by Ann Brown on November 5, 2009
What happens if I pay my debts?
If this question has been raised, not only because many people are in credit trouble are considering it. But before making the decision to suspend payments, consider the consequences of failing to pay their debts.
We then make an effort to reconstruct what might typically occur over time with the balance of a debt that has failed to pay. This is a generalization, it is worth noting that each debt left to pay evolve differently depending on the particular practices of each financial institution, the state where you reside, the amount of debt and whether you have possessions that bank can seize or recover.
After 30 days late …
* You will be charged late fees.
* Perhaps you receive a call from the bank as a reminder.
* The delay could appear in your credit report, lowering your credit score.
* For credit card, you may go up the annual interest on the card.
* In the case of mortgage loans after the first late payment, the bank will attempt to contact you, and if he fails, may issue an order of foreclosure (foreclosure in English) from this point.
After 60 days late …
* Continue the late fees.
* The bank will start to call more often.
* The backlog of insurance listed on your credit report, lowering your credit score.
* For credit card, her annual interest charge of insurance will rise.
* If debt is a car, from this point you may issue a recovery order for your car. This means that you will lose your car … And anyway will not be free of debt! You still must pay the difference between the current value of your auto sales and the value you had at the time of recovery.
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by Michael Morriss on October 15, 2009
Corporate credit comes in many forms; corporate credit cards, vendor accounts, loans and lines of credit are the most popular. Some small business can get by with a corporate credit card and vendor credit, but sometimes your business just needs cash.
Here is a perfect example of how corporate credit in the form of cash helped me to grow my business. The town that I live in holds real estate auctions once a year. They sell both residential and commercial buildings on which the real estate taxes have not been paid. The buildings sell for the back taxes, plus a little more depending on who is bidding. The property owners can get the buildings back if they can pay the back taxes.
I knew of a great commercial building in town with no liens but the back taxes of $3,000. I knew the owners, there was no way they were going to be able to redeem the property. If I could buy it, I would have a $100,000 commercial building three times the size of my current building for $3,000.
I used business credit in the form of a bank line of credit to get cash and go bidding. The property went for $6,000 and I knew I got the deal of a lifetime. No one else had readily available corporate credit; they were using their personal savings only. Years ago I had paid a company to help me establish corporate credit. My business coach insisted I needed cash corporate credit and now I see why.
If I had not previously arranged corporate credit beforehand, I would have lost the chance to expand my business. These auctions only happen once a year and very few commercial properties are available. Without corporate credit, I could never have taken advantage of this once in a lifetime opportunity to expand my business for so little money.
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by Michael Morriss on September 28, 2009
A person can actually save money by using business credit cards to purchase inventory for their small business with careful planning. It is important to have a line of business credit in place first. This can be done before you begin the business as it takes time to establish business credit correctly. Allowing yourself ample time to obtain business credit cards will allow you to choose the right type of business credit card for your particular business and to sift through all the types of business credit available today.
Once you have established credit for your business, now you need to use it wisely. A business credit card can be used to save money on inventory by taking advantage of deals offered by suppliers. Some suppliers will offer free shipping or delivery if you purchase within a set period of time. Having business credit allows you to take advantage of these types of savings.
Other opportunities may present themselves, such as a closeout where you know if you don’t buy today, someone else will. Having a business credit card is especially helpful when purchasing items for the holiday season. You need to buy now, in order to get this year’s best selling merchandise, but if you have no cash, forget it.
Don’t let deals pay you by, have a business credit card available for situations like these. You will actually save money by being able to purchase inventory when a deal is offered.
