Category Archives: Finance

Are You Risk-Ready? The Three Things You’ll Need For Any Business Surprise

Once the business starts moving, most entrepreneurs would find themselves in a bit of a haven. There are no risks, the consumer traffic is just enough to handle and address, the supply and demand is just enough. At this point, many find themselves not planning so much for the future. However, there are three things you may have missed and you’ll need to address.

  • Business Gaps

It is possible that business owners have cut a niche and filled a gap of their own. However, if they grow complacent, they’ll find some holes in the new niche need to be addressed. Proprietors who miss these gaps could miss creating a new niche and handling their consumer traffic. Remember, novelties wear off in a few years’ time, and a gap allows you to spice up things further and further.

  • Have a Long-Term Plan

You might say that a ten-year business plan is always important. But having a long-term plan is more than just planning for the next ten years. Sure, your ten-year plan had worked, but you haven’t considered the later years. Nobody can say where your business is going in the next ten years, and you’ll be needing a long-term plan to make things work.

  • Discuss and Address Troubles Early On

Some employees report to proprietors that some equipment aren’t functioning at their 100 per cent. Some employees may report that a crass culture is developing in certain departments. These may appear small problems to business owners, but if these aren’t addressed, they can affect your business plan. Be sure to discuss these troubles in person and nip these troubles in the bud before things go out of hand.

PPI Claims: Why You Should Not Pity Banks Mis Selling PPI

PPI mis selling, first discovered in 2009 by the Financial Service Authority (now the Financial Conduct Authority) exposed the many ways banks and financial companies do not treat their customers right. Amassing probably more than £24 billion from consumers who could not make use of the insurance, consumers do not need to pity the banks that hire outsourcing and struggling to earmark amounts for future compensation.

Your bank, creditor or personal loan provider could have stolen £3000 or even more as you repaid your insurance policy. They may have told you that it is part of the loan’s provisions, it is a free product for high-credit consumers, a need for low-credit consumers or something that increases your chance of loan application success.

All these are not true. As similar as car dealerships raising the price rather than the interest rate due to your low credit, PPI will not increase your chances to obtain financing in any bank. If you are ineligible you could make a claim.

UK banks and financial companies did not play fair to their consumers and there is no reason that consumers should pity them for the hassles and fines they are receiving now. Remember, the government dispenses justice in the name of the good of the public, and keeping it that way will ensure that future financial services will be better from these institutions.

Troubles You Could Possibly Face Making a PPI Claim Today

Bank call centres are confused by PPI compensation complaints, claiming that they currently have only six years of insurance records, or possibly trying to delay customers are just part of the problems a PPI claimant will face as they make their PPI claim. The Financial Ombudsman Service is currently contending with 11,000 PPI claims on a weekly basis, which may indicate some slowness in the PPI claim process.

PPI or payment protection insurance can repay your loans, mortgages and credit cards when you get sick or unemployed. It can repay for at least a year. However, because of its exceptions and the way bank employees sold the insurance, 3.2 million customers have an insurance policy they do not need or cannot use.

The Financial Ombudsman Service, known to uphold many bank-rejected claims, is now receiving 11,000 claims on weekly basis. Recently, it increased its manpower with 1,000 more employees. Financial Ombudsman Chief Natalie Ceeney says that customers have nothing to worry about as the workflow will still be smooth.

The Claims Standards Council Policy Director Andy Wigmore also said that banks are known to hassle and delay customer repayments. The banks can even reduce them by saying that the bank only has six years financial records for a customer’s medical insurance policy. This effectively reduces any claimant’s refund to at least £4000, the standard for PPI claims. Wigmore says that there is substantial evidence to prove the banks’ wrongdoing.

Customers may also face a maelstrom should the Financial Services Authority consider and push through with the British Banking Association and Confederation of British Industry PPI claim deadline proposal set for April 2014.

The Work of an Actuary in a Business (and Other Fields)

Many businesses and trades actually underestimate the capability of an actuary to improve their business. Some proprietors even mistake actuaries as similar to accountants. While an actuary and an accountant’s fields are close to each other, being business related, actuaries specialize in the following.

1. Risk Detail
Actuaries can measure and predict what a current financial move does to a business’ future. They can predict the probable consequences of purchasing a new business over an effective and existing business. Actuaries calculate the risk involved in every business move.

2. Opinion
Like accountants, they could also give their opinion and option to business owners to lower or at least avert certain financial or business problems. They could also explain in a technical manner as they are familiar with mathematics-grade economics and inventory analysis.

3. Their Difference From Accountants
An accountant is someone familiar with mathematics, but one whose primary duty is to ensure every purchase, profit, selling, payroll, equipment maintenance cost and more are taken into account. This is to ensure that all the business’ finances are in order. An actuary is someone who predicts the probability of a deal or product’s failure.

4. Other Working Fields
As applied mathematicians, actuaries don’t only work with just one business. They could also work in the field of insurance, financial instruments or investing, or virtually any trade. Even if one changes a career from an actuary, an actuary’s skills can come in handy at some point in any business or occupation.

Online Accounting VS. Realistic Accounting

Accountants are invaluable for any kind of business and their services in lowering taxes, ensuring all finances and transactions are firmly secured by law and that no loophole can put the business out of the game are always important for business growth. With today’s technology, businesses can afford to hire accountants to work online. The transference of data through computers makes everything easy. But is it as efficient as working with an accountant on the table? Here’s a good lowdown on the advantages and disadvantages of each.

Online Accounting

Online accountants can work on the data you send them about your company through emails and receive updates constantly from your different departments through emails, just as you would in a normal office setting. They can also send email to you about their outlooks and commentaries about certain business or department activities.

Through specific accounting software (which you are inclined to know how to use as well), you can discuss different trends in your company’s earning, expenses, profits and business plans.

One disadvantage is that if you should have an intermittent Internet connection, this could cause trouble with information sending and receipt, and your accountant’s final filing of necessary business documents that need your authorization may be hampered.

Signatures and other authorization needed by your accountant may be difficult to authorize digitally and you will need specific software to place digital signatures, which you might need to purchase.

Real-time discussions with an accountant who often works off line or on off-hours due to different time-sets can also affect business performance.

Realistic Accounting

An accountant is there to discuss with your board of members easily and see potential loopholes in the business financing as well as discuss other issues during the meeting meeting with clear results after.

They can advise you off-hours about their outlook of the business and with clarity, as text-only or chat conversations with online accountants may hamper the advice they might give you, which may lead to misinterpretation and potential business damage.

However, you will need to pay them more for their services, and as any employer knows, including all the necessities needed to hire employees as mandated by local governments.

You will also need to provide them the terminals they can work from and the equipment they’ll need to process information.

Payment Protection Insurance: When Can It Possibly End?

Experts state that the end of the payment protection insurance crisis in the United Kingdom can possibly end by the year 2019, with banks spending more than just £16 billion in total for compensation repayments. An estimated 3.2 million customers purchased the insurance policy unwanted or unneeded, having many ineligible to make a claim on the mis sold PPI.

The Financial Ombudsman totals that it receives at least 1,500 claims on a daily basis and at least 7 out of 10 of these PPI claims are valid claims rejected directly by banks. Experts estimate that if banks continue to slow down and hassle customers passing their payment protection insurance claims, the ending of the insurance scandal might reach 2021.

Banks continually blame claims management companies for clogging and slowing down the claims system. However, it is Natalie Ceeney, chief of the Financial Ombudsman, who claims that the banks themselves are at fault as she says it shows that most rejected PPI claims from banks were not being investigated properly. Claims Standards Council Policy Director Andy Wigmore says that there is increasing evidence that banks are slowing down the PPI claim of customers. There are also reports that banks are reducing payouts without informing customers, having claims experts follow up on the claim’s progress and ensure maximum payout.

However, the Credit Protection Policy scandal, a mis selling of credit card identity theft insurance by a card activation company, is slated to be the next financial scandal in the United Kingdom. According to experts, UK’s financial crisis continues to pummel the financial industry while simultaneously showing the bad practices the industry has had for the past years.