As a business owner, the expenses sometimes seem to outnumber the profits. There are months when you feel like you pay more bills than you recoup. When you step back and evaluate what you’re spending, you wonder if it is all necessary. One area you may want to cut out is liability insurance. It isn’t required by law, and it would save you some money every month. Before you hit the cancel button, take a look at three reasons why your business is better with insurance than without it.

1. Your Building and Contents Are Covered

If you have a property and casualty insurance policy – the most common – then not only is your building protected but so is everything in it. When looking to cut corners, consider this: If you cut out your insurance and there is a catastrophic event like a fire, you may not be able to rebuild. If any of the equipment inside your building was leased, it will also not be covered, and you’ll have to pay those financing companies for the loss. Hang on to your commercial insurance lodi ca.

2. A Slip and Fall Is Covered

If a customer comes in and slips, your insurance will cover medical expenses and any litigation required. If you drop that insurance, you will personally be on the hook for the money. By cutting out a couple of hundred dollars a month now, you could end up losing your business, your home and all your assets down the road.

3. It’s Better To Be Safe

When it comes down to it, carrying business insurance is just like any other kind: It’s cautionary. It is a way to prepare yourself in case you need to use it.

Getting a good quote on business insurance is one step to making sure your business is protected now and later. When trying to slash your business budget to save money, make sure you don’t get rid of your casualty insurance.…

Fintech lenders with their technological platforms have transformed the dynamics of the traditional lending channels. The adoption of cutting-edge technology and automation has generated cost savings for the NBFCs, which has been passed on to the borrower. Thus, NBFCs are in a position to offer business funding at lower interest rates than banking channels. This is another reason why the interest rates on new business loans in India vary from lender to lender.

Each NBFC has certain pre-requisites, subject to the fulfillment of which the business loan is extended to the loan applicant. The complete fulfilment of these conditions automatically translates into a lower interest rate for the borrower and vice versa.

The following are the factors which can result in a lower interest rate for business funding:

1.       Credit Standing

The fintech lender is mainly interested in the repayment capability of the borrower. Hence the credit score is one of the fundamental aspects that are looked into by the fintech lender to determine eligibility to obtain a business loan. This in turn hugely influenced the interest rate. A minimum score of 700 is essential to be eligible for a business loan. In case of a healthy score of over 750, the new business loans would be extended on favorable terms with lower interest rates. However, even an average credit score need not necessarily result in loan rejection, if the financial performance of the business is good. To overcome the lending risk, the lender might charge a higher interest rate in such a case.

2.       Period of operations

Most fintech lenders insist on a minimum business operating period of 3 years. This is because lending to a new or a fledgling business unit is considered a risky proposition by lenders. This is largely because the business model is yet to be proved as viable or sustainable. Further, the unit might not be in apposition to generate significant revenues in a short period of time to assure the lender of its repayment capability. Lenders may charge a higher interest from a new business. On the other hand, just because the operations extend across a long period of time does not guarantee a lower interest rate. The lender would look into the stability of turnover and profitability aspects.

3.       Profits matter

Every business is ultimately conducted with a profit motive in mind. Regular and healthy profits help to obtain a business loan at competitive interest rates. The EMI payments are serviced out of the profits. It may happen that a small business is able to generate high profits within a short span of time depending on the revenue model. In such a case, the lenders would be willing to extend loans at discounted interest rates. Many NBFCs also mandate a minimum turnover limit of Rs 40 lakhs.

4.       Business fluctuations

Business cycles with a period of up and down are a given in every business. This results in fluctuations in profitability. However, some industries are prone to frequent volatility. The fintech lenders would study the industry factors and the trends prevalent in the markets before extending the business loan. This would in turn, impact the interest rates. If the market is excessively volatile, the interest rates would tend to increase, and if there is a high chance of short or long-term stability, the interest rates would fall.

5.       Asset pool

Although unsecured business loans do not require collateral, it is always advantageous to have a growing valuable asset base. A valuable asset base would reflect on the balance sheet of the business. This indicates the strength of the business. Since fintech lenders extend loans against the business performance, this is an important metric and would result in lower interest rates.

6.       Fixed vs. Variable Interest rate

Based on the credibility of the business, the credit scores of the promoters and the financial performance of the business, lenders extend business funding. The lender may offer fixed or variable rates based on the prevailing market conditions and borrower preference. It is not necessary that a fixed rate always works to the maximum advantage of the borrower. In case of a favourable economic condition, a variable interest rate can help reduce borrowing costs significantly.

Fintech lenders make extensive use of business analytics, machine learning consumer insights before arriving at the most suitable interest rate for each borrower. The past loans of the business unit are also considered before lowering the interest rates.

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If you need a dependable tax business to help you handle all of your accounting, tax, and financial needs, Michael J. Berger and Co., LLP is a business that can help you. This is a full service accounting firm located in Long Island, NY.

Experience

Michael J. Berger and Co., LLP is a full-service accounting firm that has been in business for 39 years. The staff at this company are CPA’s and Enrolled Agents. The staff is required to undergo continued education to ensure they are up to date with developments in the accounting field. The staff members at this accounting firm are dedicated to their profession and are committed to personalized service. One of the main goals of this company is to help your business become more profitable.

Services

This accounting firm provides clients with a wide variety of services. Michael J. Berger and Co., LLP will provide monthly, quarterly, and annual postings of your accounting records. They will also generate in-house financial reports so that you can see how your business is progressing throughout the year compared to previous years.

Tax Preparation

This accounting firm also helps clients with tax preparation in Long Island, NY. They will prepare and review your tax forms and payments, vehicle mileage, fuel tax forms, and sales tax forms and payments specific to your company. The accounting firm makes themselves available year round to review these forms with clients. They will also prepare and review your W-2 and 1099 forms and submit them to the IRS.

Choose Michael J. Berger and Co., LLP For Your Tax Needs

The staff at Michael J. Berger and Co., LLP has the extensive knowledge and skills needed to help you with your tax needs. This accounting firm offers reasonable fees for the convenience of the clients they serve. Whether you need help with accounting, auditing, taxes, IRS representation, financial statements, or tax planning, you can guarantee that the staff at Michael J. Berger and Co., LLP will assist you. Choose this business for tax preparation Long Island NY.…

The Great Recession experienced last decade was the most recent example of how detrimental a substandard loan can be. In this event, lenders were knowingly allowing substandard loans to be issued to receive short-term profits. This liability was shifted from business to business in the form of collateralized debt obligations. Once homeowners were no longer able to service these mortgages, the entire housing industry collapsed seemingly overnight. To minimize the issuance of substandard loans, lenders must understand moral hazard and adverse selection.

Understanding Adverse Selection

Adverse selection in the lending environment occurs when the lender and buyer do not have access to the same information. A buyer desperate to receive funds may potentially exaggerate income or assets to throw off the lender. Since the lender is going off of the available data, they are usually the victims of asymmetric information. At times, lenders still loan out money with this handicap in play to capitalize on future interest revenue. However, lenders are not always successful with this practice and become victims of substandard loans.

Understanding Moral Hazard

While Adverse selection occurs before an agreement, moral hazard appears after a buyer and lender close on a deal. An example of moral hazard could involve a buyer having a drastic change in income and the ability to service the loan. Once issued, both parties are expected to uphold the initial deal. However, unexpected circumstance can create a substandard loan which must be written off.

Another example of moral hazard involves a sense of comfortability. A buyer can receive a loan for any number of reasons. For instance, the loan could be for a small business looking to expand its operation. Obtaining a loan at this stage in the industry can provide a cushion and tendency to overspend since more funds are accessible. Moral hazard and adverse selection are just two ways of sniffing out substandard loans.…

At the heart of every successful and functioning warehouse lies a planned-out system that combines the key aspects of storage and logistics. This is why the rack and shelving industry is reaching new heights – being an integral part of both.

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Racks and shelving for warehouses allow people to eliminate clutter whilst also maximising the floor space available in the warehouse. Boltless shelving and racking will also allow workers in the space to be safer and work more efficiently, a great booster for productivity in a business. In a warehouse all space is incredibly valuable and hard to find, so shelving and racking is truly proving its worth.

A New Safety Perspective

As the rack and shelving industry continues to rise, the focus has shifted more towards a safety aspect. Worker safety is a huge factor within today’s businesses, so picking out specific boltless shelving that has safety gates is one of the trends we can see today. These specially designed gates are put in place to protect workers from any sort of falling hazard. They also allow you to transfer materials safely on them.

More and more new features for shelving and racking solutions are available, including boltless shelving. These features can help protect the product you have on your racks. For example, there’s racking that is protected from damage that can be incurred by forklifts. It also prevents products from being forced to the floor through the back of the rack.

Moving Forward

As the industry for racks and shelving continues to rise, we see the need for more selective types of shelving from different businesses. Some warehouses are being built taller to hold more, and these spaces need much higher shelving. Warehouses that make use of forklifts are demanding narrower shelving to allow for faster movement around the space.

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It’s not just the structure of the shelving that has changed. Many businesses have moved away from the traditional warehouse arrangements and are changing to make the entire space work more efficiently for them.

More warehouses will be in demand as the year continues, so it’s important for companies to have the right shelving and racking solutions that are interchangeable to allow for growth and flexibility in capacity.…