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Is Car Leasing the Best Choice for Your Business?

Is Car Leasing the Best Choice for Your Business?
Maybe you are just starting your business and choosing a new car for it. Perhaps your company is so big that it needs multiple vehicles, requiring a fleet management company for your business. The same question arises – is it better to lease or to buy the cars you need? Both options have their benefits, but there are many things to consider before making a choice. These include tax implications, financial commitment, and also the question of ownership. Let us look at all of these elements that can be deciding factors when choosing between buying or leasing a car for your company’s needs. What is car leasing? Business car leasing is a form of a financial agreement between a business and a finance company where the business owner can essentially rent a vehicle for an extended period. This can be anywhere from one to five years, depending on the contract. When the lease term is complete, the lessee may either purchase the car or return it. Advantages of leasing a company car Lower costs and maintenance When choosing the option to lease, your monthly payments are typically lower than they would be if you were buying a car. For a relatively low initial fee, followed by regular monthly payments, you get all of the benefits of running a brand-new vehicle. This includes the full manufacturer’s warranty cover, which typically lasts for two to five years. Taxes Leasing can be an attractive option because many businesses can claim back part, or all, of the VAT. Exact figures depend on the VAT scheme that your company falls under but as a general rule, companies can claim back 50 percent of the VAT if a car is used for private and business purposes. Also, you don’t have to pay any up-front sales tax because you’re not purchasing the vehicle. Flexibility At the end of the lease, you usually get to choose between purchasing the vehicle outright, refinancing, or simply handing it back. Cons of car leasing Mileage limit When you lease a car, there will be a limit on how many miles you’ll be permitted to drive throughout the lease. If you were to exceed that limit, you would face fees that can be pretty hefty. Driving limitations Since you will have been the one to sign the lease agreement, only you would be permitted to drive that vehicle. While that doesn’t sound so bad, it may complicate business matters if you’re not around to operate the car. Ownership While the lease lasts, you do not own the vehicle. This means you won’t be able to sell it if the times get tough or do even smaller things like making modifications. Pros of buying a car Car as a business asset A vehicle that you buy becomes an asset. Because of that, you can decide to sell or trade it at any time. You are not tied into running the vehicle for a specific period as you are with leasing. Long-term investment Buying a car is a substantial investment. But, the longer you own the vehicle, the lower your long-term cost. Fewer limitations You can sell your vehicle anytime you want to or make modifications to the car. Also, you are not bound to a mileage limit. Downsides of buying a car for business Higher initial costs If you choose to buy a car for business, you’ll typically pay higher up-front costs because you’ll owe sales tax, title fees, etc. Also, our monthly loan payments will probably be higher than the lease payments. Deprecation Your car starts losing value as soon as it leaves the forecourt. A new car will have lost...
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7 Reasons Why a Financial Advisor is Important for Business

7 Reasons Why a Financial Advisor is Important for Business
Planning is essential when you are beginning a new chapter of your life. Most people don’t start their journey without a proper plan. It is unusual to create something without seeking advice and taking appropriate steps beforehand. Many people question themselves, “Do I need a Financial Advisor for my business?”. To make money work for you, you need a prudent financial advisor by your side. A financial advisor helps you in building a road map to achieve your financial goals and also makes your contingency fund for any unforeseen needs that may arise. Let us first discuss who is a financial advisor and what is the importance of financial advisor. A financial advisor has the expertise of making the most of your initial financial investments in the business. They assess the viability of your business model and outline strategies for your path to profitability. Below are the ten reasons why a financial advisor is important and how they can ensure, accelerate and improve your business successes. Managing Cash Flow If you don’t realize how your monthly business revenue is spent, then you need to manage your finances better. There can be days with high cash flow and days with low cash flow. Many people fail to understand the variations like these and experience a cash shortage; this is the reason why a financial advisor is important. With a sound financial expert, you can maintain a budget to ensure the proper running of a business. Structured funding may help you to avoid consequences. Investments If you are unsure of your investments, then it’s high time for you to put your portfolio in order. Many people invest randomly without undertaking proper research on financial products. Also, investing in an ad-hoc manner leaves your investments challenging to track. With an appropriate financial advisor, these investments could be realigned to meet your financial needs. The right kind of assets can also be a constant source of cash flow to your business.  Finding the Right Asset A friendly and warm ‘cushion’ in the form of assets is desirable for everyone. You need to understand that most purchases come with liabilities attached. So, it is more important to determine the value of your assets. The knowledge of selling or cancelling the liabilities help improve your chances of matching the cash you have to avoid debts with minimal turbulence. A suitable asset allocation through a financial expert acts as a shield to protect from market volatility. Insurance In case of any future mishappenings in terms of business, the right amount of insurance can be a financial boon. You can claim the insurance amount to make sure your business is safe and smooth. Here is the reason why a financial advisor is influential because they will take into account your business enterprises, income, expenses and other goals to protect your liabilities, assets and finances. Setting Smart Financial Goals It’s not just the present that matters, future planning is also essential. Lack of careful financial planning might hinder the accomplishment of the financial goals set for your business. So, the importance of a financial advisor on executing the financial plan drawn is followed vigilantly and religiously to make your business a success. Savings It is good to invest regularly and wisely with high liquidity. Investing small amounts proves light on your wallet and reduces the burden of sudden financial changes defraying a considerable amount to throw you off track. These investments can be utilized in meeting financial goals and investing in the right investment avenues.   Ongoing Advice It is best to establish a long-term relationship with a financial advisor you can trust to meet the financial needs of...
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The First-Time Entrepreneur’s Guide to Wealth Management

The First-Time Entrepreneur’s Guide to Wealth Management
As a first-time entrepreneur, learning the ins and outs of your market, the business, and determining an effective strategy are all important keys to success. One aspect that is often overlooked by many first-time entrepreneurs, however, is a successful wealth management strategy. In order to remain competitive in the market that you are entering, you need to be financially ready. The preparations a business makes in its financial management strategy in the early stages can often be the reason why some businesses succeed while others fail. Proper wealth management is crucial to your success, so take the time now to become familiar with the concept and how you can apply best practices to your own business venture. Get to Know Your Financials The first step in proper wealth management is becoming familiar and comfortable with your current personal and business financials. Working with a financial adviser can be an important strategic step to take to make sure that you have everything in place in order to effectively start and operate a business. They can also work with you to understand your credit score, future wealth projections, and strategies for overcoming unforeseen expenses. When entrepreneurs go into business blindly without preparation, it can be difficult to overcome the debt that this forces individuals to incur. Setting your sights on the future and preparing for them now will help you tackle emergencies and challenges as you are faced with them. Read On: Brave New Life: How to Start an Agency After a Freelancing Career A resourceful article from TimeClockWizard that operates an extremely popular employee time management tool for small businesses. Be Agile With Your Costs A successful entrepreneur should possess the ability to remain agile in any situation. Adapting to changes in the market and being flexible with consumer demands are favorable traits that will help increase profits in the long run. In the presence of a situation, however, a business owner may be required to come up with cash quickly. Finding solutions to meet the demands of the market and your customers often requires strategic thought processes around ways to better manage your current costs. Because costs are often unavoidable and may come during the most unexpected of times, it’s important that during these times you utilize the resources around you. Making the right decision for your business could mean taking out a loan, seeking out an investor, or restructuring personal expenditures such as refinancing your home. Whichever decision you decide is right for you, know that there are many options to help you access the cash you need. Set Goals for Your Business Every entrepreneur has their own reasons for choosing to start a business. Likely reflective of their desire to do more with their personal passions and talents, becoming an entrepreneur is a goal that many hope to achieve. Once you have successfully completed your goal of starting a business, it’s important to set goals for your business as well. Setting egocentric goals of “becoming a millionaire” or “becoming the best at …” won’t help drive your business forward. Many entrepreneurs fall into the trap of thinking they will become rich or successful simply by starting their own venture. This can cause any business to fail as the most valuable stakeholders in a business venture often get forgotten. Your investors, employees, and customers are all important to helping your business achieve its goals. Working together with a cohesive vision that starts with smaller goals and leads to bigger ones will give you the best shot at achieving success. When setting these goals, be sure that they are specific, measurable, attainable, realistic, and timely – also known as...
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How AI Is Changing the Financial Industry

How AI Is Changing the Financial Industry
Artificial Intelligence (AI) is transforming industries across the board, and financial companies and institutions are moving fast to keep pace. AI is changing the way we apply for loans, file insurance claims, invest our money, and interact with our banks. Here are some of the most prominent AI trends that are making inroads in the finance industry. Fraud Detection and Management As e-commerce is rising in popularity, so is online fraud. To prevent frauds, many e-commerce platforms and card issuers have been forced to decline transactions too aggressively. According to a study by Javelin Strategy, retailers lost almost $118 billion in 2015 due to false declines. Moreover, more than a third of cardholders abandoned their card because it was falsely declined. To detect fraud and prevent loss of revenue, many financial institutions have turned to AI. Machine learning algorithms can reduce false declines and improve the accuracy of real-time approvals because they can identify fraudulent activities that would go unnoticed by humans. Recently, Mastercard has launched its own AI-based fraud prevention system. Mastercard’s technology gleans patterns from the historical spending habits of shoppers. It uses this data to set a behavior baseline that allows it to score and compare new transactions. It is not limited to predetermined rules. Traditional fraud detection systems, on the other hand, use a one-size-fits-all approach when evaluating transactions. Since Mastercard processes countless interactions each year, they have plenty of quality data they can use to hone and train its AI fraud prevention system. Thanks to machine learning, AI fraud detection systems learn on their own and improve themselves over time. AI systems can also automate AML (Anti-Money Laundering) and KYC (Know Your Customer) compliance. Virtual Assistants and Chatbots Thanks to machine learning and natural language processing (NLP), chatbots and virtual assistants can deliver human-like interactions. There are more and more virtual assistants that are designed for various niches within the finance industry. Banks and other institutions use virtual assistants and chatbots to offer personalized conversational experiences to their clients. Unlike human agents, virtual assistants can juggle multiple accounts at once, and they are always available. They allow customers to get assistance outside of office hours. Banks, brokerage firms, and insurance companies can use chatbots to reduce the workload of their call centers. By offerings comprehensive self-help solutions, clients can successfully apply for loans, get personalized financial tips, or file claims much faster. For instance, the AI Insurance Claims Assistant can help and re-engage with customers throughout the complete claims process. It can gather the required information for processing and update the customers on the status of their claims. They also have digital workers that can automate the onboarding journey, help customers figure out their coverage needs, update their information, or make policy adjustments. Banking bots, on the other hand, can help customers optimize their financial plan by intelligently tracking their income, spending habits, and essential recurring expenses. They can also help customers open an account and remind them to pay their bills. Risk Assessments As mentioned, one of the strongest features of AI is its ability to learn from past data. Since records and bookkeeping are an essential part of financial services, AI and finance go hand in hand. Credit cards are a perfect example. To determine if someone is eligible for a credit card, card issuers use credit score. But, business-wise, it doesn’t always make sense to group customers into “haves” and “have-nots.” Instead, financial institutions can use each customer’s data, such as the number of credit cards they have, the number of loans currently active, and information on loan repayment habits, to customize the interest rate on the card they have issued...
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4 Things You Need to Know Before Starting a Business

4 Things You Need to Know Before Starting a Business
Starting a Business: You’ve probably read countless articles about it and believe you’re finally ready to take that big step. A word of caution though: once you step into the entrepreneurial waters, you’ll quickly realize that nothing has really prepared you for it. There’s so much more to it than just a good idea. It takes a lot of research and planning to prepare for starting a business. In this article, we help you save that precious time by bringing you 4 things you need to know before starting a business. Understand the Laws and Regulations One of the most important things when starting a business is to familiarize yourself with the laws and regulations that affect you. What kind of business permit or license will you have to obtain? What are the legal requirements for starting your business? How much will you need to pay in taxes? Compliance with the law is essential because you don’t want a technicality holding you back once you embark on this journey. There is a lot to consider from filing tax returns and paying your staff to protecting your business with insurance. If you can’t figure out all of these things on your own, seek help from a reputable accounting firm. A professional can guide you through these laws and regulations and help you figure out if you’re ready to start a business. Additionally, a skilled accountant will be a great ally later on in helping you manage your finances and not over-paying on taxes, etc. Is There a Demand for Your Product? Before you spend all your money on developing a product, have you researched the market? Is there a demand for such a product or service? What about the competitors? This might be hard to hear but there is a chance your product isn’t so great or needed so your first step should be to find out whether there is a market for it. Countless new ideas and products are introduced every week, month, year. But how many businesses actually succeed in surviving the first few years? About 80% of businesses survive the first year while only half of all businesses make it to the fifth year. You’ll need all the information you can gather so that you can make small adjustments to your product/service accordingly. Thorough market research will provide answers to the above-mentioned questions and give you an insight into whether it’s worth spending more time on your idea or not. Research your competition carefully. But don’t get discouraged if you discover that there are many other businesses with similar ideas. This doesn’t mean that you can’t be in the same business too. If the market is thriving, surely there is a place for one more great product. Planning Your Business A comprehensive guide from MyMove – for parents to help provide their kids with a baseline of financial literacy so they have the information they need to make smart educated decisions. You can check it out below:Financial Literacy: Teaching Kids How To Buy A Home Don’t Spend More Than You Need When starting a new business, most people give up a lot to finance the idea. Many get into debt, spend too much too soon and showcasing poor money management skills. This matter also requires good research. You need to know what to spend on and what can wait until your business grows and brings profit. It may be tempting to get your new office decorated, purchase some new equipment, and software, but don’t rush this. Instead, think about the necessities, what your business needs in the beginning. Make a distinction between what you must have and...
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