Taking care of your financial situation is very important. Here are some advices regarding finance terms. Business credit cards are designed specifically for business use. They provide business owners with an easy method of keeping business and personal transactions separate. There are standard business credit and charge cards available. Even for a business credit card, your personal credit history is considered because the credit card issuer still needs to hold an individual accountable for the credit card balance.
Payday Loan Interest: Payday lenders charge borrowers extremely high levels of interest that can range up to 500% in annual percentage yield (APR). Most states have usury laws that limit interest charges to less than approximately 35%; however, payday lenders fall under exemptions that allow for their high interest. Since these loans qualify for many state lending loopholes, borrowers should beware. Regulations on these loans are governed by the individual states, with some states even outlawing payday loans of any kind. In California, for example, a payday lender can charge a 14-day APR of 459% for a $100 loan. Finance charges on these loans are also a significant factor for borrowers as the fees can range up to approximately $18 per $100 of loan.
Terms: Account : An arrangement with a financial institution for the debit and credit of funds; also the record or statement of these transactions. Businesses may use an account structure with another party to keep track of goods or services rendered and payments owing.
Encumbered asset: An item of value used as collateral or security for a loan, which has a registered interest against it, for example a property for which you have a mortgage is an encumbered asset. An unencumbered asset is one without any debt or interest registered against it, such as property for which you have paid off the mortgage.
For our finnish readers here is a resource that you might find useful : Money and business resources. Official cash rate (OCR): Defined by the Reserve Bank of Australia (RBA) as an operational target for the implementation of monetary policy. Broadly speaking, it is is used to denote the interest rate which financial institutions pay to borrow or charge to lend funds in the money market on an overnight basis.
Cash on Hand, Money in the Bank: Another thing most news reports look at is how companies manage their money – specifically, how much they have in free cash flow, total debt, and what assets they have available in cash equivalents, such as short-term government bonds that they can sell to settle debts. In Hemlock Inc.’s announcement, free cash flow is increasing, meaning that after all expenses have been laid out in order to maintain the business’ continuing operations, the amount of cash it has on hand is growing. On Hemlock’s balance sheet, the company shows cash and cash equivalents of $128 million, which can be converted into cash if required, especially in the event that their total debt increases and/or income takes a hit.