Small Loans Show Growth Potential

For those of us who have been around for a few years, it’s pretty clear that banking is one industry that has been through some significant changes, especially when it comes to personal loan applications. Gone are the days when you would approach the bank manager directly and plead your case to improve your cash flow situation. These days the bank manager has nothing to do with the final decision and banks are only really interested in a minimum of $5,000 if you want to borrow.

The argument against small loans it that the average $3,300 loan taken over a year racks up an additional $462 in admin fees plus an establishment fee so it doesn’t make good business sense for banks to go to the trouble of offering the service. For consumers who have overextended their credit cards and have a bad credit rating the current lending climate is a pretty aggressive place and going through the banks could be a futile endeavour so it is just as well that there are more accessible options opening up for loans, such as the ones at Bankwest.com.au (http://www.bankwest.com.au/personal/personal-loans/personal-loans-overview), which our research led us to.

What is more, Cash Converters’ personal loan growth of 31 per cent to $62.1-million is also worth a mention because the model it was built on was geared towards market needs. Its core business is extending $1,000 loans on a shorter term of seven months, accumulating $490 in interest and a $250 establishment fee. Australia’s short term small amount market is estimated to be generating more than $1-billion and, for those who are running out of viable loan options it provides a suitable channel.

Things are looking up for the cash-strapped consumer though as legislation has also recently been passed that restricts the interest and charges that can be applied to small, short term loans. Loans under $2,000 have been capped at 20 per cent of the credit amount to be charged upfront and 4 per cent on a monthly basis for the term of the loan.

Other developments in the arena of personal loan financing have seen the emergence of a new peer-to-peer platform released by SocietyOne. It is a loan management program called ClearMatch which caters to a changing world with a dynamic online solution and a secure framework through which borrowers’ and investors’ interests can be satisfied.

The new platform promises a more efficient personal loan process by taking the middle man, the bank, out of the borrower-investor relationship. It has also been claimed that the operating platform’s technology is more efficient than can be expected at a bank and other financial lending institutions.

The news of the software’s Australian debut comes in the wake of its success in the United Kingdom, and SocietyOne feels it is likely to have the same degree of impact down under. The software creates a mutually beneficial framework, as borrowers pay lower fees and interest and lenders can access an asset class that has kept the banks running for many years.

In its favour is fixed rate monthly interest and repayments. There is also no monthly charge and no fees apply for early repayment. The funds are provided by independent investors who invest small amounts into different accounts to create a diverse portfolio under the management of SocietyOne. Borrowers can access to up $30,000, on what has been coined a responsible borrowing option.

So if there wasn’t already enough pressure on the banks the introduction of more direct borrowing alternatives poses a threat to their precarious profit margins. The country’s big four have come under a lot of fire recently, monopolizing the market and charging Australians significantly higher interest rates and fees than their financial counterparts in the rest of the developed world.

Are Car Loans a Good Idea in the Current Economic Climate?

It’s impossible to provide a blanket answer for the question above because every situation is different and a loan may be a great idea for one person and a potential disaster for another. If you’re thinking of taking a loan out, whether it is to do home improvements, buy a car, move house or take a holiday, or simply just to pay off bills and consolidate some debt, it is definitely worth taking time to mull over your financial situation and weigh up the options.

Why a car loan is not a good idea

If you want a new car the idea of spreading the cost could force you to choose something which is realistically beyond your means. If you only had the option of buying a car outright, you would be limited by your bank balance, but if you can take a loan out or spread the cost via a finance deal, this means you can spend more. If you are already in debt and struggling to keep on top of your outgoings, adding a car loan repayment to the mix is not a good idea.

If you are going to take out a loan, ensure that you can afford the repayments before you sign on the dotted line and be realistic when you are calculating your budget. Remember that a car comes with a host of additional costs, including tax, MOT and insurance, as well as maintenance costs, which can spiral into the thousands.

Unfortunately, there are companies which prey on vulnerable people. Always check that your loan provider is approved and legitimate and shop around for deals to ensure you get the best rate. Seeing a financial adviser is always a good idea, even if you think you know all there is to know about loans and lending.

Why a car loan is a good idea

If you have a good credit rating and a secure income and you need a car and want to own it outright rather than paying for it monthly, now is probably a good time to take out a loan. Although it is harder to get a loan, the cost of borrowing is currently very low, with interest rates at rock-bottom and if your job is secure and you can afford the loan repayment, it is likely that the car will represent a good investment in the years to come.

If you are interested in getting a loan, shop around online with companies such as Car Loan 4U. There are so many providers around and they all offer different payment plans, interest rates and perks. You can use Internet to get a general idea of what you get for your money, but the most apt solution is to visit a financial adviser. They can advise you which loan is best based on your financial situation and the amount you want to spend.

Please take care

When taking out car finance, no matter how big or small, it is wise to air on the side of caution. Always read the small print, make sure you know exactly what the loan will mean for your monthly outgoings and ensure that you choose a legitimate provider. It sounds obvious but if you come across a deal that seems to be too good to be true, it probably is just that. Use providers you have heard of, such as the major building societies and take the advice of trained financial advisors. If you are going to get a loan secured against your home, be particularly careful, as there is a risk that your home could be repossessed if you do not maintain repayments.

The countries with the world’s top 5 highest income rates

With the globe still struggling to recover from the worst recession since World War II and elections occurring in Europe and the USA, taxes have once again become a hot topic of conversation as many countries propose further rises. But which countries currently have the highest income tax rates?

5. Japan, Belgium, Austria, UK (tied)
The top income tax rate for Japan, Belgium, Austria and the UK is 50%. As the only Asian country in the top 5 highest income tax rates in the world, Japan’s top tier rate of 50% is more than double Asia’s average of 23%. Despite this, its tax revenue is the fifth lowest amongst OECD member countries due to a rocketing national debt crisis.
Western Europe may have the highest income tax rates of any region in the world but Belgium’s highest tax rate is still 5% higher than the average. Belgians are lumped with the highest tax and social security burden, regardless of income, of any OECD member. Austria may frequently be ranked as one of the best places to live in the world but they are certainly taxed for the privilege! When the UK raised its top income tax rate to 50% in 2010 it leapt from the 13th to the 4th highest income tax rate in the European Union and was the biggest top-rate income tax hike in the world that year.

4. The Netherlands
At 52%, well above Western Europe’s average of 45.7%, The Netherlands’ top income tax bracket is undoubtedly high but it does help to pay for a wealth of benefits. The Dutch enjoy reimbursements of up to 70% on childcare, subsidies on children’s books, money towards holidays which amounts to 8% of an individual’s salary, and free medical care.

3. Denmark
Denmark’s income tax rate for its top band of wage earners may have come down from 62.3% in an economy-boosting drive in 2008 but it is still 55.4%, making it the third highest rate in Western Europe. However, these tax cuts have also decreased the tax and social security burden on single taxpayers.

2. Sweden
At 55.6%, Sweden’s top income tax rate is higher than any other Scandinavian country and the second highest in the world. However, its taxes fund an incredibly generous social security system - Sweden spends more of its GDP on social services than any other country in the world - which allows Swedes to enjoy free education, subsidised healthcare and public transport, and a government-guaranteed pension.

1. Aruba
Not many would guess that the country with the highest income tax in the world is Aruba. The tiny Dutch territory in the Caribbean has a top tier income tax rate of 59%, far higher than the Caribbean average of 26.7% and astronomically higher than the Bahamas, Bermuda and the Cayman Islands which have no income tax at all. However, the island also boasts one of the highest standards of living in the Caribbean.

Aruba may not stay at the top spot for much longer if the newly elected French president Francois Holland has his way. To help pay off the country’s crippling debt, Holland is proposing to raise the income tax rate on the wealthiest (those who earn over €1 million) from the current 48% to a whopping 75%!

This articles is provided by My Refund, the New Zealand registered tax agent www.myrefund.co.nz

High Yield Bonds Prove to be a Risky Way to Drive Investments

Return on investments is the most important aspect attracting investors to select any financial instrument. The potential risks attached to high yield bonds are overlooked by most in lieu of the great returns they offer. But a number of risks must be gauged to mitigate risk in the portfolio.


Bonds have their own Moods, according to Moody’s rating agency

Debt obligations having bond rating BA or BB according to rating agencies Moody’s or Standard & Poor’s scale is known as High Yield Bonds. Also, known as junk bonds or below investment grade, the Bonds can be taken by investors either through individual issues or high-yield mutual fund investments.

Credit Risk: the Key Driver of High Yield performance

One of the primary concerns is the credit risks associated with high yield bonds. This means there is a possibility of the issuer defaulting in interest or principal payments.  One should carefully scrutinize the track record of the fund by going through various annual and semiannual reports. The bond price can drop in case of defaults which may result in the decline of the net asset value of the fund.

Economic Risk: Slower Growth Can Hurt High Yield

High yield bonds are issued by unproven and smaller corporations or else bigger companies having experience of handling financial distress. A slow economic growth can hamper the bond yield.

Investor Sentiment: A Key Issue

These bonds are sensitive and react sharply by under performing more than other kinds of bonds if investor sentiment becomes negative.

Nothing is stable: Ratings can change

Unfortunately, a bad year may lead to downgrading below the investment grade. Even though they have produced better returns than corporate issues as well as government bonds, high volatility and the risk of default must be considered by investors.

Even though Fitch Ratings have assessed that default rates are at historic low of 2.5 to 3 % recently.

Go Retro: read past records

One should assess the fund’s performance during previous downturns. The fund’s average credit quality can be an indicator to show if most of the bonds are below ‘B’ or ‘BB’, then it is highly speculative.

With more and more economies falling into recession and getting trapped in the trap of rising interest rates, the bond yields can greatly suffer. Also, do remember the fundamental relationship between interest rates and bond prices, i.e. bond prices go down with increase in interest rates.

Also, the yield of these bonds during a bull market run may be mediocre vis-à-vis other financial investments like equity return.

The sluggishness in the Bond market may make fund managers buy and sell from the existing portfolio, which may ultimately result in investors bearing additional costs. Other risks like changes in currency rates, weakening foreign economies and various political risks may result in nose-diving of high yield bond yields. 

So, is it really worth the pain?

A lot of analysts raise concern that whether high yield bonds which earn about 7 % are worth the kind of risk they are associated with.

This is because investors these days have multiple options of investments which provide better returns and the risk quotient is almost the same.

Lauren Devaney is the author of this post. She provides tips on smooth cash flow and investment strategies. For more information, visit www.paydayloansuk.org.uk

Sign Up For a Medical Malpractice Insurance and Lead a Peaceful Life

Doctors and nurses can be sued in the court by any aggrieved party, on the charges of malpractices. With the help of malpractice insurance these professionals can protect themselves from any sort of harassment. Even an experienced nurse can sometimes go wrong, and if this happens, then they will be liable for a lawsuit. Therefore, all medical practitioners, be it a doctor or nurse needs to get themselves insured under this policy. To begin with, they need to choose a reliable policy.

A right policy will save them from any financial loss that they might incur due to the legal case. With this insurance, they can lead a serene life. There are hospitals that provide their staffs, especially nurses with such policies. To be on a safer side, you can purchase an individual policy, so that you have enough funds to meet this unfortunate incidence. This amount also covers for the loss of wages or income. This policy enables your employees to work as a part timer, in addition to their regular work. They can also participate in any kind of voluntary services too.

Choose the Right Policy:

At first, it is quite important to understand the terminology of medical malpractice. It happens when a nurse fails in carrying out her job, and treats a patient in a wrong way, causing harm to them. These nurses are always overburdened with responsibilities, and this might cause such accidents. No matter what the reason might be, it falls under the preview of malpractice.

Wrong medicines, incorrect recording of vital signs of the patients, and others are some of the common mistakes that are committed by nurses. No doubt they are experts, but any medical ignorance can cause serious health problem to the patients. In this case, the patient can file in a case against the nurse and claim a compensation for his loss.

Benefits of Signing up for a Policy:

It is always recommended to sign up for such a policy, as it will always protect you if something goes wrong in your profession. Some of the nurses might not feel the necessity of such a policy as they are quite efficient. They strongly believe that this policy is meant for inefficient and new nurses. However, that’s not true, anyone can make a mistake.

The fact remains that everyone needs to have this policy. Even an experienced nurse may have to face litigation charges. The legal charges are quite expensive and you might have difficulty managing them if you don’t have a policy. This insurance will easily cover your expenses and give encourage to standup against the case.

If they lose the case, the compensation amount will be too high, and without this policy you can never afford it. They may have to borrow the money from their friends or others. There have been instances where nurses had to file for bankruptcy.
Holding such a policy doesn’t mean that you can be dragged in the court for nothing. It is a misconception and it is signed for securing themselves against any liability. Unless they declare that they have a policy no one can pull them out unnecessarily for not doing their job.

Before buying any such policy covers, nurses must do enough research about the insurance providers. They must evaluate the financial capability of a company and also find out how long have they been in this business. They must also try to find out about their history, how they have protected any nurses, and how have they compensated them. Best insurance provider will try to protect your interest in every circumstance. 

Dave is a qualified writer and his write-ups on tax benefits with insurance will help you save a lot of money. His post on Missouri health insurance will be worth referring to before investing on securing your future. 

Health Insurers Profit In Last Financial Year

Over the last 16 years rebates for physiotherapists, dentists and optometrists have dropped by 20% and now cover less than 50% of health costs. Health funds’ profits from ancillary cover, however, increased to $1.1-billion in the last financial year.

In 1996, health insurance covered 57% of fees for services like optometry and dentistry but by 2011 the figure had dwindled to 49%. Physio had a 60% rebate in 1996 but has now also dropped to 49%. Insurers also benefitted from $5.15-billion in subsidies from the government and now people over 30 and those considered to be high-earners are being forced into taking healthcare policies out. Despite rebates decreasing, insurers are topping their profits on an annual basis and consumers are being forced to pay more.

Since 2000 the industry’s for-profit health funds have increased from 12.5% to 70% and premiums are worth more than the premiums that are being paid out to cover ancillary services.

While the market becomes easier for health insurers to profit from, healthcare professionals are being reminded how it is much more challenging and ethically questionable for them to carve out avenues to drive business. The role of social media in the healthcare industry has also fallen under the spotlight recently, as the Australian Health Practitioner Regulation Agency (AHPRA) leaked a consultation paper on social media policy before the date of its highly publicised pubic launch. Contributors to the #hcsmanz twitter group, and Healthcare Communications and Social Media in Australia and New Zealand have voiced their disapproval at the content of the report, stating that it focuses too much on the negative aspects of the social media phenomenon.

AHPRA’s policy was drafted in response to demand from practitioners requesting guidelines on social media conduct from national boards. Unfortunately the report, which was apparently not the final draft, was released into Twitter prior to it being signed off and made publicly available. The focus of the report, that has got the social communities up in arms, is the focus of the report on social media’s potential to transgress laws pertaining to the health practitioner code of conduct and Advertising Guidelines.

AHPRA has been accused of neglecting the positives of the social media platforms and their potential for improving service delivery and involving the wider public in matters like health policy creation, research and service development.

The National Law for advertising health services is very restrictive and AHPRA has taken a conservative interpretation in light of the advertising opportunities on offer through social media. The laws pertain to any practitioners who are registered under National Law, their employers and anyone else who provides services through a registered health practitioner. Any person who advertises a health service on a social media platform is at risk of transgressing the Advertising Law.  Health practitioners who are found guilty of contravening the law could face losing their registration.

As a guideline practitioners must ensure that any content they post does not breach their professional mandate, does not transgress any privacy and confidentiality clauses, provides information that is informed and unbiased, ensure that no unsubstantiated claims are made and does not make use of any kind of testimonial. The laws prevent healthcare professionals from taking part in the reforms by advertising themselves as offering high levels of medical care. However, healthcare companies have been able to benefit directly from the competition that was generated in the market as people vied to make a health insurance comparison, before the means testing deadline. With insurance companies boasting exorbitant profits, it appears both the consumer and the practitioner are paying higher prices and the corporates are raking in the profits.

Virtual Offices Make Expansion Easy

Virtual office solution providers offer their partner businesses access to prime locations and modern meeting areas, full online business support and live receptionist services that ensure brand continuity, even across different continents, and a consistent level of professionalism. In the past few years, the highly dynamic economic environment has brought virtual office expansion to the fore. It has also highlighted how innovative business solutions that meet the demands of a dynamic market can flourish even in times that are less abundant than previous years. Doing good business is a two-way street and you need to ensure you can find yourself a like-minded match, but there’s a business lesson to be learnt: that there is always business to be had out there.

The month of August saw one British virtual office company celebrate 900 global partners in prime locations across the world. Said company has been at the forefront of the virtual office solution market for several years now and is now targeting an expansion to 1,000 virtual offices opened by the end of 2012. Current locations have been claimed in a number of thriving metropolitan centres in Australia, Canada, the USA, Central America, Europe and Asia. The company has provided its services to over 25,000 companies and individuals with an entrepreneurial spirit.

Despite fears about market slowdowns, losses in productivity and squashed profit margins the global economy is expected to rack up to US$72-trillion by the end of 2012 and, as much as things may have slowed down in recent years, they are certainly showing clear signs of expansion, as the growth in demand for virtual office space increases.

Two important characters to have emerged from the corporate chaos of the last four to five years are the small business and the mid or medium-sized business. Together they were responsible for generating 86 per cent of the new jobs available to workers in the American economy and were able to provide a buffer where old school corporates fell short. It was a new way of thinking that was able to turn the fate of the economy around, and it’s the kind of business that is now setting roots all over using virtual office space.

It’s no secret that companies big and small have crossed continents and oceans, in search of green pastures further afield. And, with multinational expansion comes the need to maintain a consistent and professional brand presence, true to its corporate identity, in all corners of the globe, and to ensure that the business is represented evenly throughout its centres.

For a remote executive team it takes the guesswork out of finding the right location and furnishing the place trans-continentally, taking practical matters and cultural sensitivities into account. It also ensures that your facilities are of an acceptable standard to local or international guest, customer or client. As presented on Regus.com.au, today virtual office spaces offer live communication services, multi-lingual frontline staff, access to meeting rooms and IT support staff on hand to guide you through any technological issues.

Specialist requirements like day suites, board rooms and day offices can also be arranged within a short notice period, which is ideal if you have guests traveling through who need separate space to spend time in. One of the most significant advantages of having your office requirements taken care of professionally is that you are assured of a prime location in highly-contested areas. That includes central business districts, high rise blocks, landmark buildings and locations close to transportation networks that serve your staff and customers.

Running an efficient office is a specialised skill and having a relationship with a company that specialises in the service can take a lot of hassle out of your diary and give you more time to focus on running your company.