Running a Home Based Business? Here are Risks You Need to Avoid

home based business

Running a home-based business is a luxury that allows the perfect work and life balance. If you are running a home based business , then you are not alone as there are 60% of traders across the Great Britain who are operating their businesses through their comfort zones. Besides, the small and medium enterprises across the UK are holding more than 99.9% shares in the private sector market. That means more than 3.3 million business owners are operating their businesses from their homes and they offering a great part of a contribution to the entire economy.

Operating a business from home indeed has its own advantages like flexibility, no dress code, no additional costs, and the best one, work-life balance. But still, every business has its own advantages and disadvantages as so do the home-based business. Here, we are considering the risks that can be avoided while running a home-based business. By avoiding the risks, you can not only maintain the profit but even stay ahead of the game.

 Miscalculation of Cost:

There are so many business owners that are overestimating the profit and underestimating the cost of starting up. There are several charges that should be included in the costs while operating the business from home. Like the rent and the utility, a charge will be a well-known factor, but there are other factors that needed to be planned for like health insurance, self-employment taxes, taking business services like web development, digital marketing services, and many others. While calculating the cost, don’t forget that you need to cover more than your salary and you need to take into account the additional expenses that are faced by the conducting business operations like the travel expenses, insurance taxes, outsourcing costs are named to few.

 Not considering rules:

There are some rules and regulations for residential properties that are under certain laws. How the property can be used and may ban certain operations in order to maintain peace and prohibit nuisance in the locality. Thus, you need to talk to your local authorities before planning to run your business from home. Make sure you have necessary permit to operate the business from your home. If you are living in a rented home, then talk to your landlord and check the tenancy agreement to make sure you are not breaching the contract.

 Protection from Cybercrimes:

The popularity of internet increases, so do the cyber crimes. Cyber attacks are usually common these days and getting your website and business information secure needs a heavy price. There are around 62% of cyber attacks that are specially targeted to small and medium-sized businesses and they are less likely to have the necessary resources to ensure the security of data. This makes it more difficult for unscrupulous criminals to access and steal your data by using complex passwords and two factors on all business accounts. Thus, you just need to include the antivirus software on a regular basis and keep your operating systems and software up to date.

 Proper consideration of home insurance:

If the business owners are thinking that their home owner’s insurance covers their business operations, then they are misunderstood. There are some policies which are offering limited coverage for business properties. So, this means that you could be a liable person if a business delivery slips in a way into the property. Thus, make sure that you have a business owner’s insurance policy which will combine general liability and business property protection.

Tips to Make Most of the Currency Exchange Rates for Small and Medium Enterprises

currency exchange

With the advancement of the Internet, the world has become one platform for the businesses. The business owners are nowadays used to trade across seas and have outreached the global market. On the other hand, people are even tending to buy their desired products right from any corner of the world. There might be an average armchair shopper who browses online and orders goods from different parts of the world. While businesses over different countries are now redefining the options of selling their products or suppliers to overseas customers and extending their customer base, business owners are even finding it really easy to source suppliers from foreign companies. It drives the costs down and makes it easier to keep their prices lower for the potential buyers.

Businesses that trade and deal on an international level always need to take their financial aspects very seriously. While trading overseas, the currency fluctuates as the exchange rates change from one hour to two. And the exchange rate can have dramatic changes in the values and can have a dramatic effect on the profits of their businesses. But, here we are sharing several tips that can help business owners keep up to date with the current ongoing with the international money markets. Thus, by following these guidelines you can keep your profit line stable for most of the time.

  • Convert Euros to US dollars rather than Pounds

  • If you have a sterling account, you will need to convert any foreign currencies as you do business and the bank can take a hefty cut of profits in the shape of fees. Right now, both the dollars and Euros are the heavier against the pounds so Euros can be used instead of sterling to buy stock in USD. But you need to consider the FX charge for Converting the EU to USD. The conversion rates right now mean that using EU is the most cost-effective than using the Pound.

  • Use international transfer service

  • The new online nonbank international transfer services are getting trendy these days and they are providing an attractive option for the business owners to pay their suppliers. These services let you personalize the foreign exchange service and you can aggregate the best prices form regulated currency suppliers at every fifteen seconds. This will even provide you with a fast, safe and same day transfers.

  • Maintain currency hedging.

  • Brexit is on widely awaited by the world and at this moment, many of the mini-multinational businesses are preparing the currency risk management plan. But there are forward contracts that will enable you to buy one currency in exchange for another at a specified date in the future at an exchange rate agreed upon today. This currency hedging will allow businesses to plan ahead and create a safe and secure network in order to maintain a steady Cash Flow. Lastly, you need to work with experts who will keep you update on the market movement in order to maintain the flow of cash and level of profit.

    Learn the Customer Trends to Drastically Reduce the Credit Risk in B2B Market

    debt collection

    For any business, identifying the credit risk is the vital element to achieve its goals. The company needs to predict the cash flow which will allow it to make important and strategic decisions when it comes to the operations and competition. In this fluctuating economy, where there is cut-throat competition, it is essential to remain proactive for the companies rather than reactive. When it comes to financing functions like AP and AR, there are many companies that are still operating in a traditional way and relying on manual paper-based invoice and submissions and receivables. It is essential to digitalize the AR functions of the company which will streamline each step in the transaction process. This even offers a greater guarantee of accuracy through the elimination of manual intervention.

    For the companies in debt collection industries, it is liable to learn the customer trends to drastically reduce the credit risk in the B2B market. The companies can generate credit report about the customers in order to view the past payment history, revenue and outstanding obligations which the credit report will include after deriving the information from the analytics and database. This limited information is enough to decide on whether or not to extend the credit limits of a new customer.

    Besides, there are three real-time factors that are involved in the credit risk. The companies need to check out the visibility, analytics, and resource that can provide a reliable credit risk assessment. The companies can use an automated AR solution to ascertain that provider has deep expertise and talent in the areas of technology and accounts. Lastly, you cannot separate risk for the business. It is a natural part and being able to reduce that will be more important in this competitive era.

    Top 10 Strategies to Boost the Debt Collection

    debt collection

    The companies want to update their accounts at the end of every year. Most of the companies wait until an invoice is past due before taking any action. Here, we are sharing 10 top strategies to boost up the debt collection and to speed up the collection processes.

  • The company needs to update its AR management software, as ineffective system slows the process and fail to provide intelligence requirements to improve credit to cash.
  • Reevaluate the lockbox placement. The studies should be done periodically in order to determine if they are placed in the optimum location for collections.
  • The company needs to review the policy regarding billing dates and the process of collecting debts. Make sure that the invoices are emailed regularly with the necessary information.
  • Check out the technology the company is using to interact with the customers. Whatever technology the company is using including email, faxes, electronic bill etc. should be appropriate for the organization and for the customers as well.
  • The company needs to discuss the terms with the buyers at the time of sale by making sure that they are also agreed to the terms and conditions.
  • Make it easy for the buyers to pay you. Although it is a general thing, this general element is completely overlooked. The company needs to offer all the standard payment options.
  • Ensure that the invoices have all the correct information including the postal address, contact number, and email addresses. Use invoices that make it easy for the customers to understand, remit as well as easy for them to keep a record of the invoice and payment.
  • Observe and review the experience with the late paying customers, as it will provide you with the relevant and current information you need to stay on top of the accounts.
  • Review the company’s overall process to see if you can alter any process that you can tighten up to speed up the payments.

  • By implementing these vital strategies, you can improve your billing as well as the collection of debts. You can even speed up your money into the bank.

    Diversification of Credit Risk for People with Fixed Income

    credit risk management system

    The tension in investment decision making is between the risk and its return. The important perspective is that in the reach for yield, the opportunities for missteps are countless. The long-term rates are unlikely to rise and there is an ongoing opportunity with the fixed income market. Lately, the Calamos product management and analytics team are being asked to consult on fixed income allocations that are heavily tilted towards the credit risk.

    According to the Calamos Vice President and Team head, Shawn Park, “Many products generate meaningful yield but they must reach for it in lower quality credit, often overlapping with allocations specific to high yield and bank loans. There is also a heavy dose of securitized overlap.” Furthermore, he added that “While securitized products provide a yield advantage over investment grade quality, over diversifying in assets class is not recommended.” Besides, bank loan funds, which are also known as the floating rate funds have applied now due to the rising LIBOR. The park reminds advisors that are the types of funds arrived from volatility and potential for larger drawdowns. The bank loans are highly correlated to the credit spread cycle and the credit risk is the primary risk to the bank loans.

    In addition to this, there are market trends that are based on the current market conditions and constitute the judgment. These factors include estimates, forecasts, and statements of financial market and opinions that are subject to change without notice. The views and the strategies described may not the suitable for all the investors. For the reference to specific securities, assets classes, and financial markets all are for illustrative purpose only. These are not resulted to be and should not be included as recommendations and suggestions. The main risks of investing in the market neutral income fund involve around the equity securities risks, which consist of market price declining in general and convertible securities. The risks consisting of the potential for a decline in value during the period of rising interest rates and the risk of the borrower to miss payment synthetic convertible instruments risk, covered call writing risk, short sale risk, credit risk, liquidity risk, and many others.

    The current performance date which represents the past performance displays no guarantee of future results. The current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that the sales and the shares may be worth more or less than their original price when redeemed. The performance reflected at the NAV which does not include the fund’s maximum front-end sales but had been included in the fund’s return.

    The Morningstar market neutral category reflects the investment attempt to eliminate the risks of the market by holding half of the assets in long positions in stocks and the remaining half in short positions. It represents the fund that invests primarily in floating rate bank loans instead of bonds. So, in exchange for their credit risk, they are offering high-interest payments that generally float above a common short-term benchmark. Thus, before investing into any bonds and shares, you need to carefully consider the fund’s investment objective risks, expenses, and charges.

    Holiday Budgeting… Don’t worry its absolutely simple!


    Holiday mood is on swing, but don’t forget about your budget. Holidays bring happiness but don’t let your holidays become burden on your back. Here, we have some serious stuff that that will surely simplify your holiday budgeting.

    It’s time to get sincere about holiday budgets.

    It has been traced that last year an average British family spent £800 on holidays and its preparations. Large number of people borrowed money to settle all their holiday expenses prevailed before and during December.

    Making a holiday budget now can help you to manage your financial stability after holiday seasons. Its time to think about the holidays now, so that you can deduct the chances of borrowing money in December.

    What to do now?

    Just set a budget.

    The very first step while focusing on holiday budgeting is to decide the amount of money that you want to spend on your Holidays. You can prepare a list of things that you want to do and you want to buy. This list will help you to prioritize things on the bases of their importance in your life.

    Further, you can eliminate and include the thing that you want to enjoy during holiday seasons. While deciding the budget you have to keep checking everything from gifts to partying expenses. You can simply bifurcate all stuff into different categories with their relevant expenses.

    Now once you defined your holiday expenses, you should start reviewing the amount you own in your pocket and how much you can spend on holidays out of it. You can compile all your incomes from bonus, salary and savings to arrange the amount of holiday expenses.

    It is suggested by expert personal financial advisers, that one should only spend 1.5% of their annual salary on holidays and vacations. So just remember this point while making budget.

    At the end, we would recommend you to be enormously honest with yourself and the budget you decide for enjoying your holidays. You can take advantages of holiday sales, coupons, cash and credit discounts, gift cards, etc to take pleasure of vacations at its fullest. Till then Happy holidays to you in advance.

    4 Artistic Approaches to Battle with Your Debt

    debt collection

    Debt is a horrific trouble which many of us faces through different phases of our life. The battle with debt continues until we discover the routes and means to pay the debt off completely. As we play multiple roles throughout the, there comes the time when we find it difficult to meet the ends. Having said that, we are sharing some of the artistic approaches to deal with the debt.

    Put Resources into Global Markets

    Burning through cash may appear to be opposite when endeavoring to decrease debt, However, contributing an income to global business markets will be one technique which enables you to produce potential profits. There are many online Agents available for global investment, and the global markets are extraordinarily diverse.

    For example, Forex Trading gives access to do trade in an unstable market where values always change. Hence, you should identify the threat involved and oversee them in like manner with a specific end goal to have a possibility of benefitting. Moreover, you have to choose the best suitable market and preferable amount of investment which could give you the maximum advantage.

    Sell Junk

    Numerous people fail to judge correctly the sheer costing of the things lying around their house or organization which they no more take into use. With the help of giant e-commerce websites eBay, Amazon, and many alike, we can easily sell our products to the large numbers of people. You don't actually have to spend a single penny to execute the same.

    Find the second source of Income

    The best way to eliminate debt forever and flourish financially is to begin a secondary source of income and keep it up and running. At the regular interims, you can earn and ensured the particular amount of money, by the second source of income, which will turn out to be very effective in debt management.

    If you have a specific skill through which you can do a particular task then you should spend some time to work as a freelancer. Nowadays, the trend of a freelancer has been increasing up to greatest level. opting with freelancing, you can set up the stream of your secondary income.

    Make Budgeting a habit

    You can get to know about where you are losing your hard-earned money and from where you can spare by just checking an overall view of your finance. Through the budgeting, you can cut down the unneeded expenses and start saving. It only requires good management and effective discipline to follow the budget on the regular basis. Indeed, a small proportion a week or a month can become a huge some annually.

    So, these are few of the instances where you can conclude your debt successfully.

    Machine Learning – The Gen Next Technology of the Financial Industry

    credit report

    In this contemporary era, the insurance industry is continuously evolving with the integration of high-end technologies like data enrichment and Generalized Linear Models (GLMs) for simple and complex analyses. But here the question is that which modern technology is coming next to revolutionize the insurance industry.

    Here, in this blog, we are going to discuss the technology that already transformed some crucial industries like entertainment and medicines along with judiciary system. For the better evolution of insurance industry, all expectations come from the integration of machine learning techniques.

    Machine learning and artificial intelligence are rapidly invading diverse industry along with extrapolating the different genres. For insurance companies, machine learning will change the way of their working with actuaries and statistics. It will help us to create potential products and adds-on to suffice the customers’ requirements. It will enhance decision-making by providing us predictive models based on customers’ data and algorithms which we already have.

    Certainly, machine learning techniques can also improve our telematics by calibrating scores and arranging the data aggregated from complex IoT. But this technology is still not completely flawless; it requires to be improvised to work with consistency and accuracy. This AI based modeling system will definitely provide precise and informative data-driven decisions to insurers.

    This potential technology will transform every procedure from insurance professionals to the end customers in order to provide best possible support and results to the users. It’s easy and quick to use, giving out precise and unbiased decisions. It is certain and soon that this technology will restructure the operations of the insurance industry completely. You can get more information about the predictive models for insurance companies from our website.

    Revolution 2022: Rise of Digital Payments Trends in India in Light of Google Tez App

    Google Tez App

    India is a dynamic economy with constantly altering growth stratagem and policies. Along with all new economic regimes, Indian economy is also experiencing digital revolution since last few years. Digital revolution refers to the use of digital tools for significant purposes like money transfer and payments.

    In 2016-17, a tremendous increase of around 55 % is witnessed in digital payments and it is foreseen that this trend will continue to spread its sheds in upcoming years also. It can be said that we are on the verge of the digital revolution with the intervention of government policies like demonetization which encourages digital payments.

    It is analyzed that the volume of entire digital payment had an average growth rate of around 28% from 2011-12 to 2015-16. These stats clearly show that today India is on the verge of a digital payment revolution Digital payment lays a great influence on consumers with its diversified digital technologies and platforms to conduct the online transactions. It seems that growth trends in digitalization have positive and dominant results in India.

    Further, Ratan P. Watal, finance secretary of digital payment committee of India has said: “This growth in digital payments is very critical in the light of the fact that the government has set a target of 25 billion transactions to be achieved by March 2018”.

    He also added that the worth of entire payments during 2016-17 is around 13 to 14 times of GDP of the country. Since the government is immensely promoting the cashless economy by encouraging digital payments and online pay ways.

    Watal also focused on the point that digital transactions of retails accounts sum up to 98 percent of the total volume of Digital payments.

    Undoubtedly, Indian payments industry is widely occupied by cash transaction trends. But demonetization entirely revolutionized this trend with the digitalization of the payments. It is expected that the Indian digital payment industry will reach up to $700 billion worth of transactions by 2022.

    It is predicted that in a short time 80% of the urban population of India will use digital payment ways regularly till 2022. Around, 70% of the retailers will adopt digital payment methods for retail transactions.

    Digital transaction tactics are fast and reliable and along with that charges on digital transfer are reduced which eventually uplifted the trend of electronic fund transfer and mobile banking system in India.

    This story is also influenced by the inclusion of Goods and Service Tax (GST) policy. It enabled various types of financial incorporation by improving digital infrastructure and payment systems like online GST filing and transaction through applications.

    Indian market is gradually accepting the ways of digital payment systems. Various digital pay ways are available in the market today, including internet banking, mobile wallets, mobile banking, PoS and more. While considering methods of digital transactions, India’s mobile wallet market is getting more competitive day by day. It is basically due to the intact support of e-commerce and telecom companies to the industry. In last couple years, many digital payment gateways and applications are being launched. Then after, Unified Payment Interface is being launched for easy and quick fund transfer in a day to day life. Earlier this year, many UPI based apps are launched, like Paytm, PhonePe, the NPCI's BHIM app, and a many other UPI based apps from different banks in the nation.

    With the recent launch of Google’s payment app Tez, the market is all set to experience some growth in users. This multilingual app enables the users to make payment without exchanging bank details. Based on Google’s proprietary Audio QR and phone numbers, it will transfer the money with an ease. In this huge bombardment of so many digital payment setups, will Google be able to make its way through? That will only be answered in time.

    Although there are many positive factors for promoting digital payment industry, there is still need some regulatory support from the Indian government in order to boost the growth of this industry. Hence, there are phenomenal efforts put under the development of a cashless economy, resulting in the extensive growth of digital payment industry. The growth and acceptance of digital infrastructure in India will give birth to the era of cashless banking and transaction soon.

    How Debt collection agency is helpful to Recruitment Agency

    debt collection

    It seems that collection of unpaid commission and fees become a big challenge for a recruitment firm. These debts sometimes lead the recruitment companies towards loss. I order to tackle the debt collection they generally need to get a help of Debt Collection Agency.

    Today, in this blog we are going to discuss how Debt Collection Agency is helpful to recruitment agency for their master collection procedures. Debt collection firms have in-depth knowledge of business terms of an industry, market operations and general excuses and disputes that may arise. The chunk of this information helps debt recovery agency to precisely explain debtors about their responsibilities as per terms and conditions of business and also about the consequences of legal actions. In a majority of cases, a full amount of payment is collected without any legal action, with the help of debt collection agency.

    Debt collection agencies are very beneficial for handling complicated cases and disputed debts, such as:

  • Temp-to-perm conversion fee.
  • The debtor reserves the candidate for a designation other than the one CV was intended for.
  • The candidate enters into a contract with the debtor as a sole trader or a 3rd party.
  • The candidate is provided with rebate period but if the debtor breached the terms of business than their right to the rebate would be negated.
  • Back-door association.

  • Sometimes, legal actions are necessary for debt collection, under such circumstances a collection agency discusses the advantages and risks of legal action and they will also advise their clients to perform an action if affirmed results are assured. But as we said above a majority of cases are settled without any legal concern.

    Want to know more?

    If you are a recruitment firm which needs someone to collect their debt then you can get help from the professional and legal firm- Debt Nivarana, contact us for a free debt recovery analyses.