have a clear repayment plan detailed in their business plan; the bank will also want to know if there are any other financial commitments, such as other debts, business loans or an overdraft.

When approaching a bank or other lender, be sure to have the information they will want to see, including audited accounts, bank statements, plus fully costed indications of current and projected levels of trade.  Include cash flow forecasts to demonstrate sound business planning.

 
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Posted in Business Finance

 

A Brief Introduction to Forex

23 Jan

Forex operates in a global marketplace, trading in the buying and selling of foreign currency, to profit from market fluctuations.  It is also known as the foreign exchange or currency market.  Traders buy currency when its value is low, selling once it increases thereby achieving a profit.  Transactions can be completed within a matter of seconds.

The Forex market is extremely accessible; individuals can trade in any country from either their home or office.  A Forex account, high-speed internet access and deposit are required.  Many people also choose to use a Forex broker to advise and assist with their investments.  Each trader will have a trading platform, such as CitiFX Pro, which enables them to buy and sell currency.  Reviews of this platform, as well as many others, are readily available online.

Traders should ensure that they understand the market and research Forex fully prior to any financial outlay; overall performance records, company trading reports and user reviews might prove useful sources of information.

 
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Posted in Currency Trading, Forex Trading

 

Alternative Business Loans

21 Jan

Most business owners who are considering taking out a loan think first of all of making approaches to banks, building societies or other established financial institutions.  Whilst this is only natural, there are a number of other sources of advice and help and a number of different approaches to finding finance.  There is government funding, for example, which is offered to companies fulfilling certain criteria and can be a combination of grants and loans.  Funds are offered for a whole range of purposes, including renovations, new equipment, marketing, training or staff recruitment.

In fact, the UK government and European Union have created a funding programme valued at £2 billion in order to offer finance to new and established small businesses.  Amongst the business loans available are low-interest or no-interest loans and government guaranteed loans.

Low-interest or No-interest Loans

There are two national and eight regional loan schemes in this category.  As the scheme title suggests, these loans can be very good value and offer highly competitive rates.  Frequently, they are offered unsecured, so a guarantee or other collateral is not needed.  There are specific loans for young entrepreneurs and for women and they are directed at a variety of different industries and a number of geographical areas.  The range of finance available is from £1,500 to £10 million.

Government Guaranteed Loans

There are six national and eight regional loan schemes in this category, in the range £5,000 to £250,000.  The Enterprise Finance Guarantee Scheme helps small businesses to access business loans from private lenders by providing a government guarantee, which reduces the risk associated with lending money to small businesses.  This is particularly appropriate for companies that want to expand by moving into export markets.  One advantage of the scheme is that there are virtually no premiums to pay for the ‘insurance’ provided by the government and no additional security is required.

 
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Posted in Business Finance

 

Contents Insurance is Essential

19 Jan

Contents insurance is an absolute must for the responsible homeowner who could easily find himself out of pocket with unforeseen repairs or accidental damage.  Many providers apply an ‘old for new’ policy which ensures that, however old the damaged item is, you will never be out of pocket when replacing any item covered in the policy.

Contents insurance policies can be extended to cover the outdoors too; a benefit if you spend a lot of time and money on the contents of your shed or beautifying your garden.  Garden shed and garage contents would also be included here.  

Compare Contents Insurance

If you are looking to buy insurance online there are many providers out there such as Policy Expert, and it might be prudent to check them out carefully to compare contents insurance as many companies offer special deals for new customers and other seasonal specials which could produce some cheap contents insurance quotes.

Basic contents cover is likely to provide all contents up to a value of £50,000, new for old replacement; spectacles, cash held in the home (usually up to £500) and restricted garden contents.  If you have specialised garden ornaments and furniture it would be wise to extend the policy to cover these if not covered as standard.  Basic cover includes fire, flood and theft, fridge freezer contents up to a specified amount and replacement locks, keys and door entry system following a break-in at your property.  A 24/7 helpline should also be in place.

To amend or enhance any of the above and to add other provisos is easily done and you should speak to your provider about doing so before purchasing your policy.  However as circumstances change or a major new purchase or significant jewellery item is brought into the home do remember to inform your provider as quickly as possible to ensure you are fully covered.

Many providers offer significant discounts when adding extras once a policy has been purchased.

 
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Posted in Contents Insurance, House Insurance

 

What is Invoice Discounting?

17 Jan

Invoice discounting is a method that can be used by businesses to draw money against invoices and improve cash flow.  Contrary to invoice factoring, the business retains full control of its own sales ledger. 

Invoice discounting is not suitable for all types of business.  It is only available to businesses that sell services or products to other businesses on credit.  The business must usually have an annual minimum turnover of £500,000 and a proven track record. 

The way invoice discounting works is that the discounter will first carry out a check on the business, including its customers and its systems.  If the check’s results are acceptable, the discounter might choose to advance an agreed percentage of the total amount of the sales ledger outstanding.

The invoice discounter will charge a fee to the business, which is usually a percentage of the total value of the invoices or a fixed fee that the two parties agree.  There is also likely to be a charge of interest on the net amount that is advanced.

Once details of the outstanding invoices have been agreed, the discounter will make a percentage of the total amount outstanding available to the business to draw on as it is needed.  When the business receives payment of any of the invoices, this is passed to the discounter to reduce the outstanding balance.  The business can also notify new invoices to be assigned to the discounter, to further increase the funds available.  This can be a long-term arrangement with available funds growing as a business expands. 

One benefit of invoice discounting is that because the business retains control over collecting its outstanding debts, customers are not normally aware that invoice discounting is in place.  The discounter will usually, however, keep a check on the procedures of the business for managing the sales ledger to make sure they are effective.  If invoices remain unpaid, the business might opt for the discounter to become involved in the credit management at that stage.

 
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Posted in Factoring, Invoice Discounting, Invoice Finance

 

Associates of the Foreign Exchange Market

15 Jan

Five categories of associates make up the foreign exchange market, purchasers, corporations, speculators, investors, investment banks, commercial banks and central banks.  These groups have varying roles to play in the foreign exchange market, but all trade currencies at varying levels.

Purchasers

Purchasers within the foreign exchange market often consist of members of the public, including holidaymakers, immigrants and visitors.  These groups of people will need to exchange currency when they travel in order to purchase goods and services at their destination.  In addition, those belonging to the purchasers group buy and sell in accordance with the current exchange rate and make up a considerable proportion of the foreign exchange market. 

Corporations, Investors & Speculators

Corporations are important within the market, because they are involved in the importation and exportation of goods and services and in doing so they need to exchange currency to make or receive payments.  Foreign exchange investors and speculators require currencies to purchase and sell tools for investment such as shares, bonds, bank deposits or property.

Banks

Large commercial and investment banks buy and sell currencies at exchange rates they declare through foreign exchange dealers.  Commercial banks deal with both customers and interbank’s, generating profits utilising what is known as the bid price.  The bid price is the exchange rate the buyer is willing to buy at.  The offer price, on the other hand, is the rate at which the seller is willing to deal at.  The difference between these prices is called the bid-offer spread.  Profits are created through the speculation of the rise or fall within the exchange rate.  Central banks act as banks for governments who trade currencies, not just for making profits, but also to facilitate government monetary policies and assist with fluctuations in the value of currency from a particular country.

 
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Posted in Currency Trading, Forex Trading

 

Different Types of Health Insurance

14 Jan

There are several different types of health insurance, also known as Private Medical Insurance (PMI), and the policy that a person decides to take out depends on what type of cover is required and how much a person is prepared to pay.

Premiums vary enormously and are subject to criteria such as medical history and age of the insured. Generally, the broader the cover of the policy, the dearer the monthly premiums tend to be. It is also worth noting that health insurance premiums usually increase annually.

The price of monthly health insurance premiums can be lowered substantially by several factors. Choosing to exclude specific areas such as expensive private hospitals and specialist services such as physiotherapy or convalescent care that could just as well be met by the NHS, are examples of ways that a health insurance policy can be tailored to lower the cost of premiums. 

People are advised to choose a policy that suits them. If a person is generally in good health, it would be excessive and expensive, to take out a fully comprehensive policy. Individuals in this category would do just as well to get a policy that covered hospitalisation costs only.

Monthly premiums are also affected by who is covered under the policy. An individual’s cover is more expensive than family cover, which covers parents and two or three children for a lower overall price per person. Group medical insurance is a cost effective way of buying health insurance, and many companies offer it as a perk for their employees.

 
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Posted in Healthcare Insurance, Insurance

 

Why Invoice Finance is Ideal for a Growing Business

13 Jan

If you have ever started your own company, you will know that a growing business can become a cash-devouring monster. This may sound strange to the uninitiated, but it is true, a growing business needs money for new tools and machinery, stock and advertising. To become established you might have to provide your debtors with favourable payment options, while suppliers may not be willing to grant you more than 30 days grace, because a new or recently formed company does not have any credit record.

You could, of course, approach a bank, but they usually require collateral for loans and their application procedures are cumbersome and time consuming. If you need cash fast, invoice finance is often the only solution.

The approval process is quick and uncomplicated; all you have to do is prove that you have debtors who owe you a certain amount of money. The invoice finance company will probably visit your business premises to familiarise themselves with the way your company operates and to study the payment history of your customers.

Once your application has been approved, the money can be in your bank account within a day or two. The invoice finance company will then usually take over the collection of your debts and deduct whatever you owe them, before paying the balance.

Every time you produce a batch of new sales invoices, you forward it to the invoice finance company and they will give you a further cash advance. Therefore, the more you sell, the more cash you have to finance your business operations. This solution makes invoice finance ideal for a growing company.

Just keep in mind that if your customers do not pay their accounts on time, you will be liable for the money due, since the factoring company has already given you a cash advance. However, if you opt to go down the non-recourse invoice financing route, the factor bears the risk of any unpaid debts.

 
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Posted in Factoring, Invoice Finance

 

Compare House Insurance Policies

11 Jan

As the country struggles through difficult financial times, more and more people are looking at all areas of their finances in a bid to save as much money as possible.  Some of the main expenses being looked at, in order to make savings, include utilities in the home, as well as insurance policies.

There are a huge number of insurance companies with ads offering to provide cheap home insurance for their customers.  A recent survey found that more than eight out of ten Britons were willing to search the internet in order to compare house insurance premiums and find the best deal.

Society today is getting much more used to using the internet and it is one of the first places customers turn when they want to find cheap house insurance.  It is not all about the money though; the research also found that many people use price comparison sites, as it is a quick and easy way of gaining the peace of mind that they are getting the best deal on their insurance.

The fact that people can visit a price comparison site and not have to spend a lengthy amount of time visiting individual sites and filling in their details for a range of different companies, is a big factor when it comes to buying insurance cover.

The accountancy firm that compiled the survey also found that around 34% of people in the UK with insurance policies has switched providers over the past year in order to secure a better deal.

 
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Posted in House Insurance

 
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