15 Ways to Fund Your Business Without A Bank Loan

With banks’ lending figures continuing to fall, thousands of entrepreneurs are looking for alternative funding sources to get their business finances back on track. If you’re one such entrepreneur, then this article provides a comprehensive guide to the tools and options at your disposal.

Business Overdrafts

For companies with fluctuating income, a business overdraft facility from a reliable finance company can provide quick and flexible cash flow. The idea of getting a bank overdraft is simple- you dip into the overdraft in the months where you are making less profits and come back out when the business picks up.

Most finance providers charge interest only on the amount you overdraw, and many offer tailored packages for startups.

How to Repay your Personal Loan Fast and Hassle-Free

A loan is a great debt instrument. It provides the necessary funds required during a cash crunch or a financial emergency.

Many banks offer personal loans to those seeking finance to meet their personal goals and obligations. The borrowed amount has to be repaid within a specific period of time along with a certain interest. Failure to make payments on time results in late payment charges. Besides, late payments may also affect your credit score in a negative manner. The chances of getting approval on a loan thereby reduce. You should, therefore, always repay on time

Following are five tips to repay your loans fast and hassle-free:

Term Insurance Accidental Coverage and Cashless Services

The security and happiness of your family members would be your highest priority. However, life is unpredictable and you need to ensure their financial stability in case of your premature demise. This financial security may be achieved through life insurance coverage.

Traditional endowment and money back policies are expensive due to a higher premium. An excellent way to avail of higher coverage at an affordable premium is availing of a term insurance policy.

GST Rumors around Credit Card Usage

There have been rumors being circulated that payments made using credit cards or other electronic modes of payment would result in double taxation under the newly-launched Goods and Services Tax. However, this is not correct since this tax is not based on the transaction, it is applied on the fees, or the merchant discount rate (MDR) that the merchant is charged by the bank. Since merchants are not allowed to pass on the MDR to the customer, any credit card transaction is not charged to the cardholder. 

For the customer there is no change as the merchant discount rate is not allowed to be passed on. For banks the difference is that they will now get input tax credit under GST. In the financial sector the only real impact of the imposition of GST is the three percentage point increase in tax. 

Are Investors Being Misled by False Impressions About NAVs

The recent drive to clear some of the common myths about investing in mutual funds notwithstanding, some of the basic terminology of mutual funds is actually quite confusing for a new investor and even some savvy investors will also agree that they don’t fully understand some of the jargon when it comes to how mutual funds work. Some of the performance metrics typically used to sell mutual funds to customers can sometimes be misleading. 

Terms like NAV or Net Asset Value and dividend do not always mean what a new investor would assume they do. A high or low fund NAV is not something that is likely to affect the returns you get on your invested corpus.