Finance requires detailed and analytical work on the economic capital of a company, with the aim of investing and increasing profits. The professionals in this sector are in charge of designing action plans based on the capital available in their field of work, trying to ensure that all areas of a company can function correctly.

A master’s degree in finance provides the necessary knowledge to manage numbers, provides tools for risk assessment and allows defining the conditions of any investment. The financiers are the ones who say if an idea or project can be carried out, and if it will be profitable in the short or long term; These are people who show a special curiosity about business situations that have not yet been predicted.

The advantages of studying Finance are:

• Learn skills to manage personal resources.
• Acquire tools to recognize when it is convenient to bet on a business.
• Detect new opportunities in international markets.
• Good pay and extensive job opportunities.
• Managing a budget allows you to quantify expenses and therefore have clear accounts.
• Start a personal business.
• Knowledge of financial analysis.

Also Read: What Is Project Finance?

The post Why Is It Important To Specialize In Finance? appeared first on Tech Today Reviews.

These are situations that affect the monetary balance of the company. In some cases, these can be studied and evaluated to mitigate or avoid their impact, in addition to the negative consequences that they may generate. Therefore, it could be said that studying the risk in the stock market is a constant and enduring action. Since today the advances, modifications and improvements in the different sectors have changed their way of operating.

Similarly, another of the most common causes in this area are technological advances, digitization and digital transformation. Which directly or indirectly have made platforms, websites, software and devices increasingly sophisticated. Consequently, the stock market is affected for the same reason.

However, many times this can be prevented and an action plan can be established at the same time, where the company can adapt to these changes in a timely manner. Hence, the importance of maintaining a team that stays in tune with market trends and movements. Likewise, different techniques have also been created to calculate, measure and improve the strategies more and more.

Types of risk in the stock market

Within any company, it is necessary to calculate what are those threats or events that could affect investments. That is why, to improve this process and its impact, the types of risk were divided as follows:

Quantifiable:

It refers to those risks that through formulas and techniques can be foreseen.

Market risk:

They are the movements in the price of the asset, which subsequently affect the investment made. For example: changes in the economy generate a devaluation of the company’s assets.

Liquidity risk:

It happens when it is not possible to obtain the estimated investment, due to external factors or situations.

Credit risk:

It occurs when the debtor does not comply with its obligations, therefore causing a mismatch in the balance of the company. Either by failing to make payments or by breaching the contract.

Also Read: 10 Most Essential Banking Services

Not quantifiable:

They are those that cannot be easily foreseen or measured, since they arise after events and events.

Legal risk:

In this case, those involved are legal events and difficulties. These delay or interfere in making or obtaining the investment.

Operational risk:

It occurs when internal failures in the company have a negative impact on the development of products and services, causing economic losses.

Strategic risk:

It is due to non-compliance by the company team in their responsibilities, negatively affecting the achievement of objectives and therefore investments.

Reputational risk:

It is generated by negative publicity, which nullifies the prestige of the company or brand. Consequently, a bad image is created, which reduces confidence, in turn generating economic losses.

In general, the last two risks are not estimated by investors. Since they are part of the responsibility of the company’s workers.

Consequences of risk in the stock market

Although monetary losses are the first option when we think about consequences, this may go a step further. The risks, depending on their magnitude, can affect a company in different ways, for example:

• Capital losses
• Low sales
• Losing the trust of customers and consumers towards the company
• Changes in the structure and internal management
• Dismissal of executive staff
• Staff reduction
• Investor desertion
• Closure of the company

How to improve the outlook in the face of these risks?

As entrepreneurs or businessmen, we want risks not to threaten our company. However, this is not entirely possible, despite the fact that we are very prepared. In the same way, unforeseen events can surprise us at any time. Even so, it is important to highlight that the best way to avoid the probability that the aforementioned consequences happen, there are options. Here are 7 tips to mitigate risk in the stock market:

• Study the possible inconveniences or risks that may affect your company.
• Create an action plan for such situations, hypothetically, but based on the resources and possibilities of the company.
• Constantly review the plan in the face of new variables or changes in risks.
• Go to an expert who can carry out a correct risk assessment that offers you advice for your investments.
• Examine the risks before investing.
• Supervise and monitor the actions of your personnel in charge of the movement of the stock market, to verify that everything is going well.
• Evaluate the performance of your investments, in search of irregularities, inconveniences and improvements to be applied.

Also Read: Why Investing Is One Of The Most Important Tips Today

The post Risk In The Stock Market: What Are They And How To Mitigate It? appeared first on Tech Today Reviews.

Non-fungible tokens, or as some enthusiasts call them, nifties, are scarce digital assets people can use in art, gaming, and ensuring the provenance of premium goods. The success of CryptoKitties (that emerged in 2017) triggered the growth of NFTs and has provided blockchain with new functionalities beyond cryptocurrency and finance.

However, NFTs might be the new hype in the crypto industry, but few people know exactly how they function and what makes them different from other digital assets. Established cryptocurrencies like Ethereum and Bitcoin are fungible, meaning they’re interchangeable and exchangeable in nature. Similar to traditional currency, people can exchange them without claiming ownership. However, NFTs were created to ensure that someone is the unique owner of the asset. Blockchain technology serves as a digital contract that establishes the legal ownership of the digital content and is non-fungible.

What are NFTs?

NFTs are defined as blockchain records intrinsically connected to digital or real-world assets. Smart contract technology establishes ownership, allowing people to sell, buy, transfer, or trade them. NFTs are new crypto technology that has gained popularity due to the rise of blockchain technology and cryptocurrency. Blockchain enables data transfer through a chain of records known as blocks. The data is applied to diverse use cases, like marketing, consumer data, currency systems and many more. Blockchain technology is popular among users because it uses smart contracts to record NFT operations, making them impossible to fraud or violate.

Blockchain powers two categories of digital assets:

• Fungible (interchangeable)
• Non-fungible

Fungibility is a characteristic that enables the property to be traded from one owner to another and allows one asset to stand in for another. Traditional currency is fungible, meaning one euro or dollar is the same in value as another euro or dollar.

Non-fungible assets are non-interchangeable and cannot stand in for others. Artwork and real estate lack fungibility characteristics and cannot stand for other assets. Even if NFTs function in the crypto world, they don’t have fungibility quality and resemble physical assets in this regard because they have a clear line of provenance and owners. But because they’re based on digital IT infrastructure, they can gain an extensive variety of assets.

The first NFT was created by Anil Dash and Kevin McCoy and was an octagonal animation with a smart-contract based ownership. They created the Quantum animation before the NFT term came to life to refer to digital non-fungible assets. Sotheby’s auctioned Quantum, proving that digital assets compete with traditional ones.

Non-fungible tokens are essential in the metaverse age, where the property exists in virtual worlds, and people can interact with it and their surroundings using avatars. NFTs open new opportunities for real-world economics and property ownership.

Also Read: A Quick Guide To Crypto Trading Bots

How do non-fungible tokens work?

If you want to understand how non-fungible tokens work, it’s essential to learn more about blockchain. A blockchain is a distributed database that includes an ever-expanding list of blocks. However, the sequentially arranged blocks cannot be moved, so no database management system can impact their performance. The blocks contain a cryptographic hash that provides information about the previous record on the chain, transactional data, and the time stamp.

There are several blockchain ecosystems in the crypto sector, and Bitcoin and Ethereum are the most popular ones. People can create digital assets defined by smart contracts using the Ethereum blockchain as long as they follow the ecosystem’s rules. Non-fungible tokens are based on the Ethereum ERC-721 standard that provides information about the technical specifications behind NFTs.

When someone creates an NFT, they develop a unique asset with a special set of characteristics and metadata and create a smart contract on the blockchain, according to the ERC-721 standard. The digital asset’s value varies according to its features, not the effort required to develop it. People can even convert real-world assets into NFTs.

How can you use NFTs?

NFTs registered a sharp increase in popularity in mid-2021, and in August 2022, the total trading volume of this digital asset class reached $5 billion worldwide. The rise in demand is proof of NFTs’ versatility, as they facilitate the technology to be applied in several use cases across diverse industries. The most important uses of non-fungible tokens are:

They support the P2E gaming model

Specialists agree that digital collectables are the most popular use of NFTs because they power non-duplicable in-game assets. Players can get assets with intrinsic value when they cross levels, which they can sell or trade later.

They allow true ownership of digital art

Physical and digital art are distinct forms because the second can be copied, shared, and frauded. Therefore, digital art cannot have the same value as traditional art. However, NFTs revolutionised this model because artists create virtual assets no one can temper with because the blockchain carries records of all operations regarding them.

They enable real estate purchases in the metaverse

Well-known metaverse platforms like the Sandbox and Decentraland offer crypto users the possibility to purchase digital real estate parcels. Organisations and individuals can develop virtual property in the metaverse to gain revenue. However, before doing it, they must learn how to buy cryptocurrency because they need to use digital money to pay for these services. Once established, investors can sell the parcels for even millions of dollars. NFTs are a secure way of managing real estate rights in the metaverse.

Why do crypto specialists believe that NFTs will change the sector?

As the NFT market grows in popularity, creators are looking for innovative ways to improve the non-fungible tokens, according to the ERC-721 standard. Their goal is to offer investors more flexibility in using NFTs. They have extended their attention to how the ERC-1155 standard can diversify non-fungible tokens’ case uses because it allows for a single, smart contract to manage several kinds of tokens.

NFTs can expand the use cases of the blockchain in multiple business sectors and apply to a diverse public.

Also Read: What Are NFTs And What Are They For?

The post Why Do Experts Believe That NFTs Will Mark The Next Chapter In Crypto? appeared first on Tech Today Reviews.

Outsourced check printing and mailing services can help your accounts payable department by managing all aspects of writing and sending your business checks, so that you never have to waste time manually writing a check again. All you’ll need to do to ensure your payment reaches the intended payee is fill in the relevant address information using an API or CSV file. The time savings that comes with these services can provide you with the opportunity to examine your company’s future, rather than getting caught up in the minutia of day to day operations.

Beyond improving the logistical aspects of sending business checks, an outsourced printing and mailing service can also help increase the security of your company’s payments. When you send checks through the mail, simple missteps can compromise the safety of your company’s funds. In this article, we’ll review a few of the security features you should look for before hiring a new outsourced check printing service.

Secure API Integrations

When you first sign on with an outsourced check printing and mailing partner, you can quickly link your current enterprise and CRM software with the servicing company’s internal systems using a check printing API. APIs are essentially a secure bridge for transferring data between companies, ensuring that all payee and account information remains secure. When you want to order more checks or get information on the current status of your payments, you won’t have to leave the comfort of your existing business management platform.

While most business management platforms offer direct support for API keys, there are still a few situations where you might need a more customized solution. Many check printing and mailing companies offer direct assistance with setting up these integrations, including the support of a full development team. If your company is seeking an alternative to an API link, you can also share payment and account information via a CSV file. However, the information that’s shared through this format will be considerably less secure.

High-Security Check Stock

A significant portion of check security comes down to the quality of your check stock. If you’re using a cheaper product in house, there are quite a few upgrades you can make to keep your company’s money safe. Fourdrinier watermarks, chemical wash detection boxes and microprinting are all examples of security features that your check stock should include.

Microfibers, laid lines for the front and back of the check, and copy void pantograph can also help to reduce the chances of check fraud. When you hire an outsourced check printing company, you’ll never have to worry about these features again- you’ll automatically have the best check stock security.

Flexible Mailing Options

The less time your checks spend in the mail, the more secure they’ll be. Two day mailing is usually the standard for most check printing companies. However, there are a select few service providers that can provide a faster turn around. When you’re searching for an outsourced check printing company that supports your business, consider looking for overnight mailing options instead. If you send in a check printing request before 9 or 10am, your outsourcing partner should be able to guarantee that your checks are printed, processed, and mailed before close of business.

Security and Compliance Certifications

Because your outsourced check printing company will be handling a significant amount of your company and client’s secure information, it’s essential that they offer you the guarantees that come with PCI certifications and SOC data security standards. The American Institute of Certified Public Accountants manages SOC type 1 and type 2 certifications, which ensure that the business managing your information follows the AICPA’s systems and organizations protocols.

The Health Insurance Portability and Accountability Act, or HIPPA, also provides certifications for businesses that indicate their ability to securely handle patient and client information. If your check printing and mailing partner cannot provide these types of certifications, it might be a good idea to look elsewhere.

Disaster Recovery Plans

Disaster recovery plans ensure that your information remains safe in the event of a security breath at the outsourced company’s physical location. If the safety of the company’s physical servers are compromised, there should be lockdown protocols that keep you and your payee’s information as safe as possible. While this is of course an extremely unlikely event, it’s usually a good idea to be as prepared as possible for this type of situation.

Conclusion- Essential Outsourced Check Printing Security Features

Working with an outsourced check printing and mailing partner will not only make it easier than ever to send automated and bulk dispatches of checks- it will also make keeping your company’s information safe a simple process. API integrations and data security certifications help to guarantee the safety of account and payee information, while check stock features and flexible mailing options prevent there from being an issue while the payment is in transit.

The post Essential Outsourced Check Printing Security Features appeared first on Tech Today Reviews.

The method of chasing numerical accuracy is not only time-consuming but also pricey. This problem of being confused with numbers can be solved by robotic process automation.

RPA has been utilized by banking and financial organizations to automate finance and accounting activities for a long time. Technology is continually evolving, and it now has the ability to manage data more efficiently than humans while saving vast sums of money. So, hands down, automated processes, in contrast to manual operations, run smoothly.

According to Gartner, nearly 80% of finance leaders have either adopted or planned to deploy robotic process automation in their business operations, demonstrating the success of RPA in finance. In finance and accounting, hyper-automation is a great buzzword to use because RPA can do up to 30 times the work that a human slogs with. RPA in finance has progressed from doing simple automation chores to processing full-fledged automated reports, data analysis, and forecasting while connecting with other systems.

Along with reducing human resource costs, large, recurrent data-related tasks can be handled more efficiently, allowing more meaningful outputs to be produced.

To understand this in detail, let’s look at some of the RPA use cases in finance that will undoubtedly be worth your time and money:

1. PO Processing

Cash inflows and outflows are a common occurrence for financial technology enterprises. Manually creating purchase orders for a large number of clients, forwarding them, and gaining approval is not only error-prone but also tiresome.

RPA paired with AI will not only eliminate the possibility of errors but will also intelligently capture data for the creation of POs. Once the automated system is in place, an automatic approval matrix can be created and forwarded for approvals without the need for human intervention. Simple, effective, fast, and cost-effective are some of the most evident benefits of RPA in finance for the PO creation process.

2. Accounts Reconciliation

This is a key business activity that could take the accountant or team of accountants a significant amount of time to guarantee the balance comparisons are right. Back-and-forth references and logins into various systems necessitate a hawk’s eye to ensure no mistakes are made, and the figures are compared appropriately.

To put it another way, an organization with many roles and sub-companies maintains its finances using various structures and processes. Based on the business objectives and client expectations, bringing them all into a uniform processing format may not be practicable. The central team, on the other hand, is having trouble reconciling the accounts of all the departments and sub-companies.

The procedure is time-consuming, error-prone, and monotonous. The central team may benefit from RPA implementation. This is the main advantage of RPA in accounting. RPA bots automate the process by reviewing and reconciling data at each step and procedure, requiring minimal human participation to incorporate the essential parts of these activities. Only when the data shows misalignments do human involvement become necessary.

3. Invoice Processing

Invoice processing is sometimes a tiresome and time-consuming task, especially if invoices are received or generated in a variety of forms. Financial firms struggle to raise the right invoices in the client-required formats on a timely basis as a customer-centric organization.

Furthermore, the approval matrix and procedure may result in a significant amount of rework in terms of correcting formats and data. Automation can handle time-consuming, repetitive tasks while maintaining accuracy and quickly submitting invoices to the appropriate approving authority.

In the finance industry, whole accounts payable and receivables can be completely automated with RPA. The maker and checker processes can almost be eliminated because the machine can match invoices with receipts.

Final Thought

To remain future-proof, many financial institutions are embracing robotic process automation (RPA). RPA is enabling these organizations to automate audit report generation, reconciliation, risk management, invoice processing and other workflows. Things are changing, and each company sector is being compelled to evolve and discover new methods to keep up, especially in the wake of COVID-19. RPA is a game-changing technology that has benefited a slew of banks and financial institutions. Since everything became automated and digitized, a lot has been accomplished, from reduced time to mitigating fraud.

RPA is not only the future of the banking industry, but the revolution is already here now, and AutomationEdge can assist these financial organizations in seamlessly implementing such modern technologies and reducing the complexities that come on the way.

The post RPA Carving Out The Roadmap For The Future-Ready Finance Industry appeared first on Tech Today Reviews.

For example, a crypto trading bot could be programmed to buy Bitcoin when the price rises by more than 10% in 24 hours and sell it when it falls by more than 10%. The algorithm behind this process takes into account market volume and volatility as well as recent price movements to determine whether or not it should make a trade given specific parameters.

If you want to take advantage of the opportunities presented by market fluctuations without having to constantly monitor your trades yourself, then using a crypto trading bot may be worthwhile for you.

Why People Use Crypto Trading Bots

Investors use trading bots for various reasons. Some use them to automate their trading, allowing the bot to make decisions on buying and selling your cryptocurrencies, which is referred to as ‘fully automated’ trading. Others prefer to use a manual strategy that involves setting up a specific set of rules for when trades should be made and then letting the bot execute those orders based on those rules.

In other words, you tell the bot what to do when certain conditions are met (like ‘buy 10 XRP when it drops below USD$1’), but not how much or at what price you want to buy those coins.

Finally, some traders only rely on bots for backtesting strategies. They develop strategies using historical data sets and then test them out on historical markets to determine if they’ll work in real-time. It also allows them to check if the strategies will yield enough profits, given the fees charged by exchanges like Binance or Kraken.

How Crypto Trading Bots Work

There are three types of crypto trading bots: high-frequency, market-making, and arbitrage bots.

A crypto trading bot generally works by analyzing the market and making decisions based on that analysis. A bot may be programmed to invest a set amount of money in small increments into a specific cryptocurrency over a period of time, also known as Dollar Cost Averaging (DCA). Another strategy is buying or selling a particular cryptocurrency at a certain price. The bot will then execute this strategy repeatedly until it’s instructed to do something else or until there’s no profit left in its current strategy.

There are two main strategies behind crypto trading bots: high-frequency trading (HFT) and arbitrage opportunities. HFT involves placing large amounts of orders on exchanges as quickly as possible to profit from short-term price movements. An example would be buying low on one exchange and selling high on another exchange within seconds of each other.

Arbitrage opportunities occur when prices between exchanges differ significantly enough for traders using HFT strategies to buy coins cheaply on one exchange while simultaneously selling those same coins at higher prices elsewhere.

How To Choose A Crypto Trading Bot

The first thing to consider when choosing a bot is the number of exchanges that it supports. The more exchanges your bot trades on, the more coins you can trade with. Some bots can trade across major exchanges, such as Binance, GDAX, and Kraken. Others only offer support for one or two exchanges. This could be a deal-breaker for some people who want access to a wide range of coins.

Some bots are more suited for specific markets, like how Bitsgap is robust in a market that isn’t too volatile because it relies on grid trading. The strategy feeds on a market’s inactivity and makes several trades in a day as crypto prices make small movements to yield a profit.

You’d also want to look at a bot’s security features such as two-factor authentication (2FA), cold storage wallets, and application programming interface (API) integrations with exchanges. Other features that you need to examine are its customer support options and ease of use.

Finally, the cost is always a significant consideration. This is especially true if you’re using leverage to buy cryptocurrency assets like Bitcoin Cash (BCH) with borrowed funds via margin trading. This means paying interest on those loans until they’ve been repaid by profits made from trading cryptocurrencies.

Tips On Using Crypto Trading Bots

Here are some important reminders when using cryptocurrency trading bots.

Start Small

It’s wise to take it slow and make sure you understand the bot before investing a considerable amount of money.

Do Research

Research the bot before you start using it. Find out how well it performed in previous market conditions and if there have been any issues with its operation in the past.

Attend To Your Bot

Don’t leave your bot unattended for a long time. You could lose all your money if someone hacks into your account. Keep an eye on what’s going on throughout the day or whenever possible.

Conclusion

Any financial tool or service that promises returns above traditional investments typically involves higher risks. Therefore, it’s critical to research the strategies employed by crypto trading bots and the reputation of its developer in the industry and within cryptocurrency circles. A better understanding of the cryptocurrency markets is also essential for the optimal utilization of a crypto trading bot.

Also Read: What Are NFTs And What Are They For?

The post A Quick Guide To Crypto Trading Bots appeared first on Tech Today Reviews.

Macropay’s payment gateway is what you need to keep your business’ payment process rolling smoothly, as it enables online payments for many consumers and merchants around the globe. Companies are always looking for ways to be one step ahead of the competition, and Macropay’s gateway is a great way to do so.

Online financial transactions are the new normal. One of the most critical parts of any business’s eCommerce success is its payment gateway. Having a reliable gateway that opens your business to both open banking and alternative payment methods will reduce payment barriers, fraud refunds, and even increase conversion rates. By integrating Macropay’s gateway into your system, you’ll have access to a powerful dashboard that offers financial data, integrated fraud prevention and platform-integrated settlements. This allows you to have the flexibility your customers need in terms of payment.

Incorporating this gateway is a strategic move for merchants who want to grow their global footprint. It gives businesses access to open banking and various alternative payment methods, including some of the most sought-after digital payment solutions worldwide.

Some of these APM’s include Bancontact, MULTIBANCO, Przelewy24, eps, iDeal, GiroPay and Sofort; all of which are included in Macropay’s single API service for e-Commerce stores. They continue their ethos of excellence as a global payment systems provider that bundles local payment options, open banking, compliance, and frictionless banking for merchants around the world.

In addition to enhanced security and streamlined processing times for e-Commerce transactions, Macropay provides a trust factor at the checkout process that instills security in consumers when they are paying online. This can ultimately lead to a higher conversion rate for merchants as businesses that offer local payment methods have a competitive advantage over businesses that rely on traditional payment methods.

Boilerplate

Macropay is a payment gateway that enables merchants to accept payments from around the world through alternative payment methods. In addition to enhanced security and streamlined processing times for eCommerce transactions, they advocate for businesses to embrace their open banking initiatives and offer their clients a more frictionless payment experience.

Not only will this ultimately lead to a higher conversion rate for merchants, but it will also provide access to a significant global audience via a suite of local payment methods.

CTA:

Get started with Macropay today and upgrade the way you do your business. For additional information on how your business can stay one step ahead of the competition, email support@macropay.net.

The post A Macropay Review: Be One Step Ahead With An Advanced Payment Gateway appeared first on Tech Today Reviews.

Being an owner of an Indian MSME, you’re probably aware that obtaining a business loan requires a good credit score. It is because it demonstrates your level of trustworthiness to the lender. In addition, amply high CIBIL scores indicate to the lender that you are a low-risk borrower. As a result, obtaining a business loan should be a piece of cake if you meet the lender’s money lending requirements, like overall experience in managing a business as well as your per annum earnings.

What is a Credit/CIBIL score?

Credit Information Bureau (India) Limited (CIBIL), formerly TransUnion, is an Indian credit bureau. A credit information company (CIBIL) collects and manages financial data provided by financial institutions to generate a credit or CIBIL score for individuals and businesses that represent their creditworthiness and ability to repay. Furthermore, the RBI has granted licenses to three more credit bureaus: Equifax, Experian, and CRIF Highmark. However, TransUnion CIBIL is India’s most popular credit bureau. CIBIL manages credit files for 32 million businesses and 600 million individuals worldwide.

The credit history of an individual or a business is summarised in a three-digit number known as the credit score of an individual or enterprise. The number represents the report, rating, and credit history of a company or an individual. Credit scores range between 300 and 900. The higher the credit score, the better the credit history and ranking. A rating of more than 750 is said to be considered reasonable by Indian financial institutions.

Financial institutions consider a credit score of more than 750, or as close to 900 as possible, to be good. It raises the chances of loan approval even more. On the other hand, a credit score of less than 750 makes it difficult to obtain low-interest loans. Each credit bureau calculates the credit score using a different algorithm. Out of the four credit bureaus that operate in India, the credit score calculated and managed by CIBIL is used by most lenders, including banks and NBFCs (TransUnion CIBIL, Experian, Equifax, and High Mark).

Also Read: How To Secure Your Business’s Social Media Accounts

Six ways to maintain a good Credit score

1. For Starters, get a loan: This may appear to be counterproductive at first glance. However, it is a very effective way to raise your credit score. It is beneficial if you don’t have any credit. Remember that you won’t get a quick business loan if you have no credit history. It is because the lender has no way of knowing whether you will pay back the loan on time. Financial stability and repayment ability, financials, and any loan defaults are all factors considered by small financial institutions. If they believe everything is in order, they will have no trouble approving a business loan.
2. Don’t overuse your credit card: For all of your credit cards, you must adhere to a straightforward rule: your card usage must not exceed 30% of the total credit card limit. It will assist you in maintaining a stable credit score. A high credit utilization limit could also signal an impending debt burden. If your credit utilization is high, take steps to reduce it. To be fiscally responsible, avoid making all purchases with your credit card. Excessive use provides the lender with information about your spending habits, which you should keep private.
3. Joint loans are a big No-no: To increase their chances of getting a business loan, many people use joint loan applications for business capital loans. While this method increases your chances, you run the risk of overlooking the possibility that your co-applicant will make an error, resulting in a payment default. It could affect your ability to get a small business loan online.
4. Try to pay back loans in a timely fashion: Unpaid bills and EMIs, for example, can hamper your business financing application. Any missed payments will harm your CIBIL score. You’ll eventually miss out on a business loan, whether it’s due to a cash crunch or a missed deadline. To curtail such situations, have reminders for all your weekly, monthly and annual payments. You can use technology to help you with this, such as smartphone applications. When it comes to cash crunch situations, planning can save you time and money.
5. No back-to-back loan applications: Your credit score will be lowered if you apply for business loans in a short time from different moneylenders. In these situations, your CIBIL report will show a slew of “hard inquiries” or lender inquiries that will lower your credit score. A potential lender will see you as someone who is in desperate need of money.
6. Keep an eye on your credit score: Many people make the fatal error of checking their credit score right before they need quick small business loans. It may not be enough time for them to deal with a negative credit report remark. Regularly checking your credit score – once every 4 or 6 months – will, on the other hand, give you plenty of time to take the necessary precautions to avoid situations like these before applying for business financing.

Conclusion

So, get a simple business loan; if you don’t want to put your house at risk, an unsecured business loan is a better option. Indifi is a technology platform that collects and analyses data about businesses from various sources to gain insights into their creditworthiness, past and current industry performance. As a result, you can obtain a Business Loan of up to Rs 50 lacs in less than 24 hours using multiple lender channels and personalized lending, with minimal documentation, no collateral required, and higher approval chances.

Also Read: Infrastructure Stability Is Critical For Companies

The post 6 Easy Ways To Keep Your Credit Score Eligible For Business Loans appeared first on Tech Today Reviews.

MSME aka Ministry of Micro , Small and Medium Enterprises

MSME is a branch of the Government of India responsible for the formulation and administration of the rules, regulations, and laws regarding the micro, small, and medium enterprises in India. Since 31 May, 2019, the MSME minister has been Mr. Nitin Gadkari and the Minister of State has been MR. Pratap Chandra Sarangi.

MSME latest Classification (as of July 1st,2020) as per Investment in Plant and Machinery/ Equipment and annual turnover:

MSMEs are well known for generating huge employment opportunities at comparatively lower capital costs than large scale industries. They have also helped in industrialization of rural and backward areas, thus improving their conditions and at the same time assuring more equitable distribution of national income and wealth.

The Ministry regulates:

• Khadi and Village Industries Commission
• National Commission for Enterprises in the unorganized sector
• National Small Industries Corporation.Ltd
• Indian Institute of Entrepreneurship, etc.

Benefit Schemes For MSME

The Government of India has worked hard to implement benefit schemes and ensure that MSMEs can avail the benefits with ease.

For availing the government scheme benefits, MSMEs need to have an Udyam registration certificate and the unique number provided during registration. The idea of Udyam registration is to make the registration procedure that was hectic, time consuming, and involved a lot of paperwork, hassle free.

In recent times, under the Atmanirbhar Bharat Scheme, various additional benefits have been included that the MSMEs can avail, such as:

• MSME loans of around 3 lakh Crore for the purchase of raw materials, to meet operational requirements and restart businesses post the pandemic.
• Disallowing global tenders upto INR 200 Cr so as to help the domestic companies.
• Clearance of MSME dues by the Government and Public Sector Units (PSU’s) within 45 days.

Now that a brief idea has been provided about MSME, the focus shifts to

MSME sector’s contribution to India’s GDP

The MSME sector in terms of Mr. Nitin Gadkari, is the backbone of the national economic structure and has acted as a strong force in shaping India’s economic success over the years.

Currently, MSMEs contribute around 30% to the overall GDP of India which the government intends to take upto 50% in the next 5 years.

The MSME sector contributes around:

• 6.11 % of the manufacturing GDP
• 24.63% of the GDP from service activities
• 33.4% of India’s manufacturing ouput

This sector is also responsible for providing employment to around 120 million personnel and also providing contributions of around 48% of the total exports from India.

It has been observed under the Prime Minister’s Employment Generation scheme that the employment generation in this sector has shown a steady growth over the years. In the year 2014-15 it was around 3.5 lakhs, in 2017-18, it was around 4.08 lakhs and by 2019 around 5.8 lakhs.

Apart from direct and visible contributions to the GDP, the indirect contribution of the MSME sector could be that it provides a safe space for gender roles, sociological balance and also an environment-conscious livelihood.

Growth opportunities for MSMEs

The MSME sector has a great potential to further strengthen their economic contributions and thus grow by acting as top quality suppliers as well as customers to large companies in various sectors.

1. Food and Agro:

• MSMEs can focus on innovative food packaging techniques for processed food items.
• More investment in processed food, milk and dairy, and packaged foods.

2. Electronics:

• Manufacturing of electronic gadget parts, semi – conductor designs, and hi- tech manufacturing.
• Low- cost consumer electronics, microelectronics.

3. Telecommunications:

• Domestic manufacturing of telecom networking equipment like routers.
• Next generation software defined networking equipment.
• Manufacture of low cost mobiles, handsets, etc

MSME Loans

For achieving such a scenario where the MSME sector’s contribution to the GDP increases in manifolds, the most basic and primary condition is that MSMEs don’t shut down and run efficiently. For working efficiently by meeting their working capital or investment requirements, like every small scale or large scale company they too require money in the form of loans.

• Most banks public as well as private ones provide loans to MSME’s at varying interest rates depending on business requirement.
• Interest rates can vary from as low as 7 % to higher than 15%.

Loan eligibility criteria:

• Age- 18 to 70 years
• Eligible entities- Individuals, MSME business owners, traders, manufacturers
• Client must have a good credit score of above 750
• He/She must be an Indian citizen with no criminal record

Types of Loans

Term loan:

A term loan is a monetary loan that has to be repaid in regular payments with a specified period of time which generally ranges from 1 year to as high as 30 years. It is often used by companies to purchase fixed assets, which could be some machinery or building. There are 3 types of term loans, namely short-term loan (runs for 18 months ) for the companies that don’t qualify for a line of credit, intermediate-term loan which runs for 1 to 3 years and the long term loan that runs from 3 to 25 years.

Mudra loan (Under the Pradhan Mantri Mudra Yojana):

The Pradhan Mantri Mudra Yojana is a scheme launched on 8th April, 2015 by Prime Minister Narendra Modi for providing loans upto INR 10 lakhs to the non- corporate, non-farm micro, small and medium enterprises. These loans are provided by the commercial banks, small finance banks, MFIs and NBFCs. MSMEs can either approach these banks directly for the loan or can apply online through www.udyamimitra.in.

PMEGP (Prime Minister’s Employment Generation Programme):

The Prime Minister’s Employment Generation Programme is credit linked subsidy scheme for the MSME sector initiated by the Govt. of India. Under this scheme MSME schemes can take a loan of INR 9.5 to 23.75 lakhs for a tenure of 3 to 7 years for their project. The maximum project cost is INR 25 lakhs for the manufacturing sector and INR 10 lakhs for the service sector. Any person above the age of 18 years can apply for this loan

Working Capital Loan:

This is the loan that a company takes to finance its day to day operations. They aren’t meant to buy assets or for an investment but are to provide money for the company’s short-term operational needs. Whether it is a large company or an MSME, everyone requires a working capital loan to run their businesses smoothly.

Loan benefits for MSMEs

• Lower interest rates
• Minimal documentation
• Quick approval in recent times
• Low processing fees

The MSME sector in India today is on the verge of competing with MSME sectors of developed countries in terms of contribution towards the GDP. It is just that the government has to take care of this sector like a prodigal son with proper nourishment and time to time investments as a strong potential to improve India’s economy and take it to uncharted territories in the near future.

Factors like export promotion, tooling and technology, manpower training, technological and managerial skills have given enormous opportunities for the growth of MSMEs in recent times and one can hope that it continues in the long run.

Thus, if the Government ensures that proper care is taken of this sector then Indian economy is certain to reach new heights of economic prosperity.

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