How to Read a Cash Flow Statement

Cash Flow Statement as the name suggests is the summary of cash transactions of a company during the financial year. Cash Flow Statement, popularly known as CFS is a very important document in the hands of investors who want to know the changes in cash balances of the company year after year. The Profit & Loss Statement does not give a complete picture of financial wellbeing of a company because profits are not equivalent to cash. Profits are calculated using accrual principle where as for the investor eventually what matters is the liquidity position of the business. Continue reading “How to Read a Cash Flow Statement”

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Fantastic Advantages of Joining a Credit Union

Credit unions are not-for-profit, tax-exempt financial institutions or cooperatives that are owned by their members. They are created and operated for the purpose of providing a variety of financial products and services to their members, which include savings options, access to fairly priced credit, financial education, and facilities where transactions can be made at equitable cost.

Being a member of a credit union offers unique benefits that cannot be provided by other types of financial organizations like banks and microfinance institutions that derive their funding from investors, grants, and external loans.

To get you acquainted with some of these advantages, we’re providing you with a rundown of the most popular ones below. Continue reading “Fantastic Advantages of Joining a Credit Union”

How to analyse the Modern Trading Markets: 3 Key Tools and Strategies

While investors have gotten used to scaremongering in the wake of Brexit, the economy continues to struggle in the face of sustained volatility. This shows no sign of abating earlier, with corporate sentiment in the UK plummeting and the country thought to be on the verge of a recession.

British stocks and the pound sterling are also continuing to fluctuate, as while they remain higher than during the initial post-Brexit slump there is still considerable room for improvement. This demands that investors take a technical approach to the markets, as they seek to minimise risk and profit in a depreciating economy. Continue reading “How to analyse the Modern Trading Markets: 3 Key Tools and Strategies”

Financing small businesses: Tips for SMEs

If your excellent business idea is hampered by a lack of funds, these tips to raise capital will help you go a long way.

India is currently witnessing a burgeoning start-up culture that is making millionaires out of some business owners. The best ideas are not just becoming successful domestically, they are also generating huge funding from foreign investors. At the same time, several other small businesses are waiting to see the light of day owing to lack of capital. If your business is one of the latter, you need to consider these: Continue reading “Financing small businesses: Tips for SMEs”

Life Insurance – For those undesirable moments in life

One of the sad truths of life is that we all face that moment when all of it goes away. Of course, none of us are really prepared for those moments which take our breath away, in a very different way. We can however plan, if such a thing happens, when we least expect it, so that our loved ones are taken care of. While we may not be there personally in those moments of stress and need, we can at least plan in such a way that such stressful moments of life be taken care of, at least financially. Continue reading “Life Insurance – For those undesirable moments in life”

How to Read the Statement of Profit and Loss

Statement of Profit & Loss (P&L), as the name suggests, gives the summary of incomes and expenses arising during a particular financial year for a business. When the net income (i.e. income minus expenditure) is positive the company is in Profit and when the net income is negative the company is said to have incurred a Loss.

There are several types of expenses listed under the ‘Expenditure’ section of P&L Statement. When you are a beginner, you need to broadly understand the difference between these types of expenses in order to assess their impact on company’s future and present profitability. Continue reading “How to Read the Statement of Profit and Loss”

Term insurance plans review

Life is unpredictable and full of ifs and buts. It is important to keep your  family members secured in your absence. A term plan is an insurance solution that  provides financial security to your family members in case an unfortunate event of death occurs to you. A term insurance plan ensures that the entire sum assured is provided to the  nominee in case an event of death occurs to the policyholder. This Sum assured can be utilized the way your spouse/ nominee wishes to use it – pay bills, pay EMIs, pay for child’s school fees, health bills, etc Continue reading “Term insurance plans review”

5 Ways to Raise Cash for Your Business

Are you starting a business, or do you already have a business, but need more money to expand it? If you want to start a business, or already have a business and want to make improvements, there are different types of investors you can look at for your business – they include banks, angel investors, peer to peer lenders, venture capitalists and personal investors. This article will discuss these five different types of investors. Continue reading “5 Ways to Raise Cash for Your Business”

Back Away from The Bin: Why You Shouldn’t Toss That Prospectus

If you read investing articles, especially ones for mutual funds, you may run across the term prospectus. And if you’re an investor, you’ve surely gotten these in the mail. More than likely, they’ve ended up in your recycle bin before you’ve opened the first page. But is trashing the prospectus really that harmless?

It can be. Why? Because knowing how to understand prospectuses is crucial for any investor so they can make an informed decision about buying or selling a stock or other security. Let’s go over what you might expect to see inside of a prospectus. Continue reading “Back Away from The Bin: Why You Shouldn’t Toss That Prospectus”

How to Read a Balance Sheet

Balance Sheet is a summary of what the firm owes and what the firm owns. It is divided into two parts i.e. Liabilities (owes) and Assets (owns). As per the present rule of representation Liabilities are called Sources of Funds and Assets are called Application of Funds. So, let us understand the meaning of these two titles carefully. Continue reading “How to Read a Balance Sheet”

Two Reasons to Get a Working Capital Loan for Your Business

When it comes to financing a business, there are many different options for securing working capital. Some businesses operate completely based on revenue. Others get help from banks or investors. Some entrepreneurs even have enough savings to pour their own assets into their businesses until the ventures begin to turn a profit. Unfortunately, there might be instances where none of those options are workable for your business. You might have a series of customers who haven’t paid their invoices yet, leading to a temporary cash flow problem. Your business might be too young and green to attract investors or get approved for a traditional bank loan. And you might not have the savings necessary to keep your business afloat for the long-term—at least not without risking your personal financial future. Continue reading “Two Reasons to Get a Working Capital Loan for Your Business”

A Complete Guideline for Personal Loans in India

The surge in the number of Personal Loans offered by financial institutions in India can’t be overlooked. Here, we take a look at the reasons for this surge.

A Personal Loan is a debt taken from a financial institution, which must be repaid within a number of years, and at a particular rate of interest rate. The amount you receive from such a loan can be used as per your discretion, be it for home renovation, funding a vacation, or purchasing a vehicle. Keeping that in mind, the loan is only sanctioned after the verification of your income and personal documents.

Although the rate of interest is quite high, many apply for Personal Loan because it allows for a high amount to be dispensed within a short period. Add to that an uncomplicated application process and flexible repayment procedure, and you get a convenient way of getting money when you really need it. Continue reading “A Complete Guideline for Personal Loans in India”