Author: Complete Controller

A Forex trader’s primary purpose is to order on behalf of a financial institution in the financial market. An independent trader will buy and sell orders on behalf of the trader or broker they work for. It means that forex traders are paid as traders and do not make any profit or loss in any trading process. Clients or financial institutions that utilize them take sole responsibility for all risks in the market. These clients hire these traders because they have a trading room and their clients don’t, and they hire them to use their trading rooms.

After some study, we found no single approach to trading in the financial markets. You can be a short-term auto trader, speculate in the medium term, or invest for years. You can make decisions based only on chart data or never take advantage of technical analysis, basing your choices only on fundamental analysis. After all, you can trade in the foreign exchange market or futures and binary options. The market possibilities are so great that everyone can choose the ideal trading method that suits their requirements. That’s what this book describes. All the traders in this book have different approaches to trading, but they share the same values – money and risk management, discipline, commitment to the system, and hard work.

1. Trading Tips from Top Forex Traders

Don’t let expectations cloud your reasoning. As a newbie, you can get overly excited about making a profit on every sale you make, which gets you in trouble at some point. The enthusiasm associated with pursuing profitability can hide your understanding of trading and lead to mistakes and losses. First, it is suggestible to get rid of any get-rich-quick syndrome from your worldview. Define your profile; before you make a trade, you need to know all the market basics. Read the research success stories of other market traders and currency pairs you would like to trade, and if we get all this information, you will not feel comfortable, then do not dare to invest in them.

2. Focus on Medium-Term Forex Trading

Medium-term trading allows traders to typically hold a position for more than one day after exploiting opportunities presented by technical situations. It takes little capital to increase big profits compared to short-term and long-term trading, which requires reliable fundamentals and significant wealth.

3. Understanding the Basic Trading Principles of The Best Forex Traders

The framework of the best forex merchant is worth it. Knowing that this is not an automatic or mechanical system but a technical and decision-making system. For example, suppose you are choleric with an explosive temperament and a penchant for travel. In that case, it will be challenging for you to force yourself to sit at a computer all day, monotonously tracking charts. So, make a list of your criteria for the activities you plan to spend most of your time on. Check to trade against these criteria and decide if it suits you or not. The key is to find the point where all technical signals in the same direction are usually profitable. The trading results of the best forex traders are high probability trades which in turn will be beneficial.

4. Choosing A Trading Program – Creating and Marking a Forex Chart

Suppose you use Meta Trader to illustrate this trading strategy, although other similar programs may get the same result. If you choose a schedule, you need to learn how to set a strategy. Choosing better indicators will help you create a robust system that generates multiple trading opportunities with little or no risk and vice versa.

5. What Qualifications Do You Need to Become a Forex Trader?

As a forex trader, you do not need to earn an MBA or Ph.D. Or, to any extent, to succeed. What permits you as a forex trader is patience, willingness to learn, and calculating and monitoring the market pattern before placing a trade order. Forex trading is not as challenging as it seems, although it has specific conditions, behaviors, and risks. You should know all this before taking risks. Although it may seem difficult at first, you will be able to trade without problems once you learn.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

The time for planning years ahead has passed. A corporation must first become flexible and adapt to change to be successful. The structure of business processes is one of the most critical points for development – it is necessary to analyze and change business processes by current tasks and goals. In this way, companies can maintain high efficiency and optimally use available resources. With this, a methodology for improving business processes will help.

Six Sigma

Six Sigma, or the Six Sigma Concept, is an approach to project management in a company that eliminates all obstacles to a successful business or production. Six Sigma was born when Motorola lost a lot of money due to constant manufacturing defects. Then engineer Bill Smith came up with a whole system to reduce the number of these defects to the minimum mathematical error.

The main principles of the concept are sincere interest in the client and satisfaction of his needs, management based on data and facts, teamwork, and staff involvement.

When implementing Six Sigma, two algorithms are used:

• DMAIC (Define – Measure – Analyze – Improve – Control) – is used if the company improves business processes, including cost reduction, increase in quality, efficiency, and effectiveness.
• DMADV (Define – Measure – Analyze – Design – Verify) – is used if the company creates something new, for example, a new product.

Total Quality Management (TQM)

TQM, or Total Quality Management, is a management method based on providing quality services from the customer’s point of view. The main idea of TQM is that the company should work not only on product quality but also on the quality of work in general, including the creation of staff. Constant parallel improvement of these three components – the quality of products, the quality of the organization of processes, and the level of personnel qualification – allows for achieving a faster and more efficient development of the organization.

Quality is determined by such categories as the degree of implementation of consumer requirements, the growth of financial performance, and the increase in the satisfaction of employees of the organization with their work.

Benchmarking

The basis of this scheme is the comparison of business processes within the organization with the regulations for similar actions in companies that have achieved better results.

During the analysis, experts find out what negatively affects the company’s work. Correction of these errors helps to improve the quality of goods or services and increase financial performance. It is an easy and cheap method to improve business processes, although sometimes you can solve complex tasks in simple and obvious ways.

Benchmarking allows you to achieve cost reduction and process cycle time, and the error rate is reduced by 20-50%. But at the same time, there is always a chance to copy only the outer shell of successful processes without profoundly understanding their essence, which will lead to wrong decisions.

Business process reengineering (BPR)

A business process management technique improves business processes within a company and between different organizations.

It is a very complex and costly method. It is used either by companies on the verge of bankruptcy or by leading companies that feel the need to stay in the first place and grow faster than competitors.

Each process is first mapped to an ideal design and then fine-tuned to suit specific circumstances, funding, and other resources. Then all operations are coordinated with each other, a corporate strategy is created or updated, and performance criteria are determined and controlled. The team’s goal is to bring reality closer to the ideal as much as possible.

Robotic Business Process Automation

Automation is the transfer to software robots of a part of routine and monotonous tasks performed according to an algorithm.

Automation helps minimize errors while performing tasks while freeing up employees’ time for more strategically important missions. In addition, automation creates and maintains the same high level of service.

An excellent example of automating processes within a company can be working with counterparties and customers, processing orders, answering emails, invoicing, etc.

How ElectroNeek can improve business processes with automation

Every day, companies are trying to reduce the number of errors in their processes and increase their efficiency because this directly affects customer satisfaction and profits. ElectroNeek helps analyze the operation of processes and optimize the work to perform all tasks in compliance with clear action algorithms.

ElectroNeek offers unique solutions for the most efficient automation of business processes. The platform allows users with minimal programming knowledge to analyze employee productivity and create software robots for inefficient, repetitive tasks.

ElectroNeek products are focused on the entire cycle of customer tasks. For example, Studio Pro allows users to create bots using an intuitive interface, while SaaS Orchestrator helps manage and connect bots into scalable chains. It is a single web service where all processes are conveniently monitored and controlled – regardless of the number of clients.

In addition, deep analytics tools help monitor all company business processes, find errors, and fix them in real-time.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Blockchain technology is the core of our Wrex payment service. Market trends indicate that distributed ledger solutions have emerged in recent years that go beyond the financial industry. In this overview, projects from 20 areas of blockchain use are presented. In the 1st part of the material, we will list services from 10 industries, including authorship and ownership, goods and raw materials operations, data management, diamonds, identity verification, energy, e-voting, etc. Blockchain is also called distributed registry technology because many independent users store the entire chain of transactions and the existing list of owners on their computers. Even if one or more computers fail, the information will not be lost.

We have collected concepts that are often used when discussing the Blockchain. They will help you understand how distributed ledger technology works. Even though interest in Blockchain technology is more related to finance, the scope of application of distributed ledger technology is not limited to it. Along with banks and fintech startups, players in other non-financial markets have also taken notice of the technology. They are looking for ways to capitalize on the opportunities it provides. Let’s look at some interesting examples of practical applications of blockchain technology outside the financial services industry.

Authorship And Ownership

Here Blockchain is used not only for the transfer of funds. You can use decentralized distributed ledgers to store data securely and openly make various transactions. Moreover, creating an identity on the Blockchain can give individuals greater control over access to their data and how they are exposed to others. Ascribe helps artists and creatives to verify and maintain copyright through Blockchain. The Ascribe marketplace allows you to create digital editions using unique identifiers and digital certificates to verify authorship and authenticity. In addition, a mechanism has been established for transferring ownership from an artist or author to a buyer or collector, including its legal aspects.

Operations With Goods and Raw Materials

The Real Asset Company allows individuals worldwide to purchase gold and silver bars safely and efficiently. The company has developed an investor-friendly platform powered by an international safe and vault infrastructure that provides buyers of gold, silver, or other precious metals with an online account. Goldbloc’s gold-backed internal cryptocurrency adds an extra layer of transparency to managing gold investments. According to the company, the ability to “tie” every gram of gold to a digital cryptocurrency will help return the gold to countries’ financial systems. Uphold— a platform for moving, converting, transacting, and storing any form of money, goods, or raw materials. The service links banking, credit, debit cards, and bitcoin wallets in the service’s internal digital wallet to facilitate financial services or transactions. Businesses and individuals can transfer funds to their accounts in the system using bank transfers, debit, credit cards, or bitcoin wallets.

Data Management

Faction is a notable blockchain company that uses distributed ledgers outside of the financial realm, in this case, in the data management realm. The company’s identification blockchains are used to implement a database management system and data analysis in various areas. Businesses and, governments, and non-profit organizations use faction to simplify the procedures for keeping records fixing information about business processes. Faction solutions enable customers to conduct their business to their market’s safety and regulatory requirements. All records in the faction are timestamped and stored on blockchains, reducing the cost and complexity of managing, auditing, and complying with regulatory requirements.

Diamonds

The diamond industry is one of the largest natural mining industries, contributing to the GDP of African and other diamond-producing countries. Its distinguishing characteristic is a high level of crime and law violations. Gemstones are very small in size and therefore readily amenable to hidden transportation. The best part for the criminals is that the transactions are done privately, and each sale allows you to make a profit for several years. Diamonds have a notorious reputation for money laundering and terrorist financing on a truly massive scale worldwide.

Conclusion

It makes blockchain technology one of the best for financial transactions. It is almost impossible to assume the sequence of characters of the digital code of cryptographic keys. But at the same time, there have already been cases of wallets being hacked, so it is better to connect them to the network only for the duration of transactions and keep them offline for the rest of the time.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

In the ordinary world, we are used to keeping money in a wallet, and if we draw an analogy between paper money and cryptocurrencies, they will have a lot in common. It means that you must also store bitcoins in the wallet. However, if a regular wallet can have only a few parameters and is intended only for storing money, then in bitcoin wallets, everything is somewhat more complicated. There are several brands of hardware wallets on the market, and the list is constantly growing. You may ask why we consider the options above the best hardware wallets. First, these are some of the oldest hardware wallets on the market. They are also the most used wallets around the world. In short, these are brands and models that have proven themselves in the market. We analyzed certain aspects of these hardware wallets, including cost, user experience, supported cryptocurrencies, security, and others. According to the type of storage of bitcoins, they can be divided into hot and cold, by the kind of storage of private keys – custodial and non-custodial, and by the type of installation – into local, mobile, hardware, browser, and paper. In this writing, we will attempt to understand all aspects of bitcoin wallets so that you can create a secure place to store your digital assets.

What Is a Bitcoin Wallet?

In essence, a bitcoin wallet is an application with which you can store bitcoin. Although, to be honest and accurate, it is not physically held anywhere – users are given data that provides access to their account. Depending on the type of wallet, this data can be a standard email + password pair, a private key, or a seed phrase; we have already talked about it here. The primary purpose of a wallet is to store and be able to send and receive bitcoins from other people. In principle, everyone who is somehow connected with cryptocurrencies receives payment in bitcoins, trades on cryptocurrency exchanges, etc., must have such a wallet. Before creating a bitcoin wallet, let’s study each type of wallet in more detail.

Hot Wallet vs. Cold Wallet

The contrast between a hot wallet & a cold wallet is that a hot wallet works when linked to the Internet, while a cold wallet can work without it. Hot e-wallets are less secure, as there is a risk of your data being stolen over the Internet. However, they are more in demand among users. Cold e-wallets are used for cold storage of cryptocurrencies, so they are more secure. Which bitcoin wallet you use is up to you – if you often make small transactions, then a hot wallet is suitable for you, and if you need to store large amounts for an extended period, then it is better to use a cold wallet.

Custodial Wallet VS Non-Custodial Wallet

The essence of custodial wallets is that they do NOT give you access to their private key but store it on their centralized server. Often, such a solution is provided by cryptocurrency exchanges, but there are also several cryptocurrency wallets – Crypto Pay and Blockchain.info. This explanation benefits you can restore access to your account via mail if the password has been lost. Minus – your account may be frozen. In case of intervention to unfreeze, you may be asked to undergo KYC. Also, you can lose money during hacker attacks, which have been a very popular event lately.

Non-custodial e-wallets work the other way around – they give you complete control over your private keys without using a server. Of these wallets, the Trustee Wallet has gained popularity among users, but others are also. A huge plus of this explanation is that the funds belong only to you. No one else can get hold of them without your seed phrase. However, this is also a minus of such a wallet because if you lose your key, then you can no longer return access to it. For example, if you crashed your computer or lost your smartphone, you can only restore access using the seed phrase given to you when you open an account. Therefore, we recommend storing your seed phrase NOT on your mobile device but separately in a safe place.

Local Wallet

A local (desktop) wallet is an application installed on a desktop computer or laptop. This kind of wallet is one of the most difficult for users, but at the same time, it has the best indicators for security and anonymity. You should note that they are often used by actual crypts or companies that produce developments on the blockchain. Desktop e-wallets can be divided into thin and thick. The bitcoin hardware wallet is a separate device that looks like a flash drive. Such a blockchain wallet is used for “cold” storage of bitcoins and connects to the Internet only when a transaction requires to be made. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

There are both positive aspects – for example, the Rural Mortgage state support program, which allows you to purchase a house in the village at 3% per annum, and difficulties: it is necessary to confirm the status of a residential facility, land ownership. Mortgage banking programs allow the purchase of housing in the secondary market. It is an affordable and common way to purchase your own home. Mortgage means issuing a loan secured by the acquired apartment. For the bank to approve a mortgage for secondary housing, you need to responsibly approach the choice of an object and the preparation of documents. Buying an apartment on the secondary market is different from a deal on the primary one.

Features Of a Mortgage for The Purchase

When applying for a mortgage on a private house, difficulties often arise, especially if the object was built more than 20 years ago and is in a rural area. During the past years, there has been a lot of unauthorized construction. The order of land use has changed. Not all owners had documents drawn up correctly: if, at the time of the conclusion of the contract, the land on which the house is found does not belong to the category of land of settlements, it is impossible to issue a mortgage on such real estate with homes built on the grounds of categories: Specially protected area, Special purpose, Defense or military purpose, purchase and sale operations are prohibited by law if the ownership of land or a house is not registered, it is registered for different people, or some of the documents are lost, you can obtain a mortgage after the documents are brought into line.

What Is Secondary Housing?

The secondary market includes all apartments that have an owner. It does not matter if he lives in this apartment or not. As soon as the house is put into operation and the owner has registered the right of ownership, the housing is automatically transferred to the second fund. No need to wait for the fulfillment of construction; you can move immediately after the execution of the contract of sale. You can also register right away: you can enroll in a polyclinic, register your children in a kindergarten or school at the place of registration, can receive social benefits without waiting. housing on the secondary market is in areas with developed infrastructure

Stages Of Obtaining a Mortgage for Secondary Housing

Bank Selection

Explore available mortgage programs: for military, large and young families, with the participation of maternity capital, with state support. Use the mortgage calculator and calculate its total cost.

Submission Of a Preliminary Application

When evaluating a potential borrower, banks consider credit history, solvency, age, and existing credit burdens. To get pre-approved for a mortgage, fill out an application on the bank’s website. The bank will consider the application within three days and make a preliminary decision.

Search For Housing and Collection of Documents

When an apartment is found, it is necessary to submit information about it to the bank and confirm the mortgage. You will need personal documents of the borrower, the seller, and documents for the apartment, including a contract of sale. At this stage, a property appraisal is carried out. For this, an independent expert is involved. The bank’s final decision will depend on the correctness of filling out the documents, the completeness of the package, and the reliability of the assessment of the property.

Risks When Buying a Second Home

State support programs for purchasing an apartment in a new building from 2021 to 2022 include the requirement to buy real estate from sure developers. The chances of making a deal with an evil company are minimized. But when purchasing an apartment in the secondary market, most of the responsibility lies with the borrower. He must carefully check the seller and the legal purity of the object. You can order a cleanliness check of the thing at the bank or insure the title – this will help avoid trouble if the seller is dishonest. If the selling agent becomes a scammer, the borrower will be left homeless, while you will need to continue to make payments on the loan.

Conclusion

When buying real estate in a mortgage on the secondary market, the technical characteristics of the object and the legal purity of the documents play an essential role. The higher the liquidity of real estate, the greater the chance of obtaining a mortgage loan. When dealing with houses, they also check the absence of encumbrances on housing and land. Like the land plot, the house should not be pledged or under court. Another factor is the recognition of the object as a safe residential building. The assessment considers the age of the house, wear and tear, the date of the last overhaul, and the condition of engineering networks and heating systems.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

When you’re close to retiring or have already retired, you want to protect everything you’ve worked so hard for. While some factors, including market fluctuations, are beyond your control, some actions can cause your nest egg to dwindle.

Here are a few ways to get into retirement trouble:

1. Ignoring Your Long-Term Strategy

It’s easy to get seduced by the allure of active markets and high returns. However, a long-term approach is considerably more appropriate for someone planning for retirement. Every day, the needs vary, and attempting to time them may cost you additional stress and possibly harm your finances. To avoid this trap, develop an investment philosophy based on your goals, personality, and risk tolerance. Then stick to it, regardless of what happens in the markets or the headlines.

According to a Dalbar study from 2015, when playing the market results in underperformance. In a panic, buying high and selling cheap diminishes your overall return and jeopardizes your retirement. Instead, what should you be concentrating on, refusing to ride the market roller coaster, and maintaining a long-term view and disciplined approach?

2. Borrowing from Your Retirement Savings

It happens more frequently than you may believe. According to the Transamerica Center for Retirement Studies, 23% of those questioned used their retirement savings to cover an unexpected bill.

In two ways, this conduct can lead to a reduction in retirement savings.

If you take out a 401(k) loan, the interest is taxed twice. While any money borrowed is tax-free, the interest on the loan is paid with after-tax dollars.

You are taxed again when you withdraw funds in retirement. You must also repay the loan within 60 days if you leave your employment or are dismissed, regardless of the borrowed amount. If you don’t, you’ll be subject to income tax and a 10% penalty if your income is less than $5,912. Except for specified conditions, early withdrawals from a traditional IRA are subject to a 10% penalty and taxes. Roth IRAs provide additional flexibility and allow you to withdraw contributions tax-free, but they come with long-term costs.

Second, and most significantly, when you take money out of your retirement account to pay off a debt or cover an obligation, you forfeit the opportunity for growth and compound interest.

Depending on your age, you may never be able to replenish your funds. Create an emergency savings account instead and tell yourself that your retirement funds are off-limits. While it may appear easy to use your retirement money in this manner, you are robbing your future retirement.

3. Failing to Take Required Minimum Distributions

If you reach the age of 7012, you must begin taking RMDs from your traditional IRA and employer-sponsored retirement accounts. You must follow the RMD guidelines regardless of whether you need the money when you reach this age. What happens if you don’t stick to your word? The IRS will charge you a 50% penalty for excess accumulation! It might drastically reduce your retirement funds. If you are obligated to withdraw $5,000 and do not, you will be responsible for $2,500. That was an unnecessary loss. To make matters worse, if you don’t have enough money in an emergency fund to cover the penalty, you may be forced to utilize your retirement funds to protect it, severely jeopardizing your financial future.

4. All your eggs in one basket

For this reason, diversification is one of the most widely discussed financial strategies. It safeguards your money from market fluctuations. While you can’t eliminate risk from your portfolio, you can mitigate the impact if things go wrong. You risk losing your retirement savings if you invest too much of your money in one stock or one sector of the economy. Combine that with global exposure, alternative assets, and a stock-light portfolio. Examine the overall picture of all your accounts, including those sponsored by your employer, and make sure you’re well-diversified.

5. Working Alone

If you don’t work with a reputable financial advisor, you could jeopardize your money. An adviser can assist you in sticking to a long-term goal, managing emotions, and providing invaluable assistance and advice. Our number one mission as independent financial advisors specializes in guiding people through their Second Growth phase of life, a time of protecting, building, and transferring money. It is to provide you peace of mind and the guarantee that you will meet your retirement needs. Contact one of our locations now for a friendly consultation to take the first step in preserving your hard-earned retirement resources.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

That is why it is essential to comprehend the benefits and drawbacks of debt financing. It is said that it “needs money to make money,” but it is also required to be able to “borrow inexpensively” to be successful.

The question then becomes which source of funding to seek to establish and expand its business: while there are many alternatives, we will focus on the bank loan here.

Debt financing is borrowing money from a moneylender or a bank to raise capital. Creditors must pay interest on borrowed funds in exchange for a loan.

Debt can be paid off, allowing small firms to stockpile merchandise, hire more employees, and buy real estate or equipment.

Benefits

One of the most practical benefits of debt financing is that you retain control of your company. When you accept a loan from a financial institution or an alternative lender, you must make timely payments throughout the loan.

On the other hand, suppose you give up ownership in the form of shares in exchange for funding. In that case, you are giving up a portion of your restaurant or business to an outside entity, who can then influence the future of your business based on their investment. It isn’t the best option if you want to be the sole master on board.

You benefit from tax deductions

Deductions from taxes are a significant advantage of debt financing. You can deduct this debt’s principal and interest payments from your business income taxes because it is classified as a business cost.

Low-interest rates are available

Credit cards, peer-to-peer loans, short-term loans, and other debt financing options may not be beneficial if interest rates are incredibly high. You can, for example, use bank rate comparators to compare the various interest rates offered by different banks.

You develop your credit history

Lack of financing or insufficient operational capital is one of the leading causes of business and restaurant failure.

If you want to get long-term, low-cost debt financing, you’ll need a good credit history. As a result, the chance to improve your business credit history is a significant benefit of taking out a loan.

Long-term debt can eradicate reliance on expensive debt

Specific lenders employ high-pressure sales tactics to get firms to take up short-term loan advances. It’s not unusual for firms in desperate need of cash to take out five or six cash advances in a run.

This method can trap a borrower in a never-ending debt cycle. To prevent becoming trapped in a cycle of constant borrowing, search for a loan with low-interest rates, long periods, and affordable monthly payments.

Disadvantages

You must reimburse the lender (even if your business goes bankrupt)

The guidelines for operating with a lending institution are relatively straightforward. You must refund the loan according to the terms agreed upon, and it means you must make payments even if your company goes bankrupt. Because most lenders require collateral, you may liquidate your assets to repay your obligation.

High rates

Predatory lenders exist, and their methods for luring naïve small company owners are becoming more sophisticated.

Some unethical lenders utilize measures other than the APR (annual percentage rate) to hide the exact cost of a loan. Although this tendency is not specific to debt finance, it is worth noting. Work with a lender who is evident and provides you with accurate information. Know your loan’s APR and payment and compare them to the original sum.

You will need a guarantee

Collateral is one of the “5 Cs” of lending, described as a secondary source of loan repayment that you can utilize to ensure the lender.

If a bank may sell an asset for cash, it is considered collateral. Equipment, structures, and (in some situations) goods may be deemed enough collateral.

Collateral helps lenders mitigate risk and is required for many types of loans. The quantity of collateral a borrower must furnish is usually proportional to the loan amount. Some borrowers consider this to be a disadvantage.

If you’ve concluded that more money will help you grow your company, you should think about the advantages of debt financing.

All debt is the same. So, work to keep your credit score high to acquire the best interest rate and more extended payback periods, which will boost your chances of staying in business.

If debt financing is one of your options for expanding your company, you’ll need a versatile and adaptive checkout solution to handle your point of sale and save money over time. Contact our experts right away to learn how Lightspeed can assist you.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Here we discuss the main factors that determine the level of prices for the company’s products in a market economy.

Factor 1: Demand for the Product

The market is the oldest reality of humankind, which not only does not become obsolete over time but also allows the best way to combine individual and public interests in the conditions of any social system.

Most clearly in the market are two groups of interests – sellers and buyers that determine supply and demand. Demand is the solvent desire of consumers to purchase a product at a certain price. The following factors determine the demand for a product:

Dx \u003d (T x, PHP x, P y, P, W, F)

Where D x is the demand for goods; T x – is the buyer’s need for this product; Y is the consumer’s income; P x – the price of this product; P – the price of a substitute product; P is the price of the complementary product; W is the level of well-being, i.e., purchasing power of the consumer; F is the opinion of the consumer regarding the prospects for his well-being.

Factor 2: Production Costs

Demand usually determines the maximum price a firm can charge for its product. The firm’s average variable cost per output unit determines the minimum fee. There are two types of the expenses for a firm: fixed and variable. Fixed prices do not vary when output rises or falls. As a result, the company must pay monthly rent, heat, interest, and personnel compensation, among other things. Regardless of the degree of output, fixed expenses are always present.

Variable costs vary with the level of production. They are called variables because their total amount varies depending on the number of units of goods produced. Per unit of output, variable costs can remain unchanged.

Factor 3: Competitor Prices

You can achieve it in several ways. Although the maximum price may be determined by demand and the minimum by the production cost structure, a firm’s setting of an average price range is influenced by competitors’ prices and market reactions. The firm may instruct its representatives to make comparative purchases to compare the prices and quality of goods with each other.

If the product is inferior in quality, the firm cannot ask for the same price as a competitor. Request more than a competitor, and the company can tell when its product is higher in quality.

Factor 4: Types of Competition in the Market

The price policy of the seller depends on the type of market. Economists distinguish four types of markets, each of which poses problems in pricing.

Pure competition. The pure competition market consists of many sellers and buyers of similar products, such as wheat, copper, and securities. No individual buyer or seller has much influence on a commodity’s current market price level.

This type of competition is not typical for airlines due to the limited number of manufacturers and the heterogeneity of products.

Monopolistic competition. The monopolistic competition market consists of many buyers and sellers who transact not at a single market price but over a wide range of prices.

Factor 5: Price Validity Period

The price validity period depends on the pricing strategy. Still, in any case, the price cannot remain constant for a long time since there are many competitors on the market and changes in the external environment occur, which, of course, leads to a price decrease or increase on the goods and consequently, to reduce the period of action of the price.

Factor 6: Product Marketing Costs

Marketing is a human activity that satisfies needs and requirements through an exchange. Anyone who wants to sell needs to find buyers, identify their needs, design appropriate products, market them, transport them, negotiate prices, etc. The exchange process requires work.

Factor 7: The Novelty of the Product

A firm’s strategic approach to pricing depends partly on the stages of a product’s life cycle. According to the nature of the appearance on the market in terms of novelty and modernity of the embedded consumer properties, goods can be classified as follows.

1. Pioneer goods are designed to satisfy non-traditional consumer demand, new needs that have arisen or deliberately modeled by the producer or the state in the consumer community.
2. Market novelty products arise from further research to improve pioneer products because of systematic discoveries, continuous invention, rationalization, and current technology improvement.
3. New goods mean such a modification of an existing product (product, product, service) of market novelty or its technical modernization, which the consumer considers significant

Thus, the main factors determining the price level are:

• Price elasticity of demand.
• Level and structure of production costs.
• The pricing policy of competitors.
• Type of competition.
• Costs associated with services and transportation of goods.
• Purpose and plan for setting the market price.
• Availability of funds for competitive struggle.
• Additional costs are not included in the price to attract a buyer.
• Deciding on how much to raise the cost of goods.
• Changes in the environment may affect the entity’s ability to determine pricing policy without the intervention of a third party.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

You can utilize the balance sheet to understand this financial structure’s uses and financing methods.

Financial structure: a significant indicator

The financial structure allows the proportion of financial debt and equity to be calculated. In other words, the debt-to-equity ratio.

This structure can change. It is determined by the financial limits imposed by the nature of the companies’ activities and the investment decisions made by their management.

The financial structure analysis allows you to do things like:

• Evaluate the danger of failure
• Examine the job and resource stability

There are two types of jobs: temporary jobs related to the company’s activity, such as acquiring intangible, material, or financial resources, and permanent jobs related to the company’s activity, such as operating expenses, financial expenses, etc. Financial resources include shareholders’ equity and net debt.

Because it shows the accounting balance of resources and their utilization, a company’s balance sheet is the most excellent representation of its financial structure.

The balance sheets

It is shown as a two-part table, with the correct part titled “liabilities or resources” and the left section titled “assets or jobs.”

The assets represent the company’s capital (liabilities) and its intended use (destination).

The obligation represents the source of the funds needed to fund the assets.

• Debt/equity and financial structure

Choosing a financial structure for a business boils down to choosing between debt and equity.

• Debt

Debt has two functions:

• Debt provides for the compensation of the difference between income and disbursements and the financing of working capital requirements
• In the case of long-term debt, fund an investment that will be repaid by future income

• Equity

These are the financial resources available to a business (excluding debt). These capitals include:

• Social capital
• Legal and statutory concerns
• Yet another postponement

• Negative equity

A company’s value is negative when its equity (or equity) falls below half of its share capital. The company’s legal representative must then call a meeting within four months of the annual general meeting to endorse the accounts for the fiscal year in deficit and decide the company’s fate.

Own funds: calculation methods

Equity includes:

• Social capital
• Accumulated reserves
• Carryovers (credits or debts)
• Paid issue premiums
• Exercise outcome

Consequences of negative equity

When equity falls below half of the share capital, the corporation (theoretically) loses the ability to fund its investments and operations.

The following are two options:

• Dissolve the corporation
• Continue the business for another two years to re-establish the regulatory quantity of equity

This judgment must be published in a medium that is permitted to receive legal announcements (press publishing or online press service) and registered in the Kbis in both situations (official document attesting to the legal fact of a commercial enterprise in America).

Financial structure: choice

A company’s financial structure refers to the proportion of bank loans and equity it uses to fund its operations.

You can utilize the balance sheet to understand this financial structure’s uses and financing methods.

The cost of financing is meant to purchase an asset whose profitability must exceed the profitability of this resource for the business to be profitable.

Several factors will influence the decision between debt and equity. Among the most important are:

• The rate of interest (low rates encourage debt)

The situation of shareholders can choose between using stock to protect the company’s independence or using debt. On the other hand, select borrowing to prevent capital growth that they could not sustain, and so on.

Stout frequently assists customers in obtaining the capital they require to pursue expansion prospects, make acquisitions, or manage shareholder cash targets and recapitalizations.

Acquisition financing

Obtaining the necessary financing to execute an acquisition can be a complex undertaking. Stout balances the market across the entire equity structure using the most competitive terms. We also ensure that the financial structure is flexible enough to satisfy the company’s future goals following the transaction.

Capital increase in cash

Entrepreneurs frequently require assistance in determining the feasibility of acquiring partial funding for their company while actively involved in management. We routinely work with instances where one shareholder wants to sell their stock while the others want to keep theirs. To complete these types of transactions, Stout assists companies with arranging debt and junior financing.

Growth opportunity funding

Many businesses require capital to take advantage of lucrative expansion prospects. Stout can uncover sources of money for various situations, including extending a product line/location or operating capital to scale a growing business.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Annuities Can Be Complex

There are numerous different types of annuities, which can cause a lot of confusion among consumers. Is a single premium instant annuity right for you? A variable-rate deferred payment annuity? An indexed fixed annuity? It might not be easy to sort through the various elements of each annuity, especially when one insurance company’s fixed indexed annuity differs from another’s.

Holders of annuities and other insurance products, for example, are frequently subjected to a mortality and expense (M&E) risk charge. It compensates the insurance for any losses incurred by unforeseen events, such as the annuity holder’s death.

Your Upside May Be Limited

When you buy an annuity, you’re sharing your risk with the rest. You’re paying a charge to the insurance company that sells you the annuity to manage that risk. You might not make more money from an annuity than you put into it or as much as you could have made if you put your money somewhere else, just like you might not make more money from homeowners’ insurance if your house doesn’t burn down.

You Could Pay More in Taxes

Several potential annuity disadvantages relate to taxes.

Ordinary income vs. capital gains

An ongoing criticism is that annuity income is taxed as ordinary income, subject to 22% to 35% marginal tax rates for middle-income households. However, this disadvantage of annuities is not as severe as it may appear.

Traditional 401(k) and IRA payouts are likewise subject to regular income taxation. (Roth 401(k) and Roth IRA distributions are tax-free since you put money into them with money already taxed.) When these are sold, they are taxed at long-term capital gains rates. The essential comparison applies to nonretirement investments held for more than a year.

No step-up in the cost basis

Here’s a step-up basis when you leave them investments like stocks, bonds, mutual funds, and real estate. Even if you paid $10,000 for an investment, if it is worth $20,000 when you die, the IRS considers your heirs to have paid $20,000. They won’t owe any taxes if they sell it right away for $20,000. They will only pay tax on $5,000 if they sell it for $25,000 two years later, and that money will be taxed at their long-term capital gains rate. Tax penalties before age 59½

It’s difficult to read an article regarding annuities without hearing about the drawback of the 10% early withdrawal penalty, but most themes don’t explain when it applies. You may have misled yourself into believing that pulling any money out of an annuity contract before the era of 5912 will result in a 10% penalty tax. It’s not that easy, and the punishment occurs far less frequently than you might assume.

Expenses Can Add Up

The total cost of an annuity might be obscured by fees, reducing the amount it pays out. 17 Before you acquire an annuity, know how much you’ll have to pay for all the features you want. While a mortality and expenditure charge is always required, some fees are only applicable to types of annuities. Other costs are only charged if you add optional features to your annuity.

The following are common annuity expenses you should be aware of:

• Expense fee and mortality
• Fee for administration
• Charge for contract maintenance
• Fee for subaccount
• The premium tax imposed by the state (in seven states and Puerto Rico)
• Fee for transferring investments
• A “surrender charge” is a contingent deferred sales charge.
• The primary safeguard
• Cost-of-living adjustment/inflation protection
• Rider for long-term care
• Rider for lifetime income
• Check the fee disclosures for any annuity you’re thinking about buying. To learn how costs for similar annuities differ, compare them.

Guarantees Have a Caveat

The insurer’s financial soundness determines the annuity’s guarantees. Because the FDIC, like bank accounts, does not protect annuities, you should examine the insurance company’s financial strength ratings with AM Best and Standard & Poor’s before you buy.

If the insurance firm that supplied your annuity fails, few possibilities are. Another insurance firm might take over and make the changeover smooth. You may have to rely on the coverage provided by your state guaranty association if another insurance carrier does not take over.

Inflation Can Erode Your Annuity’s Value

Any investment loses value due to inflation. If you obtain an 8% return on your investment and inflation is 2%, your real return is only 6%. If you get 1% on a certificate of deposit (CD) but inflation is 2%, your real return is -1%. Similarly, given long-term historical average inflation rates of over 3%, your annuity payout is unlikely to keep up with your spending if it is not adjusted for inflation.

The Bottom Line

Apart from marketing, there’s a reason Stan the Annuity Man has a column, a website, a podcast, a YouTube channel, and multiple books: When it comes to annuities, there’s a lot to unpack. An annuity prospectus can be the length of a short book and contain a lot of strange jargon, so it’s understandable that people avoid reading them and don’t completely comprehend these arrangements.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.